3988 Federal Register / Vol. 60, No. 12 / Thursday, January 19, 1995 / Proposed Rules

DEPARTMENT OF DEFENSE

GENERAL SERVICES

ADMINISTRATION

NATIONAL AERONAUTICS AND

SPACE ADMINISTRATION

48 CFR Part 32

[FAR Case 94–761]

RIN 9000–XXXX

Federal Acquisition Regulation;

Assignment of Claims

AGENCIES: Department of Defense (DOD),

General Services Administration (GSA),

and National Aeronautics and Space

Administration (NASA).

ACTION: Proposed rule.

SUMMARY: This proposed rule is issued

pursuant to the Federal Acquisition

Streamlining Act of 1994 to implement

revisions which expand the authority to

prohibit setoffs against assignees when

contractors assign a contract to a

financial institution. This regulatory

action is not subject to Office of

Management and Budget review under

Executive Order 12866, dated

September 30, 1993.

DATES: Comments should be submitted

on or before March 20, 1995 to be

considered in the formulation of a final

rule.

ADDRESSES: Interested parties should

submit written comments to: –General

Services Administration, FAR

Secretariat (VRS),–18th & F Streets,

NW., Room 4037, Washington, DC

20405.

Please cite FAR case 94–761 in all

correspondence related to this case.

FOR FURTHER INFORMATION CONTACT: Mr.

John Galbraith, Finance/Payment Team

Leader, at (703) 697–6710, in reference

to this FAR case. For general

information, contact the FAR

Secretariat, Room 4037, GSA Building,

Washington, DC 20405 (202) 501–4755.

Please cite FAR case 94–761.

SUPPLEMENTARY INFORMATION:

A. Background

The Federal Acquisition Streamlining

Act of 1994, Public Law 103–355, (the

Act) provides authorities that streamline

the acquisition process and minimize

burdensome government-unique

requirements. Major changes that can be

expected in the acquisition process as a

result of the Act’s implementation

include changes in the areas of

Commercial Item Acquisition,

Simplified Acquisition Procedures, the

Truth in Negotiations Act, and

introduction of the Federal Acquisition

Computer Network (FACNET). In order

to promptly achieve the benefits of the

provisions of the Act, the government is

issuing implementing regulations on an

expedited basis. We believe prompt

publication of proposed rules provides

the public the opportunity to participate

more fully in the process of developing

regulations.

The FAR Council is interested in an

exchange of ideas and opinions with

respect to the regulatory

implementation of the Act. For that

reason, the FAR Council is conducting

a series of public meetings. However,

the FAR Council has not scheduled a

public meeting on this rule (FAR case

94–761) because of the clarity and noncontroversial nature of the rule. If the

public believes such a meeting is

needed with respect to this rule, a letter

requesting a public meeting and

outlining the nature of the requested

meeting shall be submitted to and

received by the FAR Secretariat, Room

4037, GSA Building, Washington, DC

20405 (202) 501–4755, on or before

February 21, 1995. Please cite FAR case

94–761. The FAR Council will consider

such requests in determining whether a

public meeting on this rule should be

scheduled.

FAR Case 94–761

This notice announces FAR revisions

developed under FAR case 94–761. The

language in FAR 32.803(d) is changed to

expand the authorization of a no-setoff

commitment in contracts which are

assigned under the Act. Prior to the Act,

the no-setoff commitment could only be

included in a contract during time of

war or national emergency. Under the

Act, the inclusion of the no-setoff

commitment is based solely on whether

the President makes a determination of

need. The Act further states that each

determination of need by the President

shall be published in the Federal

Register.

The Act also resulted in a

reorganization of the United States Code

(U.S.C.) to improve the reading format.

Some parts of the U.S.C. were deleted as

a result of obsolescence, such as the

inclusion of the Atomic Energy

Commission as a designated agency

which may utilize the no-setoff

commitment in contracts. Further, the

U.S.C. reference to contracts awarded

prior to October 9, 1940, was deleted.

These changes to 41 U.S.C. 15 did not

affect the current FAR language at

Subpart 32.8.

The FAR has also been revised to

reflect the micro-purchase threshold, in

lieu of the previous floor of $1,000, for

use of the Assignment of Claims clause.

B. Regulatory Flexibility Act

This proposed rule does not

constitute a significant FAR revision

within the meaning of FAR 1.501 and

Public Law 98–577, and publication for

public comments is not required.

Therefore, the Regulatory Flexibility Act

does not apply. However, comments

from small entities concerning the

affected subpart will be considered in

accordance with 5 U.S.C. 610. Such

comments must be submitted separately

and cite 5 U.S.C. 601, et seq. (FAR case

94–761), in correspondence.

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 32

Government procurement.

Dated: January 12, 1995.

Edward Loeb,

Deputy Project Manager for the

Implementation of the Federal Acquisition

Streamlining Act of 1994.

Therefore, it is proposed that 48 CFR

Part 32 be amended as set forth below:

1. The authority citation for 48 CFR

Part 32 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).

PART 32—CONTRACT FINANCING

32.801 [Amended]

2. Section 32.801 is amended in the

definition of ‘‘Designated agency’’ by

inserting ‘‘the Department of Energy,’’

following ‘‘Federal Aviation

Administration,’’.

3. Section 32.803(d) is revised to read

as follows:

32.803 Policies.

* * * * *

(d) Any contract of a designated

agency (see 32.801), except a contract

under which full payment has been

made, may include a no-setoff

commitment only when a determination

of need is made by the President. Each

such determination of need will be

published in the Federal Register.

* * * * *

4. Section 32.806(a) is revised to read

as follows:

32.806 Contract clauses.

(a)(1) The contracting officer shall

insert the clause at 52.232–23,
Federal Register / Vol. 60, No. 12 / Thursday, January 19, 1995 / Proposed Rules 3989

Assignment of Claims, in solicitations

and contracts expected to be above the

micro-purchase threshold, unless the

contract will prohibit the assignment of

claims (see 32.803(b)). The use of the

clause is not required for purchase

orders. However, the clause may be

used in purchase orders expected to be

above the micro-purchase threshold,

that are accepted in writing by the

contractor, if such use is consistent with

agency policies and regulations.

(2) If a no-setoff commitment is to be

included in the contract (see 32.801 and

32.803(d)), the contracting officer shall

use the clause with its Alternate I.

* * * * *

[FR Doc. 95–1259 Filed 1–18–95; 8:45 am]

BILLING CODE 6820–34–P