83 FR 19150 - Federal Acquisition Regulation: Federal Acquisition Circular 2005-98; Small Entity Compliance Guide

DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

Federal Register Volume 83, Issue 84 (May 1, 2018)

Page Range		19150-19151
FR Document		2018-09171

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) 2005-98, 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 2005-98, which precedes this document. These documents are also available via the internet at http:// www.regulations.gov.

Federal Register, Volume 83 Issue 84 (Tuesday, May 1, 2018)

[Federal Register Volume 83, Number 84 (Tuesday, May 1, 2018)]
[Rules and Regulations]
[Pages 19150-19151]
From the Federal Register Online [www.thefederalregister.org]
[FR Doc No: 2018-09171]

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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Chapter 1

[Docket No. FAR 2018-0001, Sequence No. 2]

Federal Acquisition Regulation: Federal Acquisition Circular
2005-98; 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,

[[Page 19151]]

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) 2005-98, 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 2005-98, which precedes this document.
These documents are also available via the internet at http://www.regulations.gov.

DATES: May 1, 2018.

FOR FURTHER INFORMATION CONTACT: For clarification of content, contact
the analyst whose name appears in the table below. Please cite FAC
2005-98 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 2005-98
----------------------------------------------------------------------------------------------------------------
Item Subject FAR case Analyst
----------------------------------------------------------------------------------------------------------------
I............................ Task- and Delivery-Order Protests 2017-007 Gray.
II........................... Duties of Office of Small and 2017-008 Fry.
Disadvantaged Business
Utilization.
III.......................... Liquidated Damages Rate 2017-004 Delgado.
Adjustment.
*IV.......................... Audit of Settlement Proposals.... 2015-039 Delgado.
----------------------------------------------------------------------------------------------------------------

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 2005-98 amends the FAR as follows:

Item I--Task- and Delivery-Order Protests (FAR Case 2017-007)

This final rule amends the FAR to implement section 835 of the
National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2017
(Pub. L. 114-328). Section 835 amends 10 U.S.C. 2304c(e)(1)(B) to raise
the threshold for task- and delivery-order protests from $10 million to
$25 million (applicable to DoD, NASA, and the Coast Guard). The section
also amends 41 U.S.C. 4106(f) to repeal the sunset date, which was also
previously repealed by the GAO Civilian Task and Delivery Order Protest
Authority Act of 2016 (Pub. L. 114-260). There will be an
unquantifiable impact on offerors (including small businesses) that
lose the right to protest awards of task or delivery orders valued
between $10 million and $25 million, but the impact is expected to be
de minimis, because there are very few protests of procurements in that
dollar range.

Item II--Duties of Office of Small and Disadvantaged Business
Utilization (FAR Case 2017-008)

This final rule amends the FAR to reflect additional duties for
agencies' Office of Small and Disadvantaged Business Utilization, or
for DoD's Office of Small Business Programs, which were added to
section 15(k) of the Small Business Act by the NDAA for FY 2017. This
rule only provides information regarding the internal operating
procedures of the Government.

Item III--Liquidated Damages Rate Adjustment (FAR Case 2017-004)

This final rule amends the FAR to adjust for inflation the rate of
liquidated damages assessed or enforced by Department of Labor (DOL)
regulations for violations of the overtime provisions of the Contract
Work Hours and Safety Standards Act. The FAR rule implements DOL's
interim final rule published in the Federal Register at 81 FR 43430 on
July 1, 2016, DOL's final rule published in the Federal Register at 82
FR 5373 on January 18, 2017, and subsequent adjustments for inflation
pursuant to the Federal Civil Penalties Inflation Adjustment Act of
1990, as amended by the Federal Civil Penalties Inflation Adjustment
Act Improvements Act of 2015 (section 701 of Pub. L. 114-74) (28 U.S.C.
2461 Note). There is no significant impact on small entities imposed by
the FAR rule.

Item IV--Audit of Settlement Proposals (FAR Case 2015-039)

This final rule amends the FAR to raise the dollar threshold
requirement for the audit of prime contract settlement proposals and
subcontract settlements from $100,000 to $750,000 to align with the
threshold in FAR 15.403-4(a)(1) for obtaining certified cost or pricing
data.
The requirements in the rule will not have a significant economic
impact on a substantial number of small entities. Since the rule raises
the audit threshold, even fewer small businesses will be subject to
audits of their termination settlement proposals resulting in a
reduction of time spent to complete termination settlements.

Dated: April 25, 2018.
William F. Clark,
Director, Office of Government-wide Acquisition Policy, Office of
Acquisition Policy, Office of Government-wide Policy.
[FR Doc. 2018-09171 Filed 4-30-18; 8:45 am]
BILLING CODE 6820-EP-P

19150 Federal Register / Vol. 83, No. 84 / Tuesday, May 1, 2018 / Rules and Regulations

III. Expected Cost Savings forth in FAR 15.403–4(a)(1), which is recommendations. The TCO may submit
currently $750,000. The rule is necessary to settlement proposals of less than the
This final rule impacts contractors reduce the administrative burdens associated
subject to audits of their termination threshold for obtaining certified cost or
with termination settlement proposals.
settlement proposals. The rule is pricing data to the audit agency.
No public comments were received in
administrative in nature, because it response to the initial regulatory flexibility Referrals shall indicate any specific
raises a threshold. This rule eliminates analysis. information or data that the TCO
termination settlements audits between DoD, GSA, and NASA do not expect this considers relevant and shall include
$100,000 and the threshold for rule to have a significant economic impact on facts and circumstances that will assist
a substantial number of small entities within the audit agency in performing its
obtaining certified cost or pricing data,
the meaning of the Regulatory Flexibility Act, function. The audit agency shall
currently $750,000. Contractors will 5 U.S.C. 601, et seq. Since the rule raises the
save costs associated with the develop requested information and may
audit threshold, even fewer small businesses
preparation and support for the make any further accounting reviews it
will be subject to audits of their termination
termination settlement audits. This will settlement proposals. It is estimated that an considers appropriate. After its review,
also enable faster final settlement average of 4 small entities per year will be the audit agency shall submit written
payments to contractors, thereby relieved from the requirements of supporting comments and recommendations to the
improving contractor cash flow. an audit of a contract settlement proposal, TCO. When a formal examination of
which is a minute fraction of all contracts settlement proposals valued under the
IV. Applicability to Contracts at or awarded to small businesses in a typical year. threshold for obtaining certified cost or
Below the Simplified Acquisition The rule imposes no reporting, pricing data is not warranted, the TCO
Threshold and for Commercial Items, recordkeeping, or other information
will perform or have performed a desk
Including Commercially Available Off- collection requirements.
There are no known significant alternatives review and include a written summary
the-Shelf Items to the rule. The impact of this rule on small of the review in the termination case
This rule does not add any new business is not expected to be significant. file.
solicitation provisions or clauses, or (b) The TCO shall refer subcontract
Interested parties may obtain a copy
impact any existing provisions or settlements received for approval or
of the FRFA from the Regulatory
clauses. ratification to the appropriate audit
Secretariat Division. The Regulatory
agency for review and recommendations
V. Executive Orders 12866 and 13563 Secretariat Division has submitted a
when—
copy of the FRFA to the Chief Counsel (1) The amount exceeds the threshold
Executive Orders (E.O.s) 12866 and
for Advocacy of the Small Business for obtaining certified cost or pricing
13563 direct agencies to assess all costs
Administration. data; or
and benefits of available regulatory
alternatives and, if regulation is VIII. Paperwork Reduction Act (2) The TCO determines that a
necessary, to select regulatory This rule does not contain any complete or partial accounting review is
approaches that maximize net benefits information collection requirements that advisable. The audit agency shall
(including potential economic, require the approval of the Office of submit written comments and
environmental, public health and safety Management and Budget under the recommendations to the TCO. The
effects, distributive impacts, and Paperwork Reduction Act (44 U.S.C. review by the audit agency does not
equity). E.O. 13563 emphasizes the chapter 35). relieve the prime contractor or higher
importance of quantifying both costs tier subcontractor of the responsibility
and benefits, of reducing costs, of List of Subjects in 48 CFR Part 49 for performing an accounting review.
harmonizing rules, and of promoting Government procurement. * * * * *
flexibility. This is not a significant Dated: April 25, 2018.
[FR Doc. 2018–09169 Filed 4–30–18; 8:45 am]
regulatory action and, therefore, was not BILLING CODE 6820–EP–P
William F. Clark,
subject to review under section 6(b) of
E.O. 12866, Regulatory Planning and Director, Office of Government-wide
Acquisition Policy, Office of Acquisition
Review, dated September 30, 1993. This DEPARTMENT OF DEFENSE
Policy, Office of Government-wide Policy.
rule is not a major rule under 5 U.S.C.
804. Therefore, DoD, GSA, and NASA GENERAL SERVICES
amend 48 CFR part 49 as set forth ADMINISTRATION
VI. Executive Order 13771 below:
Pursuant to E.O. 13771, this rule is a NATIONAL AERONAUTICS AND
deregulatory action. Information on the PART 49—TERMINATION OF SPACE ADMINISTRATION
expected cost savings of this action can CONTRACTS
be found in section III of the preamble. ■ 1. The authority citation for part 49 48 CFR Chapter 1
VII. Regulatory Flexibility Act continues to read as follows: [Docket No. FAR 2018–0001, Sequence
Authority: 40 U.S.C. 121(c); 10 U.S.C. No. 2]
DoD, GSA, and NASA have prepared
a final regulatory flexibility analysis chapter 137; and 51 U.S.C. 20113.
Federal Acquisition Regulation:
(FRFA) consistent with the Regulatory ■ 2. Amend section 49.107 by revising Federal Acquisition Circular 2005–98;
Flexibility Act, 5 U.S.C. 601, et seq. The paragraphs (a) and (b) to read as follows: Small Entity Compliance Guide
FRFA is summarized as follows:
49.107 Audit of prime contract settlement AGENCY: Department of Defense (DoD),
This final rule amends FAR 49.107, Audit proposals and subcontract settlements.
amozie on DSK30RV082PROD with RULES2

of prime contract settlement proposals and
General Services Administration (GSA),
(a) The TCO shall refer each prime and National Aeronautics and Space
subcontract settlements, to raise the dollar
threshold for the audit of prime contract
contractor settlement proposal valued at Administration (NASA).
settlement proposals and subcontract or above the threshold for obtaining ACTION: Small Entity Compliance Guide.
settlements submitted in the event of contract certified cost or pricing data set forth in
termination from $100,000 to the threshold FAR 15.403–4(a)(1) to the appropriate SUMMARY: This document is issued
for obtaining certified cost or pricing data set audit agency for review and under the joint authority of DOD, GSA,

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Federal Register / Vol. 83, No. 84 / Tuesday, May 1, 2018 / Rules and Regulations 19151

and NASA. This Small Entity asterisk (*) next to a rule indicates that FOR FURTHER INFORMATION CONTACT: For
Compliance Guide has been prepared in a regulatory flexibility analysis has been clarification of content, contact the
accordance with section 212 of the prepared. Interested parties may obtain analyst whose name appears in the table
Small Business Regulatory Enforcement further information regarding these below. Please cite FAC 2005–98 and the
Fairness Act of 1996. It consists of a rules by referring to FAC 2005–98, FAR case number. For information
summary of the rules appearing in which precedes this document. These pertaining to status or publication
Federal Acquisition Circular (FAC) documents are also available via the schedules, contact the Regulatory
2005–98, which amends the Federal internet at http://www.regulations.gov. Secretariat Division at 202–501–4755.
Acquisition Regulation (FAR). An DATES: May 1, 2018.

RULES LISTED IN FAC 2005–98
Item Subject FAR case Analyst

I .................... Task- and Delivery-Order Protests ............................................................................................... 2017–007 Gray.
II ................... Duties of Office of Small and Disadvantaged Business Utilization .............................................. 2017–008 Fry.
III .................. Liquidated Damages Rate Adjustment ......................................................................................... 2017–004 Delgado.
*IV ................ Audit of Settlement Proposals ....................................................................................................... 2015–039 Delgado.

SUPPLEMENTARY INFORMATION: Item II—Duties of Office of Small and Act of 2015 (section 701 of Pub. L. 114–
Summaries for each FAR rule follow. Disadvantaged Business Utilization 74) (28 U.S.C. 2461 Note). There is no
For the actual revisions and/or (FAR Case 2017–008) significant impact on small entities
amendments made by these rules, refer This final rule amends the FAR to imposed by the FAR rule.
to the specific item numbers and reflect additional duties for agencies’
subjects set forth in the documents Item IV—Audit of Settlement Proposals
Office of Small and Disadvantaged (FAR Case 2015–039)
following these item summaries. FAC Business Utilization, or for DoD’s Office
2005–98 amends the FAR as follows: of Small Business Programs, which were This final rule amends the FAR to
Item I—Task- and Delivery-Order added to section 15(k) of the Small raise the dollar threshold requirement
Protests (FAR Case 2017–007) Business Act by the NDAA for FY 2017. for the audit of prime contract
This rule only provides information settlement proposals and subcontract
This final rule amends the FAR to settlements from $100,000 to $750,000
regarding the internal operating
implement section 835 of the National to align with the threshold in FAR
procedures of the Government.
Defense Authorization Act (NDAA) for 15.403–4(a)(1) for obtaining certified
Fiscal Year (FY) 2017 (Pub. L. 114–328). Item III—Liquidated Damages Rate cost or pricing data.
Section 835 amends 10 U.S.C. Adjustment (FAR Case 2017–004)
2304c(e)(1)(B) to raise the threshold for The requirements in the rule will not
This final rule amends the FAR to have a significant economic impact on
task- and delivery-order protests from adjust for inflation the rate of liquidated
$10 million to $25 million (applicable to a substantial number of small entities.
damages assessed or enforced by Since the rule raises the audit threshold,
DoD, NASA, and the Coast Guard). The Department of Labor (DOL) regulations
section also amends 41 U.S.C. 4106(f) to even fewer small businesses will be
for violations of the overtime provisions subject to audits of their termination
repeal the sunset date, which was also of the Contract Work Hours and Safety
previously repealed by the GAO settlement proposals resulting in a
Standards Act. The FAR rule reduction of time spent to complete
Civilian Task and Delivery Order Protest implements DOL’s interim final rule
Authority Act of 2016 (Pub. L. 114–260). termination settlements.
published in the Federal Register at 81
There will be an unquantifiable impact FR 43430 on July 1, 2016, DOL’s final Dated: April 25, 2018.
on offerors (including small businesses) rule published in the Federal Register at William F. Clark,
that lose the right to protest awards of 82 FR 5373 on January 18, 2017, and Director, Office of Government-wide
task or delivery orders valued between subsequent adjustments for inflation Acquisition Policy, Office of Acquisition
$10 million and $25 million, but the pursuant to the Federal Civil Penalties Policy, Office of Government-wide Policy.
impact is expected to be de minimis, Inflation Adjustment Act of 1990, as [FR Doc. 2018–09171 Filed 4–30–18; 8:45 am]
because there are very few protests of amended by the Federal Civil Penalties BILLING CODE 6820–EP–P
procurements in that dollar range. Inflation Adjustment Act Improvements
amozie on DSK30RV082PROD with RULES2

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Document Created: 2018-05-01 00:24:41
Document Modified: 2018-05-01 00:24:41

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Rules and Regulations
Action		Small Entity Compliance Guide.
Dates		May 1, 2018.
Contact		For clarification of content, contact the analyst whose name appears in the table below. Please cite FAC 2005-98 and the FAR case number. For information pertaining to status or publication schedules, contact the Regulatory Secretariat Division at 202-501-4755.
FR Citation		83 FR 19150

83 FR 19150 - Federal Acquisition Regulation: Federal Acquisition Circular 2005-98; Small Entity Compliance Guide

DEPARTMENT OF DEFENSEGENERAL SERVICES ADMINISTRATIONNATIONAL AERONAUTICS AND SPACE ADMINISTRATION

Federal Register Volume 83, Issue 84 (May 1, 2018)

DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION