36028 Federal Register / Vol. 65, No. 109 / Tuesday, June 6, 2000 / Rules and Regulations

meaning of the Regulatory Flexibility

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

only applies to acquisition of items from

Serbia or Afghanistan.

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 25 and

52

Government procurement.

Dated: May 26, 2000.

Edward C. Loeb,

Director, Federal Acquisition Policy Division.

Therefore, DoD, GSA, and NASA

amend 48 CFR parts 25 and 52 as set

forth below:

1. The authority citation for 48 CFR

parts 25 and 52 continues to read as

follows:

Authority: 40 U.S.C. 486(c); 10 U.S.C.

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

PART 25—FOREIGN ACQUISITION

2. Amend section 25.701 by revising

paragraph (a) to read as follows:

25.701 Restrictions.

(a)(1) The Government generally does

not acquire supplies or services that

cannot be imported lawfully into the

United States. Therefore, except as

provided in paragraph (a)(2) of this

section, even for overseas use, agencies

and their contractors and subcontractors

must not acquire any supplies or

services originating from sources

within, or that were located in or

transported from or through

(i) Cuba (31 CFR part 515);

(ii) Iran (31 CFR part 560);

(iii) Iraq (31 CFR part 575);

(iv) Libya (31 CFR part 550);

(v) North Korea (31 CFR part 500);

(vi) Sudan (31 CFR part 538);

(vii) Territory of Afghanistan

controlled by the Taliban (Executive

Order 13129 of July 4, 1999, Blocking

Property and Prohibiting Transactions

With the Taliban); or

(viii) Serbia, excluding the territory of

Kosovo (Executive Order 13121 of April

30, 1999, Blocking Property of the

Governments of the Federal Republic of

Yugoslavia (Serbia and Montenegro), the

Republic of Serbia, and the Republic of

Montenegro, and Prohibiting Trade

Transactions Involving the Federal

Republic of Yugoslavia (Serbia and

Montenegro) in Response to the

Situation in Kosovo).

(2)(i) Unless agency procedures

require a higher level of approval, the

contracting officer may, in unusual

circumstances, acquire for use outside

the United States supplies and services

restricted in paragraph (a)(1) of this

section. Examples of unusual

circumstances are an emergency or

when the supplies or services are not

otherwise available and a substitute is

not acceptable.

(ii) The contracting officer must

provide documentation in the contract

file whenever this exception is used.

* * * * *

3. Revise section 25.702 to read as

follows:

25.702 Source of further information.

Refer questions concerning the

restrictions in 25.701 to the Department

of the Treasury, Office of Foreign Assets

Control, Washington, D.C. 20220

(Telephone (202) 622–2520).

4. Amend section 25.1103 by revising

paragraph (a) to read as follows:

25.1103 Other provisions and clauses.

(a) Restrictions on certain foreign

purchases. Insert the clause at 52.225–

13, Restrictions on Certain Foreign

Purchases, in solicitations and contracts

with a value exceeding $2,500, unless

an exception applies (see 25.701(a)(2)).

PART 52—SOLICITATION PROVISIONS

AND CONTRACT CLAUSES

5. Amend section 52.212–5 by—

a. Revising the date of the clause and

paragraph (a);

b. In the first sentence of the

introductory text of paragraphs (b), (c),

and (d), by removing ‘‘agrees to’’ and

adding ‘‘shall’’ in their place; and

c. Removing paragraph (b)(21) and

redesignating paragraphs (b)(19) and

(b)(20) as (b)(20) and (b)(21),

respectively; and adding a new

paragraph (b)(19) to read as follows:

52.212–5 Contract Terms and Conditions

Required to Implement Statutes or

Executive Orders—Commercial Items.

* * * * *

Contract Terms and Conditions Required to

Implement Statutes or Executive Orders—

Commercial Items (July 2000)

(a) The Contractor shall comply with the

following FAR clauses, which are

incorporated in this contract by reference, to

implement provisions of law or executive

orders applicable to acquisitions of

commercial items:

(1) 52.222–3, Convict Labor (E.O. 11755).

(2) 52.233–3, Protest after Award (31 U.S.C.

3553).

(b) * * *

l ; (19) 52.225–13, Restriction on Certain

Foreign Purchases (E.O. 12722, 12724, 13059,

13067, 13121, and 13129).

* * * * *

6. Amend section 52.213–4 by revising

the date of the clause and paragraph

(a)(1)(ii) to read as follows:

52.213–4 Terms and Conditions—

Simplified Acquisitions (Other Than

Commercial Items).

* * * * *

Terms and Conditions—Simplified

Acquisitions (Other Than Commercial Items)

(July 2000)

(a) * * *

(1) * * *

* * * * *

(ii) 52.225–13, Restrictions on Certain

Foreign Purchases (July 2000) (E.O.’s 12722,

12724, 13059, 13067, 13121, and 13129).

* * * * *

7. Amend section 52.225–13 by

revising the date of the clause and the

last sentence of paragraph (a) to read as

follows:

52.225–13 Restrictions on Certain Foreign

Purchases.

* * * * *

Restrictions on Certain Foreign Purchases

(July 2000)

(a) * * * Those countries are Cuba, Iran,

Iraq, Libya, North Korea, Sudan, the territory

of Afghanistan controlled by the Taliban, and

Serbia (excluding the territory of Kosovo).

* * * * *

[FR Doc. 00–13823 Filed 6–1–00; 4:01 pm]

BILLING CODE 6820–EP–P

DEPARTMENT OF DEFENSE

GENERAL SERVICES

ADMINISTRATION

NATIONAL AERONAUTICS AND

SPACE ADMINISTRATION

48 CFR Parts 30 and 52

[FAC 97–18; FAR Case 2000–301; Item VIII]

RIN 9000–AI79

Federal Acquisition Regulation;

Applicability, Thresholds and Waiver

of Cost Accounting Standards

Coverage

AGENCIES: Department of Defense (DoD),

General Services Administration (GSA),

and National Aeronautics and Space

Administration (NASA).

ACTION: Interim rule with request for

comments.

SUMMARY: The Civilian Agency

Acquisition Council and the Defense

Acquisition Regulations Council

(Councils) have agreed on an interim

rule amending the Federal Acquisition

Regulation (FAR) to implement Section

802 of the National Defense

Federal Register / Vol. 65, No. 109 / Tuesday, June 6, 2000 / Rules and Regulations 36029

Authorization Act for Fiscal Year 2000

and the Cost Accounting Standards

(CAS) Board’s interim rule,

Applicability, Thresholds and Waiver of

Cost Accounting Standards Coverage.

The FAR rule revises CAS applicability

requirements, dollar thresholds, and

waiver requirements.

DATES: Effective Date: June 6, 2000.

Applicability Date: The FAR, as

amended by this rule, is applicable to

solicitations issued on or after June 6,

2000.

Comment Date: Interested parties

should submit comments to the FAR

Secretariat at the address shown below

on or before August 7, 2000 to be

considered in the formulation of a final

rule.

ADDRESSES: Submit written comments

to: General Services Administration,

FAR Secretariat (MVR), 1800 F Street,

NW, Room 4035, Attn: Ms. Laurie

Duarte, Washington, DC, 20405.

Submit electronic comments via the

Internet to: farcase.2000–301@gsa.gov

Please submit comments only and cite

FAC 97–18, FAR case 2000–301 in all

correspondence related to this case.

FOR FURTHER INFORMATION CONTACT: The

FAR Secretariat, Room 4035, GS

Building, Washington, DC 20405, (202)

501–4755, for information pertaining to

status or publication schedules. For

clarification of content, contact Ms.

Linda Nelson, Procurement Analyst, at

(202) 501–1900. Please cite FAC 97–18,

FAR case 2000–301.

SUPPLEMENTARY INFORMATION:

A. Background

Section 802 of the National Defense

Authorization Act for Fiscal Year 2000

(Pub. L. 106–65)—

• Revised, at 41 U.S.C. 422(f)(2)(B),

the categories of contracts and

subcontracts that are exempt from all

CAS requirements;

• Required the Administrator for

Federal Procurement Policy to revise the

rules and procedures issued under 41

U.S.C. 422(f) to increase the dollar

threshold for full CAS coverage from

$25 million to $50 million; and

• Revised 41 U.S.C. 422(f) to permit

the head of an executive agency to

waive the applicability of CAS under

certain conditions.

In response to Pub. L. 106–65, the

CAS Board in the Office of Federal

Procurement Policy published an

interim rule in the Federal Register on

February 7, 2000 (65 FR 5990). The CAS

Board rule, Applicability, Thresholds

and Waiver of Cost Accounting

Standards Coverage, amended the

regulations at 48 CFR part 9903 to

implement Section 802.

This interim FAR rule—

• Amends the provision at FAR

52.230–1, Cost Accounting Standards

Notices and Certification, to remove the

requirement that a contractor or

subcontractor must have received at

least one CAS-covered contract

exceeding $1 million (‘‘trigger contract’’)

to be subject to ‘‘full CAS coverage,’’

since the CAS Board removed this

‘‘trigger contract’’ amount from its

corresponding solicitation provision,

Cost Accounting Standards Notices and

Certification, at 48 CFR 9903.201–3. The

CAS Board added a new ‘‘trigger

contract’’ dollar amount of $7.5 million

at paragraph (b)(7) of 48 CFR 9903.201–

1, CAS applicability, which is already

referenced at FAR 30.201–1;

• Revises FAR 30.201–4(b),

Disclosure and consistency of cost

accounting practices, and amends the

provision at FAR 52.230–1 to reflect

changes made by the CAS Board to

increase the dollar threshold for full

CAS coverage from $25 million to $50

million; and

• Revises the CAS waiver procedures

and conditions at FAR 30.201–5, as

required by Section 802 of Pub. L. 106–

65.

This rule was not subject to Office of

Management and Budget 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 interim rule is not expected to

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 contracts and subcontracts with

small businesses are exempt from all

CAS requirements in accordance with

48 CFR 9903.201–1(b)(3). Therefore, an

Initial Regulatory Flexibility Analysis

has not been performed. The Councils

will consider comments from small

entities concerning the affected FAR

subparts in accordance with 5 U.S.C.

610. Interested parties must submit such

comments separately and should cite 5

U.S.C 601, et seq. (FAC 97–18, FAR case

2000–301), in correspondence.

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.

D. Determination To Issue an Interim

Rule

A determination has been made under

the authority of the Secretary of Defense

(DoD), the Administrator of General

Services (GSA), and the Administrator

of the National Aeronautics and Space

Administration (NASA) that urgent and

compelling reasons exist to promulgate

this interim rule without prior

opportunity for public comment. This

action is necessary because this rule

implements Section 802 of the National

Defense Authorization Act for Fiscal

Year 2000 (Pub. L. 106–65) and the Cost

Accounting Standards (CAS) Board’s

interim rule, Applicability, Thresholds

and Waiver of Cost Accounting

Standards Coverage. Section 802

became effective 180 days after the date

of enactment of Public Law 106–65

(October 5, 1999). The CAS Board’s

interim rule that implements Section

802 became effective on April 2, 2000.

It is necessary that the Councils publish

an interim FAR rule to amend FAR Parts

30 and 52 to implement Section 802 and

the CAS Board’s interim rule. However,

pursuant to Public Law 98–577 and FAR

1.501, the Councils will consider public

comments received in response to this

interim rule in the formation of the final

rule.

List of Subjects in 48 CFR Parts 30 and

52

Government procurement.

Dated: May 26, 2000.

Edward C. Loeb,

Director, Federal Acquisition Policy Division.

Therefore, DoD, GSA, and NASA

amend 48 CFR parts 30 and 52 as set

forth below:

1. The authority citation for 48 CFR

parts 30 and 52 continues to read as

follows:

Authority: 40 U.S.C. 486(c); 10 U.S.C.

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

PART 30—COST ACCOUNTING

STANDARDS ADMINISTRATION

2. Amend section 30.201–4 by

revising paragraph (b)(1) to read as

follows:

30.201–4 Contract clauses.

* * * * *

(b) Disclosure and consistency of cost

accounting practices. (1) Insert the

clause at FAR 52.230–3, Disclosure and

Consistency of Cost Accounting

Practices, in negotiated contracts when

the contract amount is over $500,000,

but less than $50 million, and the

offeror certifies it is eligible for and

elects to use modified CAS coverage

(see 48 CFR 9903.201–2 (FAR

36030 Federal Register / Vol. 65, No. 109 / Tuesday, June 6, 2000 / Rules and Regulations

Appendix)), unless the clause

prescribed in paragraph (c) of this

subsection is used.

* * * * *

3. Revise section 30.201–5 to read as

follows:

30.201–5 Waiver.

(a) The head of the agency—

(1) May waive the applicability of

CAS for a particular contract or

subcontract under the conditions listed

in paragraph (b) of this subsection; and

(2) Must not delegate this waiver

authority to any official in the agency

below the senior contract policymaking

level.

(b) The head of the agency may grant

a waiver when one of the following

conditions exists:

(1) The contract or subcontract value

is less than $15,000,000, and the head

of the agency determines, in writing,

that the segment of the contractor or

subcontractor that will perform the

contract or subcontract—

(i) Is primarily engaged in the sale of

commercial items; and

(ii) Has no contracts or subcontracts

that are subject to CAS.

(2) The head of the agency determines

that exceptional circumstances exist

whereby a waiver of CAS is necessary

to meet the needs of the agency.

Exceptional circumstances exist only

when the benefits to be derived from

waiving the CAS outweigh the risk

associated with the waiver. The

determination that exceptional

circumstances exist must—

(i) Be set forth in writing; and

(ii) Include a statement of the specific

circumstances that justify granting the

waiver.

(c) When one of the conditions in

paragraph (b) of this subsection exists,

the request for waiver should include

the following:

(1) The amount of the proposed

award.

(2) A description of the contract or

subcontract type (e.g., firm-fixed-price,

cost-reimbursement).

(3) Whether the segment(s) that will

perform the contract or subcontract has

CAS-covered contracts or subcontracts.

(4) A description of the item(s) being

procured.

(5) When the contractor or

subcontractor will not accept the

contract or subcontract if CAS applies,

a statement to that effect.

(6) Whether cost or pricing data will

be obtained, and if so, a discussion of

how the data will be used in negotiating

the contract or subcontract price.

(7) The benefits to the Government of

waiving CAS.

(8) The potential risk to the

Government of waiving CAS.

(9) The date by which the waiver is

needed.

(10) Any other information that may

be useful in evaluating the request.

(d) When neither of the conditions in

paragraph (b) of this subsection exists,

the waiver request must be prepared in

accordance with 48 CFR 9903.201–5(e)

(FAR Appendix) and submitted to the

CAS Board.

(e) Each agency must report any

waivers granted under paragraph (a) of

this subsection to the CAS Board, on a

fiscal year basis, not later than 90 days

after the close of the Government’s fiscal

year.

PART 52—SOLICITATION PROVISIONS

AND CONTRACT CLAUSES

4. Amend section 52.230–1 by—

a. Revising the date of the provision;

b. In the first sentence of paragraph

(c)(3) by removing the phrase ‘‘more

than $25 million (of which at least one

award exceeded $1 million)’’ and

adding ‘‘$50 million or more’’ in its

place;

c. In paragraph (c)(4)—

(i) In the ‘‘Caution’’ paragraph, by

removing ‘‘$25 million’’ and adding

‘‘$50 million’’ in its place;

(ii) At ‘‘II. Cost Accounting

Standards—Eligibility for Modified

Contract Coverage,’’ in the second

paragraph, by revising the first sentence;

and

(iii) In the ‘‘Caution’’ paragraph

following paragraph II by removing

‘‘$25 million’’ each time it is used

(twice) and adding ‘‘$50 million’’ in

their places. The revised text reads as

follows:

52.230–1 Cost Accounting Standards

Notices and Certification.

* * * * *

COST ACCOUNTING STANDARDS

NOTICES AND CERTIFICATION (JUNE

2000)

* * * * *

(c) * * *

(4) * * *

II. Cost Accounting Standards—Eligibility

for Modified Contract Coverage

* * * * *

b The offeror hereby claims an exemption

from the Cost Accounting Standards clause

under the provisions of 48 CFR 9903.201–

2(b) and certifies that the offeror is eligible

for use of the Disclosure and Consistency of

Cost Accounting Practices clause because

during the cost accounting period

immediately preceding the period in which

this proposal was submitted, the offeror

received less than $50 million in awards of

CAS-covered prime contracts and

subcontracts.

* * * * *

[FR Doc. 00–13824 Filed 6–1–00; 4:02 pm]

BILLING CODE 6820–EP–P

DEPARTMENT OF DEFENSE

GENERAL SERVICES

ADMINISTRATION

NATIONAL AERONAUTICS AND

SPACE ADMINISTRATION

48 CFR Parts 3, 5, 47, and 49

[FAC 97–18; Item IX]

Federal Acquisition Regulation;

Technical Amendments

AGENCIES: Department of Defense (DoD),

General Services Administration (GSA),

and National Aeronautics and Space

Administration (NASA).

ACTION: Technical amendments.

SUMMARY: This document makes

amendments to the Federal Acquisition

Regulation in order to update references

and make editorial changes.

EFFECTIVE DATE: June 6, 2000.

FOR FURTHER INFORMATION CONTACT: The

FAR Secretariat, Room 4035, GS

Building, Washington, DC 20405, (202)

501–4755.

List of Subjects in 48 CFR parts 3, 5, 47,

and 49

Government procurement.

Dated: May 26, 2000.

Edward C. Loeb,

Director, Federal Acquisition Policy Division.

Therefore, DoD, GSA, and NASA

amend 48 CFR parts 3, 47, and 49 as set

forth below:

1. The authority citation for 48 CFR

parts 3, 47, and 49 continues to read as

follows:

Authority: 40 U.S.C. 486(c); 10 U.S.C.

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

PART 3—IMPROPER BUSINESS

PRACTICES AND PERSONAL

CONFLICTS OF INTEREST

3.303 [Amended]

2. Amend section 3.303 in the first

sentence of paragraph (a) by removing

‘‘41 U.S.C. 253(B)(e) and 10 U.S.C.

2305(b)(5)’’ and adding ‘‘41 U.S.C.

253b(i) and 10 U.S.C. 2305(b)(9)’’ in its

place.

PART 5—PUBLICIZING CONTRACT

ACTIONS

3. Revise the last sentence of section

5.204 to read as follows: