Federal Register / Vol. 69, No. 243 / Monday, December 20, 2004 / Rules and Regulations 76347

INSTRUCTIONS TO OFFERORS—

COMMERCIAL ITEMS (JAN 2005)

* * * * *

(b) Submission of offers. ** *

(8) A completed copy of the 

representations and certifications at 

FAR 52.212–3 (see FAR 52.212–3(j) for 

those representations and certifications 

that the offeror shall complete 

electronically);

* * * * *

■ 10. Amend section 52.212–3 by 

revising the date of the provision; adding 

an introductory paragraph and 

paragraph (j) to read as follows:

52.212–3 Offeror Representations and 

Certifications—Commercial Items.

* * * * *

OFFEROR REPRESENTATIONS AND 

CERTIFICATIONS—COMMERCIAL ITEMS 

(JAN 2005)

An offeror shall complete only 

paragraph (j) of this provision if the 

offeror has completed the annual 

representations and certifications 

electronically at http://orca.bpn.gov. If 

an offeror has not completed the annual 

representations and certifications 

electronically at the ORCA website, the 

offeror shall complete only paragraphs 

(b) through (i) of this provision.

* * * * *

(j)(1) Annual Representations and 

Certifications. Any changes provided by 

the offeror in paragraph (j) of this 

provision do not automatically change 

the representations and certifications 

posted on the Online Representations 

and Certifications Application (ORCA) 

website.

(2) The offeror has completed the 

annual representations and 

certifications electronically via the 

ORCA website at http://orca.bpn.gov. 

After reviewing the ORCA database 

information, the offeror verifies by 

submission of this offer that the 

representations and certifications 

currently posted electronically at FAR 

52.212–3, Offeror Representations and 

Certifications—Commercial Items, have 

been entered or updated in the last 12 

months, are current, accurate, complete, 

and applicable to this solicitation 

(including the business size standard 

applicable to the NAICS code referenced 

for this solicitation), as of the date of 

this offer and are incorporated in this 

offer by reference (see FAR 4.1201), 

except for paragraphs llllll.

[Offeror to identify the applicable 

paragraphs at (b) through (i) of this 

provision that the offeror has completed 

for the purposes of this solicitation only, 

if any.

These amended representation(s) 

and/or certifica-tion(s) are also 

incorporated in this offer and are 

current, accurate, and complete as of 

the date of this offer.

Any changes provided by the offeror 

are applicable to this solicitation only, 

and do not result in an update to the 

representations and certifications 

posted on ORCA.]

(End of provision)

52.214–30 [Removed and Reserved]

■ 11. Remove and reserve section 

52.214–30.

52.215–7 [Removed and Reserved]

■ 12. Remove and reserve section 

52.215–7.

[FR Doc. 04–27633 Filed 12–17–04; 8:45 am]

BILLING CODE 6820–EP–S

DEPARTMENT OF DEFENSE

GENERAL SERVICES 

ADMINISTRATION

NATIONAL AERONAUTICS AND 

SPACE ADMINISTRATION

48 CFR Parts 2, 9, 22, 28, 44, and 52

[FAC 2001-26; FAR Case 2002-023; Item II]

RIN 9000-AJ78

Federal Acquisition Regulation; 

Excluded Parties List System 

Enhancement

AGENCY: Department of Defense (DoD), 

General Services Administration (GSA), 

and National Aeronautics and Space 

Administration (NASA).

ACTION: Final rule.

SUMMARY: The Civilian Agency 

Acquisition Council and the Defense 

Acquisition Regulations Council 

(Councils) have agreed on a final rule 

amending the Federal Acquisition 

Regulation (FAR) to publish an 

electronic list of parties excluded from 

doing business with the Federal 

Government online identified as the 

Excluded Parties List System (EPLS). 

This will obviate the need to publish the 

hard copy of the List of Parties Excluded 

from Federal Procurement and 

Nonprocurement Programs (List of 

Parties) produced by the Government 

Printing Office.

DATES: Effective Date:January 19, 2005.

FOR FURTHER INFORMATION CONTACT: The 

FAR Secretariat at (202) 501-4755 for 

information pertaining to status or 

publication schedules. For clarification 

of content, contact Mr. Craig Goral, 

Procurement Analyst, at (202) 501-3856. 

Please cite FAC 2001-26, FAR case 

2002-023.

SUPPLEMENTARY INFORMATION:

A. Background

This final rule incorporates the 

Excluded Parties List System into the 

FAR and enables agencies to directly 

enter data on parties suspended, 

proposed for debarment, debarred, 

declared ineligible, or excluded or 

disqualified under the nonprocurement 

common rule by agencies or the 

Government Accountability Office. GSA 

maintains that direct entry by the acting 

agency will improve the reliability of 

the system, eliminate the need for a 

hard copy list, provide access to the 

archival data, and enhance the ability to 

verify entries by permitting a search by 

exact name and social security number 

where the agencies entering the data 

have the authority to collect, retain, and 

publish the party’s social security 

number.

DoD, GSA, and NASA published a 

proposed rule in the Federal Register at 

68 FR 67353, December 1, 2003. The 

Councils received comments in 

response to the proposed rule from six 

respondents. Several respondents 

concurred in the rule as written. Other 

comments are categorized as follows:

1. One respondent recommended that 

the names of the parties listed in the 

EPLS be linked to the Central Contractor 

Registry (CCR) accessible on the Internet 

at http://www.ccr.gov/index.cfm. The 

Councils partially concur; however, in 

light of impending review of the CCR 

and the Business Partner Network (BPN) 

by their Program Manager, within the 

next six months to ascertain the 

capabilities of these systems, no change 

was made at the present time.

2. One respondent pointed out a 

technological glitch in conducting 

searches using the EPLS search engine 

for a field for DUNS number that is not 

a required entry. He points out that if 

the searcher has a DUNS number and 

searches for that given DUNS number 

but the agency data entry person has not 

entered the number, the research results 

will indicate no such entry or ‘‘No 

records were found matching this 

criteria.’’ Searchers could readily 

interpret this search engine response as 

an indication that the party to which 

Dun and Bradstreet assigned a DUNS 

number is not listed in EPLS when what 

such search results could also mean is 

that there is no data actually entered 

into a non-mandatory field. He 

suggested adding a cautionary note to 

FAR 9.404 or 9.105-1(c)(1). The 

Councils acknowledge the validity of 

his concern but decline to add a 

cautionary note to the FAR. The 

Councils acknowledge that while 

obtaining a DUNS number is a 

76348 Federal Register / Vol. 69, No. 243 / Monday, December 20, 2004 / Rules and Regulations 

requirement in many areas within 

which one ‘‘conducts business with the 

government,’’ it is not yet a universal 

requirement. For instance, OMB has 

issued guidance for its use by grantees 

but the requirement does not extend to 

sub-recipients. The Councils also noted 

that his concern may be equally 

applicable to any field where entry is 

optional or not required. GSA has been 

requested to modify the automated 

response when a searcher searches on 

data possibly entered into an optional/

not required field, so that the search 

engine response states words to the 

effect of ‘‘No records were found 

matching this criteria; however, you 

have searched for data contained in a 

non-mandatory field. A negative 

response may only indicate that no data 

matching your search criterion has been 

entered in the field DUNS number field 

or SSN/TIN field. A search on other 

required fields is recommended.’’

3. One respondent made five 

suggestions addressing broad policy 

changes in the suspension and 

debarment system. The respondent 

stated that the EPLS has not been 

adequately applied or uniformly 

enforced against large and small 

contractors and recommends five 

changes to improve the suspension and 

debarment system:

a. Create a centralized information 

database that should be consulted before 

awarding a contract or making a 

suspension and debarment system.

b. Require a contractor to disclose 

current suspensions or debarment, 

Federal or state litigation initiated 

against them in the past 3 years, and any 

Administrative Agreements the 

contractor is currently implementing.

c. Require an agency debarment 

official to use suspension and 

debarment actions equally against large 

and small contractors or to justify in 

writing a determination to do business 

with a nonresponsible contractor.

d. Amend the FAR to require 

mandatory suspension or debarment for 

a contractor that either had been 

criminally convicted or had a civil 

judgment entered against them for more 

than once in a three-year period.

e. Empower the Interagency 

Suspension and Debarment Committee 

(ISDC) to coordinate with the Federal 

agency taking a leadership role in a 

suspension or debarment case 

(especially with a repeat offender) and 

require the Interagency Committee to 

submit semi-annual reports to Congress 

regarding suspension and debarment 

decisions.

Because these comments lay outside 

the scope of the rule and addressed 

basic principles and policies leading to 

decisions to exclude parties rather than 

with the procedural changes in the 

operation of the electronic system, no 

change to the final rule is required. 

However, we will bring these comments 

to the attention of the ISDC.

4. One respondent had a list of 

comments regarding errors in citation 

and conflicts between definitions used 

in the FAR and the Nonprocurement 

Common Rule (NCR) published 

November 26, 2003 (68 FR 66553). The 

Councils acknowledge the definitions 

used in the NCR, but do not concur with 

the recommended changes to the 

proposed rule in the FAR. The FAR 

terminology, although not identical to 

the NCR terminology, is not entirely 

inconsistent. The FAR uses the specific 

terms ‘‘suspension,’’ ‘‘debarment,’’ or 

‘‘proposed for debarment’’ which are 

also used in the NCR, but for which the 

NCR has provided an overall term of 

‘‘excluded,’’ which the FAR does not 

use. The FAR uses the term ‘‘ineligible’’

(defined in FAR 2.101) rather than the 

comparable term ‘‘disqualified’’ used in 

the NCR, but the NCR also uses the term 

‘‘ineligible’’ to cover both ‘‘excluded’’

and ‘‘ineligible.’’ Therefore, the actions 

described as ‘‘ineligible’’ in the FAR are 

also ‘‘ineligible’’ under the NCR, 

although the NCR uses the term more 

broadly. The term ‘‘ineligible’’ has been 

used for many years in the FAR, and is 

imbedded in the ‘‘Procurement Cause 

and Treatment Codes’’ and in agency 

supplements such as the Defense 

Federal Acquisition Regulation 

Supplement. The Councils consider that 

it would be unnecessarily disruptive to 

remove this term from the FAR. As 

stated in paragraph (b) of FAR 9.400, 

although FAR Subpart 9.4 covers the 

listing of ineligible contractors and the 

effect of this listing, it does not 

prescribe policies and procedures 

governing declarations of ineligibility. 

The main thing a contracting officer 

needs to know is the effect of being 

listed in the ‘‘Excluded Parties List 

System,’’ not the underlying basis for 

the listing, and whether the party is 

considered ‘‘ineligible’’ or 

‘‘disqualified.’’ The contracting officer 

also needs to know the effect of being 

listed and may glean this from 

consultation with the cause and 

treatment codes. Accordingly, the final 

rule retains the current definition of 

‘‘ineligible’’ in the FAR and deletes the 

NCR definitions of ‘‘disqualified’’ and 

‘‘excluded or exclusion’’ which 

appeared in the proposed rule. 

However, the final rule adds ‘‘or 

disqualified under the Nonprocurement 

Common Rule’’ to paragraph (b)(1) of 

FAR 9.404. The respondent also noted 

that the proposed rule also used the 

definition ‘‘covered transactions’’ but no 

definition was provided and that the 

statutory citations to the listing of 

violating facilities in the Clean Water 

Act and Clean Air Act were erroneous 

in the definition of ‘‘excluded or 

exclusion.’’ Because the final rule 

deletes this definition, no change has 

been made, although the respondent 

was correct in noting the citations were 

wrong. Lastly, the respondent 

recommended that the word ‘‘generally’’

be added to paragraph (c)(5) of FAR 

9.404 to occasions where 5 working 

days may be insufficient. The final rule 

includes the adverb but notes that 

posting the data beyond the five days 

provided should occur rarely.

This is not a significant regulatory 

action and, therefore, was not subject to 

review under Section 6(b) of Executive 

Order 12866, Regulatory Planning and 

Review, dated September 30, 1993. This 

rule is not a major rule under 5 U.S.C. 

804.

B. Regulatory Flexibility Act

The Department of Defense, the 

General Services Administration, and 

the National Aeronautics and Space 

Administration certify that this final 

rule will not have a significant 

economic impact on a substantial 

number of small entities within the 

meaning of the Regulatory Flexibility 

Act, 5 U.S.C. 601, et seq., because the 

rule only makes changes in the way 

GSA manages and maintains the list of 

excluded parties. It does not change the 

criteria for inclusion on the list or the 

effect of the list on award or 

administration of contracts.

C. Paperwork Reduction Act

The Paperwork Reduction Act does 

not apply because the changes to the 

FAR do not impose information 

collection requirements that require the 

approval of the Office of Management 

and Budget under 44 U.S.C. 3501, et 

seq.

List of Subjects in 48 CFR Parts 2, 9, 28, 

44, and 52

Government procurement.

Dated: December 9, 2004.

Laura Auletta,

Director, Contract Policy Division.

■ Therefore, DoD, GSA, and NASA 

amend 48 CFR parts 2, 9, 22, 28, 44, and 

52 as set forth below:

■ 1. The authority citation for 48 CFR 

parts 2, 9, 22, 28, 44, and 52 is revised 

to read as follows:

Authority: Authority: 40 U.S.C. 121(c); 10 

U.S.C. chapter 137; and 42 U.S.C. 2473(c).

Federal Register / Vol. 69, No. 243 / Monday, December 20, 2004 / Rules and Regulations 76349

PART 2—DEFINITIONS OF WORDS 

AND TERMS

■ 2. Amend section 2.101 in paragraph 

(b)(2) by adding, in alphabetical order, 

the definition ‘‘Excluded Parties List 

System’’; and removing the definition 

‘‘List of Parties Excluded from Federal 

Procurement and Nonprocurement 

Programs.’’ The added definition reads 

as follows:

2.101 Definitions.

* * * * *

(b) * * *

Excluded Parties List System means 

an electronic database maintained and 

posted by the General Services 

Administration containing the list of all 

parties suspended, proposed for 

debarment, debarred, declared 

ineligible, or excluded or disqualified 

under the nonprocurement common 

rule by agencies, Government 

corporations, or by the Government 

Accountability Office.

* * * * *

PART 9—CONTRACTOR 

QUALIFICATIONS

■ 3. Amend section 9.105-1 by revising 

paragraph (c)(1) to read as follows:

9.105-1 Obtaining information.

* * * * *

(c) * * * 

(1) The Excluded Parties List System 

maintained in accordance with Subpart 

9.4.

* * * * *

■ 4. Amend section 9.207 by revising 

paragraph (a)(9) to read as follows:

9.207 Changes in status regarding 

qualification requirements.

(a) * * * 

(9) The source is on the Excluded 

Parties List System (see Subpart 9.4); or

* * * * *

■ 5. Revise section 9.404 to read as 

follows:

9.404 Excluded Parties List System.

(a) The General Services 

Administration (GSA)—

(1) Operates the web-based Excluded 

Parties List System (EPLS);

(2) Provides technical assistance to 

Federal agencies in the use of the EPLS; 

and

(3) Includes in the list the name and 

telephone number of the official 

responsible for its maintenance and 

distribution.

(b) The EPLS includes the—

(1) Names and addresses of all 

contractors debarred, suspended, 

proposed for debarment, declared 

ineligible, or excluded or disqualified 

under the nonprocurement common 

rule, with cross-references when more 

than one name is involved in a single 

action;

(2) Name of the agency or other 

authority taking the action;

(3) Cause for the action (see 9.406-2 

and 9.407-2 for causes authorized under 

this subpart) or other statutory or 

regulatory authority;

(4) Effect of the action;

(5) Termination date for each listing;

(6) DUNS No.;

(7) Social Security Number (SSN), 

Employer Identification Number (EIN), 

or other Taxpayer Identification Number 

(TIN), if available; and

(8) Name and telephone number of 

the agency point of contact for the 

action.

(c) Each agency must—

(1) Obtain password(s) from GSA to 

access the EPLS for data entry;

(2) Notify GSA in the event a 

password needs to be rescinded (e.g.,

when an agency employee leaves or 

changes function);

(3) Enter the information required by 

paragraph (b) of this section within 5 

working days after the action becomes 

effective;

(4) Determine whether it is legally 

permitted to enter the SSN, EIN, or 

other TIN, under agency authority to 

suspend or debar;

(5) Update EPLS, generally within 5 

working days after modifying or 

rescinding an action;

(6) In accordance with internal 

retention procedures, maintain records 

relating to each debarment, suspension, 

or proposed debarment taken by the 

agency;

(7) Establish procedures to ensure that 

the agency does not solicit offers from, 

award contracts to, or consent to 

subcontracts with contractors whose 

names are in the EPLS, except as 

otherwise provided in this subpart;

(8) Direct inquiries concerning listed 

contractors to the agency or other 

authority that took the action; and

(9) Contact GSA for technical 

assistance with the EPLS, via the 

support e-mail address or on the 

technical support phone line available 

at the EPLS web site provided in 

paragraph (d) of this section.

(d) The EPLS is available at http://

epls.gov.

9.405 [Amended]

■ 6. Amend section 9.405 by—

a. Removing from paragraph (b) ‘‘on 

the List of Parties Excluded from 

Federal Procurement and 

Nonprocurement Programs’’ and adding 

‘‘in the EPLS’’ in its place; and

b. Removing from paragraphs (d)(1) 

and (d)(4) ‘‘List of Parties Excluded from 

Federal Procurement and 

Nonprocurement Programs’’ and adding 

‘‘EPLS’’ in their place.

9.405-2 [Amended]

■ 7. Amend section 9.405-2 by removing 

from paragraphs (b) introductory text, 

(b)(2), and (b)(3) ‘‘on the List of Parties 

Excluded from Federal Procurement and 

Nonprocurement Programs’’ and adding 

‘‘in the EPLS’’ in their place.

PART 22—APPLICATIONS OF LABOR 

LAWS TO GOVERNMENT 

ACQUISITIONS

22.1025 [Amended]

■ 8. Amend the first sentence of section 

22.1025 by removing ‘‘List of Parties 

Excluded from Federal Procurement and 

Nonprocurement Programs’’ and adding 

‘‘Excluded Parties List System’’ in its 

place.

PART 28—BONDS AND INSURANCE

28.203-7 [Amended]

■ 9. Amend section 28.203-7 in 

paragraphs (c) and (d) by removing ‘‘on 

the List of Parties Excluded from Federal 

Procurement and Nonprocurement 

Programs’’ and adding ‘‘in the Excluded 

Parties List System’’ in their place.

PART 44—SUBCONTRACTING 

POLICIES AND PROCEDURES

44.202-2 [Amended]

■ 10. Amend section 44.202-2 in 

paragraph (a)(13) by removing ‘‘on the 

List of Parties Excluded from Federal 

Procurement and Nonprocurement 

Programs’’ and adding ‘‘in the Excluded 

Parties List System’’ in its place.

44.303 [Amended]

■ 11. Amend section 44.303 in paragraph 

(c) by removing ‘‘List of Parties Excluded 

from Federal Procurement and 

Nonprocurement Programs’’ and adding 

‘‘Excluded Parties List System’’ in its 

place.

PART 52—SOLICITATION PROVISIONS 

AND CONTRACT CLAUSES

52.209-6 [Amended]

■ 12. Amend section 52.209-6 by 

revising the date of the clause to read 

‘‘(JAN 2005)’’ removing from the 

introductory text of paragraph (c) ‘‘List of 

Parties Excluded from Federal 

Procurement and Nonprocurement 

Programs’’ and adding ‘‘Excluded Parties 

List System’’ in its place; and removing 

from paragraphs (c)(2) and (c)(3) ‘‘on the 

List of Parties Excluded from Federal 

Procurement and Nonprocurement 

Programs’’ and adding ‘‘in the Excluded 

Parties List System’’ in their place.

76350 Federal Register / Vol. 69, No. 243 / Monday, December 20, 2004 / Rules and Regulations 

52.213-4 [Amended]

■ 13. Amend section 52.213-4 by 

revising the date of the clause to read 

‘‘(JAN 2005)’’; and by removing from 

paragraph (b)(2)(i) of the clause ‘‘(July 

1995)’’ and adding ‘‘(JAN 2005)’’ in its 

place.

[FR Doc. 04–27634 Filed 12–17–04; 8:45 am]

BILLING CODE 6820–EP–S

DEPARTMENT OF DEFENSE

GENERAL SERVICES 

ADMINISTRATION

NATIONAL AERONAUTICS AND 

SPACE ADMINISTRATION

48 CFR Parts 2, 12, 13, and 15

[FAC 2001–26; FAR Case 2003–022; Item 

III]

RIN 9000–AJ88

Federal Acquisition Regulation; 

Special Emergency Procurement 

Authority

AGENCIES: Department of Defense (DoD), 

General Services Administration (GSA), 

and National Aeronautics and Space 

Administration (NASA).

ACTION: Final rule.

SUMMARY: The Civilian Agency 

Acquisition Council and the Defense 

Acquisition Regulations Council 

(Councils) have agreed to convert the 

interim rule published in the Federal 

Register at 69 FR 8312, February 23, 

2004, to a final rule with changes. The 

rule amends the Federal Acquisition 

Regulation (FAR) to implement the 

special emergency procurement 

authorities of Section 1443 of the 

Services Acquisition Reform Act of 2003 

(Pub. L. 108–136, Title XIV, codified at 

41 U.S.C. 428a), and section 822 of the 

Ronald W. Reagan National Defense 

Authorization Act for Fiscal Year 2005.

Section 1443 increases the amount of 

the micro-purchase threshold and the 

simplified acquisition threshold for 

procurements of supplies or services by 

or for an executive agency that, as 

determined by the head of the agency, 

are to be used in support of a 

contingency operation or to facilitate the 

defense against or the recovery from 

nuclear, biological, chemical or 

radiological attack. Section 822 of the 

Fiscal Year 2005 Defense Authorization 

Act further increased the threshold 

amounts for any contract to be awarded 

and performed, or purchases to be 

made, outside the United States.

Also, under section 1443, the head of 

the contracting activity carrying out a 

procurement of supplies or services to 

facilitate defense against or recovery 

from nuclear, biological, chemical, or 

radiological attack may treat such 

supplies or services as a commercial 

item.

DATES: Effective Date:January 19, 2005.

FOR FURTHER INFORMATION CONTACT: The 

FAR Secretariat at (202) 501–4755 for 

information pertaining to status or 

publication schedules. For clarification 

of content, contact Mr. Gerald Zaffos, 

Procurement Analyst, at (202) 208–

6091. Please cite FAC 2001–26, FAR 

case 2003–022.

SUPPLEMENTARY INFORMATION:

A. Background

This final rule implements Section 

1443 of the Services Acquisition Reform 

Act of 2003 (SARA) (41 U.S.C. 428a) 

and section 822 of the Ronald W. 

Reagan National Defense Authorization 

Act for Fiscal Year 2005. Section 1443 

increases the amount of the micropurchase threshold and the simplified 

acquisition threshold for procurements 

of supplies or services by or for an 

executive agency that, as determined by 

the head of the agency, are to be used 

in support of a contingency operation or 

to facilitate the defense against or the 

recovery from nuclear, biological, 

chemical or radiological attack. Section 

1443 also authorizes the expanded use 

of Simplified Acquisition and 

Commercial Items procedures. Section 

822 authorized a higher micro-purchase 

and simplified acquisition threshold for 

any contract to be awarded and 

performed, or purchases to be made, 

outside the United States, for the same 

purposes as authorized under section 

1443 of SARA.

DoD, GSA, and NASA published an 

interim rule in the Federal Register at 

69 FR 8312, February 23, 2004. The 60–

day comment period for the interim rule 

ended April 23, 2004. Three comments 

were received; they are addressed 

below. Section 822 of the Fiscal Year 

2005 Defense Authorization Act was 

enacted after publication of the interim 

rule. As a result, this final rule 

incorporates the increased thresholds 

provided by section 822.

One commenter recommended that 

the Councils seek a Governmentwide 

waiver from the Secretary of Labor from 

application of FAR clauses 52.222–26, 

Equal Opportunity, and 52.222–36, 

Affirmative Action for Workers With 

Disabilities, so that the purchase card 

could be used without having to also 

issue a purchase order with these 

clauses. The final rule does not adopt 

this suggestion because the FAR already 

authorizes the agency head to waive the 

inclusion of these clauses when deemed 

to be in the interest of national security 

(FAR 22.807(a)(1) and 22.1403(b), 

respectively).

The same commenter suggested that 

the final rule address the fact that the 

Service Contract Act requires clauses in 

all service contracts above $2,500. The 

final rule does not adopt this suggestion 

because neither SARA nor the Fiscal 

Year 2005 Defense Authorization Act 

suggested that these acquisitions are 

exempt from statutory requirements.

Another commenter questioned why 

the interim rule did not include 

contingency operations in the increased 

limitation on use of simplified 

acquisition procedures, as authorized by 

Section 1443. The final rule has been 

amended to include the procurement of 

commercial supplies and services in 

support of contingency operations in the 

increased limitation on use of simplified 

acquisition procedures. However, 

services and supplies procured in 

support of a contingency operation must 

meet the definition of a commercial 

item in FAR 2.101 for the increased 

limitation to apply.

This is not a significant regulatory 

action and, therefore, is not subject to 

review under Section 6(b) of Executive 

Order 12866, Regulatory Planning and 

Review, dated September 30, 1993. This 

rule is not a major rule under 5 U.S.C. 

804.

B. Regulatory Flexibility Act

This final rule may have a significant 

economic impact on a substantial 

number of small entities within the 

meaning of the Regulatory Flexibility 

Act, 5 U.S.C. 601, et seq. However, the 

increased limitations are limited to 

procurements that are entered into in 

support of a contingency operation or to 

facilitate the defense against or the 

recovery from nuclear, biological, 

chemical or radiological attack. There 

are no data available on the number of 

procurements that will be eligible. We 

expect the increased thresholds to this 

limited class of procurements will apply 

to a very small number of small entities.

This final rule does not impose any 

data collection requirements on small 

business concerns. The rule does not 

duplicate, overlap, or conflict with other 

relevant Federal rules. There is no 

significant alternative to the final rule 

that would accomplish the stated 

beneficial objective.

The Councils prepared a Final 

Regulatory Flexibility Analysis (FRFA) 

as follows:

1. Description of the reasons why action by 

the agency is being considered. This final 

rule revises the Federal Acquisition 

Regulation (FAR) in order to implement