Federal Acquisition Circular 90-44; Introduction

Federal Acquisition Circular 90-44 amends the Federal Acquisition Regulation (FAR) as specified below:

------------------------------------------------------------------------ Item Subject FAR case Analyst ------------------------------------------------------------------------ I............ Automatic Data 96-010 Olson Processing Equipment Leasing Costs (Interim). II........... Major System 96-322 O'Neill Definition. III.......... Preaward 96-304 DeStefano Debriefings. IV........... Certification 96-311 DeStefano Requirements--Drug- Free Workplace. V............ Consideration of 95-019 DeStefano Late Offers. VI........... Foreign 96-012 Olson Differential Pay (Interim). VII.......... Final Indirect Cost 95-018 Klein Rates. VIII......... Modification of 96-606 DeStefano Existing Contracts (Interim). ------------------------------------------------------------------------

Item I--Automatic Data Processing Equipment Leasing Costs (FAR Case 96-010)

This interim rule deletes the cost principle at FAR 31.205-2, Automatic Data Processing Equipment (ADPE) Leasing Costs, the ADPE definition at 31.001, and references to the term ADPE found elsewhere in Part 31.

Item II--Major System Definition (FAR Case 96-322)

This final rule amends the definition of ``major system'' at FAR 2.101 to increase the dollar thresholds applicable to the Department of Defense. The rule implements 10 U.S.C. 2302(5) as amended by Section 805 of the National Defense Authorization Act for Fiscal Year 1997 (Pub. L. 104-201).

Item III--Preaward Debriefings (FAR Case 96-304)

This final rule revises FAR Subpart 15.10 to implement Section 4104 of the Clinger-Cohen Act of 1996 (Pub. L. 104-106). Section 4104 requires that, prior to contract award, contracting officers provide a debriefing to any interested offeror on the reasons for that offeror's exclusion from the competitive range in a competitive negotiation.

Item IV--Certification Requirements--Drug-Free Workplace (FAR Case 96-311)

This final rule amends FAR Parts 9, 13, 23, and 52 to delete the requirement for an offeror to provide a certification regarding a drug- free workplace. The rule implements Section 4301(a)(3) of the Clinger- Cohen Act of 1996 (Pub. L. 104-106).

Item V--Consideration of Late Offers (FAR Case 95-019)

This final rule amends the late bid rule to allow an offer to be accepted if the late receipt was due primarily to Government mishandling after receipt at the Government installation. The rule recognizes the use of hand-carried offers (including delivery by a commercial carrier) as a common business practice and provides flexibility in determining when an offer (bid or proposal) was received at the Government activity, by applying standards used by the General Accounting Office. The rule also expands the definition of acceptable evidence to support acceptance of a late offer and adds a new exception at 52.215-10(a)(5) and 52.215-36(a)(3) which allows consideration of a proposal that was misdirected or misdelivered (not necessarily through mishandling) to an office other than that designated for receipt of offers in the solicitation. These changes do not apply to commercial item solicitations which contain the provision at 52.212-1(f), Late Offers.

Item VI--Foreign Differential Pay (FAR Case 96-012)

This interim rule deletes the prohibition at FAR 31.205-6(e)(2) on the calculation of foreign differential pay based directly on an employee's specific increase in income taxes resulting from assignment overseas.

Item VII--Final Indirect Cost Rates (FAR Case 95-018)

This final rule amends FAR Subpart 42.7 and Part 52 to improve procedures for providing payments to contractors under cost-type contracts by permitting, with certain restrictions, contractor use of billing rates contained in certified final indirect cost rate proposals, providing for Government release of 75 to 90 percent of all fee withholds under physically completed contracts, after receipt of the contractor's certified final indirect cost rate proposal, and establishing a timeframe for contractor submission of final invoices or vouchers.

Item VIII--Modification of Existing Contracts (FAR Case 96-606)

This interim rule amends FAR 43.102 to provide for modification of existing contracts without requiring consideration, upon request of the contractor, to incorporate changes authorized by the Clinger-Cohen Act of 1996 (Pub. L. 104-106).

Dated: December 19, 1996. Edward C. Loeb, Director, Federal Acquisition Policy Division. Federal Acquisition Circular

FAC 90-44

Federal Acquisition Circular (FAC) 90-44 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 90-44 is effective December 31, 1996 except the following items: Items III, IV, and VIII, January 1, 1997; and Items V and VII, March 3, 1997.

Dated: December 19, 1996. Roland A. Hassebrock, Col., USAF Acting Director, Defense Procurement.

Dated: December 18, 1996. Ida M. Ustad, Deputy Associate Administrator, Office of Acquisition Policy, General Services Administration.

Dated: December 19, 1996. Tom Luedtke, Deputy Associate Administrator for Procurement, National Aeronautics and Space Administration. [FR Doc. 96-32804 Filed 12-30-96; 8:45 am] BILLING CODE 6820-EP-M