80 FR 38291 - Federal Acquisition Regulation; Federal Acquisition Circular 2005-83; Introduction

DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

Federal Register Volume 80, Issue 127 (July 2, 2015)

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) 2005-83. 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.

[Federal Register Volume 80, Number 127 (Thursday, July 2, 2015)]
[Rules and Regulations]
[Pages 38291-38293]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-16205]



[[Page 38291]]

Vol. 80

Thursday,

No. 127

July 2, 2015

Part III





Department of Defense





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General Services Administration





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National Aeronautics and Space Administration





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48 CFR Chapter 1





Federal Acquisition Regulation; Rules

Federal Register / Vol. 80 , No. 127 / Thursday, July 2, 2015 / Rules 
and Regulations

[[Page 38292]]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Chapter 1

[Docket No. FAR 2015-0051, Sequence No. 3]


Federal Acquisition Regulation; Federal Acquisition Circular 
2005-83; Introduction

AGENCY: Department of Defense (DoD), General Services Administration 
(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Summary presentation of final rules.

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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 (Councils) in this Federal 
Acquisition Circular (FAC) 2005-83. 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 see the separate documents, which follow.

FOR FURTHER INFORMATION CONTACT: The analyst whose name appears in the 
table below in relation to the FAR case. Please cite FAC 2005-83 and 
the specific FAR case number. For information pertaining to status or 
publication schedules, contact the Regulatory Secretariat at 202-501-
4755.

                       Rules Listed in FAC 2005-83
------------------------------------------------------------------------
      Item               Subject           FAR Case          Analyst
------------------------------------------------------------------------
I...............  Inflation Adjustment        2014-022  Jackson.
                   of Acquisition--
                   Related Thresholds.
II..............  Prohibition on              2015-006  Jackson.
                   Contracting with
                   Inverted Domestic
                   Corporations--Repre
                   sentation and
                   Notification.
III.............  Update to Product           2015-008  Jackson.
                   and Service Codes.
IV..............  Clarification on            2014-020  Jackson.
                   Justification for
                   Urgent
                   Noncompetitive
                   Awards Exceeding
                   One Year.
V...............  Prohibition on              2014-017  Jackson.
                   Contracting with
                   Inverted Domestic
                   Corporations.
VI..............  Permanent Authority         2015-010  Jackson.
                   for Use of
                   Simplified
                   Acquisition
                   Procedures for
                   Certain Commercial
                   Items.
VII.............  Technical Amendments  ..............  ................
------------------------------------------------------------------------


SUPPLEMENTARY INFORMATION: Summaries for each FAR rule follow. For the 
actual revisions and/or amendments made by these rules, refer to the 
specific item numbers and subjects set forth in the documents following 
these item summaries. FAC 2005-83 amends the FAR as specified below:

Item I--Inflation Adjustment of Acquisition-Related Thresholds (FAR 
Case 2014-022)

    This final rule amends the FAR to implement 41 U.S.C. 1908, which 
requires an adjustment every five years of acquisition-related 
thresholds for inflation using the Consumer Price Index for all urban 
consumers, except 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 also use the same methodology to adjust nonstatutory FAR 
acquisition-related thresholds.
    This is the third review of FAR acquisition-related thresholds. The 
Councils published a proposed rule in the Federal Register at 79 FR 
70141 on November 25, 2014.
    There is no change in the final rule from the proposed frequently-
used thresholds identified in the proposed rule:
     The micro-purchase base threshold of $3,000 (FAR 2.101) is 
increased to $3,500.
     The simplified acquisition threshold (FAR 2.101) of 
$150,000 is unchanged.
     The FedBizOpps preaward and post-award notices (FAR part 
5) remain at $25,000 because of trade agreements.
     The threshold for use of simplified acquisition procedures 
for acquisition of commercial items (FAR 13.500) is raised from $6.5 
million to $7 million.
     The cost or pricing data threshold (FAR 15.403-4) and the 
statutorily equivalent Cost Accounting Standard threshold are raised 
from $700,000 to $750,000.
     The prime contractor subcontracting plan (FAR 19.702) 
floor is raised from $650,000 to $700,000, and the construction 
threshold of $1.5 million stays the same.
     The threshold for reporting first-tier subcontract 
information including executive compensation will increase from $25,000 
to $30,000 (FAR subpart 4.14 and 52.204-10).

Item II--Prohibition on Contracting With Inverted Domestic 
Corporations--Representation and Notification (FAR Case 2015-006)

    This final rule amends the provision and clause of the FAR that 
address the continuing Government-wide statutory prohibition (in effect 
since fiscal year 2008) on the award of contracts using appropriated 
funds to any foreign incorporated entity that is an inverted domestic 
corporation (under section 835 of the Homeland Security Act of 2002, 
codified at 6 U.S.C. 395) or to any subsidiary of such entity. In 
particular, this rule modifies the existing representation at FAR 
52.209-2 and adds a requirement in the clause at 52.209-10 to notify 
the contracting officer if the contractor becomes an inverted domestic 
corporation, or a subsidiary of an inverted domestic corporation, 
during performance of the contract.
    This rule will not have any significant effect on most contractors, 
because few contractors are expected to become an inverted domestic 
corporation or a subsidiary of an inverted domestic corporation during 
contract performance. Small business concerns are particularly unlikely 
to have been incorporated in the United States and then reincorporated 
in a tax haven.

Item III--Update to Product and Service Codes (FAR Case 2015-008)

    DoD, GSA, and NASA are revising the FAR to update the descriptions 
of the Federal product and service codes to conform to the Federal 
Procurement Data System Product and Service Codes Manual, August 2011 
Edition. There is

[[Page 38293]]

no change to the groups covered, and the new descriptions better 
reflect product coverage.
    This final rule is not required to be published for public comment, 
because it does not change the Federal Supply Groups covered, but just 
updates the descriptions of the listed product service groups to 
reflect the current Product and Service Codes Manual. It does not 
impact which products are subject to the service contract labor 
standards or trade agreements.

Item IV--Clarification on Justification for Urgent Noncompetitive 
Awards Exceeding One Year (FAR Case 2014-020)

    DoD, GSA, and NASA are issuing a final rule amending the FAR to 
clarify when a justification for noncompetitive contracts based on 
urgency, exceeding one year, is needed. The rule comes as a response to 
Government Accountability Office (GAO) report GAO-14-304, entitled 
Federal Contracting: Noncompetitive Contracts Based on Urgency Need 
Additional Oversight, dated March 2014.
    This rule is not expected to have a significant impact on small 
businesses. Contracting officers will benefit from this rule because it 
clarifies when determinations of exceptional circumstances are needed 
when awarding a noncompetitive contract on the basis of unusual and 
compelling urgency, exceeding one year, either at time of award or 
modified after contract award.

Item V--Prohibition on Contracting With Inverted Domestic Corporations 
(FAR Case 2014-017)

    This rule converts to a final rule, without change, an interim rule 
that amended the provisions of the FAR that address the continuing 
Governmentwide statutory prohibition (in effect since fiscal year 2008) 
on the award of contracts using appropriated funds to any foreign 
incorporated entity that is an inverted domestic corporation (under 
section 835 of the Homeland Security Act of 2002, codified at 6 U.S.C. 
395) or to any subsidiary of such entity. The interim rule amended FAR 
9.108 to revise the FAR coverage, including the language of 
solicitation provisions and contract clauses, so that it more clearly 
reflects the ongoing, continuing nature of the statutory prohibition on 
contracting with inverted domestic corporations and their subsidiaries.
    This rule does not have an effect on small business because this 
rule will only impact an offeror that is a foreign incorporated entity 
that is treated as an inverted domestic corporation and wants to do 
business with the Government. Small business concerns are unlikely to 
have been incorporated in the United States and then reincorporated in 
a tax haven.

Item VI--Permanent Authority for Use of Simplified Acquisition 
Procedures for Certain Commercial Items (FAR Case 2015-010)

    This is a final rule to amend FAR subparts 13.5 and 18.2 to 
implement section 815 of the Carl Levin and Howard P. `Buck' McKeon 
National Defense Authorization Act for Fiscal Year 2015 (Pub. L. 113-
291). Section 815 amends section 4202(e) of the Clinger-Cohen Act of 
1996 (Divisions D and E of Pub. L. 104-106; 10 U.S.C. 2304 note) to 
make permanent the test program for special simplified procedures for 
purchases of commercial items greater than the simplified acquisition 
threshold, but not exceeding $6.5 million ($12 million for certain 
acquisitions). This final rule is not required to be published for 
public comment because it makes permanent a statutory authority that 
currently exists within the FAR. The rule will not have a significant 
impact on small business or on Government contracting officers.

Item VII--Technical Amendments

    Editorial changes are made at FAR 15.404-2(b)(2), 52.204-16(b)(3), 
52.204-18(d), and 52.212-5(e)(1)(ii)(E).

    Dated: June 18, 2015.

William Clark,
Director, Office of Government-wide Acquisition Policy, Office of 
Acquisition Policy, Office of Government-wide Policy.

    Federal Acquisition Circular (FAC) 2005-83 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 2005-83 is 
effective July 2, 2015 except for item I which is effective October 1, 
2015; item II which is effective November 1, 2015; and items III, IV, 
and VI which are effective August 3, 2015.

    Dated: June 25, 2015.
LeAntha D. Sumpter,
Acting Director of Defense Procurement and Acquisition Policy.
    Dated: June 25, 2015.

Jeffrey A. Koses,
Senior Procurement Executive/Deputy CAO, Office of Acquisition Policy, 
U.S. General Services Administration.
    Dated: June 24, 2015.

William P. McNally,
Assistant Administrator, Office of Procurement National Aeronautics and 
Space Administration.
[FR Doc. 2015-16205 Filed 7-1-15; 8:45 am]
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