81_FR_45966 81 FR 45831 - Federal Acquisition Regulation; Federal Acquisition Circular 2005-89; Introduction

81 FR 45831 - Federal Acquisition Regulation; Federal Acquisition Circular 2005-89; Introduction

DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

Federal Register Volume 81, Issue 135 (July 14, 2016)

Page Range45831-45833
FR Document2016-16244

This document summarizes the Federal Acquisition Regulation (FAR) rules agreed to by the Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council (Councils) in this Federal Acquisition Circular (FAC) 2005-89. A companion document, the Small Entity Compliance Guide (SECG), follows this FAC. The FAC, including the SECG, is available via the Internet at http://www.regulations.gov.

Federal Register, Volume 81 Issue 135 (Thursday, July 14, 2016) 
[Federal Register Volume 81, Number 135 (Thursday, July 14, 2016)]
[Rules and Regulations]
[Pages 45831-45833]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-16244]



[[Page 45831]]

Vol. 81

Thursday,

No. 135

July 14, 2016

Part IV





Department of Defense





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General Services Administration





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National Aeronautics and Space Administration





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48 CFR Chapter 1





Federal Acquisition Regulation; Federal Acquisition Circular 2005-89; 
Introduction, Small Business Improvements, OMB Circular Citation 
Update, FPI Blanket Waiver, Revision to Standard Forms for Bonds, 
Technical Amendments, and Federal Acquisition Circular 2005-89; Small 
Entity Compliance Guide; Final Rules

Federal Register / Vol. 81 , No. 135 / Thursday, July 14, 2016 / 
Rules and Regulations

[[Page 45832]]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Chapter 1

[Docket No. FAR 2016-0051, Sequence No. 3]


Federal Acquisition Regulation; Federal Acquisition Circular 
2005-89; Introduction

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

ACTION: Summary presentation of final rules.

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SUMMARY: This document summarizes the Federal Acquisition Regulation 
(FAR) rules agreed to by the Civilian Agency Acquisition Council and 
the Defense Acquisition Regulations Council (Councils) in this Federal 
Acquisition Circular (FAC) 2005-89. A companion document, the Small 
Entity Compliance Guide (SECG), follows this FAC. The FAC, including 
the SECG, is available via the Internet at http://www.regulations.gov.

DATES: For effective dates see the separate documents, which follow.

FOR FURTHER INFORMATION CONTACT: The analyst whose name appears in the 
table below in relation to the FAR case. Please cite FAC 2005-89 and 
the specific FAR case number. For information pertaining to status or 
publication schedules, contact the Regulatory Secretariat Division at 
202-501-4755.

                                           Rules Listed in FAC 2005-89
----------------------------------------------------------------------------------------------------------------
              Item                            Subject                 FAR Case                Analyst
----------------------------------------------------------------------------------------------------------------
I...............................  Small Business Subcontracting          2014-003  Uddowla.
                                   Improvements.
II..............................   OMB Circular Citation Update..        2014-023  Hopkins.
III.............................   FPI Blanket Waiver Threshold..        2016-008  Uddowla.
IV..............................   Revision to Standard Forms for        2015-025  Hopkins.
                                   Bonds.
V...............................  Technical Amendments...........
----------------------------------------------------------------------------------------------------------------


SUPPLEMENTARY INFORMATION: Summaries for each FAR rule follow. For the 
actual revisions and/or amendments made by these rules, refer to the 
specific item numbers and subjects set forth in the documents following 
these item summaries. FAC 2005-89 amends the FAR as follows:

Item I--Small Business Subcontracting Improvements (FAR Case 2014-003)

    This final rule amends the FAR to implement SBA's final rule 
published at 78 FR 42391 on July 16, 2013. The rule will implement the 
statutory requirements set forth in section 1321 and 1322 of the Small 
Business Jobs Act of 2010, (Pub. L. 111-240), as well as other 
requirements aimed at improving subcontracting regulations to increase 
small business opportunities. This rule accomplishes the following:
    (1) Requires prime contractors to make good faith efforts to 
utilize their proposed small business subcontractors during performance 
of a contract to the same degree the prime contractor relied on the 
small business in preparing and submitting its bid or proposal. To the 
extent a prime contractor is unable to make a good faith effort to 
utilize its small business subcontractors as described above, the prime 
contractor is required to explain, in writing, within 30 days of 
contract completion, to the contracting officer the reasons why it was 
unable to do so.
    (2) Authorizes contracting officers to calculate subcontracting 
goals in terms of total contract dollars in addition to the required 
goals in terms of total subcontracted dollars.
    (3) Provides contracting officers with the discretion to require a 
subcontracting plan in instances where a small business rerepresents 
its size as an other than small business.
    (4) Requires subcontracting plans even for modifications under the 
subcontracting plan threshold if said modifications would cause the 
contract to exceed the plan threshold.
    (5) Requires prime contractors to assign (North American Industry 
Classification System (NAICS)) codes to subcontracts.
    (6) Restricts prime contractors from prohibiting a subcontractor 
from discussing payment or utilization matters with the contracting 
officer.
    (7) Requires prime contractors to resubmit a corrected 
subcontracting report within 30 days of receiving the contracting 
officer's notice of report rejection.
    (8) Requires prime contractors to provide the socioeconomic status 
of the subcontractor in the notification to unsuccessful offerors for 
subcontracts.
    (9) Requires prime contracts with subcontracting plans on task and 
delivery order contracts to report order level subcontracting 
information after November 2017.
    (10) Facilitates funding agencies receiving small business 
subcontracting credit.
    (11) On indefinite-delivery, indefinite-quantity contracts, allows 
the contracting officer to establish subcontracting goals at the order 
level (but not a new subcontracting plan).
    This rule may have a positive economic impact on any small business 
entity that wishes to participate in the Federal procurement arena as a 
subcontractor.

Item II--OMB Circular Citation Update (FAR Case 2014-023)

    This final rule amends the FAR to update outdated OMB Circular 
citation references. On December 26, 2013, the Office of Management and 
Budget (OMB) published new guidance at 2 CFR part 200 entitled Uniform 
Administrative Requirements, Cost Principles, and Audit Requirements 
for Federal Awards, adopted by Federal agencies as a set of binding 
regulations that became effective December 26, 2014. This new guidance 
supersedes and streamlines requirements from OMB Circulars A-21, A-87, 
A-89, A-102, A-110, A-122, and A-133, as well as the guidance in 
Circular A-50 on Audit Followup. As such, this final rule replaces OMB 
citations in the FAR to the circulars cited above that have been 
superseded. The replacement of these outdated OMB citations in the FAR 
will have no impact on small businesses since the intent of the OMB 
guidance remains unchanged.

[[Page 45833]]

Item III--FPI Blanket Waiver Threshold (FAR Case 2016-008)

    This final rule amends the FAR to increase the blanket waiver 
threshold for small dollar-value purchases from Federal Prison 
Industries (FPI) by Federal agencies from $3,000 to $3,500. No waiver 
is required to buy from an alternative source below $3,500. Customers 
may, however, still purchase from FPI at, or below, this threshold, if 
they so choose.

Item IV--Revision to Standard Forms for Bonds (FAR Case 2015-025)

    This rule amends the FAR to revise five Standard Forms prescribed 
for contracts involving bonds and other financial protections. The 
revisions, aimed at clarifying liability limitations and expanding the 
options for organization types, are made to Standard Forms 24, 25, 25A, 
34, and 35. These changes will minimize questions from industry to the 
contracting officer.
    This final rule does not place any new requirements on small 
entities.

Item V--Technical Amendments

    Editorial changes are made at FAR 4.1801, 4.1803, 52.204-16, 
52.204-17, 52.204-18, 52.204-20, and 52.212-3.

    Dated: June 30, 2016.
William Clark,
Director, Office of Government-wide Acquisition Policy, Office of 
Acquisition Policy, Office of Government-wide Policy.
    Federal Acquisition Circular (FAC) 2005-89 is issued under the 
authority of the Secretary of Defense, the Administrator of General 
Services, and the Administrator for the National Aeronautics and Space 
Administration.
    Unless otherwise specified, all Federal Acquisition Regulation 
(FAR) and other directive material contained in FAC 2005-89 is 
effective July 14, 2016 except for item I which is effective November 
1, 2016, and items II, III, and IV, which are effective August 15, 
2016.

    Dated: July 1, 2016.
Claire M. Grady,
Director, Defense Procurement and Acquisition Policy
    Dated: July 1, 2016.
Jeffrey A. Koses,
Senior Procurement Executive/Deputy CAO, Office of Acquisition Policy, 
U.S. General Services Administration.
    Dated: June 29, 2016.
William G. Roets,
Acting Assistant Administrator, Office of Procurement National 
Aeronautics and Space Administration.
[FR Doc. 2016-16244 Filed 7-13-16; 8:45 am]
 BILLING CODE 6820-EP-P

Vol. 81 Thursday, No. 135 July 14, 2016 Part IV Department of Defense General Services Administration National Aeronautics and Space Administration 48 CFR Chapter 1 Federal Acquisition Regulation; Federal Acquisition Circular 2005–89; Introduction, Small Business Improvements, OMB Circular Citation Update, FPI Blanket Waiver, Revision to Standard Forms for Bonds, Technical Amendments, and Federal Acquisition Circular 2005–89; Small Entity mstockstill on DSK3G9T082PROD with RULES2 Compliance Guide; Final Rules VerDate Sep<11>2014 18:51 Jul 13, 2016 Jkt 238001 PO 00000 Frm 00001 Fmt 4717 Sfmt 4717 E:\FR\FM\14JYR2.SGM 14JYR2

45832 Federal Register / Vol. 81, No. 135 / Thursday, July 14, 2016 / Rules and Regulations DEPARTMENT OF DEFENSE and National Aeronautics and Space DATES: For effective dates see the Administration (NASA). separate documents, which follow. GENERAL SERVICES ADMINISTRATION ACTION: Summary presentation of final FOR FURTHER INFORMATION CONTACT: The rules. analyst whose name appears in the table NATIONAL AERONAUTICS AND below in relation to the FAR case. SPACE ADMINISTRATION SUMMARY: This document summarizes Please cite FAC 2005–89 and the the Federal Acquisition Regulation specific FAR case number. For 48 CFR Chapter 1 (FAR) rules agreed to by the Civilian information pertaining to status or Agency Acquisition Council and the publication schedules, contact the [Docket No. FAR 2016–0051, Sequence Defense Acquisition Regulations Regulatory Secretariat Division at 202– No. 3] Council (Councils) in this Federal 501–4755. Acquisition Circular (FAC) 2005–89. A Federal Acquisition Regulation; Federal Acquisition Circular 2005–89; companion document, the Small Entity Introduction Compliance Guide (SECG), follows this FAC. The FAC, including the SECG, is AGENCY: Department of Defense (DoD), available via the Internet at http:// General Services Administration (GSA), www.regulations.gov. RULES LISTED IN FAC 2005–89 Item Subject FAR Case Analyst I ......................... Small Business Subcontracting Improvements ....................................................................... 2014–003 Uddowla. II ........................ OMB Circular Citation Update ................................................................................................. 2014–023 Hopkins. III ....................... FPI Blanket Waiver Threshold ................................................................................................. 2016–008 Uddowla. IV ....................... Revision to Standard Forms for Bonds ................................................................................... 2015–025 Hopkins. V ........................ Technical Amendments. SUPPLEMENTARY INFORMATION: of total contract dollars in addition to contracting officer to establish Summaries for each FAR rule follow. the required goals in terms of total subcontracting goals at the order level For the actual revisions and/or subcontracted dollars. (but not a new subcontracting plan). amendments made by these rules, refer (3) Provides contracting officers with This rule may have a positive to the specific item numbers and the discretion to require a subcontracting plan in instances where economic impact on any small business subjects set forth in the documents a small business rerepresents its size as entity that wishes to participate in the following these item summaries. FAC an other than small business. Federal procurement arena as a 2005–89 amends the FAR as follows: (4) Requires subcontracting plans subcontractor. Item I—Small Business Subcontracting even for modifications under the Improvements (FAR Case 2014–003) Item II—OMB Circular Citation Update subcontracting plan threshold if said (FAR Case 2014–023) This final rule amends the FAR to modifications would cause the contract implement SBA’s final rule published at to exceed the plan threshold. This final rule amends the FAR to 78 FR 42391 on July 16, 2013. The rule (5) Requires prime contractors to update outdated OMB Circular citation will implement the statutory assign (North American Industry references. On December 26, 2013, the requirements set forth in section 1321 Classification System (NAICS)) codes to Office of Management and Budget and 1322 of the Small Business Jobs Act subcontracts. (OMB) published new guidance at 2 of 2010, (Pub. L. 111–240), as well as (6) Restricts prime contractors from prohibiting a subcontractor from CFR part 200 entitled Uniform other requirements aimed at improving Administrative Requirements, Cost subcontracting regulations to increase discussing payment or utilization matters with the contracting officer. Principles, and Audit Requirements for small business opportunities. This rule Federal Awards, adopted by Federal (7) Requires prime contractors to accomplishes the following: agencies as a set of binding regulations resubmit a corrected subcontracting (1) Requires prime contractors to report within 30 days of receiving the that became effective December 26, make good faith efforts to utilize their contracting officer’s notice of report 2014. This new guidance supersedes proposed small business subcontractors rejection. and streamlines requirements from during performance of a contract to the (8) Requires prime contractors to OMB Circulars A–21, A–87, A–89, A– same degree the prime contractor relied provide the socioeconomic status of the 102, A–110, A–122, and A–133, as well on the small business in preparing and subcontractor in the notification to as the guidance in Circular A–50 on submitting its bid or proposal. To the unsuccessful offerors for subcontracts. Audit Followup. As such, this final rule extent a prime contractor is unable to (9) Requires prime contracts with make a good faith effort to utilize its replaces OMB citations in the FAR to subcontracting plans on task and the circulars cited above that have been small business subcontractors as delivery order contracts to report order mstockstill on DSK3G9T082PROD with RULES2 described above, the prime contractor is superseded. The replacement of these level subcontracting information after required to explain, in writing, within outdated OMB citations in the FAR will November 2017. 30 days of contract completion, to the (10) Facilitates funding agencies have no impact on small businesses contracting officer the reasons why it receiving small business subcontracting since the intent of the OMB guidance was unable to do so. credit. remains unchanged. (2) Authorizes contracting officers to (11) On indefinite-delivery, calculate subcontracting goals in terms indefinite-quantity contracts, allows the VerDate Sep<11>2014 18:51 Jul 13, 2016 Jkt 238001 PO 00000 Frm 00002 Fmt 4701 Sfmt 4700 E:\FR\FM\14JYR2.SGM 14JYR2

Federal Register / Vol. 81, No. 135 / Thursday, July 14, 2016 / Rules and Regulations 45833 Item III—FPI Blanket Waiver DEPARTMENT OF DEFENSE make a good faith effort to utilize its Threshold (FAR Case 2016–008) small business subcontractors as GENERAL SERVICES described above, the prime contractor is This final rule amends the FAR to ADMINISTRATION required to explain, in writing, within increase the blanket waiver threshold 30 days of contract completion, to the for small dollar-value purchases from NATIONAL AERONAUTICS AND contracting officer the reasons why it is Federal Prison Industries (FPI) by SPACE ADMINISTRATION unable to do so. Federal agencies from $3,000 to $3,500. (2) Authorizing contracting officers to No waiver is required to buy from an 48 CFR Parts 1, 2, 15, 19, and 52 calculate subcontracting goals in terms alternative source below $3,500. of total contract dollars in addition to Customers may, however, still purchase [FAC 2005–89; FAR Case 2014–003; Item I; Docket No. 2014–0003; Sequence No. 1] the required goals in terms of total from FPI at, or below, this threshold, if subcontracted dollars. they so choose. RIN 9000–AM91 (3) Providing contracting officers with Item IV—Revision to Standard Forms the discretion to require a Federal Acquisition Regulation; Small subcontracting plan in instances where for Bonds (FAR Case 2015–025) Business Subcontracting a small business rerepresents its size as This rule amends the FAR to revise Improvements an other than small business. five Standard Forms prescribed for (4) Requiring subcontracting plans AGENCY: Department of Defense (DoD), contracts involving bonds and other even for modifications under the General Services Administration (GSA), financial protections. The revisions, subcontracting plan threshold if said and the National Aeronautics and Space aimed at clarifying liability limitations modifications would cause the contract Administration (NASA). and expanding the options for to exceed the plan threshold. ACTION: Final rule. organization types, are made to (5) Requiring prime contractors to Standard Forms 24, 25, 25A, 34, and 35. SUMMARY: DoD, GSA, and NASA are assign North American Industry These changes will minimize questions issuing a final rule amending the Classification System (NAICS) codes to from industry to the contracting officer. Federal Acquisition Regulation (FAR) to subcontracts. This final rule does not place any new implement regulatory changes made by (6) Restricting prime contractors from requirements on small entities. the Small Business Administration, prohibiting a subcontractor from which provide for a Governmentwide discussing payment or utilization Item V—Technical Amendments policy on small business subcontracting. matters with the contracting officer. Editorial changes are made at FAR DATES: Effective: November 1, 2016. (7) Requiring prime contractors to 4.1801, 4.1803, 52.204–16, 52.204–17, resubmit a corrected subcontracting FOR FURTHER INFORMATION CONTACT: Ms. 52.204–18, 52.204–20, and 52.212–3. report within 30 days of receiving the Mahruba Uddowla, Procurement Dated: June 30, 2016. contracting officer’s notice of report Analyst, at 703–605–2868 for rejection. William Clark, clarification of content. For information (8) Requiring prime contractors to Director, Office of Government-wide pertaining to status or publication provide the socioeconomic status of the Acquisition Policy, Office of Acquisition schedules, contact the Regulatory subcontractor in the notification to Policy, Office of Government-wide Policy. Secretariat Division at 202–501–4755. unsuccessful offerors for subcontracts. Federal Acquisition Circular (FAC) Please cite FAC 2005–89, FAR Case (9) Requiring prime contracts with 2005–89 is issued under the authority of 2014–003. subcontracting plans on task and the Secretary of Defense, the SUPPLEMENTARY INFORMATION: delivery order contracts to report order Administrator of General Services, and level subcontracting information after the Administrator for the National I. Background November 2017. Aeronautics and Space Administration. DoD, GSA, and NASA published a (10) Funding agencies receiving small Unless otherwise specified, all proposed rule in the Federal Register at business subcontracting credit. Federal Acquisition Regulation (FAR) 80 FR 32909 on June 10, 2015. The (11) On indefinite-delivery, and other directive material contained proposed rule discussed regulatory indefinite-quantity contracts, the in FAC 2005–89 is effective July 14, changes made by the Small Business contracting officer may establish 2016 except for item I which is effective Administration (SBA) in its final rule subcontracting goals at the order level November 1, 2016, and items II, III, and published at 78 FR 42391, on July 16, (but not a new subcontracting plan). IV, which are effective August 15, 2016. 2013, concerning small business Twenty-seven respondents submitted subcontracting. SBA’s final rule comments on the proposed rule. Dated: July 1, 2016. implements the statutory requirements Claire M. Grady, II. Discussion and Analysis in sections 1321 and 1322 of the Small Director, Defense Procurement and Business Jobs Act of 2010 (Pub. L. 111– The Civilian Agency Acquisition Acquisition Policy 240), as well as other changes aimed at Council and the Defense Acquisition Dated: July 1, 2016. improving subcontracting regulations to Regulations Council (the Councils) Jeffrey A. Koses, increase small business opportunities. reviewed the public comments in the Senior Procurement Executive/Deputy CAO, The changes being implemented in this development of the final rule. A Office of Acquisition Policy, U.S. General final rule include the following: discussion of the comments received Services Administration. (1) Requiring prime contractors to and the changes made to the rule as a mstockstill on DSK3G9T082PROD with RULES2 Dated: June 29, 2016. make good faith efforts to utilize their result of those comments are provided William G. Roets, proposed small business subcontractors as follows: Acting Assistant Administrator, Office of during performance of a contract to the Procurement National Aeronautics and Space same degree the prime contractor relied A. Summary of Significant Changes Administration. on the small business in preparing and This final rule makes the following [FR Doc. 2016–16244 Filed 7–13–16; 8:45 am] submitting its bid or proposal. To the significant changes from the proposed BILLING CODE 6820–EP–P extent a prime contractor is unable to rule: VerDate Sep<11>2014 18:51 Jul 13, 2016 Jkt 238001 PO 00000 Frm 00003 Fmt 4701 Sfmt 4700 E:\FR\FM\14JYR2.SGM 14JYR2


Document Created: 2016-07-14 01:54:45
Document Modified: 2016-07-14 01:54:45
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionSummary presentation of final rules.
DatesFor effective dates see the separate documents, which follow.
ContactThe analyst whose name appears in the table below in relation to the FAR case. Please cite FAC 2005-89 and the specific FAR case number. For information pertaining to status or publication schedules, contact the Regulatory Secretariat Division at 202-501-4755.
FR Citation81 FR 45831 
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