Federal Register / Vol. 66, No. 7 / Wednesday, January 10, 2001 / Rules and Regulations 2139

special account with the llll [insert the

name of the financial institution]. None of

the funds in the special account shall be

mingled with other funds of the Contractor.

Withdrawals from the special account may be

made only by check of the Contractor

countersigned by the Contracting Officer or a

Government countersigning agent designated

in writing by the Contracting Officer.

* * * * *

(f) * * *

(3) If interest is required under the

contract, the Contracting Officer shall

determine a daily interest rate based on the

higher of (i) the published prime rate of the

financial institution (depository) in which

the special account is established or (ii) the

rate established by the Secretary of the

Treasury under Pub. L. 92–41 (50 U.S.C.

App. 1215(b)(2)). The Contracting Officer

shall revise the daily interest rate during the

contract period in keeping with any changes

in the cited interest rates.

* * * * *

(g) Financial institution agreement. Before

an advance payment is made under this

contract, the Contractor shall transmit to the

administering office, in the form prescribed

by the administering office, an agreement in

triplicate from the financial institution in

which the special account is established,

clearly setting forth the special character of

the account and the responsibilities of the

financial institution under the account. The

Contractor shall select a financial institution

that is a member bank of the Federal Reserve

System, an ‘‘insured’’ bank within the

meaning of the Federal Deposit Insurance

Corporation Act (12 U.S.C. 1811), or a credit

union insured by the National Credit Union

Administration.

* * * * *

(p) * * *

(11) Deposit any of its funds except in a

bank or trust company insured by the Federal

Deposit Insurance Corporation or a credit

union insured by the National Credit Union

Administration;

* * * * *

Advance Payments Without Special Account

(Mar 2001)

* * * * *

(m) * * *

(11) Deposit any of its funds except in a

bank or trust company insured by the Federal

Deposit Insurance Corporation or a credit

union insured by the National Credit Union

Administration;

* * * * *

[FR Doc. 01–13 Filed 1–9–01; 8:45 am]

BILLING CODE 6820–EP–P

DEPARTMENT OF DEFENSE

GENERAL SERVICES

ADMINISTRATION

NATIONAL AERONAUTICS AND

SPACE ADMINISTRATION

48 CFR Part 52

[FAC 97–22; FAR Case 1999–021; Item IV]

RIN 9000–AJ05

Federal Acquisition Regulation; Part 12

and Assignment of Claims

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

(Councils) have agreed on a final rule

amending the Federal Acquisition

Regulation (FAR) to add, in the contract

clause addressing terms and conditions

for commercial items, the prohibition

for a contractor to assign its rights to

receive payment in accordance with the

Assignment of Claims Act (31 U.S.C.

3727) when a third party makes

payment under the contract (e.g., use of

the Governmentwide commercial

purchase card). This prohibition is

currently in the contract clause

addressing terms and conditions

required to implement statutes or

Executive orders for commercial items.

DATES: Effective Date: March 12, 2001.

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.

Victoria Moss, Procurement Analyst, at

(202) 501–4764. Please cite FAC 97–22,

FAR case 1999–021.

SUPPLEMENTARY INFORMATION:

A. Background

Paragraph (e) of the clause at FAR

52.232–36, Payment by Third Party,

states that a contractor may not assign

its rights to receive payment under the

assignment of claims terms of the

contract if payment is made by a third

party (e.g., use of the Governmentwide

commercial purchase card). This clause

is included in paragraph (b)(25) of the

clause at FAR 52.212–5, Contract Terms

and Conditions Required to Implement

Statutes or Executive Orders—

Commercial Items.

Paragraph (b) of the clause at FAR

52.212–4, Contract Terms and

Conditions—Commercial Items, states

that a contractor may assign its rights to

receive payments due as a result of

performance of the contract, but

paragraph (b) does not include the

prohibition against the assignment of

claims if payment is made by a third

party (e.g., use of the Governmentwide

commercial purchase card). FAR

12.302(b) further states that the

contracting officer shall not tailor FAR

52.212–4(b).

The purpose of this rule is to correct

the inconsistency between FAR 52.212–

4(b) and FAR 52.212–5(b)(25). The rule

revises FAR 52.212–4(b) to add the

prohibition against the assignment of

claims when payment is made by a third

party.

This is not a significant regulatory

action, and therefore, was not subject to

review under Section 6(b) of Executive

Order 12866, Regulatory Planning and

Review, dated September 30, 1993. This

rule is not a major rule under 5 U.S.C.

804.

B. Regulatory Flexibility Act

The final 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. However, the

Councils will consider comments from

small entities concerning the affected

FAR part 52 in accordance with 5 U.S.C.

610. Interested parties must submit such

comments separately and should cite 5

U.S.C. 601, et seq. (FAC 97–22, FAR

case 1999–021), in correspondence.

C. Paperwork Reduction Act

The Paperwork Reduction Act does

not apply because the changes to the

FAR do not impose information

collection requirements that 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: December 22, 2000.

Al Matera,

Acting Director, Federal Acquisition Policy

Division.

Therefore, DoD, GSA, and NASA

amend 48 CFR part 52 as set forth

below:

PART 52—SOLICITATION PROVISIONS

AND CONTRACT CLAUSES

1. The authority citation for 48 CFR

part 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).

2. Amend section 52.212–4 by

revising the date of the clause and

paragraph (b) to read as follows:

2140 Federal Register / Vol. 66, No. 7 / Wednesday, January 10, 2001 / Rules and Regulations

52.212–4 Contract Terms and

Conditions—Commercial Items.

* * * * *

Contract Terms and Conditions—Commercial

Items (Mar 2001)

* * * * *

(b) Assignment. The Contractor or its

assignee may assign its rights to receive

payment due as a result of performance of

this contract to a bank, trust company, or

other financing institution, including any

Federal lending agency in accordance with

the Assignment of Claims Act (31 U.S.C.

3727). However, when a third party makes

payment (e.g., use of the Governmentwide

commercial purchase card), the Contractor

may not assign its rights to receive payment

under this contract.

* * * * *

[FR Doc. 01–14 Filed 1–9–01; 8:45 am]

BILLING CODE 6820–EP–P

DEPARTMENT OF DEFENSE

GENERAL SERVICES

ADMINISTRATION

NATIONAL AERONAUTICS AND

SPACE ADMINISTRATION

48 CFR Part 52

[FAC 97–22; FAR Case 1996–023; Item V]

RIN 9000–AJ06

Federal Acquisition Regulation; Clause

Flowdown-Commercial Items

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

(Councils) have agreed on a final rule

amending the Federal Acquisition

Regulation (FAR) to clarify requirements

for the inclusion of FAR clauses in

subcontracts for commercial items

awarded under contracts for other than

commercial items.

DATES: Effective Date: March 12, 2001.

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.

Victoria Moss, Procurement Analyst, at

(202) 501–4764. Please cite FAC 97–22,

FAR case 1996–023.

SUPPLEMENTARY INFORMATION:

A. Background

This final rule amends the clause at

FAR 52.244–6, Subcontracts for

Commercial Items, to revise the list of

clauses the contractor must flow down

to subcontractors and to clarify that

contractors may flow down a minimal

number of other clauses.

DoD, GSA, and NASA published a

proposed rule in the Federal Register at

62 FR 49903, September 23, 1997. Four

sources submitted comments in

response to the proposed rule. The

Councils considered all comments in

the development of the final rule.

This is not a significant regulatory

action, and therefore, was not subject to

review under Section 6(b) of Executive

Order 12866, Regulatory Planning and

Review, dated September 30, 1993. This

rule is not a major rule under 5 U.S.C.

804.

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

rule merely clarifies existing

requirements regarding the inclusion of

clauses in subcontracts for commercial

items awarded under contracts for other

than commercial items.

C. Paperwork Reduction Act

The Paperwork Reduction Act does

not apply because the changes to the

FAR do not impose information

collection requirements that 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: December 22, 2000.

Al Matera,

Acting Director, Federal Acquisition Policy

Division.

Therefore, DoD, GSA, and NASA

amend 48 CFR part 52 as set forth

below:

PART 52—SOLICITATION PROVISIONS

AND CONTRACT CLAUSES

1. The authority citation for 48 CFR

part 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).

52.213–4 [Amended]

2. Amend section 52.213–4 by

removing from the clause heading ‘‘(July

2000)’’ and adding ‘‘(Mar 2001)’’ in its

place; and be removing ‘‘(Oct 1998)’’

from paragraph (a)(2)(vi) of the clause

and adding ‘‘Mar 2001’’ in its place.

3. Amend section 52.244–6 by

revising the section heading, the

introductory text of paragraph (a), and

the clause heading; removing ‘‘, as used

in this clause,’’ from the definitions

‘‘Commercial item’’ and ‘‘Subcontract’’;

and by revising paragraph (c) to read as

follows:

52.244–6 Subcontracts for Commercial

Items.

* * * * *

Subcontracts for Commercial Items

(Mar 2001)

(a) Definitions. As used in this clause—

* * * * *

(c)(1) The following clauses shall be flowed

down to subcontracts for commercial items:

(i) 52.219–8, Utilization of Small Business

Concerns (OCT 2000) (15 U.S.C. 637(d)(2)

and (3)), in all subcontracts that offer further

subcontracting opportunities. If the

subcontract (except subcontracts to small

business concerns) exceeds $500,000

($1,000,000 for construction of any public

facility), the subcontractor must include

52.219–8 in lower tier subcontracts that offer

subcontracting opportunities.

(ii) 52.222–26, Equal Opportunity (FEB

1999) (E.O. 11246).

(iii) 52.222–35, Affirmative Action for

Disabled Veterans and Veterans of the

Vietnam Era (APR 1998) (38 U.S.C. 4212(a)).

(iv) 52.222–36, Affirmative Action for

Workers with Disabilities (JUN 1998) (29

U.S.C. 793).

(v) 52.247–64, Preference for Privately

Owned U.S.-Flagged Commercial Vessels

(JUN 2000) (46 U.S.C. Appx 1241) (flowdown

not required for subcontracts awarded

beginning May 1, 1996).

(2) While not required, the Contractor may

flow down to subcontracts for commercial

items a minimal number of additional

clauses necessary to satisfy its contractual

obligations.

* * * * *

[FR Doc. 01–15 Filed 1–9–01; 8:45 am]

BILLING CODE 6820–EP–P

DEPARTMENT OF DEFENSE

GENERAL SERVICES

ADMINISTRATION

NATIONAL AERONAUTICS AND

SPACE ADMINISTRATION

48 CFR Parts 1, 19, 22, 42, 52, and 53

[FAC 97–22; Item VI]

Federal Acquisition Regulation;

Technical Amendments

AGENCIES: Department of Defense (DoD),

General Services Administration (GSA),

and National Aeronautics and Space

Administration (NASA).

ACTION: Final rule.

SUMMARY: This document makes

amendments to the Federal Acquisition