Federal Acquisition Regulation; Federal Acquisition Circular 2005-95; Introduction, 4708-4709 [2016-31494]

Download as PDF 4708 Federal Register / Vol. 82, No. 9 / Friday, January 13, 2017 / Rules and Regulations and National Aeronautics and Space Administration (NASA). DEPARTMENT OF DEFENSE GENERAL SERVICES ADMINISTRATION ACTION: NATIONAL AERONAUTICS AND SPACE ADMINISTRATION SUMMARY: Summary presentation of final rules. 48 CFR Chapter 1 [Docket No. FAR 2016–0051, Sequence No. 9] Federal Acquisition Regulation; Federal Acquisition Circular 2005–95; Introduction Department of Defense (DoD), General Services Administration (GSA), AGENCY: This document summarizes the Federal Acquisition Regulation (FAR) rules agreed to by the Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council (Councils) in this Federal Acquisition Circular (FAC) 2005–95. A companion document, the Small Entity Compliance Guide (SECG), follows this FAC. The FAC, including the SECG, is available via the Internet at http:// www.regulations.gov. For effective dates see the separate documents, which follow. DATES: The analyst whose name appears in the table below in relation to the FAR case. Please cite FAC 2005–95 and the specific FAR case number. For information pertaining to status or publication schedules, contact the Regulatory Secretariat Division at 202– 501–4755. FOR FURTHER INFORMATION CONTACT: RULES LISTED IN FAC 2005–95 Item Subject I ................................... II .................................. III ................................. IV ................................ V ................................. Uniform Use of Line Items ........................................................................................................ Acquisition Threshold for Special Emergency Procurement Authority .................................... Contractor Employee Internal Confidentiality Agreements or Statements ............................... Contracts Under the Small Business Administration 8(a) Program ......................................... Prohibition on Reimbursement for Congressional Investigations and Inquiries ...................... SUPPLEMENTARY INFORMATION: Summaries for each FAR rule follow. For the actual revisions and/or amendments made by these rules, refer to the specific item numbers and subjects set forth in the documents following these item summaries. FAC 2005–95 amends the FAR as follows: asabaliauskas on DSK3SPTVN1PROD with RULES Item I—Uniform Use of Line Items (FAR Case 2013–014) This final rule amends the FAR to establish standards for the uniform use of line items in Federal procurement. These standards are designed to improve the accuracy, traceability, and usability of procurement data. The implementation of these standards will facilitate the identification and traceability of spending from appropriation through expenditure, supporting automated collection of information using key identifiers. The implementation date for FAR 4.1002 through 4.1008 will be October 1, 2019. The requirements in the rule have the potential to impact any entity, small or large, that does business with the Federal Government because the proposed rule would apply to purchases of items, including commercial items and commercially available off-the-shelf items, and purchases under the simplified acquisition threshold. Any small business that contracts with a Federal agency could be impacted to at least some extent. VerDate Sep<11>2014 20:34 Jan 12, 2017 Jkt 241001 FAR Case Item II—Acquisition Threshold for Special Emergency Procurement Authority (FAR Case 2016–004) This final rule amends the FAR by increasing the simplified acquisition threshold (SAT) for special emergency procurement authority from $300,000 to $750,000 (within the United States) and from $1 million to $1.5 million (outside the United States) for acquisitions of supplies or services that, as determined by the head of the agency, are to be used to support a contingency operation or to facilitate defense against or recovery from nuclear, biological, chemical, or radiological attack. This change implements Section 816 of the National Defense Authorization Act for Fiscal Year 2016 (Pub. L. 114–92). This rule provides contracting officers with more flexibility when contracting in support of contingency operations. The rule is not anticipated to have a significant economic impact on small business entities, because the rule raises the SAT for special emergency procurements, an arena in which a smaller percentage of small businesses participate, as compared to larger businesses. This final rule does not place any new requirements on small entities. Item III—Contractor Employee Internal Confidentiality Agreements or Statements (FAR Case 2015–012) This final rule revises the FAR to implement section 743 of division E, title VII, of the Consolidated and PO 00000 Frm 00002 Fmt 4701 Sfmt 4700 2013–014 2016–004 2015–012 2012–022 2015–016 Analyst Francis. Francis. Davis. Uddowla. Delgado. Further Continuing Appropriations Act, 2015 (Pub. L. 113–235) and successor provisions in subsequent appropriations acts. Section 743 prohibits the use of funds appropriated or otherwise made available by Division E or any other act, for a contract with an entity that requires employees and subcontractors of such entity to sign internal confidentiality agreements or statements prohibiting or otherwise restricting such employees or subcontractors from lawfully reporting waste, fraud, or abuse, to a designated investigative or law enforcement representative of a Federal department or agency authorized to receive such information (e.g., agency office of the Inspector General). This rule is not expected to have a significant impact on small entities contracting with the Government. Item IV—Contracts Under the Small Business Administration 8(a) Program (FAR Case 2012–022) This final rule amends the Federal Acquisition Regulation (FAR) to implement clarifications made by the Small Business Administration in its final rule, which published in the Federal Register at 76 FR 8222 on February 11, 2011. This final rule clarifies in the FAR the procedures and requirements used when contracting under the 8(a) program. Clarifications include the evaluation, offering, and acceptance process, procedures for acquiring SBA’s consent to procure an E:\FR\FM\13JAR4.SGM 13JAR4 Federal Register / Vol. 82, No. 9 / Friday, January 13, 2017 / Rules and Regulations 8(a) requirement outside the 8(a) program, and the impact of exiting the 8(a) program in terms of the firm’s ability to receive future 8(a) requirements and its current contractual commitments. This final rule does not place any new requirements, financial or otherwise, on small entities, and serves mainly to provide more explicit guidance to Federal contracting officials. Item V—Prohibition on Reimbursement for Congressional Investigations and Inquiries (FAR Case 2015–016) This rule amends the FAR to implement section 857 of the Carl Levin and Howard P. ‘Buck’ McKeon National Defense Authorization Act for Fiscal Year 2015. Section 857 imposes additional requirements relative to the allowability of costs incurred by a contractor in connection with a congressional investigation or inquiry. Contracting officers need to be aware of these new restrictions on certain costs, which cannot be charged under contracts. Although small businesses subject to FAR part 31 will need to maintain accounting records, this rule does not place any new requirements on small entities. Dated: December 21, 2016. William F. Clark, Director, Office of Government-wide Acquisition Policy, Office of Acquisition Policy, Office of Government-wide Policy. asabaliauskas on DSK3SPTVN1PROD with RULES Federal Acquisition Circular (FAC) 2005–95 is issued under the authority of the Secretary of Defense, the Administrator of General Services, and the Administrator for the National Aeronautics and Space Administration. Unless otherwise specified, all Federal Acquisition Regulation (FAR) and other directive material contained in FAC 2005–95 is effective January 13, 2017 except for item III, which is effective January 19, 2017. Dated: December 21, 2016. Claire M. Grady, Director, Defense Procurement and Acquisition Policy. Dated: December 21, 2016. William F. Clark, Acting, Senior Procurement Executive, Office of Acquisition Policy, U.S. General Services Administration. Dated: December 19, 2016. William P. McNally, Assistant Administrator, Office of Procurement National Aeronautics and Space Administration. [FR Doc. 2016–31494 Filed 1–12–17; 8:45 am] BILLING CODE 6820–EP–P VerDate Sep<11>2014 20:34 Jan 12, 2017 Jkt 241001 appropriation through expenditure, supporting automated collection of information using key identifiers. Three respondents submitted comments on the proposed rule. DEPARTMENT OF DEFENSE GENERAL SERVICES ADMINISTRATION NATIONAL AERONAUTICS AND SPACE ADMINISTRATION 48 CFR Parts 2, 3, 4, 5, 7, 8, 9, 12, 14, 15, 16, 17, 27, 32, 42, 48, 49, and 52 [FAC 2005–95; FAR Case 2013–014; Item I; Docket No. 2013–0014, Sequence No. 1] RIN 9000–AM73 Federal Acquisition Regulation; Uniform Use of Line Items Department of Defense (DoD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA). ACTION: Final rule. AGENCY: DoD, GSA, and NASA are issuing a final rule amending the Federal Acquisition Regulation (FAR) to establish uniform use of line items in Federal procurement. DATES: Effective: January 13, 2017. In order to provide agencies with time to transition their information systems, agencies have until October 1, 2019, to apply the requirements of FAR 4.1002 through 4.1008 of subpart 4.10. FOR FURTHER INFORMATION CONTACT: Ms. Camara Francis, Procurement Analyst, at 202–550–0935 for clarification of content. For information pertaining to status or publication schedules, contact the Regulatory Secretariat Division at 202–501–4755. Please cite FAC 2005– 95, FAR Case 2013–014. SUPPLEMENTARY INFORMATION: SUMMARY: I. Background DoD, GSA, and NASA published a proposed rule in the Federal Register at 79 FR 45408 on August 5, 2014, to establish uniform use of line items in Federal procurement. The uniform line item structure is designed to improve the accuracy, traceability, and usability of procurement data. The need for this rule stems from the lack of access to reliable and comprehensive data on Federal procurement actions that is essential to management and program decisions that result in delivering services to taxpayers in the most efficient and effective manner. Lack of standards for identifying and tracing tax dollars across the acquisition contributes to duplication in spending, gaps in reporting, and inefficiencies in management decisions. The implementation of these standards will facilitate the identification and traceability of spending from PO 00000 Frm 00003 Fmt 4701 Sfmt 4700 4709 II. Discussion and Analysis The Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council (the Councils) reviewed the public comments in the development of the final rule. A discussion of the comments and the changes made to the rule as a result of those comments are provided as follows: A. Summary of Significant Changes From the Proposed Rule 1. The rule provides agencies time to transition their information systems and appropriately train the workforce. Accordingly, agencies have until October 1, 2019, to apply the requirements of FAR 4.1002 through 4.1008 of subpart 4.10. 2. The term ‘‘line item unique identifier’’ was removed and replaced with ‘‘line item number’’ for consistency with the current version of the FAR text. The term ‘‘unique’’ is no longer necessary due to changes made by the Uniform Procurement Identification rule (FAR Case 2012–023) published in the Federal Register at 79 FR 61739 on October 14, 2014. B. Analysis of Public Comments 1. Alternative Line Item Structure Comment: One respondent suggested removing text that would allow offerors to propose their own alternative line item structure, because this would be counterproductive to the goal of standardized reporting. Response: The language on alternative line items was intended to allow flexibility, consistent with the requirements at FAR subpart 4.10. To clarify that the Government is not requesting contractors to create line items inconsistent with the rule, the clause is renamed ‘‘Alternative Line Item Proposal’’ and the explanatory text will no longer use the term ‘‘structure,’’ as this seemed to be the cause of some confusion. 2. Accounting Classification Citation Comment: One respondent asked if each subline item is expected to have its own accounting classification citation. Response: It is not a requirement for each subline item to have its own accounting classification citation. However, each deliverable subline item is expected to have its own accounting classification citation. This should not be construed to mean that the same E:\FR\FM\13JAR4.SGM 13JAR4

Agencies

[Federal Register Volume 82, Number 9 (Friday, January 13, 2017)]
[Rules and Regulations]
[Pages 4708-4709]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-31494]



[[Page 4707]]

Vol. 82

Friday,

No. 9

January 13, 2017

Part V





Department of Defense

General Services Administration

National Aeronautics and Space Administration





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48 CFR Chapter 1





Federal Acquisition Regulation; Federal Acquisition Circular 2005-95; 
Introduction; Uniform Use of Line Items; Acquisition Threshold for 
Special Emergency Procurement Authority; Contractor Employee Internal 
Confidentiality Agreements or Statements; Contracts Under the Small 
Business Administration 8(a) Program; Prohibition on Reimbursement for 
Congressional Investigations and Inquiries; and Federal Acquisition 
Circular 2005-95; Small Entity Compliance Guide; Final Rules

Federal Register / Vol. 82 , No. 9 / Friday, January 13, 2017 / Rules 
and Regulations

[[Page 4708]]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Chapter 1

[Docket No. FAR 2016-0051, Sequence No. 9]


Federal Acquisition Regulation; Federal Acquisition Circular 
2005-95; Introduction

AGENCY: Department of Defense (DoD), General Services Administration 
(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Summary presentation of final rules.

-----------------------------------------------------------------------

SUMMARY: This document summarizes the Federal Acquisition Regulation 
(FAR) rules agreed to by the Civilian Agency Acquisition Council and 
the Defense Acquisition Regulations Council (Councils) in this Federal 
Acquisition Circular (FAC) 2005-95. A companion document, the Small 
Entity Compliance Guide (SECG), follows this FAC. The FAC, including 
the SECG, is available via the Internet at http://www.regulations.gov.

DATES: For effective dates see the separate documents, which follow.

FOR FURTHER INFORMATION CONTACT: The analyst whose name appears in the 
table below in relation to the FAR case. Please cite FAC 2005-95 and 
the specific FAR case number. For information pertaining to status or 
publication schedules, contact the Regulatory Secretariat Division at 
202-501-4755.

                                           Rules Listed in FAC 2005-95
----------------------------------------------------------------------------------------------------------------
                  Item                                Subject                FAR Case            Analyst
----------------------------------------------------------------------------------------------------------------
I.......................................  Uniform Use of Line Items......     2013-014  Francis.
II......................................  Acquisition Threshold for           2016-004  Francis.
                                           Special Emergency Procurement
                                           Authority.
III.....................................  Contractor Employee Internal        2015-012  Davis.
                                           Confidentiality Agreements or
                                           Statements.
IV......................................  Contracts Under the Small           2012-022  Uddowla.
                                           Business Administration 8(a)
                                           Program.
V.......................................  Prohibition on Reimbursement        2015-016  Delgado.
                                           for Congressional
                                           Investigations and Inquiries.
----------------------------------------------------------------------------------------------------------------


SUPPLEMENTARY INFORMATION: Summaries for each FAR rule follow. For the 
actual revisions and/or amendments made by these rules, refer to the 
specific item numbers and subjects set forth in the documents following 
these item summaries. FAC 2005-95 amends the FAR as follows:

Item I--Uniform Use of Line Items (FAR Case 2013-014)

    This final rule amends the FAR to establish standards for the 
uniform use of line items in Federal procurement. These standards are 
designed to improve the accuracy, traceability, and usability of 
procurement data. The implementation of these standards will facilitate 
the identification and traceability of spending from appropriation 
through expenditure, supporting automated collection of information 
using key identifiers. The implementation date for FAR 4.1002 through 
4.1008 will be October 1, 2019.
    The requirements in the rule have the potential to impact any 
entity, small or large, that does business with the Federal Government 
because the proposed rule would apply to purchases of items, including 
commercial items and commercially available off-the-shelf items, and 
purchases under the simplified acquisition threshold. Any small 
business that contracts with a Federal agency could be impacted to at 
least some extent.

Item II--Acquisition Threshold for Special Emergency Procurement 
Authority (FAR Case 2016-004)

    This final rule amends the FAR by increasing the simplified 
acquisition threshold (SAT) for special emergency procurement authority 
from $300,000 to $750,000 (within the United States) and from $1 
million to $1.5 million (outside the United States) for acquisitions of 
supplies or services that, as determined by the head of the agency, are 
to be used to support a contingency operation or to facilitate defense 
against or recovery from nuclear, biological, chemical, or radiological 
attack. This change implements Section 816 of the National Defense 
Authorization Act for Fiscal Year 2016 (Pub. L. 114-92). This rule 
provides contracting officers with more flexibility when contracting in 
support of contingency operations.
    The rule is not anticipated to have a significant economic impact 
on small business entities, because the rule raises the SAT for special 
emergency procurements, an arena in which a smaller percentage of small 
businesses participate, as compared to larger businesses. This final 
rule does not place any new requirements on small entities.

Item III--Contractor Employee Internal Confidentiality Agreements or 
Statements (FAR Case 2015-012)

    This final rule revises the FAR to implement section 743 of 
division E, title VII, of the Consolidated and Further Continuing 
Appropriations Act, 2015 (Pub. L. 113-235) and successor provisions in 
subsequent appropriations acts. Section 743 prohibits the use of funds 
appropriated or otherwise made available by Division E or any other 
act, for a contract with an entity that requires employees and 
subcontractors of such entity to sign internal confidentiality 
agreements or statements prohibiting or otherwise restricting such 
employees or subcontractors from lawfully reporting waste, fraud, or 
abuse, to a designated investigative or law enforcement representative 
of a Federal department or agency authorized to receive such 
information (e.g., agency office of the Inspector General). This rule 
is not expected to have a significant impact on small entities 
contracting with the Government.

Item IV--Contracts Under the Small Business Administration 8(a) Program 
(FAR Case 2012-022)

    This final rule amends the Federal Acquisition Regulation (FAR) to 
implement clarifications made by the Small Business Administration in 
its final rule, which published in the Federal Register at 76 FR 8222 
on February 11, 2011. This final rule clarifies in the FAR the 
procedures and requirements used when contracting under the 8(a) 
program. Clarifications include the evaluation, offering, and 
acceptance process, procedures for acquiring SBA's consent to procure 
an

[[Page 4709]]

8(a) requirement outside the 8(a) program, and the impact of exiting 
the 8(a) program in terms of the firm's ability to receive future 8(a) 
requirements and its current contractual commitments.
    This final rule does not place any new requirements, financial or 
otherwise, on small entities, and serves mainly to provide more 
explicit guidance to Federal contracting officials.

Item V--Prohibition on Reimbursement for Congressional Investigations 
and Inquiries (FAR Case 2015-016)

    This rule amends the FAR to implement section 857 of the Carl Levin 
and Howard P. `Buck' McKeon National Defense Authorization Act for 
Fiscal Year 2015. Section 857 imposes additional requirements relative 
to the allowability of costs incurred by a contractor in connection 
with a congressional investigation or inquiry. Contracting officers 
need to be aware of these new restrictions on certain costs, which 
cannot be charged under contracts. Although small businesses subject to 
FAR part 31 will need to maintain accounting records, this rule does 
not place any new requirements on small entities.

    Dated: December 21, 2016.
William F. Clark,
Director, Office of Government-wide Acquisition Policy, Office of 
Acquisition Policy, Office of Government-wide Policy.

    Federal Acquisition Circular (FAC) 2005-95 is issued under the 
authority of the Secretary of Defense, the Administrator of General 
Services, and the Administrator for the National Aeronautics and Space 
Administration.
    Unless otherwise specified, all Federal Acquisition Regulation 
(FAR) and other directive material contained in FAC 2005-95 is 
effective January 13, 2017 except for item III, which is effective 
January 19, 2017.

    Dated: December 21, 2016.

Claire M. Grady,

Director, Defense Procurement and Acquisition Policy.

    Dated: December 21, 2016.

William F. Clark,

Acting, Senior Procurement Executive, Office of Acquisition Policy, 
U.S. General Services Administration.

    Dated: December 19, 2016.

William P. McNally,

Assistant Administrator, Office of Procurement National Aeronautics 
and Space Administration.

[FR Doc. 2016-31494 Filed 1-12-17; 8:45 am]
BILLING CODE 6820-EP-P