81_FR_67916 81 FR 67726 - Federal Acquisition Regulation; Federal Acquisition Circular 2005-91; Introduction

81 FR 67726 - Federal Acquisition Regulation; Federal Acquisition Circular 2005-91; Introduction

DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

Federal Register Volume 81, Issue 190 (September 30, 2016)

Page Range67726-67728
FR Document2016-23193

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) 2005-91. 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 190 (Friday, September 30, 2016)
[Federal Register Volume 81, Number 190 (Friday, September 30, 2016)]
[Rules and Regulations]
[Pages 67726-67728]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-23193]



[[Page 67725]]

Vol. 81

Friday,

No. 190

September 30, 2016

Part IV





Department of Defense

General Services Administration

National Aeronautics and Space Administration





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48 CFR Chapter 1, et al.





Federal Acquisition Regulations; Final Rules

Federal Register / Vol. 81 , No. 190 / Friday, September 30, 2016 / 
Rules and Regulations

[[Page 67726]]


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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. 5]


Federal Acquisition Regulation; Federal Acquisition Circular 
2005-91; Introduction

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

ACTION: Summary presentation of interim and final rules.

-----------------------------------------------------------------------

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) 2005-91. 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 2005-91 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 2005-91
------------------------------------------------------------------------
     Item              Subject            FAR case          Analyst
------------------------------------------------------------------------
I.............  Prohibition on               2015-011  Davis.
                 Contracting with
                 Corporations with
                 Delinquent Taxes or
                 a Felony Conviction.
II............  Updating Federal             2015-036  Delgado.
                 Contractor Reporting
                 of Veterans'
                 Employment.
III...........  Non-Retaliation for          2016-007  Delgado.
                 Disclosure of
                 Compensation
                 Information
                 (Interim).
IV............  Sole Source Contracts        2015-032  Uddowla.
                 for Women-Owned
                 Small Businesses.
V.............  Unique Identification        2015-022  Delgado.
                 of Entities
                 Receiving Federal
                 Awards.
VI............  Consolidation and            2014-015  Uddowla.
                 Bundling.
VII...........  Amendment Relating to        2016-006  Jackson.
                 Multi-year Contract
                 Authority for
                 Acquisition of
                 Property.
VIII..........  New Designated               2016-009  Davis.
                 Countries--Ukraine
                 and Moldova.
IX............  Contractors                  2014-018  Jackson.
                 Performing Private
                 Security Functions.
X.............  Limitation on                2014-012  Hopkins.
                 Allowable Government
                 Contractor Employee
                 Compensation Costs.
XI............  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 2005-91 amends the FAR as follows:

Item I--Prohibition on Contracting With Corporations With Delinquent 
Taxes or a Felony Conviction (FAR Case 2015-011)

    DoD, GSA, and NASA are adopting as final, without change, an 
interim rule, which amended the FAR to implement sections of the 
Consolidated and Further Continuing Appropriations Act, 2015. The rule 
prohibits the Federal Government from entering into a contract with any 
corporation having a delinquent Federal tax liability or a felony 
conviction under any Federal law, unless the agency has considered 
suspension or debarment of the corporation and has made a determination 
that this further action is not necessary to protect the interests of 
the Government.
    This final rule will not have a significant economic impact on a 
substantial number of small entities.

Item II--Updating Federal Contractor Reporting of Veterans' Employment 
(FAR Case 2015-036)

    DoD, GSA, and NASA are adopting as final, without change, an 
interim rule amending the FAR to implement a final rule issued by the 
Department of Labor's Veterans' Employment and Training Service (VETS) 
that revised the regulations at 41 CFR part 61 implementing the 
reporting requirements under the Vietnam Era Veterans' Readjustment 
Assistance Act (VEVRAA), as amended and the Jobs for Veterans Act (JVA) 
(Pub. L. 107-288). VEVRAA requires Federal contractors and 
subcontractors to annually report on the total number of their 
employees who belong to the categories of veterans protected under 
VEVRAA, as amended by the JVA, and the total number of those protected 
veterans who were hired during the period covered by the report. The 
VETS rule requires contractors and subcontractors to comply with its 
revised reporting requirements using the Form VETS-4212, in lieu of the 
VETS-100 and VETS-100A, beginning with the annual report filed in 2015.
    There is no significant impact on small entities imposed by the FAR 
rule.

Item III--Non-Retaliation for Disclosure of Compensation Information 
(FAR Case 2016-007) (Interim)

    DoD, GSA, and NASA are issuing an interim rule amending the FAR to 
implement Executive Order (E.O.) 13665, Non-Retaliation for Disclosure 
of Compensation Information, amending Executive Order 11246, Equal 
Opportunity in Federal Employment. The E.O. was signed April 8, 2014. 
The interim rule is also implementing the final rule issued by the 
Office of Federal Contract Compliance Programs (OFCCP) of the 
Department of Labor (DOL) to implement the E.O. The DOL final rule was 
published in the Federal Register at 80 FR 54934, on September 11, 
2015, entitled Government Contractors, Prohibitions Against Pay Secrecy 
Policies and Actions.
    E.O. 11246, originally issued September 24, 1965, establishes 
nondiscrimination and affirmative action obligations in employment for 
Federal contractors and subcontractors. It prohibits employment 
discrimination because of race, color, religion, sex, sexual 
orientation, gender identity, and national origin. E.O. 13665 amends 
E.O. 11246 and its Equal Opportunity Clause by incorporating, as a 
covered

[[Page 67727]]

prohibition, discriminating against employees and job applicants who 
inquire about, discuss, or disclose the compensation of the employee or 
applicant or another employee or applicant. Federal contractors and 
subcontractors must disseminate this nondiscrimination provision, using 
language prescribed by the Director of OFCCP, including incorporating 
the provision into existing employee manuals or handbooks and posting 
it. There is no significant impact on small entities imposed by the FAR 
rule.

Item IV--Sole Source Contracts for Women-Owned Small Businesses (FAR 
Case 2015-032)

    DoD, GSA, and NASA are adopting as final, with a minor edit, an 
interim rule that amends the FAR to implement regulatory changes made 
by the Small Business Administration (SBA) in its final rule as 
published in the Federal Register at 80 FR 55019, on September 14, 
2015. SBA's final rule implements the statutory requirements of 
paragraph (a)(3) of section 825 of the Carl Levin and Howard P. `Buck' 
McKeon National Defense Authorization Act for Fiscal Year 2015, Public 
Law 113-291, which grants contracting officers the authority to award 
sole source contracts to economically disadvantaged women-owned small 
business (EDWOSB) concerns and to women-owned small business (WOSB) 
concerns eligible under the WOSB Program. The anticipated price, 
including options, must not exceed $6.5 million for manufacturing North 
American Industry Classification System (NAICS) codes, or $4 million 
for other NAICS codes.
    This rule may have a positive economic impact on women-owned small 
businesses.

Item V--Unique Identification of Entities Receiving Federal Awards (FAR 
Case 2015-022)

    DoD, GSA, and NASA are issuing a final rule amending the FAR to 
redesignate the terminology for unique identification of entities 
receiving Federal awards. The change to the FAR eliminates references 
to the proprietary Data Universal Numbering System (DUNS[supreg]) 
number, and provides appropriate references to the Web site where 
information on the unique entity identifier used for Federal 
contractors will be located. The Government does not intend to move 
away from the use of the DUNS[supreg] number in the short term. This 
final rule also establishes definitions of ``unique entity 
identifier'', and ``electronic funds transfer (EFT) indicator''. There 
is no significant impact on small entities imposed by the FAR rule.

Item VI--Consolidation and Bundling (FAR Case 2014-015)

    This final rule incorporates regulatory changes made by the SBA in 
its final rule which published in the Federal Register at 78 FR 61113 
on October 2, 2013, concerning consolidation and bundling. SBA's final 
rule implements sections 1312 and 1313 of the Small Business Jobs Act 
of 2010 (Pub. L. 111-240), as well as section 1671 of the National 
Defense Authorization Act (NDAA) for Fiscal Year (FY) 2013 (Pub. L. 
112-239). The FAR final rule adds coverage on consolidations and 
reorganizes coverage on bundling at FAR 7.107. Before conducting a 
consolidated acquisition estimated to exceed $2,000,000, the Senior 
Procurement Executive or Chief Acquisition Officer must make a written 
determination that the consolidation is necessary and justified. This 
rule may have a positive economic impact on any small business entity 
that participates in the Federal procurement arena.

Item VII--Amendment Relating to Multi-Year Contract Authority for 
Acquisition of Property (FAR Case 2016-006)

    DoD, GSA, and NASA are amending FAR subpart 17.1 to implement 
section 811 of the NDAA for FY 2016 (Pub. L. 114-92). Section 811 
amended subsection (a)(1) of 10 U.S.C. 2306b by striking 
``substantial'' and inserting ``significant''. This rule makes 
conforming changes at FAR 17.105-1(b)(1) to state that the head of an 
agency may enter into a multi-year contract for supplies, if the use of 
such a contract will result in significant savings of the total 
estimated costs of carrying out the program through annual contracts. 
This change applies to the DoD, NASA, and the Coast Guard.
    This final rule is not required to be published for public comment, 
because it addresses an internal decision by the contracting officer to 
enter into a multi-year contract for supplies if certain objects are 
met. These requirements affect only the internal operating procedures 
of the Government.

Item VIII--New Designated Country--Ukraine and Moldova (FAR Case 2016-
009)

    This final rule amends the FAR to add Ukraine and Moldova as new 
designated countries under the World Trade Organization Government 
Procurement Agreement (WTO GPA). This final rule has no significant 
impact on the Government and contractors, including small business 
entities.

Item IX--Contractors Performing Private Security Functions (FAR Case 
2014-018)

    This final rule amends FAR 25.302 and the clause at 52.225-26, both 
entitled ``Contractors Performing Private Security Functions Outside 
the United States.''
    This rule removes the DoD-unique requirements, which have been 
incorporated in the Defense Federal Acquisition Regulations Supplement 
(DFARS). This rule also adds the definition of ``full cooperation'' to 
FAR clause 52.225-26 in order to affirm that the contract clause does 
not foreclose any contractor rights arising in law, the FAR, or the 
terms of the contract when cooperating with any Government-authorized 
investigation into incidents reported pursuant to the clause.
    This rule will not create any new reporting, recordkeeping, or 
other compliance requirements. The impact of this rule on small 
business is not expected to be significant.

Item X--Limitation on Allowable Government Contractor Employee 
Compensation Costs (FAR Case 2014-012)

    This final rule converts the interim rule published in the Federal 
Register at 79 FR 35865 on June 24, 2014 to a final rule with minor 
changes including a table summarizing the employee compensation limits 
and applicability dates is added at 31.205-6(p); several paragraphs are 
reorganized; redundant text is removed; reference links are added for 
clarity.
    This final rule amends the Federal Acquisition Regulation (FAR) to 
implement section 702 of the Bipartisan Budget Act of 2013. Section 702 
revises the allowable compensation cost limit for contractor and 
subcontractor employees to be $487,000, as adjusted annually to reflect 
the change in the Employment Cost Index for all workers as calculated 
by the Bureau of Labor Statistics. Also, section 702 allows for the 
narrowly targeted exceptions to this allowable cost limit for 
scientists, engineers or other specialists, upon an agency 
determination that such exceptions are needed to ensure that the 
executive agency has continued access to needed skills and 
capabilities. Because most contracts awarded to small businesses use 
simplified acquisition procedures or are awarded on a competitive, 
fixed-price basis, the impact of this compensation limitation on small 
businesses will be minimal.

[[Page 67728]]

Item XI--Technical Amendments

    Editorial changes are made at FAR 1.603-1, 4.1400, 22.805, 23.704, 
26.103, and 52.234-1.

    Dated: September 19, 2016.
William F. Clark,
Director, Office of Government-wide Acquisition Policy, Office of 
Acquisition Policy, Office of Government-wide Policy.

    Federal Acquisition Circular (FAC) 2005-91 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 2005-91 is 
effective September 30, 2016 except for items V, VI, VII, VIII, and 
IX, which are effective October 31, 2016.


    Dated: September 20, 2016.

Claire M. Grady,
Director, Defense Procurement and Acquisition Policy.

    Dated: September 20, 2016.

Jeffrey A. Koses,
Senior Procurement Executive/Deputy CAO, Office of Acquisition Policy, 
U.S. General Services Administration.

    Dated: September 20, 2016.

William G. Roets,
Acting Assistant Administrator, Office of Procurement National 
Aeronautics and Space Administration.
[FR Doc. 2016-23193 Filed 9-29-16; 8:45 am]
 BILLING CODE 6820-EP-P



                                                  67726                 Federal Register / Vol. 81, No. 190 / Friday, September 30, 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                                       FOR FURTHER INFORMATION CONTACT:     The
                                                                                                                         interim and final 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 2005–91 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 No.                                Defense Acquisition Regulations                                       Regulatory Secretariat Division at 202–
                                                  5]                                                                     Council (Councils) in this Federal                                    501–4755.
                                                                                                                         Acquisition Circular (FAC) 2005–91. A
                                                  Federal Acquisition Regulation;
                                                  Federal Acquisition Circular 2005–91;                                  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 2005–91
                                                       Item                                                                            Subject                                                                       FAR case       Analyst

                                                  I ................   Prohibition on Contracting with Corporations with Delinquent Taxes or a Felony Conviction ..........                                            2015–011   Davis.
                                                  II ...............   Updating Federal Contractor Reporting of Veterans’ Employment ....................................................                              2015–036   Delgado.
                                                  III ..............   Non-Retaliation for Disclosure of Compensation Information (Interim) .............................................                              2016–007   Delgado.
                                                  IV ..............    Sole Source Contracts for Women-Owned Small Businesses ..........................................................                               2015–032   Uddowla.
                                                  V ...............    Unique Identification of Entities Receiving Federal Awards ..............................................................                       2015–022   Delgado.
                                                  VI ..............    Consolidation and Bundling ................................................................................................................     2014–015   Uddowla.
                                                  VII .............    Amendment Relating to Multi-year Contract Authority for Acquisition of Property ............................                                    2016–006   Jackson.
                                                  VIII ............    New Designated Countries—Ukraine and Moldova ...........................................................................                        2016–009   Davis.
                                                  IX ..............    Contractors Performing Private Security Functions ...........................................................................                   2014–018   Jackson.
                                                  X ...............    Limitation on Allowable Government Contractor Employee Compensation Costs ............................                                          2014–012   Hopkins.
                                                  XI ..............    Technical Amendments.



                                                  SUPPLEMENTARY INFORMATION:                                             Item II—Updating Federal Contractor                                   Item III—Non-Retaliation for
                                                  Summaries for each FAR rule follow.                                    Reporting of Veterans’ Employment                                     Disclosure of Compensation
                                                  For the actual revisions and/or                                        (FAR Case 2015–036)                                                   Information (FAR Case 2016–007)
                                                  amendments made by these rules, refer                                                                                                        (Interim)
                                                  to the specific item numbers and                                          DoD, GSA, and NASA are adopting as
                                                                                                                         final, without change, an interim rule                                   DoD, GSA, and NASA are issuing an
                                                  subjects set forth in the documents                                                                                                          interim rule amending the FAR to
                                                  following these item summaries. FAC                                    amending the FAR to implement a final
                                                                                                                         rule issued by the Department of Labor’s                              implement Executive Order (E.O.)
                                                  2005–91 amends the FAR as follows:                                                                                                           13665, Non-Retaliation for Disclosure of
                                                                                                                         Veterans’ Employment and Training
                                                  Item I—Prohibition on Contracting                                                                                                            Compensation Information, amending
                                                                                                                         Service (VETS) that revised the
                                                  With Corporations With Delinquent                                                                                                            Executive Order 11246, Equal
                                                                                                                         regulations at 41 CFR part 61
                                                  Taxes or a Felony Conviction (FAR                                                                                                            Opportunity in Federal Employment.
                                                                                                                         implementing the reporting
                                                  Case 2015–011)                                                                                                                               The E.O. was signed April 8, 2014. The
                                                                                                                         requirements under the Vietnam Era                                    interim rule is also implementing the
                                                                                                                         Veterans’ Readjustment Assistance Act                                 final rule issued by the Office of Federal
                                                     DoD, GSA, and NASA are adopting as
                                                                                                                         (VEVRAA), as amended and the Jobs for                                 Contract Compliance Programs (OFCCP)
                                                  final, without change, an interim rule,
                                                                                                                         Veterans Act (JVA) (Pub. L. 107–288).                                 of the Department of Labor (DOL) to
                                                  which amended the FAR to implement
                                                                                                                         VEVRAA requires Federal contractors                                   implement the E.O. The DOL final rule
                                                  sections of the Consolidated and Further
                                                                                                                         and subcontractors to annually report                                 was published in the Federal Register at
                                                  Continuing Appropriations Act, 2015.
                                                                                                                         on the total number of their employees                                80 FR 54934, on September 11, 2015,
                                                  The rule prohibits the Federal
                                                                                                                         who belong to the categories of veterans                              entitled Government Contractors,
                                                  Government from entering into a
                                                                                                                         protected under VEVRAA, as amended                                    Prohibitions Against Pay Secrecy
                                                  contract with any corporation having a
                                                                                                                         by the JVA, and the total number of                                   Policies and Actions.
                                                  delinquent Federal tax liability or a
                                                                                                                         those protected veterans who were hired                                  E.O. 11246, originally issued
                                                  felony conviction under any Federal
                                                                                                                         during the period covered by the report.                              September 24, 1965, establishes
                                                  law, unless the agency has considered
                                                                                                                         The VETS rule requires contractors and                                nondiscrimination and affirmative
                                                  suspension or debarment of the
asabaliauskas on DSK3SPTVN1PROD with RULES




                                                                                                                         subcontractors to comply with its                                     action obligations in employment for
                                                  corporation and has made a
                                                                                                                         revised reporting requirements using the                              Federal contractors and subcontractors.
                                                  determination that this further action is
                                                                                                                         Form VETS–4212, in lieu of the VETS–                                  It prohibits employment discrimination
                                                  not necessary to protect the interests of                                                                                                    because of race, color, religion, sex,
                                                                                                                         100 and VETS–100A, beginning with
                                                  the Government.                                                                                                                              sexual orientation, gender identity, and
                                                                                                                         the annual report filed in 2015.
                                                     This final rule will not have a                                                                                                           national origin. E.O. 13665 amends E.O.
                                                                                                                            There is no significant impact on
                                                  significant economic impact on a                                                                                                             11246 and its Equal Opportunity Clause
                                                                                                                         small entities imposed by the FAR rule.
                                                  substantial number of small entities.                                                                                                        by incorporating, as a covered


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                                                                   Federal Register / Vol. 81, No. 190 / Friday, September 30, 2016 / Rules and Regulations                                      67727

                                                  prohibition, discriminating against                     impact on small entities imposed by the               Government and contractors, including
                                                  employees and job applicants who                        FAR rule.                                             small business entities.
                                                  inquire about, discuss, or disclose the
                                                                                                          Item VI—Consolidation and Bundling                    Item IX—Contractors Performing
                                                  compensation of the employee or
                                                                                                          (FAR Case 2014–015)                                   Private Security Functions (FAR Case
                                                  applicant or another employee or
                                                                                                                                                                2014–018)
                                                  applicant. Federal contractors and                        This final rule incorporates regulatory
                                                  subcontractors must disseminate this                    changes made by the SBA in its final                    This final rule amends FAR 25.302
                                                  nondiscrimination provision, using                      rule which published in the Federal                   and the clause at 52.225–26, both
                                                  language prescribed by the Director of                  Register at 78 FR 61113 on October 2,                 entitled ‘‘Contractors Performing Private
                                                  OFCCP, including incorporating the                      2013, concerning consolidation and                    Security Functions Outside the United
                                                  provision into existing employee                        bundling. SBA’s final rule implements                 States.’’
                                                  manuals or handbooks and posting it.                    sections 1312 and 1313 of the Small                     This rule removes the DoD-unique
                                                  There is no significant impact on small                 Business Jobs Act of 2010 (Pub. L. 111–               requirements, which have been
                                                  entities imposed by the FAR rule.                       240), as well as section 1671 of the                  incorporated in the Defense Federal
                                                                                                          National Defense Authorization Act                    Acquisition Regulations Supplement
                                                  Item IV—Sole Source Contracts for
                                                                                                          (NDAA) for Fiscal Year (FY) 2013 (Pub.                (DFARS). This rule also adds the
                                                  Women-Owned Small Businesses (FAR
                                                                                                          L. 112–239). The FAR final rule adds                  definition of ‘‘full cooperation’’ to FAR
                                                  Case 2015–032)
                                                                                                          coverage on consolidations and                        clause 52.225–26 in order to affirm that
                                                     DoD, GSA, and NASA are adopting as                   reorganizes coverage on bundling at                   the contract clause does not foreclose
                                                  final, with a minor edit, an interim rule               FAR 7.107. Before conducting a                        any contractor rights arising in law, the
                                                  that amends the FAR to implement                        consolidated acquisition estimated to                 FAR, or the terms of the contract when
                                                  regulatory changes made by the Small                    exceed $2,000,000, the Senior                         cooperating with any Government-
                                                  Business Administration (SBA) in its                    Procurement Executive or Chief                        authorized investigation into incidents
                                                  final rule as published in the Federal                  Acquisition Officer must make a written               reported pursuant to the clause.
                                                  Register at 80 FR 55019, on September                   determination that the consolidation is                 This rule will not create any new
                                                  14, 2015. SBA’s final rule implements                   necessary and justified. This rule may                reporting, recordkeeping, or other
                                                  the statutory requirements of paragraph                 have a positive economic impact on any                compliance requirements. The impact of
                                                  (a)(3) of section 825 of the Carl Levin                 small business entity that participates in            this rule on small business is not
                                                  and Howard P. ‘Buck’ McKeon National                    the Federal procurement arena.                        expected to be significant.
                                                  Defense Authorization Act for Fiscal
                                                                                                          Item VII—Amendment Relating to                        Item X—Limitation on Allowable
                                                  Year 2015, Public Law 113–291, which
                                                                                                          Multi-Year Contract Authority for                     Government Contractor Employee
                                                  grants contracting officers the authority
                                                                                                          Acquisition of Property (FAR Case                     Compensation Costs (FAR Case 2014–
                                                  to award sole source contracts to
                                                                                                          2016–006)                                             012)
                                                  economically disadvantaged women-
                                                  owned small business (EDWOSB)                              DoD, GSA, and NASA are amending                       This final rule converts the interim
                                                  concerns and to women-owned small                       FAR subpart 17.1 to implement section                 rule published in the Federal Register at
                                                  business (WOSB) concerns eligible                       811 of the NDAA for FY 2016 (Pub. L.                  79 FR 35865 on June 24, 2014 to a final
                                                  under the WOSB Program. The                             114–92). Section 811 amended                          rule with minor changes including a
                                                  anticipated price, including options,                   subsection (a)(1) of 10 U.S.C. 2306b by               table summarizing the employee
                                                  must not exceed $6.5 million for                        striking ‘‘substantial’’ and inserting                compensation limits and applicability
                                                  manufacturing North American Industry                   ‘‘significant’’. This rule makes                      dates is added at 31.205–6(p); several
                                                  Classification System (NAICS) codes, or                 conforming changes at FAR 17.105–                     paragraphs are reorganized; redundant
                                                  $4 million for other NAICS codes.                       1(b)(1) to state that the head of an                  text is removed; reference links are
                                                     This rule may have a positive                        agency may enter into a multi-year                    added for clarity.
                                                  economic impact on women-owned                          contract for supplies, if the use of such                This final rule amends the Federal
                                                  small businesses.                                       a contract will result in significant                 Acquisition Regulation (FAR) to
                                                                                                          savings of the total estimated costs of               implement section 702 of the Bipartisan
                                                  Item V—Unique Identification of                         carrying out the program through                      Budget Act of 2013. Section 702 revises
                                                  Entities Receiving Federal Awards                       annual contracts. This change applies to              the allowable compensation cost limit
                                                  (FAR Case 2015–022)                                     the DoD, NASA, and the Coast Guard.                   for contractor and subcontractor
                                                     DoD, GSA, and NASA are issuing a                        This final rule is not required to be              employees to be $487,000, as adjusted
                                                  final rule amending the FAR to                          published for public comment, because                 annually to reflect the change in the
                                                  redesignate the terminology for unique                  it addresses an internal decision by the              Employment Cost Index for all workers
                                                  identification of entities receiving                    contracting officer to enter into a multi-            as calculated by the Bureau of Labor
                                                  Federal awards. The change to the FAR                   year contract for supplies if certain                 Statistics. Also, section 702 allows for
                                                  eliminates references to the proprietary                objects are met. These requirements                   the narrowly targeted exceptions to this
                                                  Data Universal Numbering System                         affect only the internal operating                    allowable cost limit for scientists,
                                                  (DUNS®) number, and provides                            procedures of the Government.                         engineers or other specialists, upon an
                                                  appropriate references to the Web site                                                                        agency determination that such
                                                                                                          Item VIII—New Designated Country—
                                                  where information on the unique entity                                                                        exceptions are needed to ensure that the
                                                                                                          Ukraine and Moldova (FAR Case 2016–
asabaliauskas on DSK3SPTVN1PROD with RULES




                                                  identifier used for Federal contractors                                                                       executive agency has continued access
                                                                                                          009)
                                                  will be located. The Government does                                                                          to needed skills and capabilities.
                                                  not intend to move away from the use                      This final rule amends the FAR to add               Because most contracts awarded to
                                                  of the DUNS® number in the short term.                  Ukraine and Moldova as new designated                 small businesses use simplified
                                                  This final rule also establishes                        countries under the World Trade                       acquisition procedures or are awarded
                                                  definitions of ‘‘unique entity identifier’’,            Organization Government Procurement                   on a competitive, fixed-price basis, the
                                                  and ‘‘electronic funds transfer (EFT)                   Agreement (WTO GPA). This final rule                  impact of this compensation limitation
                                                  indicator’’. There is no significant                    has no significant impact on the                      on small businesses will be minimal.


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                                                  67728            Federal Register / Vol. 81, No. 190 / Friday, September 30, 2016 / Rules and Regulations

                                                  Item XI—Technical Amendments                            implement sections of the Consolidated                and felony conviction, such as the
                                                     Editorial changes are made at FAR                    and Further Continuing Appropriations                 Internal Revenue Code (title 26) and the
                                                  1.603–1, 4.1400, 22.805, 23.704, 26.103,                Act, 2015, to prohibit the Federal                    Criminal Code (title 18). Furthermore,
                                                  and 52.234–1.                                           Government from entering into a                       the respondent noted that the FAR
                                                                                                          contract with any corporation having a                already includes Federal tax
                                                    Dated: September 19, 2016.                            delinquent Federal tax liability or a                 delinquency and criminal malfeasance
                                                  William F. Clark,                                       felony conviction under any Federal                   as causes for debarment. The
                                                  Director, Office of Government-wide                     law, unless the agency has considered                 respondent stated that agencies already
                                                  Acquisition Policy, Office of Acquisition               suspension or debarment of the                        reliably utilize suspension and
                                                  Policy, Office of Government-wide Policy.                                                                     debarment processes.
                                                                                                          corporation and has made a
                                                     Federal Acquisition Circular (FAC) 2005–             determination that this further action is                Response: This rule is necessary to
                                                  91 is issued under the authority of the                 not necessary to protect the interests of             implement the requirements of sections
                                                  Secretary of Defense, the Administrator of              the Government.                                       744 and 745 of Division E, title VIII of
                                                  General Services, and the Administrator for                                                                   the Consolidated and Further
                                                  the National Aeronautics and Space                      DATES: Effective: September 30, 2016.
                                                                                                                                                                Continuing Resolution Appropriations
                                                  Administration.                                         FOR FURTHER INFORMATION CONTACT: Ms.
                                                                                                                                                                Act, 2015, as well as section 523 of
                                                     Unless otherwise specified, all Federal              Cecelia L. Davis, Procurement Analyst,
                                                  Acquisition Regulation (FAR) and other                                                                        Division B, title V of the same act
                                                                                                          at 202–219–0202 for clarification of
                                                  directive material contained in FAC 2005–91                                                                   (affects Commerce, Justice, NASA, and
                                                                                                          content. For information pertaining to
                                                  is effective September 30, 2016 except for                                                                    some related agencies). These
                                                                                                          status or publication schedules, contact
                                                  items V, VI, VII, VIII, and IX, which are                                                                     appropriations act restrictions, although
                                                  effective October 31, 2016.                             the Regulatory Secretariat Division at                having some overlap with existing laws,
                                                                                                          202–501–4755. Please cite FAC 2005–                   have specific provisions that are not
                                                     Dated: September 20, 2016.                           91, FAR Case 2015–011.                                identical to existing laws and
                                                  Claire M. Grady,                                        SUPPLEMENTARY INFORMATION:                            regulations, and must be implemented
                                                  Director, Defense Procurement and                       I. Background                                         in order to avoid misuse of appropriated
                                                  Acquisition Policy.                                                                                           funds.
                                                                                                             DoD, GSA, and NASA published an
                                                     Dated: September 20, 2016.                           interim rule in the Federal Register at               2. Meaning of ‘‘Corporation’’
                                                  Jeffrey A. Koses,                                       80 FR 75903 on December 4, 2015, to                      Comment: One respondent requested
                                                  Senior Procurement Executive/Deputy CAO,                implement sections 744 and 745 of                     clarification as to what entities are and
                                                  Office of Acquisition Policy, U.S. General              Division E of the Consolidated and                    are not corporations for the purposes of
                                                  Services Administration.                                Further Continuing Appropriations Act,                this rule. The respondent stated that the
                                                     Dated: September 20, 2016.                           2015 (Pub. L. 113–235) and section 523                term ‘‘corporation’’ could encompass C
                                                  William G. Roets,
                                                                                                          of Division B of the same act. Three                  corporations, S corporations, and
                                                                                                          respondents submitted comments on the                 limited liability corporations (LLCs),
                                                  Acting Assistant Administrator, Office of
                                                  Procurement National Aeronautics and Space
                                                                                                          interim rule.                                         among others. The respondent is
                                                  Administration.                                         II. Discussion and Analysis                           concerned that if the rule applies to
                                                  [FR Doc. 2016–23193 Filed 9–29–16; 8:45 am]                                                                   LLCs and S corporations, through which
                                                                                                             The Civilian Agency Acquisition                    tax liability falls at the individual rather
                                                  BILLING CODE 6820–EP–P
                                                                                                          Council and the Defense Acquisition                   than the corporate level, that failure of
                                                                                                          Regulations Council (the Councils)                    one shareholder to pay taxes could
                                                                                                          reviewed the public comments in the                   adversely affect all shareholders.
                                                  DEPARTMENT OF DEFENSE
                                                                                                          development of the final rule. A                      Likewise, the respondent is concerned
                                                  GENERAL SERVICES                                        discussion of the comments are                        how the rule would be applied if a
                                                  ADMINISTRATION                                          provided as follows:                                  shareholder or member of the entity is
                                                                                                          A. Summary of Public Comments                         convicted of a felony.
                                                  NATIONAL AERONAUTICS AND                                                                                         The respondent is also concerned
                                                  SPACE ADMINISTRATION                                       There were no changes made in the                  about how this rule applies to a joint
                                                                                                          final rule as a result of the three public            venture and teaming. First, can a
                                                  48 CFR Parts 1, 4, 9, 12, and 52                        comments.                                             corporation avoid disclosure of a felony
                                                                                                          B. Analysis of Public Comments                        conviction if it becomes a member of a
                                                  [FAC 2005–91; FAR Case 2015–011; Item
                                                  I; Docket No. 2015–0011, Sequence No. 1]
                                                                                                                                                                joint venture? Second, if the joint
                                                                                                          1. Need for the Rule                                  venture is a corporate entity, are the
                                                  RIN 9000–AN05                                              Comment: Two respondents                           underlying entities that make up the
                                                                                                          expressed support for the interim rule.               joint venture required to disclose tax
                                                  Federal Acquisition Regulation;                         According to the respondents, this rule               delinquencies and felonies?
                                                  Prohibition on Contracting With                         will facilitate more rigorous scrutiny of                Response: No change is made. The
                                                  Corporations With Delinquent Taxes or                   companies with a recent Federal                       term ‘‘corporation’’ is used throughout
                                                  a Felony Conviction                                     conviction or unpaid Federal taxes and                the FAR without definition. If a term is
                                                  AGENCY:  Department of Defense (DoD),                   will help ensure that Federal contractors             used in the FAR without definition,
                                                  General Services Administration (GSA),                  conduct themselves with the highest                   then it has the standard dictionary
asabaliauskas on DSK3SPTVN1PROD with RULES




                                                  and National Aeronautics and Space                      degree of integrity and honesty.                      definition. A corporation is a legal
                                                  Administration (NASA).                                     Response: Noted.                                   entity that is separate and distinct from
                                                  ACTION: Final rule.                                        Comment: The other respondent said                 the entities that own, manage, or control
                                                                                                          the rule is unnecessary, given the                    it. It is organized and incorporated
                                                  SUMMARY:  DoD, GSA, and NASA have                       existing statutory and regulatory                     under the jurisdictional authority of a
                                                  adopted as final, without changes, an                   framework. This respondent noted that                 governmental body, such as a State or
                                                  interim rule amending the Federal                       tax and criminal statutes already                     the District of Columbia. The law does
                                                  Acquisition Regulation (FAR) to                         include penalties for tax delinquency                 not specify any particular type of


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Document Created: 2018-02-09 13:33:29
Document Modified: 2018-02-09 13:33:29
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 interim and 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 2005-91 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 67726 

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