80 FR 38293 - Federal Acquisition Regulation; Inflation Adjustment of Acquisition-Related Thresholds
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 | 38293-38306 | |
| FR Document | 2015-16206 |
[Federal Register Volume 80, Number 127 (Thursday, July 2, 2015)] [Rules and Regulations] [Pages 38293-38306] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-16206] ----------------------------------------------------------------------- DEPARTMENT OF DEFENSE GENERAL SERVICES ADMINISTRATION NATIONAL AERONAUTICS AND SPACE ADMINISTRATION; 48 CFR Parts 1, 2, 3, 4, 6, 7, 8, 9, 10, 12, 13, 15, 16, 17, 19, 22, 25, 28, 30, 42, 50, 52, and 53 [FAC 2005-83; FAR Case 2014-022; Item I; Docket No. 2014-0022, Sequence No. 1] RIN 9000-AM80 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 this final rule amending the Federal Acquisition Regulation (FAR) to implement the inflation adjustment of acquisition-related dollar thresholds. A statute requires an adjustment every five years of acquisition-related thresholds for inflation using the Consumer Price Index for all urban consumers, except for the Construction Wage Rate Requirements statute (formerly Davis-Bacon Act), Service Contract Labor Standards statute, and trade agreements thresholds. DoD, GSA, and NASA have also used the same methodology to adjust nonstatutory FAR acquisition-related thresholds. DATES: Effective: October 1, 2015. FOR FURTHER INFORMATION CONTACT: Mr. Michael O. Jackson, Procurement Analyst, at 202-208-4949, for clarification of content. For information pertaining to status or publication schedules, contact the Regulatory Secretariat at 202-501-4755. Please cite FAC 2005-83, FAR Case 2014- 022. [[Page 38294]] SUPPLEMENTARY INFORMATION: I. Background This rule amends multiple FAR parts 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 also use the same methodology to adjust nonstatutory FAR acquisition-related thresholds. DoD, GSA, and NASA published a proposed rule in the Federal Register at 79 FR 70141 on November 25, 2014. The preamble to the proposed rule contained detailed explanation 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. Two respondents submitted comments on the proposed rule, which are addressed in the following section. The final rule has been coordinated with the Department of Labor and the Small Business Administration in areas of the regulation for which they are the lead agency. 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 discussion of the comments is provided as follows: A. Summary of Changes Between the Proposed Rule and the Final Rule. Although there were no changes between the proposed rule and the final rule as the result of public comments, some of the thresholds in the final rule are lower than proposed, due to lower inflation than was projected at the time of publication of the proposed rule. 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 $1,500,000 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 section 52.204-10). The URL for the location of the current matrix of threshold escalation is provided at FAR 1.109(d). B. Analysis of Public Comments 1. Inclusion of Specific Dollar Thresholds in Clauses Comment: One respondent was of the opinion that when a dollar threshold is stated in the body of the clause, the threshold applies for the life of the contract, but if the clause instead refers to the threshold in the underlying FAR text, the threshold in the clause would automatically adjust when there was a change to the threshold in the FAR text. Response: The Councils note that the Definitions clause at FAR 52.202-1, as prescribed at FAR 2.201, is to be included in all solicitations and contracts that exceed the simplified acquisition threshold. This clause specifies that, with a few limited exceptions, when a solicitation provision or contract clause uses a word or term that is defined in the FAR, the word or term has the same meaning as that definition in FAR 2.101 in effect at the time the solicitation was issued. Therefore, since the dollar value of the simplified acquisition threshold is included in the definition of ``simplified acquisition threshold'' in FAR part 2, the dollar threshold that is in effect at the time of issuance of the solicitation stays in effect for the life of the contract, unless the contracting parties agree otherwise. Likewise, when a clause refers to a threshold in the FAR that is not included in a definition, the Councils generally presume that the threshold stays fixed for the life of the contract, unless the parties specify otherwise. Therefore, it should not create discrepancies, whether a clause includes the dollar threshold, or references a definition or other text in the FAR to establish the value of the threshold. 2. Rounding Methodology Comment: One respondent noted an apparent disproportionate inflation adjustment between the lower and higher dollar thresholds, particularly in the under $1 million range. The respondent suggested that Congress should use smaller dollar intervals to analyze the adjustment, or adjustments more frequent than every five years. Response: The Councils have adjusted the thresholds in accordance with the statutory requirement, and cannot use different dollar intervals or adjustment periods unless Congress amends the statute. C. Other Changes 1. Some Lower Thresholds in Final Rule The proposed rule was based on a projected CPI of 245 for March 2015. The final rule is based on an actual CPI of 236.119 for March 2015. The CPI as of the end of March, six months before the effective date of the rule, is used as the cutoff in order to allow time for approval and publication of the final rule. Because the actual CPI index for March 2015 is about ten points lower than the CPI index projected for that date at the time of the proposed rule, thresholds of at least 10 million dollars are generally proportionally lower than the proposed thresholds. Thresholds of less than $10 million are frequently unchanged, due to rounding. 2. Thresholds Related to Substantial Bundling The thresholds at FAR 7.107(b) are nonstatutory thresholds passed based on policy, which were previously escalated by the FAR Council in October 2010. However, subsequent to the publication of the proposed rule under this FAR case 2014-022, the Councils became aware that the Small Business Administration (SBA) issued a final rule in the Federal Register at 78 FR 61114 on October 2, 2013, entitled ``Acquisition process: Task and Delivery Order Contracts, Bundling, Consolidation'', which incorporated these thresholds into the SBA regulations at 13 CFR 125.2(d)(2)(ii). It is therefore now outside the authority of [[Page 38295]] the FAR Council to escalate these thresholds, unless SBA first revises their regulations. 3. Cost Accounting Standards Threshold By law (41 U.S.C. 1502(b)(1)(B)), the threshold for application of the Cost Accounting Standards equals the threshold of cost or pricing data, as escalated. The proposed rule included escalation of the cost or pricing data threshold from $700,000 to $750,000, which is retained in the final rule. Therefore, the final rule also includes equivalent escalation of the Cost Accounting Standards threshold at FAR 30.201-4 and the clauses at 52.230-1 through 52.230-5 from $700,000 to $750,000. III. 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. IV. 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 comments in response to the initial regulatory flexibility analysis. This rule will likely affect to some extent all small business concerns that submit offers or are awarded contracts by the Federal Government. However, most of the threshold changes in this rule are not expected to have any significant economic impact on small business concerns because they 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 small dollar value acquisitions, which are the acquisitions in which small business concerns are most likely to participate. One threshold change in this rule that may temporarily impact small business concerns is the increase of the micro-purchase threshold (FAR 2.101) from $3,000 to $3,500. This will temporarily narrow the range of acquisitions automatically set aside for small business concerns, because the simplified acquisition threshold of $150,000 will not increase at this time (although it may increase to $200,000 in 2020). To assess the impact of the increase in the micro-purchase threshold from $3,000 to $3,500, data was requested from the Federal Procurement Data System-Next Generation (FPDS-NG). For Fiscal Year 2013, there were 83,951 contracts and calls/orders between $3,000 and $3,500, with a value of $272,567,926. Of these actions, 34,828 (value of $113,280,333) went to small business concerns. We expect that many of these awards will still go to small business concerns, even if there is no longer a requirement to automatically set the procurement aside for small business concerns. The rule does not impose any new reporting, recordkeeping, or compliance requirements. Changes in thresholds for approved information collection requirements are intended to maintain the status quo and prevent those requirements from increasing over time. There are no practical alternatives that will accomplish the objectives of the statute. Interested parties may obtain a copy of the FRFA from the Regulatory Secretariat. The Regulatory Secretariat has submitted a copy of the FRFA to the Chief Counsel for Advocacy of the Small Business Administration. V. Paperwork Reduction Act The Paperwork Reduction Act does apply. The changes to the FAR do not impose new information collection requirements that require the approval of the Office of Management and Budget (OMB) under 44 U.S.C. 3501, et seq. By adjusting the thresholds for inflation, the status quo for the current information collection requirements are maintained under the following OMB clearance numbers: 9000-0006, titled: Subcontracting Plans/Individual Subcontract Report (SF 294); 9000-0007, titled: Summary Subcontract Report; 9000-0027, titled: Value Engineering Requirements; FAR Sections Affected: Subparts 48.1 and 48.2; 52.248-2 and 52.248-3. 9000-0094, titled: Debarment and Suspension; 9000-0164, titled: Contractor Business Ethics Compliance Program and Disclosure Requirements; 9000-0177, titled: Reporting Executive Compensation and First-tier Subcontract Awards; 1250-0004, titled: OFCCP Recordkeeping and Reporting Requirements--38 U.S.C. 4212, Vietnam Era Veterans' Readjustment Assistance Act of 1974, as amended; and 1293-0005, titled: Federal Contractor Veterans Employment Report, VETS-100/VETS-100A. List of Subjects in 48 CFR Parts 1, 2, 3, 4, 6, 7, 8, 9, 10, 12, 13, 15, 16, 17, 19, 22, 25, 28, 30, 42, 50, 52, and 53 Government procurement. Dated: June 18, 2015. 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, 4, 6, 7, 8, 9, 10, 12, 13, 15, 16, 17, 19, 22, 25, 28, 30, 42, 50, 52, and 53 as set forth below: 0 1. The authority citation for 48 CFR parts 1, 2, 3, 4, 6, 7, 8, 9, 10, 12, 13, 15, 16, 17, 19, 22, 25, 28, 30, 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 by removing from paragraph (d) ``FAR Case 2008- 024'' and adding ``FAR Case 2014-022'' in its place. PART 2--DEFINITIONS OF WORDS AND TERMS 0 3. Amend section 2.101, in paragraph (b)(2) by-- 0 a. Revising paragraph (1) of the definition ``Major System''; 0 b. In the definition ``Micro-purchase threshold'' by removing from the introductory text ``$3,000'' and adding ``$3,500'' in its place; and removing from paragraph (3)(i) ``$15,000'' and adding ``$20,000'' in its place; 0 c. In the definition ``Simplified acquisition threshold'' by removing from the introductory text ``$150,000,'' and adding ``$150,000 (41 U.S.C. 134),'' in its place; and 0 d. In the definition ``Small business subcontractor'' by removing from paragraphs (1) and (2) ``$10,000'' and adding ``$15,000'' in their places. The revision reads as follows. [[Page 38296]] 2.101 Definitions. * * * * * (b) * * * (2) * * * Major system * * * (1) The Department of Defense is responsible for the system and the total expenditures for research, development, test, and evaluation for the system are estimated to be more than $185 million based on Fiscal Year 2014 constant dollars or the eventual total expenditure for the acquisition exceeds $835 million based on Fiscal Year 2014 constant dollars (or any update of these thresholds based on a more recent fiscal year, as specified in the DoD Instruction 5000.02, ``Operation of the Defense Acquisition System''); * * * * * 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) ``$5,000,000'' and adding ``$5.5 million'' in their places. PART 4--ADMINISTRATIVE MATTERS 4.605 [Amended] 0 5. Amend section 4.605 by removing from paragraphs (c)(2)(i) and (c)(2)(ii) ``$25,000'' and adding ``$30,000'' in their places. 4.1102 [Amended] 0 6. Amend section 4.1102 by removing from paragraph (a)(6) ``$25,000'' and adding ``$30,000'' in its place. 4.1401 [Amended] 0 7. Amend section 4.1401 by removing from paragraph (a) ``$25,000'' and adding ``$30,000'' in its place. 0 8. Amend section 4.1403 by revising paragraph (a) to read as follows: 4.1403 Contract clause. (a) Except as provided in paragraph (b) of this section, the contracting officer shall insert the clause at 52.204-10, Reporting Executive Compensation and First-Tier Subcontract Awards, in all solicitations and contracts of $30,000 or more. * * * * * PART 6--COMPETITION REQUIREMENTS 6.204 [Amended] 0 9. Amend section 6.204 by removing from paragraph (b) ``$20 million'' and adding ``$22 million'' in its place. 6.302-5 [Amended] 0 10. Amend section 6.302-5 by removing from paragraphs (b)(4) and (c)(2)(iii) ``$20 million'' and adding ``$22 million'' in their places. 6.303-1 [Amended] 0 11. Amend section 6.303-1 by removing from paragraph (b), introductory text, ``$20 million'' and adding ``$22 million'' in its place. 6.303-2 [Amended] 0 12. Amend section 6.303-2 by removing from the introductory text of paragraphs (b) and (d) ``$20 million'' and adding ``$22 million'' in their places. 6.304 [Amended] 0 13. Amend section 6.304 by-- 0 a. Removing from paragraph (a)(1) ``$650,000'' and adding ``$700,000'' in its place; 0 b. Removing from paragraph (a)(2) ``$650,000'' and ``$12.5 million'' and adding ``$700,000'' and ``$13.5 million'' in their places, respectively; 0 c. Removing from the introductory text of paragraph (a)(3) ``$12.5 million'', ``$62.5 million'', and ``85.5 million'' and adding ``$13.5 million'', ``$68 million'', and ``$93 million'' in their places, respectively; and 0 d. Removing from paragraph (a)(4) ``$62.5 million'' and ``$85.5 million'' and adding ``$68 million'' and ``$93 million'' in their places, respectively. PART 7--ACQUISITION PLANNING 7.104 [Amended] 0 14. Amend section 7.104 by-- 0 a. Removing from paragraph (d)(2)(i)(A) ``$8 million'' and adding ``$9 million'' in its place; and 0 b. Removing from paragraph (d)(2)(i)(B) ``$6 million'' and adding ``$6.5 million'' in its place. 7.107 [Amended] 0 15. Amend section 7.107 by removing from paragraph (b)(1) ``$94 million'' and adding ``$102 million'' in its place; and removing from paragraph (b)(2) ``$9.4 million'' and ``$94 million'' and adding ``$10.2 million'' and ``$102 million'' in their places, respectively. PART 8--REQUIRED SOURCES OF SUPPLIES AND SERVICES 8.404 [Amended] 0 16. Amend section 8.404 by removing from paragraph (b)(2) ``$500,000'' and adding ``$550,000'' in its place. 0 17. Amend section 8.405-3 by-- 0 a. Removing from paragraphs (a)(3)(ii) and (a)(3)(iii) ``$103 million'' and adding ``$112 million'' in their places; and 0 b. Revising paragraph (a)(7)(v). The revision reads as follows: 8.405-3 Blanket purchase agreements (BPAs). (a) * * * (7) * * * (v) Determination for a single-award BPA exceeding $112 million, if applicable (see (a)(3)(ii)) of this section); * * * * * 8.405-6 [Amended] 0 18. Amend section 8.405-6 by-- 0 a. Removing from paragraph (d)(1) ``$650,000'' and adding ``$700,000'' in its place; 0 b. Removing from paragraph (d)(2) ``$650,000'' and ``$12.5 million'' and adding ``$700,000'' and ``$13.5 million'' in their places, respectively; 0 c. Removing from the introductory text of paragraph (d)(3) ``$12.5 million'', ``$62.5 million'', and ``$85.5 million'', and adding ``$13.5 million'', ``$68 million'' and ``$93 million'' in their places, respectively; and 0 d. Removing from paragraph (d)(4) ``$62.5 million'' and ``$85.5 million'' and adding ``$68 million'' and ``$93 million'' in their places, respectively. PART 9--CONTRACTOR QUALIFICATIONS 9.104-5 [Amended] 0 19. Amend section 9.104-5 by removing from paragraph (a)(2) ``$3,000'' and adding ``$3,500'' in its place. 9.104-7 [Amended] 0 20. Amend section 9.104-7 by removing from paragraphs (b) and (c)(1) ``$500,000'' and adding ``$550,000'' in their places. 9.405-2 [Amended] 0 21. Amend section 9.405-2 by removing from paragraph (b) ``$30,000'' and adding ``$35,000'' in their places (twice). 9.406-2 [Amended] 0 22. Amend section 9.406-2 by removing from paragraph (b)(1)(v) ``$3,000'' and adding ``$3,500'' in its place. 9.407-2 [Amended] 0 23. Amend section 9.407-2 by removing from paragraph (a)(7) ``$3,000'' and adding ``$3,500'' in its place. [[Page 38297]] 9.409 [Amended] 0 24. Amend section 9.409 by removing ``$30,000'' and adding ``$35,000'' in its place. PART 10--MARKET RESEARCH 10.001 [Amended] 0 25. Amend section 10.001 by removing from paragraph (d) ``$5 million'' and adding ``$5.5 million'' in its place. 10.003 [Amended] 0 26. Amend section 10.003 by removing ``$5 million'' and adding ``$5.5 million'' in its place. PART 12--ACQUISITION OF COMMERCIAL ITEMS 12.102 [Amended] 0 27. Amend section 12.102 by removing from the introductory text of paragraph (f)(2) ``$17.5 million'' and adding ``$19 million'' in its place. 12.203 [Amended] 0 28. Amend section 12.203 by removing ``$6.5 million'' and ``$12 million'' and adding ``$7 million'' and ``$13 million'' in their places, respectively. PART 13--SIMPLIFIED ACQUISITION PROCEDURES 13.000 [Amended] 0 29. Amend section 13.000 by removing ``$6.5 million'' and ``$12 million'' and adding ``$7 million'' and ``$13 million'' in their places, respectively. 13.003 [Amended] 0 30. Amend section 13.003 by-- 0 a. Removing from paragraph (b)(1) ``$3,000'', ``$15,000'', and ``$300,000'' and adding ``$3,500'', ``$20,000'' and ``$350,000'' in their places, respectively; 0 b. Removing from paragraph (c)(1)(ii) ``$6.5 million'' and ``$12 million'' and adding ``$7 million'' and ``$13 million'' in their places, respectively; and 0 c. Removing from paragraph (g)(2) ``$6.5 million'' and ``$12 million'' and adding ``$7 million'' and ``$13 million'' in their places, respectively. 13.005 [Amended] 0 31. Amend section 13.005 by removing from paragraph (a)(2) ``$30,000'' and adding ``$35,000'' in its place. 13.106-1 [Amended] 0 32. Amend section 13.106-1 by removing from paragraphs (c)(2) and (d) ``$30,000'' and adding ``$25,000'' in their places. 13.201 [Amended] 0 33. Amend section 13.201 by removing from paragraph (g)(1)(i) ``$15,000'' and adding ``$20,000'' in its place. 13.303-5 [Amended] 0 34. Amend section 13.303-5 by-- 0 a. Removing from paragraph (b)(1) ``$6.5 million'' and ``$12 million'' and adding ``$7 million'' and ``$13 million'' in in their places, respectively; and 0 b. Removing from paragraph (b)(2) ``$6.5 million'' and ``$12 million'' and adding ``$7 million'' and ``$13 million'' in their places, respectively. 13.402 [Amended] 0 35. Amend section 13.402 by removing from paragraph (a) ``$30,000'' and adding ``$35,000'' in its place. 13.500 [Amended] 0 36. Amend section 13.500 by-- 0 a. Removing from paragraph (a) ``$6.5 million'' and ``$12 million'' and adding ``$7 million'' and ``$13 million'' in their places, respectively; and 0 b. Removing from the introductory text of paragraph (c) ``$12 million'' and adding ``$13 million'' in its place. 13.501 [Amended] 0 37. Amend section 13.501 by-- 0 a. Removing from paragraph (a)(2)(i) ``$650,000'' and adding ``$700,000'' in its place; 0 b. Removing from paragraph (a)(2)(ii) ''$650,000'' and ``$12.5 million'' and adding ``$700,000'' and ``$13.5 million'' in their places, respectively; 0 c. Removing from paragraph (a)(2)(iii) ''$12.5 million'', ``$62.5 million'', and ``$85.5 million'' and adding ``$13.5 million'', ``$68 million'', and ``$93 million'' in their places, respectively; and 0 d. Removing from paragraph (a)(2)(iv) ''$62.5 million'' and ``$85.5 million'' and adding ``$68 million'' and ``$93 million'' in their places, respectively. PART 15--CONTRACTING BY NEGOTIATION 15.403-1 [Amended] 0 38. Amend section 15.403-1 by removing from paragraph (c)(3)(iv) ``$17.5 million'' and adding ``$19 million'' in its place. 15.403-4 [Amended] 0 39. Amend section 15.403-4 by removing from the introductory text of paragraphs (a)(1) and (a)(1)(iii) ``$700,000'' and adding ``$750,000'' in its place. 15.404-3 [Amended] 0 40. Amend section 15.404-3 by removing from paragraph (c)(1)(i) ``$12.5 million'' and adding ``$13.5 million'' in its place. 15.407-2 [Amended] 0 41. Amend section 15.407-2 by removing from paragraph (c)(1) and the introductory text of paragraph (c)(2) ``$12.5 million'' and adding ``$13.5 million'' in their places. 15.408 [Amended] 0 42. Amend section 15.408 in Table 15-2, ``II. Cost Elements'' which follows paragraph (n)(2)(iii), by removing from paragraph ``A(2)'' ``$12.5 million'' and adding ``$13.5 million'' in its place. PART 16--TYPES OF CONTRACTS 16.503 [Amended] 0 43. Amend section 16.503 by removing from paragraph (b)(2) ``$103 million'' and adding ``$112 million'' in its place; and removing from paragraph (d)(1) ``$12.5 million'' and adding ``$13.5 million'' in its place. 16.504 [Amended] 0 44. Amend section 16.504 by-- 0 a. Removing from the introductory text of paragraph (c)(1)(ii)(D)(1) ``$103 million'' and adding ``$112 million'' in its place; 0 b. Removing from the introductory text of paragraph (c)(1)(ii)(D)(3) ``$103 million'' and adding ``$112 million'' in its place; and removing from the end of the paragraph the colon and adding an em dash in its place; 0 c. Removing from the end of paragraph (c)(1)(ii)(D)(3)(i) the period and adding ``; and'' in its place; and 0 d. Removing from the introductory text of paragraph (c)(2)(i) ``$12.5 million'' and adding ``$13.5 million'' in its place. 16.505 [Amended] 0 45. Amend section 16.505 by-- 0 a. Removing from the introductory text of paragraph (a)(4)(iii)(A) ``$25,000'' and adding ``$30,000'' in its place; 0 b. Removing from paragraph (b)(1)(i) ``$3,000'' and adding ``$3,500'' in its place; 0 c. Removing from the paragraph (b)(1)(iv) ``$5 million'' and ``$5 million'' and adding ``$5.5 million'' and ``$5.5 million'' in their places, respectively; 0 d. Removing from paragraph (b)(2)(i) ``$3,000'' and adding ``$3,500'' in its place; 0 e. Removing from the heading of paragraph (b)(2)(ii)(A) ``$3,000'' and adding ``$3,500'' in its place; [[Page 38298]] 0 f. Removing from the paragraph (b)(2)(ii)(C)(1) ``$650,000'' and adding ``$700,000'' in its place; 0 g. Removing from paragraph (b)(2)(ii)(C)(2) ``$650,000'' and ``$12.5 million'' and adding ``$700,000'' and ``13.5 million'' in their places, respectively; 0 h. Removing from paragraph (b)(2)(ii)(C)(3) ``$12.5 million'', ``$62.5 million'', and ``$85.5 million'' and adding ``13.5 million'', ``68 million'', and ``93 million'' in their places, respectively; 0 i. Removing from paragraph (b)(2)(ii)(C)(4) ``$62.5 million'' and ``$85.5 million'' and adding ``68 million'' and ``93 million'' in their places, respectively; and 0 j. Removing from the heading of paragraph (b)(6) ``$5 million'' and adding ``$5.5 million'' in its place; and removing from the introductory text ``$5 million'' and adding ``$5.5 million'' in its place. 16.506 [Amended] 0 46. Amend section 16.506 by removing from paragraphs (f) and (g) ``$12.5 million'' and adding ``$13.5 million'' in their places; and removing from paragraph (h) ``$5 million'' and adding ``5.5 million'' in its place. PART 17--SPECIAL CONTRACTING METHODS 17.108 [Amended] 0 47. Amend section 17.108 by removing from paragraph (a) ``$12.5 million'' and adding ``$13.5 million'' in its place; and removing from paragraph (b) ``$125 million'' and adding ``$135.5 million'' in its place. 17.500 [Amended] 0 48. Amend section 17.500 by removing from paragraph (c)(2) ``$500,000'' and adding ``$550,000'' in its place. PART 19--SMALL BUSINESS PROGRAMS 19.203 [Amended] 0 49. Amend section 19.203 by removing from paragraph (b) ``$3,000'' and ``$15,000'' and adding ``$3,500'' and ``$20,000'' in their places, respectively. 19.502-1 [Amended] 0 50. Amend section 19.502-1 by removing from paragraph (b) ``$3,000'' and ``$15,000'' and adding ``$3,500'' and ``$20,000'' in their places, respectively. 19.502-2 [Amended] 0 51. Amend section 19.502-2 by-- 0 a. Removing from paragraph (a) ``$3,000'' and ``$15,000'' and adding ``$3,500'' and ``$20,000'' in their places, respectively; and 0 b. Removing from the end of paragraph (b) ``that:'' and adding ``that-- '' in its place. 19.702 [Amended] 0 52. Amend section 19.702 by removing from paragraphs (a)(1) and (a)(2) ``$650,000'' and adding ``$700,000'' in their places. 19.704 [Amended] 0 53. Amend section 19.704 by removing from paragraph (a)(9) ``$650,000'' and adding ``$700,000'' in its place. 19.708 [Amended] 0 54. Amend section 19.708 by removing from paragraph (b)(1) ``$650,000'' and adding ``$700,000'' in its place. 19.805-1 [Amended] 0 55. Amend section 19.805-1 by removing from paragraph (a)(2) ``$6.5 million'' and adding ``$7 million'' in its place. 19.808-1 [Amended] 0 56. Amend section 19.808-1 by removing from paragraph (a) ``$20 million'' and adding ``$22 million'' in its place. 19.1306 [Amended] 0 57. Amend section 19.1306 by removing from paragraph (a)(2)(i) ``$6.5 million'' and adding ``$7 million'' in its place. 19.1406 [Amended] 0 58. Amend section 19.1406 by removing from paragraph (a)(2)(i) ``$6 million'' and adding ``$6.5 million'' in its place; and removing from paragraph (a)(2)(ii) ``$3.5 million'' and adding ``$4 million'' in its place. PART 22--APPLICATION OF LABOR LAWS TO GOVERNMENT 22.1103 [Amended] 0 59. Amend section 22.1103 by removing ``$650,000'' and adding ``$700,000'' in its place. 22.1303 [Amended] 0 60. Amend section 22.1303 by removing from paragraphs (a) and (c) ``$100,000'' and adding ``$150,000'' in their places. 22.1310 [Amended] 0 61. Amend section 22.1310 by removing from paragraph (a)(1) ``$100,000'' and adding ``$150,000'' in its place. PART 25--FOREIGN ACQUISITION 25.703-2 [Amended] 0 62. Amend section 25.703-2 by removing from paragraph (a)(2) ``$3,000'' and adding ``$3,500'' in its place. 25.703-4 [Amended] 0 63. Amend section 25.703-4 by removing from paragraphs (c)(5)(ii), (c)(7)(iii), and (c)(8)(iii) ``$3,000'' and adding ``$3,500'' in their places. PART 28--BONDS AND INSURANCE 28.102-1 [Amended] 0 64. Amend section 28.102-1 by removing from paragraph (b)(1) ``$30,000'' and adding ``$35,000'' in its place. 28.102-2 [Amended] 0 65. Amend section 28.102-2 by removing from paragraph (c) ``$30,000'' and adding ``$35,000'' in its place. 28.102-3 [Amended] 0 66. Amend section 28.102-3 by removing from paragraph (b) ``$30,000'' and adding ``$35,000'' in its place. PART 30--COST ACCOUNTING STANDARDS ADMINISTRATION 30.201-4 [Amended] 0 67. Amend section 30.201-4 by removing from paragraph (b)(1) ``$700,000'' and adding ``$750,000'' in its place. PART 42--CONTRACT ADMINISTRATION AND AUDIT SERVICES 42.709 [Amended] 0 68. Amend section 42.709 by removing from paragraph (b) ``$700,000'' and adding ``$750,000'' in its place. 42.709-6 [Amended] 0 69. Amend section 42.709-6 by removing ``$700,000'' and adding ``$750,000'' in its place. 42.1502 [Amended] 0 70. Amend section 42.1502 by removing from paragraph (e) ``$650,000'' and adding ``$700,000'' in its place (twice); and removing from paragraph (f) ``$30,000'' and adding ``$35,000'' in its place (twice). [[Page 38299]] PART 50--EXTRAORDINARY CONTRACTUAL ACTIONS AND THE SAFETY ACT 50.102-1 [Amended] 0 71. Amend section 50.102-1 by removing from paragraph (b) ``$65,000'' and adding ``$70,000'' in its place. 50.102-3 [Amended] 0 72. Amend section 50.102-3 by removing from paragraph (b)(4) ``$31.5 million'' and adding ``$34 million'' in its place; and removing from paragraphs (e)(1)(i) and (e)(1)(ii) ``$65,000'' and adding ``$70,000'' in their places. PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES 0 73. Amend section 52.203-13 by revising the date of clause; and removing from paragraph (d)(1) ``$5,000,000'' and adding ``$5.5 million'' in its place. The revision reads as follows: 52.203-13 Contractor Code of Business Ethics and Conduct * * * * * Contractor Code of Business Ethics and Conduct (Oct 2015) * * * * * 0 74. Amend section 52.203-14 by revising the date of the clause; and removing from the introductory text of paragraph (d) ``$5,000,000'' and adding ``$5.5 million'' in its place. The revision reads as follows: 52.203-14 Display of Hotline Poster(s). * * * * * Display of Hotline Poster(s) (Oct 2015) * * * * * 0 75. Amend section 52.204-10 by-- 0 a. Revising the date of the clause; 0 b. Removing from paragraphs (d)(2) and (d)(3) ``$25,000'' and adding ``$30,000'' in their places; and 0 c. Revising paragraph (e). The revisions read as follows: 52.204-10 Reporting Executive Compensation and First-Tier Subcontract Awards. * * * * * Reporting Executive Compensation and First-Tier Subcontract Awards (Oct 2015) (e) The Contractor shall not split or break down first-tier subcontract awards to a value less than $30,000 to avoid the reporting requirements in paragraph (d) of this clause. * * * * * 0 76. Amend section 52.209-5 by revising the date of the provision; and removing from paragraph (a)(1)(i)(D) ``$3,000'' and adding ``$3,500'' in its place. The revision reads as follows: 52.209-5 Certification Regarding Responsibility Matters. * * * * * Certification Regarding Responsibility Matters (Oct 2015) * * * * * 0 77. Amend section 52.209-6 by revising the date of the clause; and removing from paragraphs (b), (c), and (e)(1) ``$30,000'' and adding ``$35,000'' in their places. The revision reads as follows: 52.209-6 Protecting the Government's Interest When Subcontracting with Contractors Debarred, Suspended, or Proposed for Debarment. * * * * * Protecting the Government's Interest When Subcontracting With Contractors Debarred, Suspended, or Proposed for Debarment (Oct 2015) * * * * * 0 78. Amend section 52.212-1 by revising the date of the provision; and removing from paragraph (j) ``$3,000'' and adding ``$3,500'' in its place (twice). The revision reads as follows: 52.212-1 Instructions to Offerors--Commercial Items. * * * * * Instructions to Offerors--Commercial Items (Oct 2015) * * * * * 0 79. Amend section 52.212-3 by revising the date of the provision; and removing from paragraphs (h)(4) and (o)(2)(iii) ``$3,000'' and adding ``$3,500'' in their places. The revision reads as follows: 52.212-3 Offeror Representations and Certifications--Commercial Items. * * * * * Offeror Representations and Certifications--Commercial Items (Oct 2015) * * * * * 0 80. Amend section 52.212-5 by-- 0 a. Revising the date of the clause; 0 b. Revising paragraphs (b)(2), (b)(4), (b)(8), (b)(17)(i), (b)(17)(iv), (b)(29), (b)(31), (b)(34), and (e)(1)(i); 0 c. Removing from paragraph (e)(1)(ii) ``$650,000'' and adding ``$700,000'' in its place; 0 d. Revising paragraphs (e)(1)(vi), (e)(1)(viii), and (e)(1)(xiv); and 0 e. Amending Alternate II by revising the date of Alternate II and paragraphs (e)(1)(ii)(A), (e)(1)(ii)(C), (e)(1)(ii)(F), and (e)(1)(ii)(M). 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 2015) * * * * * (b) * * * __(2) 52.203-13, Contractor Code of Business Ethics and Conduct (Oct 2015) (41 U.S.C. 3509). * * * * * __(4) 52.204-10, Reporting Executive Compensation and First-Tier Subcontract Awards (Oct 2015) (Pub. L. 109-282) (31 U.S.C. 6101 note). * * * * * __(8) 52.209-6, Protecting the Government's Interest When Subcontracting with Contractors Debarred, Suspended, or Proposed for Debarment. (Oct 2015) (31 U.S.C. 6101 note). * * * * * __(17)(i) 52.219-9, Small Business Subcontracting Plan (Oct 2015) (15 U.S.C. 637(d)(4)). * * * * * __(iv) Alternate III (Oct 2015) of 52.219-9. * * * * * __(29) 52.222-35, Equal Opportunity for Veterans (Oct 2015) (38 U.S.C. 4212). * * * * * __(31) 52.222-37, Employment Reports on Veterans (Oct 2015) (38 U.S.C. 4212). * * * * * __(34) 52.222-54, Employment Eligibility Verification (Oct 2015). (E. O. 12989). (Not applicable to the acquisition of commercially available off-the-shelf items or certain other types of commercial items as prescribed in 22.1803.) * * * * * (e)(1) * * * (i) 52.203-13, Contractor Code of Business Ethics and Conduct (Oct 2015) (41 U.S.C. 3509). * * * * * (vi) 52.222-35, Equal Opportunity for Veterans (Oct 2015) (38 U.S.C. 4212). * * * * * (viii) 52.222-37, Employment Reports on Veterans (Oct 2015) (38 U.S.C. 4212). * * * * * (xiv) 52.222-54, Employment Eligibility Verification (Oct 2015) (E. O. 12989). * * * * * Alternate II (Oct 2015). * * * * * * * * (e)(1) * * * (ii) * * * [[Page 38300]] (A) 52.203-13, Contractor Code of Business Ethics and Conduct (Oct 2015) (41 U.S.C. 3509). * * * * * (C) 52.219-8, Utilization of Small Business Concerns (Oct 2015) (15 U.S.C. 637(d)(2) and (3)), in all subcontracts that offer further subcontracting opportunities. If the subcontract (except subcontracts to small business concerns) exceeds $700,000 ($1.5 million for construction of any public facility), the subcontractor must include 52.219-8 in lower tier subcontracts that offer subcontracting opportunities. * * * * * (F) 52.222-35, Equal Opportunity for Veterans (Oct 2015) (38 U.S.C. 4212). * * * * * (M) 52.222-4, Employment Eligibility Verification (Oct 2015) (Executive Order 12989). * * * * * 0 81. Amend section 52.213-4 by revising the date of the clause and paragraphs (a)(2)(viii), (b)(1)(i), (b)(1)(iv), (b)(1)(vi), and (b)(2)(i) to read as follows: 52.213-4 Terms and Conditions--Simplified Acquisitions (Other Than Commercial Items). * * * * * Terms and Conditions--Simplified Acquisitions (Other Than Commercial Items) (Oct 2015) * * * * * (a) * * * (2) * * * (viii) 52.244-6, Subcontracts for Commercial Items (Oct 2015). * * * * * (b) * * * (1) * * * (i) 52.204-10, Reporting Executive Compensation and First-Tier Subcontract Awards (Oct 2015) (Pub. L. 109-282) (31 U.S.C. 6101 note) (Applies to contracts valued at $30,000 or more). * * * * * (iv) 52.222-35, Equal Opportunity for Veterans (Oct 2015) (38 U.S.C. 4212) (applies to contracts of $150,000 or more). * * * * * (vi) 52.222-37, Employment Reports on Veterans (Oct 2015) (38 U.S.C. 4212) (applies to contracts of $150,000 or more). * * * * * (2) * * * (i) 52.209-6, Protecting the Government's Interest When Subcontracting with Contractors Debarred, Suspended, or Proposed for Debarment (Oct 2015) (Applies to contracts over $35,000). * * * * * 0 82. Amend section 52.219-9 by-- 0 a. Revising the date of the clause; 0 b. Removing from paragraph (d)(9) and paragraph (l)(2)(i)(C) ``$650,000'' and adding ``$700,000'' in their places; 0 c. Amending Alternate III by-- 0 1. Revising the date of Alternate III; 0 2. Removing from paragraph (l)(2)(i)(C) ``$550,000'' and ``$1,000,000'' and adding ``$700,000'' and ``$1.5 million'' in their places, respectively. The revision reads as follows: 52.219-9 Small Business Subcontracting Plan. * * * * * Small Business Subcontracting Plan (Oct 2015) * * * * * Alternate III (Oct 2015). * * * * * * * * 0 83. Amend section 52.222-35 by revising the date of the clause; and removing from paragraph (c) ``$100,000'' and adding ``$150,000'' in its place. The revision reads as follows: 52.222-35 Equal Opportunity for Veterans. * * * * * Equal Opportunity for Veterans (Oct 2015) * * * * * 0 84. Amend section 52.222-37 by revising the date of the clause; and removing from paragraph (g) ``$100,000'' and adding ``$150,000'' in its place. The revision reads as follows: 52.222-37 Employment Reports on Veterans. * * * * * Employment Reports on Veterans (Oct 2015) * * * * * 0 85. Amend section 52.222-54 by revising the date of the clause; and removing from paragraph (e)(2) ``$3,000'' and adding ``$3,500'' in its place. The revision reads as follows: 52.222-54 Employment Eligibility Verification. * * * * * Employment Eligibility Verification (Oct 2015) * * * * * 0 86. Amend section 52.225-25 by revising the date of the provision; and removing from paragraph (c)(3) ``$3,000'' and adding ``$3,500'' in its place. The revision text reads as follows: 52.225-25 Prohibition on Contracting With Entities Engaging in Certain Activities or Transactions Relating to Iran--Representation and Certifications. * * * * * Prohibition on Contracting With Entities Engaging in Certain Activities or Transactions Relating to Iran--Representation and Certifications (Oct 2015) * * * * * 0 87. Amend section 52.230-1 by revising the date of the provision; and removing from paragraph (a) ``$700,000'' and adding ``$750,000'' in its place. The revision reads as follows: 52.230-1 Cost Accounting Standards Notices and Certification. * * * * * Cost Accounting Standards Notices and Certification (Oct 2015) * * * * * 0 88. Amend section 52.230-2 by revising the date of the clause; and removing from paragraph (d) ``$700,000'' and adding ``$750,000'' in its place. The revision reads as follows: 52.230-2 Cost Accounting Standards. * * * * * Cost Accounting Standards (Oct 2015) * * * * * 0 89. Amend section 52.230-3 by revising the date of the clause; and removing from paragraph (d)(2) ``$700,000'' and adding ``$750,000'' in its place. The revision reads as follows: 52.230-3 Disclosure and Consistency of Cost Accounting Practices. * * * * * Disclosure and Consistency of Cost Accounting Practices (Oct 2015) * * * * * 0 90. Amend section 52.230-4 by revising the date of the clause; and removing from paragraph (d)(2) ``$700,000'' and adding ``$750,000'' in its place. The revision reads as follows: 52.230-4 Disclosure and Consistency of Cost Accounting Practices- Foreign Concerns. * * * * * Disclosure and Consistency of Cost Accounting Practices-Foreign Concerns (Oct 2015) * * * * * 0 91. Amend section 52.230-5 by revising the date of the clause; and removing from paragraph (d)(2) ``$700,000'' and adding ``$750,000'' in its place. The revision reads as follows: [[Page 38301]] 52.230-5 Cost Accounting Standards--Educational Institution. * * * * * Cost Accounting Standards--Educational Institution (Oct 2015) * * * * * 0 92. Amend section 52.244-6 by-- 0 a. Revising the date of the clause; 0 b. Revising paragraph (c)(1)(i); 0 c. Removing from paragraph (c)(1)(iii) ``$650,000'' and adding ``$700,000'' in its place; and 0 d. Revising paragraphs (c)(1)(vi) and (c)(1)(viii). The revisions read as follows: 52.244-6 Subcontracts for Commercial Items. * * * * * Subcontracts for Commercial Items (Oct 2015) * * * * * (c)(1) * * * (i) 52.203-13, Contractor Code of Business Ethics and Conduct (Oct 2015) (41 U.S.C. 3509), if the subcontract exceeds $5.5 million and has a performance period of more than 120 days. In altering this clause to identify the appropriate parties, all disclosures of violation of the civil False Claims Act or of Federal criminal law shall be directed to the agency Office of the Inspector General, with a copy to the Contracting Officer. * * * * * (vi) 52.222-35, Equal Opportunity for Veterans (Oct 2015)(38 U.S.C. 4212(a)); * * * * * (viii) 52.222-37, Employment Reports on Veterans (Oct 2015)(38 U.S.C. 4212). * * * * * 0 93. Amend section 52.248-3 by revising the date of the clause; and removing from paragraph (h) ``$65,000'' and adding ``$70,000'' in its place. The revision reads as follows: 52.248-3 Value Engineering-Construction. * * * * * Value Engineering-Construction (Oct 2015) * * * * * PART 53--FORMS 53.219 [Amended] 0 94. Amend section 53.219 by removing ``(Rev. 8/2014)'' and adding ``(Rev. 10/2015)'' in its place. 0 95. Revise section 53.301-294 to read as follows: 53.301-294 Subcontracting Report for Individual Contracts. BILLING CODE 6820-EP-P [[Page 38302]] [GRAPHIC] [TIFF OMITTED] TR02JY15.095 [[Page 38303]] [GRAPHIC] [TIFF OMITTED] TR02JY15.096 [[Page 38304]] [GRAPHIC] [TIFF OMITTED] TR02JY15.097 [[Page 38305]] [GRAPHIC] [TIFF OMITTED] TR02JY15.098 [[Page 38306]] [FR Doc. 2015-16206 Filed 7-1-15; 8:45 am] BILLING CODE 6820-EP-C
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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.
VerDate Sep<11>2014 21:24 Jul 01, 2015 Jkt 235001 PO 00000 Frm 00003 Fmt 4701 Sfmt 4700 E:\FR\FM\02JYR3.SGM 02JYR3](https://thefederalregister.org/doc/80_FR_38420/page/1.svg)
![Federal Register / Vol. 80, No. 127 / Thursday, July 2, 2015 / Rules and Regulations 38295
the FAR Council to escalate these This rule will likely affect to some extent 48.2; 52.248–2 and 52.248–3. 9000–
thresholds, unless SBA first revises their all small business concerns that submit offers 0094, titled: Debarment and Suspension;
regulations. or are awarded contracts by the Federal 9000–0164, titled: Contractor Business
Government. However, most of the threshold
Ethics Compliance Program and
3. Cost Accounting Standards Threshold changes in this rule are not expected to have
any significant economic impact on small Disclosure Requirements; 9000–0177,
By law (41 U.S.C. 1502(b)(1)(B)), the business concerns because they are intended titled: Reporting Executive
threshold for application of the Cost to maintain the status quo by adjusting for Compensation and First-tier Subcontract
Accounting Standards equals the changes in the value of the dollar. Often any Awards; 1250–0004, titled: OFCCP
threshold of cost or pricing data, as impact will be beneficial, by preventing Recordkeeping and Reporting
escalated. The proposed rule included burdensome requirements from applying to Requirements—38 U.S.C. 4212, Vietnam
escalation of the cost or pricing data more and more small dollar value Era Veterans’ Readjustment Assistance
threshold from $700,000 to $750,000, acquisitions, which are the acquisitions in
Act of 1974, as amended; and 1293–
which is retained in the final rule. which small business concerns are most
likely to participate. 0005, titled: Federal Contractor Veterans
Therefore, the final rule also includes One threshold change in this rule that may Employment Report, VETS–100/VETS–
equivalent escalation of the Cost temporarily impact small business concerns 100A.
Accounting Standards threshold at FAR is the increase of the micro-purchase
30.201–4 and the clauses at 52.230–1 List of Subjects in 48 CFR Parts 1, 2, 3,
threshold (FAR 2.101) from $3,000 to $3,500.
through 52.230–5 from $700,000 to This will temporarily narrow the range of 4, 6, 7, 8, 9, 10, 12, 13, 15, 16, 17, 19,
$750,000. acquisitions automatically set aside for small 22, 25, 28, 30, 42, 50, 52, and 53
business concerns, because the simplified Government procurement.
III. Executive Orders 12866 and 13563 acquisition threshold of $150,000 will not
increase at this time (although it may Dated: June 18, 2015.
Executive Orders (E.O.s) 12866 and
13563 direct agencies to assess all costs increase to $200,000 in 2020). To assess the William F. Clark,
and benefits of available regulatory impact of the increase in the micro-purchase Director, Office of Government-wide
threshold from $3,000 to $3,500, data was Acquisition Policy, Office of Acquisition
alternatives and, if regulation is requested from the Federal Procurement Data Policy, Office of Government-wide Policy.
necessary, to select regulatory System–Next Generation (FPDS–NG). For
approaches that maximize net benefits Fiscal Year 2013, there were 83,951 contracts Therefore, DoD, GSA, and NASA
(including potential economic, and calls/orders between $3,000 and $3,500, amend 48 CFR parts 1, 2, 3, 4, 6, 7, 8,
environmental, public health and safety with a value of $272,567,926. Of these 9, 10, 12, 13, 15, 16, 17, 19, 22, 25, 28,
effects, distributive impacts, and actions, 34,828 (value of $113,280,333) went 30, 42, 50, 52, and 53 as set forth below:
equity). E.O. 13563 emphasizes the to small business concerns. We expect that ■ 1. The authority citation for 48 CFR
importance of quantifying both costs many of these awards will still go to small parts 1, 2, 3, 4, 6, 7, 8, 9, 10, 12, 13, 15,
and benefits, of reducing costs, of business concerns, even if there is no longer
a requirement to automatically set the
16, 17, 19, 22, 25, 28, 30, 42, 50, 52, and
harmonizing rules, and of promoting 53 continues to read as follows:
procurement aside for small business
flexibility. This is not a significant concerns. Authority: 40 U.S.C. 121(c); 10 U.S.C.
regulatory action and, therefore, was not The rule does not impose any new chapter 137; and 51 U.S.C. 20113.
subject to review under section 6(b) of reporting, recordkeeping, or compliance
E.O. 12866, Regulatory Planning and requirements. Changes in thresholds for PART 1—FEDERAL ACQUISITION
Review, dated September 30, 1993. This approved information collection REGULATIONS SYSTEM
rule is not a major rule under 5 U.S.C. requirements are intended to maintain the
804. status quo and prevent those requirements 1.109 [Amended]
from increasing over time.
IV. Regulatory Flexibility Act There are no practical alternatives that will
■ 2. Amend section 1.109 by removing
accomplish the objectives of the statute. from paragraph (d) ‘‘FAR Case 2008–
DoD, GSA, and NASA have prepared 024’’ and adding ‘‘FAR Case 2014–022’’
a Final Regulatory Flexibility Analysis Interested parties may obtain a copy in its place.
(FRFA) consistent with the Regulatory of the FRFA from the Regulatory
Flexibility Act, 5 U.S.C. 601, et seq. The Secretariat. The Regulatory Secretariat PART 2—DEFINITIONS OF WORDS
FRFA is summarized as follows: has submitted a copy of the FRFA to the AND TERMS
This final rule amends the Federal Chief Counsel for Advocacy of the Small
Acquisition Regulation to implement 41 Business Administration. ■ 3. Amend section 2.101, in paragraph
U.S.C. 1908 and to amend other acquisition- (b)(2) by—
related dollar thresholds that are based on
V. Paperwork Reduction Act ■ a. Revising paragraph (1) of the
policy rather than statute in order to adjust The Paperwork Reduction Act does definition ‘‘Major System’’;
for the changing value of the dollar. 41 U.S.C. apply. The changes to the FAR do not ■ b. In the definition ‘‘Micro-purchase
1908 requires adjustment every five years of impose new information collection threshold’’ by removing from the
statutory acquisition-related dollar requirements that require the approval introductory text ‘‘$3,000’’ and adding
thresholds, except for Construction Wage
Rate Requirements statute (Davis-Bacon Act),
of the Office of Management and Budget ‘‘$3,500’’ in its place; and removing
Service Contract Labor Standards statute, and (OMB) under 44 U.S.C. 3501, et seq. By from paragraph (3)(i) ‘‘$15,000’’ and
trade agreements thresholds. While adjusting the thresholds for inflation, adding ‘‘$20,000’’ in its place;
reviewing all statutory acquisition-related the status quo for the current ■ c. In the definition ‘‘Simplified
thresholds, this case presented an information collection requirements are acquisition threshold’’ by removing
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opportunity to also review all nonstatutory maintained under the following OMB from the introductory text ‘‘$150,000,’’
acquisition-related thresholds in the FAR clearance numbers: 9000–0006, titled: and adding ‘‘$150,000 (41 U.S.C. 134),’’
that are based on policy. The objective of the Subcontracting Plans/Individual in its place; and
case is to maintain the status quo, by
adjusting acquisition-related thresholds for
Subcontract Report (SF 294); 9000– ■ d. In the definition ‘‘Small business
inflation. 0007, titled: Summary Subcontract subcontractor’’ by removing from
There were no significant issues raised by Report; 9000–0027, titled: Value paragraphs (1) and (2) ‘‘$10,000’’ and
the public comments in response to the Engineering Requirements; FAR adding ‘‘$15,000’’ in their places.
initial regulatory flexibility analysis. Sections Affected: Subparts 48.1 and The revision reads as follows.
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2.101 Definitions. 6.302–5 [Amended] adding ‘‘$112 million’’ in their places;
* * * * * ■ 10. Amend section 6.302–5 by and
(b) * * * removing from paragraphs (b)(4) and ■ b. Revising paragraph (a)(7)(v).
(2) * * * (c)(2)(iii) ‘‘$20 million’’ and adding The revision reads as follows:
Major system * * * ‘‘$22 million’’ in their places.
(1) The Department of Defense is 8.405–3 Blanket purchase agreements
responsible for the system and the total 6.303–1 [Amended] (BPAs).
expenditures for research, development, ■ 11. Amend section 6.303–1 by (a) * * *
test, and evaluation for the system are removing from paragraph (b), (7) * * *
estimated to be more than $185 million introductory text, ‘‘$20 million’’ and (v) Determination for a single-award
based on Fiscal Year 2014 constant adding ‘‘$22 million’’ in its place. BPA exceeding $112 million, if
dollars or the eventual total expenditure applicable (see (a)(3)(ii)) of this section);
6.303–2 [Amended]
for the acquisition exceeds $835 million
■ 12. Amend section 6.303–2 by * * * * *
based on Fiscal Year 2014 constant
dollars (or any update of these removing from the introductory text of 8.405–6 [Amended]
thresholds based on a more recent fiscal paragraphs (b) and (d) ‘‘$20 million’’
year, as specified in the DoD Instruction and adding ‘‘$22 million’’ in their ■ 18. Amend section 8.405–6 by—
5000.02, ‘‘Operation of the Defense places. ■ a. Removing from paragraph (d)(1)
Acquisition System’’); ‘‘$650,000’’ and adding ‘‘$700,000’’ in
6.304 [Amended] its place;
* * * * *
■ 13. Amend section 6.304 by— ■ b. Removing from paragraph (d)(2)
PART 3—IMPROPER BUSINESS ■ a. Removing from paragraph (a)(1) ‘‘$650,000’’ and ‘‘$12.5 million’’ and
PRACTICES AND PERSONAL ‘‘$650,000’’ and adding ‘‘$700,000’’ in adding ‘‘$700,000’’ and ‘‘$13.5 million’’
CONFLICTS OF INTEREST its place; in their places, respectively;
■ b. Removing from paragraph (a)(2)
■ c. Removing from the introductory
3.1004 [Amended] ‘‘$650,000’’ and ‘‘$12.5 million’’ and
text of paragraph (d)(3) ‘‘$12.5 million’’,
■ 4. Amend section 3.1004 by removing adding ‘‘$700,000’’ and ‘‘$13.5 million’’
‘‘$62.5 million’’, and ‘‘$85.5 million’’,
from paragraphs (a), (b)(1)(i), and (b)(3) in their places, respectively;
and adding ‘‘$13.5 million’’, ‘‘$68
■ c. Removing from the introductory
‘‘$5,000,000’’ and adding ‘‘$5.5 million’’ million’’ and ‘‘$93 million’’ in their
in their places. text of paragraph (a)(3) ‘‘$12.5 million’’,
places, respectively; and
‘‘$62.5 million’’, and ‘‘85.5 million’’ and
adding ‘‘$13.5 million’’, ‘‘$68 million’’, ■ d. Removing from paragraph (d)(4)
PART 4—ADMINISTRATIVE MATTERS
and ‘‘$93 million’’ in their places, ‘‘$62.5 million’’ and ‘‘$85.5 million’’
4.605 [Amended] respectively; and and adding ‘‘$68 million’’ and ‘‘$93
■ d. Removing from paragraph (a)(4) million’’ in their places, respectively.
■ 5. Amend section 4.605 by removing
from paragraphs (c)(2)(i) and (c)(2)(ii) ‘‘$62.5 million’’ and ‘‘$85.5 million’’
and adding ‘‘$68 million’’ and ‘‘$93 PART 9—CONTRACTOR
‘‘$25,000’’ and adding ‘‘$30,000’’ in QUALIFICATIONS
their places. million’’ in their places, respectively.
9.104–5 [Amended]
4.1102 [Amended] PART 7—ACQUISITION PLANNING
■ 19. Amend section 9.104–5 by
■ 6. Amend section 4.1102 by removing 7.104 [Amended] removing from paragraph (a)(2)
from paragraph (a)(6) ‘‘$25,000’’ and
■ 14. Amend section 7.104 by— ‘‘$3,000’’ and adding ‘‘$3,500’’ in its
adding ‘‘$30,000’’ in its place. ■ a. Removing from paragraph place.
4.1401 [Amended] (d)(2)(i)(A) ‘‘$8 million’’ and adding ‘‘$9
million’’ in its place; and 9.104–7 [Amended]
■ 7. Amend section 4.1401 by removing ■ b. Removing from paragraph
from paragraph (a) ‘‘$25,000’’ and ■ 20. Amend section 9.104–7 by
(d)(2)(i)(B) ‘‘$6 million’’ and adding removing from paragraphs (b) and (c)(1)
adding ‘‘$30,000’’ in its place. ‘‘$6.5 million’’ in its place. ‘‘$500,000’’ and adding ‘‘$550,000’’ in
■ 8. Amend section 4.1403 by revising
7.107 [Amended] their places.
paragraph (a) to read as follows:
■ 15. Amend section 7.107 by removing 9.405–2 [Amended]
4.1403 Contract clause.
from paragraph (b)(1) ‘‘$94 million’’ and
(a) Except as provided in paragraph ■ 21. Amend section 9.405–2 by
adding ‘‘$102 million’’ in its place; and
(b) of this section, the contracting officer removing from paragraph (b) ‘‘$30,000’’
removing from paragraph (b)(2) ‘‘$9.4
shall insert the clause at 52.204–10, and adding ‘‘$35,000’’ in their places
million’’ and ‘‘$94 million’’ and adding
Reporting Executive Compensation and (twice).
‘‘$10.2 million’’ and ‘‘$102 million’’ in
First-Tier Subcontract Awards, in all their places, respectively. 9.406–2 [Amended]
solicitations and contracts of $30,000 or
more. PART 8—REQUIRED SOURCES OF ■ 22. Amend section 9.406–2 by
* * * * * SUPPLIES AND SERVICES removing from paragraph (b)(1)(v)
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‘‘$3,000’’ and adding ‘‘$3,500’’ in its
PART 6—COMPETITION 8.404 [Amended] place.
REQUIREMENTS ■ 16. Amend section 8.404 by removing
9.407–2 [Amended]
from paragraph (b)(2) ‘‘$500,000’’ and
6.204 [Amended] adding ‘‘$550,000’’ in its place. ■ 23. Amend section 9.407–2 by
■ 9. Amend section 6.204 by removing ■ 17. Amend section 8.405–3 by— removing from paragraph (a)(7)
from paragraph (b) ‘‘$20 million’’ and ■ a. Removing from paragraphs (a)(3)(ii) ‘‘$3,000’’ and adding ‘‘$3,500’’ in its
adding ‘‘$22 million’’ in its place. and (a)(3)(iii) ‘‘$103 million’’ and place.
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9.409 [Amended] 13.201 [Amended] 15.404–3 [Amended]
■ 24. Amend section 9.409 by removing ■ 33. Amend section 13.201 by ■ 40. Amend section 15.404–3 by
‘‘$30,000’’ and adding ‘‘$35,000’’ in its removing from paragraph (g)(1)(i) removing from paragraph (c)(1)(i) ‘‘$12.5
place. ‘‘$15,000’’ and adding ‘‘$20,000’’ in its million’’ and adding ‘‘$13.5 million’’ in
place. its place.
PART 10—MARKET RESEARCH
13.303–5 [Amended] 15.407–2 [Amended]
10.001 [Amended]
■ 34. Amend section 13.303–5 by— ■ 41. Amend section 15.407–2 by
■ 25. Amend section 10.001 by
■ a. Removing from paragraph (b)(1) removing from paragraph (c)(1) and the
removing from paragraph (d) ‘‘$5
‘‘$6.5 million’’ and ‘‘$12 million’’ and introductory text of paragraph (c)(2)
million’’ and adding ‘‘$5.5 million’’ in
adding ‘‘$7 million’’ and ‘‘$13 million’’ ‘‘$12.5 million’’ and adding ‘‘$13.5
its place.
in in their places, respectively; and million’’ in their places.
10.003 [Amended] ■ b. Removing from paragraph (b)(2) 15.408 [Amended]
■ 26. Amend section 10.003 by ‘‘$6.5 million’’ and ‘‘$12 million’’ and
removing ‘‘$5 million’’ and adding adding ‘‘$7 million’’ and ‘‘$13 million’’ ■ 42. Amend section 15.408 in Table
‘‘$5.5 million’’ in its place. in their places, respectively. 15–2, ‘‘II. Cost Elements’’ which follows
paragraph (n)(2)(iii), by removing from
PART 12—ACQUISITION OF 13.402 [Amended] paragraph ‘‘A(2)’’ ‘‘$12.5 million’’ and
COMMERCIAL ITEMS ■ 35. Amend section 13.402 by adding ‘‘$13.5 million’’ in its place.
12.102 [Amended] removing from paragraph (a) ‘‘$30,000’’ PART 16—TYPES OF CONTRACTS
and adding ‘‘$35,000’’ in its place.
■ 27. Amend section 12.102 by 16.503 [Amended]
removing from the introductory text of 13.500 [Amended]
paragraph (f)(2) ‘‘$17.5 million’’ and ■ 43. Amend section 16.503 by
■ 36. Amend section 13.500 by— removing from paragraph (b)(2) ‘‘$103
adding ‘‘$19 million’’ in its place.
■ a. Removing from paragraph (a) ‘‘$6.5 million’’ and adding ‘‘$112 million’’ in
12.203 [Amended] million’’ and ‘‘$12 million’’ and adding its place; and removing from paragraph
■ 28. Amend section 12.203 by ‘‘$7 million’’ and ‘‘$13 million’’ in their (d)(1) ‘‘$12.5 million’’ and adding
removing ‘‘$6.5 million’’ and ‘‘$12 places, respectively; and ‘‘$13.5 million’’ in its place.
million’’ and adding ‘‘$7 million’’ and ■ b. Removing from the introductory
text of paragraph (c) ‘‘$12 million’’ and 16.504 [Amended]
‘‘$13 million’’ in their places,
respectively. adding ‘‘$13 million’’ in its place. ■ 44. Amend section 16.504 by—
13.501 [Amended]
■ a. Removing from the introductory
PART 13—SIMPLIFIED ACQUISITION text of paragraph (c)(1)(ii)(D)(1) ‘‘$103
PROCEDURES ■ 37. Amend section 13.501 by— million’’ and adding ‘‘$112 million’’ in
■ a. Removing from paragraph (a)(2)(i) its place;
13.000 [Amended]
‘‘$650,000’’ and adding ‘‘$700,000’’ in ■ b. Removing from the introductory
■ 29. Amend section 13.000 by its place; text of paragraph (c)(1)(ii)(D)(3) ‘‘$103
removing ‘‘$6.5 million’’ and ‘‘$12 ■ b. Removing from paragraph (a)(2)(ii) million’’ and adding ‘‘$112 million’’ in
million’’ and adding ‘‘$7 million’’ and ’’$650,000’’ and ‘‘$12.5 million’’ and its place; and removing from the end of
‘‘$13 million’’ in their places, adding ‘‘$700,000’’ and ‘‘$13.5 million’’ the paragraph the colon and adding an
respectively. in their places, respectively; em dash in its place;
13.003 [Amended] ■ c. Removing from paragraph (a)(2)(iii) ■ c. Removing from the end of
’’$12.5 million’’, ‘‘$62.5 million’’, and paragraph (c)(1)(ii)(D)(3)(i) the period
■ 30. Amend section 13.003 by— ‘‘$85.5 million’’ and adding ‘‘$13.5
■ a. Removing from paragraph (b)(1) and adding ‘‘; and’’ in its place; and
million’’, ‘‘$68 million’’, and ‘‘$93 ■ d. Removing from the introductory
‘‘$3,000’’, ‘‘$15,000’’, and ‘‘$300,000’’
million’’ in their places, respectively; text of paragraph (c)(2)(i) ‘‘$12.5
and adding ‘‘$3,500’’, ‘‘$20,000’’ and
and million’’ and adding ‘‘$13.5 million’’ in
‘‘$350,000’’ in their places, respectively;
■ b. Removing from paragraph (c)(1)(ii) ■ d. Removing from paragraph (a)(2)(iv) its place.
‘‘$6.5 million’’ and ‘‘$12 million’’ and ’’$62.5 million’’ and ‘‘$85.5 million’’
and adding ‘‘$68 million’’ and ‘‘$93 16.505 [Amended]
adding ‘‘$7 million’’ and ‘‘$13 million’’
in their places, respectively; and million’’ in their places, respectively. ■ 45. Amend section 16.505 by—
■ c. Removing from paragraph (g)(2) ■ a. Removing from the introductory
‘‘$6.5 million’’ and ‘‘$12 million’’ and PART 15—CONTRACTING BY text of paragraph (a)(4)(iii)(A) ‘‘$25,000’’
adding ‘‘$7 million’’ and ‘‘$13 million’’ NEGOTIATION and adding ‘‘$30,000’’ in its place;
in their places, respectively. ■ b. Removing from paragraph (b)(1)(i)
15.403–1 [Amended]
‘‘$3,000’’ and adding ‘‘$3,500’’ in its
13.005 [Amended] ■ 38. Amend section 15.403–1 by place;
■ 31. Amend section 13.005 by removing from paragraph (c)(3)(iv) ■ c. Removing from the paragraph
removing from paragraph (a)(2) ‘‘$17.5 million’’ and adding ‘‘$19 (b)(1)(iv) ‘‘$5 million’’ and ‘‘$5 million’’
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‘‘$30,000’’ and adding ‘‘$35,000’’ in its million’’ in its place. and adding ‘‘$5.5 million’’ and ‘‘$5.5
place. million’’ in their places, respectively;
15.403–4 [Amended]
■ d. Removing from paragraph (b)(2)(i)
13.106–1 [Amended] ■ 39. Amend section 15.403–4 by ‘‘$3,000’’ and adding ‘‘$3,500’’ in its
■ 32. Amend section 13.106–1 by removing from the introductory text of place;
removing from paragraphs (c)(2) and (d) paragraphs (a)(1) and (a)(1)(iii) ■ e. Removing from the heading of
‘‘$30,000’’ and adding ‘‘$25,000’’ in ‘‘$700,000’’ and adding ‘‘$750,000’’ in paragraph (b)(2)(ii)(A) ‘‘$3,000’’ and
their places. its place. adding ‘‘$3,500’’ in its place;
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■ f. Removing from the paragraph ‘‘$3,500’’ and ‘‘$20,000’’ in their places, PART 25—FOREIGN ACQUISITION
(b)(2)(ii)(C)(1) ‘‘$650,000’’ and adding respectively; and
‘‘$700,000’’ in its place; ■ b. Removing from the end of 25.703–2 [Amended]
■ g. Removing from paragraph paragraph (b) ‘‘that:’’ and adding ‘‘that—
(b)(2)(ii)(C)(2) ‘‘$650,000’’ and ‘‘$12.5 ’’ in its place. ■ 62. Amend section 25.703–2 by
million’’ and adding ‘‘$700,000’’ and removing from paragraph (a)(2)
‘‘13.5 million’’ in their places, 19.702 [Amended] ‘‘$3,000’’ and adding ‘‘$3,500’’ in its
respectively; ■ 52. Amend section 19.702 by place.
■ h. Removing from paragraph removing from paragraphs (a)(1) and 25.703–4 [Amended]
(b)(2)(ii)(C)(3) ‘‘$12.5 million’’, ‘‘$62.5 (a)(2) ‘‘$650,000’’ and adding
million’’, and ‘‘$85.5 million’’ and ‘‘$700,000’’ in their places. ■ 63. Amend section 25.703–4 by
adding ‘‘13.5 million’’, ‘‘68 million’’, removing from paragraphs (c)(5)(ii),
and ‘‘93 million’’ in their places, 19.704 [Amended]
(c)(7)(iii), and (c)(8)(iii) ‘‘$3,000’’ and
respectively; ■ 53. Amend section 19.704 by adding ‘‘$3,500’’ in their places.
■ i. Removing from paragraph removing from paragraph (a)(9)
(b)(2)(ii)(C)(4) ‘‘$62.5 million’’ and ‘‘$650,000’’ and adding ‘‘$700,000’’ in PART 28—BONDS AND INSURANCE
‘‘$85.5 million’’ and adding ‘‘68 its place.
million’’ and ‘‘93 million’’ in their 28.102–1 [Amended]
places, respectively; and 19.708 [Amended]
■ j. Removing from the heading of ■ 54. Amend section 19.708 by ■ 64. Amend section 28.102–1 by
paragraph (b)(6) ‘‘$5 million’’ and removing from paragraph (b)(1) removing from paragraph (b)(1)
adding ‘‘$5.5 million’’ in its place; and ‘‘$650,000’’ and adding ‘‘$700,000’’ in ‘‘$30,000’’ and adding ‘‘$35,000’’ in its
removing from the introductory text ‘‘$5 its place. place.
million’’ and adding ‘‘$5.5 million’’ in
its place. 19.805–1 [Amended] 28.102–2 [Amended]
16.506 [Amended]
■ 55. Amend section 19.805–1 by ■ 65. Amend section 28.102–2 by
removing from paragraph (a)(2) ‘‘$6.5 removing from paragraph (c) ‘‘$30,000’’
■ 46. Amend section 16.506 by
million’’ and adding ‘‘$7 million’’ in its and adding ‘‘$35,000’’ in its place.
removing from paragraphs (f) and (g)
place.
‘‘$12.5 million’’ and adding ‘‘$13.5
28.102–3 [Amended]
million’’ in their places; and removing 19.808–1 [Amended]
from paragraph (h) ‘‘$5 million’’ and ■ 56. Amend section 19.808–1 by ■ 66. Amend section 28.102–3 by
adding ‘‘5.5 million’’ in its place. removing from paragraph (a) ‘‘$20 removing from paragraph (b) ‘‘$30,000’’
million’’ and adding ‘‘$22 million’’ in and adding ‘‘$35,000’’ in its place.
PART 17—SPECIAL CONTRACTING
METHODS its place.
PART 30—COST ACCOUNTING
17.108 [Amended] 19.1306 [Amended] STANDARDS ADMINISTRATION
■ 47. Amend section 17.108 by ■ 57. Amend section 19.1306 by
30.201–4 [Amended]
removing from paragraph (a) ‘‘$12.5 removing from paragraph (a)(2)(i) ‘‘$6.5
million’’ and adding ‘‘$13.5 million’’ in million’’ and adding ‘‘$7 million’’ in its ■ 67. Amend section 30.201–4 by
its place; and removing from paragraph place. removing from paragraph (b)(1)
(b) ‘‘$125 million’’ and adding ‘‘$135.5 19.1406 [Amended] ‘‘$700,000’’ and adding ‘‘$750,000’’ in
million’’ in its place. its place.
■ 58. Amend section 19.1406 by
17.500 [Amended] removing from paragraph (a)(2)(i) ‘‘$6 PART 42—CONTRACT
■ 48. Amend section 17.500 by million’’ and adding ‘‘$6.5 million’’ in ADMINISTRATION AND AUDIT
removing from paragraph (c)(2) its place; and removing from paragraph SERVICES
‘‘$500,000’’ and adding ‘‘$550,000’’ in (a)(2)(ii) ‘‘$3.5 million’’ and adding ‘‘$4
its place. million’’ in its place. 42.709 [Amended]
PART 19—SMALL BUSINESS PART 22—APPLICATION OF LABOR ■ 68. Amend section 42.709 by
PROGRAMS LAWS TO GOVERNMENT removing from paragraph (b)
‘‘$700,000’’ and adding ‘‘$750,000’’ in
19.203 [Amended] 22.1103 [Amended]
its place.
■ 49. Amend section 19.203 by ■ 59. Amend section 22.1103 by
removing from paragraph (b) ‘‘$3,000’’ removing ‘‘$650,000’’ and adding 42.709–6 [Amended]
and ‘‘$15,000’’ and adding ‘‘$3,500’’ and ‘‘$700,000’’ in its place.
■ 69. Amend section 42.709–6 by
‘‘$20,000’’ in their places, respectively. 22.1303 [Amended] removing ‘‘$700,000’’ and adding
19.502–1 [Amended] ■ 60. Amend section 22.1303 by ‘‘$750,000’’ in its place.
■ 50. Amend section 19.502–1 by removing from paragraphs (a) and (c) 42.1502 [Amended]
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removing from paragraph (b) ‘‘$3,000’’ ‘‘$100,000’’ and adding ‘‘$150,000’’ in
and ‘‘$15,000’’ and adding ‘‘$3,500’’ and their places. ■ 70. Amend section 42.1502 by
‘‘$20,000’’ in their places, respectively. removing from paragraph (e) ‘‘$650,000’’
22.1310 [Amended]
and adding ‘‘$700,000’’ in its place
19.502–2 [Amended] ■ 61. Amend section 22.1310 by (twice); and removing from paragraph (f)
■ 51. Amend section 19.502–2 by— removing from paragraph (a)(1) ‘‘$30,000’’ and adding ‘‘$35,000’’ in its
■ a. Removing from paragraph (a) ‘‘$100,000’’ and adding ‘‘$150,000’’ in place (twice).
‘‘$3,000’’ and ‘‘$15,000’’ and adding its place.
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PART 50—EXTRAORDINARY ‘‘$3,000’’ and adding ‘‘$3,500’’ in its (e)(1)(ii)(A), (e)(1)(ii)(C), (e)(1)(ii)(F), and
CONTRACTUAL ACTIONS AND THE place. (e)(1)(ii)(M).
SAFETY ACT The revision reads as follows: The revisions read as follows:
50.102–1 [Amended] 52.209–5 Certification Regarding 52.212–5 Contract Terms and Conditions
Responsibility Matters. Required to Implement Statutes or
■ 71. Amend section 50.102–1 by
removing from paragraph (b) ‘‘$65,000’’ * * * * * Executive Orders—Commercial Items.
and adding ‘‘$70,000’’ in its place. Certification Regarding Responsibility * * * * *
50.102–3 [Amended]
Matters (Oct 2015) Contract Terms and Conditions
* * * * * Required To Implement Statutes or
■ 72. Amend section 50.102–3 by
■ 77. Amend section 52.209–6 by Executive Orders—Commercial Items
removing from paragraph (b)(4) ‘‘$31.5
revising the date of the clause; and (Oct 2015)
million’’ and adding ‘‘$34 million’’ in
its place; and removing from paragraphs removing from paragraphs (b), (c), and * * * * *
(e)(1)(i) and (e)(1)(ii) ‘‘$65,000’’ and (e)(1) ‘‘$30,000’’ and adding ‘‘$35,000’’ (b) * * *
adding ‘‘$70,000’’ in their places. in their places.
The revision reads as follows: ll(2) 52.203–13, Contractor Code of
PART 52—SOLICITATION PROVISIONS Business Ethics and Conduct (Oct 2015) (41
AND CONTRACT CLAUSES 52.209–6 Protecting the Government’s U.S.C. 3509).
Interest When Subcontracting with * * * * *
■ 73. Amend section 52.203–13 by Contractors Debarred, Suspended, or ll(4) 52.204–10, Reporting Executive
revising the date of clause; and Proposed for Debarment. Compensation and First-Tier Subcontract
removing from paragraph (d)(1) * * * * * Awards (Oct 2015) (Pub. L. 109–282) (31
‘‘$5,000,000’’ and adding ‘‘$5.5 million’’ U.S.C. 6101 note).
Protecting the Government’s Interest
in its place. When Subcontracting With Contractors * * * * *
The revision reads as follows: ll(8) 52.209–6, Protecting the
Debarred, Suspended, or Proposed for
Government’s Interest When Subcontracting
52.203–13 Contractor Code of Business Debarment (Oct 2015) with Contractors Debarred, Suspended, or
Ethics and Conduct * * * * * Proposed for Debarment. (Oct 2015) (31
* * * * * ■ 78. Amend section 52.212–1 by U.S.C. 6101 note).
Contractor Code of Business Ethics and revising the date of the provision; and * * * * *
Conduct (Oct 2015) removing from paragraph (j) ‘‘$3,000’’ ll(17)(i) 52.219–9, Small Business
and adding ‘‘$3,500’’ in its place (twice). Subcontracting Plan (Oct 2015) (15 U.S.C.
* * * * * 637(d)(4)).
The revision reads as follows:
■ 74. Amend section 52.203–14 by * * * * *
revising the date of the clause; and 52.212–1 Instructions to Offerors— ll(iv) Alternate III (Oct 2015) of 52.219–
removing from the introductory text of Commercial Items. 9.
paragraph (d) ‘‘$5,000,000’’ and adding * * * * * * * * * *
‘‘$5.5 million’’ in its place. ll(29) 52.222–35, Equal Opportunity for
The revision reads as follows: Instructions to Offerors—Commercial
Veterans (Oct 2015) (38 U.S.C. 4212).
Items (Oct 2015)
52.203–14 Display of Hotline Poster(s). * * * * *
* * * * * ll(31) 52.222–37, Employment Reports
* * * * * ■ 79. Amend section 52.212–3 by on Veterans (Oct 2015) (38 U.S.C. 4212).
Display of Hotline Poster(s) (Oct 2015) revising the date of the provision; and * * * * *
* * * * *
removing from paragraphs (h)(4) and ll(34) 52.222–54, Employment
(o)(2)(iii) ‘‘$3,000’’ and adding ‘‘$3,500’’ Eligibility Verification (Oct 2015). (E. O.
■ 75. Amend section 52.204–10 by— in their places. 12989). (Not applicable to the acquisition of
■ a. Revising the date of the clause; commercially available off-the-shelf items or
■ b. Removing from paragraphs (d)(2) The revision reads as follows:
certain other types of commercial items as
and (d)(3) ‘‘$25,000’’ and adding 52.212–3 Offeror Representations and prescribed in 22.1803.)
‘‘$30,000’’ in their places; and Certifications—Commercial Items. * * * * *
■ c. Revising paragraph (e). * * * * * (e)(1) * * *
The revisions read as follows: (i) 52.203–13, Contractor Code of Business
Offeror Representations and Ethics and Conduct (Oct 2015) (41 U.S.C.
52.204–10 Reporting Executive Certifications—Commercial Items (Oct
Compensation and First-Tier Subcontract 3509).
2015)
Awards. * * * * *
* * * * * * * * * * (vi) 52.222–35, Equal Opportunity for
■ 80. Amend section 52.212–5 by— Veterans (Oct 2015) (38 U.S.C. 4212).
Reporting Executive Compensation and ■ a. Revising the date of the clause; * * * * *
First-Tier Subcontract Awards (Oct ■ b. Revising paragraphs (b)(2), (b)(4), (viii) 52.222–37, Employment Reports on
2015) (b)(8), (b)(17)(i), (b)(17)(iv), (b)(29), Veterans (Oct 2015) (38 U.S.C. 4212).
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(e) The Contractor shall not split or break (b)(31), (b)(34), and (e)(1)(i); * * * * *
down first-tier subcontract awards to a value ■ c. Removing from paragraph (e)(1)(ii) (xiv) 52.222–54, Employment Eligibility
less than $30,000 to avoid the reporting ‘‘$650,000’’ and adding ‘‘$700,000’’ in Verification (Oct 2015) (E. O. 12989).
requirements in paragraph (d) of this clause. its place; * * * * *
* * * * * ■ d. Revising paragraphs (e)(1)(vi), Alternate II (Oct 2015). * * *
■ 76. Amend section 52.209–5 by (e)(1)(viii), and (e)(1)(xiv); and * * * * *
revising the date of the provision; and ■ e. Amending Alternate II by revising (e)(1) * * *
removing from paragraph (a)(1)(i)(D) the date of Alternate II and paragraphs (ii) * * *
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![Federal Register / Vol. 80, No. 127 / Thursday, July 2, 2015 / Rules and Regulations 38301
52.230–5 Cost Accounting Standards— Subcontracts for Commercial Items (Oct removing from paragraph (h) ‘‘$65,000’’
Educational Institution. 2015) and adding ‘‘$70,000’’ in its place.
* * * * * * * * * * The revision reads as follows:
(c)(1) * * *
Cost Accounting Standards— 52.248–3 Value Engineering-Construction.
(i) 52.203–13, Contractor Code of Business
Educational Institution (Oct 2015) Ethics and Conduct (Oct 2015) (41 U.S.C. * * * * *
* * * * * 3509), if the subcontract exceeds $5.5 million Value Engineering-Construction (Oct
and has a performance period of more than
■ 92. Amend section 52.244–6 by— 120 days. In altering this clause to identify
2015)
the appropriate parties, all disclosures of * * * * *
■ a. Revising the date of the clause; violation of the civil False Claims Act or of
■ b. Revising paragraph (c)(1)(i); Federal criminal law shall be directed to the PART 53—FORMS
agency Office of the Inspector General, with
■ c. Removing from paragraph (c)(1)(iii)
a copy to the Contracting Officer. 53.219 [Amended]
‘‘$650,000’’ and adding ‘‘$700,000’’ in
its place; and * * * * * ■ 94. Amend section 53.219 by
(vi) 52.222–35, Equal Opportunity for removing ‘‘(Rev. 8/2014)’’ and adding
■ d. Revising paragraphs (c)(1)(vi) and Veterans (Oct 2015)(38 U.S.C. 4212(a)); ‘‘(Rev. 10/2015)’’ in its place.
(c)(1)(viii). * * * * * ■ 95. Revise section 53.301–294 to read
The revisions read as follows: (viii) 52.222–37, Employment Reports on
Veterans (Oct 2015)(38 U.S.C. 4212). as follows:
52.244–6 Subcontracts for Commercial * * * * * 53.301–294 Subcontracting Report for
Items. ■ 93. Amend section 52.248–3 by Individual Contracts.
* * * * * revising the date of the clause; and BILLING CODE 6820–EP–P
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![38306 Federal Register / Vol. 80, No. 127 / Thursday, July 2, 2015 / Rules and Regulations
[FR Doc. 2015–16206 Filed 7–1–15; 8:45 am] contracting officer if the contractor and benefits of available regulatory
BILLING CODE 6820–EP–C becomes an inverted domestic alternatives and, if regulation is
corporation, or a subsidiary of an necessary, to select regulatory
inverted domestic corporation, during approaches that maximize net benefits
DEPARTMENT OF DEFENSE performance of the contract. (including potential economic,
One respondent submitted a comment environmental, public health and safety
GENERAL SERVICES in response to the proposed rule. effects, distributive impacts, and
ADMINISTRATION equity). E.O. 13563 emphasizes the
II. Discussion and Analysis
importance of quantifying both costs
NATIONAL AERONAUTICS AND The Civilian Agency Acquisition and benefits, of reducing costs, of
SPACE ADMINISTRATION Council and the Defense Acquisition harmonizing rules, and of promoting
Regulations Council (the Councils) flexibility. This is not a significant
48 CFR Parts 1 and 52 reviewed the comments in the regulatory action and, therefore, was not
[FAC 2005–83; FAR Case 2015–006; Item
development of the final rule. A subject to review under section 6(b) of
II; Docket No. 2015–0006, Sequence No. 1] discussion of the comments is provided E.O. 12866, Regulatory Planning and
as follows: Review, dated September 30, 1993. This
RIN 9000–AM85 rule is not a major rule under 5 U.S.C.
A. Summary of Significant Changes
804.
Federal Acquisition Regulation; There is no change from the proposed
Prohibition on Contracting With rule in response to the public comment IV. Regulatory Flexibility Act
Inverted Domestic Corporations— received. DoD, GSA, and NASA certify that this
Representation and Notification rule will not have a significant
B. Analysis of Public Comments
AGENCIES: Department of Defense (DoD), economic impact on a substantial
Comment: The respondent stated that number of small entities within the
General Services Administration (GSA),
a particular contract is in violation of meaning of the Regulatory Flexibility
and National Aeronautics and Space
Federal law, because the contractor Act, 5 U.S.C. 601, et seq., because this
Administration (NASA).
merged with a corporation outside the rule will only impact an offeror that is
ACTION: Final rule. United States. an inverted domestic corporation or a
SUMMARY: DoD, GSA, and NASA are Response: The Councils are not subsidiary of an inverted domestic
issuing a final rule amending the enforcement agencies, and are not in a corporation and wants to do business
Federal Acquisition Regulation (FAR) to position to assess whether the merger of with the Government. It is expected that
require additional actions by contractors two companies resulted in an entity that the number of small entities impacted
to assist contracting officers in ensuring meets all the criteria in the applicable by this rule will be minimal. Small
compliance with the Governmentwide definition of ‘‘inverted domestic business concerns are unlikely to have
statutory prohibition on the use of corporation.’’ This comment does not been incorporated in the United States
appropriated (or otherwise made address the substance of the proposed (or, if a partnership, established in the
available) funds for contracts with any rule, which proposed to require United States) and then subsequently
foreign incorporated entity that is an additional actions by contractors to incorporated in a foreign country; the
inverted domestic corporation or to any assist contracting officers in ensuring major participants in these transactions
subsidiary of such entity. compliance with the Governmentwide are reportedly large multinational
statutory prohibition on the use of corporations. For the definition of
DATES: Effective: November 1, 2015.
appropriated (or otherwise made ‘‘small business’’, the Regulatory
FOR FURTHER INFORMATION CONTACT: Mr. available) funds for contracts with any Flexibility Act refers to the Small
Michael O. Jackson, Procurement foreign incorporated entity that is an Business Act, which in turn allows the
Analyst, at 202–208–4949, for inverted domestic corporation (under 6 U.S. Small Business Administration
clarification of content. For information U.S.C. 395) or to any subsidiary of such (SBA) Administrator to specify detailed
pertaining to status or publication entity. Contractors with the modified definitions or standards (5 U.S.C. 601(3)
schedules, contact the Regulatory clause in their contracts will be required and 15 U.S.C. 632(a)). The SBA
Secretariat at 202–501–4755. Please cite to make a positive representation with regulations at 13 CFR 121.105 discuss
FAC 2005–83, FAR Case 2015–006. the offer as to their status as an inverted who is a small business: ‘‘(a)(1) Except
SUPPLEMENTARY INFORMATION: domestic corporation, and notify the for small agricultural cooperatives, a
contracting officer if they become an business concern eligible for assistance
I. Background
inverted domestic corporation during from SBA as a small business is a
DoD, GSA, and NASA published a contract performance, as defined in the business entity organized for profit,
proposed rule in the Federal Register at statute. The contracting activity will with a place of business located in the
79 FR 74558 on December 15, 2014, to take appropriate action if the contractor United States, and which operates
revise the provisions of the FAR that notifies the Government in accordance primarily within the United States or
address the continuing with the clause that it has become an which makes a significant contribution
Governmentwide statutory prohibition inverted domestic corporation, or if to the U.S. economy through payment of
(in effect since fiscal year 2008) on the investigation by the appropriate taxes or use of American products,
use of appropriated (or otherwise made Government agency determines that the materials or labor’’.
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available) funds for contracts with any contractor became an inverted domestic
foreign incorporated entity that is an V. Paperwork Reduction Act
corporation during contract
inverted domestic corporation (under performance and failed to notify the The Paperwork Reduction Act (44
section 835 of the Homeland Security Government of its change in status. U.S.C. Chapter 35) applies. The rule
Act of 2002, codified at 6 U.S.C. 395) or contains information collection
any subsidiary of such entity. The rule III. Executive Orders 12866 and 13563 requirements. OMB has cleared this
modifies the existing representation and Executive Orders (E.O.s) 12866 and information collection requirement
adds a requirement to notify the 13563 direct agencies to assess all costs under OMB Control Number 9000–0190,
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Document Created: 2015-12-15 13:16:17
Document Modified: 2015-12-15 13:16:17
| 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 | Final rule. | |
| Dates | Effective: October 1, 2015. | |
| Contact | Mr. Michael O. Jackson, Procurement Analyst, at 202-208-4949, for clarification of content. For information pertaining to status or publication schedules, contact the Regulatory Secretariat at 202-501-4755. Please cite FAC 2005-83, FAR Case 2014- 022. | |
| FR Citation | 80 FR 38293 | |
| RIN Number | 9000-AM80 | |
| CFR Citation | 48
CFR
1 48 CFR 2 48 CFR 1 48 CFR 2 48 CFR 3 48 CFR 4 48 CFR 6 48 CFR 7 48 CFR 8 48 CFR 9 48 CFR 10 48 CFR 12 48 CFR 13 48 CFR 15 48 CFR 16 48 CFR 17 48 CFR 19 48 CFR 22 48 CFR 25 48 CFR 28 48 CFR 30 48 CFR 42 48 CFR 50 48 CFR 52 48 CFR 53 | |
| CFR Associated | Government procurement; Government procurement; Government procurement; Government procurement; Government procurement; Government procurement; Government procurement; Government procurement; Government procurement; Government procurement; Government procurement; Government procurement; Government procurement; Government procurement; Government procurement; Government procurement; Government procurement; Government procurement; Government procurement; ; Government procurement; Government procurement and Government procurement |
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