12912 Federal Register / Vol. 77, No. 42 / Friday, March 2, 2012 / Rules and Regulations 

DEPARTMENT OF DEFENSE 

GENERAL SERVICES 

ADMINISTRATION 

NATIONAL AERONAUTICS AND 

SPACE ADMINISTRATION 

48 CFR Chapter 1 

[Docket FAR 2012–0080, Sequence 1] 

Federal Acquisition Regulation; 

Federal Acquisition Circular 2005–56; 

Introduction 

AGENCY: Department of Defense (DoD), 

General Services Administration (GSA), 

and National Aeronautics and Space 

Administration (NASA). 

ACTION: Summary presentation of final 

rules. 

SUMMARY: This document summarizes 

the Federal Acquisition Regulation 

(FAR) rules agreed to by the Civilian 

Agency Acquisition Council and the 

Defense Acquisition Regulations 

Council (Councils) in this Federal 

Acquisition Circular (FAC) 2005–56. 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. 

Please cite FAC 2005–56 and the 

specific FAR case numbers. For 

information pertaining to status or 

publication schedules, contact the 

Regulatory Secretariat at 202–501–4755. 

LIST OF RULES IN FAC 2005–56 

Item Subject FAR Case Analyst 

I .................................. Women-Owned Small Business (WOSB) Program ................................................................. 2010–015 Morgan 

II ................................. Proper Use and Management of Cost-Reimbursement Contracts .......................................... 2008–030 Clark 

III ................................ Requirements for Acquisitions Pursuant to Multiple-Award Contracts .................................... 2007–012 Clark 

IV ................................ Socioeconomic Program Parity ................................................................................................ 2011–004 Morgan 

V ................................. Trade Agreements Thresholds ................................................................................................. 2012–002 Davis 

VI ................................ New Designated Country (Armenia) and Other Trade Agreements Updates ......................... 2011–030 Davis 

VII ............................... Government Property ............................................................................................................... 2010–009 Glover 

VIII .............................. Technical Amendments.

SUPPLEMENTARY INFORMATION: 

Summaries for each FAR rule follow. 

For the actual revisions and/or 

amendments made by these FAR cases, 

refer to the specific item numbers and 

subject set forth in the documents 

following these item summaries. FAC 

2005–56 amends the FAR as specified 

below: 

Item I—Women-Owned Small Business 

(WOSB) Program (FAR Case 2010–015) 

This rule adopts as final, with 

changes, an interim rule published in 

the Federal Register at 76 FR 18304 on 

April 1, 2011, which provides a tool to 

assist Federal agencies in achieving the 

5 percent statutory goal for contracting 

with women-owned small businesses. 

This case is based on the Small Business 

Administration’s (SBA) regulations 

establishing the Women-Owned Small 

Business (WOSB) Program, authorized 

under section 8(m) of the Small 

Business Act (15 U.S.C. 637(m)). 

Agencies may restrict competition to 

Economically Disadvantaged WomenOwned Small Business (EDWOSB) 

concerns, for contracts assigned a North 

American Industry Classification 

Systems (NAICS) code in an industry in 

which SBA has determined that WOSBs 

are underrepresented in Federal 

procurement. For NAICS code 

industries where WOSBs are not just 

underrepresented, but substantially 

underrepresented, agencies may restrict 

competition to either EDWOSB 

concerns or to WOSB concerns eligible 

under the WOSB Program. 

EDWOSB concerns and WOSB 

concerns eligible under the WOSB 

Program must be owned and controlled 

by one or more women who are citizens 

of the United States. An EDWOSB 

concern is automatically a WOSB 

concern eligible under the WOSB 

Program. 

This rule may positively affect 

EDWOSBs that participate in Federal 

procurement in industries where SBA 

determines that WOSBs are 

underrepresented and may positively 

affect WOSBs that participate in Federal 

procurement in industries where SBA 

determines that WOSBs are 

substantially underrepresented. 

Item II—Proper Use and Management 

of Cost-Reimbursement Contracts (FAR 

Case 2008–030) 

This final rule amends the FAR to 

implement section 864 of the Duncan 

Hunter National Defense Authorization 

Act for Fiscal Year 2009 (Pub. L. 110– 

417), enacted on October 14, 2008. This 

law aligns with the President’s goal of 

reducing high-risk contracting as 

denoted in the March 4, 2009, 

Presidential Memorandum on 

Government Contracting. Section 864 of 

the law requires amending the FAR to 

address the use and management of 

cost-reimbursement contracts in the 

following three areas: 

1. Circumstances when costreimbursement contracts are 

appropriate. 

2. Acquisition plan findings to 

support the selection of a costreimbursement contract. 

3. Acquisition resources necessary to 

award and manage a costreimbursement contract. 

This rule does not impose any 

information collection requirements on 

small business. There is no significant 

impact on small businesses because this 

rule is only applicable to internal 

operating procedures of the 

Government. 

Item III—Requirements for 

Acquisitions Pursuant to MultipleAward Contracts (FAR Case 2007–012) 

This final rule adopts, with changes, 

an interim rule published in the Federal 

Register at 76 FR 14548 on March 16, 

2011, that amended the FAR to 

implement section 863 of the Duncan 

Hunter National Defense Authorization 

Act for Fiscal Year 2009 (Pub. L. 110– 

417). Section 863 requires the FAR to be 

amended to enhance competition in the 

purchase of property and services by all 

executive agencies pursuant to multipleaward contracts (including Federal 

Supply Schedules (FSS)). This final rule 

requires an FSS ordering activity to 

conduct appropriate analysis and 

document the file to determine price 

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Federal Register / Vol. 77, No. 42 / Friday, March 2, 2012 / Rules and Regulations 12913 

reasonableness when placing an order 

under a blanket purchase agreement 

(BPA) with hourly rate services. The 

final rule also removes the requirement 

for an ordering activity’s competition 

advocate to approve a contracting 

officer’s annual review of a single-award 

BPA prior to exercise of an option to 

extend the term of the BPA. This should 

benefit contractors because it removes a 

requirement that is considered to be a 

restriction on the use of FSS singleaward BPAs. 

Item IV—Socioeconomic Program 

Parity (FAR Case 2011–004) 

This rule adopts as final, with 

changes, an interim rule published in 

the Federal Register at 76 FR 14566 on 

March 16, 2011, which implemented 

section 1347 of the Small Business Jobs 

Act of 2010 (Pub. L. 111–240). Section 

1347(b) clarifies that there is no order of 

precedence among the small business 

socioeconomic programs. The FAR 

interim rule clarified the existence of 

socioeconomic parity and that 

contracting officers may exercise 

discretion when determining whether 

an acquisition will be restricted to small 

businesses participating in the 8(a) 

Business Development Program (8(a)), 

Historically Underutilized Business 

Zones (HUBZone) Program, ServiceDisabled Veteran-Owned Small 

Business (SDVOSB) Program, or the 

Women-Owned Small Business (WOSB) 

Program. This final rule may have a 

positive impact on small businesses as 

it presents the maximum practicable 

opportunity for small business concerns 

qualified under the socioeconomic 

programs to participate in the 

performance of contracts, and assist 

Federal agencies in meeting each of the 

Government’s small business 

contracting goals. 

Item V—Trade Agreements Thresholds 

(FAR Case 2012–002) 

This final rule adjusts the thresholds 

for application of the World Trade 

Organization Government Procurement 

Agreement and the Free Trade 

Agreements as determined by the 

United States Trade Representative, 

according to a formula set forth in the 

agreements. The threshold changes do 

not have significant cost or 

administrative impact, because they 

maintain the status quo by keeping pace 

with inflation. 

Item VI—New Designated Country 

(Armenia) and Other Trade Agreements 

Updates (FAR Case 2011–030) 

This final rule allows contracting 

officers to purchase the goods and 

services of Armenia without application 

of the Buy American Act if the 

acquisition is covered by the World 

Trade Organization Government 

Procurement Agreement. It also updates 

the lists of countries that are party to the 

Agreement on Trade in Civil Aircraft. 

This rule has no significant impact on 

small business concerns. 

Item VII—Government Property (FAR 

Case 2010–009) 

This final rule amends the FAR to 

clarify reporting, reutilization, and 

disposal of Government property and 

the contractor requirements under the 

Government property clause. The 

proposed rule was published on April 4, 

2011 (76 FR 18497). 

The rule specifically impacts 

contracting officers and contractors by 

clarifying disposal of Government 

property. The rule does not have a 

significant economic impact on small 

entities because the rule does not 

impose any additional requirements on 

small business. 

Item VIII—Technical Amendments 

Editorial changes are made at FAR 

19.812, 42.203, and 52.209–9. 

Dated: February 21, 2012. 

Laura Auletta, 

Director, Office of Governmentwide 

Acquisition Policy, Office of Acquisition 

Policy, Office of Governmentwide Policy. 

Federal Acquisition Circular (FAC) 2005– 

56 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 2005–56 

is effective March 2, 2012, except for Items 

I, II, III, IV, and VII which are effective April 

2, 2012. 

Dated: February 17, 2012. 

Richard Ginman, 

Director, Defense Procurement and 

Acquisition Policy. 

Dated: February 15, 2012. 

Mindy S. Connolly, CPCM, 

Chief Acquisition Officer, U.S. General 

Services Administration. 

Dated: February 15, 2012. 

William P. McNally, 

Assistant Administrator for Procurement, 

National Aeronautics and Space 

Administration. 

[FR Doc. 2012–4457 Filed 3–1–12; 8:45 am] 

BILLING CODE 6820–EP–P 

DEPARTMENT OF DEFENSE 

GENERAL SERVICES 

ADMINISTRATION 

NATIONAL AERONAUTICS AND 

SPACE ADMINISTRATION 

48 CFR Parts 1, 2, 4, 6, 13, 14, 15, 18, 

19, 26, 33, 36, 42, 52, and 53 

[FAC 2005–56; FAR Case 2010–015; Item 

I; Docket 2010–0015, Sequence 1] 

RIN 9000–AL97 

Federal Acquisition Regulation; 

Women-Owned Small Business 

(WOSB) Program 

AGENCIES: Department of Defense (DoD), 

General Services Administration (GSA), 

and National Aeronautics and Space 

Administration (NASA). 

ACTION: Final rule. 

SUMMARY: DoD, GSA, and NASA have 

adopted as final, with changes, an 

interim rule amending the Federal 

Acquisition Regulation (FAR) to 

implement the Small Business 

Administration’s regulations 

establishing the Women-Owned Small 

Business (WOSB) Program. This rule 

authorizes the restriction of competition 

for Federal contracts in certain 

industries to economically 

disadvantaged women-owned small 

business (EDWOSB) concerns or WOSB 

concerns eligible under the WOSB 

Program. 

DATES: Effective Date: April 2, 2012. 

FOR FURTHER INFORMATION CONTACT: Mr. 

Karlos Morgan, Procurement Analyst, at 

202–501–2364, for clarification of 

content. For information pertaining to 

status or publication schedules, contact 

the Regulatory Secretariat at 202–501– 

4755. Please cite FAC 2005–56, FAR 

Case 2010–015. 

SUPPLEMENTARY INFORMATION: 

I. Background 

DoD, GSA, and NASA published an 

interim rule in the Federal Register at 

76 FR 18304 on April 1, 2011, to 

implement the Small Business 

Administration (SBA) regulations at 13 

CFR part 127 and the procedures 

authorized under section 8(m) of the 

Small Business Act, Public Law 85–536, 

(15 U.S.C. 637(m)). Seven respondents 

submitted comments on the interim 

rule. All respondents expressed support 

for the WOSB Program; however, some 

revisions to the WOSB Program were 

recommended. This final rule 

incorporates changes made in response 

to public comments as well as minor 

technical corrections. 

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