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)
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
Federal Register Volume 80, Issue 127 (July 2, 2015)
| Page Range | 38291-38293 | |
| FR Document | 2015-16205 |
[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 ----------------------------------------------------------------------- General Services Administration ----------------------------------------------------------------------- National Aeronautics and Space Administration ----------------------------------------------------------------------- 48 CFR Chapter 1 Federal Acquisition Regulation; Rules Federal Register / Vol. 80 , No. 127 / Thursday, July 2, 2015 / Rules and Regulations [[Page 38292]] ----------------------------------------------------------------------- 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. ----------------------------------------------------------------------- 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] BILLING CODE 6820-EP-P
![38292 Federal Register / Vol. 80, No. 127 / Thursday, July 2, 2015 / Rules and Regulations
DEPARTMENT OF DEFENSE and National Aeronautics and Space DATES: For effective dates see the
Administration (NASA). separate documents, which follow.
GENERAL SERVICES
ADMINISTRATION ACTION: Summary presentation of final FOR FURTHER INFORMATION CONTACT: The
rules. analyst whose name appears in the table
NATIONAL AERONAUTICS AND below in relation to the FAR case.
SPACE ADMINISTRATION SUMMARY: This document summarizes Please cite FAC 2005–83 and the
the Federal Acquisition Regulation specific FAR case number. For
48 CFR Chapter 1 (FAR) rules agreed to by the Civilian information pertaining to status or
Agency Acquisition Council and the publication schedules, contact the
[Docket No. FAR 2015–0051, Sequence Defense Acquisition Regulations Regulatory Secretariat at 202–501–4755.
No. 3] Council (Councils) in this Federal
Acquisition Circular (FAC) 2005–83. A
Federal Acquisition Regulation;
Federal Acquisition Circular 2005–83; companion document, the Small Entity
Introduction Compliance Guide (SECG), follows this
FAC. The FAC, including the SECG, is
AGENCY: Department of Defense (DoD), available via the Internet at http://
General Services Administration (GSA), www.regulations.gov.
RULES LISTED IN FAC 2005–83
Item Subject FAR Case Analyst
I ..................... Inflation Adjustment of Acquisition—Related Thresholds .............................................................. 2014–022 Jackson.
II .................... Prohibition on Contracting with Inverted Domestic Corporations—Representation and Notifica- 2015–006 Jackson.
tion.
III ................... Update to Product and Service Codes .......................................................................................... 2015–008 Jackson.
IV .................. Clarification on Justification for Urgent Noncompetitive Awards Exceeding One Year ................ 2014–020 Jackson.
V ................... Prohibition on Contracting with Inverted Domestic Corporations .................................................. 2014–017 Jackson.
VI .................. Permanent Authority for Use of Simplified Acquisition Procedures for Certain Commercial 2015–010 Jackson.
Items.
VII ................. Technical Amendments .................................................................................................................. ........................
SUPPLEMENTARY INFORMATION: • The micro-purchase base threshold prohibition (in effect since fiscal year
Summaries for each FAR rule follow. of $3,000 (FAR 2.101) is increased to 2008) on the award of contracts using
For the actual revisions and/or $3,500. appropriated funds to any foreign
amendments made by these rules, refer • The simplified acquisition incorporated entity that is an inverted
to the specific item numbers and threshold (FAR 2.101) of $150,000 is domestic corporation (under section 835
subjects set forth in the documents unchanged. of the Homeland Security Act of 2002,
following these item summaries. FAC • The FedBizOpps preaward and codified at 6 U.S.C. 395) or to any
2005–83 amends the FAR as specified post-award notices (FAR part 5) remain subsidiary of such entity. In particular,
below: at $25,000 because of trade agreements. this rule modifies the existing
• The threshold for use of simplified representation at FAR 52.209–2 and
Item I—Inflation Adjustment of acquisition procedures for acquisition of adds a requirement in the clause at
Acquisition-Related Thresholds (FAR commercial items (FAR 13.500) is raised 52.209–10 to notify the contracting
Case 2014–022) from $6.5 million to $7 million. officer if the contractor becomes an
This final rule amends the FAR to • The cost or pricing data threshold inverted domestic corporation, or a
implement 41 U.S.C. 1908, which (FAR 15.403–4) and the statutorily subsidiary of an inverted domestic
requires an adjustment every five years equivalent Cost Accounting Standard corporation, during performance of the
of acquisition-related thresholds for threshold are raised from $700,000 to contract.
inflation using the Consumer Price $750,000. This rule will not have any significant
Index for all urban consumers, except • The prime contractor effect on most contractors, because few
the Construction Wage Rate subcontracting plan (FAR 19.702) floor contractors are expected to become an
Requirements statute (Davis-Bacon Act), is raised from $650,000 to $700,000, and inverted domestic corporation or a
Service Contract Labor Standards the construction threshold of $1.5 subsidiary of an inverted domestic
statute, and trade agreements thresholds million stays the same. corporation during contract
(see FAR 1.109). As a matter of policy, • The threshold for reporting first-tier performance. Small business concerns
DoD, GSA, and NASA also use the same subcontract information including are particularly unlikely to have been
methodology to adjust nonstatutory FAR executive compensation will increase incorporated in the United States and
acquisition-related thresholds. from $25,000 to $30,000 (FAR subpart then reincorporated in a tax haven.
This is the third review of FAR 4.14 and 52.204–10).
asabaliauskas on DSK5VPTVN1PROD with RULES
acquisition-related thresholds. The Item III—Update to Product and
Councils published a proposed rule in Item II—Prohibition on Contracting Service Codes (FAR Case 2015–008)
the Federal Register at 79 FR 70141 on With Inverted Domestic Corporations— DoD, GSA, and NASA are revising the
November 25, 2014. Representation and Notification (FAR FAR to update the descriptions of the
There is no change in the final rule Case 2015–006) Federal product and service codes to
from the proposed frequently-used This final rule amends the provision conform to the Federal Procurement
thresholds identified in the proposed and clause of the FAR that address the Data System Product and Service Codes
rule: continuing Government-wide statutory Manual, August 2011 Edition. There is
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![Federal Register / Vol. 80, No. 127 / Thursday, July 2, 2015 / Rules and Regulations 38293
no change to the groups covered, and inverted domestic corporation and Dated: June 25, 2015.
the new descriptions better reflect wants to do business with the LeAntha D. Sumpter,
product coverage. Government. Small business concerns Acting Director of Defense Procurement and
This final rule is not required to be are unlikely to have been incorporated Acquisition Policy.
published for public comment, because in the United States and then Dated: June 25, 2015.
it does not change the Federal Supply reincorporated in a tax haven. Jeffrey A. Koses,
Groups covered, but just updates the
Item VI—Permanent Authority for Use Senior Procurement Executive/Deputy CAO,
descriptions of the listed product Office of Acquisition Policy, U.S. General
service groups to reflect the current of Simplified Acquisition Procedures Services Administration.
Product and Service Codes Manual. It for Certain Commercial Items (FAR Dated: June 24, 2015.
does not impact which products are Case 2015–010)
subject to the service contract labor William P. McNally,
standards or trade agreements. This is a final rule to amend FAR Assistant Administrator, Office of
subparts 13.5 and 18.2 to implement Procurement National Aeronautics and Space
Item IV—Clarification on Justification section 815 of the Carl Levin and Administration.
for Urgent Noncompetitive Awards [FR Doc. 2015–16205 Filed 7–1–15; 8:45 am]
Howard P. ‘Buck’ McKeon National
Exceeding One Year (FAR Case 2014–
Defense Authorization Act for Fiscal BILLING CODE 6820–EP–P
020)
Year 2015 (Pub. L. 113–291). Section
DoD, GSA, and NASA are issuing a 815 amends section 4202(e) of the
final rule amending the FAR to clarify DEPARTMENT OF DEFENSE
Clinger-Cohen Act of 1996 (Divisions D
when a justification for noncompetitive and E of Pub. L. 104–106; 10 U.S.C.
contracts based on urgency, exceeding GENERAL SERVICES
2304 note) to make permanent the test ADMINISTRATION
one year, is needed. The rule comes as
program for special simplified
a response to Government
procedures for purchases of commercial NATIONAL AERONAUTICS AND
Accountability Office (GAO) report
items greater than the simplified SPACE ADMINISTRATION; 48 CFR
GAO–14–304, entitled Federal
Contracting: Noncompetitive Contracts acquisition threshold, but not exceeding Parts 1, 2, 3, 4, 6, 7, 8, 9, 10, 12, 13,
Based on Urgency Need Additional $6.5 million ($12 million for certain 15, 16, 17, 19, 22, 25, 28, 30, 42, 50, 52,
Oversight, dated March 2014. acquisitions). This final rule is not and 53
This rule is not expected to have a required to be published for public [FAC 2005–83; FAR Case 2014–022; Item
significant impact on small businesses. comment because it makes permanent a I; Docket No. 2014–0022, Sequence No. 1]
Contracting officers will benefit from statutory authority that currently exists
RIN 9000–AM80
this rule because it clarifies when within the FAR. The rule will not have
determinations of exceptional a significant impact on small business Federal Acquisition Regulation;
circumstances are needed when or on Government contracting officers. Inflation Adjustment of Acquisition-
awarding a noncompetitive contract on Related Thresholds
the basis of unusual and compelling Item VII—Technical Amendments
urgency, exceeding one year, either at AGENCY: Department of Defense (DoD),
Editorial changes are made at FAR
time of award or modified after contract General Services Administration (GSA),
15.404–2(b)(2), 52.204–16(b)(3), 52.204– and National Aeronautics and Space
award. 18(d), and 52.212–5(e)(1)(ii)(E). Administration (NASA).
Item V—Prohibition on Contracting Dated: June 18, 2015. ACTION: Final rule.
With Inverted Domestic Corporations William Clark,
(FAR Case 2014–017) Director, Office of Government-wide
SUMMARY: DoD, GSA, and NASA are
This rule converts to a final rule, Acquisition Policy, Office of Acquisition
issuing this final rule amending the
without change, an interim rule that Policy, Office of Government-wide Policy. Federal Acquisition Regulation (FAR) to
amended the provisions of the FAR that implement the inflation adjustment of
address the continuing Federal Acquisition Circular (FAC) acquisition-related dollar thresholds. A
Governmentwide statutory prohibition 2005–83 is issued under the authority of statute requires an adjustment every five
(in effect since fiscal year 2008) on the the Secretary of Defense, the years of acquisition-related thresholds
award of contracts using appropriated Administrator of General Services, and for inflation using the Consumer Price
funds to any foreign incorporated entity the Administrator for the National Index for all urban consumers, except
that is an inverted domestic corporation Aeronautics and Space Administration. for the Construction Wage Rate
(under section 835 of the Homeland Requirements statute (formerly Davis-
Unless otherwise specified, all Bacon Act), Service Contract Labor
Security Act of 2002, codified at 6 Federal Acquisition Regulation (FAR)
U.S.C. 395) or to any subsidiary of such Standards statute, and trade agreements
and other directive material contained thresholds. DoD, GSA, and NASA have
entity. The interim rule amended FAR in FAC 2005–83 is effective July 2, 2015
9.108 to revise the FAR coverage, also used the same methodology to
except for item I which is effective adjust nonstatutory FAR acquisition-
including the language of solicitation
October 1, 2015; item II which is related thresholds.
provisions and contract clauses, so that
effective November 1, 2015; and items DATES: Effective: October 1, 2015.
it more clearly reflects the ongoing,
asabaliauskas on DSK5VPTVN1PROD with RULES
continuing nature of the statutory III, IV, and VI which are effective FOR FURTHER INFORMATION CONTACT: Mr.
prohibition on contracting with inverted August 3, 2015. Michael O. Jackson, Procurement
domestic corporations and their Analyst, at 202–208–4949, for
subsidiaries. clarification of content. For information
This rule does not have an effect on pertaining to status or publication
small business because this rule will schedules, contact the Regulatory
only impact an offeror that is a foreign Secretariat at 202–501–4755. Please cite
incorporated entity that is treated as an FAC 2005–83, FAR Case 2014–022.
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Document Created: 2015-12-15 13:15:57
Document Modified: 2015-12-15 13:15:57
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Rules and Regulations | |
| Action | Summary presentation of final rules. | |
| Dates | For effective dates see the separate documents, which follow. | |
| 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. | |
| FR Citation | 80 FR 38291 |
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