[Federal Register Volume 71, Number 188 (Thursday, September 28, 2006)]
[Rules and Regulations]
[Pages 57356-57357]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 06-8199]
[[Page 57355]]
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Part IV
Department of Defense
General Services Administration
National Aeronautics and Space Administration
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48 CFR Parts 1, 2, 3, et. al.
Federal Acquisition Regulations; Final Rules
Federal Register / Vol. 71, No. 188 / Thursday, September 28, 2006 /
Rules and Regulations
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Chapter 1
[Docket FAR-2006-0023, Sequence 5]
Federal Acquisition Regulation; Federal Acquisition Circular
2005-13; Introduction
AGENCIES: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Summary presentation of final and interim rules, and technical
amendments and corrections.
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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) 2005-13. 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.regulations.gov.
DATES: For effective dates and comment dates, see separate documents
which follow.
FOR FURTHER INFORMATION CONTACT: The analyst whose name appears in the
table below in relation to each FAR case or subject area. Please cite
FAC 2005-13 and specific FAR case number(s). For information pertaining
to status or publication schedules, contact the FAR Secretariat at
(202) 501-4755.
List of Rules in FAC 2005-13
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Item Subject FAR case Analyst
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*I............. Implement OMB Policy on the Use of Brand Name 2005-037 Davis.
Specifications (Interim).
*II............ Information Technology Security.............. 2004-018 Davis.
III............ Online Representations and Certifications 2005-025 Woodson.
Application (ORCA) Archiving Capability
(Interim).
*IV............ Inflation Adjustment of Acquisition-Related 2004-033 Jackson.
Thresholds.
V.............. Trade Agreements-Thresholds.................. 2005-030 Parnell.
VI............. Reporting of Purchases from Overseas Sources 2005-034 Olson.
(Interim).
*VII........... Exception to the Buy American Act for 2005-022 Olson.
Commercial Information Technology.
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 2005-13 amends the FAR as specified below:
Item I--Implement OMB Policy on the Use of Brand Name Specifications
(Interim) (FAR Case 2005-037)
This interim rule amends the Federal Acquisition Regulation (FAR)
to implement the memoranda issued by the Office of Management and
Budget dated April 11, 2005 and April 17, 2006, requiring agencies to
publish on the Governmentwide point of entry (GPE) or e-Buy the
documentation required by the FAR to support the use of a brand name
specification. The rule is intended to limit the use of brand name
specifications and provide for maximum competition.
Item II--Information Technology Security (FAR Case 2004-018)
This final rule amends the interim rule published September 30,
2005, as corrected on November 14, 2005, to a final rule without
change. The interim rule amended FAR Parts 1, 2, 7, 11, and 39 to
implement the Information Technology (IT) Security provisions of the
Federal Information Security Management Act of 2002 (FISMA), (Title III
of Public Law 107-347, the E-Government Act of 2002 (E-Gov Act)). The
rule focuses on the importance of system and data security by
contracting officials and other members of the acquisition team. The
intent of adding specific guidance in the FAR is to provide clear,
consistent guidance to acquisition officials and program managers; and
to encourage and strengthen communication with IT security officials,
chief information officers, and other affected parties.
Item III--Online Representations and Certifications Application (ORCA)
Archiving Capability (Interim)(FAR Case 2005-025)
This interim rule amends FAR Parts 4, 12, 14, and 15 to address the
record retention policy where the Online Representations and
Certifications Application (ORCA) is used to submit an offeror's
representations and certifications. Under FAR Subpart 4.12, prospective
contractors are required to submit Annual Representations and
Certifications via the ORCA. Data in ORCA is archived and
electronically retrievable. Therefore, when a prospective contractor
has completed representations and certifications electronically via
ORCA, the contracting officer may reference the date of ORCA
verification in the associated Government contract file rather than
including a paper copy of the electronically-submitted representations
and certifications in the file. Such a reference satisfies contract
file documentation requirements of 4.803(a)(11). However, if an offeror
identifies changes to ORCA data pursuant to the FAR provisions at
52.204-8(c) or 52.212-3(k), the contracting officer must include a copy
of the changes in the contract file.
Item IV--Inflation Adjustment of Acquisition-Related Thresholds (FAR
Case 2004-033)
This final rule adjusts acquisition-related thresholds in the FAR
for inflation. It implements Section 807 of the Ronald W. Reagan
National Defense Authorization Act for Fiscal Year 2005 (Pub. L. 108-
375). Section 807 provides for adjustment every 5 years of acquisition-
related thresholds, except for Davis-Bacon Act, Service Contract Act,
and trade agreements thresholds. This rule also escalates some
nonstatutory acquisition-related thresholds. Often any impact of these
threshold increases will be beneficial, by preventing burdensome
requirements from applying to more and more small dollar value
acquisitions, which are the acquisitions in which small businesses are
most likely to participate. One threshold change in this rule which may
temporarily impact small business is the increase of the micro-purchase
threshold (FAR 2.101) from $2,500 to
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$3,000, because the simplified acquisition threshold will not be raised
at this time. Other frequently used thresholds that are adjusted
include--
The FPDS reporting threshold (FAR 4.602(c)) will be raised
from $2,500 to $3,000.
Commercial Items test program ceiling (FAR 13.500) will be
raised from $5,000,000 to $5,500,000.
The cost and pricing data threshold (FAR 15.403-4) will be
raised from $550,000 to $650,000.
The prime contractor subcontracting plan (FAR 19.702) floor will be
raised from $500,000 to $550,000, but for construction ($1,000,000) is
unchanged.
Item V--Trade Agreements-Thresholds (FAR Case 2005-030)
This final rule converts the interim rule published at 71 FR 864,
January 5, 2006, to a final rule without change. This rule changes the
thresholds for application of the World Trade Organization Government
Procurement Agreement and the other Free Trade Agreements with Canada,
Mexico, Chile, Singapore, and Australia. These threshold increases
occur every two years in order to keep pace with inflation.
Item VI--Reporting of Purchases from Overseas Sources (Interim) (FAR
Case 2005-034)
This interim rule amends FAR Part 25 and adds a provision in FAR
52.225 to implement Section 837 of Division A of the Transportation,
Treasury, Housing and Urban Development, the Judiciary, the District of
Columbia, and Independent Agencies Appropriations Act, 2006 (Pub. L.
109-115). Section 837 requires the head of each Federal agency to
submit a report to Congress relating to acquisitions of articles,
materials, or supplies that are manufactured outside the United States.
The new provision requests from offerors necessary data regarding place
of manufacture. The new provisions will require an offeror to indicate
whether the place of manufacture of the end products it expects to
provide in response to the solicitation is predominantly inside or
outside the United States. Whenever the place of manufacture for a
contract is coded outside the United States, the contracting officer
will be required to enter into Federal Procurement Data System (FPDS)
the reason for buying items manufactured outside the United States.
Item VII--Exception to the Buy American Act for Commercial Information
Technology (FAR Case 2005-022)
This final rule converts the interim rule published at 71 FR 223,
January 3, 2006, to a final rule without change. This final rule amends
FAR 25.103 and Subpart 25.11 to implement Section 535(a) of Division F
of the Consolidated Appropriations Act, 2004, and similar sections in
subsequent appropriations acts. Section 535(a) authorizes an exception
to the Buy American Act for acquisitions of information technology that
are commercial items. The final rule applies to all offerors responding
to solicitations for commercial information technology where the Buy
American Act previously applied (generally, acquisitions between the
micro-purchase threshold and $193,000). The effect of this exemption is
that the following clauses are no longer applicable in acquisition of
commercial information technology:
FAR 52.225-1, Buy American Act-Supplies,
FAR 52.225-2, Buy American Act Certificate,
FAR 52.225-3, Buy American Act-Free Trade Agreements-
Israeli Trade Act,
FAR 52.225-4, Buy American Act-Free Trade Agreements-
Israeli Trade Act Certificate.
This is because the Buy American Act no longer applies. The Free
Trade Agreement non-discriminatory provisions are no longer necessary
since all products now are treated without the restrictions of the Buy
American Act.
The Trade Agreements provision and clause at FAR 52.225-5 and FAR
52.225-6 are still necessary when the Trade Agreements Act applies
(acquisitions above $193,000). The Trade Agreements provision and
clause already waive applicability of the Buy American Act for eligible
products and are needed to implement the restrictions on procurement of
noneligible end products. Section 535 and subsequent similar sections
waived only the Buy American Act, not all restrictions on the purchase
of foreign information technology.
Item VIII--Technical Amendments
Editorial changes are made at FAR 1, 3, 4, 5, 7, 13, 26, 33, 49,
50, 52, and 53 in order to update references.
Dated: September 19, 2006.
Ralph De Stefano,
Director, Contract Policy Division.
Federal Acquisition Circular
Federal Acquisition Circular (FAC) 2005-13 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 2005-13 is
effective September 28, 2006.
Dated: September 19, 2006.
Roger D. Waldron,
Acting Senior Procurement Executive, General Services Administration.
Dated: September 8, 2006.
Shay D. Assad,
Director, Defense Procurement and Acquisition Policy.
Dated: September 12, 2006.
Thomas Luedtke,
Assistant Administrator for Procurement, National Aeronautics and Space
Administration.
[FR Doc. 06-8199 Filed 9-27-06; 8:45 am]
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