Federal Acquisition Regulation: Applicability of Inflation Adjustments of Acquisition-Related Thresholds, 27088-27097 [2020-07109]

Download as PDF 27088 Federal Register / Vol. 85, No. 88 / Wednesday, May 6, 2020 / Rules and Regulations 3. Amend section 2.101(b) in the definition ‘‘United States’’ by removing paragraph (4) and redesignating paragraphs (5) through (12) as paragraphs (4) through (11). NATIONAL AERONAUTICS AND SPACE ADMINISTRATION PART 22—APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS [FAC 2020–06; FAR Case 2018–007; Item II; Docket No. FAR–2018–0007; Sequence No. 1] Wage Rate Requirements statute (DavisBacon Act), Service Contract Labor Standards statute, and trade agreements thresholds. See FAR 1.109. The last FAR case that raised the thresholds for inflation was 2014–022, a final rule published on July 2, 2015, effective October 1, 2015. The next inflation adjustment under 41 U.S.C. 1908 will be implemented through FAR Case 2019– 013 and planned to be effective October 1, 2020. One respondent submitted comments on the proposed rule. RIN 9000–AN67 II. Discussion and Analysis PART 2—DEFINITIONS OF WORDS AND TERMS 2.101 DEPARTMENT OF DEFENSE GENERAL SERVICES ADMINISTRATION [Amended] ■ Subpart 22.12 [Removed and Reserved] ■ 4. Remove and reserve subpart 22.12. PART 52—SOLICITATION PROVISIONS AND CONTRACT CLAUSES 5. Amend section 52.212–5 by— ■ a. Revising the date of the clause; ■ b. Removing paragraph (c)(1) and redesignating paragraphs (c)(2) through (10) as paragraphs (c)(1) through (9); and ■ c. Removing paragraph (e)(1)(vi) and redesignating paragraphs (e)(1)(vii) through (xxiii) as paragraphs (e)(1)(vi) through (xxii). The revision reads as follows: ■ 52.212–5 Contract Terms and Conditions Required To Implement Statutes or Executive Orders—Commercial Items. * * * * * Contract Terms and Conditions Required To Implement Statutes or Executive Orders—Commercial Items (JUN 2020) * * 52.222–17 * * * [Removed and Reserved] 6. Remove and reserve section 52.222–17. ■ [FR Doc. 2020–07108 Filed 5–5–20; 8:45 am] BILLING CODE 6820–EP–P VerDate Sep<11>2014 20:28 May 05, 2020 Jkt 250001 48 CFR Parts 1, 5, 8, 9, 12, 13, 15, 19, 22, 25, 30, 50, and 52 Federal Acquisition Regulation: Applicability of Inflation Adjustments of Acquisition-Related Thresholds 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 implement a section of the National Defense Authorization Act for Fiscal Year 2018 to make inflation adjustments of statutory acquisition-related thresholds applicable to existing contracts and subcontracts in effect on the date of the adjustment that contain the revised clauses in this rulemaking. DATES: Effective: June 5, 2020. FOR FURTHER INFORMATION CONTACT: Ms. Zenaida Delgado, Procurement Analyst, at 202–969–7207 or zenaida.delgado@ gsa.gov for clarification of content. For information pertaining to status or publication schedules, contact the Regulatory Secretariat Division at 202– 501–4755. Please cite FAC 2020–06, FAR Case 2018–007. SUPPLEMENTARY INFORMATION: SUMMARY: I. Background DoD, GSA, and NASA published a proposed rule in the Federal Register on June 24, 2019, at 84 FR 29482, to make inflation adjustments of statutory acquisition-related thresholds under 41 U.S.C. 1908 applicable to existing contracts and subcontracts in effect on the date of the adjustment. This FAR change implements section 821 of the National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2018 (Pub. L. 115–91). Title 41 U.S.C. 1908, Inflation adjustment of acquisition-related dollar thresholds, requires an adjustment every five years of acquisition-related thresholds for inflation using the Consumer Price Index for all urban consumers, except for the Construction PO 00000 Frm 00004 Fmt 4701 Sfmt 4700 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 is provided as follows: A. Summary of Changes There are no changes as a result of comments on the proposed rule. B. Analysis of Public Comments Comment: One respondent supported the proposed rule and suggested to include a list, preferably in table form, of the actual calendar dates of threshold effectiveness. Response: The Councils agree a table might be a helpful reference tool and will add one at Acquisition.gov under https://www.acquisition.gov/ tableofeffectivedatesforMPTandSAT. The table will only illustrate changes to the micro-purchase and simplified acquisition thresholds, after they are implemented through the rulemaking process. C. Other Changes Editorial changes are made to three clauses to change the paragraph heading of ‘‘Flowdown’’ to ‘‘Subcontracts’’ in order to conform to FAR drafting conventions. See FAR clauses 52.203– 16, paragraph (d); 52.215–23, paragraph (f); and 52.226–6, paragraph (e). III. Applicability to Contracts at or Below the Simplified Acquisition Threshold and for Commercial Items, Including Commercially Available Offthe-Shelf Items This rule does not add any new solicitation provisions or clauses, or impact any existing provisions or clauses, except for the added references to acquisition-related thresholds in the FAR text. IV. Executive Orders 12866 and 13563 Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess all costs and benefits of available regulatory E:\FR\FM\06MYR3.SGM 06MYR3 Federal Register / Vol. 85, No. 88 / Wednesday, May 6, 2020 / Rules and Regulations alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits (including potential economic, environmental, public health and safety effects, distributive impacts, and equity). E.O. 13563 emphasizes the importance of quantifying both costs and benefits, of reducing costs, of harmonizing rules, and of promoting flexibility. This rule is not a significant regulatory action, and therefore, this rule was not subject to the review of the Office of Information and Regulatory Affairs under section 6(b) of E.O. 12866. This rule is not a major rule under 5 U.S.C. 804. V. Executive Order 13771 This rule is not an E.O. 13771 regulatory action, because this rule is not significant under E.O. 12866. VI. Regulatory Flexibility Act DoD, GSA, and NASA have prepared a Final Regulatory Flexibility Analysis (FRFA) consistent with the Regulatory Flexibility Act, 5 U.S.C. 601, et seq. The FRFA is summarized as follows: This rule is required to implement section 821 of the National Defense Authorization Act for Fiscal Year (FY) 2018. The objective is to make inflation adjustments of statutory acquisition-related thresholds under 41 U.S.C. 1908(d) applicable to existing contracts and subcontracts in effect on the date of the adjustment that contain the revised clauses. There were no significant issues raised by the public in response to the initial regulatory flexibility analysis. This rule will likely affect to some extent all small business concerns that submit offers or are awarded contracts by the Federal Government. However, this rule is not expected to have any significant economic impact on small business concerns because this rule: (1) Is not creating any new requirements with which small entities must comply, and (2) is only establishing the framework to apply the inflation adjustments of statutory acquisitionrelated thresholds under 41 U.S.C. 1908 to existing contracts and subcontracts in effect on the date of the adjustment. Any impact on small business concerns will be beneficial by preventing burdensome requirements from continuing to apply to smaller dollar value contracts when acquisition thresholds are increased during the period of performance. As of September 30, 2017, there were 637,791 active entity registrations in SAM.gov. Of those active entity registrations, 452,310 (71 percent) completed all four modules of the registration, in accordance with FAR 52.204–7(a)(2), including Assertions (where they enter their size metrics and select their NAICS Codes) and Reps & Certs (where they certify to the information they provided and the size indicator by NAICS). Of the possible 452,310 active SAM.gov entity registrations, 338,207 (75 percent) VerDate Sep<11>2014 19:54 May 05, 2020 Jkt 250001 certified to meeting the size standard of small for their primary NAICS Code. Therefore, this rule may be beneficial to 338,207 small business entities that submit proposals that may now fall under the micro-purchase threshold, the simplified acquisition threshold, or other applicable acquisition thresholds (e.g., contractor code of business ethics and conduct, reporting executive compensation and first-tier subcontract awards, equal opportunity for veterans) as a result of this rule. The rule does not include additional reporting or record keeping requirements. There are no available alternatives to the rule to accomplish the desired objective of the statute. Interested parties may obtain a copy of the FRFA from the Regulatory Secretariat Division. The Regulatory Secretariat Division has submitted a copy of the FRFA to the Chief Counsel for Advocacy of the Small Business Administration. VII. Paperwork Reduction Act The Paperwork Reduction Act (44 U.S.C. Chapter 35) does apply; however, the changes to the FAR do not impose new information collection requirements that require the approval of the Office of Management and Budget (OMB) under 44 U.S.C. 3501, et seq. The changes do not impose additional information collection requirements to the paperwork burden previously approved under the following OMB Control Numbers: 9000–0007, Subcontracting Plans; 9000–0018, Certification Of Independent Price Determination, Contractor Code of Business Ethics and Conduct, and Preventing Personal Conflicts of Interest; 9000–0027, Value Engineering Requirements; 9000–0193, FAR Part 9 Responsibility Matters; 9000–0091, Anti-Kickback Procedures; 9000–0097, Federal Acquisition Regulation Part 4 Requirements; 9000–0136, Commercial Item Acquisitions; 9000–0034, Examination of Records by Comptroller General and Contract Audit; 9000–0013, Certified Cost or Pricing Data and Data Other Than Certified Cost or Pricing Data; 9000–0048, Authorized Negotiators and Integrity of Unit Prices; 9000–0078, Certain Federal Acquisition Regulation Part 15 Requirements; 9000– 0096, Patents; 9000–0045, Bid Guarantees, Performance, and Payments Bonds, and Alternative Payment Protection; 9000–0010, Progress Payments, SF 1443; 9000–0149, Subcontract Consent and Contractors’ Purchasing System Review; 1235–0007, Labor Standards for Federal Service Contracts; 1235–0025, Nondisplacement of Qualified Workers Under Service Contracts, Executive Order 13495; 1250–0004, Office of Federal Contract PO 00000 Frm 00005 Fmt 4701 Sfmt 4700 27089 Compliance Programs Recordkeeping and Reporting Requirements Under the Vietnam Era Veterans’ Readjustment Assistance Act of 1974, as Amended; and 1250–0005, Office of Federal Contract Compliance Programs Recordkeeping and Reporting Requirements Under Rehabilitation Act of 1973, as Amended Section 503. List of Subjects in 48 CFR Parts 1, 5, 8, 9, 12, 13, 15, 19, 22, 25, 30, 50, and 52 Government procurement. William F. Clark, Director, Office of Government-wide Acquisition Policy, Office of Acquisition Policy, Office of Government-wide Policy. Therefore, DoD, GSA, and NASA amend 48 CFR parts 1, 5, 8, 9, 12, 13, 15, 19, 22, 25, 30, 50, and 52 as set forth below: ■ 1. The authority citation for 48 CFR parts 1, 5, 8, 9, 12, 13, 15, 19, 22, 25, 30, 50, and 52 continues to read as follows: Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 51 U.S.C. 20113. PART 1—FEDERAL ACQUISITION REGULATIONS SYSTEM 2. Amend section 1.109 by— a. Removing from paragraph (a) ‘‘(CPI) for all-urban consumers’’ and adding ‘‘for All Urban Consumers (CPI–U)’’ in its place; ■ b. Redesignating paragraph (d) as paragraph (e); ■ c. Adding new paragraph (d); and ■ d. Removing from the newly designated paragraph (e) ‘‘2014–022’’ and adding ‘‘2014–022, open the docket folder, and go to the supporting documents file’’ in its place. The addition reads as follows: ■ ■ 1.109 Statutory acquisition-related dollar thresholds—adjustment for inflation. * * * * * (d) The statute, as amended by section 821 of the National Defense Authorization Act for Fiscal Year 2018 (Pub. L. 115–91), requires the adjustment described in paragraph (a) of this section be applied to contracts and subcontracts without regard to the date of award of the contract or subcontract. Therefore, if a threshold is adjusted for inflation as set forth in paragraph (a) of this section, then the changed threshold applies throughout the remaining term of the contract, unless there is a subsequent threshold adjustment. * * * * * ■ 3. Amend section 1.110 in the table in paragraph (c) by designating the table as table 1 and revising the entry for E:\FR\FM\06MYR3.SGM 06MYR3 27090 Federal Register / Vol. 85, No. 88 / Wednesday, May 6, 2020 / Rules and Regulations ‘‘Walsh-Healey Public Contracts Act’’ to read as follows: 1.110 * Positive law codification. * * * (c) * * * * TABLE 1 TO PARAGRAPH (c) Historical title of act Division/chapter/subchapter * * Walsh-Healey Public Contracts Act * * * * * * * * * 41 U.S.C. chapter 65 ..................... Contracts for Materials, Supplies, Articles, and Equipment Exceeding $10,000. 13.003 * [Amended] 4. Amend section 5.206 by removing from paragraph (a)(1) and (2) ‘‘$150,000’’ and adding ‘‘the simplified acquisition threshold’’ in their places, respectively. ■ [Amended] 10. Amend section 13.501 by removing from paragraph (a)(2)(i) ‘‘$150,000’’ and adding ‘‘the simplified acquisition threshold’’ in its place. ■ [Amended] 5. Amend section 8.1104 by removing from paragraph (e)(3) ‘‘Exceeding $15,000’’. ■ PART 9—CONTRACTOR QUALIFICATIONS PART 15—CONTRACTING BY NEGOTIATION 11. Amend section 15.403–4 by adding in the introductory text of paragraph (a)(1) a new fourth sentence to read as follows: ■ 6. Amend section 9.405–2 by revising the second sentence in the introductory text of paragraph (b) to read as follows: ■ 9.405–2 * * * * (b)(1) Acquisitions of supplies or services that have an anticipated dollar value above the micro-purchase threshold, but at or below the simplified acquisition threshold, shall be set aside for small business concerns (see 19.000, 19.203, and subpart 19.5). * * * * * 13.501 PART 8—REQUIRED SOURCES OF SUPPLIES AND SERVICES 8.1104 Policy. * PART 5—PUBLICIZING CONTRACT ACTIONS 5.206 Title Restrictions on subcontracting. * * * * * (b) * * * Contractors are prohibited from entering into any subcontract in excess of $35,000, other than a subcontract for a commercially available off-the-shelf item, with a contractor that has been debarred, suspended, or proposed for debarment, unless there is a compelling reason to do so. * * * * * * * * 15.403–4 Requiring certified cost or pricing data (10 U.S.C. 2306a and 41 U.S.C. chapter 35). (a)(1) * * * When a clause refers to this threshold, and if the threshold is adjusted for inflation pursuant to 1.109(a), then pursuant to 1.109(d) the changed threshold applies throughout the remaining term of the contract, unless there is a subsequent threshold adjustment. * * * * * * * * PART 12—ACQUISITION OF COMMERCIAL ITEMS PART 19—SMALL BUSINESS PROGRAMS 12.503 ■ [Amended] 12. Amend section 19.203 by revising paragraph (b) to read as follows: 7. Amend section 12.503 by removing from paragraph (a)(1) ‘‘$15,000’’ and adding ‘‘$10,000’’ in its place. 19.203 Relationship among small business programs. 12.504 * ■ [Amended] 8. Amend section 12.504 by removing from paragraph (a)(4) ‘‘6505’’ and ‘‘$15,000’’ and adding ‘‘chapter 65’’ and ‘‘$10,000’’ in their places, respectively. ■ PART 13—SIMPLIFIED ACQUISITION PROCEDURES 9. Amend section 13.003 by revising paragraph (b)(1) to read as follows: ■ VerDate Sep<11>2014 19:54 May 05, 2020 Jkt 250001 * * * * (b) At or below the simplified acquisition threshold. For acquisitions of supplies or services that have an anticipated dollar value above the micro-purchase threshold, but at or below the simplified acquisition threshold, the requirement at 19.502– 2(a) to set aside acquisitions for small business concerns does not preclude the contracting officer from awarding a PO 00000 Frm 00006 Fmt 4701 Sfmt 4700 contract to a small business under the 8(a) Program, HUBZone Program, SDVOSB Program, or WOSB Program. * * * * * ■ 13. Amend section 19.502–1 by revising paragraph (b) to read as follows: 19.502–1 Requirements for setting aside acquisitions. * * * * * (b) The requirement in paragraph (a) of this section does not apply to purchases at or below the micropurchase threshold, or purchases from required sources under part 8 (e.g., Committee for Purchase From People Who are Blind or Severely Disabled). ■ 14. Amend section 19.502–2 by revising the second sentence of paragraph (a) and removing from paragraph (b) introductory text ‘‘$150,000’’ and adding ‘‘the simplified acquisition threshold’’ in its place to read as follows: 19.502–2 Total small business set-asides. (a) * * * Each acquisition of supplies or services that has an anticipated dollar value above the micro-purchase threshold, but not over the simplified acquisition threshold, shall be set aside for small business unless the contracting officer determines there is not a reasonable expectation of obtaining offers from two or more responsible small business concerns that are competitive in terms of fair market prices, quality, and delivery. * * * * * * * * 19.507 [Amended] 15. Amend section 19.507 by removing from the first sentence in paragraph (e) ‘‘$150,000’’ and adding ‘‘the simplified acquisition threshold’’ in its place. ■ PART 22—APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS 22.102–2 [Amended] 16. Amend section 22.102–2 by removing from paragraph (c)(1)(iv) ‘‘$15,000’’ and adding ‘‘$10,000’’ in its place. ■ E:\FR\FM\06MYR3.SGM 06MYR3 Federal Register / Vol. 85, No. 88 / Wednesday, May 6, 2020 / Rules and Regulations 22.202 [Amended] inflation in accordance with 41 U.S.C. 1908. 17. Amend section 22.202 by removing from paragraph (a) ‘‘, Contracts for Materials, Supplies, Articles, and Equipment Exceeding $15,000’’. ■ 22.305 PART 50—EXTRAORDINARY CONTRACTUAL ACTIONS AND THE SAFETY ACT 50.103–7 [Amended] 18. Amend section 22.305 by removing from paragraph (e) ‘‘, Contracts for Materials, Supplies, Articles, and Equipment Exceeding $15,000’’. ■ 19. Amend subpart 22.6 by revising the subpart heading to read as follows: ■ Subpart 22.6—Contracts for Materials, Supplies, Articles, and Equipment 22.602 [Amended] 20. Amend section 22.602 by removing ‘‘, Contracts for Materials, Supplies, Articles, and Equipment Exceeding $15,000’’. ■ 22.610 [Amended] [Amended] 26. Amend section 50.103–7 by removing from paragraph (b) ‘‘Exceeding $15,000’’. ■ PART 52—SOLICITATION PROVISIONS AND CONTRACT CLAUSES 27. Amend section 52.202–1 by— a. Revising the date of the clause; b. Removing the word ‘‘or’’ at the end of paragraph (c); ■ c. Removing from paragraph (d) ‘‘FAR Part’’ and ‘‘procedures.’’ and adding ‘‘FAR part’’ and ‘‘procedures; or’’ in their places, respectively; and ■ d. Adding paragraph (e). The revision and addition read as follows: ■ ■ ■ 21. Amend section 22.610 by removing ‘‘Exceeding $15,000’’. 52.202–1 22.1003–3 Definitions (JUN 2020) ■ * [Amended] 22. Amend section 22.1003–3 by removing from paragraph (b) ‘‘, Contracts for Materials, Supplies, Articles, and Equipment Exceeding $15,000’’. ■ 22.1003–6 * [Amended] 23. Amend section 22.1003–6(a) introductory text by: ■ a. Removing ‘‘, Contracts for Materials, Supplies, Articles, and Equipment Exceeding $15,000,’’; and ■ b. Removing ‘‘paragraphs (a)(1) or (a)(2) of this subsection’’ and adding ‘‘paragraph (a)(1) or (2) of this section’’ in its place. ■ PART 25—FOREIGN ACQUISITION 25.703–4 * * Definitions. * * * * * * * * * * * 28. Amend section 52.203–6 by revising the date of the clause and removing from paragraph (c) ‘‘threshold.’’ and adding ‘‘threshold, as defined in Federal Acquisition Regulation 2.101 on the date of subcontract award.’’ in its place to read as follows: ■ 52.203–6 Restrictions on Subcontractor Sales to the Government. [Amended] 24. Amend section 25.703–4 by removing from paragraphs (c)(5)(ii), (c)(7)(iii), and (c)(8)(iii) ‘‘$3,500’’ and adding ‘‘the threshold at 25.703–2(a)(2)’’ in their places, respectively. ■ * * * * * 25. Revise section 30.201–1 to read as follows: ■ Restrictions on Subcontractor Sales to the Government (JUN 2020) * * * * * 29. Amend section 52.203–7 by revising the date of the clause and paragraph (c)(5) and adding an undesignated parenthetical phrase at the end to read as follows: 30.201–1 52.203–7 CAS applicability. (a) See 48 CFR 9903.201–1 (FAR appendix). (b) In accordance with 41 U.S.C. 1502(b)(1)(B), the threshold for determining the tentative applicability of CAS at the contract level is the amount set forth in 10 U.S.C. 2306a(a)(1)(A)(i), as adjusted for VerDate Sep<11>2014 19:54 May 05, 2020 Jkt 250001 * * Anti-Kickback Procedures. * * * Anti-Kickback Procedures (JUN 2020) * * * * * (c) * * * (5) The Contractor agrees to incorporate the substance of this clause, including this paragraph (c)(5) but excepting paragraph (c)(1) of this clause, in all subcontracts under PO 00000 Frm 00007 Fmt 4701 Sfmt 4700 (End of clause) ■ 30. Amend section 52.203–12 by revising the date of the clause, the first sentence of paragraph (g)(1), and paragraph (g)(3) to read as follows: 52.203–12 Limitation on Payments to Influence Certain Federal Transactions. * * * * * Limitation on Payments To Influence Certain Federal Transactions (JUN 2020) * * * * * (g) * * * (1) The Contractor shall obtain a declaration, including the certification and disclosure in paragraphs (c) and (d) of the provision at FAR 52.203–11, Certification and Disclosure Regarding Payments to Influence Certain Federal Transactions, from each person requesting or receiving a subcontract under this contract that exceeds the threshold specified in FAR 3.808 on the date of subcontract award.* * * * * * * (3) The Contractor shall include the substance of this clause, including this paragraph (g), in any subcontract that exceeds the threshold specified in FAR 3.808 on the date of subcontract award. * * * * * 31. Amend section 52.203–13 by revising the date of the clause and removing from paragraph (d)(1) ‘‘have a value in excess of $5.5 million’’ and adding ‘‘exceed the threshold specified in FAR 3.1004(a) on the date of subcontract award’’ in its place to read as follows: ■ 52.203–13 Contractor Code of Business Ethics and Conduct. * * * * * Contractor Code of Business Ethics and Conduct (JUN 2020) * * * * * 32. Amend section 52.203–14 by revising the date of the clause and the introductory text of paragraph (d) to read as follows: ■ ■ PART 30—COST ACCOUNTING STANDARDS ADMINISTRATION this contract that exceed the threshold specified in Federal Acquisition Regulation 3.502–2(i) on the date of subcontract award. * (e) The word or term defines an acquisition-related threshold, and if the threshold is adjusted for inflation as set forth in FAR 1.109(a), then the changed threshold applies throughout the remaining term of the contract, unless there is a subsequent threshold adjustment; see FAR 1.109(d). 27091 52.203–14 Display of Hotline Poster(s). * * * * * Display of Hotline Poster(s) (JUN 2020) * * * * * (d) Subcontracts. The Contractor shall include the substance of this clause, including this paragraph (d), in all subcontracts that exceed the threshold specified in Federal Acquisition Regulation 3.1004(b)(1) on the date of subcontract award, except when the subcontract— * * * * * 33. Amend section 52.203–16 by revising the date of the clause, the ■ E:\FR\FM\06MYR3.SGM 06MYR3 27092 Federal Register / Vol. 85, No. 88 / Wednesday, May 6, 2020 / Rules and Regulations heading of paragraph (d), and paragraph (d)(1) to read as follows: 52.204–10 Reporting Executive Compensation and First-Tier Subcontract Awards. 52.203–16 Preventing Personal Conflicts of Interest. * * Reporting Executive Compensation and First-Tier Subcontract Awards (JUN 2020) * * * * Preventing Personal Conflicts of Interest (JUN 2020) * * * * * * * * * 34. Amend section 52.203–17 by— ■ a. Revising the date of the clause; ■ b. Removing from paragraph (a) ‘‘FAR 3.908’’ and adding ‘‘Federal Acquisition Regulation (FAR) 3.908’’ in its place; ■ c. Removing from paragraph (b) ‘‘section 3.908 of the Federal Acquisition Regulation’’ and adding ‘‘FAR 3.908’’ in its place; and ■ d. Removing from paragraph (c) ‘‘threshold.’’ and adding ‘‘threshold, as defined in FAR 2.101 on the date of subcontract award.’’ in its place. The revision reads as follows: ■ 52.203–17 Contractor Employee Whistleblower Rights and Requirement To Inform Employees of Whistleblower Rights. * * * * Contractor Employee Whistleblower Rights and Requirement To Inform Employees of Whistleblower Rights (JUN 2020) * * * * * 35. Amend section 52.204–10 by— ■ a. Revising the date of the clause; ■ b. Removing from paragraph (d)(1) introductory text ‘‘FAR provision’’ and adding ‘‘Federal Acquisition Regulation (FAR) provision’’ in its place; ■ c. Removing from paragraph (d)(2) introductory text ‘‘contracting officer’’ and ‘‘with a value of $30,000 or more’’ and adding ‘‘Contracting Officer’’ and ‘‘valued at or above the threshold specified in FAR 4.1403(a) on the date of subcontract award’’ in their places, respectively; ■ d. Removing from paragraph (d)(3) introductory text ‘‘with a value of $30,000 or more’’ and adding ‘‘valued at or above the threshold specified in FAR 4.1403(a) on the date of subcontract award’’ in its place; and ■ e. Removing from paragraph (e) ‘‘less than $30,000’’ and adding ‘‘below the threshold specified in FAR 4.1403(a), on the date of subcontract award,’’ in its place. The revision reads as follows: ■ VerDate Sep<11>2014 19:54 May 05, 2020 Jkt 250001 * * * * * (d) Subcontracts. * * * (1) That exceed the simplified acquisition threshold, as defined in Federal Acquisition Regulation 2.101 on the date of subcontract award; and * * * * * * 36. Amend section 52.209–6 by— a. Revising the date of the clause; b. Removing from paragraph (a)(1)(i) ‘‘FAR’’ and adding ‘‘Federal Acquisition Regulation (FAR)’’ in its place; ■ c. Removing from paragraphs (b) and (c) ‘‘$35,000’’ and adding ‘‘the threshold specified in FAR 9.405–2(b) on the date of subcontract award,’’ and ‘‘the threshold specified in FAR 9.405–2(b) on the date of subcontract award’’ in their places, respectively; and ■ d. Revising paragraph (e)(1). The revisions read as follows: ■ ■ ■ 52.209–6 Protecting the Government’s Interest When Subcontracting With Contractors Debarred, Suspended, or Proposed for Debarment. * * * * * Protecting the Government’s Interest When Subcontracting With Contractors Debarred, Suspended, or Proposed for Debarment (JUN 2020) * * * * * (e) * * * (1) Exceeds the threshold specified in FAR 9.405–2(b) on the date of subcontract award; and * * * * * ■ 37. Amend section 52.210–1 by— ■ a. Revising the date of the clause; ■ b. In paragraph (a), removing from the definition of ‘‘Commercial item’’ and ‘‘nondevelopmental item’’ the word ‘‘Regulation’’ and adding ‘‘Regulation (FAR)’’ in its place; and ■ c. Removing from the introductory text of paragraph (b) ‘‘threshold’’ and adding ‘‘threshold, as defined in FAR 2.101 on the date of subcontract award,’’ in its place. The revision reads as follows: 52.210–1 * * * * Market Research (JUN 2020) * * * * * 38. Amend section 52.212–1 by revising the date of the clause and the first and fifth sentences of paragraph (j) to read as follows: ■ 52.212–1 Instructions to Offerors— Commercial Items. * * * * * Instructions to Offerors—Commercial Items (JUN 2020) * PO 00000 * * Frm 00008 * Fmt 4701 * Sfmt 4700 * * * * * 39. Amend section 52.212–3 by— a. Revising the date of the clause; and b. Removing from paragraph (o)(2)(iii) ‘‘$3,500’’ and adding ‘‘the threshold at FAR 25.703–2(a)(2)’’ in its place. The revision reads as follows: ■ ■ ■ 52.212–3 Offeror Representations and Certifications—Commercial Items. * * * * * Offeror Representations and Certifications—Commercial Items (JUN 2020) * * * * * 40. Amend section 52.212–5 by— a. Revising paragraphs (b)(1), (2), (4), and (8), (b)(17)(i), (iv), and (v), (b)(31)(i), (b)(32)(i), (b)(33) and (44), and (c)(9); ■ b. Removing from paragraph (d) introductory text ‘‘threshold’’ and adding ‘‘threshold, as defined in FAR 2.101, on the date of award of this contract’’ in its place; ■ c. Revising paragraph (e)(1)(i); ■ d. Removing from paragraph (e)(1)(v) ‘‘$700,000 ($1.5 million for construction of any public facility)’’ and adding ‘‘the applicable threshold specified in FAR 19.702(a) on the date of subcontract award’’ in its place; ■ e. Revising paragraphs (e)(1)(i) through (x) and the first sentence of paragraph (xxi); and ■ f. In Alternate II, revising the date of the alternate, paragraphs (e)(1)(ii)(A), (E), (H), and (I), and the first sentence of paragraph (e)(1)(ii)(T). The revisions read as follows: ■ ■ 52.212–5 Contract Terms and Conditions Required To Implement Statutes or Executive Orders—Commercial Items. * Market Research. * (j) * * * (Applies to all offers that exceed the micro-purchase threshold, and offers at or below the micro-purchase threshold if the solicitation requires the Contractor to be registered in the System for Award Management (SAM).) * * * The suffix is assigned at the discretion of the Offeror to establish additional SAM records for identifying alternative EFT accounts (see FAR subpart 32.11) for the same entity.* * * * * * * (b) * * * ll(1) 52.203–6, Restrictions on Subcontractor Sales to the Government (JUN 2020), with Alternate I (OCT 1995) (41 U.S.C. 4704 and 10 U.S.C. 2402). ll(2) 52.203–13, Contractor Code of Business Ethics and Conduct (JUN 2020) (41 U.S.C. 3509). * * * * * ll(4) 52.204–10, Reporting Executive Compensation and First-Tier Subcontract Awards (JUN 2020) (Pub. L. 109–282) (31 U.S.C. 6101 note). * * * * * ll(8) 52.209–6, Protecting the Government’s Interest When E:\FR\FM\06MYR3.SGM 06MYR3 Federal Register / Vol. 85, No. 88 / Wednesday, May 6, 2020 / Rules and Regulations Subcontracting with Contractors Debarred, Suspended, or Proposed for Debarment. (JUN 2020) (31 U.S.C. 6101 note). * * * * * ll(17)(i) 52.219–9, Small Business Subcontracting Plan (JUN 2020) (15 U.S.C. 637(d)(4)). * * * * * ll(iv) Alternate III (JUN 2020) of 52.219–9. ll(v) Alternate IV (JUN 2020) of 52.219–9. * * * * * ll(31)(i) 52.222–35, Equal Opportunity for Veterans (JUN 2020) (38 U.S.C. 4212). * * * * * ll(32)(i) 52.222–36, Equal Opportunity for Workers with Disabilities (JUN 2020) (29 U.S.C. 793). * * * * * ll(33) 52.222–37, Employment Reports on Veterans (JUN 2020) (38 U.S.C. 4212). * * * * * ll(44) 52.223–18, Encouraging Contractor Policies to Ban Text Messaging While Driving (JUN 2020) (E.O. 13513). * * * * * (c) * * * ll(9) 52.226–6, Promoting Excess Food Donation to Nonprofit Organizations (JUN 2020) (42 U.S.C. 1792). * * * * * (e)(1) * * * (i) 52.203–13, Contractor Code of Business Ethics and Conduct (JUN 2020) (41 U.S.C. 3509). * * * * * (viii) 52.222–35, Equal Opportunity for Veterans (JUN 2020) (38 U.S.C. 4212). (ix) 52.222–36, Equal Opportunity for Workers with Disabilities (JUN 2020) (29 U.S.C. 793). (x) 52.222–37, Employment Reports on Veterans (JUN 2020) (38 U.S.C. 4212). * * * * * (xxi) 52.226–6, Promoting Excess Food Donation to Nonprofit Organizations (JUN 2020) (42 U.S.C. 1792). * * * * * * * * Alternate II (JUN 2020). * * * * * * * * (e)(1) * * * (ii) * * * * * (A) 52.203–13, Contractor Code of Business Ethics and Conduct (JUN 2020) (41 U.S.C. 3509). * * * * * VerDate Sep<11>2014 20:28 May 05, 2020 Jkt 250001 (E) 52.219–8, Utilization of Small Business Concerns (OCT 2018) (15 U.S.C. 637(d)(2) and (3)), in all subcontracts that offer further subcontracting opportunities. If the subcontract (except subcontracts to small business concerns) exceeds the applicable threshold specified in FAR 19.702(a) on the date of subcontract award, the subcontractor must include 52.219–8 in lower tier subcontracts that offer subcontracting opportunities. * * * * * (H) 52.222–35, Equal Opportunity for Veterans (JUN 2020) (38 U.S.C. 4212). (I) 52.222–36, Equal Opportunity for Workers with Disabilities (JUN 2020) (29 U.S.C. 793). * * * * * (T) 52.226–6, Promoting Excess Food Donation to Nonprofit Organizations. (JUN 2020) (42 U.S.C. 1792). * * * * * * * * ■ 41. Amend section 52.213–4 by— ■ a. Revising the date of the clause; ■ b. Adding a period to the end of paragraph (a)(2)(iv); ■ c. Revising paragraphs (a)(2)(viii) and (b)(1)(i) through (iv), the first sentence of paragraph (b)(1)(v), and paragraph (b)(1)(vi); ■ d. Removing from paragraph (b)(1)(xvii) introductory text ‘‘threshold’’ and adding ‘‘threshold, as defined in FAR 2.101 on the date of award of this contract,’’ in its place; and ■ e. Revising paragraphs (b)(1)(xviii) and (b)(2)(ii). The revisions read as follows: 52.213–4 Terms and Conditions— Simplified Acquisitions (Other Than Commercial Items). * * * * * Terms and Conditions—Simplified Acquisitions (Other Than Commercial Items) (JUN 2020) (a) * * * (2) * * * (viii) 52.244–6, Subcontracts for Commercial Items (JUN 2020) (b) * * * (1) * * * (i) 52.204–10, Reporting Executive Compensation and First-Tier Subcontract Awards (JUN 2020) (Pub. L. 109–282) (31 U.S.C. 6101 note) (Applies to contracts valued at or above the threshold specified in FAR 4.1403(a) on the date of award of this contract). (ii) 52.222–19, Child Labor— Cooperation with Authorities and Remedies (JAN 2020) (E.O. 13126) (Applies to contracts for supplies exceeding the micro-purchase threshold, as defined in FAR 2.101 on the date of award of this contract). (iii) 52.222–20, Contracts for Materials, Supplies, Articles, and PO 00000 Frm 00009 Fmt 4701 Sfmt 4700 27093 Equipment (JUN 2020) (41 U.S.C. chapter 65) (Applies to supply contracts over the threshold specified in FAR 22.602 on the date of award of this contract, in the United States, Puerto Rico, or the U.S. Virgin Islands). (iv) 52.222–35, Equal Opportunity for Veterans (JUN 2020) (38 U.S.C. 4212) (Applies to contracts valued at or above the threshold specified in FAR 22.1303(a) on the date of award of this contract). (v) 52.222–36, Equal Employment for Workers with Disabilities (JUN 2020) (29 U.S.C. 793) (Applies to contracts over the threshold specified in FAR 22.1408(a) on the date of award of this contract, unless the work is to be performed outside the United States by employees recruited outside the United States). * * * (vi) 52.222–37, Employment Reports on Veterans (JUN 2020)(38 U.S.C. 4212) (Applies to contracts valued at or above the threshold specified in FAR 22.1303(a) on the date of award of this contract). * * * * * (xviii) 52.226–6, Promoting Excess Food Donation to Nonprofit Organizations (JUN 2020) (42 U.S.C. 1792) (Applies to contracts greater than the threshold specified in FAR 26.404 on the date of award of this contract, that provide for the provision, the service, or the sale of food in the United States). * * * * * (2) * * * (ii) 52.209–6, Protecting the Government’s Interest When Subcontracting with Contractors Debarred, Suspended, or Proposed for Debarment (JUN 2020) (Applies to contracts over the threshold specified in FAR 9.405–2(b) on the date of award of this contract). * * * * * ■ 42. Amend section 52.214–26 by revising the date of the clause and paragraph (e) to read as follows: 52.214–26 Bidding. Audit and Records—Sealed * * * * * Audit and Records—Sealed Bidding (JUN 2020) * * * * * (e) Subcontracts. The Contractor shall insert a clause containing all the provisions of this clause, including this paragraph (e), in all subcontracts expected to exceed the threshold for submission of certified cost or pricing data in FAR 15.403–4(a)(1) on the date of subcontract award. * E:\FR\FM\06MYR3.SGM * * 06MYR3 * * 27094 Federal Register / Vol. 85, No. 88 / Wednesday, May 6, 2020 / Rules and Regulations 52.215–2 43. Amend section 52.214–27 by revising the date of the clause and paragraph (a) to read as follows: ■ * * * * * * * * * * 44. Amend section 52.214–28 by— ■ a. Revising the date of the clause; ■ b. Removing from paragraph (a)(1) ‘‘at (FAR) 48 CFR 15.403–4(a)(1)’’ and adding ‘‘in Federal Acquisition Regulation (FAR) 15.403–4(a)(1) on the date of execution of the modification’’ in its place; ■ c. Removing from paragraph (b) ‘‘at FAR 15.403–4(a)(1)’’ everywhere it appears and adding ‘‘in FAR 15.403– 4(a)(1)’’ in its place and adding a sentence to the end of the paragraph; and ■ d. Removing from paragraph (d) ‘‘at FAR 15.403–4(a)(1)’’ and adding ‘‘in FAR 15.403–4(a)(1)’’ in its place. The revision and addition read as follows: ■ 52.214–28 Subcontractor Certified Cost or Pricing Data—Modifications—Sealed Bidding. * * * Subcontractor Certified Cost or Pricing Data—Modifications—Sealed Bidding (JUN 2020) * * * * * (b) * * * If the threshold for submission of certified cost or pricing data specified in FAR 15.403–4(a)(1) is adjusted for inflation as set forth in FAR 1.109(a), then pursuant to FAR 1.109(d) the changed threshold applies throughout the remaining term of the contract, unless there is a subsequent threshold adjustment. * * * * * 45. Amend section 52.215–2 by— ■ a. Revising the date of the clause; and ■ b. Removing from paragraph (g) introductory text ‘‘threshold’’ and adding ‘‘threshold, as defined in FAR 2.101 on the date of subcontract award,’’ in its place. The revision reads as follows: ■ VerDate Sep<11>2014 19:54 May 05, 2020 Jkt 250001 * * * * * * 46. Amend section 52.215–11 by revising the date of the clause and paragraph (a) to read as follows: ■ (a) This clause shall become operative only for any modification to this contract involving aggregate increases and/or decreases in costs, plus applicable profits, expected to exceed the threshold for the submission of certified cost or pricing data in Federal Acquisition Regulation (FAR) 15.403–4(a)(1) on the date of execution of the modification, except that this clause does not apply to a modification if an exception under FAR 15.403–1(b) applies. * * * Price Reduction for Defective Certified Cost or Pricing Data—Modifications— Sealed Bidding (JUN 2020) * Audit and Records—Negotiation. Audit and Records—Negotiation (JUN 2020) 52.214–27 Price Reduction for Defective Certified Cost or Pricing Data— Modifications—Sealed Bidding. * * 52.215–11 Price Reduction for Defective Certified Cost or Pricing Data— Modifications. * * * * * (a) This clause shall become operative only for any modification to this contract involving a pricing adjustment expected to exceed the threshold for submission of certified cost or pricing data in Federal Acquisition Regulation (FAR) 15.403–4(a)(1) on the date of execution of the modification, except that this clause does not apply to any modification if an exception under FAR 15.403–1(b) applies. * * * * * 47. Amend section 52.215–12 by revising the date of the clause and paragraphs (a) and (c) introductory text to read as follows: ■ 52.215–12 Subcontractor Certified Cost or Pricing Data. * * * * Subcontractor Certified Cost or Pricing Data (JUN 2020) (a) Before awarding any subcontract expected to exceed the threshold for submission of certified cost or pricing data in Federal Acquisition Regulation (FAR) 15.403–4(a)(1), on the date of agreement on price or the date of award, whichever is later; or before pricing any subcontract modification involving a pricing adjustment expected to exceed the threshold for submission of certified cost or pricing data in FAR 15.403–4(a)(1), the Contractor shall require the subcontractor to submit certified cost or pricing data (actually or by specific identification in writing), in accordance with FAR 15.408, Table 15–2 (to include any information reasonably required to explain the subcontractor’s estimating process such as the judgmental factors applied and the mathematical or other methods used in the estimate, including those used in projecting from known data, and the nature and amount of any contingencies included in the price), unless an exception under FAR 15.403–1(b) applies. If the threshold for submission of certified cost or pricing data specified in FAR 15.403–4(a)(1) is adjusted for inflation as set forth in FAR 1.109(a), then pursuant to FAR 1.109(d) the changed threshold applies throughout the remaining term of the contract, unless there is a subsequent threshold adjustment. * * * * * (c) In each subcontract that, when entered into, exceeds the threshold for submission of PO 00000 Frm 00010 Fmt 4701 Sfmt 4700 * * * * * 48. Amend section 52.215–13 by— a. Revising the date of the clause and paragraphs (a)(1) and (b); and ■ b. Removing from paragraph (d) ‘‘at FAR 15.403–4’’ and adding ‘‘in FAR 15.403–4(a)(1)’’ in its place. The revisions read as follows: ■ ■ 52.215–13 Subcontractor Certified Cost or Pricing Data—Modifications. * Price Reduction for Defective Certified Cost or Pricing Data—Modifications (JUN 2020) * certified cost or pricing data in FAR 15.403– 4(a)(1), the Contractor shall insert either— * * * * Subcontractor Certified Cost or Pricing Data—Modifications (JUN 2020) (a) * * * (1) Become operative only for any modification to this contract involving a pricing adjustment expected to exceed the threshold for submission of certified cost or pricing data in Federal Acquisition Regulation (FAR) 15.403– 4(a)(1) on the date of execution of the modification; and * * * * * (b) Before awarding any subcontract expected to exceed the threshold for submission of certified cost or pricing data in FAR 15.403–4(a)(1), on the date of agreement on price or the date of award, whichever is later; or before pricing any subcontract modification involving a pricing adjustment expected to exceed the threshold for submission of certified cost or pricing data in FAR 15.403–4(a)(1), the Contractor shall require the subcontractor to submit certified cost or pricing data (actually or by specific identification in writing), in accordance with FAR 15.408, Table 15– 2 (to include any information reasonably required to explain the subcontractor’s estimating process such as the judgmental factors applied and the mathematical or other methods used in the estimate, including those used in projecting from known data, and the nature and amount of any contingencies included in the price), unless an exception under FAR 15.403–1(b) applies. If the threshold for submission of certified cost or pricing data specified in FAR 15.403–4(a)(1) is adjusted for inflation as set forth in FAR 1.109(a), then pursuant to FAR 1.109(d) the changed threshold applies throughout the remaining term of the contract, unless there is a subsequent threshold adjustment. * * * * * ■ 49. Amend section 52.215–14 by revising the date of the clause and paragraph (c) to read as follows: 52.215–14 Integrity of Unit Prices. * * E:\FR\FM\06MYR3.SGM * 06MYR3 * * Federal Register / Vol. 85, No. 88 / Wednesday, May 6, 2020 / Rules and Regulations Integrity of Unit Prices (JUN 2020) * * * * * (c) The Contractor shall insert the substance of this clause, less paragraph (b) of this clause, in all subcontracts for other than: acquisitions at or below the simplified acquisition threshold, as defined in Federal Acquisition Regulation (FAR) 2.101 on the date of subcontract award; construction or architect-engineer services under FAR part 36; utility services under FAR part 41; services where supplies are not required; commercial items; and petroleum products. * * * * * 50. Amend section 52.215–21 by revising the date of the clause and the introductory text of paragraph (a)(1) to read as follows: ■ 52.215–21 Requirements for Certified Cost or Pricing Data and Data Other Than Certified Cost or Pricing Data— Modifications. * * * * * Requirements for Certified Cost or Pricing Data and Data Other Than Certified Cost or Pricing Data— Modifications (JUN 2020) (a) * * * (1) In lieu of submitting certified cost or pricing data for modifications under this contract, for price adjustments expected to exceed the threshold set forth in Federal Acquisition Regulation (FAR) 15.403–4(a)(1) on the date of the agreement on price or the date of the award, whichever is later, the Contractor may submit a written request for exception by submitting the information described in paragraphs (a)(1)(i) and (ii) of this clause. If the threshold for submission of certified cost or pricing data specified in FAR 15.403–4(a)(1) is adjusted for inflation as set forth in FAR 1.109(a), then pursuant to FAR 1.109(d) the changed threshold applies throughout the remaining term of the contract, unless there is a subsequent threshold adjustment. The Contracting Officer may require additional supporting information, but only to the extent necessary to determine whether an exception should be granted, and whether the price is fair and reasonable— * * * * * 51. Amend section 52.215–23 by— a. Revising the date of the clause; b. In paragraph (a), removing from the definition ‘‘Subcontract’’ the acronym ‘‘FAR’’ and adding ‘‘Federal Acquisition Regulation (FAR)’’ in its place; and ■ c. Revising paragraph (f). The revisions read as follows: ■ ■ ■ 52.215–23 Charges. Limitations on Pass-Through * * * * * Limitations on Pass-Through Charges (JUN 2020) * * * * * (f) Subcontracts. The Contractor shall insert the substance of this clause, including this paragraph (f), in all cost-reimbursement VerDate Sep<11>2014 19:54 May 05, 2020 Jkt 250001 subcontracts under this contract that exceed the simplified acquisition threshold, as defined in FAR 2.101 on the date of subcontract award, except if the contract is with DoD, then insert in all costreimbursement subcontracts and fixed-price subcontracts, except those identified in FAR 15.408(n)(2)(i)(B)(2), that exceed the threshold for obtaining cost or pricing data in FAR 15.403–4(a)(1) on the date of subcontract award. * * * * * 52. Amend section 52.219–9 by— a. Revising the date of the clause; b. In paragraph (b), revising the definition of ‘‘Commercial item’’; ■ c. Removing from paragraph (d)(9) ‘‘$700,000 ($1.5 million for construction of any public facility)’’ and adding ‘‘the applicable threshold specified in FAR 19.702(a) on the date of subcontract award,’’ in its place; ■ d. Removing from paragraph (d)(11)(iii) introductory text ‘‘$150,000’’ and adding ‘‘the simplified acquisition threshold, as defined in FAR 2.101 on the date of subcontract award’’ in its place; ■ e. Removing from the first sentence of paragraph (e)(6) ‘‘threshold’’ and adding ‘‘threshold, as defined in FAR 2.101 on the date of subcontract award,’’ in its place; ■ f. Removing from paragraph (i) ‘‘threshold in’’ and adding ‘‘threshold in FAR’’ in its place; ■ g. Removing from paragraph (l)(2)(i)(C) ‘‘$700,000 (over $1.5 million for construction of a public facility) and’’ and adding ‘‘the applicable threshold specified in FAR 19.702(a), and the contract’’ in its place; ■ h. In Alternate III— ■ i. Revising the date of the alternate; and ■ ii. Removing from paragraph (l)(2)(i)(C) ‘‘$700,000 (over $1.5 million for construction of a public facility) and’’ and adding ‘‘the applicable threshold specified in FAR 19.702(a), and the contract’’ in its place; and ■ i. In Alternate IV— ■ i. Revising the date of the alternate; ■ ii. Removing from paragraph (d)(9) ‘‘$700,000 ($1.5 million for construction of any public facility)’’ and adding ‘‘the applicable threshold specified in FAR 19.702(a) on the date of subcontract award,’’ in its place; and ■ iii. Removing from paragraph (d)(11)(iii) introductory text ‘‘$150,000’’ and adding ‘‘the simplified acquisition threshold, as defined in FAR 2.101 on the date of subcontract award’’ in its place. The revisions read as follows: ■ ■ ■ 52.219–9 Plan. * PO 00000 * Small Business Subcontracting * Frm 00011 * Fmt 4701 * Sfmt 4700 27095 Small Business Subcontracting Plan (JUN 2020) * * * * * (b) * * * Commercial item means a product or service that satisfies the definition of commercial item in Federal Acquisition Regulation (FAR) 2.101. * * * * * Alternate III (JUN 2020). * * * * * * * * Alternate IV (JUN 2020). * * * * * * * * 53. Amend section 52.222–20 by revising the section heading, the clause heading, and the introductory text of the clause to read as follows: ■ 52.222–20 Contracts for Materials, Supplies, Articles, and Equipment. * * * * * Contracts for Materials, Supplies, Articles, and Equipment (JUN 2020) If this contract is for the manufacture or furnishing of materials, supplies, articles or equipment in an amount that exceeds or may exceed the threshold specified in Federal Acquisition Regulation 22.602 on the date of award of this contract, and is subject to 41 U.S.C. chapter 65, the following terms and conditions apply: * * * * * 54. Amend section 52.222–35 by— ■ a. Revising the date of the clause; ■ b. Removing from paragraph (a), in the definition ‘‘Active duty wartime or campaign badge veteran,’’ ‘‘Armed Forces service medal veteran,’’ ‘‘disabled veteran,’’ ‘‘protected veteran,’’ ‘‘qualified disabled veteran,’’ and ‘‘recently separated veteran’’, the acronym ‘‘FAR’’ and adding ‘‘Federal Acquisition Regulation (FAR)’’ in its place; and ■ c. Removing from paragraph (c) ‘‘of $150,000 or more’’ and adding ‘‘valued at or above the threshold specified in FAR 22.1303(a) on the date of subcontract award,’’ in its place. The revision reads as follows: ■ 52.222–35 Equal Opportunity for Veterans. * * * * * Equal Opportunity for Veterans (JUN 2020) * * * * * 55. Amend section 52.222–36 by— ■ a. Revising the date of the clause; and ■ b. Removing from the first sentence in paragraph (b) ‘‘$15,000’’ and adding ‘‘the threshold specified in Federal Acquisition Regulation (FAR) 22.1408(a) on the date of subcontract award,’’ in its place. The revision reads as follows: ■ E:\FR\FM\06MYR3.SGM 06MYR3 27096 Federal Register / Vol. 85, No. 88 / Wednesday, May 6, 2020 / Rules and Regulations 52.222–36 Equal Opportunity for Workers with Disabilities. 52.226–6 Promoting Excess Food Donation to Nonprofit Organizations. * * * * * * * * * * Promoting Excess Food Donation to Nonprofit Organizations (JUN 2020) * * ■ ■ ■ (e) Subcontracts. The Contractor shall insert this clause in all contracts, task orders, delivery orders, purchase orders, and other similar instruments that exceed the threshold specified in Federal Acquisition Regulation 26.404 on the date of subcontract award with its subcontractors or suppliers, at any tier, who will perform, under this contract, the provision, service, or sale of food in the United States. * * * * * * * * * 60. Amend section 52.227–1 by revising the date of the clause and paragraph (b) to read as follows: ■ 52.222–37 Veterans. Employment Reports on * * * * * Employment Reports on Veterans (JUN 2020) * * * * * ■ 57. Amend section 52.223–18 by— ■ a. Revising the date of the clause; and ■ b. Removing from paragraph (d) ‘‘threshold.’’ and adding ‘‘threshold, as defined in Federal Acquisition Regulation 2.101 on the date of subcontract award.’’ in its place. The revision reads as follows: 52.223–18 Encouraging Contractor Policies to Ban Text Messaging While Driving. * * * * * Encouraging Contractor Policies To Ban Text Messaging While Driving (JUN 2020) * * * * * ■ 58. Amend section 52.225–25 by— ■ a. Revising the clause heading; ■ b. Removing from the introductory text of paragraph (c) ‘‘accordance with’’ and adding ‘‘accordance with Federal Acquisition Regulation (FAR)’’ in its place; and ■ c. Removing from paragraph (c)(3) ‘‘$3,500’’ and adding ‘‘the threshold at FAR 25.703–2(a)(2)’’ in its place. 52.227–1 * * Authorization and Consent. * * * Authorization and Consent (JUN 2020) * * * * * (b) The Contractor shall include the substance of this clause, including this paragraph (b), in all subcontracts that are expected to exceed the simplified acquisition threshold, as defined in Federal Acquisition Regulation (FAR) 2.101 on the date of subcontract award. However, omission of this clause from any subcontract, including those at or below the simplified acquisition threshold, as defined in FAR 2.101 on the date of subcontract award, does not affect this authorization and consent. * * * * * 61. Amend section 52.227–2 by revising the date of the clause and paragraph (c) to read as follows: ■ 52.227–2 Notice and Assistance Regarding Patent and Copyright Infringement. * * * * * * * * * 52.225–25 Prohibition on Contracting with Entities Engaging in Certain Activities or Transactions Relating to Iran— Representation and Certifications. (c) The Contractor shall include the substance of this clause, including this paragraph (c), in all subcontracts that are expected to exceed the simplified acquisition threshold, as defined in Federal Acquisition Regulation (FAR) 2.101 on the date of subcontract award. * * * * * * Prohibition on Contracting With Entities Engaging in Certain Activities or Transactions Relating to Iran— Representation and Certifications (JUN 2020) * * * * * 59. Amend section 52.226–6 by revising the section heading, the date of the clause, and paragraph (e) to read as follows: ■ VerDate Sep<11>2014 19:54 May 05, 2020 Jkt 250001 * * * * 62. Amend section 52.227–3 in Alternate III by revising the date of the alternate and removing from the undesignated paragraph ‘‘threshold’’ and adding ‘‘threshold, as defined in Federal Acquisition Regulation 2.101 on the date of subcontract award,’’ in its place to read as follows: ■ 52.227–3 * PO 00000 * Patent Indemnity. * Frm 00012 * Fmt 4701 * Sfmt 4700 * * * * 63. Amend section 52.228–15 by revising the date of the clause and the introductory text of paragraph (b) to read as follows: 52.228–15 Performance and Payment Bonds—Construction. * * * * * Performance and Payment Bonds— Construction (JUN 2020) * * * * * (b) Amount of required bonds. Unless the resulting contract price is valued at or below the threshold specified in Federal Acquisition Regulation 28.102–1(a) on the date of award of this contract, the successful offeror shall furnish performance and payment bonds to the Contracting Officer as follows: * * * * * 64. Amend section 52.230–1 by— a. Revising the introductory text and the date of the provision; ■ b. Removing from paragraph (a) ‘‘$750,000’’ and ‘‘Chapter’’ and adding ‘‘the lower CAS threshold specified in Federal Acquisition Regulation (FAR) 30.201–4(b)’’ and ‘‘chapter’’ in their places, respectively; and ■ d. Revising the undesignated parenthetical paragraph following paragraph (c)(1). The revisions read as follows: ■ ■ 52.230–1 Cost Accounting Standards Notices and Certification. As prescribed in 30.201–3(a), insert the following provision: Cost Accounting Standards Notices and Certification (JUN 2020) * Notice and Assistance Regarding Patent and Copyright Infringement (JUN 2020) * * ■ Equal Opportunity for Workers With Disabilities (JUN 2020) * * * * 56. Amend section 52.222–37 by— a. Revising the date of the clause; b. Removing from paragraph (a) ‘‘FAR’’ and adding ‘‘Federal Acquisition Regulation (FAR)’’ in its place; and ■ c. Removing from paragraph (g) ‘‘of $150,000 or more’’ and adding ‘‘valued at or above the threshold specified in FAR 22.1303(a) on the date of subcontract award,’’ in its place. The revision reads as follows: Alternate III (JUN 2020). * * * * * * * (c) * * * (Disclosure must be on Form No. CASB DS–1 or CASB DS–2, as applicable. Forms may be obtained from the cognizant ACO or Federal official.) * * * * * 65. Amend section 52.230–2 by— a. Revising the date of the clause; and b. Removing from paragraph (d) ‘‘Regulation shall’’ and ‘‘$750,000’’ and adding ‘‘Regulation (FAR) shall’’ and ‘‘the lower CAS threshold specified in FAR 30.201–4(b) on the date of subcontract award’’ in their places, respectively. The revision read as follows: ■ ■ ■ 52.230–2 * * Cost Accounting Standards. * * * Cost Accounting Standards (JUN 2020) * * * * * 66. Amend section 52.230–3 by— a. Revising the date of the clause; b. Removing from paragraph (d)(1) ‘‘subsection’’ and ‘‘Regulation shall’’ ■ ■ ■ E:\FR\FM\06MYR3.SGM 06MYR3 Federal Register / Vol. 85, No. 88 / Wednesday, May 6, 2020 / Rules and Regulations and adding ‘‘section’’ and ‘‘Regulation (FAR) shall’’ in their places, respectively; and ■ c. Revising paragraph (d)(2). The revisions read as follows: ■ 52.230–3 Disclosure and Consistency of Cost Accounting Practices. 52.232–16 Progress Payments. * * * * * * ii. Removing from paragraph (n) ‘‘threshold.’’ and adding ‘‘threshold, as defined in FAR 2.101 on the date of individual order award.’’ in its place. The revisions read as follows: * * * * * * * * * * 67. Amend section 52.230–4 by— a. Revising the date of the clause; b. Removing from paragraph (d)(1) ‘‘FAR’’ and adding ‘‘Federal Acquisition Regulation (FAR)’’ in its place; and ■ c. Revising paragraph (d)(2). The revisions read as follows: ■ ■ ■ 52.230–4 Disclosure and Consistency of Cost Accounting Practices—Foreign Concerns. * * * * Disclosure and Consistency of Cost Accounting Practices—Foreign Concerns (JUN 2020) * * * * * * * * 68. Amend section 52.230–5 by revising the date of the clause and paragraph (d)(2) to read as follows: 52.230–5 Cost Accounting Standards— Educational Institution. * * Cost Accounting Standards— Educational Institution (JUN 2020) * * * * * (d) * * * (2) The requirement in this paragraph (d) shall apply only to negotiated subcontracts in excess of the lower CAS threshold specified in Federal Acquisition Regulation (FAR) 30.201–4(b) on the date of subcontract award; and * * * * * 69. Amend section 52.232–16 by— a. Revising the date of the clause; b. Removing from paragraph (a)(1) ‘‘FAR’’ and adding ‘‘Federal Acquisition Regulation (FAR)’’ in its place; and ■ c. In Alternate III— ■ i. Revising the date of the alternate; and ■ ■ ■ VerDate Sep<11>2014 19:54 May 05, 2020 * * * * * * 70. Amend section 52.244–2 by— a. Revising the date of the clause; b. Removing from paragraphs (c)(2)(i) and (ii) ‘‘threshold’’ and adding ‘‘threshold, as defined in FAR 2.101 on the date of subcontract award,’’ in their places; and ■ c. In Alternate I— ■ i. Revising the date of the alternate; and ■ ii. Removing from paragraph (e)(2) ‘‘threshold’’ and ‘‘paragraphs (e)(1)(i) through (e)(1)(iv)’’ and adding ‘‘threshold, as defined in FAR 2.101 on the date of subcontract award,’’ and ‘‘paragraphs (e)(1)(i) through (iv)’’ in their places, respectively. The revisions read as follows: ■ ■ ■ * Subcontracts. * * Jkt 250001 * * * * * * * * * * 71. Amend section 52.244–6 by— a. Revising the date of the clause; b. In paragraph (a), revising the definition ‘‘Commercial item’’ and ‘‘commercially available off-the-shelf item’’; ■ c. Revising the first sentence in paragraph (c)(1)(i); ■ d. Removing from paragraph (c)(1)(vii) ‘‘$700,000 ($1.5 million for construction of any public facility)’’ and adding ‘‘the applicable threshold specified in FAR 19.702(a) on the date of subcontract award’’ in its place; and ■ e. Revising paragraphs (c)(1)(x), (xi), and (xii). The revisions read as follows: ■ ■ ■ * * Subcontracts for Commercial * * * * * 72. Amend section 52.246–26 by— ■ a. Revising the date of the clause; and ■ b. Removing from paragraph (g)(1)(iii) ‘‘threshold’’ and adding ‘‘threshold, as defined in FAR 2.101 on the date of subcontract award,’’ in its place. The revision reads as follows: ■ 52.246–26 Items. Reporting Nonconforming * * * PO 00000 * Frm 00013 * Fmt 4701 * * * * * 73. Amend section 52.248–1 by— ■ a. Revising the date of the clause; ■ b. Removing from paragraph (i)(5) ‘‘subsection’’ and ‘‘Regulation’’ and adding ‘‘section’’ and ‘‘Regulation (FAR)’’ in their places, respectively; and ■ c. Revising the first sentence of paragraph (1). The revisions read as follows: 52.248–1 * * Value Engineering. * * * Value Engineering (JUN 2020) * * * * * (l) Subcontracts. The Contractor shall include an appropriate value engineering clause in any subcontract-valued at or above the simplified acquisition threshold, as defined in FAR 2.101 on the date of subcontract award, and may include one in subcontracts of lesser value. * * * * * * BILLING CODE 6820–EP–P * Sfmt 9990 * Reporting Nonconforming Items (JUNE 2020) (a) * * * Commercial item and commercially available off-the-shelf item have the meanings contained in Federal Acquisition Regulation (FAR) 2.101. * * * [FR Doc. 2020–07109 Filed 5–5–20; 8:45 am] * Subcontracts for Commercial Items (JUN 2020) * * * * * * ■ Alternate I (JUN 2020). * * * 52.244–6 Items. * (x) 52.222–35, Equal Opportunity for Veterans (Jun 2020) (38 U.S.C. 4212(a)). (xi) 52.222–36, Equal Opportunity for Workers with Disabilities (Jun 2020) (29 U.S.C. 793). (xii) 52.222–37, Employment Reports on Veterans (Jun 2020) (38 U.S.C. 4212). * * Subcontracts (JUN 2020) * ■ * * (c)(1) * * * (i) 52.203–13, Contractor Code of Business Ethics and Conduct (Jun 2020) (41 U.S.C. 3509), if the subcontract exceeds the threshold specified in FAR 3.1004(a) on the date of subcontract award, and has a performance period of more than 120 days. * * * * * * * * * 52.244–2 (d) * * * (2) The requirement in this paragraph (d) shall apply only to negotiated subcontracts in excess of the lower CAS threshold specified in FAR 30.201–4(b) on the date of subcontract award. * * Alternate III (JUN 2020). * * * * (d) * * * (2) The requirement in this paragraph (d) shall apply only to negotiated subcontracts in excess of the lower CAS threshold specified in FAR 30.201–4(b) on the date of subcontract award. * * Progress Payments (JUN 2020) Disclosure and Consistency of Cost Accounting Practices (JUN 2020) * * 27097 E:\FR\FM\06MYR3.SGM 06MYR3

Agencies

[Federal Register Volume 85, Number 88 (Wednesday, May 6, 2020)]
[Rules and Regulations]
[Pages 27088-27097]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-07109]


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

DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 1, 5, 8, 9, 12, 13, 15, 19, 22, 25, 30, 50, and 52

[FAC 2020-06; FAR Case 2018-007; Item II; Docket No. FAR-2018-0007; 
Sequence No. 1]
RIN 9000-AN67


Federal Acquisition Regulation: Applicability of Inflation 
Adjustments of Acquisition-Related Thresholds

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

ACTION: Final rule.

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

SUMMARY: DoD, GSA, and NASA are issuing a final rule amending the 
Federal Acquisition Regulation (FAR) to implement a section of the 
National Defense Authorization Act for Fiscal Year 2018 to make 
inflation adjustments of statutory acquisition-related thresholds 
applicable to existing contracts and subcontracts in effect on the date 
of the adjustment that contain the revised clauses in this rulemaking.

DATES: Effective: June 5, 2020.

FOR FURTHER INFORMATION CONTACT: Ms. Zenaida Delgado, Procurement 
Analyst, at 202-969-7207 or [email protected] for clarification 
of content. For information pertaining to status or publication 
schedules, contact the Regulatory Secretariat Division at 202-501-4755. 
Please cite FAC 2020-06, FAR Case 2018-007.

SUPPLEMENTARY INFORMATION: 

I. Background

    DoD, GSA, and NASA published a proposed rule in the Federal 
Register on June 24, 2019, at 84 FR 29482, to make inflation 
adjustments of statutory acquisition-related thresholds under 41 U.S.C. 
1908 applicable to existing contracts and subcontracts in effect on the 
date of the adjustment. This FAR change implements section 821 of the 
National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2018 
(Pub. L. 115-91).
    Title 41 U.S.C. 1908, Inflation adjustment of acquisition-related 
dollar thresholds, requires an adjustment every five years of 
acquisition-related thresholds for inflation using the Consumer Price 
Index for all urban consumers, except for the Construction Wage Rate 
Requirements statute (Davis-Bacon Act), Service Contract Labor 
Standards statute, and trade agreements thresholds. See FAR 1.109. The 
last FAR case that raised the thresholds for inflation was 2014-022, a 
final rule published on July 2, 2015, effective October 1, 2015. The 
next inflation adjustment under 41 U.S.C. 1908 will be implemented 
through FAR Case 2019-013 and planned to be effective October 1, 2020. 
One respondent submitted comments on the proposed rule.

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 is provided 
as follows:

A. Summary of Changes

    There are no changes as a result of comments on the proposed rule.

B. Analysis of Public Comments

    Comment: One respondent supported the proposed rule and suggested 
to include a list, preferably in table form, of the actual calendar 
dates of threshold effectiveness.
    Response: The Councils agree a table might be a helpful reference 
tool and will add one at Acquisition.gov under https://www.acquisition.gov/tableofeffectivedatesforMPTandSAT. The table will 
only illustrate changes to the micro-purchase and simplified 
acquisition thresholds, after they are implemented through the 
rulemaking process.

C. Other Changes

    Editorial changes are made to three clauses to change the paragraph 
heading of ``Flowdown'' to ``Subcontracts'' in order to conform to FAR 
drafting conventions. See FAR clauses 52.203-16, paragraph (d); 52.215-
23, paragraph (f); and 52.226-6, paragraph (e).

III. Applicability to Contracts at or Below the Simplified Acquisition 
Threshold and for Commercial Items, Including Commercially Available 
Off-the-Shelf Items

    This rule does not add any new solicitation provisions or clauses, 
or impact any existing provisions or clauses, except for the added 
references to acquisition-related thresholds in the FAR text.

IV. Executive Orders 12866 and 13563

    Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess 
all costs and benefits of available regulatory

[[Page 27089]]

alternatives and, if regulation is necessary, to select regulatory 
approaches that maximize net benefits (including potential economic, 
environmental, public health and safety effects, distributive impacts, 
and equity). E.O. 13563 emphasizes the importance of quantifying both 
costs and benefits, of reducing costs, of harmonizing rules, and of 
promoting flexibility. This rule is not a significant regulatory 
action, and therefore, this rule was not subject to the review of the 
Office of Information and Regulatory Affairs under section 6(b) of E.O. 
12866. This rule is not a major rule under 5 U.S.C. 804.

V. Executive Order 13771

    This rule is not an E.O. 13771 regulatory action, because this rule 
is not significant under E.O. 12866.

VI. Regulatory Flexibility Act

    DoD, GSA, and NASA have prepared a Final Regulatory Flexibility 
Analysis (FRFA) consistent with the Regulatory Flexibility Act, 5 
U.S.C. 601, et seq. The FRFA is summarized as follows:

    This rule is required to implement section 821 of the National 
Defense Authorization Act for Fiscal Year (FY) 2018. The objective 
is to make inflation adjustments of statutory acquisition-related 
thresholds under 41 U.S.C. 1908(d) applicable to existing contracts 
and subcontracts in effect on the date of the adjustment that 
contain the revised clauses.
    There were no significant issues raised by the public in 
response to the initial regulatory flexibility analysis.
    This rule will likely affect to some extent all small business 
concerns that submit offers or are awarded contracts by the Federal 
Government.
    However, this rule is not expected to have any significant 
economic impact on small business concerns because this rule: (1) Is 
not creating any new requirements with which small entities must 
comply, and (2) is only establishing the framework to apply the 
inflation adjustments of statutory acquisition-related thresholds 
under 41 U.S.C. 1908 to existing contracts and subcontracts in 
effect on the date of the adjustment. Any impact on small business 
concerns will be beneficial by preventing burdensome requirements 
from continuing to apply to smaller dollar value contracts when 
acquisition thresholds are increased during the period of 
performance.
    As of September 30, 2017, there were 637,791 active entity 
registrations in SAM.gov. Of those active entity registrations, 
452,310 (71 percent) completed all four modules of the registration, 
in accordance with FAR 52.204-7(a)(2), including Assertions (where 
they enter their size metrics and select their NAICS Codes) and Reps 
& Certs (where they certify to the information they provided and the 
size indicator by NAICS).
    Of the possible 452,310 active SAM.gov entity registrations, 
338,207 (75 percent) certified to meeting the size standard of small 
for their primary NAICS Code. Therefore, this rule may be beneficial 
to 338,207 small business entities that submit proposals that may 
now fall under the micro-purchase threshold, the simplified 
acquisition threshold, or other applicable acquisition thresholds 
(e.g., contractor code of business ethics and conduct, reporting 
executive compensation and first-tier subcontract awards, equal 
opportunity for veterans) as a result of this rule.
    The rule does not include additional reporting or record keeping 
requirements.
    There are no available alternatives to the rule to accomplish 
the desired objective of the statute.

    Interested parties may obtain a copy of the FRFA from the 
Regulatory Secretariat Division. The Regulatory Secretariat Division 
has submitted a copy of the FRFA to the Chief Counsel for Advocacy of 
the Small Business Administration.

VII. Paperwork Reduction Act

    The Paperwork Reduction Act (44 U.S.C. Chapter 35) does apply; 
however, the changes to the FAR do not impose new information 
collection requirements that require the approval of the Office of 
Management and Budget (OMB) under 44 U.S.C. 3501, et seq. The changes 
do not impose additional information collection requirements to the 
paperwork burden previously approved under the following OMB Control 
Numbers: 9000-0007, Subcontracting Plans; 9000-0018, Certification Of 
Independent Price Determination, Contractor Code of Business Ethics and 
Conduct, and Preventing Personal Conflicts of Interest; 9000-0027, 
Value Engineering Requirements; 9000-0193, FAR Part 9 Responsibility 
Matters; 9000-0091, Anti-Kickback Procedures; 9000-0097, Federal 
Acquisition Regulation Part 4 Requirements; 9000-0136, Commercial Item 
Acquisitions; 9000-0034, Examination of Records by Comptroller General 
and Contract Audit; 9000-0013, Certified Cost or Pricing Data and Data 
Other Than Certified Cost or Pricing Data; 9000-0048, Authorized 
Negotiators and Integrity of Unit Prices; 9000-0078, Certain Federal 
Acquisition Regulation Part 15 Requirements; 9000-0096, Patents; 9000-
0045, Bid Guarantees, Performance, and Payments Bonds, and Alternative 
Payment Protection; 9000-0010, Progress Payments, SF 1443; 9000-0149, 
Subcontract Consent and Contractors' Purchasing System Review; 1235-
0007, Labor Standards for Federal Service Contracts; 1235-0025, 
Nondisplacement of Qualified Workers Under Service Contracts, Executive 
Order 13495; 1250-0004, Office of Federal Contract Compliance Programs 
Recordkeeping and Reporting Requirements Under the Vietnam Era 
Veterans' Readjustment Assistance Act of 1974, as Amended; and 1250-
0005, Office of Federal Contract Compliance Programs Recordkeeping and 
Reporting Requirements Under Rehabilitation Act of 1973, as Amended 
Section 503.

List of Subjects in 48 CFR Parts 1, 5, 8, 9, 12, 13, 15, 19, 22, 
25, 30, 50, and 52

    Government procurement.

William F. Clark,
Director, Office of Government-wide Acquisition Policy, Office of 
Acquisition Policy, Office of Government-wide Policy.

    Therefore, DoD, GSA, and NASA amend 48 CFR parts 1, 5, 8, 9, 12, 
13, 15, 19, 22, 25, 30, 50, and 52 as set forth below:

0
1. The authority citation for 48 CFR parts 1, 5, 8, 9, 12, 13, 15, 19, 
22, 25, 30, 50, and 52 continues to read as follows:

    Authority:  40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 51 
U.S.C. 20113.

PART 1--FEDERAL ACQUISITION REGULATIONS SYSTEM

0
2. Amend section 1.109 by--
0
a. Removing from paragraph (a) ``(CPI) for all-urban consumers'' and 
adding ``for All Urban Consumers (CPI-U)'' in its place;
0
b. Redesignating paragraph (d) as paragraph (e);
0
c. Adding new paragraph (d); and
0
d. Removing from the newly designated paragraph (e) ``2014-022'' and 
adding ``2014-022, open the docket folder, and go to the supporting 
documents file'' in its place.
    The addition reads as follows:


1.109   Statutory acquisition-related dollar thresholds--adjustment for 
inflation.

* * * * *
    (d) The statute, as amended by section 821 of the National Defense 
Authorization Act for Fiscal Year 2018 (Pub. L. 115-91), requires the 
adjustment described in paragraph (a) of this section be applied to 
contracts and subcontracts without regard to the date of award of the 
contract or subcontract. Therefore, if a threshold is adjusted for 
inflation as set forth in paragraph (a) of this section, then the 
changed threshold applies throughout the remaining term of the 
contract, unless there is a subsequent threshold adjustment.
* * * * *

0
3. Amend section 1.110 in the table in paragraph (c) by designating the 
table as table 1 and revising the entry for

[[Page 27090]]

``Walsh-Healey Public Contracts Act'' to read as follows:


1.110   Positive law codification.

* * * * *
    (c) * * *

                        Table 1 to Paragraph (c)
------------------------------------------------------------------------
                                Division/chapter/
    Historical title of act         subchapter             Title
------------------------------------------------------------------------
 
                              * * * * * * *
Walsh-Healey Public Contracts   41 U.S.C. chapter  Contracts for
 Act.                            65.                Materials, Supplies,
                                                    Articles, and
                                                    Equipment Exceeding
                                                    $10,000.
------------------------------------------------------------------------

* * * * *

PART 5--PUBLICIZING CONTRACT ACTIONS


5.206   [Amended]

0
4. Amend section 5.206 by removing from paragraph (a)(1) and (2) 
``$150,000'' and adding ``the simplified acquisition threshold'' in 
their places, respectively.

PART 8--REQUIRED SOURCES OF SUPPLIES AND SERVICES


8.1104   [Amended]

0
5. Amend section 8.1104 by removing from paragraph (e)(3) ``Exceeding 
$15,000''.

PART 9--CONTRACTOR QUALIFICATIONS

0
6. Amend section 9.405-2 by revising the second sentence in the 
introductory text of paragraph (b) to read as follows:


9.405-2   Restrictions on subcontracting.

* * * * *
    (b) * * * Contractors are prohibited from entering into any 
subcontract in excess of $35,000, other than a subcontract for a 
commercially available off-the-shelf item, with a contractor that has 
been debarred, suspended, or proposed for debarment, unless there is a 
compelling reason to do so. * * *
* * * * *

PART 12--ACQUISITION OF COMMERCIAL ITEMS


12.503   [Amended]

0
7. Amend section 12.503 by removing from paragraph (a)(1) ``$15,000'' 
and adding ``$10,000'' in its place.


12.504   [Amended]

0
8. Amend section 12.504 by removing from paragraph (a)(4) ``6505'' and 
``$15,000'' and adding ``chapter 65'' and ``$10,000'' in their places, 
respectively.

PART 13--SIMPLIFIED ACQUISITION PROCEDURES

0
9. Amend section 13.003 by revising paragraph (b)(1) to read as 
follows:


13.003   Policy.

* * * * *
    (b)(1) Acquisitions of supplies or services that have an 
anticipated dollar value above the micro-purchase threshold, but at or 
below the simplified acquisition threshold, shall be set aside for 
small business concerns (see 19.000, 19.203, and subpart 19.5).
* * * * *


13.501   [Amended]

0
10. Amend section 13.501 by removing from paragraph (a)(2)(i) 
``$150,000'' and adding ``the simplified acquisition threshold'' in its 
place.

PART 15--CONTRACTING BY NEGOTIATION

0
11. Amend section 15.403-4 by adding in the introductory text of 
paragraph (a)(1) a new fourth sentence to read as follows:


15.403-4   Requiring certified cost or pricing data (10 U.S.C. 2306a 
and 41 U.S.C. chapter 35).

    (a)(1) * * * When a clause refers to this threshold, and if the 
threshold is adjusted for inflation pursuant to 1.109(a), then pursuant 
to 1.109(d) the changed threshold applies throughout the remaining term 
of the contract, unless there is a subsequent threshold adjustment. * * 
*
* * * * *

PART 19--SMALL BUSINESS PROGRAMS

0
12. Amend section 19.203 by revising paragraph (b) to read as follows:


19.203   Relationship among small business programs.

* * * * *
    (b) At or below the simplified acquisition threshold. For 
acquisitions of supplies or services that have an anticipated dollar 
value above the micro-purchase threshold, but at or below the 
simplified acquisition threshold, the requirement at 19.502-2(a) to set 
aside acquisitions for small business concerns does not preclude the 
contracting officer from awarding a contract to a small business under 
the 8(a) Program, HUBZone Program, SDVOSB Program, or WOSB Program.
* * * * *

0
13. Amend section 19.502-1 by revising paragraph (b) to read as 
follows:


19.502-1   Requirements for setting aside acquisitions.

* * * * *
    (b) The requirement in paragraph (a) of this section does not apply 
to purchases at or below the micro-purchase threshold, or purchases 
from required sources under part 8 (e.g., Committee for Purchase From 
People Who are Blind or Severely Disabled).

0
14. Amend section 19.502-2 by revising the second sentence of paragraph 
(a) and removing from paragraph (b) introductory text ``$150,000'' and 
adding ``the simplified acquisition threshold'' in its place to read as 
follows:


19.502-2   Total small business set-asides.

    (a) * * * Each acquisition of supplies or services that has an 
anticipated dollar value above the micro-purchase threshold, but not 
over the simplified acquisition threshold, shall be set aside for small 
business unless the contracting officer determines there is not a 
reasonable expectation of obtaining offers from two or more responsible 
small business concerns that are competitive in terms of fair market 
prices, quality, and delivery. * * *
* * * * *


19.507   [Amended]

0
15. Amend section 19.507 by removing from the first sentence in 
paragraph (e) ``$150,000'' and adding ``the simplified acquisition 
threshold'' in its place.

PART 22--APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS


22.102-2   [Amended]

0
16. Amend section 22.102-2 by removing from paragraph (c)(1)(iv) 
``$15,000'' and adding ``$10,000'' in its place.

[[Page 27091]]

22.202   [Amended]

0
17. Amend section 22.202 by removing from paragraph (a) ``, Contracts 
for Materials, Supplies, Articles, and Equipment Exceeding $15,000''.


22.305   [Amended]

0
18. Amend section 22.305 by removing from paragraph (e) ``, Contracts 
for Materials, Supplies, Articles, and Equipment Exceeding $15,000''.

0
19. Amend subpart 22.6 by revising the subpart heading to read as 
follows:

Subpart 22.6--Contracts for Materials, Supplies, Articles, and 
Equipment


22.602   [Amended]

0
20. Amend section 22.602 by removing ``, Contracts for Materials, 
Supplies, Articles, and Equipment Exceeding $15,000''.


22.610   [Amended]

0
21. Amend section 22.610 by removing ``Exceeding $15,000''.


22.1003-3   [Amended]

0
22. Amend section 22.1003-3 by removing from paragraph (b) ``, 
Contracts for Materials, Supplies, Articles, and Equipment Exceeding 
$15,000''.


22.1003-6   [Amended]

0
23. Amend section 22.1003-6(a) introductory text by:
0
a. Removing ``, Contracts for Materials, Supplies, Articles, and 
Equipment Exceeding $15,000,''; and
0
b. Removing ``paragraphs (a)(1) or (a)(2) of this subsection'' and 
adding ``paragraph (a)(1) or (2) of this section'' in its place.

PART 25--FOREIGN ACQUISITION


25.703-4   [Amended]

0
24. Amend section 25.703-4 by removing from paragraphs (c)(5)(ii), 
(c)(7)(iii), and (c)(8)(iii) ``$3,500'' and adding ``the threshold at 
25.703-2(a)(2)'' in their places, respectively.

PART 30--COST ACCOUNTING STANDARDS ADMINISTRATION

0
25. Revise section 30.201-1 to read as follows:


30.201-1   CAS applicability.

    (a) See 48 CFR 9903.201-1 (FAR appendix).
    (b) In accordance with 41 U.S.C. 1502(b)(1)(B), the threshold for 
determining the tentative applicability of CAS at the contract level is 
the amount set forth in 10 U.S.C. 2306a(a)(1)(A)(i), as adjusted for 
inflation in accordance with 41 U.S.C. 1908.

PART 50--EXTRAORDINARY CONTRACTUAL ACTIONS AND THE SAFETY ACT


50.103-7   [Amended]

0
26. Amend section 50.103-7 by removing from paragraph (b) ``Exceeding 
$15,000''.

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

0
27. Amend section 52.202-1 by--
0
a. Revising the date of the clause;
0
b. Removing the word ``or'' at the end of paragraph (c);
0
c. Removing from paragraph (d) ``FAR Part'' and ``procedures.'' and 
adding ``FAR part'' and ``procedures; or'' in their places, 
respectively; and
0
d. Adding paragraph (e).
    The revision and addition read as follows:


52.202-1  Definitions.

* * * * *

Definitions (JUN 2020)

* * * * *
    (e) The word or term defines an acquisition-related threshold, 
and if the threshold is adjusted for inflation as set forth in FAR 
1.109(a), then the changed threshold applies throughout the 
remaining term of the contract, unless there is a subsequent 
threshold adjustment; see FAR 1.109(d).
* * * * *

0
28. Amend section 52.203-6 by revising the date of the clause and 
removing from paragraph (c) ``threshold.'' and adding ``threshold, as 
defined in Federal Acquisition Regulation 2.101 on the date of 
subcontract award.'' in its place to read as follows:


52.203-6   Restrictions on Subcontractor Sales to the Government.

* * * * *

Restrictions on Subcontractor Sales to the Government (JUN 2020)

* * * * *

0
29. Amend section 52.203-7 by revising the date of the clause and 
paragraph (c)(5) and adding an undesignated parenthetical phrase at the 
end to read as follows:


52.203-7   Anti-Kickback Procedures.

* * * * *

Anti-Kickback Procedures (JUN 2020)

* * * * *
    (c) * * *
    (5) The Contractor agrees to incorporate the substance of this 
clause, including this paragraph (c)(5) but excepting paragraph 
(c)(1) of this clause, in all subcontracts under this contract that 
exceed the threshold specified in Federal Acquisition Regulation 
3.502-2(i) on the date of subcontract award.


(End of clause)


0
30. Amend section 52.203-12 by revising the date of the clause, the 
first sentence of paragraph (g)(1), and paragraph (g)(3) to read as 
follows:


52.203-12   Limitation on Payments to Influence Certain Federal 
Transactions.

* * * * *

Limitation on Payments To Influence Certain Federal Transactions (JUN 
2020)

* * * * *
    (g) * * * (1) The Contractor shall obtain a declaration, 
including the certification and disclosure in paragraphs (c) and (d) 
of the provision at FAR 52.203-11, Certification and Disclosure 
Regarding Payments to Influence Certain Federal Transactions, from 
each person requesting or receiving a subcontract under this 
contract that exceeds the threshold specified in FAR 3.808 on the 
date of subcontract award.* * *
* * * * *
    (3) The Contractor shall include the substance of this clause, 
including this paragraph (g), in any subcontract that exceeds the 
threshold specified in FAR 3.808 on the date of subcontract award.
* * * * *

0
31. Amend section 52.203-13 by revising the date of the clause and 
removing from paragraph (d)(1) ``have a value in excess of $5.5 
million'' and adding ``exceed the threshold specified in FAR 3.1004(a) 
on the date of subcontract award'' in its place to read as follows:


52.203-13   Contractor Code of Business Ethics and Conduct.

* * * * *

Contractor Code of Business Ethics and Conduct (JUN 2020)

* * * * *

0
32. Amend section 52.203-14 by revising the date of the clause and the 
introductory text of paragraph (d) to read as follows:


52.203-14  Display of Hotline Poster(s).

* * * * *

Display of Hotline Poster(s) (JUN 2020)

* * * * *
    (d) Subcontracts. The Contractor shall include the substance of 
this clause, including this paragraph (d), in all subcontracts that 
exceed the threshold specified in Federal Acquisition Regulation 
3.1004(b)(1) on the date of subcontract award, except when the 
subcontract--
* * * * *

0
33. Amend section 52.203-16 by revising the date of the clause, the

[[Page 27092]]

heading of paragraph (d), and paragraph (d)(1) to read as follows:


52.203-16   Preventing Personal Conflicts of Interest.

* * * * *

Preventing Personal Conflicts of Interest (JUN 2020)

* * * * *
    (d) Subcontracts. * * *
    (1) That exceed the simplified acquisition threshold, as defined 
in Federal Acquisition Regulation 2.101 on the date of subcontract 
award; and
* * * * *

0
34. Amend section 52.203-17 by--
0
a. Revising the date of the clause;
0
b. Removing from paragraph (a) ``FAR 3.908'' and adding ``Federal 
Acquisition Regulation (FAR) 3.908'' in its place;
0
c. Removing from paragraph (b) ``section 3.908 of the Federal 
Acquisition Regulation'' and adding ``FAR 3.908'' in its place; and
0
d. Removing from paragraph (c) ``threshold.'' and adding ``threshold, 
as defined in FAR 2.101 on the date of subcontract award.'' in its 
place.
    The revision reads as follows:


52.203-17   Contractor Employee Whistleblower Rights and Requirement To 
Inform Employees of Whistleblower Rights.

* * * * *

Contractor Employee Whistleblower Rights and Requirement To Inform 
Employees of Whistleblower Rights (JUN 2020)

* * * * *

0
35. Amend section 52.204-10 by--
0
a. Revising the date of the clause;
0
b. Removing from paragraph (d)(1) introductory text ``FAR provision'' 
and adding ``Federal Acquisition Regulation (FAR) provision'' in its 
place;
0
c. Removing from paragraph (d)(2) introductory text ``contracting 
officer'' and ``with a value of $30,000 or more'' and adding 
``Contracting Officer'' and ``valued at or above the threshold 
specified in FAR 4.1403(a) on the date of subcontract award'' in their 
places, respectively;
0
d. Removing from paragraph (d)(3) introductory text ``with a value of 
$30,000 or more'' and adding ``valued at or above the threshold 
specified in FAR 4.1403(a) on the date of subcontract award'' in its 
place; and
0
e. Removing from paragraph (e) ``less than $30,000'' and adding ``below 
the threshold specified in FAR 4.1403(a), on the date of subcontract 
award,'' in its place.
    The revision reads as follows:


52.204-10   Reporting Executive Compensation and First-Tier Subcontract 
Awards.

* * * * *

Reporting Executive Compensation and First-Tier Subcontract Awards (JUN 
2020)

* * * * *

0
36. Amend section 52.209-6 by--
0
a. Revising the date of the clause;
0
b. Removing from paragraph (a)(1)(i) ``FAR'' and adding ``Federal 
Acquisition Regulation (FAR)'' in its place;
0
c. Removing from paragraphs (b) and (c) ``$35,000'' and adding ``the 
threshold specified in FAR 9.405-2(b) on the date of subcontract 
award,'' and ``the threshold specified in FAR 9.405-2(b) on the date of 
subcontract award'' in their places, respectively; and
0
d. Revising paragraph (e)(1).
    The revisions read as follows:


52.209-6   Protecting the Government's Interest When Subcontracting 
With Contractors Debarred, Suspended, or Proposed for Debarment.

* * * * *

Protecting the Government's Interest When Subcontracting With 
Contractors Debarred, Suspended, or Proposed for Debarment (JUN 2020)

* * * * *
    (e) * * *
    (1) Exceeds the threshold specified in FAR 9.405-2(b) on the date 
of subcontract award; and
* * * * *

0
37. Amend section 52.210-1 by--
0
a. Revising the date of the clause;
0
b. In paragraph (a), removing from the definition of ``Commercial 
item'' and ``nondevelopmental item'' the word ``Regulation'' and adding 
``Regulation (FAR)'' in its place; and
0
c. Removing from the introductory text of paragraph (b) ``threshold'' 
and adding ``threshold, as defined in FAR 2.101 on the date of 
subcontract award,'' in its place.
    The revision reads as follows:


52.210-1   Market Research.

* * * * *

Market Research (JUN 2020)

* * * * *

0
38. Amend section 52.212-1 by revising the date of the clause and the 
first and fifth sentences of paragraph (j) to read as follows:


52.212-1  Instructions to Offerors--Commercial Items.

* * * * *

Instructions to Offerors--Commercial Items (JUN 2020)

* * * * *
    (j) * * * (Applies to all offers that exceed the micro-purchase 
threshold, and offers at or below the micro-purchase threshold if 
the solicitation requires the Contractor to be registered in the 
System for Award Management (SAM).) * * * The suffix is assigned at 
the discretion of the Offeror to establish additional SAM records 
for identifying alternative EFT accounts (see FAR subpart 32.11) for 
the same entity.* * *
* * * * *

0
39. Amend section 52.212-3 by--
0
a. Revising the date of the clause; and
0
b. Removing from paragraph (o)(2)(iii) ``$3,500'' and adding ``the 
threshold at FAR 25.703-2(a)(2)'' in its place.
    The revision reads as follows:


52.212-3   Offeror Representations and Certifications--Commercial 
Items.

* * * * *

Offeror Representations and Certifications--Commercial Items (JUN 2020)

* * * * *

0
40. Amend section 52.212-5 by--
0
a. Revising paragraphs (b)(1), (2), (4), and (8), (b)(17)(i), (iv), and 
(v), (b)(31)(i), (b)(32)(i), (b)(33) and (44), and (c)(9);
0
b. Removing from paragraph (d) introductory text ``threshold'' and 
adding ``threshold, as defined in FAR 2.101, on the date of award of 
this contract'' in its place;
0
c. Revising paragraph (e)(1)(i);
0
d. Removing from paragraph (e)(1)(v) ``$700,000 ($1.5 million for 
construction of any public facility)'' and adding ``the applicable 
threshold specified in FAR 19.702(a) on the date of subcontract award'' 
in its place;
0
e. Revising paragraphs (e)(1)(i) through (x) and the first sentence of 
paragraph (xxi); and
0
f. In Alternate II, revising the date of the alternate, paragraphs 
(e)(1)(ii)(A), (E), (H), and (I), and the first sentence of paragraph 
(e)(1)(ii)(T).
    The revisions read as follows:


52.212-5   Contract Terms and Conditions Required To Implement Statutes 
or Executive Orders--Commercial Items.

* * * * *
    (b) * * *
    __(1) 52.203-6, Restrictions on Subcontractor Sales to the 
Government (JUN 2020), with Alternate I (OCT 1995) (41 U.S.C. 4704 and 
10 U.S.C. 2402).
    __(2) 52.203-13, Contractor Code of Business Ethics and Conduct 
(JUN 2020) (41 U.S.C. 3509).
* * * * *
    __(4) 52.204-10, Reporting Executive Compensation and First-Tier 
Subcontract Awards (JUN 2020) (Pub. L. 109-282) (31 U.S.C. 6101 note).
* * * * *
    __(8) 52.209-6, Protecting the Government's Interest When

[[Page 27093]]

Subcontracting with Contractors Debarred, Suspended, or Proposed for 
Debarment. (JUN 2020) (31 U.S.C. 6101 note).
* * * * *
    __(17)(i) 52.219-9, Small Business Subcontracting Plan (JUN 2020) 
(15 U.S.C. 637(d)(4)).
* * * * *
    __(iv) Alternate III (JUN 2020) of 52.219-9.
    __(v) Alternate IV (JUN 2020) of 52.219-9.
* * * * *
    __(31)(i) 52.222-35, Equal Opportunity for Veterans (JUN 2020) (38 
U.S.C. 4212).
* * * * *
    __(32)(i) 52.222-36, Equal Opportunity for Workers with 
Disabilities (JUN 2020) (29 U.S.C. 793).
* * * * *
    __(33) 52.222-37, Employment Reports on Veterans (JUN 2020) (38 
U.S.C. 4212).
* * * * *
    __(44) 52.223-18, Encouraging Contractor Policies to Ban Text 
Messaging While Driving (JUN 2020) (E.O. 13513).
* * * * *
    (c) * * *
    __(9) 52.226-6, Promoting Excess Food Donation to Nonprofit 
Organizations (JUN 2020) (42 U.S.C. 1792).
* * * * *
    (e)(1) * * *
    (i) 52.203-13, Contractor Code of Business Ethics and Conduct (JUN 
2020) (41 U.S.C. 3509).
* * * * *
    (viii) 52.222-35, Equal Opportunity for Veterans (JUN 2020) (38 
U.S.C. 4212).
    (ix) 52.222-36, Equal Opportunity for Workers with Disabilities 
(JUN 2020) (29 U.S.C. 793).
    (x) 52.222-37, Employment Reports on Veterans (JUN 2020) (38 U.S.C. 
4212).
* * * * *
    (xxi) 52.226-6, Promoting Excess Food Donation to Nonprofit 
Organizations (JUN 2020) (42 U.S.C. 1792). * * *
* * * * *

Alternate II (JUN 2020). * * *

* * * * *
    (e)(1) * * *
    (ii) * * * * *
    (A) 52.203-13, Contractor Code of Business Ethics and Conduct (JUN 
2020) (41 U.S.C. 3509).
* * * * *
    (E) 52.219-8, Utilization of Small Business Concerns (OCT 2018) (15 
U.S.C. 637(d)(2) and (3)), in all subcontracts that offer further 
subcontracting opportunities. If the subcontract (except subcontracts 
to small business concerns) exceeds the applicable threshold specified 
in FAR 19.702(a) on the date of subcontract award, the subcontractor 
must include 52.219-8 in lower tier subcontracts that offer 
subcontracting opportunities.
* * * * *
    (H) 52.222-35, Equal Opportunity for Veterans (JUN 2020) (38 U.S.C. 
4212).
    (I) 52.222-36, Equal Opportunity for Workers with Disabilities (JUN 
2020) (29 U.S.C. 793).
* * * * *
    (T) 52.226-6, Promoting Excess Food Donation to Nonprofit 
Organizations. (JUN 2020) (42 U.S.C. 1792). * * *
* * * * *

0
41. Amend section 52.213-4 by--
0
a. Revising the date of the clause;
0
b. Adding a period to the end of paragraph (a)(2)(iv);
0
c. Revising paragraphs (a)(2)(viii) and (b)(1)(i) through (iv), the 
first sentence of paragraph (b)(1)(v), and paragraph (b)(1)(vi);
0
d. Removing from paragraph (b)(1)(xvii) introductory text ``threshold'' 
and adding ``threshold, as defined in FAR 2.101 on the date of award of 
this contract,'' in its place; and
0
e. Revising paragraphs (b)(1)(xviii) and (b)(2)(ii).
    The revisions read as follows:


52.213-4   Terms and Conditions--Simplified Acquisitions (Other Than 
Commercial Items).

* * * * *
    Terms and Conditions--Simplified Acquisitions (Other Than 
Commercial Items) (JUN 2020)
    (a) * * *
    (2) * * *
    (viii) 52.244-6, Subcontracts for Commercial Items (JUN 2020)
    (b) * * *
    (1) * * *
    (i) 52.204-10, Reporting Executive Compensation and First-Tier 
Subcontract Awards (JUN 2020) (Pub. L. 109-282) (31 U.S.C. 6101 note) 
(Applies to contracts valued at or above the threshold specified in FAR 
4.1403(a) on the date of award of this contract).
    (ii) 52.222-19, Child Labor--Cooperation with Authorities and 
Remedies (JAN 2020) (E.O. 13126) (Applies to contracts for supplies 
exceeding the micro-purchase threshold, as defined in FAR 2.101 on the 
date of award of this contract).
    (iii) 52.222-20, Contracts for Materials, Supplies, Articles, and 
Equipment (JUN 2020) (41 U.S.C. chapter 65) (Applies to supply 
contracts over the threshold specified in FAR 22.602 on the date of 
award of this contract, in the United States, Puerto Rico, or the U.S. 
Virgin Islands).
    (iv) 52.222-35, Equal Opportunity for Veterans (JUN 2020) (38 
U.S.C. 4212) (Applies to contracts valued at or above the threshold 
specified in FAR 22.1303(a) on the date of award of this contract).
    (v) 52.222-36, Equal Employment for Workers with Disabilities (JUN 
2020) (29 U.S.C. 793) (Applies to contracts over the threshold 
specified in FAR 22.1408(a) on the date of award of this contract, 
unless the work is to be performed outside the United States by 
employees recruited outside the United States). * * *
    (vi) 52.222-37, Employment Reports on Veterans (JUN 2020)(38 U.S.C. 
4212) (Applies to contracts valued at or above the threshold specified 
in FAR 22.1303(a) on the date of award of this contract).
* * * * *
    (xviii) 52.226-6, Promoting Excess Food Donation to Nonprofit 
Organizations (JUN 2020) (42 U.S.C. 1792) (Applies to contracts greater 
than the threshold specified in FAR 26.404 on the date of award of this 
contract, that provide for the provision, the service, or the sale of 
food in the United States).
* * * * *
    (2) * * *
    (ii) 52.209-6, Protecting the Government's Interest When 
Subcontracting with Contractors Debarred, Suspended, or Proposed for 
Debarment (JUN 2020) (Applies to contracts over the threshold specified 
in FAR 9.405-2(b) on the date of award of this contract).
* * * * *

0
42. Amend section 52.214-26 by revising the date of the clause and 
paragraph (e) to read as follows:


52.214-26   Audit and Records--Sealed Bidding.

* * * * *

Audit and Records--Sealed Bidding (JUN 2020)

* * * * *
    (e) Subcontracts. The Contractor shall insert a clause 
containing all the provisions of this clause, including this 
paragraph (e), in all subcontracts expected to exceed the threshold 
for submission of certified cost or pricing data in FAR 15.403-
4(a)(1) on the date of subcontract award.
* * * * *

[[Page 27094]]


0
43. Amend section 52.214-27 by revising the date of the clause and 
paragraph (a) to read as follows:


52.214-27  Price Reduction for Defective Certified Cost or Pricing 
Data--Modifications--Sealed Bidding.

* * * * *

Price Reduction for Defective Certified Cost or Pricing Data--
Modifications--Sealed Bidding (JUN 2020)

    (a) This clause shall become operative only for any modification 
to this contract involving aggregate increases and/or decreases in 
costs, plus applicable profits, expected to exceed the threshold for 
the submission of certified cost or pricing data in Federal 
Acquisition Regulation (FAR) 15.403-4(a)(1) on the date of execution 
of the modification, except that this clause does not apply to a 
modification if an exception under FAR 15.403-1(b) applies.
* * * * *

0
44. Amend section 52.214-28 by--
0
a. Revising the date of the clause;
0
b. Removing from paragraph (a)(1) ``at (FAR) 48 CFR 15.403-4(a)(1)'' 
and adding ``in Federal Acquisition Regulation (FAR) 15.403-4(a)(1) on 
the date of execution of the modification'' in its place;
0
c. Removing from paragraph (b) ``at FAR 15.403-4(a)(1)'' everywhere it 
appears and adding ``in FAR 15.403-4(a)(1)'' in its place and adding a 
sentence to the end of the paragraph; and
0
d. Removing from paragraph (d) ``at FAR 15.403-4(a)(1)'' and adding 
``in FAR 15.403-4(a)(1)'' in its place.
    The revision and addition read as follows:


52.214-28  Subcontractor Certified Cost or Pricing Data--
Modifications--Sealed Bidding.

* * * * *

Subcontractor Certified Cost or Pricing Data--Modifications--Sealed 
Bidding (JUN 2020)

* * * * *
    (b) * * * If the threshold for submission of certified cost or 
pricing data specified in FAR 15.403-4(a)(1) is adjusted for 
inflation as set forth in FAR 1.109(a), then pursuant to FAR 
1.109(d) the changed threshold applies throughout the remaining term 
of the contract, unless there is a subsequent threshold adjustment.
* * * * *

0
45. Amend section 52.215-2 by--
0
a. Revising the date of the clause; and
0
b. Removing from paragraph (g) introductory text ``threshold'' and 
adding ``threshold, as defined in FAR 2.101 on the date of subcontract 
award,'' in its place.
    The revision reads as follows:


52.215-2  Audit and Records--Negotiation.

* * * * *

Audit and Records--Negotiation (JUN 2020)

* * * * *

0
46. Amend section 52.215-11 by revising the date of the clause and 
paragraph (a) to read as follows:


52.215-11  Price Reduction for Defective Certified Cost or Pricing 
Data--Modifications.

* * * * *

Price Reduction for Defective Certified Cost or Pricing Data--
Modifications (JUN 2020)

    (a) This clause shall become operative only for any modification 
to this contract involving a pricing adjustment expected to exceed 
the threshold for submission of certified cost or pricing data in 
Federal Acquisition Regulation (FAR) 15.403-4(a)(1) on the date of 
execution of the modification, except that this clause does not 
apply to any modification if an exception under FAR 15.403-1(b) 
applies.
* * * * *

0
47. Amend section 52.215-12 by revising the date of the clause and 
paragraphs (a) and (c) introductory text to read as follows:


52.215-12  Subcontractor Certified Cost or Pricing Data.

* * * * *

Subcontractor Certified Cost or Pricing Data (JUN 2020)

    (a) Before awarding any subcontract expected to exceed the 
threshold for submission of certified cost or pricing data in 
Federal Acquisition Regulation (FAR) 15.403-4(a)(1), on the date of 
agreement on price or the date of award, whichever is later; or 
before pricing any subcontract modification involving a pricing 
adjustment expected to exceed the threshold for submission of 
certified cost or pricing data in FAR 15.403-4(a)(1), the Contractor 
shall require the subcontractor to submit certified cost or pricing 
data (actually or by specific identification in writing), in 
accordance with FAR 15.408, Table 15-2 (to include any information 
reasonably required to explain the subcontractor's estimating 
process such as the judgmental factors applied and the mathematical 
or other methods used in the estimate, including those used in 
projecting from known data, and the nature and amount of any 
contingencies included in the price), unless an exception under FAR 
15.403-1(b) applies. If the threshold for submission of certified 
cost or pricing data specified in FAR 15.403-4(a)(1) is adjusted for 
inflation as set forth in FAR 1.109(a), then pursuant to FAR 
1.109(d) the changed threshold applies throughout the remaining term 
of the contract, unless there is a subsequent threshold adjustment.
* * * * *
    (c) In each subcontract that, when entered into, exceeds the 
threshold for submission of certified cost or pricing data in FAR 
15.403-4(a)(1), the Contractor shall insert either--
* * * * *

0
48. Amend section 52.215-13 by--
0
a. Revising the date of the clause and paragraphs (a)(1) and (b); and
0
b. Removing from paragraph (d) ``at FAR 15.403-4'' and adding ``in FAR 
15.403-4(a)(1)'' in its place.
    The revisions read as follows:


52.215-13   Subcontractor Certified Cost or Pricing Data--
Modifications.

* * * * *

Subcontractor Certified Cost or Pricing Data--Modifications (JUN 2020)

    (a) * * *
    (1) Become operative only for any modification to this contract 
involving a pricing adjustment expected to exceed the threshold for 
submission of certified cost or pricing data in Federal Acquisition 
Regulation (FAR) 15.403-4(a)(1) on the date of execution of the 
modification; and
* * * * *
    (b) Before awarding any subcontract expected to exceed the 
threshold for submission of certified cost or pricing data in FAR 
15.403-4(a)(1), on the date of agreement on price or the date of award, 
whichever is later; or before pricing any subcontract modification 
involving a pricing adjustment expected to exceed the threshold for 
submission of certified cost or pricing data in FAR 15.403-4(a)(1), the 
Contractor shall require the subcontractor to submit certified cost or 
pricing data (actually or by specific identification in writing), in 
accordance with FAR 15.408, Table 15-2 (to include any information 
reasonably required to explain the subcontractor's estimating process 
such as the judgmental factors applied and the mathematical or other 
methods used in the estimate, including those used in projecting from 
known data, and the nature and amount of any contingencies included in 
the price), unless an exception under FAR 15.403-1(b) applies. If the 
threshold for submission of certified cost or pricing data specified in 
FAR 15.403-4(a)(1) is adjusted for inflation as set forth in FAR 
1.109(a), then pursuant to FAR 1.109(d) the changed threshold applies 
throughout the remaining term of the contract, unless there is a 
subsequent threshold adjustment.
* * * * *

0
49. Amend section 52.215-14 by revising the date of the clause and 
paragraph (c) to read as follows:


52.215-14  Integrity of Unit Prices.

* * * * *

[[Page 27095]]

Integrity of Unit Prices (JUN 2020)

* * * * *
    (c) The Contractor shall insert the substance of this clause, 
less paragraph (b) of this clause, in all subcontracts for other 
than: acquisitions at or below the simplified acquisition threshold, 
as defined in Federal Acquisition Regulation (FAR) 2.101 on the date 
of subcontract award; construction or architect-engineer services 
under FAR part 36; utility services under FAR part 41; services 
where supplies are not required; commercial items; and petroleum 
products.
* * * * *

0
50. Amend section 52.215-21 by revising the date of the clause and the 
introductory text of paragraph (a)(1) to read as follows:


52.215-21  Requirements for Certified Cost or Pricing Data and Data 
Other Than Certified Cost or Pricing Data--Modifications.

* * * * *

Requirements for Certified Cost or Pricing Data and Data Other Than 
Certified Cost or Pricing Data--Modifications (JUN 2020)

    (a) * * * (1) In lieu of submitting certified cost or pricing 
data for modifications under this contract, for price adjustments 
expected to exceed the threshold set forth in Federal Acquisition 
Regulation (FAR) 15.403-4(a)(1) on the date of the agreement on 
price or the date of the award, whichever is later, the Contractor 
may submit a written request for exception by submitting the 
information described in paragraphs (a)(1)(i) and (ii) of this 
clause. If the threshold for submission of certified cost or pricing 
data specified in FAR 15.403-4(a)(1) is adjusted for inflation as 
set forth in FAR 1.109(a), then pursuant to FAR 1.109(d) the changed 
threshold applies throughout the remaining term of the contract, 
unless there is a subsequent threshold adjustment. The Contracting 
Officer may require additional supporting information, but only to 
the extent necessary to determine whether an exception should be 
granted, and whether the price is fair and reasonable--
* * * * *

0
51. Amend section 52.215-23 by--
0
a. Revising the date of the clause;
0
b. In paragraph (a), removing from the definition ``Subcontract'' the 
acronym ``FAR'' and adding ``Federal Acquisition Regulation (FAR)'' in 
its place; and
0
c. Revising paragraph (f).
    The revisions read as follows:


52.215-23  Limitations on Pass-Through Charges.

* * * * *

Limitations on Pass-Through Charges (JUN 2020)

* * * * *
    (f) Subcontracts. The Contractor shall insert the substance of 
this clause, including this paragraph (f), in all cost-reimbursement 
subcontracts under this contract that exceed the simplified 
acquisition threshold, as defined in FAR 2.101 on the date of 
subcontract award, except if the contract is with DoD, then insert 
in all cost-reimbursement subcontracts and fixed-price subcontracts, 
except those identified in FAR 15.408(n)(2)(i)(B)(2), that exceed 
the threshold for obtaining cost or pricing data in FAR 15.403-
4(a)(1) on the date of subcontract award.
* * * * *

0
52. Amend section 52.219-9 by--
0
a. Revising the date of the clause;
0
b. In paragraph (b), revising the definition of ``Commercial item'';
0
c. Removing from paragraph (d)(9) ``$700,000 ($1.5 million for 
construction of any public facility)'' and adding ``the applicable 
threshold specified in FAR 19.702(a) on the date of subcontract 
award,'' in its place;
0
d. Removing from paragraph (d)(11)(iii) introductory text ``$150,000'' 
and adding ``the simplified acquisition threshold, as defined in FAR 
2.101 on the date of subcontract award'' in its place;
0
e. Removing from the first sentence of paragraph (e)(6) ``threshold'' 
and adding ``threshold, as defined in FAR 2.101 on the date of 
subcontract award,'' in its place;
0
f. Removing from paragraph (i) ``threshold in'' and adding ``threshold 
in FAR'' in its place;
0
g. Removing from paragraph (l)(2)(i)(C) ``$700,000 (over $1.5 million 
for construction of a public facility) and'' and adding ``the 
applicable threshold specified in FAR 19.702(a), and the contract'' in 
its place;
0
h. In Alternate III--
0
i. Revising the date of the alternate; and
0
ii. Removing from paragraph (l)(2)(i)(C) ``$700,000 (over $1.5 million 
for construction of a public facility) and'' and adding ``the 
applicable threshold specified in FAR 19.702(a), and the contract'' in 
its place; and
0
i. In Alternate IV--
0
i. Revising the date of the alternate;
0
ii. Removing from paragraph (d)(9) ``$700,000 ($1.5 million for 
construction of any public facility)'' and adding ``the applicable 
threshold specified in FAR 19.702(a) on the date of subcontract 
award,'' in its place; and
0
iii. Removing from paragraph (d)(11)(iii) introductory text 
``$150,000'' and adding ``the simplified acquisition threshold, as 
defined in FAR 2.101 on the date of subcontract award'' in its place.
    The revisions read as follows:


52.219-9  Small Business Subcontracting Plan.

* * * * *

Small Business Subcontracting Plan (JUN 2020)

* * * * *
    (b) * * *
    Commercial item means a product or service that satisfies the 
definition of commercial item in Federal Acquisition Regulation 
(FAR) 2.101.
* * * * *

Alternate III (JUN 2020). * * *

* * * * *

Alternate IV (JUN 2020). * * *

* * * * *

0
53. Amend section 52.222-20 by revising the section heading, the clause 
heading, and the introductory text of the clause to read as follows:


52.222-20   Contracts for Materials, Supplies, Articles, and Equipment.

* * * * *

Contracts for Materials, Supplies, Articles, and Equipment (JUN 2020)

    If this contract is for the manufacture or furnishing of 
materials, supplies, articles or equipment in an amount that exceeds 
or may exceed the threshold specified in Federal Acquisition 
Regulation 22.602 on the date of award of this contract, and is 
subject to 41 U.S.C. chapter 65, the following terms and conditions 
apply:
* * * * *

0
54. Amend section 52.222-35 by--
0
a. Revising the date of the clause;
0
b. Removing from paragraph (a), in the definition ``Active duty wartime 
or campaign badge veteran,'' ``Armed Forces service medal veteran,'' 
``disabled veteran,'' ``protected veteran,'' ``qualified disabled 
veteran,'' and ``recently separated veteran'', the acronym ``FAR'' and 
adding ``Federal Acquisition Regulation (FAR)'' in its place; and
0
c. Removing from paragraph (c) ``of $150,000 or more'' and adding 
``valued at or above the threshold specified in FAR 22.1303(a) on the 
date of subcontract award,'' in its place.
    The revision reads as follows:


52.222-35   Equal Opportunity for Veterans.

* * * * *

Equal Opportunity for Veterans (JUN 2020)

* * * * *

0
55. Amend section 52.222-36 by--
0
a. Revising the date of the clause; and
0
b. Removing from the first sentence in paragraph (b) ``$15,000'' and 
adding ``the threshold specified in Federal Acquisition Regulation 
(FAR) 22.1408(a) on the date of subcontract award,'' in its place.
    The revision reads as follows:

[[Page 27096]]

52.222-36   Equal Opportunity for Workers with Disabilities.

* * * * *

Equal Opportunity for Workers With Disabilities (JUN 2020)

* * * * *

0
56. Amend section 52.222-37 by--
0
a. Revising the date of the clause;
0
b. Removing from paragraph (a) ``FAR'' and adding ``Federal Acquisition 
Regulation (FAR)'' in its place; and
0
c. Removing from paragraph (g) ``of $150,000 or more'' and adding 
``valued at or above the threshold specified in FAR 22.1303(a) on the 
date of subcontract award,'' in its place.
    The revision reads as follows:


52.222-37   Employment Reports on Veterans.

* * * * *

Employment Reports on Veterans (JUN 2020)

* * * * *

0
57. Amend section 52.223-18 by--
0
a. Revising the date of the clause; and
0
b. Removing from paragraph (d) ``threshold.'' and adding ``threshold, 
as defined in Federal Acquisition Regulation 2.101 on the date of 
subcontract award.'' in its place.
    The revision reads as follows:


52.223-18   Encouraging Contractor Policies to Ban Text Messaging While 
Driving.

* * * * *

Encouraging Contractor Policies To Ban Text Messaging While Driving 
(JUN 2020)

* * * * *

0
58. Amend section 52.225-25 by--
0
a. Revising the clause heading;
0
b. Removing from the introductory text of paragraph (c) ``accordance 
with'' and adding ``accordance with Federal Acquisition Regulation 
(FAR)'' in its place; and
0
c. Removing from paragraph (c)(3) ``$3,500'' and adding ``the threshold 
at FAR 25.703-2(a)(2)'' in its place.


52.225-25   Prohibition on Contracting with Entities Engaging in 
Certain Activities or Transactions Relating to Iran--Representation and 
Certifications.

* * * * *

Prohibition on Contracting With Entities Engaging in Certain Activities 
or Transactions Relating to Iran--Representation and Certifications 
(JUN 2020)

* * * * *

0
59. Amend section 52.226-6 by revising the section heading, the date of 
the clause, and paragraph (e) to read as follows:


52.226-6   Promoting Excess Food Donation to Nonprofit Organizations.

* * * * *

Promoting Excess Food Donation to Nonprofit Organizations (JUN 2020)

* * * * *
    (e) Subcontracts. The Contractor shall insert this clause in all 
contracts, task orders, delivery orders, purchase orders, and other 
similar instruments that exceed the threshold specified in Federal 
Acquisition Regulation 26.404 on the date of subcontract award with 
its subcontractors or suppliers, at any tier, who will perform, 
under this contract, the provision, service, or sale of food in the 
United States.
* * * * *

0
60. Amend section 52.227-1 by revising the date of the clause and 
paragraph (b) to read as follows:


52.227-1   Authorization and Consent.

* * * * *

Authorization and Consent (JUN 2020)

* * * * *
    (b) The Contractor shall include the substance of this clause, 
including this paragraph (b), in all subcontracts that are expected 
to exceed the simplified acquisition threshold, as defined in 
Federal Acquisition Regulation (FAR) 2.101 on the date of 
subcontract award. However, omission of this clause from any 
subcontract, including those at or below the simplified acquisition 
threshold, as defined in FAR 2.101 on the date of subcontract award, 
does not affect this authorization and consent.
* * * * *

0
61. Amend section 52.227-2 by revising the date of the clause and 
paragraph (c) to read as follows:


52.227-2   Notice and Assistance Regarding Patent and Copyright 
Infringement.

* * * * *

Notice and Assistance Regarding Patent and Copyright Infringement (JUN 
2020)

* * * * *
    (c) The Contractor shall include the substance of this clause, 
including this paragraph (c), in all subcontracts that are expected 
to exceed the simplified acquisition threshold, as defined in 
Federal Acquisition Regulation (FAR) 2.101 on the date of 
subcontract award.
* * * * *

0
62. Amend section 52.227-3 in Alternate III by revising the date of the 
alternate and removing from the undesignated paragraph ``threshold'' 
and adding ``threshold, as defined in Federal Acquisition Regulation 
2.101 on the date of subcontract award,'' in its place to read as 
follows:


52.227-3   Patent Indemnity.

* * * * *

Alternate III (JUN 2020). * * *

* * * * *

0
63. Amend section 52.228-15 by revising the date of the clause and the 
introductory text of paragraph (b) to read as follows:


52.228-15   Performance and Payment Bonds--Construction.

* * * * *

Performance and Payment Bonds--Construction (JUN 2020)

* * * * *
    (b) Amount of required bonds. Unless the resulting contract 
price is valued at or below the threshold specified in Federal 
Acquisition Regulation 28.102-1(a) on the date of award of this 
contract, the successful offeror shall furnish performance and 
payment bonds to the Contracting Officer as follows:
* * * * *

0
64. Amend section 52.230-1 by--
0
a. Revising the introductory text and the date of the provision;
0
b. Removing from paragraph (a) ``$750,000'' and ``Chapter'' and adding 
``the lower CAS threshold specified in Federal Acquisition Regulation 
(FAR) 30.201-4(b)'' and ``chapter'' in their places, respectively; and
0
d. Revising the undesignated parenthetical paragraph following 
paragraph (c)(1).
    The revisions read as follows:


52.230-1  Cost Accounting Standards Notices and Certification.

    As prescribed in 30.201-3(a), insert the following provision:

Cost Accounting Standards Notices and Certification (JUN 2020)

* * * * *
    (c) * * *
    (Disclosure must be on Form No. CASB DS-1 or CASB DS-2, as 
applicable. Forms may be obtained from the cognizant ACO or Federal 
official.)
* * * * *

0
65. Amend section 52.230-2 by--
0
a. Revising the date of the clause; and
0
b. Removing from paragraph (d) ``Regulation shall'' and ``$750,000'' 
and adding ``Regulation (FAR) shall'' and ``the lower CAS threshold 
specified in FAR 30.201-4(b) on the date of subcontract award'' in 
their places, respectively.
    The revision read as follows:


52.230-2  Cost Accounting Standards.

* * * * *

Cost Accounting Standards (JUN 2020)

* * * * *

0
66. Amend section 52.230-3 by--
0
a. Revising the date of the clause;
0
b. Removing from paragraph (d)(1) ``subsection'' and ``Regulation 
shall''

[[Page 27097]]

and adding ``section'' and ``Regulation (FAR) shall'' in their places, 
respectively; and
0
c. Revising paragraph (d)(2).
    The revisions read as follows:


52.230-3  Disclosure and Consistency of Cost Accounting Practices.

* * * * *

Disclosure and Consistency of Cost Accounting Practices (JUN 2020)

* * * * *
    (d) * * *
    (2) The requirement in this paragraph (d) shall apply only to 
negotiated subcontracts in excess of the lower CAS threshold 
specified in FAR 30.201-4(b) on the date of subcontract award.
* * * * *

0
67. Amend section 52.230-4 by--
0
a. Revising the date of the clause;
0
b. Removing from paragraph (d)(1) ``FAR'' and adding ``Federal 
Acquisition Regulation (FAR)'' in its place; and
0
c. Revising paragraph (d)(2).
    The revisions read as follows:


52.230-4   Disclosure and Consistency of Cost Accounting Practices--
Foreign Concerns.

* * * * *

Disclosure and Consistency of Cost Accounting Practices--Foreign 
Concerns (JUN 2020)

* * * * *
    (d) * * *
    (2) The requirement in this paragraph (d) shall apply only to 
negotiated subcontracts in excess of the lower CAS threshold 
specified in FAR 30.201-4(b) on the date of subcontract award.
* * * * *

0
68. Amend section 52.230-5 by revising the date of the clause and 
paragraph (d)(2) to read as follows:


52.230-5  Cost Accounting Standards--Educational Institution.

* * * * *

Cost Accounting Standards--Educational Institution (JUN 2020)

* * * * *
    (d) * * *
    (2) The requirement in this paragraph (d) shall apply only to 
negotiated subcontracts in excess of the lower CAS threshold 
specified in Federal Acquisition Regulation (FAR) 30.201-4(b) on the 
date of subcontract award; and
* * * * *

0
69. Amend section 52.232-16 by--
0
a. Revising the date of the clause;
0
b. Removing from paragraph (a)(1) ``FAR'' and adding ``Federal 
Acquisition Regulation (FAR)'' in its place; and
0
c. In Alternate III--
0
i. Revising the date of the alternate; and
0
ii. Removing from paragraph (n) ``threshold.'' and adding ``threshold, 
as defined in FAR 2.101 on the date of individual order award.'' in its 
place.
    The revisions read as follows:


52.232-16   Progress Payments.

* * * * *

Progress Payments (JUN 2020)

* * * * *

Alternate III (JUN 2020). * * *

* * * * *

0
70. Amend section 52.244-2 by--
0
a. Revising the date of the clause;
0
b. Removing from paragraphs (c)(2)(i) and (ii) ``threshold'' and adding 
``threshold, as defined in FAR 2.101 on the date of subcontract 
award,'' in their places; and
0
c. In Alternate I--
0
i. Revising the date of the alternate; and
0
ii. Removing from paragraph (e)(2) ``threshold'' and ``paragraphs 
(e)(1)(i) through (e)(1)(iv)'' and adding ``threshold, as defined in 
FAR 2.101 on the date of subcontract award,'' and ``paragraphs 
(e)(1)(i) through (iv)'' in their places, respectively.
    The revisions read as follows:


52.244-2   Subcontracts.

* * * * *

Subcontracts (JUN 2020)

* * * * *

Alternate I (JUN 2020). * * *

* * * * *

0
71. Amend section 52.244-6 by--
0
a. Revising the date of the clause;
0
b. In paragraph (a), revising the definition ``Commercial item'' and 
``commercially available off-the-shelf item'';
0
c. Revising the first sentence in paragraph (c)(1)(i);
0
d. Removing from paragraph (c)(1)(vii) ``$700,000 ($1.5 million for 
construction of any public facility)'' and adding ``the applicable 
threshold specified in FAR 19.702(a) on the date of subcontract award'' 
in its place; and
0
e. Revising paragraphs (c)(1)(x), (xi), and (xii).
    The revisions read as follows:


52.244-6   Subcontracts for Commercial Items.

* * * * *

Subcontracts for Commercial Items (JUN 2020)

    (a) * * *
    Commercial item and commercially available off-the-shelf item 
have the meanings contained in Federal Acquisition Regulation (FAR) 
2.101.
* * * * *
    (c)(1) * * *
    (i) 52.203-13, Contractor Code of Business Ethics and Conduct 
(Jun 2020) (41 U.S.C. 3509), if the subcontract exceeds the 
threshold specified in FAR 3.1004(a) on the date of subcontract 
award, and has a performance period of more than 120 days. * * *
* * * * *
    (x) 52.222-35, Equal Opportunity for Veterans (Jun 2020) (38 
U.S.C. 4212(a)).
    (xi) 52.222-36, Equal Opportunity for Workers with Disabilities 
(Jun 2020) (29 U.S.C. 793).
    (xii) 52.222-37, Employment Reports on Veterans (Jun 2020) (38 
U.S.C. 4212).
* * * * *

0
72. Amend section 52.246-26 by--
0
a. Revising the date of the clause; and
0
b. Removing from paragraph (g)(1)(iii) ``threshold'' and adding 
``threshold, as defined in FAR 2.101 on the date of subcontract 
award,'' in its place.
    The revision reads as follows:


52.246-26   Reporting Nonconforming Items.

* * * * *

Reporting Nonconforming Items (JUNE 2020)

* * * * *

0
73. Amend section 52.248-1 by--
0
a. Revising the date of the clause;
0
b. Removing from paragraph (i)(5) ``subsection'' and ``Regulation'' and 
adding ``section'' and ``Regulation (FAR)'' in their places, 
respectively; and
0
c. Revising the first sentence of paragraph (1).
    The revisions read as follows:


52.248-1   Value Engineering.

* * * * *

Value Engineering (JUN 2020)

* * * * *
    (l) Subcontracts. The Contractor shall include an appropriate 
value engineering clause in any subcontract-valued at or above the 
simplified acquisition threshold, as defined in FAR 2.101 on the 
date of subcontract award, and may include one in subcontracts of 
lesser value. * * *
* * * * *
[FR Doc. 2020-07109 Filed 5-5-20; 8:45 am]
 BILLING CODE 6820-EP-P