81_FR_46003 81 FR 45868 - Federal Acquisition Regulation; Federal Acquisition Circular 2005-89; Small Entity Compliance Guide

81 FR 45868 - Federal Acquisition Regulation; Federal Acquisition Circular 2005-89; Small Entity Compliance Guide

DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

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

Page Range45868-45869
FR Document2016-16250

This document is issued under the joint authority of DOD, GSA, and NASA. This Small Entity Compliance Guide has been prepared in accordance with section 212 of the Small Business Regulatory Enforcement Fairness Act of 1996. It consists of a summary of the rules appearing in Federal Acquisition Circular (FAC) 2005-89, which amends the Federal Acquisition Regulation (FAR). An asterisk (*) next to a rule indicates that a regulatory flexibility analysis has been prepared. Interested parties may obtain further information regarding these rules by referring to FAC 2005-89, which precedes this document. These documents are also 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 45868-45869]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-16250]


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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; Small Entity Compliance Guide

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

ACTION: Small Entity Compliance Guide.

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SUMMARY: This document is issued under the joint authority of DOD, GSA, 
and NASA. This Small Entity Compliance Guide has been prepared in 
accordance with section 212 of the Small Business Regulatory 
Enforcement Fairness Act of 1996. It consists of a summary of the rules 
appearing in Federal Acquisition Circular (FAC) 2005-89, which amends 
the Federal Acquisition Regulation (FAR). An asterisk (*) next to a 
rule indicates that a regulatory flexibility analysis has been 
prepared. Interested parties may obtain further information regarding 
these rules by referring to FAC 2005-89, which precedes this document. 
These documents are also available via the Internet at http://www.regulations.gov.

DATES: July 14, 2016.

FOR FURTHER INFORMATION CONTACT: For clarification of content, contact 
the analyst whose name appears in the table below. Please cite FAC 
2005-89 and the 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

[[Page 45869]]

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.

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.
[FR Doc. 2016-16250 Filed 7-13-16; 8:45 am]
 BILLING CODE 6820-EP-P

45868 Federal Register / Vol. 81, No. 135 / Thursday, July 14, 2016 / Rules and Regulations Offeror Representations and DEPARTMENT OF DEFENSE accordance with section 212 of the Certifications—Commercial Items (Jul Small Business Regulatory Enforcement 2016) GENERAL SERVICES Fairness Act of 1996. It consists of a ADMINISTRATION summary of the rules appearing in * * * * * [FR Doc. 2016–16249 Filed 7–13–16; 8:45 am] Federal Acquisition Circular (FAC) NATIONAL AERONAUTICS AND 2005–89, which amends the Federal BILLING CODE 6820–EP–P SPACE ADMINISTRATION Acquisition Regulation (FAR). An asterisk (*) next to a rule indicates that 48 CFR Chapter 1 a regulatory flexibility analysis has been [Docket No. FAR 2016–0051, Sequence prepared. Interested parties may obtain No. 3] further information regarding these rules by referring to FAC 2005–89, Federal Acquisition Regulation; which precedes this document. These Federal Acquisition Circular 2005–89; documents are also available via the Small Entity Compliance Guide Internet at http://www.regulations.gov. AGENCY: Department of Defense (DoD), DATES: July 14, 2016. General Services Administration (GSA), and National Aeronautics and Space FOR FURTHER INFORMATION CONTACT: For Administration (NASA). clarification of content, contact the ACTION: Small Entity Compliance Guide. analyst whose name appears in the table below. Please cite FAC 2005–89 and the SUMMARY: This document is issued FAR case number. For information under the joint authority of DOD, GSA, pertaining to status or publication and NASA. This Small Entity schedules, contact the Regulatory Compliance Guide has been prepared in Secretariat Division at 202–501–4755. 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: described above, the prime contractor is contracting officer’s notice of report Summaries for each FAR rule follow. required to explain, in writing, within rejection. For the actual revisions and/or 30 days of contract completion, to the (8) Requires prime contractors to amendments made by these rules, refer contracting officer the reasons why it provide the socioeconomic status of the to the specific item numbers and was unable to do so. subcontractor in the notification to subjects set forth in the documents (2) Authorizes contracting officers to unsuccessful offerors for subcontracts. following these item summaries. FAC calculate subcontracting goals in terms (9) Requires prime contracts with 2005–89 amends the FAR as follows: of total contract dollars in addition to subcontracting plans on task and the required goals in terms of total delivery order contracts to report order Item I—Small Business Subcontracting subcontracted dollars. level subcontracting information after Improvements (FAR Case 2014–003) (3) Provides contracting officers with November 2017. This final rule amends the FAR to (10) Facilitates funding agencies the discretion to require a implement SBA’s final rule published at receiving small business subcontracting subcontracting plan in instances where 78 FR 42391 on July 16, 2013. The rule credit. a small business rerepresents its size as will implement the statutory (11) On indefinite-delivery, an other than small business. requirements set forth in section 1321 indefinite-quantity contracts, allows the and 1322 of the Small Business Jobs Act (4) Requires subcontracting plans contracting officer to establish of 2010, (Pub. L. 111–240), as well as even for modifications under the subcontracting goals at the order level other requirements aimed at improving subcontracting plan threshold if said (but not a new subcontracting plan). subcontracting regulations to increase modifications would cause the contract This rule may have a positive small business opportunities. This rule to exceed the plan threshold. economic impact on any small business accomplishes the following: (5) Requires prime contractors to entity that wishes to participate in the (1) Requires prime contractors to assign North American Industry Federal procurement arena as a make good faith efforts to utilize their Classification System (NAICS) codes to subcontractor. proposed small business subcontractors subcontracts. mstockstill on DSK3G9T082PROD with RULES2 during performance of a contract to the (6) Restricts prime contractors from Item II—OMB Circular Citation Update same degree the prime contractor relied prohibiting a subcontractor from (FAR Case 2014–023) on the small business in preparing and discussing payment or utilization This final rule amends the FAR to submitting its bid or proposal. To the matters with the contracting officer. update outdated OMB Circular citation extent a prime contractor is unable to (7) Requires prime contractors to references. On December 26, 2013, the make a good faith effort to utilize its resubmit a corrected subcontracting Office of Management and Budget small business subcontractors as report within 30 days of receiving the (OMB) published new guidance at 2 VerDate Sep<11>2014 18:51 Jul 13, 2016 Jkt 238001 PO 00000 Frm 00038 Fmt 4701 Sfmt 4700 E:\FR\FM\14JYR2.SGM 14JYR2

Federal Register / Vol. 81, No. 135 / Thursday, July 14, 2016 / Rules and Regulations 45869 CFR part 200 entitled Uniform Item III—FPI Blanket Waiver and expanding the options for Administrative Requirements, Cost Threshold (FAR Case 2016–008) organization types, are made to Principles, and Audit Requirements for This final rule amends the FAR to Standard Forms 24, 25, 25A, 34, and 35. Federal Awards, adopted by Federal increase the blanket waiver threshold These changes will minimize questions agencies as a set of binding regulations for small dollar-value purchases from from industry to the contracting officer. that became effective December 26, Federal Prison Industries (FPI) by This final rule does not place any new 2014. This new guidance supersedes Federal agencies from $3,000 to $3,500. requirements on small entities. and streamlines requirements from No waiver is required to buy from an Item V—Technical Amendments OMB Circulars A–21, A–87, A–89, A– alternative source below $3,500. 102, A–110, A–122, and A–133, as well Customers may, however, still purchase Editorial changes are made at FAR as the guidance in Circular A–50 on from FPI at, or below, this threshold, if 4.1801, 4.1803, 52.204–16, 52.204–17, Audit Followup. As such, this final rule they so choose. 52.204–18, 52.204–20, and 52.212–3. replaces OMB citations in the FAR to Item IV—Revision to Standard Forms Dated: June 30, 2016. the circulars cited above that have been for Bonds (FAR Case 2015–025) William Clark, superseded. The replacement of these This rule amends the FAR to revise Director, Office of Government-wide outdated OMB citations in the FAR will five Standard Forms prescribed for Acquisition Policy, Office of Acquisition have no impact on small businesses contracts involving bonds and other Policy, Office of Government-wide Policy. since the intent of the OMB guidance financial protections. The revisions, [FR Doc. 2016–16250 Filed 7–13–16; 8:45 am] remains unchanged. aimed at clarifying liability limitations BILLING CODE 6820–EP–P mstockstill on DSK3G9T082PROD with RULES2 VerDate Sep<11>2014 18:51 Jul 13, 2016 Jkt 238001 PO 00000 Frm 00039 Fmt 4701 Sfmt 9990 E:\FR\FM\14JYR2.SGM 14JYR2


Document Created: 2016-07-14 01:54:48
Document Modified: 2016-07-14 01:54:48
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
ActionSmall Entity Compliance Guide.
DatesJuly 14, 2016.
ContactFor clarification of content, contact the analyst whose name appears in the table below. Please cite FAC 2005-89 and the FAR case number. For information pertaining to status or publication schedules, contact the Regulatory Secretariat Division at 202-501-4755.
FR Citation81 FR 45868 
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