67770 Federal Register / Vol. 71, No. 225 / Wednesday, November 22, 2006 / Rules and Regulations 

DEPARTMENT OF DEFENSE 

GENERAL SERVICES 

ADMINISTRATION 

NATIONAL AERONAUTICS AND 

SPACE ADMINISTRATION 

48 CFR Chapter 1 

[Docket FAR—2006–0023, Sequence 7] 

Federal Acquisition Regulation; 

Federal Acquisition Circular 2005–14; 

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, and technical 

amendments and corrections. 

SUMMARY: This document summarizes 

the Federal Acquisition Regulation 

(FAR) rules agreed to by the Civilian 

Agency Acquisition Council and the 

Defense Acquisition Regulations 

Council in this Federal Acquisition 

Circular (FAC) 2005–14. 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 or 

subject area. Please cite FAC 2005–14 

and specific FAR case number(s). For 

information pertaining to status or 

publication schedules, contact the FAR 

Secretariat at (202) 501–4755. 

LIST OF RULES IN FAC 2005–14 

Item Subject FAR case Analyst 

I ............ Common Identification Standard for Contractors ............................................................................ 2005–015 Jackson. 

II ........... Removal of Sanctions Against Certain EU Countries ..................................................................... 2005–045 Olson. 

III .......... Free Trade Agreements—Bahrain and Guatemala (Interim) .......................................................... 2006–017 Parnell. 

IV .......... Free Trade Agreements—Morocco ................................................................................................. 2006–001 Parnell. 

V ........... Technical Amendments ...................................................................................................................

SUPPLEMENTARY INFORMATION: 

Summaries for each FAR rule follow. 

For the actual revisions and/or 

amendments to these FAR cases, refer to 

the specific item number and subject set 

forth in the documents following these 

item summaries. 

FAC 2005–14 amends the FAR as 

specified below: 

Item I—Common Identification 

Standard for Contractors (FAR Case 

2005–015) 

This rule converts the interim rule 

published at 71 FR 208, January 3, 2006, 

to a final rule with changes. The rule 

amends the Federal Acquisition 

Regulation (FAR) by addressing the 

contractor personal identification 

requirements in Homeland Security 

Presidential Directive (HSPD) 12, 

‘‘Policy for a Common Identification 

Standard for Federal Employees and 

Contractors,’’ and Federal Information 

Processing Standards Publication (FIPS 

PUB) Number 201, ‘‘Personal Identity 

Verification (PIV) of Federal Employees 

and Contractors.’’ The primary 

objectives of HSPD–12 are to establish a 

process to enhance security, increase 

Government efficiency, reduce identity 

fraud, and protect personal privacy by 

establishing a mandatory, 

Governmentwide standard for secure 

and reliable forms of identification 

issued by the Federal Government to its 

employees and contractors who require 

routine physical access to Federallycontrolled facilities, and/or routine 

access to Federally-controlled 

information systems. 

Item II—Removal of Sanctions Against 

Certain EU Countries (FAR Case 2005– 

045) 

This rule converts the interim rule 

published at 71 FR 20305, April 19, 

2006, to a final rule without change. The 

interim rule removed the sanctions in 

FAR Part 25 against Austria, Belgium, 

Denmark, Finland, France, Ireland, 

Italy, Luxembourg, the Netherlands, 

Sweden, and the United Kingdom on 

acquisitions not covered by the World 

Trade Organization Government 

Procurement Agreement. These 

sanctions did not apply to small 

business set-asides, to acquisition below 

the simplified acquisition threshold 

using simplified acquisition procedures, 

or to acquisitions by the Department of 

Defense. Contracting officers may now 

consider offers of end products, 

services, and construction that were 

previously prohibited by the sanctions. 

Item III—Free Trade Agreements— 

Bahrain and Guatemala (FAR Case 

2006–017) (Interim) 

This interim rule allows contracting 

officers to purchase the goods and 

services of Guatemala and Bahrain 

without application of the Buy 

American Act if the acquisition is 

subject to the Free Trade Agreements. 

These trade agreements with Guatemala 

and Bahrain join the North American 

Free Trade Agreement (NAFTA), the 

Australia, Chile, Morocco, and 

Singapore Free Trade Agreements, and 

the CAFTA-DR with respect to El 

Salvador, Honduras, and Nicaragua, 

which are already in the FAR. The 

threshold for applicability of the 

Dominican Republic—Central AmericaUnited States Free Trade Agreement is 

$64,786 for supplies and services (the 

same as other Free Trade Agreements to 

date except Morocco and Canada) and 

$7,407,000 for construction (the same as 

all other Free Trade Agreements to date 

except NAFTA). The threshold for 

applicability of the Bahrain Free Trade 

Agreement is $193,000 (the same as the 

Morocco FTA and the WTO GPA) and 

$8,422,165 for construction (the same as 

NAFTA). 

Item IV—Free Trade Agreements— 

Morocco (FAR Case 2006–001) 

This final rule converts the interim 

rule published in the Federal Register at 

71 FR 20306, April 19, 2006, to a final 

rule without change. This rule allows 

contracting officers to purchase the 

products of Morocco without 

application of the Buy American Act if 

the acquisition is subject to the Morocco 

Free Trade Agreements. The U.S. Trade 

Representative negotiated a Free Trade 

Agreement with Morocco, which went 

into effect January 1, 2006. This 

agreement joins the North American 

Free Trade Agreement (NAFTA) and the 

Australia, Chile, and Singapore Free 

Trade Agreements, which are already in 

the FAR. The threshold for applicability 

of the Morocco Free Trade Agreement is 


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Federal Register / Vol. 71, No. 225 / Wednesday, November 22, 2006 / Rules and Regulations 67771 

$193,000 for supplies and services and 

$7,407,000 for construction. 

Item V—Technical Amendments 

Editorial changes are made at FAR 

15.404–1, 22.1006, 22.1304, 28.202, 

52.212–5, 52.222–43, 52.228–15, and 

52.228–16, in order to update 

references. 

Dated: November 15, 2006. 

Ralph De Stefano, 

Director, Contract Policy Division. 

Federal Acquisition Circular 

Federal Acquisition Circular (FAC) 

2005-14 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 2005-14 is effective November 

22, 2006. 

Dated: November 12, 2006. 

Shay D. Assad, 

Director, Defense Procurement and 

Acquisition Policy. 

Dated: November 8, 2006. 

Roger D. Waldron, 

Acting Senior Procurement Executive, 

General Services Administration. 

Dated: November 6, 2006. 

Tom Luedtke, 

Assistant Administrator for Procurement, 

National Aeronautics and Space 

Administration. 

[FR Doc. 06–9309 Filed 11–21–06; 8:45 am] 

BILLING CODE 6820–EP–S 

DEPARTMENT OF DEFENSE 

GENERAL SERVICES 

ADMINISTRATION 

NATIONAL AERONAUTICS AND 

SPACE ADMINISTRATION 

48 CFR Parts 2, 4, 7, and 52 

[FAC 2005–14; FAR Case 2005–015; Item 

I; Docket 2006–0020, Sequence 19] 

RIN 9000–AJ91 

Federal Acquisition Regulation; FAR 

Case 2005–015, Common Identification 

Standard for Contractors 

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 71 FR 208 on January 3, 

2006, to a final rule with changes. This 

final rule is amending the Federal 

Acquisition Regulation (FAR) to add the 

contractor personal identification 

requirements identified in the 

Homeland Security Presidential 

Directive (HSPD) 12, ‘‘Policy for a 

Common Identification Standard for 

Federal Employees and Contractors,’’

and Federal Information Processing 

Standards (FIPS) Number 201, 

‘‘Personal Identity Verification (PIV) of 

Federal Employees and Contractors,’’ as 

amended. 

DATES: Effective Date: November 22, 

2006. 

Applicability Date: This rule applies 

to solicitations and contracts issued or 

awarded on or after November 22, 2006. 

Contracts awarded before October 27, 

2005 requiring contractors to have 

routine physical access to a Federallycontrolled facility and/or routine access 

to a Federally-controlled information 

system must be modified to ensure that 

credentials are issued by October 27, 

2007, pursuant to FAR Subpart 4.13 in 

accordance with agency implementation 

of FIPS PUB 201 and OMB guidance M–

05–24, as amended. 

FOR FURTHER INFORMATION CONTACT: For 

clarification of content, contact Mr. 

Michael Jackson, Procurement Analyst, 

at (202) 208–4949. Please cite FAC 

2005–14, FAR case 2005–015. For 

information pertaining to status or 

publication schedules, contact the FAR 

Secretariat at (202) 501–4755. 

SUPPLEMENTARY INFORMATION: 

A. Background 

This final rule amends the Federal 

Acquisition Regulation to require 

contracting officers to incorporate the 

requirement for contractors to comply 

with agency verification procedures that 

implement Homeland Security 

Presidential Directive–12 (HSPD–12), 

Office of Management and Budget 

(OMB) guidance M–05–24, and Federal 

Information Processing Standards 

Publication (FIPS PUB) Number 201 

when applicable to the work to be 

performed under the contract. 

DoD, GSA, and NASA published an 

interim rule in the Federal Register at 

71 FR 208 on January 3, 2006. The 60- 

day comment period for the interim rule 

ended March 6, 2006. Five respondents 

provided comments. Most comments 

pointed out areas of concern and 

language that required clarification. The 

substantive comments are discussed 

below. 

Public Comments 

Comment: One respondent requested 

the Government clarify/elaborate on the 

requirements to have subcontractors 

properly cleared. 

Response: Implementation of 

Homeland Security Presidential 

Directive (HSPD) 12 required by OMB 

memorandum M–05–24, Policy for a 

Common Identification Standard for 

Federal Employees and Contractors, 

follows the Federal Information 

Processing Standard Publication (FIPS 

PUB) 201 when individuals under 

contract with a Federal department or 

agency, requiring routine access to 

Federally-controlled facilities and/or 

Federally-controlled information 

systems, require identity credentials 

consistent with existing agency security 

policies. The need to have contactors 

meet the requirements of FIPS PUB 201, 

including background investigations, 

applies equally to contractors and 

subcontractors to the extent that 

subcontractors require routine access to 

Federally-controlled facilities and/or 

Federally-controlled information 

systems. As such, the Councils have 

revised the final rule to add the term 

‘‘routine’’ to clarify that personal 

identity verification does not apply to 

all contractors and/or subcontractors. 

Comment: One respondent stated 

there is an overlap with Department of 

Defense Instruction (DoDI) 3020.41 

(October 3, 2005) paragraph 6.2.7.3 

which states ‘‘contingency contractor 

personnel shall be issued a standard 

Geneva Convention Card...U.S. citizens 

and selected other CDF will be issued a 

DoD Uniformed Services Identification 

and Privilege Card...’’, and points out 

that FAC 2005–07 requires agencies to 

adopt and accredit a registration process 

consistent with the identity proofing, 

registrations and accreditation 

requirements in section 2.2 of FIPS 

[PUB] 201. The respondent asks will the 

requirement in DoDI 3020.41 satisfy the 

requirements of FAC 2005–07 for 

providing a personal identity card for 

contingency contractors? The 

respondent also asks does FAC 2005–07 

duplicate or supplement the 

requirement in DoDI 3020.41 or does it 

depend on the contingency status of the 

contractor? 

Response: Those contingency 

contractor personnel who receive a 

common access card (CAC), including 

those who receive a CAC based on the 

eligibility for a Geneva Conventions 

card, must comply with the identity 

proofing and vetting requirements of 

FIPS PUB 201, as the CAC represents 

DoD’s implementation of the Personal 

Identity Verification (PIV) for Federal 


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