[Federal Register Volume 62, Number 236 (Tuesday, December 9, 1997)]
[Rules and Regulations]
[Pages 64952-64953]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-31828]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Chapter I


Federal Acquisition Regulation; Small Entity Compliance Guide

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

ACTION: Small Entity Compliance Guide.

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SUMMARY: This document is issued under the joint authority of the 
Secretary of Defense, the Administrator of General Services, and the 
Administrator for the National Aeronautics and Space Administration as 
the Federal Acquisition Regulation (FAR) Council. This Small Entity 
Compliance Guide has been prepared in accordance with Section 212 of 
the Small Business Regulatory Enforcement Fairness Act of 1996 (Public 
Law 104-121). It consists of a summary of the rules appearing in 
Federal Acquisition Circular (FAC) 97-03 which amends the FAR. The 
rules marked with an asterisk (*) are those for which a final 
regulatory flexibility analysis has been prepared in accordance with 5 
U.S.C. 604. Further information regarding these rules may be obtained 
by referring to FAC 97-03 which precedes this notice. This document may 
be obtained from the Internet at http://www.arnet.gov/far.

FOR FURTHER INFORMATION CONTACT: The FAR Secretariat, (202) 501-4755.

                       List of Rules in FAC 97-03                       
------------------------------------------------------------------------
      Item                 Subject           FAR Case       Analyst     
------------------------------------------------------------------------
I...............  Part 30 Deviations......     97-014  Nelson.          
II*.............  Information Technology       96-319  Nelson.          
                   Management Reform Act                                
                   of 1996.                                             
III.............  Final Overhead               95-017  Klein.           
                   Settlement.                                          
IV*.............  Reorganization of FAR        94-772  Linfield.        
                   Part 13, Simplified                                  
                   Acquisition Procedures.                              
V...............  Reporting Trade Sanction     97-021  Linfield.        
                   Exemptions.                                          
VI..............  New Mexico Gross             97-018  Moss             
                   Receipts and                                         
                   Compensating Tax.                                    
VII.............  Compensation of Certain      96-325  Nelson.          
                   Contractor Personnel.                                
VIII............  Independent Research and     95-032  Nelson.          
                   Development/Bid and                                  
                   Proposal Costs for                                   
                   Fiscal Year 1996 and                                 
                   Beyond.                                              
IX..............  Travel Reimbursement         97-007  Nelson.          
                   (Interim).                                           
X...............  Protests to GAO.........     97-009  O'Neill.         
XI..............  Novation and Related         95-034  Klein            
                   Agreements.                                          
XII.............  Commercial Bills of          97-017  Klein            
                   Lading, Small Package                                
                   Shipments.                                           
XIII............  Standard Form 1406,          96-022  Klein            
                   Preaward Survey of                                   
                   Prospective Contractor--                             
                   Quality Assurance.                                   
XIV.............  Technical Amendments....                              
------------------------------------------------------------------------

Item I--Part 30 Deviations (FAR Case 97-014)

    This final rule amends FAR 1.402 to remove the prohibition against 
authorizing deviations from FAR Part 30, Cost Accounting Standards 
Administration, except for subsections 30.201-3 and 30.201-4, or the 
Cost Accounting Standards Board rules and regulations.

Item II--Information Technology Management Reform Act of 1996 (FAR Case 
96-319)

    The interim rule published as Item I of FAC 90-41 is converted to a 
final rule. This rule implements the Information Technology Management 
Reform Act of 1996 (Division E of Public Law 104-106). The final rule 
differs from the interim rule in that it makes a clarifying revision to 
paragraph (c) of the definition of ``information technology'' at FAR 
2.101.

Item III--Final Overhead Settlement (FAR Case 95-017)

    This final rule amends FAR Parts 4, 42, and 52 to improve the 
process of final settlement of contractor indirect cost rates under 
cost-reimbursement contracts by (1) extending the time period within 
which a contractor must submit an indirect cost rate proposal from 90 
days to 6 months after the end of the contractor's fiscal year, (2) 
permitting extensions to the 6-month time period for exceptional 
circumstances only, and (3) providing a specific reference to the 
Defense Contract Audit Agency pamphlet that contains guidance on what 
generally constitutes an adequate final indirect cost rate proposal and 
supporting data.

Item IV--Reorganization of FAR Part 13, Simplified Acquisition 
Procedures (FAR Case 94-772)

    This final rule revises FAR Part 13 to reorganize its contents in a 
more process-oriented manner and to emphasize the use of electronic 
contracting and the Governmentwide commercial purchase card. FAR Part 
52 is amended to permit agency provisions and clauses to be 
incorporated by reference in solicitations and contracts, if the full 
text of the provisions and clauses may be accessed electronically by 
prospective contractors. A new clause is added at FAR 52.213-4 for use 
in simplified acquisitions; the clause is a compilation of the required 
and most commonly used clauses that apply to simplified acquisitions, 
and may be used in lieu of individual clauses prescribed in the FAR.

Item V--Reporting Trade Sanction Exemptions (FAR Case 97-021)

    This final rule amends FAR Subpart 25.10 to eliminate requirements 
for agencies to notify Congress when exercising the authority at FAR 
25.1002(c) for exemption of certain procurements from trade sanctions 
imposed by the President. The rule instead requires agencies to notify 
the United States Trade Representative of such exemptions within 30 
days after contract award.

Item VI--New Mexico Gross Receipts and Compensating Tax (FAR Case 97-
018)

    This final rule amends FAR 29.401-6 to identify the Defense Special 
Weapons Agency as an agency that has entered into an agreement with the 
State of New Mexico regarding taxation.

Item VII--Compensation of Certain Contractor Personnel (FAR Case 96-
325)

    The interim rule published as Item XI of FAC 90-45 is converted to 
a final rule with a minor clarifying amendment at FAR 31.205-6(p)(1). 
The rule

[[Page 64953]]

implements Section 809 of the Fiscal Year 1997 National Defense 
Authorization Act (Pub. L. 104-201). Section 809 places a 
Governmentwide ceiling of $250,000 per year on allowable compensation 
costs for contractor personnel in senior management positions under 
contracts awarded during fiscal year 1997.

Item VIII--Independent Research and Development/Bid and Proposal Costs 
for Fiscal Year 1996 and Beyond (FAR Case 95-032)

    This final rule amends the cost principle at FAR 31.205-18, 
Independent Research and Development (IR&D) and Bid and Proposal (B&P) 
Costs, and deletes FAR Subpart 42.10, Negotiating Advance Agreements 
for Independent Research and Development/Bid and Proposal Costs. The 
rule removes, for fiscal year 1996 and beyond, the requirements to 
calculate or negotiate a ceiling for IR&D/B&P costs. In addition, the 
rule clarifies that costs incurred in preparing, submitting, and 
supporting offers on potential cooperative arrangements are allowable 
to the extent they are allocable, reasonable, and not otherwise 
unallowable.

Item IX--Travel Reimbursement (FAR Case 97-007)

    This interim rule amends FAR 31.205-46 to raise, from $25 to $75, 
the maximum travel expense amount that contractor personnel may claim 
without providing a supporting receipt. This change is consistent with 
a recent amendment to the Federal Travel Regulation.

Item X--Protests to GAO (FAR Case 97-009)

    This final rule amends the protest procedures at FAR 33.101 and 
33.104 to conform with revisions made to the General Accounting Office 
Bid Protest Regulations.

Item XI--Novation and Related Agreements (FAR Case 95-034)

    This final rule amends FAR Subpart 42.12 to expand and clarify 
procedures for processing novation agreements, and for determining when 
use of a novation agreement is appropriate.

Item XII--Commercial Bills of Lading, Small Package Shipments (FAR Case 
97-017)

    This final rule amends FAR 47.303-17 to raise the threshold for 
requiring receipted freight bills for small package shipments from $25 
to $100, and the maximum amount that the Government may pay for 
invoiced but unsupported transportation charges from $100 to $250. 
These increased amounts are considered to more accurately reflect 
shipping costs in today's business environment.

Item XIII--Standard Form 1406, Preaward Survey of Prospective 
Contractor--Quality Assurance (FAR Case 96-022)

    This final rule revises Standard Form 1406, Preaward Survey of 
Prospective Contractor--Quality Assurance, to delete references to 
canceled specifications, and to conform the language in the form to the 
current language in FAR Part 46.

Item XIV--Technical Amendments

    This document makes technical corrections to FAR 1.201-1, 19.811-1, 
and 42.203. Standard Forms 33, 1435, 1436, and 1437 are reissued to 
reflect changes to internal references as a result of the rewrite of 
FAR Part 15. Standard Form 279 is reissued to provide accounting for 
purchases under the commercial test.

    Dated: December 1, 1997.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.
[FR Doc. 97-31828 Filed 12-8-97; 8:45 am]
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