[Federal Register Volume 62, Number 236 (Tuesday, December 9, 1997)]
[Rules and Regulations]
[Pages 64914-64915]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-31815]


-----------------------------------------------------------------------

DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 2, 5, 7, 8, 9, 12, 13, 16, 17, 19, 22, 32, 33, 34, 37, 
38, 39, 45, 46, 51, 52, and 53

[FAC 97-03; FAR Case 96-319; Item II]
RIN 9000-AH75


Federal Acquisition Regulation; Information Technology Management 
Reform Act of 1996

AGENCIES: Department of Defense (DoD), General Services Administration 
(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Interim rule adopted as final with change.

-----------------------------------------------------------------------

SUMMARY: The Civilian Agency Acquisition Council and the Defense 
Acquisition Regulations Council have agreed to adopt as final, with 
change, the interim rule published as Item I of Federal Acquisition 
Circular 90-41 on August 8, 1996. The rule amends the Federal 
Acquisition Regulation (FAR) to implement the Information Technology 
Management Reform Act (ITMRA) of 1996, Division E of Pub. L. 104-106. 
This regulatory action was not subject to Office of Management and 
Budget review under Executive Order 12866, dated September 30, 1993, 
and is not a major rule under 5 U.S.C. 804.

EFFECTIVE DATE: February 9, 1998.

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 97-03, FAR case 96-319.

SUPPLEMENTARY INFORMATION:

A. Background

    An interim rule was published in the Federal Register at 61 FR 
41467, August 8, 1996. Twelve comments from four respondents were 
received during the public comment period. All comments were considered 
in the development of the final rule. In response to public comments on 
the interim rule, the definition of ``information technology'' at FAR 
2.101 has been clarified.

B. Regulatory Flexibility Act

    A Final Regulatory Flexibility Analysis (FRFA) has been prepared 
and will be provided to the Chief Counsel for Advocacy of the Small 
Business Administration. The analysis is summarized as follows:

    ITMRA requires a simplified, clear, and understandable process 
in the FAR for acquiring information technology. No issues were 
raised in response to the Initial Regulatory Flexibility Analysis. 
The rule applies to all entities, large and small, that propose to 
perform, or are awarded, Government contracts for information 
technology. There are no statistics available on the exact number of 
small businesses that submit bids or proposals for contracts for 
information technology. However, based on information provided by 
the Federal Procurement Data System, a total of 29,879 awards were 
made to small businesses during fiscal year 1996 under information 
technology product codes with a total dollar value of 
$4,443,176,000. The rule imposes no new reporting, recordkeeping, or 
other compliance requirements. There are no practical alternatives 
that will effectively implement ITMRA. The final rule simplifies and 
streamlines the process of acquiring information technology, and 
minimizes the economic burden of such acquisitions, while expanding 
opportunities for small entities to participate in Federal 
information technology contracts.

    A copy of the FRFA may be obtained from the FAR Secretariat.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the changes to 
the FAR do not impose recordkeeping or information collection 
requirements, or collections of information from offerors, contractors, 
or members of the public which 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, 5, 7, 8, 9, 12, 13, 16, 17, 19, 22, 
32, 33, 34, 37, 38, 39, 45, 46, 51, 52, and 53

    Government procurement.

    Dated: December 1, 1997.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.

Interim Rule Adopted as Final With Change

    Accordingly, the interim rule amending 48 CFR Parts 2, 5, 7, 8, 9, 
12, 13, 16, 17, 19, 22, 32, 33, 34, 37, 38, 39, 45, 46, 51, 52, and 53, 
which was published at 61 FR 41467, August 8, 1996, is adopted as a 
final rule with the following change:

PART 2--DEFINITIONS OF WORDS AND TERMS

    1. The authority citation for 48 CFR Part 2 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).


[[Page 64915]]


    2. Section 2.101 is amended in the definition of ``Information 
technology'' by revising paragraph (c) to read as follows:


2.101  Definitions.

* * * * *
    Information technology * * *
* * * * *
    (c) The term information technology does not include--
    (1) Any equipment that is acquired by a contractor incidental to a 
contract; or
    (2) Any equipment that contains imbedded information technology 
that is used as an integral part of the product, but the principal 
function of which is not the acquisition, storage, manipulation, 
management, movement, control, display, switching, interchange, 
transmission, or reception of data or information. For example, HVAC 
(heating, ventilation, and air conditioning) equipment such as 
thermostats or temperature control devices, and medical equipment where 
information technology is integral to its operation, are not 
information technology.
* * * * *
[FR Doc. 97-31815 Filed 12-8-97; 8:45 am]
BILLING CODE 6820-EP-P