82_FR_4717 82 FR 4708 - Federal Acquisition Regulation; Federal Acquisition Circular 2005-95; Introduction

82 FR 4708 - Federal Acquisition Regulation; Federal Acquisition Circular 2005-95; Introduction

DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

Federal Register Volume 82, Issue 9 (January 13, 2017)

Page Range4708-4709
FR Document2016-31494

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) 2005-95. 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 82 Issue 9 (Friday, January 13, 2017) 
[Federal Register Volume 82, Number 9 (Friday, January 13, 2017)]
[Rules and Regulations]
[Pages 4708-4709]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-31494]



[[Page 4707]]

Vol. 82

Friday,

No. 9

January 13, 2017

Part V





Department of Defense

General Services Administration

National Aeronautics and Space Administration





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48 CFR Chapter 1





Federal Acquisition Regulation; Federal Acquisition Circular 2005-95; 
Introduction; Uniform Use of Line Items; Acquisition Threshold for 
Special Emergency Procurement Authority; Contractor Employee Internal 
Confidentiality Agreements or Statements; Contracts Under the Small 
Business Administration 8(a) Program; Prohibition on Reimbursement for 
Congressional Investigations and Inquiries; and Federal Acquisition 
Circular 2005-95; Small Entity Compliance Guide; Final Rules

Federal Register / Vol. 82 , No. 9 / Friday, January 13, 2017 / Rules 
and Regulations

[[Page 4708]]


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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. 9]


Federal Acquisition Regulation; Federal Acquisition Circular 
2005-95; Introduction

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

ACTION: Summary presentation of final rules.

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SUMMARY: This document summarizes the Federal Acquisition Regulation 
(FAR) rules agreed to by the Civilian Agency Acquisition Council and 
the Defense Acquisition Regulations Council (Councils) in this Federal 
Acquisition Circular (FAC) 2005-95. 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 2005-95 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 2005-95
----------------------------------------------------------------------------------------------------------------
                  Item                                Subject                FAR Case            Analyst
----------------------------------------------------------------------------------------------------------------
I.......................................  Uniform Use of Line Items......     2013-014  Francis.
II......................................  Acquisition Threshold for           2016-004  Francis.
                                           Special Emergency Procurement
                                           Authority.
III.....................................  Contractor Employee Internal        2015-012  Davis.
                                           Confidentiality Agreements or
                                           Statements.
IV......................................  Contracts Under the Small           2012-022  Uddowla.
                                           Business Administration 8(a)
                                           Program.
V.......................................  Prohibition on Reimbursement        2015-016  Delgado.
                                           for Congressional
                                           Investigations and Inquiries.
----------------------------------------------------------------------------------------------------------------


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 2005-95 amends the FAR as follows:

Item I--Uniform Use of Line Items (FAR Case 2013-014)

    This final rule amends the FAR to establish standards for the 
uniform use of line items in Federal procurement. These standards are 
designed to improve the accuracy, traceability, and usability of 
procurement data. The implementation of these standards will facilitate 
the identification and traceability of spending from appropriation 
through expenditure, supporting automated collection of information 
using key identifiers. The implementation date for FAR 4.1002 through 
4.1008 will be October 1, 2019.
    The requirements in the rule have the potential to impact any 
entity, small or large, that does business with the Federal Government 
because the proposed rule would apply to purchases of items, including 
commercial items and commercially available off-the-shelf items, and 
purchases under the simplified acquisition threshold. Any small 
business that contracts with a Federal agency could be impacted to at 
least some extent.

Item II--Acquisition Threshold for Special Emergency Procurement 
Authority (FAR Case 2016-004)

    This final rule amends the FAR by increasing the simplified 
acquisition threshold (SAT) for special emergency procurement authority 
from $300,000 to $750,000 (within the United States) and from $1 
million to $1.5 million (outside the United States) for acquisitions of 
supplies or services that, as determined by the head of the agency, are 
to be used to support a contingency operation or to facilitate defense 
against or recovery from nuclear, biological, chemical, or radiological 
attack. This change implements Section 816 of the National Defense 
Authorization Act for Fiscal Year 2016 (Pub. L. 114-92). This rule 
provides contracting officers with more flexibility when contracting in 
support of contingency operations.
    The rule is not anticipated to have a significant economic impact 
on small business entities, because the rule raises the SAT for special 
emergency procurements, an arena in which a smaller percentage of small 
businesses participate, as compared to larger businesses. This final 
rule does not place any new requirements on small entities.

Item III--Contractor Employee Internal Confidentiality Agreements or 
Statements (FAR Case 2015-012)

    This final rule revises the FAR to implement section 743 of 
division E, title VII, of the Consolidated and Further Continuing 
Appropriations Act, 2015 (Pub. L. 113-235) and successor provisions in 
subsequent appropriations acts. Section 743 prohibits the use of funds 
appropriated or otherwise made available by Division E or any other 
act, for a contract with an entity that requires employees and 
subcontractors of such entity to sign internal confidentiality 
agreements or statements prohibiting or otherwise restricting such 
employees or subcontractors from lawfully reporting waste, fraud, or 
abuse, to a designated investigative or law enforcement representative 
of a Federal department or agency authorized to receive such 
information (e.g., agency office of the Inspector General). This rule 
is not expected to have a significant impact on small entities 
contracting with the Government.

Item IV--Contracts Under the Small Business Administration 8(a) Program 
(FAR Case 2012-022)

    This final rule amends the Federal Acquisition Regulation (FAR) to 
implement clarifications made by the Small Business Administration in 
its final rule, which published in the Federal Register at 76 FR 8222 
on February 11, 2011. This final rule clarifies in the FAR the 
procedures and requirements used when contracting under the 8(a) 
program. Clarifications include the evaluation, offering, and 
acceptance process, procedures for acquiring SBA's consent to procure 
an

[[Page 4709]]

8(a) requirement outside the 8(a) program, and the impact of exiting 
the 8(a) program in terms of the firm's ability to receive future 8(a) 
requirements and its current contractual commitments.
    This final rule does not place any new requirements, financial or 
otherwise, on small entities, and serves mainly to provide more 
explicit guidance to Federal contracting officials.

Item V--Prohibition on Reimbursement for Congressional Investigations 
and Inquiries (FAR Case 2015-016)

    This rule amends the FAR to implement section 857 of the Carl Levin 
and Howard P. `Buck' McKeon National Defense Authorization Act for 
Fiscal Year 2015. Section 857 imposes additional requirements relative 
to the allowability of costs incurred by a contractor in connection 
with a congressional investigation or inquiry. Contracting officers 
need to be aware of these new restrictions on certain costs, which 
cannot be charged under contracts. Although small businesses subject to 
FAR part 31 will need to maintain accounting records, this rule does 
not place any new requirements on small entities.

    Dated: December 21, 2016.
William F. Clark,
Director, Office of Government-wide Acquisition Policy, Office of 
Acquisition Policy, Office of Government-wide Policy.

    Federal Acquisition Circular (FAC) 2005-95 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 2005-95 is 
effective January 13, 2017 except for item III, which is effective 
January 19, 2017.

    Dated: December 21, 2016.

Claire M. Grady,

Director, Defense Procurement and Acquisition Policy.

    Dated: December 21, 2016.

William F. Clark,

Acting, Senior Procurement Executive, Office of Acquisition Policy, 
U.S. General Services Administration.

    Dated: December 19, 2016.

William P. McNally,

Assistant Administrator, Office of Procurement National Aeronautics 
and Space Administration.

[FR Doc. 2016-31494 Filed 1-12-17; 8:45 am]
BILLING CODE 6820-EP-P

4708 Federal Register / Vol. 82, No. 9 / Friday, January 13, 2017 / Rules and Regulations DEPARTMENT OF DEFENSE and National Aeronautics and Space DATES: For effective dates see the Administration (NASA). separate documents, which follow. GENERAL SERVICES ADMINISTRATION ACTION: Summary presentation of final FOR FURTHER INFORMATION CONTACT: The rules. analyst whose name appears in the table NATIONAL AERONAUTICS AND below in relation to the FAR case. SPACE ADMINISTRATION SUMMARY: This document summarizes Please cite FAC 2005–95 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– 9] Council (Councils) in this Federal 501–4755. Acquisition Circular (FAC) 2005–95. A Federal Acquisition Regulation; Federal Acquisition Circular 2005–95; 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 2005–95 Item Subject FAR Case Analyst I ................................... Uniform Use of Line Items ........................................................................................................ 2013–014 Francis. II .................................. Acquisition Threshold for Special Emergency Procurement Authority .................................... 2016–004 Francis. III ................................. Contractor Employee Internal Confidentiality Agreements or Statements ............................... 2015–012 Davis. IV ................................ Contracts Under the Small Business Administration 8(a) Program ......................................... 2012–022 Uddowla. V ................................. Prohibition on Reimbursement for Congressional Investigations and Inquiries ...................... 2015–016 Delgado. SUPPLEMENTARY INFORMATION: Item II—Acquisition Threshold for Further Continuing Appropriations Act, Summaries for each FAR rule follow. Special Emergency Procurement 2015 (Pub. L. 113–235) and successor For the actual revisions and/or Authority (FAR Case 2016–004) provisions in subsequent appropriations amendments made by these rules, refer This final rule amends the FAR by acts. Section 743 prohibits the use of to the specific item numbers and increasing the simplified acquisition funds appropriated or otherwise made subjects set forth in the documents threshold (SAT) for special emergency available by Division E or any other act, following these item summaries. FAC procurement authority from $300,000 to for a contract with an entity that 2005–95 amends the FAR as follows: $750,000 (within the United States) and requires employees and subcontractors from $1 million to $1.5 million (outside of such entity to sign internal Item I—Uniform Use of Line Items confidentiality agreements or statements the United States) for acquisitions of (FAR Case 2013–014) supplies or services that, as determined prohibiting or otherwise restricting such by the head of the agency, are to be used employees or subcontractors from This final rule amends the FAR to lawfully reporting waste, fraud, or establish standards for the uniform use to support a contingency operation or to facilitate defense against or recovery abuse, to a designated investigative or of line items in Federal procurement. law enforcement representative of a These standards are designed to from nuclear, biological, chemical, or radiological attack. This change Federal department or agency improve the accuracy, traceability, and authorized to receive such information implements Section 816 of the National usability of procurement data. The (e.g., agency office of the Inspector Defense Authorization Act for Fiscal implementation of these standards will General). This rule is not expected to Year 2016 (Pub. L. 114–92). This rule facilitate the identification and provides contracting officers with more have a significant impact on small traceability of spending from flexibility when contracting in support entities contracting with the appropriation through expenditure, of contingency operations. Government. supporting automated collection of The rule is not anticipated to have a Item IV—Contracts Under the Small information using key identifiers. The significant economic impact on small Business Administration 8(a) Program implementation date for FAR 4.1002 business entities, because the rule raises (FAR Case 2012–022) through 4.1008 will be October 1, 2019. the SAT for special emergency The requirements in the rule have the procurements, an arena in which a This final rule amends the Federal potential to impact any entity, small or smaller percentage of small businesses Acquisition Regulation (FAR) to participate, as compared to larger implement clarifications made by the large, that does business with the businesses. This final rule does not Small Business Administration in its Federal Government because the place any new requirements on small final rule, which published in the proposed rule would apply to purchases asabaliauskas on DSK3SPTVN1PROD with RULES entities. Federal Register at 76 FR 8222 on of items, including commercial items February 11, 2011. This final rule and commercially available off-the-shelf Item III—Contractor Employee Internal clarifies in the FAR the procedures and items, and purchases under the Confidentiality Agreements or requirements used when contracting simplified acquisition threshold. Any Statements (FAR Case 2015–012) under the 8(a) program. Clarifications small business that contracts with a This final rule revises the FAR to include the evaluation, offering, and Federal agency could be impacted to at implement section 743 of division E, acceptance process, procedures for least some extent. title VII, of the Consolidated and acquiring SBA’s consent to procure an VerDate Sep<11>2014 20:34 Jan 12, 2017 Jkt 241001 PO 00000 Frm 00002 Fmt 4701 Sfmt 4700 E:\FR\FM\13JAR4.SGM 13JAR4

Federal Register / Vol. 82, No. 9 / Friday, January 13, 2017 / Rules and Regulations 4709 8(a) requirement outside the 8(a) DEPARTMENT OF DEFENSE appropriation through expenditure, program, and the impact of exiting the supporting automated collection of 8(a) program in terms of the firm’s GENERAL SERVICES information using key identifiers. Three ability to receive future 8(a) ADMINISTRATION respondents submitted comments on the requirements and its current contractual proposed rule. commitments. NATIONAL AERONAUTICS AND II. Discussion and Analysis This final rule does not place any new SPACE ADMINISTRATION The Civilian Agency Acquisition requirements, financial or otherwise, on Council and the Defense Acquisition small entities, and serves mainly to 48 CFR Parts 2, 3, 4, 5, 7, 8, 9, 12, 14, 15, 16, 17, 27, 32, 42, 48, 49, and 52 Regulations Council (the Councils) provide more explicit guidance to reviewed the public comments in the Federal contracting officials. [FAC 2005–95; FAR Case 2013–014; Item development of the final rule. A I; Docket No. 2013–0014, Sequence No. 1] Item V—Prohibition on Reimbursement discussion of the comments and the for Congressional Investigations and RIN 9000–AM73 changes made to the rule as a result of Inquiries (FAR Case 2015–016) those comments are provided as Federal Acquisition Regulation; follows: This rule amends the FAR to Uniform Use of Line Items implement section 857 of the Carl Levin A. Summary of Significant Changes AGENCY: Department of Defense (DoD), From the Proposed Rule and Howard P. ‘Buck’ McKeon National General Services Administration (GSA), 1. The rule provides agencies time to Defense Authorization Act for Fiscal and National Aeronautics and Space transition their information systems and Year 2015. Section 857 imposes Administration (NASA). appropriately train the workforce. additional requirements relative to the ACTION: Final rule. Accordingly, agencies have until allowability of costs incurred by a contractor in connection with a SUMMARY: DoD, GSA, and NASA are October 1, 2019, to apply the congressional investigation or inquiry. issuing a final rule amending the requirements of FAR 4.1002 through Contracting officers need to be aware of 4.1008 of subpart 4.10. Federal Acquisition Regulation (FAR) to these new restrictions on certain costs, 2. The term ‘‘line item unique establish uniform use of line items in which cannot be charged under identifier’’ was removed and replaced Federal procurement. with ‘‘line item number’’ for consistency contracts. Although small businesses DATES: Effective: January 13, 2017. In with the current version of the FAR text. subject to FAR part 31 will need to order to provide agencies with time to The term ‘‘unique’’ is no longer maintain accounting records, this rule transition their information systems, necessary due to changes made by the does not place any new requirements on agencies have until October 1, 2019, to Uniform Procurement Identification rule small entities. apply the requirements of FAR 4.1002 (FAR Case 2012–023) published in the Dated: December 21, 2016. through 4.1008 of subpart 4.10. Federal Register at 79 FR 61739 on William F. Clark, FOR FURTHER INFORMATION CONTACT: Ms. October 14, 2014. Director, Office of Government-wide Camara Francis, Procurement Analyst, Acquisition Policy, Office of Acquisition at 202–550–0935 for clarification of B. Analysis of Public Comments Policy, Office of Government-wide Policy. content. For information pertaining to 1. Alternative Line Item Structure Federal Acquisition Circular (FAC) status or publication schedules, contact Comment: One respondent suggested 2005–95 is issued under the authority of the Regulatory Secretariat Division at removing text that would allow offerors the Secretary of Defense, the 202–501–4755. Please cite FAC 2005– to propose their own alternative line Administrator of General Services, and 95, FAR Case 2013–014. item structure, because this would be the Administrator for the National SUPPLEMENTARY INFORMATION: counterproductive to the goal of Aeronautics and Space Administration. I. Background standardized reporting. Unless otherwise specified, all Response: The language on alternative DoD, GSA, and NASA published a line items was intended to allow Federal Acquisition Regulation (FAR) proposed rule in the Federal Register at and other directive material contained flexibility, consistent with the 79 FR 45408 on August 5, 2014, to requirements at FAR subpart 4.10. To in FAC 2005–95 is effective January 13, establish uniform use of line items in 2017 except for item III, which is clarify that the Government is not Federal procurement. The uniform line requesting contractors to create line effective January 19, 2017. item structure is designed to improve items inconsistent with the rule, the Dated: December 21, 2016. the accuracy, traceability, and usability clause is renamed ‘‘Alternative Line Claire M. Grady, of procurement data. The need for this Item Proposal’’ and the explanatory text Director, Defense Procurement and rule stems from the lack of access to will no longer use the term ‘‘structure,’’ Acquisition Policy. reliable and comprehensive data on as this seemed to be the cause of some Dated: December 21, 2016. Federal procurement actions that is confusion. essential to management and program William F. Clark, 2. Accounting Classification Citation decisions that result in delivering Acting, Senior Procurement Executive, Office services to taxpayers in the most Comment: One respondent asked if of Acquisition Policy, U.S. General Services efficient and effective manner. Lack of each subline item is expected to have its Administration. asabaliauskas on DSK3SPTVN1PROD with RULES standards for identifying and tracing tax own accounting classification citation. Dated: December 19, 2016. dollars across the acquisition Response: It is not a requirement for William P. McNally, contributes to duplication in spending, each subline item to have its own Assistant Administrator, Office of gaps in reporting, and inefficiencies in accounting classification citation. Procurement National Aeronautics and management decisions. The However, each deliverable subline item Space Administration. implementation of these standards will is expected to have its own accounting [FR Doc. 2016–31494 Filed 1–12–17; 8:45 am] facilitate the identification and classification citation. This should not BILLING CODE 6820–EP–P traceability of spending from be construed to mean that the same VerDate Sep<11>2014 20:34 Jan 12, 2017 Jkt 241001 PO 00000 Frm 00003 Fmt 4701 Sfmt 4700 E:\FR\FM\13JAR4.SGM 13JAR4


Document Created: 2017-01-13 02:45:19
Document Modified: 2017-01-13 02:45:19
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionSummary presentation of final rules.
DatesFor effective dates see the separate documents, which follow.
ContactThe analyst whose name appears in the table below in relation to the FAR case. Please cite FAC 2005-95 and the specific FAR case number. For information pertaining to status or publication schedules, contact the Regulatory Secretariat Division at 202-501-4755.
FR Citation82 FR 4708 
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