80 FR 38307 - Federal Acquisition Regulation: Update to Product and Service Codes

DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

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

Page Range		38307-38308
FR Document		2015-16209

DoD, GSA, and NASA are issuing a final rule amending the Federal Acquisition Regulation (FAR) to correct the terminology relating to preparation and transmittal of synopses and update the descriptions of Federal product and service codes related to exemptions from service contract labor standards, to conform to the current Federal Procurement Data System Product and Service Codes Manual.

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

[Federal Register Volume 80, Number 127 (Thursday, July 2, 2015)]
[Rules and Regulations]
[Pages 38307-38308]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-16209]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 5 and 22

[FAC 2005-83; FAR Case 2015-008; Item III; Docket No. 2015-0008, 
Sequence No. 1]
RIN 9000-AN08


Federal Acquisition Regulation: Update to Product and Service 
Codes

AGENCIES:  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 a final rule amending the 
Federal Acquisition Regulation (FAR) to correct the terminology 
relating to preparation and transmittal of synopses and update the 
descriptions of Federal product and service codes related to exemptions 
from service contract labor standards, to conform to the current 
Federal Procurement Data System Product and Service Codes Manual.

DATES: Effective: August 3, 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 Division at 202-501-4755. Please cite FAC 2005-83, FAR Case 
2015-008.

SUPPLEMENTARY INFORMATION: 

I. Background

    DoD, GSA, and NASA are revising the FAR to amend 5.207 and 22.1003-
4 to correct the terminology and 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 
no change to the groups covered, and the new descriptions better 
reflect product coverage.

II. Publication of This Final Rule for Public Comment Is Not Required 
by Statute

    ``Publication of proposed regulations'', 41 U.S.C. 1707, is the 
statute which applies to the publication of the Federal Acquisition 
Regulation. Paragraph (a)(1) of the statute requires that a procurement 
policy, regulation, procedure, or form (including an amendment or 
modification thereof) must be published for public comment if it 
relates to the expenditure of appropriated funds, and has either a 
significant effect beyond the internal operating procedures of the 
agency issuing the policy, regulation, procedure, or form, or has a 
significant cost or administrative impact on contractors or offerors. 
This final rule is not required to be published for public comment, 
because it does not change the Federal Supply Groups covered. It only 
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.

[[Page 38308]]

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

    The Regulatory Flexibility Act does not apply to this rule because 
this final rule does not constitute a significant FAR revision within 
the meaning of FAR 1.501-1 and 41 U.S.C. 1707 does not require 
publication for public comment.

V. Paperwork Reduction Act

    The rule does not contain any information collection requirements 
that require the approval of the Office of Management and Budget under 
the Paperwork Reduction Act (44 U.S.C. chapter 35).

List of Subjects in 48 CFR Parts 5 and 22

    Government procurement.

    Dated: June 18, 2015.
William 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 5 and 22 as set 
forth below:

0
1. The authority citation for 48 CFR parts 5 and 22 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 5--PUBLICIZING CONTRACT ACTIONS


5.207  [Amended]

0
2. Amend section 5.207 by--
0
a. Removing from paragraph (a)(5) ``Classification Code'' and adding 
``Product or Service Code'' in its place; and
0
b. Removing from paragraph (c)(13) ``supply'' and adding ``product'' in 
its place.

PART 22--APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS

0
3. Amend section 22.1003-4 by revising paragraph (c)(1)(ii) to read as 
follows:


22.1003-4  Administrative limitations, variations, tolerances, and 
exemptions.

* * * * *
    (c) * * *
    (1) * * *
    (ii) Scientific equipment and medical apparatus or equipment if the 
application of micro-electronic circuitry or other technology of at 
least similar sophistication is an essential element (for example, 
Product or Service Code (PSC) 6515, ``Medical and Surgical Instruments, 
Equipment, and Supplies;'' PSC 6525, ``Imaging Equipment and Supplies: 
Medical, Dental, Veterinary;'' PSC 6630, ``Chemical Analysis 
Instruments;'' and PSC 6655, ``Geophysical Instruments,'' are largely 
composed of the types of equipment exempted in this paragraph).
* * * * *
[FR Doc. 2015-16209 Filed 7-1-15; 8:45 am]
 BILLING CODE 6820-EP-P

Federal Register / Vol. 80, No. 127 / Thursday, July 2, 2015 / Rules and Regulations 38307

titled: Prohibition on Contracting with corporation during contract performance, the ACTION: Final rule.
Inverted Domestic Corporations— Contractor shall give written notice to the
Representation and Notification. Contracting Officer within five business days SUMMARY: DoD, GSA, and NASA are
from the date of the inversion event. issuing a final rule amending the
List of Subjects in 48 CFR Parts 1 and Federal Acquisition Regulation (FAR) to
52 (End of clause)
correct the terminology relating to
Government procurement. ■ 5. Amend section 52.212–3 by preparation and transmittal of synopses
revising the date of the provision and and update the descriptions of Federal
Dated: June 18, 2015.
paragraph (n)(2) to read as follows: product and service codes related to
William F. Clark,
52.212–3 Offeror Representations and exemptions from service contract labor
Director, Office of Government-wide
Acquisition Policy, Office of Acquisition Certifications—Commercial Items. standards, to conform to the current
Policy, Office of Government-wide Policy. * * * * * Federal Procurement Data System
Product and Service Codes Manual.
Therefore, DoD, GSA, and NASA Offeror Representations and
amend 48 CFR parts 1 and 52 as set DATES: Effective: August 3, 2015.
Certifications—Commercial Items (Nov
forth below: 2015) FOR FURTHER INFORMATION CONTACT: Mr.
■ 1. The authority citation for 48 CFR Michael O. Jackson, Procurement
* * * * *
parts 1 and 52 continues to read as (n) * * *
Analyst, at 202–208–4949 for
follows: (2) Representation. The Offeror represents clarification of content. For information
Authority: 40 U.S.C. 121(c); 10 U.S.C. that— pertaining to status or publication
chapter 137; and 51 U.S.C. 20113. (i) It b is, b is not an inverted domestic schedules, contact the Regulatory
corporation; and Secretariat Division at 202–501–4755.
PART 1—FEDERAL ACQUISITION (ii) It b is, b is not a subsidiary of an Please cite FAC 2005–83, FAR Case
REGULATIONS SYSTEM inverted domestic corporation. 2015–008.
* * * * * SUPPLEMENTARY INFORMATION:
1.106 [Amended]
■ 6. Amend section 52.212–5 by
■ 2. Amend section 1.106 in the table revising the date of the clause and I. Background
following the introductory text, by paragraph (a)(1) to read as follows:
adding in numerical sequence, ‘‘52.209– DoD, GSA, and NASA are revising the
10’’ and its corresponding OMB Control 52.212–5 Contract Terms and Conditions FAR to amend 5.207 and 22.1003–4 to
Number ‘‘9000–0190’’. Required to Implement Statutes or correct the terminology and update the
Executive Orders—Commercial Items. descriptions of the Federal product and
PART 52—SOLICITATION PROVISIONS * * * * * service codes to conform to the Federal
AND CONTRACT CLAUSES Procurement Data System Product and
Contract Terms and Conditions Service Codes Manual, August 2011
■ 3. Amend section 52.209–2 by Required to Implement Statutes or Edition. There is no change to the
revising the date of provision and Executive Orders—Commercial Items groups covered, and the new
paragraph (c) to read as follows: (Nov 2015) descriptions better reflect product
* * * * * coverage.
52.209–2 Prohibition on Contracting With
Inverted Domestic Corporations— (a) * * * II. Publication of This Final Rule for
Representation. (1) 52.209–10, Prohibition on Contracting
Public Comment Is Not Required by
with Inverted Domestic Corporations (Nov
* * * * * 2015). Statute
Prohibition on Contracting with * * * * * ‘‘Publication of proposed
Inverted Domestic Corporations— [FR Doc. 2015–16208 Filed 7–1–15; 8:45 am] regulations’’, 41 U.S.C. 1707, is the
Representation (Nov 2015) BILLING CODE 6820–EP–P statute which applies to the publication
* * * * * of the Federal Acquisition Regulation.
(c) Representation. The Offeror represents Paragraph (a)(1) of the statute requires
that— DEPARTMENT OF DEFENSE that a procurement policy, regulation,
(1) It b is, b is not an inverted domestic procedure, or form (including an
corporation; and GENERAL SERVICES amendment or modification thereof)
(2) It b is, b is not a subsidiary of an ADMINISTRATION must be published for public comment
inverted domestic corporation. if it relates to the expenditure of
NATIONAL AERONAUTICS AND appropriated funds, and has either a
(End of provision) SPACE ADMINISTRATION significant effect beyond the internal
■ 4. Amend section 52.209–10 by operating procedures of the agency
revising the date of the clause; and 48 CFR Parts 5 and 22 issuing the policy, regulation,
adding paragraph (d) to read as follows: procedure, or form, or has a significant
[FAC 2005–83; FAR Case 2015–008; Item
52.209–10 Prohibition on Contracting with III; Docket No. 2015–0008, Sequence No. cost or administrative impact on
Inverted Domestic Corporations. 1] contractors or offerors. This final rule is
* * * * * not required to be published for public
asabaliauskas on DSK5VPTVN1PROD with RULES

RIN 9000–AN08 comment, because it does not change
Prohibition on Contracting With the Federal Supply Groups covered. It
Federal Acquisition Regulation:
Inverted Domestic Corporations (Nov only updates the descriptions of the
Update to Product and Service Codes
2015) listed product service groups to reflect
* * * * * AGENCIES: Department of Defense (DoD), the current Product and Service Codes
(d) In the event the Contractor becomes General Services Administration (GSA), Manual. It does not impact which
either an inverted domestic corporation, or a and National Aeronautics and Space products are subject to the service
subsidiary of an inverted domestic Administration (NASA). contract labor standards.

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38308 Federal Register / Vol. 80, No. 127 / Thursday, July 2, 2015 / Rules and Regulations

III. Executive Orders 12866 and 13563 PART 22—APPLICATION OF LABOR FOR FURTHER INFORMATION CONTACT: Mr.
Executive Orders (E.O.s) 12866 and LAWS TO GOVERNMENT Michael O. Jackson, Procurement
13563 direct agencies to assess all costs ACQUISITIONS Analyst, at 202–208–4949 for
and benefits of available regulatory clarification of content. For information
■ 3. Amend section 22.1003–4 by pertaining to status or publication
alternatives and, if regulation is
revising paragraph (c)(1)(ii) to read as schedules, contact the Regulatory
necessary, to select regulatory
follows: Secretariat at 202–501–4755. Please cite
approaches that maximize net benefits
(including potential economic, 22.1003–4 Administrative limitations, FAC 2005–83, FAR Case 2014–020.
environmental, public health and safety variations, tolerances, and exemptions. SUPPLEMENTARY INFORMATION:
effects, distributive impacts, and * * * * *
equity). E.O. 13563 emphasizes the (c) * * * I. Background
importance of quantifying both costs (1) * * *
and benefits, of reducing costs, of (ii) Scientific equipment and medical DoD, GSA, and NASA published a
harmonizing rules, and of promoting apparatus or equipment if the proposed rule in the Federal Register at
flexibility. This is not a significant application of micro-electronic circuitry 79 FR 78378 on December 30, 2014. The
regulatory action and, therefore, was not or other technology of at least similar rule was in response to a Government
subject to review under Section 6(b) of sophistication is an essential element Accountability Office (GAO) report,
E.O. 12866, Regulatory Planning and (for example, Product or Service Code GAO–14–304, Federal Contracting:
Review, dated September 30, 1993. This (PSC) 6515, ‘‘Medical and Surgical Noncompetitive Contracts Based on
rule is not a major rule under 5 U.S.C. Instruments, Equipment, and Supplies;’’ Urgency Need Additional Oversight,
804. PSC 6525, ‘‘Imaging Equipment and dated March 2014. The proposed rule
Supplies: Medical, Dental, Veterinary;’’ language at FAR 6.302–2(d) has been
IV. Regulatory Flexibility Act revised to further clarify it. One
PSC 6630, ‘‘Chemical Analysis
The Regulatory Flexibility Act does Instruments;’’ and PSC 6655, respondent submitted a comment on the
not apply to this rule because this final ‘‘Geophysical Instruments,’’ are largely proposed rule.
rule does not constitute a significant composed of the types of equipment
FAR revision within the meaning of II. Discussion and Analysis
exempted in this paragraph).
FAR 1.501–1 and 41 U.S.C. 1707 does * * * * * The Civilian Agency Acquisition
not require publication for public [FR Doc. 2015–16209 Filed 7–1–15; 8:45 am] Council and the Defense Acquisition
comment. BILLING CODE 6820–EP–P Regulations Council (the Councils)
V. Paperwork Reduction Act reviewed the public comment in the
The rule does not contain any development of the final rule. The
DEPARTMENT OF DEFENSE comment resulted in no changes to the
information collection requirements that
require the approval of the Office of final rule. A discussion of the comment
GENERAL SERVICES
Management and Budget under the is provided in the following paragraph.
ADMINISTRATION
Paperwork Reduction Act (44 U.S.C. Comment: The respondent stated that
chapter 35). NATIONAL AERONAUTICS AND there should be no justification for
List of Subjects in 48 CFR Parts 5 and SPACE ADMINISTRATION extending any contract that is
22 noncompetitive for more than one year.
48 CFR Part 6 Response: The extension of non-
Government procurement.
[FAC 2005–83; FAR Case 2014–020; Item competitive contracts is allowable. The
Dated: June 18, 2015.
IV; Docket No. 2014–0020; Sequence purpose of this case is to ensure that
William Clark, No. 1] when the extension has been deemed to
Director, Office of Government-wide be warranted, that the proper
Acquisition Policy, Office of Acquisition RIN 9000–AM86
justification and documentation are
Policy, Office of Government-wide Policy.
Federal Acquisition Regulation; prepared and included in the contract
Therefore, DoD, GSA, and NASA Clarification on Justification for Urgent file.
amend 48 CFR parts 5 and 22 as set Noncompetitive Awards Exceeding
forth below: III. Executive Orders 12866 and 13563
One Year
■ 1. The authority citation for 48 CFR
AGENCY: Department of Defense (DoD), Executive Orders (E.O.s) 12866 and
parts 5 and 22 continues to read as 13563 direct agencies to assess all costs
follows: General Services Administration (GSA),
and National Aeronautics and Space and benefits of available regulatory
Authority: 40 U.S.C. 121(c); 10 U.S.C. alternatives and, if regulation is
chapter 137; and 51 U.S.C. 20113.
Administration (NASA).
ACTION: Final rule.
necessary, to select regulatory
approaches that maximize net benefits
PART 5—PUBLICIZING CONTRACT
ACTIONS SUMMARY: DoD, GSA, and NASA are (including potential economic,
issuing a final rule amending the environmental, public health and safety
5.207 [Amended] Federal Acquisition Regulation (FAR) to effects, distributive impacts, and
asabaliauskas on DSK5VPTVN1PROD with RULES

■ 2. Amend section 5.207 by— clarify that a determination of equity). E.O. 13563 emphasizes the
■ a. Removing from paragraph (a)(5) exceptional circumstances is needed importance of quantifying both costs
‘‘Classification Code’’ and adding when a noncompetitive contract and benefits, of reducing costs, of
‘‘Product or Service Code’’ in its place; awarded on the basis of unusual and harmonizing rules, and of promoting
and compelling urgency exceeds 1 year, flexibility. This is not a significant
■ b. Removing from paragraph (c)(13) either at time of award or due to post- regulatory action and, therefore, was not
‘‘supply’’ and adding ‘‘product’’ in its award modifications. subject to review under Section 6(b) of
place. DATES: Effective: August 3, 2015. E.O. 12866, Regulatory Planning and

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Document Created: 2015-12-15 13:16:19
Document Modified: 2015-12-15 13:16:19

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: August 3, 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 Division at 202-501-4755. Please cite FAC 2005-83, FAR Case 2015-008.
FR Citation		80 FR 38307
RIN Number		9000-AN08
CFR Citation		48 CFR 22 48 CFR 5

80 FR 38307 - Federal Acquisition Regulation: Update to Product and Service Codes

DEPARTMENT OF DEFENSEGENERAL SERVICES ADMINISTRATIONNATIONAL AERONAUTICS AND SPACE ADMINISTRATION

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

DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION