[Federal Register: May 22, 2003 (Volume 68, Number 99)]
[Rules and Regulations]
[Page 28077-28079]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr22my03-18]
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Part III
Department of Defense
General Services Administration
National Aeronautics and Space Administration
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48 CFR Chapter I, et al.
Federal Acquistion Circular 2001-14; Final Rules
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Chapter 1
Federal Acquisition Circular 2001-14; Introduction
AGENCIES: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Summary presentation of final rules and technical amendments.
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SUMMARY: This document summarizes the Federal Acquisition Regulation
(FAR) rules agreed to by the Civilian Agency Acquisition Council and
the Defense Acquisition Regulations Council in this Federal Acquisition
Circular (FAC) 2001-14. A companion document, the Small Entity
Compliance Guide (SECG), follows this FAC. The FAC, including the SECG,
is available via the Internet at http://www.arnet.gov/far.
DATES: For effective dates and comment dates, see separate documents
which follow.
FOR FURTHER INFORMATION CONTACT: The FAR Secretariat, Room 4035, GS
Building, Washington, DC 20405, (202) 501-4755, for information
pertaining to status or publication schedules. For clarification of
content, contact the analyst whose name appears in the table below in
relation to each FAR case or subject area. Please cite FAC 2001-14 and
specific FAR case number(s). Interested parties may also visit our Web
site at http://www.arnet.gov/far.
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Item Subject FAR case Analyst
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I................ Geographic Use of the 1999-400 Davis.
Term ``United States''.
II............... Miscellaneous Cost 2001-029 Loeb.
Principles.
III.............. Prompt Payment Under 2000-308 Loeb.
Cost-Reimbursement
Contracts for Services.
IV............... Electronic Signatures.. 2000-304 Smith.
V................ Increased Federal 2003-001 Nelson.
Prison Industries,
Inc. Waiver Threshold
(Interim).
VI............... Past Performance 2001-035 Smith.
Evaluation of Federal
Prison Industries
Contracts.
VII.............. Contract Terms and 2000-009 Moss.
Conditions Required to
Implement Statute or
Executive Orders--
Commercial Items.
VIII............. Technical Amendments.
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SUPPLEMENTARY INFORMATION: Summaries for each FAR rule follow. For the
actual revisions and/or amendments to these FAR cases, refer to the
specific item number and subject set forth in the documents following
these item summaries.
FAC 2001-14 amends the FAR as specified below:
Item I--Geographic Use of the Term ``United States'' (FAR Case 1999-
400)
This final rule amends the FAR to clarify the use of the term
``United States,'' when used in a geographic sense. The term ``United
States'' is defined in FAR 2.101 to include the 50 States and the
District of Columbia. Where a wider area of applicability is intended,
the term is redefined in the appropriate part or subpart of the FAR, or
supplemented by listing the additional areas of applicability each time
the term is used. This rule corrects and updates references to the
United States throughout the FAR, including a new definition of
``outlying areas'' of the United States, a term that encompasses the
named outlying commonwealths, territories, and minor outlying islands.
Item II--Miscellaneous Cost Principles (FAR Case 2001-029)
This final rule amends the FAR by deleting the cost principle at
FAR 31.205-45, Transportation costs, and streamlining the cost
principles at FAR 31.205-10, Cost of money; FAR 31.205-28, Other
business expenses; and FAR 31.205-48, Deferred research and development
costs. The rule will only affect contracting officers that are required
by a contract clause to use cost principles for the determination,
negotiation, or allowance of contract costs.
Item III--Prompt Payment Under Cost-Reimbursement Contracts for
Services (FAR Case 2000-308)
The interim rule published in the Federal Register at 66 FR 53485,
October 22, 2001, is converted to a final rule, without change, to
implement statutory and regulatory changes related to late payment of
an interim payment under a cost-reimbursement contract for services.
The rule is of special interest to contracting officers that award or
administer these type of contracts.
The Federal Register notice published in conjunction with the FAR
interim rule stated that ``The policy and clause apply to all covered
contracts awarded on or after December 15, 2000 * * * agencies may
apply the FAR changes made by this rule to contracts awarded prior to
December 15, 2000, at their discretion * * *.'' This was consistent
with OMB regulations. Subsequently, as a result of enactment of the
National Defense Authorization Act for Fiscal Year 2002 (Pub. L. 107-
107) on December 28, 2001, agencies no longer have this discretion.
Section 1007 of Public Law 107-107 states that this policy applies to
cost-reimbursement contracts for services awarded before, on, or after
December 15, 2000. Section 1007 retains the prohibition against payment
of late payment interest penalty for any period prior to December 15,
2000.
Item IV--Electronic Signatures (FAR Case 2000-304)
Recent laws eliminate legal barriers to using electronic technology
in business transactions, such as the formation and signing of
contracts. This final rule furthers Government participation in
electronic commerce when conducting Government procurements by adding a
statement at FAR Subpart 4.5, Electronic Commerce in Contracting,
clarifying that agencies are permitted to accept electronic signatures
and records in connection with Government contracts.
Item V--Increased Federal Prison Industries, Inc. Waiver Threshold (FAR
Case 2003-001)
This interim rule revises the Federal Acquisition Regulation to
increase the Federal Prison Industries, Inc.'s (FPI) clearance
exception threshold at 8.606(e) from $25 to $2,500 and eliminates the
criterion that delivery is required within 10 days. Federal agencies
will not be required to make purchases from FPI of products on FPI's
Schedule that are at or below this threshold.
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Item VI--Past Performance Evaluation of Federal Prison Industries
Contracts (FAR Case 2001-035)
This final rule requires agencies to evaluate Federal Prison
Industries (FPI) contract performance. This change will permit Federal
customers to rate FPI performance, compare FPI to private sector
providers, and give FPI important feedback on previously awarded
contracts. It is expected that this change will give FPI the same
opportunity that we give private sector providers, to improve their
customer satisfaction, in general, and their performance on delivery,
price, and quality, specifically.
Item VII--Contract Terms and Conditions Required to Implement Statute
or Executive Orders--Commercial Items (FAR Case 2000-009)
This final rule amends the clause at 52.212-5, Contract Terms and
Conditions Required to Implement Statute or Executive Orders--
Commercial Items, to ensure that required statutes enacted subsequent
to FASA that contain civil or criminal penalties or specifically cite
their applicability to commercial items are included on the list, and
to ensure that any post-FASA items that did not meet this criteria are
deleted from the list. In addition, the pre-FASA clauses and alternates
that were inadvertently left off the list are added. The date of each
clause is added to the list to identify what revision of the listed
clause applies when this clause is added to a contract.
Item VIII--Technical Amendments
These amendments update references and make editorial changes at
FAR 52.213-4(a)(2)(vi), 52.244-6 section and clause headings, and
52.247-64(a).
Dated: May 13, 2003.
Laura G. Smith,
Director, Acquisition Policy Division.
Federal Acquisition Circular
Federal Acquisition Circular (FAC) 2001-14 is issued under the
authority of the Secretary of Defense, the Administrator of General
Services, and the Administrator for the National Aeronautics and Space
Administration.
Unless otherwise specified, all Federal Acquisition Regulation
(FAR) and other directive material contained in FAC 2001-14 are
effective June 23, 2003, except for Items III, V and VIII which are
effective May 22, 2003.
Dated: May 9, 2003.
Deidre A. Lee,
Director, Defense Procurement and Acquisition Policy.
Dated: May 5, 2003.
David A. Drabkin,
Deputy of Acquisition Policy, General Services Administration.
Dated: May 5, 2003.
Tom Luedtke,
Assistant Administrator for Procurement, National Aeronautics and
Space Administration.
[FR Doc. 03-12300 Filed 5-21-03; 8:45 am]