[Federal Register Volume 66, Number 7 (Wednesday, January 10, 2001)]
[Rules and Regulations]
[Page 2140]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-15]


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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.

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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]
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