Federal Acquisition Regulation: Inflation Adjustment of Acquisition-Related Thresholds, 39146-39151 [2020-13334]
Download as PDF
<![CDATA[
39146
Federal Register / Vol. 85, No. 126 / Tuesday, June 30, 2020 / Proposed Rules
DEPARTMENT OF DEFENSE
GENERAL SERVICES
ADMINISTRATION
NATIONAL AERONAUTICS AND
SPACE ADMINISTRATION
48 CFR Parts 1, 2, 3, 5, 6, 8, 9, 10, 12,
13, 15, 16, 17, 19, 22, 26, 28, 32, 36, 42,
50, 52, and 53
[FAR Case 2019–013, Docket No. FAR–
2019–0013, Sequence No. 1]
RIN 9000—AN96
Federal Acquisition Regulation:
Inflation Adjustment of AcquisitionRelated Thresholds
Department of Defense (DoD),
General Services Administration (GSA),
and National Aeronautics and Space
Administration (NASA).
ACTION: Proposed rule.
AGENCY:
DoD, GSA, and NASA are
proposing to amend the Federal
Acquisition Regulation (FAR) to further
implement the statute which requires an
adjustment every five years of statutory
acquisition-related thresholds for
inflation. The adjustment uses the
Consumer Price Index for all urban
consumers, and does not apply to the
Construction Wage Rate Requirements
statute (Davis-Bacon Act), Service
Contract Labor Standards statute, and
trade agreements thresholds. DoD, GSA,
and NASA are also proposing to use the
same methodology to adjust
nonstatutory FAR acquisition-related
thresholds in 2020.
DATES: Interested parties should submit
written comments at the address shown
below on or before August 31, 2020 to
be considered in the formation of the
final rule.
ADDRESSES: Submit comments in
response to FAR case 2019–013 to
https://www.regulations.gov. Submit
comments via the Federal eRulemaking
portal by searching for ‘‘FAR Case 2019–
013’’. Select the link ‘‘Comment Now’’
that corresponds with FAR Case 2019–
013. Follow the instructions provided at
the ‘‘Comment Now’’ screen. Please
include your name, company name (if
any), and ‘‘FAR Case 2019–013’’ on your
attached document. If your comment
cannot be submitted using https://
www.regulations.gov, call or email the
points of contact in the FOR FURTHER
INFORMATION CONTACT section of this
document for alternate instructions.
Instructions: Please submit comments
only and cite FAR Case 2019–013, in all
correspondence related to this case.
Comments received generally will be
khammond on DSKJM1Z7X2PROD with PROPOSALS
SUMMARY:
VerDate Sep<11>2014
16:34 Jun 29, 2020
Jkt 250001
posted without change to https://
www.regulations.gov, including any
personal and/or business confidential
information provided. To confirm
receipt of your comment(s), please
check https://www.regulations.gov,
approximately two to three days after
submission to verify posting.
FOR FURTHER INFORMATION CONTACT: Mr.
Michael O. Jackson, Procurement
Analyst, at 202–208–4949, or by email
at michaelo.jackson@gsa.gov, for
clarification of content. For information
pertaining to status or publication
schedules, contact the Regulatory
Secretariat Division at 202–501–4755 or
GSARegSec@gsa.gov. Please cite FAR
case 2019–013.
SUPPLEMENTARY INFORMATION:
I. Background
This rule proposes to amend multiple
FAR parts to further implement 41
U.S.C. 1908. Section 1908 requires an
adjustment every five years (on October
1 of each year evenly divisible by five)
of statutory acquisition-related
thresholds for inflation, using the
Consumer Price Index (CPI) for all urban
consumers, except for the Construction
Wage Rate Requirements statute (DavisBacon Act), Service Contract Labor
Standards statute, and trade agreements
thresholds (see FAR 1.109). As a matter
of policy, DoD, GSA, and NASA are also
proposing to use the same methodology
to adjust nonstatutory FAR acquisitionrelated thresholds on October 1, 2020.
DoD, GSA, and NASA have published
two proposed rules and one final rule
that will reduce the complexity and
impact of the October 1, 2020, threshold
adjustments throughout the FAR. The
changes implemented through these
rules significantly reduce the number of
cite-specific inflation adjustments in the
FAR and associated matrix.
FAR Case 2018–004, published as a
proposed rule on October 2, 2019 (84 FR
52420) will implement section 217(b) of
the National Defense Authorization Act
(NDAA) for Fiscal Year (FY) 2017 (Pub.
L. 114–328) and sections 805, 806, and
1702(a) of the NDAA for FY 2018 (Pub.
L. 115–91), to increase the micropurchase threshold (MPT) and
simplified acquisition thresholds (SAT)
throughout the FAR. The case also
changes some stated dollar thresholds to
text to ensure continued alignment with
the value defined in FAR subpart 2.101.
FAR Case 2018–005, published as a
proposed rule October 2, 2019 (84 FR
52428), implements section 811 of the
National Defense Authorization Act
(NDAA) for Fiscal Year (FY) 2018 that
amended 10 U.S.C. 2306a, Cost or
Pricing Data: Truth in Negotiations and
PO 00000
Frm 00051
Fmt 4702
Sfmt 4702
41 U.S.C. 3502, Required cost or pricing
data and certification. The case
increases the threshold for requesting
certified cost or pricing data from
$750,000 to $2 million for contracts
entered into after June 30, 2018.
FAR Case 2018–007, published as a
final rule on May 6, 2020 (85 FR 27088),
implements section 821 of the NDAA
for FY 2018 (Pub. L. 115–91), which
made inflation adjustments of statutory
acquisition-related thresholds under 41
U.S.C. 1908 applicable to existing
contracts and subcontracts that contain
the clause to implement the statute and
are in effect on the date of the
adjustment. This case replaces
throughout FAR part 52, as appropriate,
numerical values based on the value of
the MPT or the SAT with the term
‘‘micro-purchase threshold’’ or
‘‘simplified acquisition threshold’’.
When such terms are used, there is a
reference to the definition in FAR 2.101.
In addition to the MPT and SAT,
numerical values for certain thresholds
will be replaced with a reference to the
applicable FAR text that specifies the
numerical threshold.
This is the fourth review of FAR
acquisition-related thresholds since the
statute was passed on October 28, 2004
(section 807 of the Ronald W. Reagan
National Defense Authorization Act for
Fiscal Year 2005). The last review was
conducted under FAR case 2014–022
during FY 2015. The final rule under
that case was published in the Federal
Register on July 2, 2015 (80 FR 38293),
effective October 1, 2015.
II. Discussion and Analysis
A. What is an acquisition-related
threshold?
This case builds on the review of FAR
thresholds in FY 2005, FY 2010, and FY
2015, using the same interpretation of
an acquisition-related threshold. 41
U.S.C. 1908 is applicable to ‘‘a dollar
threshold that is specified in law as a
factor in defining the scope of the
applicability of a policy, procedure,
requirement, or restriction provided in
that law to the procurement of property
or services by an executive agency, as
the [FAR] Council determines.’’
There are other thresholds in the FAR
that, while not specified in law,
nevertheless meet all the other criteria.
These thresholds may have their origin
in Executive Order or regulation.
Therefore, the FAR Council has
determined, that in this case,
‘‘acquisition-related threshold’’ has a
broader meaning, i.e., a threshold that is
specified in law, Executive Order, or
regulation as a factor in defining the
scope of the applicability of a policy,
E:\FR\FM\30JNP1.SGM
30JNP1
Federal Register / Vol. 85, No. 126 / Tuesday, June 30, 2020 / Proposed Rules
procedure, requirement, or restriction
provided in that law, Executive Order,
or regulation to the procurement of
property or services by an Executive
agency. DoD, GSA, and NASA conclude
that acquisition-related thresholds are
generally tied to the value of a contract,
subcontract, or modification.
Examples of thresholds that are not
‘‘acquisition-related,’’ as defined in this
case, are thresholds relating to claims,
penalties, withholding, payments,
required levels of insurance, small
business size standards, liquidated
damages, protests, etc. This rule does
not address thresholds that are not
acquisition-related.
khammond on DSKJM1Z7X2PROD with PROPOSALS
B. What acquisition-related thresholds
are not subject to escalation adjustment
under this case?
41 U.S.C. 1908 does not permit
escalation of acquisition-related
thresholds established by the
Construction Wage Rate Requirements
statute (Davis Bacon Act), the Service
Contract Labor Standards statute, or the
United States Trade Representative
pursuant to the authority of the Trade
Agreements Act of 1979.
Also, the statute does not authorize
the FAR to escalate thresholds
originating in Executive Order or the
implementing agency (such as the
Department of Labor or the Small
Business Administration), unless the
Executive order or agency regulations
are first amended.
C. How do the Defense Acquisition
Regulations Council and the Civilian
Agency Acquisition Council (the
Councils) analyze a statutory
acquisition-related threshold?
If an acquisition-related threshold is
based on statute, the matrix at https://
www.regulations.gov identifies the
statute and the statutory threshold,
including the original threshold and any
FAR revisions.
With the exception of thresholds set
by the Construction Wage Rate
Requirements statute (Davis-Bacon Act),
Service Contract Labor Standards
statute, and the United States Trade
Representative pursuant to the authority
of the Trade Agreements Act of 1979, 41
U.S.C. 1908 requires that the FAR
Council adjust the acquisition-related
thresholds for inflation using the CPI for
all urban consumers. Acquisitionrelated thresholds in statutes that were
in effect on October 1, 2000, are only
subject to escalation from that date
forward. For purposes of this proposed
rule, the matrix includes calculation of
escalation based on the estimated CPI
value for March 2020 (currently
projected at 258.6) divided by the CPI
VerDate Sep<11>2014
16:34 Jun 29, 2020
Jkt 250001
for the date of enactment of the statute
or regulation (October 2000, for statutes
enacted prior to October 1, 2000). The
Councils will subsequently adjust as
necessary before issuance of the final
rule.
Once the escalation factor is applied
to the acquisition-related threshold,
then the threshold must be rounded as
follows:
<$10,000 ............................
$10,000–<$100,000 ...........
$100,000–<$1 million .......
$1 million–<$10 million ...
$10 million–<$100 million
$100 million–<$1 billion ..
$1 billion or more .............
Nearest
Nearest
Nearest
Nearest
Nearest
Nearest
Nearest
$500.
$5,000.
$50,000.
$500,000.
$5 million.
$50 million.
$500 million.
Note, since the last adjustment in
2015, the calculation formula for over
$1 million was revised in 41 U.S.C.
1908.
The calculations in this proposed rule
are all based on the base year amount,
because escalated amounts in the 2015
rule were subject to rounding and using
those amounts as the base would distort
future calculations.
In 2015, some thresholds, although
subject to inflation calculation, did not
actually change, because the inflation in
2015 was insufficient to overcome the
rounding requirements—i.e., the
escalation factor, when applied, did not
cause the escalated values to be high
enough to round to the next higher
value. However, in FY 2020, some
thresholds that did not escalate in 2015
have increased through other statutory
actions or will now escalate because of
five additional years of inflation.
Likewise, some thresholds that were
escalated in 2015 will not escalate in
2020.
The thresholds for defining a major
system differ for the civilian agencies
and DoD. The FAR will continue to
escalate the major systems threshold for
the civilian agencies, however, DoD has
determined that for DoD, the major
systems thresholds in the FAR must be
consistent with the major systems
thresholds in DoD Instruction 5000.02,
established in accordance with the
authority in 10 U.S.C. 2302d(c)(1). For
the purposes of this rule, the thresholds
are unchanged.
This proposed rule has been
coordinated with the Department of
Labor and the Small Business
Administration in areas of the
regulation for which they are the lead
agency.
D. How do the Councils analyze a
nonstatutory acquisition-related
threshold?
No statutory authorization is required
to escalate thresholds that are policybased within the FAR. For consistency,
PO 00000
Frm 00052
Fmt 4702
Sfmt 4702
39147
escalation of the FAR policy
acquisition-related thresholds is
recommended using the same formula
applied to the statutory thresholds,
unless there is a valid reason for not
doing so.
E. What is the effect of this proposed
rule on the most heavily-used
thresholds?
This rule includes the following
proposed changes to heavily-used
thresholds. All these inflation raises
assume that the current rate of inflation
continues.
• The micro-purchase threshold at
FAR 2.101 was raised to $10,000 by
statute (see FAR Case 2018–004). No
further increase to the basic threshold is
made at this time, as there has been
insufficient inflation. Paragraph 3(ii) of
the definition, for acquisitions to
support contingency operations or to
facilitate defense against certain attacks,
is proposed to increase from $30,000 to
$35,000.
• The simplified acquisition
threshold was changed to $250,000 by
statute (see FAR Case 2018–004). No
further increase in the basic threshold is
proposed, as there has been insufficient
inflation. Paragraph (1)(i) of the
definition for acquisitions to support
contingency operations or to facilitate
defense against certain attacks, is
proposed to increase from $750,000 to
$800,000.
• The preaward and post-award
notices (FAR part 5) remain at $25,000
because of trade agreements.
• The requirements for limiting
competition (FAR part 6) to eligible 8(a)
awards over $22 million is increased to
$25 million.
• The simplified procedures for
certain commercial items ceiling (FAR
13.500) will increase from $7 million to
$7.5 million. For acquisitions described
at 13.500(c), the ceiling will increase
from $13.5 million to $15 million.
• The cost or pricing data threshold
(FAR 15.403–4) was increased by statute
from $750,000 to $2 million (see FAR
Case 2018–005) and is not proposed for
further increase in this case.
• The prime contractor
subcontracting plan (FAR 19.702) floor
will increase from $700,000 to $750,000,
but the construction threshold of $1.5
million will not change. Standard Form
294 at General Instruction 3 has a
reference to $700,000, which will be
changed.
• The threshold for reporting first-tier
subcontract information including
executive compensation will not change
(FAR subpart 4.14 and 52.204–10).
This proposed rule is based on a
projected CPI of 258.6 for March 2020.
E:\FR\FM\30JNP1.SGM
30JNP1
39148
Federal Register / Vol. 85, No. 126 / Tuesday, June 30, 2020 / Proposed Rules
If the actual CPI for March 2020 is
higher than 258.6, then additional
statutory thresholds may be subject to
escalation in the final rule, even though
not included in the proposed rule.
III. Applicability to Contracts at or
Below the Simplified Acquisition
Threshold (SAT) and for Commercial
Items, Including Commercially
Available Off-the-Shelf (COTS) Items
This proposed rule does not create
any new provisions or clauses, nor does
it change the applicability of any
existing provisions or clauses included
in solicitations and contracts valued at
or below the SAT, or for commercial
items, including COTS items, except for
the changes in the thresholds
themselves.
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
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 is not a significant
regulatory action and, therefore, was not
subject to review under section 6(b) of
E.O. 12866, Regulatory Planning and
Review, dated September 30, 1993. This
rule is not a major rule under 5 U.S.C.
804.
V. Executive Order 13771
The rule is not subject to E.O. 13771,
because this rule is not a significant
regulatory action under E.O. 12866.
khammond on DSKJM1Z7X2PROD with PROPOSALS
VI. Regulatory Flexibility Act
DoD, GSA, and NASA do not expect
this rule to have a significant economic
impact on a substantial number of small
entities within the meaning of the
Regulatory Flexibility Act, 5 U.S.C. 601,
et seq., because the rule maintains the
status quo by adjusting thresholds for
actual inflationary increases in the CPI.
However, an Initial Regulatory
Flexibility Analysis has been performed
and is summarized as follows:
This rule will amend the Federal
Acquisition Regulation to implement 41
U.S.C. 1908 and to amend other acquisitionrelated dollar thresholds that are based on
policy rather than statute in Order to adjust
for the changing value of the dollar. 41 U.S.C.
1908 requires adjustment every five years of
statutory acquisition-related dollar
thresholds, except for Construction Wage
Rate Requirements statute (Davis-Bacon Act),
VerDate Sep<11>2014
16:34 Jun 29, 2020
Jkt 250001
Service Contract Labor Standards statute, and
trade agreements thresholds. While
reviewing all statutory acquisition-related
thresholds, this case presented an
opportunity to also review all nonstatutory
acquisition-related thresholds in the FAR
that are based on policy.
The objective of the case is to maintain the
status quo, by adjusting acquisition-related
thresholds for inflation. The legal basis is 41
U.S.C. 1908. The statute does not authorize
the FAR to escalate thresholds originating in
Executive Orders or the implementing agency
(such as the Department of Labor or the
Small Business Administration), unless the
Executive Order or agency regulations are
first amended.
This rule will have a minimal impact on
small business concerns that submit offers or
are awarded contracts by the Federal
Government. However, most of the threshold
changes proposed in this rule are not
expected to have any significant economic
impact on small business concerns because
the threshold changes are intended to
maintain the status quo by adjusting for
changes in the value of the dollar. Often any
impact will be beneficial, by preventing
burdensome requirements from applying to
more and more acquisitions, as the dollar
loses value.
One threshold change in this rule which
may impact small business concerns is the
increase of the threshold for requiring a
justification or determination for limiting
competition to eligible 8(a) participants from
$22 million to $25 million. This threshold
increase is expected to benefit small
businesses under the 8(a) program by
expanding their access to contract
opportunities. To assess the impact of the
increase, data was requested from FPDS–NG.
For FY 2017 through FY 2019, there was an
average of 300 contracts and calls/orders
between $22 million and $25 million. Of
these actions, an average of 134 went to small
business concerns, 27 of which were 8(a)
program participants. We expect that many of
these awards will still go to small business
concerns and potentially increase the number
of awards to 8(a) program participants.
The rule does not impose any new
reporting, recordkeeping, or compliance
requirements. Changes in thresholds for
approved information collection
requirements are intended to maintain the
status quo and prevent those requirements
from increasing over time.
The rule does not duplicate, overlap, or
conflict with any other Federal rules.
There are no practical alternatives that will
accomplish the objectives of the statute.
The Regulatory Secretariat Division
has submitted a copy of the IRFA to the
Chief Counsel for Advocacy of the Small
Business Administration. A copy of the
IRFA may be obtained from the
Regulatory Secretariat Division. DoD,
GSA, and NASA invite comments from
small business concerns and other
interested parties on the expected
impact of this rule on small entities.
DoD, GSA, and NASA will also
consider comments from small entities
PO 00000
Frm 00053
Fmt 4702
Sfmt 4702
concerning the existing regulations in
subparts affected by the rule in
accordance with 5 U.S.C. 610. Interested
parties must submit such comments
separately and should cite 5 U.S.C 610
(FAR Case 2019–013), in
correspondence.
VII. Paperwork Reduction Act
The Paperwork Reduction Act does
apply. The proposed 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. By adjusting the thresholds
for inflation, the status quo for the
current information collection
requirements are maintained under the
following OMB clearance numbers:
9000–0006, 9000–0007, 1250–0004, and
1293–0005.
List of Subjects in 48 CFR Parts 1, 2, 3,
5, 6, 8, 9, 10, 12, 13, 15, 16, 17, 19, 22,
26, 28, 32, 36, 42, 50, 52, and 53
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
propose amending 48 CFR parts 1, 2, 3,
5, 6, 8, 9, 10, 12, 13, 15, 16, 17, 19, 22,
26, 28, 32, 36, 42, 50, 52, and 53 as set
forth below:
■ 1. The authority citation for 48 CFR
parts 1, 2, 3, 5, 6, 8, 9, 10, 12, 13, 15,
16, 17, 19, 22, 26, 28, 32, 36, 42, 50, 52,
and 53 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
1.109
[Amended]
2. Amend section 1.109, in paragraph
(d) by removing ‘‘2014–022’’ and adding
‘‘2019–013’’ in its place.
■
PART 2—DEFINITIONS OF WORDS
AND TERMS
2.101
[Amended]
3. Amend section 2.101, in paragraph
(b)(2) by—
■ a. In the definition ‘‘Major system’’,
removing from paragraph (2) ‘‘$ 2
million’’ and adding ‘‘$2.5 million’’ in
its place;
■ b. In the definition ‘‘Micro-purchase
threshold’’, removing from paragraph
(3)(ii) ‘‘$30,000’’ and adding ‘‘$35,000’’
in its place; and
■ c. In the definition ‘‘Simplified
acquisition threshold’’, removing from
paragraph (1)(i) ‘‘$750,000’’ and adding
‘‘$800,000’’ in its place.
■
E:\FR\FM\30JNP1.SGM
30JNP1
Federal Register / Vol. 85, No. 126 / Tuesday, June 30, 2020 / Proposed Rules
PART 8—REQUIRED SOURCES OF
SUPPLIES AND SERVICES
PART 3—IMPROPER BUSINESS
PRACTICES AND PERSONAL
CONFLICTS OF INTEREST
3.1004
8.404
[Amended]
4. Amend section 3.1004 by removing
from paragraphs (a), (b)(1)(i), and (b)(3)
‘‘$5.5 million’’ and adding ‘‘$6 million’’
in their places, respectively.
[Amended]
5. Amend section 5.303 in paragraph
(a) by removing ‘‘$4 million’’ and
adding ‘‘$4.5 million’’ in its place.
■
PART 6—COMPETITION
REQUIREMENTS
[Amended]
7. Amend section 6.302–5 by
removing from paragraphs (b)(4) and
(c)(2)(iii) ‘‘$22 million’’ and adding
‘‘$25 million’’ in their places,
respectively.
■
[Amended]
8. Amend section 6.303–1 in
paragraph (b) introductory text by
removing ‘‘$22 million’’ and adding
‘‘$25 million’’ in its place.
■
6.303–2
9. Amend section 6.303–2 by
removing from the introductory text of
paragraphs (b) and (d) ‘‘$22 million’’
and adding ‘‘$25 million’’ in their
places, respectively.
[Amended]
10. Amend section 6.304 by—
■ a. Removing from paragraph (a)(1)
‘‘$700,000’’ and adding ‘‘$750,000’’ in
its place;
■ b. Removing from paragraph (a)(2)
‘‘$700,000’’ and ‘‘$13.5 million’’ and
adding ‘‘$750,000’’ and ‘‘$15 million’’ in
their places, respectively;
■ c. Removing from paragraph (a)(3)
introductory text ‘‘$13.5 million’’, ‘‘$68
million’’, and ‘‘$93 million’’ and adding
‘‘$15 million’’, ‘‘$75 million’’, and
‘‘$100 million’’ in their places,
respectively; and
■ d. Removing from paragraph (a)(4)
‘‘$68 million’’ and ‘‘$93 million’’ and
adding ‘‘$75 million’’ and ‘‘$100
million’’ in their places, respectively.
■
khammond on DSKJM1Z7X2PROD with PROPOSALS
12. Amend section 8.405–3 by—
a. Removing from paragraph (a)(3)(ii)
introductory text ‘‘$112 million’’ and
adding ‘‘$100 million’’ in its place;
■ b. Removing from paragraph (a)(3)(iii)
‘‘$112 million’’ and adding ‘‘$100
million’’ in its place; and
■ c. Removing from paragraph (a)(7)(v)
‘‘$112 million’’ and adding ‘‘$100
million’’ in its place.
■
13. Amend section 8.405–6 by—
a. Removing from paragraph (d)(1)
‘‘$700,000’’ and adding ‘‘$750,000’’ in
its place;
■ b. Removing from paragraph (d)(2)
‘‘$700,000’’ and ‘‘$13.5 million’’ and
adding ‘‘$750,000’’ and ‘‘$15 million’’ in
their places, respectively;
■ c. Removing from paragraph (d)(3)
introductory text ‘‘$13.5 million’’, ‘‘$68
million’’, and ‘‘$93 million’’ and adding
‘‘$15 million’’, ‘‘$75 million’’, and
‘‘$100 million’’ in their places,
respectively; and
■ d. Removing from paragraph (d)(4)
‘‘$68 million’’ and ‘‘$93 million’’ and
adding ‘‘$75 million’’ and ‘‘$100
million’’ in their places, respectively.
■
VerDate Sep<11>2014
16:34 Jun 29, 2020
Jkt 250001
[Amended]
14. Amend section 9.104–5 in
paragraph (c) by removing ‘‘$5,000,000’’
and adding ‘‘$5.5 million’’ in its place.
■
9.104–7
[Amended]
15. Amend section 9.104–7 by—
■ a. Removing from paragraphs (b) and
(c)(1) ‘‘$550,000’’ and adding
‘‘$600,000’’ in their places, respectively;
and
■ b. Removing from paragraph (e)
‘‘$5,000,000’’ and adding ‘‘$5.5 million’’
in its place.
■
9.405–2
[Amended]
16. Amend section 9.405–2 in
paragraph (b) introductory text by—
■ a. Removing from the second sentence
‘‘$35,000’’ and adding ‘‘$40,000’’ in its
place; and
■ b. Removing from the third sentence
‘‘$35,000’’ and adding ‘‘$40,000’’ in its
place.
■
PO 00000
Frm 00054
Fmt 4702
Sfmt 4702
[Amended]
18. Amend section 10.001 in
paragraph (d) by removing ‘‘$5.5
million’’ and adding ‘‘$6 million’’ in its
place.
10.003
[Amended]
19. Amend section 10.003 by
removing ‘‘$5.5 million’’ and adding
‘‘$6 million’’ in its place.
■
PART 12—ACQUISITION OF
COMMERCIAL ITEMS
[Amended]
20. Amend section 12.102 in
paragraph (f)(2) by removing ‘‘$19
million’’ and adding ‘‘$20 million’’ in
its place.
■
12.203
[Amended]
21. Amend section 12.203 by
removing ‘‘$7 million ($13 million’’ and
adding ‘‘$7.5 million ($15 million’’ in
its place.
■
PART 13—SIMPLIFIED ACQUISITION
PROCEDURES
13.000
[Amended]
22. Amend section 13.000 by
removing ‘‘$7 million ($13 million’’ and
adding ‘‘$7.5 million ($15 million’’ in
its place.
■
13.003
[Amended]
23. Amend section 13.003 by
removing from paragraphs (c)(1)(ii) and
(g)(2) ‘‘$7 million ($13 million’’ and
adding ‘‘$7.5 million ($15 million’’ in
their places, respectively.
■
PART 9—CONTRACTOR
QUALIFICATIONS
9.104–5
PART 10—MARKET RESEARCH
12.102
[Amended]
[Amended]
■
6.304
■
[Amended]
■
6. Amend section 6.204 in paragraph
(b) by removing ‘‘$22 million’’ and
adding ‘‘$25 million’’ in its place.
■
6.303–1
10.001
8.405–3
8.405–6
[Amended]
6.302–5
11. Amend section 8.404 in paragraph
(b)(2) by removing ‘‘$550,000’’ and
adding ‘‘$600,000’’ in its place.
■
PART 5—PUBLICIZING CONTRACT
ACTIONS
6.204
[Amended]
17. Amend section 9.409 by removing
‘‘$35,000’’ and adding ‘‘$40,000’’ in its
place.
■
■
■
5.303
[Amended]
9.409
39149
13.201
[Amended]
24. Amend section 13.201 in
paragraph (g)(1)(ii) by removing
‘‘$30,000’’ and adding ‘‘$35,000’’ in its
place.
■
13.303–5
[Amended]
25. Amend section 13.303–5 by—
a. Removing from paragraph (b)(1) ‘‘$7
million’’ and ‘‘$13 million’’ and adding
‘‘$7.5 million’’ and ‘‘$15 million’’ in
their places, respectively; and
■ b. Removing from paragraph (b)(2) ‘‘$7
million ($13 million’’ and adding ‘‘$7.5
million ($15 million’’ in its place.
■
■
13.402
[Amended]
26. Amend section 13.402 in
paragraph (a) by removing ‘‘$35,000’’
and adding ‘‘$40,000’’ in its place.
■
13.500
■
[Amended]
27. Amend section 13.500 by—
E:\FR\FM\30JNP1.SGM
30JNP1
39150
Federal Register / Vol. 85, No. 126 / Tuesday, June 30, 2020 / Proposed Rules
a. Removing from paragraph (a) ‘‘$7
million ($13 million’’ and adding ‘‘$7.5
million ($15 million’’ in its place; and
■ b. Removing from paragraph (c)
introductory text ‘‘$13 million’’ and
adding ‘‘$15 million’’ in its place.
■
16.505
[Amended]
30. Amend section 15.404–3 in
paragraph (c)(1)(i) by removing ‘‘$13.5
million’’ and adding ‘‘$15 million’’ in
its place.
15.407–2
16.506
[Amended]
28. Amend section 13.501 by—
a. Removing from paragraph (a)(2)(i)
‘‘$700,000’’ and adding ‘‘$750,000’’ in
its place;
■ b. Removing from paragraph (a)(2)(ii)
‘‘$700,000’’ and ‘‘$13.5 million’’ and
adding ‘‘$750,000’’ and ‘‘$15 million’’ in
their places, respectively;
■ c. Removing from paragraph (a)(2)(iii)
‘‘$13.5 million’’, ‘‘$68 million’’, and
‘‘$93 million’’ and adding ‘‘$15
million’’, ‘‘$75 million’’, and ‘‘$100
million’’ in their places, respectively;
and
■ d. Removing from paragraph (a)(2)(iv)
‘‘$68 million’’ and ‘‘$93 million’’ and
adding ‘‘$75 million’’ and ‘‘$100
million’’ in their places, respectively.
PART 15—CONTRACTING BY
NEGOTIATION
15.403–1
[Amended]
29. Amend section 15.403–1 in
paragraph (c)(3)(iv) by removing ‘‘$19
million’’ and adding ‘‘$20 million’’ in
its place.
■
15.404–3
[Amended]
■
[Amended]
31. Amend section 15.407–2 by
removing from paragraphs (c)(1) and
(c)(2) introductory text ‘‘$13.5 million’’
and adding ‘‘$15 million’’ in their
places, respectively.
■
15.408
■
■
■
■
[Amended]
32. Amend section 15.408, in Table
15–2, section II, paragraph A.(2) by
removing ‘‘$13.5 million’’ and adding
‘‘$15 million’’ in its place.
■
PART 17—SPECIAL CONTRACTING
METHODS
17.108
16.503
■
[Amended]
33. Amend section 16.503 in
paragraph (b)(2) by removing ‘‘$112
million’’ and adding ‘‘$100 million’’ in
its place.
■
16.504
[Amended]
34. Amend section 16.504 by—
a. Removing from paragraphs
(c)(1)(ii)(D)(1) and (D)(3) introductory
text, ‘‘$112 million’’ and adding ‘‘$100
million’’ in their places, respectively;
and
■
■
VerDate Sep<11>2014
16:34 Jun 29, 2020
Jkt 250001
[Amended]
36. Amend section 16.506 by—
■ a. Removing from paragraphs (f) and
(g) ‘‘$13.5 million’’ and adding ‘‘$15
million’’ in their places, respectively;
and
■ b. Removing from paragraph (h) ‘‘$5.5
million’’ and adding ‘‘$6 million’’ in its
place.
■
PART 16—TYPES OF CONTRACTS
PART 19—SMALL BUSINESS
PROGRAMS
19.702
[Amended]
39. Amend section 19.702 by
removing from paragraphs (a)(1)(i)
through (iii) ‘‘$700,000’’ and adding
‘‘$750,000’’ in their places, respectively.
■
35. Amend section 16.505 by—
a. Removing from paragraph (b)(1)(i)
introductory text ‘‘$3,500’’ and adding
‘‘$4,000’’ in its place;
■ b. Removing from paragraph (b)(1)(iv)
introductory text ‘‘$5.5 million’’ twice,
and adding ‘‘$6 million’’ in their places,
respectively;
■ c. Removing from paragraph (b)(2)(i)
introductory text and (b)(2)(ii)(A)
‘‘$3,500’’ and adding ‘‘$4,000’’ in their
places, respectively;
■ d. Removing from paragraph
(b)(2)(ii)(C)(1) ‘‘$700,000’’ and adding
‘‘$750,000’’ in its place;
■ e. Removing from paragraph
(b)(2)(ii)(C)(2) ‘‘$700,000’’ and ‘‘$13.5
million’’ and adding ‘‘$750,000’’ and
‘‘$15 million’’ in their places,
respectively;
■ f. Removing from paragraph
(b)(2)(ii)(C)(3) introductory text ‘‘$13.5
million’’, ‘‘$68 million, and ‘‘$93
million’’ and adding ‘‘$15 million’’,
‘‘$75 million’’ and ‘‘$100 million’’ in
their places, respectively;
■ g. Removing from paragraph
(b)(2)(ii)(C)(4) ‘‘$68 million’’ and ‘‘$93
million’’ and adding ‘‘$75 million’’ and
‘‘$100 million’’ in their places,
respectively; and
■ h. Removing from paragraph (b)(6)
‘‘$5.5 million’’ and ‘‘$5.5 million’’, and
adding ‘‘$6 million’’ and ‘‘$6 million’’ in
their places, respectively.
13.501
khammond on DSKJM1Z7X2PROD with PROPOSALS
b. Removing from paragraph (c)(2)(i)
introductory text ‘‘$13.5 million’’ and
adding ‘‘$15 million’’ in its place.
■
[Amended]
19.704
[Amended]
40. Amend section 19.704 by—
■ a. Removing from paragraph (a)
introductory text ‘‘plan’’ and adding
‘‘plan required’’ in its place; and
■ b. Removing from paragraph (a)(9)
‘‘$700,000’’ and adding ‘‘$750,000’’ in
its place.
■
19.708
[Amended]
41. Amend section 19.708 in
paragraph (b)(1) by removing
‘‘$700,000’’ and adding ‘‘$750,000’’ in
its place.
■
19.805–1
19.808–1
19.1306
19.1406
45. Amend section 19.1406 by—
a. Removing from paragraph (a)(2)(i)
‘‘$6.5 million’’ and adding ‘‘$7 million’’
in its place; and
■ b. Removing from paragraph (a)(2)(ii)
‘‘$4 million’’ and adding ‘‘$4.5 million’’
in its place.
■
PART 22—APPLICATION OF LABOR
LAWS TO GOVERNMENT
ACQUISITIONS
22.1701
PO 00000
Frm 00055
Fmt 4702
Sfmt 4702
[Amended]
■
17.500
[Amended]
[Amended]
44. Amend section 19.1306 by—
■ a. Removing from paragraph (a)(2)(i)
‘‘$7 million’’ and adding ‘‘$7.5 million’’
in its place; and
■ b. Removing from paragraph (a)(2)(ii)
‘‘$4 million’’ and adding ‘‘$4.5 million’’
in its place.
■
22.1103
38. Amend section 17.500 in
paragraph (c)(2) by removing
‘‘$550,000’’ and adding ‘‘$600,000’’ in
its place.
[Amended]
43. Amend section 19.808–1 in
paragraph (a) by removing ‘‘$22
million’’ and adding ‘‘$25 million’’ in
its place.
■
37. Amend section 17.108 by—
■ a. Removing from paragraph (a)
‘‘$13.5 million’’ and adding ‘‘$15
million’’ in its place; and
■ b. Removing from paragraph (b)
‘‘$135.5 million’’ and adding ‘‘$150
million’’ in its place.
■
[Amended]
42. Amend section 19.805–1 in
paragraph (a)(2) by removing ‘‘$7
million’’ and ‘‘$4 million’’ and adding
‘‘$7.5 million’’ and ‘‘$4.5 million’’ in
their places, respectively.
■
[Amended]
46. Amend section 22.1103 by
removing ‘‘$700,000’’ and adding
‘‘$750,000’’ in its place.
■
[Amended]
47. Amend section 22.1701 in
paragraph (b)(2) by removing
‘‘$500,000’’ and adding ‘‘$550,000’’ in
its place.
■
E:\FR\FM\30JNP1.SGM
30JNP1
Federal Register / Vol. 85, No. 126 / Tuesday, June 30, 2020 / Proposed Rules
22.1703
[Amended]
22.1705
[Amended]
49. Amend section 22.1705 in
paragraph (b)(1) by removing
‘‘$500,000’’ and adding ‘‘$550,000’’ in
its place.
■
PART 26—OTHER SOCIOECONOMIC
PROGRAMS
26.404
[Amended]
50. Amend section 26.404 by
removing ‘‘$25,000’’ and adding
‘‘$30,000’’ in its place.
■
[Amended]
59. Amend section 50.102–1 in
paragraph (b) by removing ‘‘$70,000’’
and adding ‘‘$75,000’’ in its place.
■
[Amended]
60. Amend section 50.102–3 by—
a. Removing from paragraph (b)(4)
‘‘$34 million’’ and adding ‘‘$40 million’’
in its place; and
■ b. Removing from paragraphs (e)(1)(i)
and (ii) ‘‘$70,000’’ and adding
‘‘$75,000’’ in their places.
[Amended]
51. Amend section 28.102–1 in
paragraph (b)(1) introductory text by
removing ‘‘$35,000’’ and adding
‘‘$40,000’’ in its place.
PART 52—SOLICITATION PROVISIONS
AND CONTRACT CLAUSES
[Amended]
52. Amend section 28.102–2 in
paragraph (c) paragraph heading by
removing ‘‘$35,000’’ and adding
‘‘$40,000’’ in its place.
61. Amend section 52.248–3 by
revising the date of the clause, and
removing from paragraph (h) ‘‘$70,000’’
and adding ‘‘$75,000’’ in its place.
The revision reads as follows:
■
28.102–3
50.102–1
■
■
■
28.102–2
PART 50—EXTRAORDINARY
CONTRACTUAL ACTIONS AND THE
SAFETY ACT
50.102–3
PART 28—BONDS AND INSURANCE
28.102–1
a. Removing from paragraph (e)
‘‘$700,000’’ twice and adding
‘‘$750,000’’ in their places, respectively;
and
■ b. Removing from paragraph (f)
‘‘$35,000’’ twice and adding ‘‘$40,000’’
in their places, respectively.
■
48. Amend section 22.1703 by
removing from paragraphs (c)(1)(i)(B)
and (c)(3)(i)(B) ‘‘$500,000’’ and adding
‘‘$550,000’’ in their places, respectively.
■
■
[Amended]
53. Amend section 28.102–3 in
paragraph (b) by removing ‘‘$35,000’’
and adding ‘‘$40,000’’ in its place.
52.248–3 Value Engineering—
Construction.
PART 32—CONTRACT FINANCING
Value Engineering—Construction (DATE)
■
32.104
*
*
[Amended]
54. Amend section 32.104 by
removing from paragraphs (d)(2)(i) and
(ii) ‘‘$2.5 million’’ and adding ‘‘$3
million’’ in their places, respectively.
■
PART 36—CONSTRUCTION AND
ARCHITECT-ENGINEER CONTRACTS
36.303–1
*
*
*
*
*
*
*
*
PART 53—FORMS
53.219
[Amended]
62. Amend section 53.219 by
removing ‘‘(Rev. 8/2016)’’ and adding
‘‘(DATE)’’ in its place.
■
[FR Doc. 2020–13334 Filed 6–29–20; 8:45 am]
BILLING CODE 6820–EP–P
[Amended]
55. Amend section 36.303–1 in
paragraph (a)(4) by removing ‘‘$4
million’’ and adding ‘‘$4.5 million’’ in
its place.
■
48 CFR Parts 852 and 871
PART 42—CONTRACT
ADMINISTRATION AND AUDIT
SERVICES
42.709–0
khammond on DSKJM1Z7X2PROD with PROPOSALS
RIN 2900–AQ76
[Amended]
56. Amend section 42.709–0 in
paragraph (b) by removing ‘‘$750,000’’
and adding ‘‘$800,000’’ in its place.
■
42.709–6
■
VA Acquisition Regulation: Loan
Guaranty and Vocational Rehabilitation
and Employment Programs
Department of Veterans Affairs.
Proposed rule.
AGENCY:
ACTION:
[Amended]
57. Amend section 42.709–6 by
removing ‘‘$750,000’’ and adding
‘‘$800,000’’ in its place.
■
42.1502
DEPARTMENT OF VETERANS
AFFAIRS
[Amended]
58. Amend section 42.1502 by—
VerDate Sep<11>2014
16:34 Jun 29, 2020
Jkt 250001
The Department of Veterans
Affairs (VA) is proposing to amend and
update its VA Acquisition Regulation
(VAAR) in phased increments to revise
or remove any policy superseded by
changes in Federal Acquisition
SUMMARY:
PO 00000
Frm 00056
Fmt 4702
Sfmt 4702
39151
Regulation (FAR), to remove procedural
guidance that is internal to VA and
move it to the VA Acquisition Manual
(VAAM), and to incorporate any new
agency specific regulations or policies.
These changes seek to streamline and
align the VAAR with the FAR and
remove outdated and duplicative
requirements and reduce burden on
contractors. The VAAM incorporates
portions of the removed VAAR as well
as other internal agency acquisition
policy. VA will rewrite certain parts of
the VAAR and VAAM, and as VAAR
parts are rewritten, will publish them in
the Federal Register. VA will combine
related topics, as appropriate. This
rulemaking revises VAAR coverage
concerning Loan Guaranty and
Vocational Rehabilitation and
Employment Programs, as well as an
affected part concerning Solicitation
Provisions and Contract Clauses.
DATES: Comments must be received on
or before August 31, 2020.
ADDRESSES: Written comments may be
submitted through
www.Regulations.gov; by mail or handdelivery to Director, Office of Regulation
Policy and Management (00REG),
Department of Veterans Affairs, 810
Vermont Avenue NW, Room 1064,
Washington, DC 20420; or by fax to
(202) 273–9026. (This is not a toll-free
number.) Comments should indicate
that they are submitted in response to
‘‘RIN 2900–AQ76 VA Acquisition
Regulation: Loan Guaranty and
Vocational Rehabilitation and
Employment Programs.’’ Copies of
comments received will be available for
public inspection in the Office of
Regulation Policy and Management,
Room 1064, between the hours of 8:00
a.m. and 4:30 p.m., Monday through
Friday (except holidays). Please call
(202) 461–4902 for an appointment.
(This is not a toll-free number.) In
addition, during the comment period,
comments may be viewed online
through the Federal Docket Management
System (FDMS) at www.Regulations.gov.
FOR FURTHER INFORMATION CONTACT: Mr.
Rafael N. Taylor, Senior Procurement
Analyst, Procurement Policy and
Warrant Management Services, 003A2A,
425 I Street NW, Washington, DC 20001,
(202) 382–2787. (This is not a toll-free
number.)
SUPPLEMENTARY INFORMATION:
Background
This rulemaking is issued under the
authority of the Office of Federal
Procurement Policy (OFPP) Act which
provides the authority for an agency
head to issue agency acquisition
E:\FR\FM\30JNP1.SGM
30JNP1
]]>Agencies
[Federal Register Volume 85, Number 126 (Tuesday, June 30, 2020)]
[Proposed Rules]
[Pages 39146-39151]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-13334]
[[Page 39146]]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 1, 2, 3, 5, 6, 8, 9, 10, 12, 13, 15, 16, 17, 19, 22,
26, 28, 32, 36, 42, 50, 52, and 53
[FAR Case 2019-013, Docket No. FAR-2019-0013, Sequence No. 1]
RIN 9000--AN96
Federal Acquisition Regulation: Inflation Adjustment of
Acquisition-Related Thresholds
AGENCY: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: DoD, GSA, and NASA are proposing to amend the Federal
Acquisition Regulation (FAR) to further implement the statute which
requires an adjustment every five years of statutory acquisition-
related thresholds for inflation. The adjustment uses the Consumer
Price Index for all urban consumers, and does not apply to the
Construction Wage Rate Requirements statute (Davis-Bacon Act), Service
Contract Labor Standards statute, and trade agreements thresholds. DoD,
GSA, and NASA are also proposing to use the same methodology to adjust
nonstatutory FAR acquisition-related thresholds in 2020.
DATES: Interested parties should submit written comments at the address
shown below on or before August 31, 2020 to be considered in the
formation of the final rule.
ADDRESSES: Submit comments in response to FAR case 2019-013 to https://www.regulations.gov. Submit comments via the Federal eRulemaking portal
by searching for ``FAR Case 2019-013''. Select the link ``Comment Now''
that corresponds with FAR Case 2019-013. Follow the instructions
provided at the ``Comment Now'' screen. Please include your name,
company name (if any), and ``FAR Case 2019-013'' on your attached
document. If your comment cannot be submitted using https://www.regulations.gov, call or email the points of contact in the FOR
FURTHER INFORMATION CONTACT section of this document for alternate
instructions.
Instructions: Please submit comments only and cite FAR Case 2019-
013, in all correspondence related to this case. Comments received
generally will be posted without change to https://www.regulations.gov,
including any personal and/or business confidential information
provided. To confirm receipt of your comment(s), please check https://www.regulations.gov, approximately two to three days after submission
to verify posting.
FOR FURTHER INFORMATION CONTACT: Mr. Michael O. Jackson, Procurement
Analyst, at 202-208-4949, or by email at [email protected], for
clarification of content. For information pertaining to status or
publication schedules, contact the Regulatory Secretariat Division at
202-501-4755 or [email protected]. Please cite FAR case 2019-013.
SUPPLEMENTARY INFORMATION:
I. Background
This rule proposes to amend multiple FAR parts to further implement
41 U.S.C. 1908. Section 1908 requires an adjustment every five years
(on October 1 of each year evenly divisible by five) of statutory
acquisition-related thresholds for inflation, using the Consumer Price
Index (CPI) 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). As
a matter of policy, DoD, GSA, and NASA are also proposing to use the
same methodology to adjust nonstatutory FAR acquisition-related
thresholds on October 1, 2020.
DoD, GSA, and NASA have published two proposed rules and one final
rule that will reduce the complexity and impact of the October 1, 2020,
threshold adjustments throughout the FAR. The changes implemented
through these rules significantly reduce the number of cite-specific
inflation adjustments in the FAR and associated matrix.
FAR Case 2018-004, published as a proposed rule on October 2, 2019
(84 FR 52420) will implement section 217(b) of the National Defense
Authorization Act (NDAA) for Fiscal Year (FY) 2017 (Pub. L. 114-328)
and sections 805, 806, and 1702(a) of the NDAA for FY 2018 (Pub. L.
115-91), to increase the micro-purchase threshold (MPT) and simplified
acquisition thresholds (SAT) throughout the FAR. The case also changes
some stated dollar thresholds to text to ensure continued alignment
with the value defined in FAR subpart 2.101.
FAR Case 2018-005, published as a proposed rule October 2, 2019 (84
FR 52428), implements section 811 of the National Defense Authorization
Act (NDAA) for Fiscal Year (FY) 2018 that amended 10 U.S.C. 2306a, Cost
or Pricing Data: Truth in Negotiations and 41 U.S.C. 3502, Required
cost or pricing data and certification. The case increases the
threshold for requesting certified cost or pricing data from $750,000
to $2 million for contracts entered into after June 30, 2018.
FAR Case 2018-007, published as a final rule on May 6, 2020 (85 FR
27088), implements section 821 of the NDAA for FY 2018 (Pub. L. 115-
91), which made inflation adjustments of statutory acquisition-related
thresholds under 41 U.S.C. 1908 applicable to existing contracts and
subcontracts that contain the clause to implement the statute and are
in effect on the date of the adjustment. This case replaces throughout
FAR part 52, as appropriate, numerical values based on the value of the
MPT or the SAT with the term ``micro-purchase threshold'' or
``simplified acquisition threshold''. When such terms are used, there
is a reference to the definition in FAR 2.101. In addition to the MPT
and SAT, numerical values for certain thresholds will be replaced with
a reference to the applicable FAR text that specifies the numerical
threshold.
This is the fourth review of FAR acquisition-related thresholds
since the statute was passed on October 28, 2004 (section 807 of the
Ronald W. Reagan National Defense Authorization Act for Fiscal Year
2005). The last review was conducted under FAR case 2014-022 during FY
2015. The final rule under that case was published in the Federal
Register on July 2, 2015 (80 FR 38293), effective October 1, 2015.
II. Discussion and Analysis
A. What is an acquisition-related threshold?
This case builds on the review of FAR thresholds in FY 2005, FY
2010, and FY 2015, using the same interpretation of an acquisition-
related threshold. 41 U.S.C. 1908 is applicable to ``a dollar threshold
that is specified in law as a factor in defining the scope of the
applicability of a policy, procedure, requirement, or restriction
provided in that law to the procurement of property or services by an
executive agency, as the [FAR] Council determines.''
There are other thresholds in the FAR that, while not specified in
law, nevertheless meet all the other criteria. These thresholds may
have their origin in Executive Order or regulation. Therefore, the FAR
Council has determined, that in this case, ``acquisition-related
threshold'' has a broader meaning, i.e., a threshold that is specified
in law, Executive Order, or regulation as a factor in defining the
scope of the applicability of a policy,
[[Page 39147]]
procedure, requirement, or restriction provided in that law, Executive
Order, or regulation to the procurement of property or services by an
Executive agency. DoD, GSA, and NASA conclude that acquisition-related
thresholds are generally tied to the value of a contract, subcontract,
or modification.
Examples of thresholds that are not ``acquisition-related,'' as
defined in this case, are thresholds relating to claims, penalties,
withholding, payments, required levels of insurance, small business
size standards, liquidated damages, protests, etc. This rule does not
address thresholds that are not acquisition-related.
B. What acquisition-related thresholds are not subject to escalation
adjustment under this case?
41 U.S.C. 1908 does not permit escalation of acquisition-related
thresholds established by the Construction Wage Rate Requirements
statute (Davis Bacon Act), the Service Contract Labor Standards
statute, or the United States Trade Representative pursuant to the
authority of the Trade Agreements Act of 1979.
Also, the statute does not authorize the FAR to escalate thresholds
originating in Executive Order or the implementing agency (such as the
Department of Labor or the Small Business Administration), unless the
Executive order or agency regulations are first amended.
C. How do the Defense Acquisition Regulations Council and the Civilian
Agency Acquisition Council (the Councils) analyze a statutory
acquisition-related threshold?
If an acquisition-related threshold is based on statute, the matrix
at https://www.regulations.gov identifies the statute and the statutory
threshold, including the original threshold and any FAR revisions.
With the exception of thresholds set by the Construction Wage Rate
Requirements statute (Davis-Bacon Act), Service Contract Labor
Standards statute, and the United States Trade Representative pursuant
to the authority of the Trade Agreements Act of 1979, 41 U.S.C. 1908
requires that the FAR Council adjust the acquisition-related thresholds
for inflation using the CPI for all urban consumers. Acquisition-
related thresholds in statutes that were in effect on October 1, 2000,
are only subject to escalation from that date forward. For purposes of
this proposed rule, the matrix includes calculation of escalation based
on the estimated CPI value for March 2020 (currently projected at
258.6) divided by the CPI for the date of enactment of the statute or
regulation (October 2000, for statutes enacted prior to October 1,
2000). The Councils will subsequently adjust as necessary before
issuance of the final rule.
Once the escalation factor is applied to the acquisition-related
threshold, then the threshold must be rounded as follows:
<$10,000............................. Nearest $500.
$10,000-<$100,000.................... Nearest $5,000.
$100,000-<$1 million................. Nearest $50,000.
$1 million-<$10 million.............. Nearest $500,000.
$10 million-<$100 million............ Nearest $5 million.
$100 million-<$1 billion............. Nearest $50 million.
$1 billion or more................... Nearest $500 million.
Note, since the last adjustment in 2015, the calculation formula
for over $1 million was revised in 41 U.S.C. 1908.
The calculations in this proposed rule are all based on the base
year amount, because escalated amounts in the 2015 rule were subject to
rounding and using those amounts as the base would distort future
calculations.
In 2015, some thresholds, although subject to inflation
calculation, did not actually change, because the inflation in 2015 was
insufficient to overcome the rounding requirements--i.e., the
escalation factor, when applied, did not cause the escalated values to
be high enough to round to the next higher value. However, in FY 2020,
some thresholds that did not escalate in 2015 have increased through
other statutory actions or will now escalate because of five additional
years of inflation. Likewise, some thresholds that were escalated in
2015 will not escalate in 2020.
The thresholds for defining a major system differ for the civilian
agencies and DoD. The FAR will continue to escalate the major systems
threshold for the civilian agencies, however, DoD has determined that
for DoD, the major systems thresholds in the FAR must be consistent
with the major systems thresholds in DoD Instruction 5000.02,
established in accordance with the authority in 10 U.S.C. 2302d(c)(1).
For the purposes of this rule, the thresholds are unchanged.
This proposed rule has been coordinated with the Department of
Labor and the Small Business Administration in areas of the regulation
for which they are the lead agency.
D. How do the Councils analyze a nonstatutory acquisition-related
threshold?
No statutory authorization is required to escalate thresholds that
are policy-based within the FAR. For consistency, escalation of the FAR
policy acquisition-related thresholds is recommended using the same
formula applied to the statutory thresholds, unless there is a valid
reason for not doing so.
E. What is the effect of this proposed rule on the most heavily-used
thresholds?
This rule includes the following proposed changes to heavily-used
thresholds. All these inflation raises assume that the current rate of
inflation continues.
The micro-purchase threshold at FAR 2.101 was raised to
$10,000 by statute (see FAR Case 2018-004). No further increase to the
basic threshold is made at this time, as there has been insufficient
inflation. Paragraph 3(ii) of the definition, for acquisitions to
support contingency operations or to facilitate defense against certain
attacks, is proposed to increase from $30,000 to $35,000.
The simplified acquisition threshold was changed to
$250,000 by statute (see FAR Case 2018-004). No further increase in the
basic threshold is proposed, as there has been insufficient inflation.
Paragraph (1)(i) of the definition for acquisitions to support
contingency operations or to facilitate defense against certain
attacks, is proposed to increase from $750,000 to $800,000.
The preaward and post-award notices (FAR part 5) remain at
$25,000 because of trade agreements.
The requirements for limiting competition (FAR part 6) to
eligible 8(a) awards over $22 million is increased to $25 million.
The simplified procedures for certain commercial items
ceiling (FAR 13.500) will increase from $7 million to $7.5 million. For
acquisitions described at 13.500(c), the ceiling will increase from
$13.5 million to $15 million.
The cost or pricing data threshold (FAR 15.403-4) was
increased by statute from $750,000 to $2 million (see FAR Case 2018-
005) and is not proposed for further increase in this case.
The prime contractor subcontracting plan (FAR 19.702)
floor will increase from $700,000 to $750,000, but the construction
threshold of $1.5 million will not change. Standard Form 294 at General
Instruction 3 has a reference to $700,000, which will be changed.
The threshold for reporting first-tier subcontract
information including executive compensation will not change (FAR
subpart 4.14 and 52.204-10).
This proposed rule is based on a projected CPI of 258.6 for March
2020.
[[Page 39148]]
If the actual CPI for March 2020 is higher than 258.6, then additional
statutory thresholds may be subject to escalation in the final rule,
even though not included in the proposed rule.
III. Applicability to Contracts at or Below the Simplified Acquisition
Threshold (SAT) and for Commercial Items, Including Commercially
Available Off-the-Shelf (COTS) Items
This proposed rule does not create any new provisions or clauses,
nor does it change the applicability of any existing provisions or
clauses included in solicitations and contracts valued at or below the
SAT, or for commercial items, including COTS items, except for the
changes in the thresholds themselves.
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 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 is not a significant regulatory action and, therefore, was not
subject to review under section 6(b) of E.O. 12866, Regulatory Planning
and Review, dated September 30, 1993. This rule is not a major rule
under 5 U.S.C. 804.
V. Executive Order 13771
The rule is not subject to E.O. 13771, because this rule is not a
significant regulatory action under E.O. 12866.
VI. Regulatory Flexibility Act
DoD, GSA, and NASA do not expect this rule to have a significant
economic impact on a substantial number of small entities within the
meaning of the Regulatory Flexibility Act, 5 U.S.C. 601, et seq.,
because the rule maintains the status quo by adjusting thresholds for
actual inflationary increases in the CPI. However, an Initial
Regulatory Flexibility Analysis has been performed and is summarized as
follows:
This rule will amend the Federal Acquisition Regulation to
implement 41 U.S.C. 1908 and to amend other acquisition-related
dollar thresholds that are based on policy rather than statute in
Order to adjust for the changing value of the dollar. 41 U.S.C. 1908
requires adjustment every five years of statutory acquisition-
related dollar thresholds, except for Construction Wage Rate
Requirements statute (Davis-Bacon Act), Service Contract Labor
Standards statute, and trade agreements thresholds. While reviewing
all statutory acquisition-related thresholds, this case presented an
opportunity to also review all nonstatutory acquisition-related
thresholds in the FAR that are based on policy.
The objective of the case is to maintain the status quo, by
adjusting acquisition-related thresholds for inflation. The legal
basis is 41 U.S.C. 1908. The statute does not authorize the FAR to
escalate thresholds originating in Executive Orders or the
implementing agency (such as the Department of Labor or the Small
Business Administration), unless the Executive Order or agency
regulations are first amended.
This rule will have a minimal impact on small business concerns
that submit offers or are awarded contracts by the Federal
Government. However, most of the threshold changes proposed in this
rule are not expected to have any significant economic impact on
small business concerns because the threshold changes are intended
to maintain the status quo by adjusting for changes in the value of
the dollar. Often any impact will be beneficial, by preventing
burdensome requirements from applying to more and more acquisitions,
as the dollar loses value.
One threshold change in this rule which may impact small
business concerns is the increase of the threshold for requiring a
justification or determination for limiting competition to eligible
8(a) participants from $22 million to $25 million. This threshold
increase is expected to benefit small businesses under the 8(a)
program by expanding their access to contract opportunities. To
assess the impact of the increase, data was requested from FPDS-NG.
For FY 2017 through FY 2019, there was an average of 300 contracts
and calls/orders between $22 million and $25 million. Of these
actions, an average of 134 went to small business concerns, 27 of
which were 8(a) program participants. We expect that many of these
awards will still go to small business concerns and potentially
increase the number of awards to 8(a) program participants.
The rule does not impose any new reporting, recordkeeping, or
compliance requirements. Changes in thresholds for approved
information collection requirements are intended to maintain the
status quo and prevent those requirements from increasing over time.
The rule does not duplicate, overlap, or conflict with any other
Federal rules.
There are no practical alternatives that will accomplish the
objectives of the statute.
The Regulatory Secretariat Division has submitted a copy of the
IRFA to the Chief Counsel for Advocacy of the Small Business
Administration. A copy of the IRFA may be obtained from the Regulatory
Secretariat Division. DoD, GSA, and NASA invite comments from small
business concerns and other interested parties on the expected impact
of this rule on small entities.
DoD, GSA, and NASA will also consider comments from small entities
concerning the existing regulations in subparts affected by the rule in
accordance with 5 U.S.C. 610. Interested parties must submit such
comments separately and should cite 5 U.S.C 610 (FAR Case 2019-013), in
correspondence.
VII. Paperwork Reduction Act
The Paperwork Reduction Act does apply. The proposed 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. By adjusting the thresholds for inflation, the
status quo for the current information collection requirements are
maintained under the following OMB clearance numbers: 9000-0006, 9000-
0007, 1250-0004, and 1293-0005.
List of Subjects in 48 CFR Parts 1, 2, 3, 5, 6, 8, 9, 10, 12, 13,
15, 16, 17, 19, 22, 26, 28, 32, 36, 42, 50, 52, and 53
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 propose amending 48 CFR parts 1, 2,
3, 5, 6, 8, 9, 10, 12, 13, 15, 16, 17, 19, 22, 26, 28, 32, 36, 42, 50,
52, and 53 as set forth below:
0
1. The authority citation for 48 CFR parts 1, 2, 3, 5, 6, 8, 9, 10, 12,
13, 15, 16, 17, 19, 22, 26, 28, 32, 36, 42, 50, 52, and 53 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
1.109 [Amended]
0
2. Amend section 1.109, in paragraph (d) by removing ``2014-022'' and
adding ``2019-013'' in its place.
PART 2--DEFINITIONS OF WORDS AND TERMS
2.101 [Amended]
0
3. Amend section 2.101, in paragraph (b)(2) by--
0
a. In the definition ``Major system'', removing from paragraph (2) ``$
2 million'' and adding ``$2.5 million'' in its place;
0
b. In the definition ``Micro-purchase threshold'', removing from
paragraph (3)(ii) ``$30,000'' and adding ``$35,000'' in its place; and
0
c. In the definition ``Simplified acquisition threshold'', removing
from paragraph (1)(i) ``$750,000'' and adding ``$800,000'' in its
place.
[[Page 39149]]
PART 3--IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF
INTEREST
3.1004 [Amended]
0
4. Amend section 3.1004 by removing from paragraphs (a), (b)(1)(i), and
(b)(3) ``$5.5 million'' and adding ``$6 million'' in their places,
respectively.
PART 5--PUBLICIZING CONTRACT ACTIONS
5.303 [Amended]
0
5. Amend section 5.303 in paragraph (a) by removing ``$4 million'' and
adding ``$4.5 million'' in its place.
PART 6--COMPETITION REQUIREMENTS
6.204 [Amended]
0
6. Amend section 6.204 in paragraph (b) by removing ``$22 million'' and
adding ``$25 million'' in its place.
6.302-5 [Amended]
0
7. Amend section 6.302-5 by removing from paragraphs (b)(4) and
(c)(2)(iii) ``$22 million'' and adding ``$25 million'' in their places,
respectively.
6.303-1 [Amended]
0
8. Amend section 6.303-1 in paragraph (b) introductory text by removing
``$22 million'' and adding ``$25 million'' in its place.
6.303-2 [Amended]
0
9. Amend section 6.303-2 by removing from the introductory text of
paragraphs (b) and (d) ``$22 million'' and adding ``$25 million'' in
their places, respectively.
6.304 [Amended]
0
10. Amend section 6.304 by--
0
a. Removing from paragraph (a)(1) ``$700,000'' and adding ``$750,000''
in its place;
0
b. Removing from paragraph (a)(2) ``$700,000'' and ``$13.5 million''
and adding ``$750,000'' and ``$15 million'' in their places,
respectively;
0
c. Removing from paragraph (a)(3) introductory text ``$13.5 million'',
``$68 million'', and ``$93 million'' and adding ``$15 million'', ``$75
million'', and ``$100 million'' in their places, respectively; and
0
d. Removing from paragraph (a)(4) ``$68 million'' and ``$93 million''
and adding ``$75 million'' and ``$100 million'' in their places,
respectively.
PART 8--REQUIRED SOURCES OF SUPPLIES AND SERVICES
8.404 [Amended]
0
11. Amend section 8.404 in paragraph (b)(2) by removing ``$550,000''
and adding ``$600,000'' in its place.
8.405-3 [Amended]
0
12. Amend section 8.405-3 by--
0
a. Removing from paragraph (a)(3)(ii) introductory text ``$112
million'' and adding ``$100 million'' in its place;
0
b. Removing from paragraph (a)(3)(iii) ``$112 million'' and adding
``$100 million'' in its place; and
0
c. Removing from paragraph (a)(7)(v) ``$112 million'' and adding
``$100 million'' in its place.
8.405-6 [Amended]
0
13. Amend section 8.405-6 by--
0
a. Removing from paragraph (d)(1) ``$700,000'' and adding ``$750,000''
in its place;
0
b. Removing from paragraph (d)(2) ``$700,000'' and ``$13.5 million''
and adding ``$750,000'' and ``$15 million'' in their places,
respectively;
0
c. Removing from paragraph (d)(3) introductory text ``$13.5 million'',
``$68 million'', and ``$93 million'' and adding ``$15 million'', ``$75
million'', and ``$100 million'' in their places, respectively; and
0
d. Removing from paragraph (d)(4) ``$68 million'' and ``$93 million''
and adding ``$75 million'' and ``$100 million'' in their places,
respectively.
PART 9--CONTRACTOR QUALIFICATIONS
9.104-5 [Amended]
0
14. Amend section 9.104-5 in paragraph (c) by removing ``$5,000,000''
and adding ``$5.5 million'' in its place.
9.104-7 [Amended]
0
15. Amend section 9.104-7 by--
0
a. Removing from paragraphs (b) and (c)(1) ``$550,000'' and adding
``$600,000'' in their places, respectively; and
0
b. Removing from paragraph (e) ``$5,000,000'' and adding ``$5.5
million'' in its place.
9.405-2 [Amended]
0
16. Amend section 9.405-2 in paragraph (b) introductory text by--
0
a. Removing from the second sentence ``$35,000'' and adding
``$40,000'' in its place; and
0
b. Removing from the third sentence ``$35,000'' and adding ``$40,000''
in its place.
9.409 [Amended]
0
17. Amend section 9.409 by removing ``$35,000'' and adding ``$40,000''
in its place.
PART 10--MARKET RESEARCH
10.001 [Amended]
0
18. Amend section 10.001 in paragraph (d) by removing ``$5.5 million''
and adding ``$6 million'' in its place.
10.003 [Amended]
0
19. Amend section 10.003 by removing ``$5.5 million'' and adding ``$6
million'' in its place.
PART 12--ACQUISITION OF COMMERCIAL ITEMS
12.102 [Amended]
0
20. Amend section 12.102 in paragraph (f)(2) by removing ``$19
million'' and adding ``$20 million'' in its place.
12.203 [Amended]
0
21. Amend section 12.203 by removing ``$7 million ($13 million'' and
adding ``$7.5 million ($15 million'' in its place.
PART 13--SIMPLIFIED ACQUISITION PROCEDURES
13.000 [Amended]
0
22. Amend section 13.000 by removing ``$7 million ($13 million'' and
adding ``$7.5 million ($15 million'' in its place.
13.003 [Amended]
0
23. Amend section 13.003 by removing from paragraphs (c)(1)(ii) and
(g)(2) ``$7 million ($13 million'' and adding ``$7.5 million ($15
million'' in their places, respectively.
13.201 [Amended]
0
24. Amend section 13.201 in paragraph (g)(1)(ii) by removing
``$30,000'' and adding ``$35,000'' in its place.
13.303-5 [Amended]
0
25. Amend section 13.303-5 by--
0
a. Removing from paragraph (b)(1) ``$7 million'' and ``$13 million''
and adding ``$7.5 million'' and ``$15 million'' in their places,
respectively; and
0
b. Removing from paragraph (b)(2) ``$7 million ($13 million'' and
adding ``$7.5 million ($15 million'' in its place.
13.402 [Amended]
0
26. Amend section 13.402 in paragraph (a) by removing ``$35,000'' and
adding ``$40,000'' in its place.
13.500 [Amended]
0
27. Amend section 13.500 by--
[[Page 39150]]
0
a. Removing from paragraph (a) ``$7 million ($13 million'' and adding
``$7.5 million ($15 million'' in its place; and
0
b. Removing from paragraph (c) introductory text ``$13 million'' and
adding ``$15 million'' in its place.
13.501 [Amended]
0
28. Amend section 13.501 by--
0
a. Removing from paragraph (a)(2)(i) ``$700,000'' and adding
``$750,000'' in its place;
0
b. Removing from paragraph (a)(2)(ii) ``$700,000'' and ``$13.5
million'' and adding ``$750,000'' and ``$15 million'' in their places,
respectively;
0
c. Removing from paragraph (a)(2)(iii) ``$13.5 million'', ``$68
million'', and ``$93 million'' and adding ``$15 million'', ``$75
million'', and ``$100 million'' in their places, respectively; and
0
d. Removing from paragraph (a)(2)(iv) ``$68 million'' and ``$93
million'' and adding ``$75 million'' and ``$100 million'' in their
places, respectively.
PART 15--CONTRACTING BY NEGOTIATION
15.403-1 [Amended]
0
29. Amend section 15.403-1 in paragraph (c)(3)(iv) by removing ``$19
million'' and adding ``$20 million'' in its place.
15.404-3 [Amended]
0
30. Amend section 15.404-3 in paragraph (c)(1)(i) by removing ``$13.5
million'' and adding ``$15 million'' in its place.
15.407-2 [Amended]
0
31. Amend section 15.407-2 by removing from paragraphs (c)(1) and
(c)(2) introductory text ``$13.5 million'' and adding ``$15 million''
in their places, respectively.
15.408 [Amended]
0
32. Amend section 15.408, in Table 15-2, section II, paragraph A.(2)
by removing ``$13.5 million'' and adding ``$15 million'' in its place.
PART 16--TYPES OF CONTRACTS
16.503 [Amended]
0
33. Amend section 16.503 in paragraph (b)(2) by removing ``$112
million'' and adding ``$100 million'' in its place.
16.504 [Amended]
0
34. Amend section 16.504 by--
0
a. Removing from paragraphs (c)(1)(ii)(D)(1) and (D)(3) introductory
text, ``$112 million'' and adding ``$100 million'' in their places,
respectively; and
0
b. Removing from paragraph (c)(2)(i) introductory text ``$13.5
million'' and adding ``$15 million'' in its place.
16.505 [Amended]
0
35. Amend section 16.505 by--
0
a. Removing from paragraph (b)(1)(i) introductory text ``$3,500'' and
adding ``$4,000'' in its place;
0
b. Removing from paragraph (b)(1)(iv) introductory text ``$5.5
million'' twice, and adding ``$6 million'' in their places,
respectively;
0
c. Removing from paragraph (b)(2)(i) introductory text and
(b)(2)(ii)(A) ``$3,500'' and adding ``$4,000'' in their places,
respectively;
0
d. Removing from paragraph (b)(2)(ii)(C)(1) ``$700,000'' and adding
``$750,000'' in its place;
0
e. Removing from paragraph (b)(2)(ii)(C)(2) ``$700,000'' and ``$13.5
million'' and adding ``$750,000'' and ``$15 million'' in their places,
respectively;
0
f. Removing from paragraph (b)(2)(ii)(C)(3) introductory text ``$13.5
million'', ``$68 million, and ``$93 million'' and adding ``$15
million'', ``$75 million'' and ``$100 million'' in their places,
respectively;
0
g. Removing from paragraph (b)(2)(ii)(C)(4) ``$68 million'' and ``$93
million'' and adding ``$75 million'' and ``$100 million'' in their
places, respectively; and
0
h. Removing from paragraph (b)(6) ``$5.5 million'' and ``$5.5
million'', and adding ``$6 million'' and ``$6 million'' in their
places, respectively.
16.506 [Amended]
0
36. Amend section 16.506 by--
0
a. Removing from paragraphs (f) and (g) ``$13.5 million'' and adding
``$15 million'' in their places, respectively; and
0
b. Removing from paragraph (h) ``$5.5 million'' and adding ``$6
million'' in its place.
PART 17--SPECIAL CONTRACTING METHODS
17.108 [Amended]
0
37. Amend section 17.108 by--
0
a. Removing from paragraph (a) ``$13.5 million'' and adding ``$15
million'' in its place; and
0
b. Removing from paragraph (b) ``$135.5 million'' and adding ``$150
million'' in its place.
17.500 [Amended]
0
38. Amend section 17.500 in paragraph (c)(2) by removing ``$550,000''
and adding ``$600,000'' in its place.
PART 19--SMALL BUSINESS PROGRAMS
19.702 [Amended]
0
39. Amend section 19.702 by removing from paragraphs (a)(1)(i) through
(iii) ``$700,000'' and adding ``$750,000'' in their places,
respectively.
19.704 [Amended]
0
40. Amend section 19.704 by--
0
a. Removing from paragraph (a) introductory text ``plan'' and adding
``plan required'' in its place; and
0
b. Removing from paragraph (a)(9) ``$700,000'' and adding ``$750,000''
in its place.
19.708 [Amended]
0
41. Amend section 19.708 in paragraph (b)(1) by removing ``$700,000''
and adding ``$750,000'' in its place.
19.805-1 [Amended]
0
42. Amend section 19.805-1 in paragraph (a)(2) by removing ``$7
million'' and ``$4 million'' and adding ``$7.5 million'' and ``$4.5
million'' in their places, respectively.
19.808-1 [Amended]
0
43. Amend section 19.808-1 in paragraph (a) by removing ``$22
million'' and adding ``$25 million'' in its place.
19.1306 [Amended]
0
44. Amend section 19.1306 by--
0
a. Removing from paragraph (a)(2)(i) ``$7 million'' and adding ``$7.5
million'' in its place; and
0
b. Removing from paragraph (a)(2)(ii) ``$4 million'' and adding ``$4.5
million'' in its place.
19.1406 [Amended]
0
45. Amend section 19.1406 by--
0
a. Removing from paragraph (a)(2)(i) ``$6.5 million'' and adding ``$7
million'' in its place; and
0
b. Removing from paragraph (a)(2)(ii) ``$4 million'' and adding ``$4.5
million'' in its place.
PART 22--APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS
22.1103 [Amended]
0
46. Amend section 22.1103 by removing ``$700,000'' and adding
``$750,000'' in its place.
22.1701 [Amended]
0
47. Amend section 22.1701 in paragraph (b)(2) by removing ``$500,000''
and adding ``$550,000'' in its place.
[[Page 39151]]
22.1703 [Amended]
0
48. Amend section 22.1703 by removing from paragraphs (c)(1)(i)(B) and
(c)(3)(i)(B) ``$500,000'' and adding ``$550,000'' in their places,
respectively.
22.1705 [Amended]
0
49. Amend section 22.1705 in paragraph (b)(1) by removing ``$500,000''
and adding ``$550,000'' in its place.
PART 26--OTHER SOCIOECONOMIC PROGRAMS
26.404 [Amended]
0
50. Amend section 26.404 by removing ``$25,000'' and adding
``$30,000'' in its place.
PART 28--BONDS AND INSURANCE
28.102-1 [Amended]
0
51. Amend section 28.102-1 in paragraph (b)(1) introductory text by
removing ``$35,000'' and adding ``$40,000'' in its place.
28.102-2 [Amended]
0
52. Amend section 28.102-2 in paragraph (c) paragraph heading by
removing ``$35,000'' and adding ``$40,000'' in its place.
28.102-3 [Amended]
0
53. Amend section 28.102-3 in paragraph (b) by removing ``$35,000''
and adding ``$40,000'' in its place.
PART 32--CONTRACT FINANCING
32.104 [Amended]
0
54. Amend section 32.104 by removing from paragraphs (d)(2)(i) and
(ii) ``$2.5 million'' and adding ``$3 million'' in their places,
respectively.
PART 36--CONSTRUCTION AND ARCHITECT-ENGINEER CONTRACTS
36.303-1 [Amended]
0
55. Amend section 36.303-1 in paragraph (a)(4) by removing ``$4
million'' and adding ``$4.5 million'' in its place.
PART 42--CONTRACT ADMINISTRATION AND AUDIT SERVICES
42.709-0 [Amended]
0
56. Amend section 42.709-0 in paragraph (b) by removing ``$750,000''
and adding ``$800,000'' in its place.
42.709-6 [Amended]
0
57. Amend section 42.709-6 by removing ``$750,000'' and adding
``$800,000'' in its place.
42.1502 [Amended]
0
58. Amend section 42.1502 by--
0
a. Removing from paragraph (e) ``$700,000'' twice and adding
``$750,000'' in their places, respectively; and
0
b. Removing from paragraph (f) ``$35,000'' twice and adding
``$40,000'' in their places, respectively.
PART 50--EXTRAORDINARY CONTRACTUAL ACTIONS AND THE SAFETY ACT
50.102-1 [Amended]
0
59. Amend section 50.102-1 in paragraph (b) by removing ``$70,000''
and adding ``$75,000'' in its place.
50.102-3 [Amended]
0
60. Amend section 50.102-3 by--
0
a. Removing from paragraph (b)(4) ``$34 million'' and adding ``$40
million'' in its place; and
0
b. Removing from paragraphs (e)(1)(i) and (ii) ``$70,000'' and adding
``$75,000'' in their places.
PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
0
61. Amend section 52.248-3 by revising the date of the clause, and
removing from paragraph (h) ``$70,000'' and adding ``$75,000'' in its
place.
The revision reads as follows:
52.248-3 Value Engineering--Construction.
* * * * *
Value Engineering--Construction (DATE)
* * * * *
PART 53--FORMS
53.219 [Amended]
0
62. Amend section 53.219 by removing ``(Rev. 8/2016)'' and adding
``(DATE)'' in its place.
[FR Doc. 2020-13334 Filed 6-29-20; 8:45 am]
BILLING CODE 6820-EP-P
