Federal Acquisition Regulation; Federal Acquisition Circular 2020-07; Introduction, 40060-40061 [2020-12761]
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40060
Federal Register / Vol. 85, No. 128 / Thursday, July 2, 2020 / Rules and Regulations
and National Aeronautics and Space
Administration (NASA).
DEPARTMENT OF DEFENSE
GENERAL SERVICES
ADMINISTRATION
ACTION:
NATIONAL AERONAUTICS AND
SPACE ADMINISTRATION
SUMMARY:
Summary presentation of final
rules.
48 CFR Chapter 1
[Docket No. FAR–2020–0051, Sequence No.
3]
Federal Acquisition Regulation;
Federal Acquisition Circular 2020–07;
Introduction
Department of Defense (DoD),
General Services Administration (GSA),
AGENCY:
This document summarizes
the Federal Acquisition Regulation
(FAR) rules agreed to by the Civilian
Agency Acquisition Council and the
Defense Acquisition Regulations
Council (Councils) in this Federal
Acquisition Circular (FAC) 2020–07. A
companion document, the Small Entity
Compliance Guide (SECG), follows this
FAC.
RULES section of this issue of the
Federal Register.
The
analyst whose name appears in the table
below in relation to the FAR case. For
information pertaining to status or
publication schedules, contact the
Regulatory Secretariat Division at 202–
501–4755 or GSARegSec@gsa.gov.
FOR FURTHER INFORMATION CONTACT:
For effective dates see the
separate documents published in the
DATES:
RULE LISTED IN FAC 2020–07
Item
Subject
I .........................
II ........................
III .......................
IV .......................
V ........................
VI .......................
Requirements for DD Form 254, Contract Security Classification Specification ............
Increased Micro-Purchase and Simplified Acquisition Thresholds .................................
Evaluation Factors for Multiple-Award Contracts ............................................................
Modifications to Cost or Pricing Data Requirements ......................................................
Orders Issued Via Fax or Electronic Commerce ............................................................
Technical Amendments.
The FAC, including the
SECG, is available via the internet at
https://www.regulations.gov.
SUPPLEMENTARY INFORMATION:
Summaries for each FAR rule follow.
For the actual revisions and/or
amendments made by these FAR rules,
refer to the specific item numbers and
subjects set forth in the documents
following these item summaries. FAC
2020–07 amends the FAR as follows:
ADDRESSES:
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Item I—Requirements for DD Form 254,
Contract Security Classification
Specification (FAR Case 2015–002)
This final rule amends the FAR to
provide procedures for use of the DD
Form 254, Contract Security
Classification Specification, and the use
of the Procurement Integrated Enterprise
Environment (PIEE) for electronic
submission to streamline the
submission process. It requires use of
the DD Form 254 by DoD components,
and by nondefense agencies that have
industrial security services agreements
with DoD, and requires the use of the
National Industrial Security Program
Contracts Classification System module
of the PIEE, unless the nondefense
agency has an existing DD Form 254
information system.
Item II—Increased Micro-Purchase and
Simplified Acquisition Thresholds
(FAR Case 2018–004)
This final rule increases the micropurchase threshold (MPT) from $3,500
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FAR case
to $10,000, increases the simplified
acquisition threshold (SAT) from
$150,000 to $250,000, and increases the
special emergency procurement
authority in paragraph (2) from
$300,000 to $500,000. The rule also
clarifies certain procurement terms, as
well as aligns some non-statutory
thresholds with the MPT and SAT. It
implements section 217(b) of the
National Defense Authorization Act
(NDAA) for Fiscal Year (FY) 2017 and
sections 805, 806, and 1702(a) of the
NDAA for FY 2018.
This final rule will likely have a
positive significant economic impact on
a substantial number of small entities.
Item III—Evaluation Factors for
Multiple-Award Contracts (FAR Case
2017–010)
DoD, GSA, and NASA are issuing a
final rule amending the FAR to
implement section 825 of the National
Defense Authorization Act for Fiscal
Year 2017 (Pub. L. 114–328). The final
rule modifies the requirement to
consider price or cost as an evaluation
factor for the award of certain multipleaward task order contracts issued by
DoD, NASA, and the Coast Guard.
Specifically, the rule provides that, at
the Government’s discretion,
solicitations for multiple-award
contracts for the same or similar
services that state the Government
intends to award a contract to each
qualifying offeror do not require price or
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2015–002
2018–004
2017–010
2018–005
2018–022
Analyst
Glover.
Jackson.
Jackson.
Delgado.
Glover.
cost as an evaluation factor for contract
award. This exception does not apply to
solicitations for multiple-award
contracts that provide for sole source
orders pursuant to 8(a) of the Small
Business Act (15 U.S.C. 637(a)). When
price or cost is not evaluated during
contract award, the contracting officer
shall consider price or cost as a factor
for the award of each order under the
contract. Section 825 also amends 10
U.S.C. 2304c(b) to add exemptions for
the use of competitive procedures when
placing an order under a multiple-award
contract.
Item IV—Modifications to Cost or
Pricing Data Requirements (FAR Case
2018–005)
This final rule increases the threshold
for requesting certified cost or pricing
data from $750,000 to $2 million for
contracts entered into after June 30,
2018. For earlier contracts, contractors
may request a modification to use the
new clause Alternates, with the new $2
million threshold for subcontracts
awarded on or after July 1, 2018. The
rule implements section 811 of the
National Defense Authorization Act for
Fiscal Year 2018, Public Law 115–91.
This final rule will not have a
significant economic impact on a
substantial number of small entities.
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Federal Register / Vol. 85, No. 128 / Thursday, July 2, 2020 / Rules and Regulations
Item V—Orders Issued Via Fax or
Electronic Commerce (FAR Case 2018–
022)
This final rule amends a FAR clause
to permit the issuance of task or
delivery orders via facsimile or
electronic commerce and clarify when
an order is considered ‘‘issued’’ when
using these methods. As a result,
contracting officers will no longer need
to include supplemental ordering
language in the contract when
anticipating the use of fax or electronic
commerce to issue task or delivery
orders. The authority to issue orders
orally must still be separately
authorized in the contract. A common
understanding of when a task or
delivery order is considered issued, in
such situations, will be applied
Governmentwide.
Item VI—Technical Amendments
William F. Clark,
Director, Office of Government-wide
Acquisition Policy, Office of Acquisition
Policy, Office of Government-wide Policy.
Federal Acquisition Circular (FAC) 2020–
07 is issued under the authority of the
Secretary of Defense, the Administrator of
General Services, and the Administrator of
National Aeronautics and Space
Administration.
Unless otherwise specified, all Federal
Acquisition Regulation (FAR) and other
directive material contained in FAC 2020–07
is effective July 2, 2020 except for Items I, III,
IV and V, which are effective August 3, 2020,
and item II, which is effective August 31,
2020.
Kim Herrington,
Acting Principal Director, Defense Pricing
and Contracting, Department of Defense.
Jeffrey A. Koses,
Senior Procurement Executive/Deputy CAO,
Office of Acquisition Policy, U.S. General
Services Administration.
William G. Roets, II,
Acting Assistant Administrator, Office of
Procurement, National Aeronautics and
Space Administration.
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GENERAL SERVICES
ADMINISTRATION
NATIONAL AERONAUTICS AND
SPACE ADMINISTRATION
48 CFR Parts 1, 2, 4, 52, and 53
[FAC 2020–07; FAR Case 2015–002; Item
I; Docket No. FAR–2015–0002; Sequence
No. 1]
RIN 9000–AN40
Federal Acquisition Regulation:
Requirements for DD Form 254,
Contract Security Classification
Specification
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
require electronic submission of the DD
Form 254, Contract Security
Classification Specification.
DATES: Effective: August 3, 2020.
FOR FURTHER INFORMATION CONTACT: Mr.
Curtis E. Glover, Sr., Procurement
Analyst, at 202–501–1448 or
curtis.glover@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 FAR Case
2015–002.
SUPPLEMENTARY INFORMATION:
SUMMARY:
Editorial changes are made at FAR
5.205, 9.109–4, 27.405–3, 52.209–13,
and 52.212–5.
[FR Doc. 2020–12761 Filed 7–1–20; 8:45 am]
DEPARTMENT OF DEFENSE
I. Background
DoD, GSA, and NASA published a
proposed rule in the Federal Register at
84 FR 33201 on July 12, 2019, proposing
to amend the FAR to update and clarify
the requirements for using the DD Form
254, Contract Security Classification
Specification. This rule amends the
FAR, in part, to provide procedures for
use of the DD Form 254 and the
requirement to use the Procurement
Integrated Enterprise Environment
(PIEE), to—
• Streamline the submission process
for the existing DD Form 254 and enable
businesses to submit an electronic form
once, instead of repeated paper
submissions;
• Require use of the DD Form 254 by
nondefense agencies that have
industrial security services agreements
with DoD, and DoD components, to
specify the security classification for a
contract involving access to information
classified as ‘‘Confidential,’’ ‘‘Secret,’’ or
‘‘Top Secret;’’
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• Require agency preparation of the
DD Form 254 using the National
Industrial Security Program Contracts
Classification System module of the
PIEE unless a nondefense agency has an
existing DD Form 254 information
system.
Five respondents 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 Significant Changes
There were no changes from the
proposed rule as a result of the public
comments received. There were minor
editorial changes made to the proposed
rule, see Section C below.
B. Analysis of Public Comments
1. Commercial and Government Entity
(CAGE) Code Reporting
Comment: Two respondents
expressed concern regarding the use of
‘‘Unique CAGE code’’; stating that in
some instances a facility will have
multiple locations with the same CAGE
codes. Clarification of the term
‘‘unique’’ CAGE code was requested.
Response: In accordance with the
National Industrial Security Program
Operating Manual (NISPOM) DoD
5220.22–M and FAR 52.204–16(g), each
contractor and subcontractor location of
performance listed on a DD Form 254 is
required to have a unique CAGE code;
and registration in the System for
Award Management (SAM) is not
required for contractor and
subcontractor performance locations
solely for the purposes of the DD Form
254. FAR 52.204–16, Commercial and
Government Entity (CAGE) Code
Reporting, as prescribed at FAR
4.1804(a), is amended to add paragraph
(g) to require subcontractors requiring
access to classified information under a
contract to be identified with a CAGE
code on the DD Form 254. Contractors
shall ensure that a subcontractor
requiring access to classified
information provide its CAGE code with
its name and location address or
otherwise include it prominently in the
proposal. In addition, each location of
subcontractor performance must be
listed on the DD Form 254 and is
required to reflect a corresponding
unique CAGE code for each listed
location unless the work is being
performed at a Government facility, in
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]]>Agencies
[Federal Register Volume 85, Number 128 (Thursday, July 2, 2020)]
[Rules and Regulations]
[Pages 40060-40061]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-12761]
[[Page 40059]]
Vol. 85
Thursday,
No. 128
July 2, 2020
Part IV
Department of Defense
General Services Administration
National Aeronautics and Space Administration
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48 CFR Chapter 1
Federal Acquisition Regulations; Final Rules
Federal Register / Vol. 85, No. 128 / Thursday, July 2, 2020 / Rules
and Regulations
[[Page 40060]]
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Chapter 1
[Docket No. FAR-2020-0051, Sequence No. 3]
Federal Acquisition Regulation; Federal Acquisition Circular
2020-07; Introduction
AGENCY: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Summary presentation of final rules.
-----------------------------------------------------------------------
SUMMARY: This document summarizes the Federal Acquisition Regulation
(FAR) rules agreed to by the Civilian Agency Acquisition Council and
the Defense Acquisition Regulations Council (Councils) in this Federal
Acquisition Circular (FAC) 2020-07. A companion document, the Small
Entity Compliance Guide (SECG), follows this FAC.
DATES: For effective dates see the separate documents published in the
RULES section of this issue of the Federal Register.
FOR FURTHER INFORMATION CONTACT: The analyst whose name appears in the
table below in relation to the FAR case. For information pertaining to
status or publication schedules, contact the Regulatory Secretariat
Division at 202-501-4755 or [email protected].
Rule Listed in FAC 2020-07
----------------------------------------------------------------------------------------------------------------
Item Subject FAR case Analyst
----------------------------------------------------------------------------------------------------------------
I............................. Requirements for DD Form 254, 2015-002 Glover.
Contract Security
Classification Specification.
II............................ Increased Micro-Purchase and 2018-004 Jackson.
Simplified Acquisition
Thresholds.
III........................... Evaluation Factors for 2017-010 Jackson.
Multiple-Award Contracts.
IV............................ Modifications to Cost or 2018-005 Delgado.
Pricing Data Requirements.
V............................. Orders Issued Via Fax or 2018-022 Glover.
Electronic Commerce.
VI............................ Technical Amendments.........
----------------------------------------------------------------------------------------------------------------
ADDRESSES: The FAC, including the SECG, is available via the internet
at https://www.regulations.gov.
SUPPLEMENTARY INFORMATION: Summaries for each FAR rule follow. For the
actual revisions and/or amendments made by these FAR rules, refer to
the specific item numbers and subjects set forth in the documents
following these item summaries. FAC 2020-07 amends the FAR as follows:
Item I--Requirements for DD Form 254, Contract Security Classification
Specification (FAR Case 2015-002)
This final rule amends the FAR to provide procedures for use of the
DD Form 254, Contract Security Classification Specification, and the
use of the Procurement Integrated Enterprise Environment (PIEE) for
electronic submission to streamline the submission process. It requires
use of the DD Form 254 by DoD components, and by nondefense agencies
that have industrial security services agreements with DoD, and
requires the use of the National Industrial Security Program Contracts
Classification System module of the PIEE, unless the nondefense agency
has an existing DD Form 254 information system.
Item II--Increased Micro-Purchase and Simplified Acquisition Thresholds
(FAR Case 2018-004)
This final rule increases the micro-purchase threshold (MPT) from
$3,500 to $10,000, increases the simplified acquisition threshold (SAT)
from $150,000 to $250,000, and increases the special emergency
procurement authority in paragraph (2) from $300,000 to $500,000. The
rule also clarifies certain procurement terms, as well as aligns some
non-statutory thresholds with the MPT and SAT. It implements section
217(b) of the National Defense Authorization Act (NDAA) for Fiscal Year
(FY) 2017 and sections 805, 806, and 1702(a) of the NDAA for FY 2018.
This final rule will likely have a positive significant economic
impact on a substantial number of small entities.
Item III--Evaluation Factors for Multiple-Award Contracts (FAR Case
2017-010)
DoD, GSA, and NASA are issuing a final rule amending the FAR to
implement section 825 of the National Defense Authorization Act for
Fiscal Year 2017 (Pub. L. 114-328). The final rule modifies the
requirement to consider price or cost as an evaluation factor for the
award of certain multiple-award task order contracts issued by DoD,
NASA, and the Coast Guard. Specifically, the rule provides that, at the
Government's discretion, solicitations for multiple-award contracts for
the same or similar services that state the Government intends to award
a contract to each qualifying offeror do not require price or cost as
an evaluation factor for contract award. This exception does not apply
to solicitations for multiple-award contracts that provide for sole
source orders pursuant to 8(a) of the Small Business Act (15 U.S.C.
637(a)). When price or cost is not evaluated during contract award, the
contracting officer shall consider price or cost as a factor for the
award of each order under the contract. Section 825 also amends 10
U.S.C. 2304c(b) to add exemptions for the use of competitive procedures
when placing an order under a multiple-award contract.
Item IV--Modifications to Cost or Pricing Data Requirements (FAR Case
2018-005)
This final rule increases the threshold for requesting certified
cost or pricing data from $750,000 to $2 million for contracts entered
into after June 30, 2018. For earlier contracts, contractors may
request a modification to use the new clause Alternates, with the new
$2 million threshold for subcontracts awarded on or after July 1, 2018.
The rule implements section 811 of the National Defense Authorization
Act for Fiscal Year 2018, Public Law 115-91.
This final rule will not have a significant economic impact on a
substantial number of small entities.
[[Page 40061]]
Item V--Orders Issued Via Fax or Electronic Commerce (FAR Case 2018-
022)
This final rule amends a FAR clause to permit the issuance of task
or delivery orders via facsimile or electronic commerce and clarify
when an order is considered ``issued'' when using these methods. As a
result, contracting officers will no longer need to include
supplemental ordering language in the contract when anticipating the
use of fax or electronic commerce to issue task or delivery orders. The
authority to issue orders orally must still be separately authorized in
the contract. A common understanding of when a task or delivery order
is considered issued, in such situations, will be applied
Governmentwide.
Item VI--Technical Amendments
Editorial changes are made at FAR 5.205, 9.109-4, 27.405-3, 52.209-
13, and 52.212-5.
William F. Clark,
Director, Office of Government-wide Acquisition Policy, Office of
Acquisition Policy, Office of Government-wide Policy.
Federal Acquisition Circular (FAC) 2020-07 is issued under the
authority of the Secretary of Defense, the Administrator of General
Services, and the Administrator of National Aeronautics and Space
Administration.
Unless otherwise specified, all Federal Acquisition Regulation
(FAR) and other directive material contained in FAC 2020-07 is
effective July 2, 2020 except for Items I, III, IV and V, which are
effective August 3, 2020, and item II, which is effective August 31,
2020.
Kim Herrington,
Acting Principal Director, Defense Pricing and Contracting,
Department of Defense.
Jeffrey A. Koses,
Senior Procurement Executive/Deputy CAO, Office of Acquisition
Policy, U.S. General Services Administration.
William G. Roets, II,
Acting Assistant Administrator, Office of Procurement, National
Aeronautics and Space Administration.
[FR Doc. 2020-12761 Filed 7-1-20; 8:45 am]
BILLING CODE 6820-EP-P
