34058 Federal Register / Vol. 63, No. 119 / Monday, June 22, 1998 /Rules and Regulations

DEPARTMENT OF DEFENSE

GENERAL SERVICES

ADMINISTRATION

NATIONAL AERONAUTICS AND

SPACE ADMINISTRATION

48 CFR Chapter 1

Federal Acquisition Circular 97–05;

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 and corrections.

SUMMARY: This document summarizes

the Federal Acquisition Regulation

(FAR) rules issued by the Civilian

Agency Acquisition Council and the

Defense Acquisition Regulations

Council in this Federal Acquisition

Circular (FAC) 97–05. A companion

document, the Small Entity Compliance

Guide (SECG), follows this FAC. The

FAC, including the SECG, may be

located on the Internet at http://

www.arnet.gov/far.

DATES: For effective dates and comment

dates, see separate documents which

follow.

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 the

analyst whose name appears in the table

below in relation to each FAR case or

subject area. Please cite FAC 97–05 and

specific FAR case number(s). Interested

parties may also visit our website at

http://www.arnet.gov/far.

Item Subject FAR case Analyst

I .............. Subcontract Consent ........................................................................................................................ 95–011 Klein.

II ............. Availability of Specifications ............................................................................................................. 97–034 DeStefano.

III ............ Liquidated Damages ......................................................................................................................... 89–042/97–300 Moss.

IV ............ Limits on Fee for Cost-Plus-Incentive-Fee and Cost-Plus-Award-Fee Contracts ........................... 97–042 DeStefano.

V ............. Rehabilitation Act, Workers With Disabilities (Interim) ..................................................................... 96–610 O’Neill.

VI ............ Trade Agreements Thresholds ......................................................................................................... 97–044 Linfield.

VII ........... Restrictions on Purchases from Sudan ............................................................................................ 97–301 Linfield.

VIII .......... Software Copyrights ......................................................................................................................... 97–614 O’Neill.

IX ............ Travel Reimbursement ..................................................................................................................... 97–007 Nelson.

X ............. No-Cost Value Engineering Change Proposals (Interim) ................................................................ 96–011 Klein.

XI ............ Technical Amendments.

XII ........... Availability of FAR via Internet.

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.

Federal Acquisition Circular 97–05

amends the Federal Acquisition

Regulation (FAR) as specified below:

Item I—Subcontract Consent (FAR Case

95–011)

This final rule amends FAR Parts 4,

22, 35, 36, 44, and 52 to reduce

requirements for consent to subcontract.

The rule eliminates consent

requirements for contractors that have

an approved purchasing system, except

when specific contracts requiring

consent are identified by the contracting

officer; eliminates consent requirements

for fixed-price incentive contracts and

fixed-price redeterminable contracts;

and increases, to the simplified

acquisition threshold, the dollar level at

which consent requirements are

included in time-and-materials, laborhour, and letter contracts.

Item II—Availability of Specifications

(FAR Case 97–034)

This final rule amends FAR Parts 9

and 11 and the provisions at 52.211–1,

52.211–2, and 52.212–1 to update

addresses and other information

regarding the availability of

specifications, standards, and item

descriptions that may be cited in

Government solicitations and contracts.

In addition, the rule clarifies the pricing

policy regarding specifications,

standards, and commercial item

descriptions issued by GSA.

Item III—Liquidated Damages (FAR

Cases 89–042 and 97–300)

This final rule amends FAR Parts 11,

19, 52, and 53 to clarify policy on

liquidated damages and commercial

subcontracting plans pertaining to

requirements for subcontracting with

small, small disadvantaged, and

women-owned small business concerns.

The rule implements Section 304 of the

Business Opportunity Development

Reform Act of 1988 (Pub. L. 100–656)

and OFPP Policy Letter 95–1,

Subcontracting Plans for Companies

Supplying Commercial Items. The

interim rule published in FAC 84–50,

FAR case 89–042, 54 FR 30708, July 21,

1989, has been merged with this final

rule.

Item IV—Limits on Fee for Cost-PlusIncentive-Fee and Cost-Plus-Award-Fee

Contracts (FAR Case 97–042)

This final rule amends FAR Part 16 to

clarify fee limitations pertaining to costreimbursement contracts. The FAR Part

15 rewrite in FAC 97–02 eliminated

non-statutory fee limitations for costplus-incentive-fee and cost-plus-awardfee contracts. This final rule makes

conforming changes to FAR Part 16.

Item V—Rehabilitation Act, Workers

With Disabilities (FAR Case 96–610)

This interim rule amends FAR

Subpart 22.14 and the clauses at

52.212–5 and 52.222–36 to implement

revised Department of Labor regulations

regarding affirmative action to employ

and advance in employment qualified

individuals with disabilities. The dollar

threshold for use of the clause at

52.222–36 has been increased from

$2,500 to $10,000.

Item VI—Trade Agreements Thresholds

(FAR Case 97–044)

This final rule amends FAR Part 25 to

implement revised thresholds for

application of the Trade Agreements Act

and the North American Free Trade

Agreement, as published by the Office

of the United States Trade

Representative in the Federal Register

on January 14, 1998 (63 FR 2295).

Item VII—Restrictions on Purchases

from Sudan (FAR Case 97–301)

This final rule amends FAR 25.701

and the clause at 52.225–11 to add

Sudan to the list of countries whose

products are banned from importation

into the United States. This rule

implements Executive Order 13067,

dated November 3, 997.
Federal Register / Vol. 63, No. 119 / Monday, June 22, 1998 /Rules and Regulations 34059

Item VIII—Software Copyrights (FAR

Case 97–614)

This final rule amends FAR 27.405 to

add contracts for certain computer

software programs to the list of

examples of contracts for special works

to which the Government may obtain

copyrights.

Item IX—Travel Reimbursement (FAR

Case 97–007)

The interim rule published as Item IX

of FAC 97–03 is converted to a final rule

without change. The rule amends FAR

31.205–46 to increase from $25.00 to

$75.00 the threshold at which contractor

personnel must provide a receipt to

support travel expenditures.

Item X—No-Cost Value Engineering

Change Proposals (FAR Case 96–011)

This interim rule revises FAR 48.104–

3 to clarify that no-cost value

engineering change proposals (VECPs)

may be used when, in the contracting

officer’s judgment, reliance on other

VECP approaches likely would not be

more cost-effective, and the no-cost

settlement would provide adequate

consideration to the Government.

Item XI—Technical Amendments

Amendments are being made at FAR

5.201(b)(2), 8.404(a), 31.002, and

45.607–2(b) to update references and

make editorial changes.

Item XII—Availability of FAR via

Internet

The FAR, along with Federal

Acquisition Circulars and other

informational items, is available on the

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

Dated: June 11, 1998.

Edward C. Loeb,

Director, Federal Acquisition Policy Division.

June 22, 1998.

Federal Acquisition Circular (FAC)

97–05 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 97–05 are effective August 21,

1998, except for Items V, X, and XI,

which are effective June 22, 1998.

Dated: June 11, 1998.

Eleanor R. Spector,

Director, Defense Procurement.

Dated: June 11, 1998.

Ida M. Ustad,

Deputy Associate Administrator, Office of

Acquisition Policy, General Services

Administration.

Dated: June 10, 1998.

Tom Luedtke,

Deputy Associate Administrator for

Procurement, National Aeronautics and

Space Administration.

[FR Doc. 98–16111 Filed 6–19–98; 8:45 am]

BILLING CODE 6820–EP–P

DEPARTMENT OF DEFENSE

GENERAL SERVICES

ADMINISTRATION

NATIONAL AERONAUTICS AND

SPACE ADMINISTRATION

48 CFR Parts 4, 22, 35, 36, 44, and 52

[FAC 97–05; FAR Case 95–011; Item I]

RIN 9000–AH57

Federal Acquisition Regulation;

Subcontract Consent

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 have

agreed on a final rule amending the

Federal Acquisition Regulation (FAR) to

reduce requirements for consent to

subcontract. The rule eliminates the

consent requirements for contractors

that have an approved purchasing

system, except when specific

subcontracts requiring consent are

identified by the contracting officer;

eliminates consent requirements for

fixed-price incentive contracts and

fixed-price redeterminable contracts;

and increases, to the simplified

acquisition threshold, the dollar level at

which consent requirements are

included in time-and-materials, laborhour, and letter contracts. 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: August 21, 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 Klein, Procurement Analyst, at

(202) 501–3775. Please cite FAC 97–05,

FAR case 95–011.

SUPPLEMENTARY INFORMATION:

A. Background

A proposed rule was published in the

Federal Register on April 21, 1997 (62

FR 19465). Comments were received

from nine respondents. All comments

were considered in the development of

this 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 the

consent to subcontract requirement has

a very small administrative cost that is

passed along to the Government as part

of the contract price, and this rule

reduces the requirement for consent to

subcontract.

C. Paperwork Reduction Act

The Paperwork Reduction Act (44

U.S.C. 3501, et seq.) is deemed to apply

because the final rule contains

information collection requirements.

Accordingly, a request for approval of

the information collection requirements

was submitted to the Office of

Management and Budget (OMB) and

approved through June 30, 2000, under

OMB Control Number 9000–0149.

Public comments concerning this

request were invited through Federal

Register notice 62 FR 19465, April 21,

1997, and no comments were received.

List of Subjects in 48 CFR Parts 4, 22,

35, 36, 44, and 52

Government procurement.

Dated: June 11, 1998.

Edward C. Loeb,

Director, Federal Acquisition Policy Division.

Therefore, 48 CFR Parts 4, 22, 35, 36,

44, and 52 are amended as set forth

below:

1. The authority citation for 48 CFR

Parts 4, 22, 35, 6, 44, and 52 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).