12720 Federal Register / Vol. 62, No. 51 / Monday, March 17, 1997 / Rules and Regulations

ACTION: Final rule.

SUMMARY: The Civilian Agency

Acquisition Council and the Defense

Acquisition Regulations Council have

agreed on a final rule amending the

Federal Acquisition Regulation (FAR) to

address title to residual material and

certain liability provisions concerning

performance-based payments. 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: May 16, 1997.

FOR FURTHER INFORMATION CONTACT: Mr.

Jeremy Olson at (202) 501–3221 in

reference to this FAR case. For general

information, contact the FAR

Secretariat, Room 4035, GS Building,

Washington, DC 20405, (202) 501–4755.

Please cite FAC 90–46, FAR case 96–

005.

SUPPLEMENTARY INFORMATION:

A. Background

The clause at 52.232–32,

Performance-Based Payments, addresses

a method of contract financing, and was

printed in Federal Acquisition Circular

90–33, and published in the Federal

Register at 60 FR 49707, September 26,

1995. Paragraph (f), Title, of the clause

was intended to be functionally

equivalent to paragraph (d) of FAR

clause 52.232–16, Progress Payments,

which addresses another type of

contract financing. However, the topics

of title to residual material and liability

for Government-furnished property

acquired under the contract, addressed

in paragraphs (d) (6) and (7) of the

Progress Payments clause, were

inadvertently omitted from the

Performance-Based Payments clause.

This rule amends FAR 52.232–32 by

adding paragraphs (f) (6) and (7) to

address these topics.

A proposed rule was published in the

Federal Register at 61 FR 47798,

September 10, 1996. Two sources

submitted public comments. All

comments were considered in

developing the final rule.

B. Regulatory Flexibility Act

The Department of Defense, the

General Services Administration, and

the National Aeronautics and Space

Administration 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 most

contracts awarded to small entities use

simplified acquisition procedures or are

awarded on a competitive basis, and,

therefore, do not use the performancebased method of contract financing.

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 Part 52

Government procurement.

Dated: March 7, 1997.

Edward C. Loeb,

Director, Federal Acquisition Policy Division.

Therefore, 48 CFR Part 52 amended as

set forth below:

PART 52—SOLICITATION PROVISIONS

AND CONTRACT CLAUSES

1. The authority citation for 48 CFR

Part 42 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).

2. Section 52.232–32 is amended by

revising the clause date; redesignating

the heading of paragraph (f)(1) as the

heading of paragraph (f), and adding

new paragraphs (f) (6) and (7) to read as

follows:

52.232–32 Performance-Based Payments.

* * * * *

PERFORMANCE-BASED PAYMENTS (MAY

1997)

* * * * *

(f) Title. * * *

* * * * *

(6) When the Contractor completes all of

the obligations under this contract, including

liquidation of all performance-based

payments, title shall vest in the Contractor

for all property (or the proceeds thereof)

not—

(i) Delivered to, and accepted by, the

Government under this contract; or

(ii) Incorporated in supplies delivered to,

and accepted by, the Government under this

contract and to which title is vested in the

Government under this clause.

(7) The terms of this contract concerning

liability for Government-furnished property

shall not apply to property to which the

Government acquired title solely under this

clause.

* * * * *

[FR Doc. 97–6322 Filed 3–14–97; 8:45 am]

BILLING CODE 6820–EP–P

DEPARTMENT OF DEFENSE

GENERAL SERVICES

ADMINISTRATION

NATIONAL AERONAUTICS AND

SPACE ADMINISTRATION

48 CFR Parts 13 and 52

[FAC 90–46; Item XIV]

Federal Acquisition Regulation;

Technical Corrections

AGENCIES: Department of Defense (DOD),

General Services Administration (GSA),

and National Aeronautics and Space

Administration (NASA).

ACTION: Corrections.

SUMMARY: The Civilian Agency

Acquisition Council and the Defense

Acquisition Regulations Council are

issuing corrections to documents

previously published in the Federal

Register.

EFFECTIVE DATE: May 16, 1997.

FOR FURTHER INFORMATION CONTACT: FAR

Secretariat, Room 4037, GS Building,

Washington, DC 20405, (202) 501–4755.

Please cite FAC 90–46, Technical

Corrections.

Corrections

PART 13—SIMPLIFIED ACQUISITION

PROCEDURES

13.602 [Corrected]

1. At 62 FR 266, January 2, 1997, in

the third column, 13.602 is corrected in

the introductory text of paragraph (a) by

removing from the parenthetical

‘‘section 4202 of the Clinger-Cohen Act’’

and inserting ‘‘10 U.S.C. 2304 or 41

U.S.C. 253’’.

PART 52—SOLICITATION PROVISIONS

AND CONTRACT CLAUSES

2. At 61 FR 67408, December 20,

1996, in the first column of page 67422,

amendatory instruction 15 is corrected

to read as follows:

52.219–18 [Amended]

15. 52.219–18 is amended by

removing Alternate II and redesignating

Alternate III as Alternate II; and by

revising the date of the newly

designated Alternate II to read as

follows:

52.219–18 Notification of Competition

Limited to Eligible 8(a) Concerns.

* * * * *

Alternate II (DEC 1996). * * *

* * * * *
Federal Register / Vol. 62, No. 51 / Monday, March 17, 1997 / Rules and Regulations 12721

52.214–5, 52.214–7, 52.214–23, 52.214–32,

52.214–33, 52.215–9, 52.215–10, 52.215–36,

52.216–7, 52.216–8, 52.216–9, 52.216–10,

and 52.216–13 [Corrected]

3. At 61 FR 69286, December 31,

1996, remove the clause date ‘‘(FEB

1997)’’ and insert ‘‘(MAR 1997)’’ in the

following sections:

(a) On page 69293, in the middle and

third columns, sections 52.214–5,

52.214–7, 52.214–23, 52.214–32, and

52.214–33;

(b) On page 69294, in the first and

second columns, sections 52.215–9,

52.215–10, and 52.215–36;

(c) On page 69296, in all three

columns, sections 52.216–7, 52.216–8,

52.216–9, 52.216–10, and 52.216–13;

and

(d) On page 69297, in the first

column, Alternate I.

Dated: March 7, 1997.

Edward C. Loeb,

Director, Federal Acquisition Policy Division.

[FR Doc. 97–6323 Filed 3–14–97; 8:45 am]

BILLING CODE 6820–EP–P

GENERAL SERVICES

ADMINISTRATION

NATIONAL AERONAUTICS AND

SPACE ADMINISTRATION

48 CFR Chapter 1

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

notice.

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 rules

appearing in Federal Acquisition

Circular (FAC) 90–46 which amend the

FAR. The rules marked with an asterisk

(*) are those for which a 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 90–46

which precedes this notice. This

document may be obtained from the

Internet at http://www.gsa.gov/far/

SECG.

FOR FURTHER INFORMATION CONTACT:

Beverly Fayson, FAR Secretariat, (202)

501–4755.

LIST OF RULES IN FAC 90–46

Item Subject FAR Case Analyst

I ................ Gratuities ........................................................................................................................................................ 96–300 Linfield.

II ............... *Electronic Contracting .................................................................................................................................. 91–104 DeStefano.

III .............. * Office of Federal Procurement Policy Letter 93–1, Management Oversight of Service Contracting ......... 94–008 O’Neill

IV ............. Performance Incentives for Fixed-Price Contracts ........................................................................................ 93–603 DeStefano.

V .............. *Environmentally Preferable Products (Interim) ............................................................................................ 92–054B Linfield.

VI ............. Buy American Act—Construction (Grimberg Decision) ................................................................................. 91–119 Linfield.

VII ............ Collection of Historically Black Colleges and Universities/Minority Institutions Award Data ........................ 95–306 Klein.

VIII ........... Allowability of Foreign Selling Costs .............................................................................................................. 95–021 DeStefano.

IX ............. Independent Research and Development/Bid and Proposal Costs in Cooperative Agreements ................. 95–024 Olson.

X .............. *Prompt Payment .......................................................................................................................................... 91–091 Olson.

XI ............. Attorneys’ Fees in GAO Protests ................................................................................................................... 96–016 O’Neill.

XII ............ Contractors’ Purchasing Systems Reviews ................................................................................................... 94–605 Klein.

XIII ........... Performance-Based Payments ...................................................................................................................... 96–005 Olson.

Item I—Gratuities (FAR Case 96–300)

The interim rule published as Item III

of Federal Acquisition Circular (FAC)

90–40 is converted to a final rule

without change. The rule amended FAR

3.202 and 52.203–3 to exempt

solicitations and contracts which do not

exceed the simplified acquisition

threshold from the prescribed use of the

‘‘Gratuities’’ clause.

Item II—Electronic Contracting (FAR

Case 91–104)

The interim rule published as Item II

of FAC 90–29 is converted to a final rule

with amendments in Parts 5, 14, 15, and

52. The rule facilitates the use of

electronic data interchange in

Government contracting and

complements the rule published as Item

II of FAC 90–40 pertaining to the

Federal Acquisition Computer Network.

Item III—Office of Federal Procurement

Policy Letter 93–1, Management

Oversight of Service Contracting (FAR

Case 94–008)

This final rule amends FAR 37.000

and 37.102, and adds a new Subpart

37.5, to implement OFPP Policy Letter

93–1, Management Oversight of Service

Contracting. The policy letter provides

Governmentwide guiding principles

which are intended to improve the

acquisition, management, and

administration of service contracts. This

rule also amends FAR 9.505–3 and

35.017–2 to remove references to OMB

Circular A–120, Guidelines for the Use

of Advisory and Assistance Services,

which was rescinded by OMB on

November 19, 1993.

Item IV—Performance Incentives for

Fixed-Price Contracts (FAR Case 93–

603)

This final rule amends FAR Parts 16

and 52 to permit the use of award-fee

provisions as performance incentives in

fixed-price contracts.

Item V—Federal Compliance With

Right-To-Know Laws and Pollution

Prevention Requirements (FAR Case

92–054B)

This interim rule adds a new FAR

Subpart 23.10, and a new clause at

52.223–5 to implement Executive Order

(E.O.) 12856 of August 3, 1993, Federal

Compliance with Right-To-Know Laws

and Pollution Prevention Requirements.

The E.O. requires that a contract

performed on a Federal facility shall

provide that the contractor supply

information on its use of certain

hazardous or toxic substances in the