14542 Federal Register / Vol. 76, No. 51 / Wednesday, March 16, 2011 / Rules and Regulations 

DEPARTMENT OF DEFENSE 

GENERAL SERVICES 

ADMINISTRATION 

NATIONAL AERONAUTICS AND 

SPACE ADMINISTRATION 

48 CFR Chapter 1 

[Docket FAR 2011–0076, Sequence 2] 

Federal Acquisition Regulation; 

Federal Acquisition Circular 2005–50; 

Introduction 

AGENCIES: Department of Defense (DoD), 

General Services Administration (GSA), 

and National Aeronautics and Space 

Administration (NASA). 

ACTION: Summary presentation of final 

and interim rules. 

SUMMARY: This document summarizes 

the Federal Acquisition Regulation 

(FAR) rules agreed to by DoD, GSA, and 

NASA in this Federal Acquisition 

Circular (FAC) 2005–50. 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 and comment 

dates, see separate documents, which 

follow. 

FOR FURTHER INFORMATION CONTACT: The 

analyst whose name appears in the table 

below in relation to each FAR case. 

Please cite FAC 2005–50 and the 

specific FAR case numbers. For 

information pertaining to status or 

publication schedules, contact the 

Regulatory Secretariat at (202) 501– 

4755. 

LIST OF RULES IN FAC 2005–50 

Item Subject FAR case Analyst 

I ................ Proper Use and Management of Cost-Reimbursement Contracts (Interim) .......................................... 2008–030 Sakalos. 

II ............... Requirements for Acquisitions Pursuant to Multiple-Award Contracts (Interim) .................................... 2007–012 Clark. 

III .............. Justification and Approval of Sole-Source 8(a) Contracts (Interim) ....................................................... 2009–038 Robinson. 

IV ............. Additional Requirements for Market Research ....................................................................................... 2008–007 Sakalos. 

V .............. Socioeconomic Program Parity (Interim) ................................................................................................ 2011–004 Morgan. 

VI ............. Use of Commercial Services Item Authority ........................................................................................... 2008–034 Chambers. 

VII ............ Trade Agreements Thresholds ............................................................................................................... 2009–040 Davis. 

VIII ........... Disclosure and Consistency of Cost Accounting Practices for Contracts Awarded to Foreign Concerns.2009–025 Chambers. 

IX ............. Compensation for Personal Services ..................................................................................................... 2009–026 Chambers. 

X .............. Technical Amendments.

SUPPLEMENTARY INFORMATION: 

Summaries for each FAR rule follow. 

For the actual revisions and/or 

amendments made by these FAR cases, 

refer to the specific item numbers and 

subject set forth in the documents 

following these item summaries. FAC 

2005–50 amends the FAR as specified 

below: 

Item I—Proper Use and Management of 

Cost-Reimbursement Contracts (FAR 

Case 2008–030) (Interim) 

This interim rule amends the FAR to 

implement section 864 of the Duncan 

Hunter National Defense Authorization 

Act for Fiscal Year 2009 (Pub. L. 110– 

417). This law aligns with the goal of 

the Presidential Memorandum on 

Government Contracting, issued on 

March 4, 2009, which is to reduce 

waste, fraud, and abuse in Government 

contracting. This rule provides internal 

regulatory guidance on the proper use 

and management of all contracts, 

specifically cost-reimbursement 

contracts. The rule identifies (1) 

circumstances when costreimbursement contracts are 

appropriate; (2) acquisition plan 

findings required to support the contract 

type selection; and (3) the acquisition 

resources necessary to award and 

manage a cost-reimbursement contract. 

Item II—Requirements for Acquisitions 

Pursuant to Multiple-Award Contracts 

(FAR Case 2007–012) (Interim) 

This interim rule amends the FAR to 

implement section 863 of the Duncan 

Hunter National Defense Authorization 

Act for Fiscal Year 2009 (Pub. L. 110– 

417). Section 863 mandates enhanced 

competition for orders placed under 

multiple-award contracts, including 

GSA’s Federal Supply Schedules. If an 

order over the simplified acquisition 

threshold does not follow the section 

863 competitive procedures, section 863 

requires that a notice and the 

determination of an exception be 

published in FedBizOpps within 14 

days after award. 

The interim rule relocates all 

procedures for establishing a Blanket 

Purchase Agreement (BPA) or placing 

an order under a BPA in one subsection, 

FAR 8.405–3. New BPAs must be 

established in accordance with the new 

competition standard. Orders over the 

simplified acquisition threshold against 

a new multiple-award BPA must meet 

the new competition standards; use is 

discretionary for existing multipleaward BPAs. 

For orders under FAR part 16 taskand delivery-order contracts, orders 

over the simplified acquisition 

threshold must meet the new 

competition procedures; each contract 

holder must receive notice of the intent 

to make a purchase. 

Item III—Justification and Approval of 

Sole-Source 8(a) Contracts (2009–038) 

(Interim) 

This interim rule amends the FAR to 

implement section 811 of the National 

Defense Authorization Act for Fiscal 

Year 2010 (Pub. L. 111–84). Section 811 

prohibits the award of a sole-source 

contract in an amount over $20 million 

under the 8(a) program authority (15 

U.S.C. 637(a)) without first obtaining a 

written Justification and Approval (J&A) 

approved by an appropriate official and 

making public the J&A and related 

information. This is a new internal 

Government requirement for the 

development and approval of a solesource J&A for 8(a) sole-source awards 

over $20 million. It neither prohibits 

such awards nor increases the 

qualifications required of 8(a) firms. No 

automated systems are impacted. 

Item IV—Additional Requirements for 

Market Research (FAR Case 2008–007) 

This final rule adopts, with changes, 

the interim rule that amended the FAR 

to implement section 826 of the 

National Defense Authorization Act for 

Fiscal Year 2008 (Pub. L. 110–181). 

Section 826, entitled ‘‘Market Research,’’ 


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Federal Register / Vol. 76, No. 51 / Wednesday, March 16, 2011 / Rules and Regulations 14543 

established new requirements for 

agencies subject to Title 10, United 

States Code. As a matter of policy, this 

provision of law was applied to 

contracts awarded by all executive 

agencies. The rule requires that market 

research must be conducted before an 

agency places a task or delivery order in 

excess of the simplified acquisition 

threshold under an indefinite-delivery 

indefinite-quantity contract. In addition, 

a prime contractor with a contract in 

excess of $5 million for the procurement 

of items other than commercial items is 

required to conduct market research 

before making purchases that exceed the 

simplified acquisition threshold. Among 

other changes, the final rule also deletes 

the language added to FAR 52.244–6 

(Alternate I) and relocates it to a new 

FAR clause 52.210–1, Market Research. 

Item V—Socioeconomic Program Parity 

(FAR Case 2011–004) (Interim) 

This interim rule amends the FAR to 

implement section 1347 of the ‘‘Small 

Business Jobs Act of 2010’’ (Pub. L. 111– 

240) and the Small Business 

Administration regulations governing 

specific contracting and business 

assistance programs. Section 1347 

changed the word ‘‘shall’’ to ‘‘may’’ at 

section 31(b)(2)(B) of the Small Business 

Act (15 U.S.C. 657a(b)(2)(B), thereby 

permitting a contracting officer to use 

discretion when determining whether 

an acquisition will be restricted to a 

small business participating in the 8(a) 

Business Development Program, the 

Historically Underutilized Business 

Zone Program, or the Service-Disabled 

Veteran-Owned Small Business 

Program. 

Item VI—Use of Commercial Services 

Item Authority (FAR Case 2008–034) 

This final rule adopts, without 

change, an interim rule that 

implemented section 868 of the Duncan 

Hunter National Defense Authorization 

Act for Fiscal Year 2009 (Pub. L. 110– 

417). Section 868 provides that the FAR 

shall be amended with respect to the 

procurement of commercial services 

that are not offered and sold 

competitively in substantial quantities 

in the commercial marketplace, but are 

of a type offered and sold competitively 

in substantial quantities in the 

commercial marketplace. Such services 

may be considered commercial items 

only if the contracting officer has 

determined in writing that the offeror 

has submitted sufficient information to 

evaluate, through price analysis, the 

reasonableness of the price for these 

services. 

The rule details the information the 

contracting officer may consider in 

order to make this determination. The 

rule further details, when this 

determination cannot be made, the 

information which may be requested to 

determine price reasonableness. 

Item VII—Trade Agreements 

Thresholds (FAR Case 2009–040) 

This final rule adopts, without 

change, an interim rule that amended 

the FAR to adjust the thresholds for 

application of the World Trade 

Organization Government Procurement 

Agreement and the Free Trade 

Agreements as determined by the 

United States Trade Representative, 

according to a pre-determined formula 

under the agreements. 

Item VIII—Disclosure and Consistency 

of Cost Accounting Practices for 

Contracts Awarded to Foreign Concerns 

(FAR Case 2009–025) 

This final rule adopts, without 

change, the interim rule that amended 

the FAR to revise FAR 30.201–4(c), 

30.201–4(d)(1), 52.230–4, and 52.230–6 

to maintain consistency between FAR 

and Cost Accounting Standards (CAS) 

regarding the administration of the Cost 

Accounting Standard Board’s (CASB) 

rules, regulations and standards. This 

revision was necessitated by the CASB 

publishing a final rule in the Federal 

Register on March 26, 2008 (73 FR 

15939) which implemented the revised 

clause, Disclosure and Consistency of 

Cost Accounting Practices—Foreign 

Concerns, in CAS-covered contracts and 

subcontracts awarded to foreign 

concerns. 

Item IX—Compensation for Personal 

Services (FAR Case 2009–026) 

This final rule adopts, without 

change, the interim rule that amended 

the FAR to align the existing FAR 

31.205–6(q)(2)(i) through (vi) with the 

changes made in Cost Accounting 

Standards (CAS) Board standards 412 

‘‘Cost Accounting Standard for 

composition and measurement of 

pension cost,’’ and 415 ‘‘Accounting for 

the cost of deferred compensation.’’ 

Formerly, the applicable CAS standard 

for measuring, assigning, and allocating 

the costs of Employee Stock Ownership 

Plans (ESOPs) depended on whether the 

ESOP met the definition of a pension 

plan at FAR 31.001. Costs for ESOPs 

meeting the definition of a pension plan 

at FAR 31.001 were covered by CAS 

412, while the costs for ESOPs not 

meeting the definition of a pension plan 

at FAR 31.001 were covered by CAS 

415. Now, regardless of whether an 

ESOP meets the definitions of a pension 

plan at FAR 31.001, all costs of ESOPs 

are covered by CAS 415. 

Item X—Technical Amendments 

Editorial changes are made at FAR 

19.201, 52.212–3, and 52.212–5. 

Dated: March 4, 2011. 

Millisa Gary, 

Acting Director, Office of Governmentwide 

Acquisition Policy. 

Federal Acquisition Circular (FAC) 2005– 

50 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 2005–50 

is effective March 16, 2011, except for Item 

IV which is effective April 15, 2011, and Item 

II which is effective May 16, 2011. 

Dated: March 4, 2011. 

Amy G. Williams, 

Acting Deputy Director, Defense Procurement 

and Acquisition Policy (Defense Acquisition 

Regulations System). 

Dated: March 4, 2011. 

Joseph A. Neurauter, 

Deputy Associate Administrator and Senior 

Procurement Executive, Office of Acquisition 

Policy, U.S. General Services Administration. 

Dated: February 28, 2011. 

Sheryl J. Goddard, 

Acting Assistant Administrator for 

Procurement National Aeronautics and Space 

Administration. 

[FR Doc. 2011–5551 Filed 3–15–11; 8:45 am] 

BILLING CODE 6820–EP–P 

DEPARTMENT OF DEFENSE 

GENERAL SERVICES 

ADMINISTRATION 

NATIONAL AERONAUTICS AND 

SPACE ADMINISTRATION 

48 CFR Parts 1, 2, 7, 16, 32, 42, and 50 

[FAC 2005–50; FAR Case 2008–030; Item 

I; Docket 2011–0082, Sequence 1] 

RIN 9000–AL78 

Federal Acquisition Regulation; Proper 

Use and Management of CostReimbursement Contracts 

AGENCIES: Department of Defense (DoD), 

General Services Administration (GSA), 

and National Aeronautics and Space 

Administration (NASA). 

ACTION: Interim rule with request for 

comments. 

SUMMARY: DoD, GSA, and NASA are 

issuing an interim rule amending the 

Federal Acquisition Regulation (FAR) to 

implement section 864 of the Duncan 

Hunter National Defense Authorization 

Act for Fiscal Year 2009. This law aligns 


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