63088 Federal Register / Vol. 72, No. 215 / Wednesday, November 7, 2007 / Rules and Regulations 

Emergency Area, in all solicitations and 

contracts that involve local area setasides. 

PART 52—SOLICITATION PROVISIONS 

AND CONTRACT CLAUSES 

■ 8. Revise section 52.212–5 in clause 

heading and paragraphs (b)(30) and 

(b)(31) to read as follows: 

52.212–5 Contract Terms and Conditions 

Required to Implement Statutes or 

Executive Orders—Commercial Items. 

* * * * * 

CONTRACT TERMS AND CONDITIONS 

REQUIRED TO IMPLEMENT STATUTES OR 

EXECUTIVE ORDERS—COMMERCIAL 

ITEMS (Nov 2007) 

* * * * * 

(b) * * * 

ll (30) 52.226–4, Notice of Disaster 

or Emergency Area Set-Aside (Nov 

2007) (42 U.S.C. 5150). 

ll (31) 52.226–5, Restrictions on 

Subcontracting Outside Disaster or 

Emergency Area (Nov 2007) (42 U.S.C. 

5150). 

* * * * * 

■ 9. Revise section 52.226–3 to read as 

follows: 

52.226—3 Disaster or Emergency Area 

Representation. 

As prescribed in 26.205(a), insert the 

following provision: 

DISASTER OR EMERGENCY AREA 

REPRESENTATION (Nov 2007) 

(a) Set-aside area. The area covered in 

this contract is: lllllllllll 

[Contracting Officer to fill in with 

definite geographic boundaries.] 

(b) Representations. The offeror 

represents that it llldoes llll 

does not reside or primarily do business 

in the set-aside area. 

(c) An offeror is considered to be 

residing or primarily doing business in 

the set-aside area if, during the last 

twelve months—

(1) The offeror had its main operating 

office in the area; and 

(2) That office generated at least half 

of the offeror’s gross revenues and 

employed at least half of the offeror’s 

permanent employees. 

(d) If the offeror does not meet the 

criteria in paragraph (c) of this 

provision, factors to be considered in 

determining whether an offeror resides 

or primarily does business in the setaside area include—

(1) Physical location(s) of the offeror’s 

permanent office(s) and date any office 

in the set-aside area(s) was established; 

(2) Current state licenses; 

(3) Record of past work in the setaside area(s) (e.g., how much and for 

how long); 

(4) Contractual history the offeror has 

had with subcontractors and/or 

suppliers in the set-aside area; 

(5) Percentage of the offeror’s gross 

revenues attributable to work performed 

in the set-aside area; 

(6) Number of permanent employees 

the offeror employs in the set-aside area; 

(7) Membership in local and state 

organizations in the set-aside area; and 

(8) Other evidence that establishes the 

offeror resides or primarily does 

business in the set-aside area. For 

example, sole proprietorships may 

submit utility bills and bank statements. 

(e) If the offeror represents it resides 

or primarily does business in the setaside area, the offeror shall furnish 

documentation to support its 

representation if requested by the 

Contracting Officer. The solicitation 

may require the offeror to submit with 

its offer documentation to support the 

representation. 

(End of provision) 

■ 10. Revise section 52.226–4 to read as 

follows: 

52.226—4 Notice of Disaster or 

Emergency Area Set-Aside. 

As prescribed in 26.205(b), insert the 

following clause: 

NOTICE OF DISASTER OR EMERGENCY 

AREA SET-ASIDE (Nov 2007) 

(a) Set-aside area. Offers are solicited 

only from businesses residing or 

primarily doing business in 

llllllllll [Contracting 

Officer to fill in with definite geographic 

boundaries.] Offers received from other 

businesses shall not be considered. 

(b) This set-aside is in addition to any 

small business set-aside contained in 

this contract. 

(End of clause) 

■ 11. Revise section 52.226–5 to read as 

follows: 

52.226—5 Restrictions on Subcontracting 

Outside Disaster or Emergency Area. 

As prescribed in 26.205(c), insert the 

following clause: 

RESTRICTIONS ON SUBCONTRACTING 

OUTSIDE DISASTER OR EMERGENCY 

AREA (Nov 2007) 

(a) Definitions. The definitions of the 

following terms used in this clause are 

found in the Small Business 

Administration regulations at 13 CFR 

125.6(e): cost of the contract, cost of 

contract performance incurred for 

personnel, cost of manufacturing, cost of 

materials, personnel, and 

subcontracting. 

(b) The Contractor agrees that in 

performance of the contract in the case 

of a contract for—

(1) Services (except construction). At 

least 50 percent of the cost of contract 

performance incurred for personnel 

shall be expended for employees of the 

Contractor or employees of other 

businesses residing or primarily doing 

business in the clause at FAR 52.226—

4, Notice of Disaster or Emergency Area 

Set-Aside; 

(2) Supplies (other than procurement 

from a nonmanufacturer of such 

supplies). The Contractor or employees 

of other businesses residing or primarily 

doing business in the set-aside area 

shall perform work for at least 50 

percent of the cost of manufacturing the 

supplies, not including the cost of 

materials; 

(3) General construction. The 

Contractor will perform at least 15 

percent of the cost of the contract, not 

including the cost of materials, with its 

own employees or employees of other 

businesses residing or primarily doing 

business in the set-aside area; or 

(4) Construction by special trade 

Contractors. The Contractor will 

perform at least 25 percent of the cost 

of the contract, not including the cost of 

materials, with its own employees or 

employees of other businesses residing 

or primarily doing business in the setaside area. 

(End of clause) 

[FR Doc. 07–5482 Filed 11–6–07; 8:45 am] 

BILLING CODE 6820–EP–S 

DEPARTMENT OF DEFENSE 

GENERAL SERVICES 

ADMINISTRATION 

NATIONAL AERONAUTICS AND 

SPACE ADMINISTRATION 

48 CFR Part 22 

[FAC 2005–21; FAR Case 2007–001; Item 

VII; Docket 2007–0001; Sequence 9] 

RIN 9000–AK81 

Federal Acquisition Regulation; FAR 

Case 2007–001, Labor Standards for 

Contracts Containing Construction 

Requirements—Contract Pricing 

Method References 

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 revise references to 

published pricing sources available to 

the contracting officer. The revision will 

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Federal Register / Vol. 72, No. 215 / Wednesday, November 7, 2007 / Rules and Regulations 63089 

provide greater flexibilities for 

contracting officers when selecting 

sources of pricing data. 

DATES: Effective Date: December 7, 2007. 

FOR FURTHER INFORMATION CONTACT: Mr. 

Ernest Woodson, Procurement Analyst, 

at (202) 501–3775 for clarification of 

content. The TTY Federal Relay Number 

for further information is 1–800–877–

8973. For information pertaining to 

status or publication schedules, contact 

the FAR Secretariat at (202) 501–4755. 

Please cite FAC 2005–21, FAR case 

2007–001. 

SUPPLEMENTARY INFORMATION: 

A. Background 

FAR 22.404–12(c)(2) allows the 

contracting officer to include in the 

contract a separately specified pricing 

method that permits an adjustment to 

the contract price or contract labor unit 

price at the exercise of each option to 

extend the term of the contract. 

References to published pricing sources 

are included to assist the contracting 

officer in identifying pricing data to 

support the pricing method used to 

calculate the contract pricing 

adjustment. This final rule revises the 

language at FAR 22.404–12(c)(2) that 

references published pricing sources 

available to the contracting officer. The 

FAR currently references a single 

commercial product and the intent of 

this change is to not show favor to any 

commercial product. The revised 

language deletes the specified product 

and allows the contracting officer to 

choose any commercial product. 

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 Regulatory Flexibility Act does 

not apply to this rule. This 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 22 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 2005–21, FAR case 2007–

001), 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 22 

Government procurement. 

Dated: October 31, 2007. 

Al Matera, 

Director, Office of Acquisition Policy. 

■ Therefore, DoD, GSA, and NASA 

amend 48 CFR part 22 as set forth 

below: 

PART 22—APPLICATION OF LABOR 

LAWS TO GOVERNMENT 

ACQUISITIONS 

■ 1. The authority citation for 48 CFR 

part 22 continues to read as follows: 

Authority: 40 U.S.C. 121(c); 10 U.S.C. 

chapter 137; and 42 U.S.C. 2473(c). 

■ 2. Amend section 22.404–12 by 

revising the third sentence of paragraph 

(c)(2) to read as follows: 

22.404–12 Labor standards for contracts 

containing construction requirements and 

option provisions that extend the term of 

the contract. 

* * * * * 

(c) * * * 

(2) * * * An example of a contract 

pricing method that the contracting 

officer might separately specify is 

incorporation in the solicitation and 

resulting contract of the pricing data 

from an annually published unit pricing 

book (e.g., the U.S. Army ComputerAided Cost Estimating System or similar 

commercial product), which is 

multiplied in the contract by a factor 

proposed by the contractor (e.g., .95 or 

1.1). * * * 

* * * * * 

[FR Doc. 07–5483 Filed 11–6–07; 8:45 am] 

BILLING CODE 6820–EP–S 

DEPARTMENT OF DEFENSE 

GENERAL SERVICES 

ADMINISTRATION 

NATIONAL AERONAUTICS AND 

SPACE ADMINISTRATION 

48 CFR Parts 1, 25, 52, and 53 

[FAC 2005–21; Item VIII; Docket FAR–2007–

0003; Sequence 3] 

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 

Regulation (FAR) in order to make 

editorial changes. 

DATES: Effective Date: November 7, 

2007. 

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. Please 

cite FAC 2005–21, Technical 

Amendments. 

List of Subjects in 48 CFR Parts 1, 25, 

52, and 53 

Government procurement. 

Dated: October 31, 2007. 

Al Matera, 

Director, Office of Acquisition Policy. 

■ Therefore, DoD, GSA, and NASA 

amend 48 CFR parts 1, 25, 52, and 53 

as set forth below: 

■ 1. The authority citation for 48 CFR 

parts 1, 25, 52, and 53 continues to read 

as follows: 

Authority: 40 U.S.C. 121(c); 10 U.S.C. 

chapter 137; and 42 U.S.C. 2473(c). 

PART 1—FEDERAL ACQUISITION 

REGULATIONS SYSTEM 

1.106 [Amended] 

■ 2. Amend section 1.106 by removing 

FAR Segments 52.210–8 with OMB 

Control Number ‘‘9000–0018’’, 52.210–9 

with OMB Control Number ‘‘9000–

0016’’, 52.210–10 with OMB Control 

Number ‘‘9000–0017’’, and 52.212–1 

and 52.212–2 with OMB Control 

Number ‘‘9000–0043’’; and adding, in 

numerical order, FAR Segments 52.211–

8 and 52.211–9 with OMB Control 

Number ‘‘9000–0043’’. 

PART 25—FOREIGN ACQUISITION 

25.003 [Amended] 

■ 3. Amend section 25.003 in the 

definition ‘‘Caribbean Basin country end 

product’’ by removing from paragraph 

(1)(ii)(B) ‘‘http:// 

www.customs.ustreas.gov/impoexpo/ 

impoexpo.htm’’ and adding ‘‘http:// 

www.usitc.gov/tata/hts/’’ in its place. 

PART 52—SOLICITATION PROVISIONS 

AND CONTRACT CLAUSES 

52.212–5 [Amended] 

■ 4. Amend section 52.212–5 by—

■ a. Revising date of the clause to read 

‘‘(Nov 2007)’’; 

■ b. Removing from paragraph (b)(8)(i) 

‘‘(Sep 2007)’’ and adding ‘‘(Nov 2007)’’

in its place; and 

■ c. Removing from paragraph (b)(28) 

‘‘(Aug 2007)’’ and adding ‘‘(Nov 2007)’’

in its place. 

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