Federal Acquisition Regulation: Inflation Adjustment of Acquisition-Related Thresholds, 62485-62490 [2020-21690]

Download as PDF Federal Register / Vol. 85, No. 192 / Friday, October 2, 2020 / Rules and Regulations (see FAR 1.109). DoD, GSA, and NASA are also using the same methodology to change nonstatutory FAR acquisitionrelated thresholds for adjustment in 2020. This final rule will not have a significant economic impact on a substantial number of small entities. William F. Clark, Director, Office of Government-wide Acquisition Policy, Office of Acquisition Policy, Office of Government-wide Policy. [FR Doc. 2020–21691 Filed 10–1–20; 8:45 am] BILLING CODE 6820–EP–P 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, 32, 36, 42, 50, 52, and 53 [FAC 2021–01, 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: Final rule. AGENCY: DoD, GSA, and NASA are issuing a final rule amending 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 using the same methodology to adjust nonstatutory FAR acquisitionrelated thresholds in 2020. DATES: Effective: October 1, 2020. FOR FURTHER INFORMATION CONTACT: Mr. Michael O. Jackson, Procurement Analyst, at 202–208–4949 or 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. Please cite FAC 2021–01, FAR Case 2019–013. jbell on DSKJLSW7X2PROD with RULES2 SUMMARY: VerDate Sep<11>2014 21:17 Oct 01, 2020 Jkt 253001 SUPPLEMENTARY INFORMATION: I. Background DoD, GSA, and NASA published a proposed rule at 85 FR 39146 on June 30, 2020, 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 using the same methodology to adjust nonstatutory FAR acquisition-related thresholds on October 1, 2020. The preamble to the proposed rule contained detailed explanations of— • What an acquisition-related threshold is; • What acquisition-related thresholds are not subject to escalation adjustment under this case; • How the Defense Acquisition Regulations Council and the Civilian Agency Acquisition Council (Councils) analyze statutory and non-statutory acquisition-related thresholds; and • The effect of this rule on the most heavily used thresholds. DoD, GSA, and NASA implemented three rules that have reduced the complexity and impact of the October 1, 2020, threshold adjustments throughout the FAR. The changes implemented through these rules significantly reduced the number of cite-specific inflation adjustments in the FAR and associated matrix. FAR Case 2018–004, published as a final rule on July 2, 2020 (85 FR 40064) implemented 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) to $10,000 and simplified acquisition threshold (SAT) to $250,000 throughout the FAR. The case also changed 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 final rule on July 2, 2020 (85 FR 40071) implemented section 811 of the NDAA for 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 increased the threshold for requesting certified cost or pricing data from $750,000 to $2 million PO 00000 Frm 00003 Fmt 4701 Sfmt 4700 62485 for contracts entered into after June 30, 2018. FAR Case 2018–007, published as a final rule on May 6, 2020 (85 FR 27088) implemented 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 implementing section 821 and that are in effect on the date of the adjustment. The case replaced 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 have been replaced with a reference to the applicable FAR text that specifies the numerical threshold. The following list identifies the impact of this rule on heavily-used thresholds. • 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 increasing 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 increasing 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) is increased from $7 million to $7.5 million. For acquisitions described at 13.500(c), the ceiling is increasing 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 increasing in this case. • The prime contractor subcontracting plan (FAR 19.702) threshold is increasing from $700,000 to E:\FR\FM\02OCR2.SGM 02OCR2 62486 Federal Register / Vol. 85, No. 192 / Friday, October 2, 2020 / Rules and Regulations $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 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. Seven 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 comments in the development of the final rule. A. Summary of Significant Changes Minor edits were made to the final rule to account for baseline updates caused by publication of other FAR interim or final rules. The proposed rule included some thresholds that were very close but, ultimately, did not reach the statutory calculation formula amount. As a result, the Councils have removed them from the text of the final rule: FAR 9.405–2, 9.409, 13.402, $3,500 at 16.505(b), 19.1406(a)(2)(ii), 28.102–1 to 28.102–3, and 42.1502(f). In one case, for FAR 50.102–3, the statutory calculation did increase the threshold to $35 million, but this is lower than the value published in the proposed rule. Some thresholds were inadvertently omitted, but are now included because they did reach the statutory calculation formula amount: 16.503(d), 19.804–6, 19.1506, 52.209–12, 52.222–50, and 52.222–56. The FAR text also makes a correction to 52.222–50(i)(1). The paragraphs marked as (A) and (B) have been corrected to (i) and (ii), respectively. jbell on DSKJLSW7X2PROD with RULES2 B. Analysis of Public Comments A discussion of the comments is provided as follows: Comment: A respondent stated that there appeared to be an error in the proposed rule with a reference to FAR 42.709–0, as the current FAR has no 42.709–0; and did we mean the reference to 42.709–6 to be 42.709–7. VerDate Sep<11>2014 21:17 Oct 01, 2020 Jkt 253001 Response: The proposed rule contained the correct section numbering for sections 42.709–0 through 42.709–6. The Acquisition.Gov website reflected incorrect references, however, the Electronic Code of Federal Regulations reflected the correct FAR text. Comment: A respondent asked why FAR 19.804–6 and 19.1506 did not appear in the proposed rule. Response: These were inadvertently omitted. The required statutory changes now appear in the final rule. Comment: A respondent stated it is unclear why the existing thresholds at FAR 19.1406(a)(2)(i) and 19.1506(c)(1)(i) are different than those established under FAR 19.805–1. The respondent stated that prior to 2006, FAR 19.805– 1, 19.1306, and 19.1406 appear to have been identical (or similar) and one would assume that if these thresholds were adjusted based on the CPI, they would remain the same. Response: The thresholds at FAR 19.1406(a)(2)(i), 19.1506(c)(1)(i), and 19.805–1 were established by different statutes. The calculations are set by 41 U.S.C. 1908, and are based on the enactment date of the underlying statute. The calculation for FAR 19.1406(a)(2) is based on a statute enacted December 16, 2003; paragraph (a)(2)(i) will increase to $7 million, but paragraph (a)(2)(ii) was not sufficient for that threshold to change in the final rule, and will remain at $4 million. FAR 19.1506(c)(1)(i) and (ii) are subject to the inflation statute, but were inadvertently omitted from the proposed rule; they appear in the final rule with increased thresholds of $7 million and $4.5 million. The calculation for FAR 19.805–1 and 19.1306 were based on statutes enacted before October 1, 2000. For more information on the calculations please see FAR 1.109 and the matrix referenced there. Comment: A respondent recommended that the Miller Act threshold be raised to $250,000 to be in line with the increase of the SAT to $250,000. Response: There is no statute allowing this. Comment: Two respondents stated that the $35,000 payment bond thresholds at FAR 28.102–1(b)(1), 28.102–2(c), and 28.102–3(b) should not be increased, as (1) they are not acquisition-related thresholds, instead being closer to ‘‘required levels of insurance’’, and (2) the increase would harm small business by increasing the risk of nonpayment by prime contractors. Response: These thresholds are not increasing in the final rule because they did not reach the statutory calculation PO 00000 Frm 00004 Fmt 4701 Sfmt 4700 formula amount (see Section II.A. of this preamble). In regard to whether bond thresholds are considered acquisitionrelated thresholds, the Councils disagree with the commenter’s assertion that the thresholds are ‘‘required levels of insurance’’. The application of payment bond requirements are specific to a particular contract, however required levels of insurance apply more generally to a particular contractor. An example of a required level of insurance can be found at FAR 28.307–2, such as worker’s compensation insurance which is required at $100,000. In regard to the comment that the increase will harm small business, this is a policy matter which does not override the statutory requirement to apply the inflation increase to acquisition-related statutory thresholds. These particular thresholds have increased in previous FAR inflation cases, to include the most recent FAR case 2014–022, from the $25,000 found in 40 U.S.C. 3132 to the current FAR amount of $35,000. Comment: A respondent expressed general support for the rule. Response: The support is noted. 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 final rule does not create any new provisions or clauses, nor does it change the applicability or burden 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. E:\FR\FM\02OCR2.SGM 02OCR2 Federal Register / Vol. 85, No. 192 / Friday, October 2, 2020 / Rules and Regulations 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 jbell on DSKJLSW7X2PROD with RULES2 DoD, GSA, and NASA have prepared a Final Regulatory Flexibility Analysis (FRFA) consistent with the Regulatory Flexibility Act, 5 U.S.C. 601, et seq. The FRFA is summarized as follows: This final rule amends 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), 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. There were no significant issues raised by the public in response to the initial regulatory flexibility analysis. 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. The threshold changes 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 sole source 8(a) awards made pursuant to FAR 6.303–1 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 the Federal Procurement Data System. 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. This rule does not include any new reporting, recordkeeping, or other compliance requirements on any small entities. VerDate Sep<11>2014 21:17 Oct 01, 2020 Jkt 253001 There are no known significant alternative approaches to the rule that would meet the stated objectives of the applicable statute. Interested parties may obtain a copy of the FRFA from the Regulatory Secretariat Division. The Regulatory Secretariat Division has submitted a copy of the FRFA to the Chief Counsel for Advocacy of the Small Business Administration. VII. Paperwork Reduction Act PART 3—IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF INTEREST 3.1004 4. Amend section 3.1004 by removing from paragraphs (a), (b)(1)(i), and (b)(3) ‘‘$5.5 million’’ and adding ‘‘$6 million’’ in their places, respectively. PART 5—PUBLICIZING CONTRACT ACTIONS 5.303 List of Subjects in 48 CFR Parts 1, 2, 3, 5, 6, 8, 9, 10, 12, 13, 15, 16, 17, 19, 22, 26, 32, 36, 42, 50, 52, and 53 6.204 William F. Clark, Director, Office of Government-wide Acquisition Policy, Office of Acquisition Policy, Office of Government-wide Policy. Therefore, DoD, GSA, and NASA amend 48 CFR parts 1, 2, 3, 5, 6, 8, 9, 10, 12, 13, 15, 16, 17, 19, 22, 26, 32, 36, 42, 50, 52, and 53 as set forth below: 1. The authority citation for 48 CFR parts 1, 2, 3, 5, 6, 8, 9, 10, 12, 13, 15, 16, 17, 19, 22, 26, 32, 36, 42, 50, 52, and 53 continues to read as follows: ■ Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 51 U.S.C. 20113. PART 1—FEDERAL ACQUISITION REGULATIONS SYSTEM 1.109 [Amended] 2. Amend section 1.109, in paragraph (e) by removing ‘‘2014–022’’ and adding ‘‘2019–013’’ in its place. ■ 2.101 [Amended] 3. Amend section 2.101, in paragraph (b)(2) by— ■ a. In the definition ‘‘Major system’’, removing from paragraph (2) ‘‘$ 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. ■ PO 00000 Frm 00005 Fmt 4701 Sfmt 4700 [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] 6. Amend section 6.204 in paragraph (b) by removing ‘‘$22 million’’ and adding ‘‘$25 million’’ in its place. ■ 6.302–5 [Amended] 7. Amend section 6.302–5 by— a. Removing from paragraph (b)(4) ‘‘$22 million. (See subpart 19.8.)’’ and adding ‘‘$25 million. (See subpart 19.8.)’’ in its place; and ■ b. Removing from paragraph (c)(2)(iii) ‘‘$22 million’’ and adding ‘‘$25 million’’ in its place. ■ ■ 6.303–1 [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 [Amended] 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 PART 2—DEFINITIONS OF WORDS AND TERMS [Amended] ■ The Paperwork Reduction Act (44 U.S.C. chapter 35) does apply; however, these changes to the FAR do not impose additional information collection requirements to the paperwork burden previously approved under OMB Control numbers: 9000–0006, 9000– 0007, 1250–0004, and 1293–0005. Government Procurement. 62487 [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. ■ ■ E:\FR\FM\02OCR2.SGM 02OCR2 62488 Federal Register / Vol. 85, No. 192 / Friday, October 2, 2020 / Rules and Regulations PART 8—REQUIRED SOURCES OF SUPPLIES AND SERVICES PART 12—ACQUISITION OF COMMERCIAL ITEMS 8.404 12.102 [Amended] 11. Amend section 8.404 in paragraph (b)(2) by removing ‘‘$550,000’’ and adding ‘‘$600,000’’ in its place. ■ 8.405–3 [Amended] 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. ■ ■ 8.405–6 12.203 [Amended] 19. 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 [Amended] 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. PART 15—CONTRACTING BY NEGOTIATION 15.403–1 15.404–3 13.000 [Amended] 20. Amend section 13.000 by removing ‘‘$7 million ($13 million’’ and adding ‘‘$7.5 million ($15 million’’ in its place. 13.003 [Amended] 21. 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. 15.408 [Amended] 22. Amend section 13.201 in paragraph (g)(1)(ii) by removing ‘‘$30,000’’ and adding ‘‘$35,000’’ in its place. PART 16—TYPES OF CONTRACTS 16.503 [Amended] 9.104–7 13.500 ■ ■ [Amended] [Amended] ■ ■ 24. Amend section 13.500 by— 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. 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. ■ ■ PART 10—MARKET RESEARCH ■ ■ ■ ■ 10.001 [Amended] 16. Amend section 10.001 in paragraph (d) by removing ‘‘$5.5 million’’ and adding ‘‘$6 million’’ in its place. ■ 10.003 [Amended] 17. Amend section 10.003 by removing ‘‘$5.5 million’’ and adding ‘‘$6 million’’ in its place. ■ VerDate Sep<11>2014 21:17 Oct 01, 2020 Jkt 253001 [Amended] 13.501 [Amended] 25. 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 PO 00000 Frm 00006 Fmt 4701 Sfmt 4700 [Amended] 30. Amend section 16.503 by— a. Removing from paragraph (b)(2) ‘‘$112 million’’ and adding ‘‘$100 million’’ in its place; and ■ b. Removing from paragraph (d)(1) ‘‘$13.5 million’’ and adding ‘‘$15 million’’ in its place. 14. Amend section 9.104–5 in paragraph (c) by removing ‘‘$5,000,000’’ and adding ‘‘$5.5 million’’ in its place. ■ [Amended] 29. 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. ■ ■ 13.303–5 [Amended] 28. 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. ■ ■ 13.201 15.407–2 ■ ■ 9.104–5 [Amended] 27. Amend section 15.404–3 in paragraph (c)(1)(i) by removing ‘‘$13.5 million’’ and adding ‘‘$15 million’’ in its place. 23. 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. PART 9—CONTRACTOR QUALIFICATIONS [Amended] 26. Amend section 15.403–1 in paragraph (c)(3)(iv) by removing ‘‘$19 million’’ and adding ‘‘$20 million’’ in its place. ■ ■ ■ ■ ■ jbell on DSKJLSW7X2PROD with RULES2 [Amended] 18. Amend section 12.102 in paragraph (f)(2) by removing ‘‘$19 million’’ and adding ‘‘$20 million’’ in its place. ■ 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. 16.504 [Amended] 31. 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 ■ b. Removing from paragraph (c)(2)(i) introductory text ‘‘$13.5 million’’ and adding ‘‘$15 million’’ in its place. 16.505 [Amended] 32. Amend section 16.505 by— a. Removing from paragraph (b)(1)(iv) introductory text ‘‘$5.5 million’’ wherever it appears and adding ‘‘$6 million’’ in their places, respectively; ■ b. Removing from paragraph (b)(2)(ii)(C)(1) ‘‘$700,000’’ and adding ‘‘$750,000’’ in its place; ■ c. Removing from paragraph (b)(2)(ii)(C)(2) ‘‘$700,000’’ and ‘‘$13.5 million’’ and adding ‘‘$750,000’’ and ■ ■ E:\FR\FM\02OCR2.SGM 02OCR2 Federal Register / Vol. 85, No. 192 / Friday, October 2, 2020 / Rules and Regulations ‘‘$15 million’’ in their places, respectively; ■ d. 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; ■ e. 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 ■ f. Removing from paragraph (b)(6) introductory text ‘‘$5.5 million’’ wherever it appears and adding ‘‘$6 million’’ in their places, respectively. 16.506 [Amended] 33. 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 17—SPECIAL CONTRACTING METHODS 17.108 26.404 19.805–1 ■ [Amended] 40. 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 41. Amend section 19.808–1 in paragraph (a) by removing ‘‘$22 million’’ and adding ‘‘$25 million’’ in its place. ■ 19.1306 [Amended] 35. Amend section 17.500 in paragraph (c)(2) by removing ‘‘$550,000’’ and adding ‘‘$600,000’’ in its place. [Amended] 42. 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. ■ ■ [Amended] 22.1103 19.704 ■ 19.708 [Amended] 38. Amend section 19.708 in paragraph (b)(1) introductory text by removing ‘‘$700,000’’ and adding ‘‘$750,000’’ in its place. ■ VerDate Sep<11>2014 21:17 Oct 01, 2020 Jkt 253001 [Amended] 45. Amend section 22.1103 by removing ‘‘$700,000’’ and adding ‘‘$750,000’’ in its place. ■ 37. 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. [Amended] 50. 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 22.1701 [Amended] 46. Amend section 22.1701 in paragraph (b)(2) by removing ‘‘$500,000’’ and adding ‘‘$550,000’’ in its place. 22.1703 [Amended] 47. 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] 48. Amend section 22.1705 in paragraph (b)(1) by removing ■ PO 00000 Frm 00007 Fmt 4701 Sfmt 4700 [Amended] 51. 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 42.709–6 [Amended] 44. Amend section 19.1506 by— a. Removing from paragraph (c)(1)(i) ‘‘$6.5 million’’ and adding ‘‘$7 million’’ in its place; and ■ b. Removing from paragraph (c)(1)(ii) ‘‘$4 million’’ and adding ‘‘$4.5 million’’ in its place. 36. Amend section 19.702 by removing from paragraphs (a)(1)(i) through (iii) ‘‘$700,000’’ and adding ‘‘$750,000’’ in their places, respectively. ■ ■ 32.104 19.1506 19.702 [Amended] PART 32—CONTRACT FINANCING 42.709–0 PART 22—APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS [Amended] [Amended] 49. Amend section 26.404 by removing ‘‘$25,000’’ and adding ‘‘$30,000’’ in its place. 43. Amend section 19.1406 by removing from paragraph (a)(2)(i) ‘‘$6.5 million’’ and adding ‘‘$7 million’’ in its place. PART 19—SMALL BUSINESS PROGRAMS ■ PART 26—OTHER SOCIOECONOMIC PROGRAMS ■ [Amended] ■ ■ ■ ‘‘$500,000’’ and adding ‘‘$550,000’’ in its place. 39. Amend section 19.804–6 in paragraph (c)(2) by removing ‘‘$7 million’’ and ‘‘$4 million’’ and adding ‘‘$7.5 million’’ and ‘‘$4.5 million’’ in their places, respectively. ■ 34. 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. jbell on DSKJLSW7X2PROD with RULES2 [Amended] ■ 19.1406 [Amended] ■ ■ 17.500 19.804–6 62489 [Amended] 52. Amend section 42.709–0 in paragraph (b) by removing ‘‘$750,000’’ and adding ‘‘$800,000’’ in its place. ■ [Amended] 53. Amend section 42.709–6 by removing ‘‘$750,000’’ and adding ‘‘$800,000’’ in its place. ■ 42.1502 [Amended] 54. Amend section 42.1502 by removing from paragraph (e) ‘‘$700,000’’ twice and adding ‘‘$750,000’’ in their places, respectively. ■ PART 50—EXTRAORDINARY CONTRACTUAL ACTIONS AND THE SAFETY ACT 50.102–1 [Amended] 55. Amend section 50.102–1 in paragraph (b) by removing ‘‘$70,000’’ and adding ‘‘$75,000’’ in its place. ■ 50.102–3 [Amended] 56. Amend section 50.102–3 by— a. Removing from paragraph (b)(4) ‘‘$34 million’’ and adding ‘‘$35 million’’ in its place; and ■ 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 57. Amend section 52.209–12 by revising the date of the provision, and ■ E:\FR\FM\02OCR2.SGM 02OCR2 62490 Federal Register / Vol. 85, No. 192 / Friday, October 2, 2020 / Rules and Regulations removing from paragraph (b) ‘‘$5,000,000’’ and adding ‘‘$5.5 million’’ in its place. The revision reads as follows: 52.209–12 Matters. Certification Regarding Tax 52.213–4 Terms and Conditions— Simplified Acquisitions (Other Than Commercial Items). * * * * * * Certification Regarding Tax Matters (OCT 2020) * * * * * 58. Amend section 52.212–5 by— a. Revising the date of the clause; b. Removing from paragraph (b)(35)(i) ‘‘(JAN 2019)’’ and adding ‘‘(OCT 2020)’’ in its place; ■ c. Removing from paragraph (e)(1)(xiii)(A) ‘‘(JAN 2019)’’ and adding ‘‘(OCT 2020)’’ in its place; ■ d. Revising the date of Alternate II; and ■ e. In paragraph (e)(1)(ii)(L) of Alternate II removing ‘‘(JAN 2019)’’ and adding ‘‘(OCT 2020)’’ in its place. The revisions read as follows: ■ ■ ■ 52.212–5 Contract Terms and Conditions Required To Implement Statutes or Executive Orders—Commercial Items. * * * * * Contract Terms and Conditions Required To Implement Statutes or Executive Orders—Commercial Items (OCT 2020) * * * * * Alternate II (OCT 2020). * * * * * * * * ■ 59. Amend section 52.213–4 by revising the date of the clause, and removing from paragraph (b)(1)(viii)(A) jbell on DSKJLSW7X2PROD with RULES2 ‘‘(JAN 2019)’’ and adding ‘‘(OCT 2020)’’ in its place. The revision reads as follows: VerDate Sep<11>2014 21:17 Oct 01, 2020 Jkt 253001 * * * * Terms and Conditions—Simplified Acquisitions (Other Than Commercial Items) (OCT 2020) Certification Regarding Trafficking in Persons Compliance Plan (OCT 2020) * * * * * 62. Amend section 52.244–6 by revising the date of the clause, and removing from paragraph (c)(1)(xiv)(A) ‘‘(JAN 2019)’’ and adding ‘‘(OCT 2020)’’ in its place. The revision reads as follows: ■ * * * * 60. Amend section 52.222–50— a. Revising the date of the clause; b. Removing from paragraph (h)(1)(ii) ‘‘$500,000’’ and adding $550,000’’ in its place; ■ c. Redesignating paragraphs (i)(1)(A) and (B) as paragraphs (i)(1)(i) and (ii); and ■ d. Removing from newly redesignated paragraph (i)(1)(ii) ‘‘$500,000’’ and adding ‘‘$550,000’’ in its place. The revision reads as follows: 52.244–6 Items. 52.222–50 Persons. Combating Trafficking in 52.248–3 Value Engineering— Construction. * * * * ■ ■ ■ * * * * * Subcontracts for Commercial * * * Subcontracts for Commercial Items (OCT 2020) * * * * * 63. 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: ■ * * * * Combating Trafficking in Persons (OCT 2020) Value Engineering—Construction (OCT 2020) * * * * * * 61. Amend section 52.222–56 by revising the date of the provision, and removing from paragraph (b)(2) ‘‘$500,000’’ and adding ‘‘$550,000’’ in its place. The revision reads as follows: * * * * ■ PART 53—FORMS 53.219 [Amended] 64. Amend section 53.219 by removing ‘‘(Rev. 8/2016)’’ and adding ‘‘(Rev. OCT 2020)’’ in its place. ■ 52.222–56 Certification Regarding Trafficking in Persons Compliance Plan. [FR Doc. 2020–21690 Filed 10–1–20; 8:45 am] * BILLING CODE 6820–EP–P PO 00000 * * Frm 00008 * Fmt 4701 * Sfmt 9990 E:\FR\FM\02OCR2.SGM 02OCR2

Agencies

[Federal Register Volume 85, Number 192 (Friday, October 2, 2020)]
[Rules and Regulations]
[Pages 62485-62490]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-21690]


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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, 32, 36, 42, 50, 52, and 53

[FAC 2021-01, 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: Final rule.

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

SUMMARY: DoD, GSA, and NASA are issuing a final rule amending 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 using the same methodology to adjust 
nonstatutory FAR acquisition-related thresholds in 2020.

DATES: Effective: October 1, 2020.

FOR FURTHER INFORMATION CONTACT: Mr. Michael O. Jackson, Procurement 
Analyst, at 202-208-4949 or [email protected] for clarification 
of content. For information pertaining to status or publication 
schedules, contact the Regulatory Secretariat Division at 202-501-4755. 
Please cite FAC 2021-01, FAR Case 2019-013.

SUPPLEMENTARY INFORMATION:

I. Background

    DoD, GSA, and NASA published a proposed rule at 85 FR 39146 on June 
30, 2020, 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 using the same methodology to adjust nonstatutory FAR 
acquisition-related thresholds on October 1, 2020.
    The preamble to the proposed rule contained detailed explanations 
of--
     What an acquisition-related threshold is;
     What acquisition-related thresholds are not subject to 
escalation adjustment under this case;
     How the Defense Acquisition Regulations Council and the 
Civilian Agency Acquisition Council (Councils) analyze statutory and 
non-statutory acquisition-related thresholds; and
     The effect of this rule on the most heavily used 
thresholds.
    DoD, GSA, and NASA implemented three rules that have reduced the 
complexity and impact of the October 1, 2020, threshold adjustments 
throughout the FAR. The changes implemented through these rules 
significantly reduced the number of cite-specific inflation adjustments 
in the FAR and associated matrix.
    FAR Case 2018-004, published as a final rule on July 2, 2020 (85 FR 
40064) implemented 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) to $10,000 and simplified 
acquisition threshold (SAT) to $250,000 throughout the FAR. The case 
also changed 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 final rule on July 2, 2020 (85 FR 
40071) implemented section 811 of the NDAA for 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 
increased 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) implemented 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 implementing section 821 and that 
are in effect on the date of the adjustment. The case replaced 
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 have been replaced 
with a reference to the applicable FAR text that specifies the 
numerical threshold.
    The following list identifies the impact of this rule on heavily-
used thresholds.
     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 increasing 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 increasing 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) is increased from $7 million to $7.5 million. For 
acquisitions described at 13.500(c), the ceiling is increasing 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 increasing in this case.
     The prime contractor subcontracting plan (FAR 19.702) 
threshold is increasing from $700,000 to

[[Page 62486]]

$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 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.
    Seven 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 comments in the 
development of the final rule.

A. Summary of Significant Changes

    Minor edits were made to the final rule to account for baseline 
updates caused by publication of other FAR interim or final rules.
    The proposed rule included some thresholds that were very close 
but, ultimately, did not reach the statutory calculation formula 
amount. As a result, the Councils have removed them from the text of 
the final rule: FAR 9.405-2, 9.409, 13.402, $3,500 at 16.505(b), 
19.1406(a)(2)(ii), 28.102-1 to 28.102-3, and 42.1502(f). In one case, 
for FAR 50.102-3, the statutory calculation did increase the threshold 
to $35 million, but this is lower than the value published in the 
proposed rule.
    Some thresholds were inadvertently omitted, but are now included 
because they did reach the statutory calculation formula amount: 
16.503(d), 19.804-6, 19.1506, 52.209-12, 52.222-50, and 52.222-56.
    The FAR text also makes a correction to 52.222-50(i)(1). The 
paragraphs marked as (A) and (B) have been corrected to (i) and (ii), 
respectively.

B. Analysis of Public Comments

    A discussion of the comments is provided as follows:
    Comment: A respondent stated that there appeared to be an error in 
the proposed rule with a reference to FAR 42.709-0, as the current FAR 
has no 42.709-0; and did we mean the reference to 42.709-6 to be 
42.709-7.
    Response: The proposed rule contained the correct section numbering 
for sections 42.709-0 through 42.709-6. The Acquisition.Gov website 
reflected incorrect references, however, the Electronic Code of Federal 
Regulations reflected the correct FAR text.
    Comment: A respondent asked why FAR 19.804-6 and 19.1506 did not 
appear in the proposed rule.
    Response: These were inadvertently omitted. The required statutory 
changes now appear in the final rule.
    Comment: A respondent stated it is unclear why the existing 
thresholds at FAR 19.1406(a)(2)(i) and 19.1506(c)(1)(i) are different 
than those established under FAR 19.805-1. The respondent stated that 
prior to 2006, FAR 19.805-1, 19.1306, and 19.1406 appear to have been 
identical (or similar) and one would assume that if these thresholds 
were adjusted based on the CPI, they would remain the same.
    Response: The thresholds at FAR 19.1406(a)(2)(i), 19.1506(c)(1)(i), 
and 19.805-1 were established by different statutes. The calculations 
are set by 41 U.S.C. 1908, and are based on the enactment date of the 
underlying statute. The calculation for FAR 19.1406(a)(2) is based on a 
statute enacted December 16, 2003; paragraph (a)(2)(i) will increase to 
$7 million, but paragraph (a)(2)(ii) was not sufficient for that 
threshold to change in the final rule, and will remain at $4 million. 
FAR 19.1506(c)(1)(i) and (ii) are subject to the inflation statute, but 
were inadvertently omitted from the proposed rule; they appear in the 
final rule with increased thresholds of $7 million and $4.5 million. 
The calculation for FAR 19.805-1 and 19.1306 were based on statutes 
enacted before October 1, 2000. For more information on the 
calculations please see FAR 1.109 and the matrix referenced there.
    Comment: A respondent recommended that the Miller Act threshold be 
raised to $250,000 to be in line with the increase of the SAT to 
$250,000.
    Response: There is no statute allowing this.
    Comment: Two respondents stated that the $35,000 payment bond 
thresholds at FAR 28.102-1(b)(1), 28.102-2(c), and 28.102-3(b) should 
not be increased, as (1) they are not acquisition-related thresholds, 
instead being closer to ``required levels of insurance'', and (2) the 
increase would harm small business by increasing the risk of nonpayment 
by prime contractors.
    Response: These thresholds are not increasing in the final rule 
because they did not reach the statutory calculation formula amount 
(see Section II.A. of this preamble). In regard to whether bond 
thresholds are considered acquisition-related thresholds, the Councils 
disagree with the commenter's assertion that the thresholds are 
``required levels of insurance''. The application of payment bond 
requirements are specific to a particular contract, however required 
levels of insurance apply more generally to a particular contractor. An 
example of a required level of insurance can be found at FAR 28.307-2, 
such as worker's compensation insurance which is required at $100,000. 
In regard to the comment that the increase will harm small business, 
this is a policy matter which does not override the statutory 
requirement to apply the inflation increase to acquisition-related 
statutory thresholds. These particular thresholds have increased in 
previous FAR inflation cases, to include the most recent FAR case 2014-
022, from the $25,000 found in 40 U.S.C. 3132 to the current FAR amount 
of $35,000.
    Comment: A respondent expressed general support for the rule.
    Response: The support is noted.

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 final rule does not create any new provisions or clauses, nor 
does it change the applicability or burden 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.

[[Page 62487]]

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

    This final rule amends 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.
    There were no significant issues raised by the public in 
response to the initial regulatory flexibility analysis.
    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. The 
threshold changes 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 sole source 8(a) awards made 
pursuant to FAR 6.303-1 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 the 
Federal Procurement Data System. 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.
    This rule does not include any new reporting, recordkeeping, or 
other compliance requirements on any small entities.
    There are no known significant alternative approaches to the 
rule that would meet the stated objectives of the applicable 
statute.

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

VII. Paperwork Reduction Act

    The Paperwork Reduction Act (44 U.S.C. chapter 35) does apply; 
however, these changes to the FAR do not impose additional information 
collection requirements to the paperwork burden previously approved 
under OMB Control 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, 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 amend 48 CFR parts 1, 2, 3, 5, 6, 8, 
9, 10, 12, 13, 15, 16, 17, 19, 22, 26, 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, 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 (e) 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.

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--
0
a. Removing from paragraph (b)(4) ``$22 million. (See subpart 19.8.)'' 
and adding ``$25 million. (See subpart 19.8.)'' in its place; and
0
b. Removing from paragraph (c)(2)(iii) ``$22 million'' and adding ``$25 
million'' in its place.


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.

[[Page 62488]]

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.

PART 10--MARKET RESEARCH


10.001  [Amended]

0
16. Amend section 10.001 in paragraph (d) by removing ``$5.5 million'' 
and adding ``$6 million'' in its place.


10.003  [Amended]

0
17. 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
18. Amend section 12.102 in paragraph (f)(2) by removing ``$19 
million'' and adding ``$20 million'' in its place.


12.203  [Amended]

0
19. 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
20. Amend section 13.000 by removing ``$7 million ($13 million'' and 
adding ``$7.5 million ($15 million'' in its place.


13.003  [Amended]

0
21. 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
22. 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
23. 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.


13.500  [Amended]

0
24. Amend section 13.500 by--
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
25. 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
26. 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
27. 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
28. 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
29. 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
30. Amend section 16.503 by--
0
a. Removing from paragraph (b)(2) ``$112 million'' and adding ``$100 
million'' in its place; and
0
b. Removing from paragraph (d)(1) ``$13.5 million'' and adding ``$15 
million'' in its place.


16.504  [Amended]

0
31. 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
32. Amend section 16.505 by--
0
a. Removing from paragraph (b)(1)(iv) introductory text ``$5.5 
million'' wherever it appears and adding ``$6 million'' in their 
places, respectively;
0
b. Removing from paragraph (b)(2)(ii)(C)(1) ``$700,000'' and adding 
``$750,000'' in its place;
0
c. Removing from paragraph (b)(2)(ii)(C)(2) ``$700,000'' and ``$13.5 
million'' and adding ``$750,000'' and

[[Page 62489]]

``$15 million'' in their places, respectively;
0
d. 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
e. 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
f. Removing from paragraph (b)(6) introductory text ``$5.5 million'' 
wherever it appears and adding ``$6 million'' in their places, 
respectively.


16.506  [Amended]

0
33. 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
34. 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
35. 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
36. 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
37. 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
38. Amend section 19.708 in paragraph (b)(1) introductory text by 
removing ``$700,000'' and adding ``$750,000'' in its place.


19.804-6  [Amended]

0
39. Amend section 19.804-6 in paragraph (c)(2) by removing ``$7 
million'' and ``$4 million'' and adding ``$7.5 million'' and ``$4.5 
million'' in their places, respectively.


19.805-1  [Amended]

0
40. 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
41. Amend section 19.808-1 in paragraph (a) by removing ``$22 million'' 
and adding ``$25 million'' in its place.


19.1306  [Amended]

0
42. 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
43. Amend section 19.1406 by removing from paragraph (a)(2)(i) ``$6.5 
million'' and adding ``$7 million'' in its place.


19.1506  [Amended]

0
44. Amend section 19.1506 by--
0
a. Removing from paragraph (c)(1)(i) ``$6.5 million'' and adding ``$7 
million'' in its place; and
0
b. Removing from paragraph (c)(1)(ii) ``$4 million'' and adding ``$4.5 
million'' in its place.

PART 22--APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS


22.1103  [Amended]

0
45. Amend section 22.1103 by removing ``$700,000'' and adding 
``$750,000'' in its place.


22.1701  [Amended]

0
46. Amend section 22.1701 in paragraph (b)(2) by removing ``$500,000'' 
and adding ``$550,000'' in its place.


22.1703  [Amended]

0
47. 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
48. 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
49. Amend section 26.404 by removing ``$25,000'' and adding ``$30,000'' 
in its place.

PART 32--CONTRACT FINANCING


32.104  [Amended]

0
50. 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
51. 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
52. Amend section 42.709-0 in paragraph (b) by removing ``$750,000'' 
and adding ``$800,000'' in its place.


42.709-6  [Amended]

0
53. Amend section 42.709-6 by removing ``$750,000'' and adding 
``$800,000'' in its place.


42.1502  [Amended]

0
54. Amend section 42.1502 by removing from paragraph (e) ``$700,000'' 
twice and adding ``$750,000'' in their places, respectively.

PART 50--EXTRAORDINARY CONTRACTUAL ACTIONS AND THE SAFETY ACT


50.102-1  [Amended]

0
55. Amend section 50.102-1 in paragraph (b) by removing ``$70,000'' and 
adding ``$75,000'' in its place.


50.102-3  [Amended]

0
56. Amend section 50.102-3 by--
0
a. Removing from paragraph (b)(4) ``$34 million'' and adding ``$35 
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
57. Amend section 52.209-12 by revising the date of the provision, and

[[Page 62490]]

removing from paragraph (b) ``$5,000,000'' and adding ``$5.5 million'' 
in its place.
    The revision reads as follows:


52.209-12  Certification Regarding Tax Matters.

* * * * *

Certification Regarding Tax Matters (OCT 2020)

* * * * *

0
58. Amend section 52.212-5 by--
0
a. Revising the date of the clause;
0
b. Removing from paragraph (b)(35)(i) ``(JAN 2019)'' and adding ``(OCT 
2020)'' in its place;
0
c. Removing from paragraph (e)(1)(xiii)(A) ``(JAN 2019)'' and adding 
``(OCT 2020)'' in its place;
0
d. Revising the date of Alternate II; and
0
e. In paragraph (e)(1)(ii)(L) of Alternate II removing ``(JAN 2019)'' 
and adding ``(OCT 2020)'' in its place.
    The revisions read as follows:


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

* * * * *

Contract Terms and Conditions Required To Implement Statutes or 
Executive Orders--Commercial Items (OCT 2020)

* * * * *
    Alternate II (OCT 2020). * * *
* * * * *

0
59. Amend section 52.213-4 by revising the date of the clause, and 
removing from paragraph (b)(1)(viii)(A) ``(JAN 2019)'' and adding 
``(OCT 2020)'' in its place.
    The revision reads as follows:


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

* * * * *

Terms and Conditions--Simplified Acquisitions (Other Than Commercial 
Items) (OCT 2020)

* * * * *

0
60. Amend section 52.222-50--
0
a. Revising the date of the clause;
0
b. Removing from paragraph (h)(1)(ii) ``$500,000'' and adding 
$550,000'' in its place;
0
c. Redesignating paragraphs (i)(1)(A) and (B) as paragraphs (i)(1)(i) 
and (ii); and
0
d. Removing from newly redesignated paragraph (i)(1)(ii) ``$500,000'' 
and adding ``$550,000'' in its place.
    The revision reads as follows:


52.222-50  Combating Trafficking in Persons.

* * * * *

Combating Trafficking in Persons (OCT 2020)

* * * * *

0
61. Amend section 52.222-56 by revising the date of the provision, and 
removing from paragraph (b)(2) ``$500,000'' and adding ``$550,000'' in 
its place.
    The revision reads as follows:


52.222-56  Certification Regarding Trafficking in Persons Compliance 
Plan.

* * * * *

Certification Regarding Trafficking in Persons Compliance Plan (OCT 
2020)

* * * * *

0
62. Amend section 52.244-6 by revising the date of the clause, and 
removing from paragraph (c)(1)(xiv)(A) ``(JAN 2019)'' and adding ``(OCT 
2020)'' in its place.
    The revision reads as follows:


52.244-6  Subcontracts for Commercial Items.

* * * * *

Subcontracts for Commercial Items (OCT 2020)

* * * * *

0
63. 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 (OCT 2020)

* * * * *

PART 53--FORMS


53.219  [Amended]

0
64. Amend section 53.219 by removing ``(Rev. 8/2016)'' and adding 
``(Rev. OCT 2020)'' in its place.

[FR Doc. 2020-21690 Filed 10-1-20; 8:45 am]
BILLING CODE 6820-EP-P