81 FR 45854 - Federal Acquisition Regulation; FPI Blanket Waiver Threshold

DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

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

Page Range		45854-45855
FR Document		2016-16247

DoD, GSA, and NASA are issuing a final rule amending the Federal Acquisition Regulation (FAR) to increase the blanket waiver threshold for small dollar-value purchases from Federal Prison Industries (FPI) by Federal agencies.

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

[Federal Register Volume 81, Number 135 (Thursday, July 14, 2016)]
[Rules and Regulations]
[Pages 45854-45855]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-16247]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Part 8

[FAC 2005-89; FAR Case 2016-008; Item III; Docket No. 2016-0008; 
Sequence No 1]
RIN 9000-AN22


Federal Acquisition Regulation; FPI Blanket Waiver Threshold

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

ACTION: Final rule.

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SUMMARY: DoD, GSA, and NASA are issuing a final rule amending the 
Federal Acquisition Regulation (FAR) to increase the blanket waiver 
threshold for small dollar-value purchases from Federal Prison 
Industries (FPI) by Federal agencies.

[[Page 45855]]


DATES: Effective: August 15, 2016.

FOR FURTHER INFORMATION CONTACT: Ms. Mahruba Uddowla, Procurement 
Analyst, at (703) 605-2868, 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-
89, FAR Case 2016-008.

SUPPLEMENTARY INFORMATION: 

I. Background

    Federal Prison Industries, Inc. (FPI), also known by its trade 
name, UNICOR, is governed by a six-member Board of Directors. The 
members are appointed by the President and, by statute, represent 
industry, labor, retailers and consumers, agriculture, the Secretary of 
Defense, and the Attorney General. On March 3, 2016, FPI's Board of 
Directors adopted a resolution increasing the blanket waiver threshold 
for small dollar-value purchases from FPI by Federal agencies from 
$3,000 to $3,500. The increase coincides with the increase in the 
micro-purchase threshold. This final rule amends the FAR to reflect the 
threshold increase 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.

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 that applies to the publication of the FAR. 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 only 
updates the threshold, consistent with the inflationary adjustment to 
the micro-purchase threshold, in order to conform to the decision made 
by the FPI Board of Directors. Additionally, this final rule is 
expected to be of benefit to industry because it makes available 
certain procurements to which industry did not previously have access, 
i.e., listed items totaling $3,000.01 to $3,500.

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 final 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 final 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 Part 8

    Government procurement.

    Dated: June 30, 2016.
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 part 8 as set forth 
below:

PART 8--REQUIRED SOURCES OF SUPPLIES AND SERVICE

0
1. The authority citation for 48 CFR part 8 continues to read as 
follows:

    Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 51 
U.S.C. 20113.


8.605   [Amended]

0
2. Amend section 8.605 by removing from paragraph (e) ``$3,000'' and 
adding ``$3,500'' in its place.

[FR Doc. 2016-16247 Filed 7-13-16; 8:45 am]
 BILLING CODE 6820-EP-P

45854 Federal Register / Vol. 81, No. 135 / Thursday, July 14, 2016 / Rules and Regulations

200, subpart A, and 20 U.S.C. 1001) to (h) The provisions of the OMB requires the Contractor to make a change to
a single Government agency for the Uniform Guidance at 2 CFR part 200, the Contractor’s established cost accounting
negotiation of indirect cost rates and subpart F apply to this contract. practices.
provides that those rates shall be * * * * * * * * * *
accepted by all Federal agencies. ■ 21. Amend section 52.230–5 by ■ 22. Amend section 52.249–5 by
Cognizant Government agencies and revising the date of the clause and revising the date of the clause and
educational institutions are listed in the paragraphs (a)(1) and (2) and (a)(4)(iv) to paragraph (f) to read as follows:
Directory of Federal Contract Audit read as follows: 52.249–5 Termination for Convenience of
Offices (see 42.103). the Government (Educational and Other
(3) The cognizant agency for indirect 52.230–5 Cost Accounting Standards—
Nonprofit Institutions).
Educational Institution.
costs shall establish the billing rates and * * * * *
final indirect cost rates at the * * * * *
educational institution (defined as an Termination for Convenience of the
Cost Accounting Standards—
institution of higher education in 2 CFR Government (Educational and Other
Educational Institution (Aug 2016)
200, subpart A, and 20 U.S.C. 1001) Nonprofit Institutions) (Aug 2016)
consistent with the requirements of this (a) * * *
(1) (CAS-covered Contracts only). If a * * * * *
subpart, Subpart 31.3, and the OMB business unit of an educational institution (f) The cost principles and procedures in
Uniform Guidance at 2 CFR part 200, (defined as an institution of higher education subpart 31.3 of the Federal Acquisition
subpart E and appendix III. The agency Regulation (FAR), Contracts with Educational
in the OMB Uniform Guidance at 2 CFR part
shall follow the procedures outlined in Institutions (defined as institutions of higher
200, subpart A and 20 U.S.C. 1001) is
education in the OMB Uniform Guidance in
42.705–1(b). required to submit a Disclosure Statement,
2 CFR part 200, subpart A, and 20 U.S.C.
* * * * * disclose in writing the Contractor’s cost
1001), as in effect on the date of the contract,
accounting practices as required by 48 CFR
(b) * * * shall govern all costs claimed, agreed to, or
9003.202–1 through 9903.202–5, including
determined under this clause; however, if the
(8) The OMB Uniform Guidance at 2 methods of distinguishing direct costs from
Contractor is not an educational institution
CFR part 200, subpart E and appendix indirect costs and the basis used for
and is a nonprofit organization (as defined in
III, provides additional guidance on accumulating and allocating indirect costs. the OMB Uniform Guidance at 2 CFR part
The practices disclosed for this contract shall
how long predetermined rates may be be the same as the practices currently
200), the cost principles and procedures in
used. subpart 31.7 of the FAR, Contracts with
disclosed and applied on all other contracts Nonprofit Organizations, shall apply; unless
■ 18. Revise section 42.705–4 to read as and subcontracts being performed by the the Contractor is a nonprofit institution listed
follows: Contractor and which contain a Cost in the OMB Uniform Guidance at 2 CFR part
Accounting Standards (CAS) clause. If the 200, appendix VIII, as exempted from the
42.705–4 State and local governments. Contractor has notified the Contracting cost principles in subpart E, in which case
Officer that the Disclosure Statement the cost principles at FAR 31.2 for
The OMB Uniform Guidance at 2 CFR
contains trade secrets, and commercial or commercial organizations shall apply to such
part 200, subpart E and appendix V, financial information which is privileged and
concerning cost principles for state and contractor.
confidential, the Disclosure Statement shall [FR Doc. 2016–16246 Filed 7–13–16; 8:45 am]
local governments (see Subpart 31.6) be protected and shall not be released outside
BILLING CODE 6820–EP–P
establishes the cognizant agency of the Government.
concept and the procedures for (2) Follow consistently the Contractor’s
determining a cognizant agency for cost accounting practices in accumulating
and reporting contract performance cost data DEPARTMENT OF DEFENSE
approving State and local government
indirect costs associated with federally- concerning this contract. If any change in
cost accounting practices is made for the GENERAL SERVICES
funded programs and activities. The ADMINISTRATION
purposes of any contract or subcontract
indirect cost rates negotiated and subject to CAS requirements, the change
approved by the cognizant agency for must be applied prospectively to this NATIONAL AERONAUTICS AND
indirect costs will be used by all Federal contract and the Disclosure Statement, if SPACE ADMINISTRATION
agencies that also award contracts to required, must be amended accordingly. If an
these same State and local governments. accounting principle change mandated under 48 CFR Part 8
OMB Uniform Guidance at 2 CFR part 200,
42.705–5 [Amended] subpart E and appendix III, requires that a [FAC 2005–89; FAR Case 2016–008; Item
change in the Contractor’s cost accounting III; Docket No. 2016–0008; Sequence No 1]
■ 19. Amend section 42.705–5 by practices be made after the date of this
removing ‘‘OMB Circular No. A–122’’ RIN 9000–AN22
contract award, the change must be applied
and adding ‘‘the OMB Uniform prospectively to this contract and the
Guidance at 2 CFR part 200, subpart E Federal Acquisition Regulation; FPI
Disclosure Statement, if required, must be
and appendix IV; but see appendix VIII amended accordingly. If the contract price or Blanket Waiver Threshold
for nonprofit organizations exempt from cost allowance of this contract is affected by AGENCY: Department of Defense (DoD),
subpart E)’’ in its place. such changes, adjustment shall be made in General Services Administration (GSA),
accordance with paragraph (a)(4) or (a)(5) of
and National Aeronautics and Space
PART 52—SOLICITATION PROVISIONS this clause, as appropriate.
Administration (NASA).
AND CONTRACT CLAUSES * * * * *
ACTION: Final rule.
(4) * * *
mstockstill on DSK3G9T082PROD with RULES2

■ 20. Amend section 52.215–2 by (iv) Agree to an equitable adjustment as SUMMARY: DoD, GSA, and NASA are
revising the date of Alternate II and provided in the Changes clause of this issuing a final rule amending the
contract, if the contract cost is materially
paragraph (h) to read as follows: affected by an accounting principle
Federal Acquisition Regulation (FAR) to
amendment required under the OMB increase the blanket waiver threshold
52.215–2 Audit and Records-Negotiation.
Uniform Guidance at 2 CFR part 200, subpart for small dollar-value purchases from
* * * * * E and appendix III, which, on becoming Federal Prison Industries (FPI) by
Alternate II (Aug 2016). * * * effective after the date of contract award, Federal agencies.

VerDate Sep<11>2014 18:51 Jul 13, 2016 Jkt 238001 PO 00000 Frm 00024 Fmt 4701 Sfmt 4700 E:\FR\FM\14JYR2.SGM 14JYR2

Document Created: 2016-07-14 01:54:57
Document Modified: 2016-07-14 01:54:57

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Rules and Regulations
Action		Final rule.
Dates		Effective: August 15, 2016.
Contact		Ms. Mahruba Uddowla, Procurement Analyst, at (703) 605-2868, 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- 89, FAR Case 2016-008.
FR Citation		81 FR 45854
RIN Number		9000-AN22

81 FR 45854 - Federal Acquisition Regulation; FPI Blanket Waiver Threshold

DEPARTMENT OF DEFENSEGENERAL SERVICES ADMINISTRATIONNATIONAL AERONAUTICS AND SPACE ADMINISTRATION

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

DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION