46324 Federal Register / Vol. 72, No. 159 / Friday, August 17, 2007 / Rules and Regulations 

DEPARTMENT OF DEFENSE 

GENERAL SERVICES 

ADMINISTRATION 

NATIONAL AERONAUTICS AND 

SPACE ADMINISTRATION 

48 CFR Chapter 1 

[Docket FAR–2007–0002, Sequence 4] 

Federal Acquisition Regulation; 

Federal Acquisition Circular 2005–19; 

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. 

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) 2005–19. A companion 

document, the Small Entity Compliance 

Guide (SECG), follows this FAC. The 

FAC, including the SECG, is available 

via the Internet at http://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 2005–19 and the 

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 2005–19 

Item Subject FAR case Analyst 

I ............ Reporting of Purchases from Overseas Sources ............................................................................ 2005–034 Murphy. 

II ........... Changes to Lobbying Restrictions ................................................................................................... 2005–035 Woodson. 

III .......... Online Representations and Certifications Application Archiving Capability .................................. 2005–025 Woodson. 

IV .......... Requirement to Purchase Approved Authentication Products and Services .................................. 2005–017 Jackson. 

V ........... Combating Trafficking in Persons (Interim) ..................................................................................... 2005–012 Woodson. 

VI .......... Emergency Acquisitions ................................................................................................................... 2005–038 Clark. 

VII ......... Small Business Credit for Alaska Native Corporations and Indian Tribes ...................................... 2004–017 Cundiff. 

VIII ........ New Designated Countries—Bulgaria, Dominican Republic, and Romania (Interim) .................... 2006–028 Murphy. 

IX .......... Online Representations and Certifications Application Review (Interim) ........................................ 2006–025 Woodson. 

X ........... Free Trade Agreements— El Salvador, Honduras, and Nicaragua ................................................ 2006–006 Murphy. 

XI .......... Free Trade Agreements—Bahrain and Guatemala ......................................................................... 2006–017 Murphy. 

XII ......... Accepting and Dispensing of $1 Coin (Interim) ............................................................................... 2006–027 Jackson. 

XIII ........ 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 2005–19 amends the FAR as 

specified below: 

Item I—Reporting of Purchases from 

Overseas Sources (FAR Case 2005–034) 

This final rule converts the interim 

rule to a final rule with a minor change. 

The interim rule amended FAR Part 25 

and added a provision (52.225–18, Place 

of Manufacture) to implement Section 

837 of Division A of the Transportation, 

Treasury, Housing and Urban 

Development, the Judiciary, the District 

of Columbia, and Independent Agencies 

Appropriations Act, 2006 (Pub. L. 109– 

115). Section 837 requires the head of 

each Federal agency to submit a report 

to Congress relating to acquisitions of 

articles, materials, or supplies that are 

manufactured outside the United States. 

The new provision requests from 

offerors necessary data regarding place 

of manufacture. The new provision will 

require an offeror to indicate whether 

the place of manufacture of the end 

products it expects to provide in 

response to the solicitation is 

predominantly inside or outside the 

United States. Whenever the place of 

manufacture for a contract is coded 

outside the United States, the 

contracting officer will be required to 

enter into FPDS the reason for buying 

items manufactured outside the United 

States. In addition, the rule clarifies 

different tests used to determine the 

country of origin (FAR 25.001) under 

the Buy American Act and the Trade 

Agreements Act. 

Item II—Changes to Lobbying 

Restrictions (FAR Case 2005–035) 

This final rule amends the FAR in 

order to be consistent with the Lobbying 

Disclosure Act of 1995 and the OMB 

Interim Final Guidance, and to improve 

clarity of the regulation through 

improved use of plain language and 

compliance with FAR drafting 

conventions. Among the changes, this 

final rule— 

Includes the new concept of 

‘‘lobbying contact’’ and brings in the 

concept of registrants under the 

Lobbying Act of 1995; 

Includes the OMB guidance that the 

term ‘‘appropriated funds’’ does not 

include profit or fee from a covered 

Federal action and that to the extent the 

contractor can demonstrate that the 

contractor has sufficient monies, other 

than Federal appropriated funds, the 

Government will assume that these 

other monies were spent for any 

influencing activities that would be 

unallowable if paid for with Federal 

appropriated funds; 

Formalizes in the regulations the 

changes that were already incorporated 

in the OMB Form Standard Form LLL, 

Disclosure of Lobbying Activities; 

Removes 31 U.S.C. 1352, Limitations 

on Payment to Influence Certain Federal 

Transactions), from the list of laws that 

are inapplicable to subcontracts for the 

acquisition of commercial item; and 

Makes the text, provisions, and 

clauses easier to understand, for both 

contracting officers and offerors/ 

contractors. 

Item III—Online Representations and 

Certifications Application Archiving 

Capability (FAR Case 2005–025) 

This final rule amends the FAR to 

eliminate confusion between the FAR 

record retention requirements at FAR 

4.803 and the requirements at FAR 

Subpart 4.12 requiring contractors to 

submit Annual Representations and 

Certifications via the Online 

Representations and Certifications 


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Federal Register / Vol. 72, No. 159 / Friday, August 17, 2007 / Rules and Regulations 46325 

Application (ORCA), a part of the 

Business Partner Network. Using ORCA 

eliminates the administrative burden for 

contractors of submitting the same 

information to various contracting 

offices, and establishes a common 

source for this information to 

procurement offices throughout the 

Government. The interim rule published 

at 71 FR 57362, September 28, 2006, is 

adopted as final without change. 

Item IV—Requirement to Purchase 

Approved Authentication Products and 

Services (FAR Case 2005–017) 

This final rule amends the Federal 

Acquisition Regulation (FAR) to address 

the acquisition of products and services 

for personal identity verification that 

comply with 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) 201, ‘‘Personal Identity 

Verification of Federal Employees and 

Contractors.’’

Item V—Combating Trafficking in 

Persons (FAR Case 2005–012) (Interim) 

This revised interim rule amends the 

Federal Acquisition Regulation (FAR) to 

implement 22 U.S.C. 7104(g). This 

statute requires that contracts must 

include a clause that authorizes the 

department or agency to terminate the 

contract, if the contractor, contractor 

employee, subcontractor, or 

subcontractor employee engages in 

trafficking in persons. To accurately 

reflect the statutory language, the 

revised interim rule provides for 

contract termination for engaging in 

severe forms of trafficking in persons or 

procurement of a commercial sex act 

during the period of performance of the 

contract, and provides for contract 

termination for use of forced labor in the 

performance of the contract. While the 

interim rule only applied to contracts 

for services (other than commercial), 

this revised interim rule applies to all 

contracts, including contracts for 

supplies, and all contracts for 

commercial items as defined at 2.101. 

Item VI—Emergency Acquisitions (FAR 

Case 2005–038) 

This final rule converts the interim 

rule published at 71 FR 38247, July 5, 

2006, to a final rule with changes. This 

final rule amends the Federal 

Acquisition Regulation (FAR) to provide 

a consolidated reference to acquisition 

flexibilities that may be used during 

emergency situations. This change 

improves the contracting officer’s ability 

to expedite acquisition of supplies and 

services during emergency situations. 

The final rule makes no change to 

existing contracting policy. 

Item VII—Small Business Credit for 

Alaska Native Corporations and Indian 

Tribes (FAR Case 2004–017) 

This final rule amends the Federal 

Acquisition Regulation (FAR) to provide 

that contractors may count subcontracts 

awarded to Alaskan Native Corporations 

(ANCs) and Indian tribes towards the 

satisfaction of goals for subcontracting 

with small business (SB) and small 

disadvantaged business (SDB) concerns, 

regardless of their size. This rule 

implements Section 702 of Pub. L. 107–

117, as amended by Section 3003 of 

Pub. L. 107–206. These changes are 

expected to increase subcontracting 

opportunities for ANCs and Indian 

tribes, and improve Government and 

contractor subcontracting performance 

with these entities. 

Item VIII—New Designated Countries—

Bulgaria, Dominican Republic, and 

Romania (FAR Case 2006–028) 

(Interim) 

This interim rule allows contracting 

officers to purchase the goods and 

services of Bulgaria, the Dominican 

Republic, and Romania without 

application of the Buy American Act if 

the acquisition is subject to the Free 

Trade Agreements. This trade agreement 

with the Dominican Republic joins the 

North American Free Trade Agreement 

(NAFTA), the Australia, Bahrain, Chile, 

Morocco, and Singapore Free Trade 

Agreements, and the CAFTA-DR with 

respect to El Salvador, Guatemala, 

Honduras, and Nicaragua, which are 

already in the FAR. The threshold for 

applicability of the Dominican 

Republic—Central America—United 

States Free Trade Agreement is $64,786 

for supplies and services (the same as 

other Free Trade Agreements to date 

except Morocco, Bahrain, Israel, and 

Canada) and $7,407,000 for construction 

(the same as all other Free Trade 

Agreements to date except NAFTA and 

Bahrain). Bulgaria and Romania have 

become parties to the World Trade 

Organization Government Procurement 

Agreement, so they are now designated 

countries. 

Item IX—Online Representations and 

Certifications Application (ORCA) 

Review (FAR Case 2006–025) (Interim) 

This interim rule amends FAR 23.406 

and 23.906, both titled Solicitation 

provision and contract clause, to revise 

the prescriptions for the use of 52.223–

9 and 52.223–14 to provide for use 

under the same circumstances as the 

prescription for use of their associated 

provisions. These revisions allow the 

proper receipt of certification 

information and ensure compliance 

with the statutory requirements of 40 

CFR Part 247 and 42 U.S.C. 11023. 

Item X—Free Trade Agreements—El 

Salvador, Honduras, and Nicaragua 

(FAR Case 2006–006) 

This final rule converts the interim 

rule published at 71 FR 36935, June 28, 

2006, to a final rule without change. 

This rule allows contracting officers to 

purchase the products of El Salvador, 

Honduras, and Nicaragua without 

application of the Buy American Act if 

the acquisition is subject to the 

Dominican Republic—Central 

America—United States Free Trade 

Agreement (CAFTA-DR). The CAFTADR took effect with respect to El 

Salvador on March 1, 2006. It took effect 

with respect to Honduras and Nicaragua 

on April 1, 2006. This agreement joins 

the North American Free Trade 

Agreement (NAFTA) and the Australia, 

Chile, Morocco, Bahrain, and Singapore 

Free Trade Agreements which are 

already in the FAR. The threshold for 

applicability of the CAFTA-DR is 

$64,786 for supplies and services, and 

$7,407,000 for construction. 

Item XI—Free Trade Agreements—

Bahrain and Guatemala (FAR Case 

2006–017) 

This final rule converts the interim 

rule published at 71 FR 67776, 

November 22, 2006, to a final rule 

without change. The rule allows 

contracting officers to purchase the 

goods and services of Bahrain and 

Guatemala without application of the 

Buy American Act if the acquisition is 

subject to the Free Trade Agreements. 

These trade agreements with Bahrain 

and Guatemala 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 that 

are already in the FAR. The threshold 

for applicability of the Dominican 

Republic—Central America—United 

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). 


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46326 Federal Register / Vol. 72, No. 159 / Friday, August 17, 2007 / Rules and Regulations 

Item XII—Accepting and Dispensing of 

$1 Coin (FAR Case 2006–027) (Interim) 

This interim rule implements the 

Presidential $1 Coin Act of 2005 (Pub. 

L. 109–145). The Presidential $1 Coin 

Act of 2005 requires the Secretary of the 

Treasury to mint and issue annually 

four new $1 coins bearing the likenesses 

of the Presidents of the United States in 

the order of their service and to 

continue to mint and issue ‘‘Sacagawea–

design’’ coins for circulation. In order to 

promote circulation of the coins, 

Section 104 of the Public Law also 

requires that Federal agencies take 

action so that, by January 1, 2008, 

entities that operate any business, 

including vending machines, on any 

premises owned by the United States or 

under the control of any agency or 

instrumentality of the United States, are 

capable of accepting and dispensing $1 

coins and that the entities display 

notices of this capability on the business 

premises. 

Item XIII—Technical Amendments 

Editorial changes are made at FAR 

31.201–5, 32.006–1, 32.006–2, 52.212–5, 

52.232–16, and 52.245–1 in order to 

update references. 

Dated: July 30, 2007 

Al Matera, 

Acting Director, Contract Policy Division. 

Federal Acquisition Circular 

Federal Acquisition Circular (FAC) 

2005–19 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 2005–19 is effective August 17, 

2007, except for Items II, IV, VI, and VII 

which are effective September 17, 2007. 

Dated: July 25, 2007. 

Shay D. Assad, 

Director, Defense Procurement and 

Acquisition Policy. 

Dated: July 18, 2007. 

George Barclay, 

Acting Senior Procurement Executive, 

General Services Administration. 

Dated: July 17, 2007. 

Sheryl Goddard, 

Acting Assistant Administrator for 

Procurement, National Aeronautics and 

Space Administration. 

[FR Doc. 07–3806 Filed 8–16–07; 8:45 am] 

BILLING CODE 6820–EP–S 

DEPARTMENT OF DEFENSE 

GENERAL SERVICES 

ADMINISTRATION 

NATIONAL AERONAUTICS AND 

SPACE ADMINISTRATION 

48 CFR Parts 1, 25, and 52 

[FAC 2005–19; FAR Case 2005–034; Item 

I; Docket 2006–0020; Sequence 9] 

RIN 9000–AK52 

Federal Acquisition Regulation; FAR 

Case 2005–034, Reporting of 

Purchases from Overseas Sources 

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 adopt as a 

final rule with changes the interim rule 

published in the Federal Register at 71 

FR 57375, September 28, 2006. This 

final rule implements 41 U.S.C. 10a, 

Buy American Act, as amended by 

Section 8306 of Public Law 110–28. 

DATES: Effective Date: August 17, 2007. 

FOR FURTHER INFORMATION CONTACT: 

Contact Ms. Meredith Murphy, 

Procurement Analyst, at (202) 208–

6925, for clarification of content. For 

information pertaining to status or 

publication schedules, contact the FAR 

Secretariat at (202) 501–4755. Please 

cite FAC 2005–19, FAR case 2005–034. 

SUPPLEMENTARY INFORMATION: 

A. Background 

This final rule implements 41 U.S.C. 

10a, which requires the head of each 

Federal agency to submit a report to 

Congress relating to acquisitions of 

articles, materials, or supplies that are 

manufactured outside the United States. 

The provision at 52.225–18 requests 

from offerors necessary data regarding 

place of manufacture. 

DoD, GSA, and NASA published an 

interim rule in the Federal Register at 

71 FR 57375, September 28, 2006. The 

60–day comment period on the interim 

rule ended on November 27, 2006. The 

Councils received one public comment. 

Comment: The respondent did not 

suggest any changes to the interim rule. 

Rather, the comment related to a 

statement in the Federal Register notice 

that the amendment is mandatory for 

solicitations issued and contracts 

awarded on or after October 1, 2006. 

The respondent considers this statement 

to be incorrect because the interim rule 

prescribes only a solicitation provision, 

which is to be incorporated in 

solicitations, not contracts. 

Response: The Federal Register notice 

states that the amendment is mandatory 

for solicitations issued and contracts 

awarded on or after October 1, 2006. 

The respondent is correct that the 

solicitation provision is used only in 

solicitations, not contracts. However, 

other aspects of the interim rule are 

applicable to contracts. The contracting 

officer is required to enter into the FPDS 

data on all contracts awarded on or after 

October 1, 2006, even if the solicitation 

did not include the new FAR provision 

at 52.225–18, Place of Manufacture. 

Section 8306 of the U.S. Troop 

Readiness, Veterans’ Care, Katrina 

Recovery, and Iraq Accountability 

Appropriations Act, 2007 (Pub. L. 110–

28), signed on May 25, 2007, amended 

the Buy American Act (41 U.S.C. 10a) to 

include an agency reporting 

requirement for acquisition of articles 

manufactured outside the United States. 

Therefore, the statutory citation at FAR 

25.004(a) is amended in this final rule 

to cite 41 U.S.C. 10a rather than Section 

837 of Division A of the Transportation, 

Treasury, Housing and Urban 

Development, the Judiciary, the District 

of Columbia, and Independent Agencies 

Appropriations Act, 2006 (Pub.L. 109–

115) and similar sections in subsequent 

appropriations acts. 

As a conforming amendment, it is 

necessary to include the new Office of 

Management and Budget (OMB) Control 

Number in FAR 1.106. In addition, a 

technical correction deletes OMB 

Control Number 9000–0023 as a control 

number associated with FAR clause 

52.225–2, because 52.225–2 no longer 

implements the Balance of Payments 

Program and OMB Control Number 

9000–0023 has expired. 

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 

DoD, GSA, and NASA 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 this 

final rule does not change the rules for 

buying, it only amends the statutory 

citation and finalizes an information 

collection requirement. It does not have 

a significant economic impact to ask 

offerors of manufactured end products 


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