31650 Federal Register / Vol. 61, No. 120 / Thursday, June 20, 1996 / Rules and Regulations

Act for products of Caribbean Basin

countries. 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: September 30, 1995.

FOR FURTHER INFORMATION CONTACT: Mr.

Peter O’Such at (202) 501–1759 in

reference to this FAR case. For general

information, contact the FAR

Secretariat, Room 4037, GS Building,

Washington, DC 20405 (202) 501–4755.

Please cite FAC 90–39, FAR case 95–

030.

SUPPLEMENTARY INFORMATION:

A. Background

This final rule amends FAR 25.402(b)

by changing the date ‘‘1995’’ to ‘‘1996.’’

Products of Caribbean Basin countries

were to be treated as eligible products

until September 30, 1995, unless

otherwise extended by the U.S. Trade

Representative (USTR) by means of a

Federal Register notice. On October 3,

1995, the USTR published an extension

through September 30, 1996 (60 FR

51822).

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. Therefore,

the Regulatory Flexibility Act does not

apply. However, comments from small

entities concerning the affected FAR

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. (FAC 90–

39, FAR case 95–030), 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 25

Government procurement.

Dated: June 4, 1996.

Edward C. Loeb,

Director, Federal Acquisition Policy Division.

Therefore, 48 CFR Part 25 is amended

as set forth below:

PART 25—FOREIGN ACQUISITION

1. The authority citation for 48 CFR

Part 25 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).

§ 25.402 [Amended]

2. Section 25.402 is amended in the

first sentence of paragraph (b) by

removing ‘‘(see 51 FR 6964–6965,

February 27, 1986)’’; and in the second

sentence by revising ‘‘1995’’ to read

‘‘1996’’.

[FR Doc. 96–14530 Filed 6–19–96; 8:45 am]

BILLING CODE 6820–EP–P

48 CFR Parts 25 and 52

[FAC 90–39; FAR Case 92–048; Item XVI]

RIN 9000–AF83

Federal Acquisition Regulation;

Fluctuating Exchange Rates

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 to amend the

Federal Acquisition Regulation (FAR) to

provide guidance and a solicitation

provision regarding evaluation of

foreign currency offers. 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 19, 1996.

FOR FURTHER INFORMATION CONTACT: Mr.

Peter O’Such at (202) 501–1759 in

reference to this FAR case. For general

information, contact the FAR

Secretariat, Room 4037, GS Building,

Washington, DC 20405 (202) 501–4755.

Please cite FAC 90–39, FAR case 92–

048.

SUPPLEMENTARY INFORMATION:

A. Background

An amendment to FAR Subpart 25.5

and a corresponding solicitation

provision were published in the Federal

Register as a proposed rule, with a

request for comments (see 59 FR 16391,

April 6, 1994). Two responses were

received. The Council’s analysis of

those comments resulted in a revision to

the rule to delete ‘‘commercially

available’’ in the description of the

current market exchange rate used in

the evaluation of foreign currency offers.

The final rule also adds language at

25.501(b) and 52.225–4 to address

evaluation of offers in negotiated

acquisitions, when award is based on

initial offers received.

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 pertains to contracts entered into

and performed overseas and, with rare

exceptions, will affect only foreign

concerns. No comments were received

on the impact of this rule on small

entities during the public comment

period.

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 Parts 25 and

52

Government procurement.

Dated: June 4, 1996.

Edward C. Loeb,

Director, Federal Acquisition Policy Division.

Therefore, 48 CFR Parts 25 and 52 are

amended as set forth below:

1. The authority citation for 48 CFR

Parts 25 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).

PART 25—FOREIGN ACQUISITION

2. In part 25, subpart 25.5, the

heading is revised to read as follows:

Subpart 25.5—Use of Foreign Currency

3. Section 25.501 is revised to read as

follows:

25.501 Policy.

(a) Unless a specific currency is

required by international agreement or

by the Trade Agreements Act (see

25.405(d)), contracting officers shall

determine whether solicitations for

contracts to be entered into and

performed outside the United States

will require submission of offers either

in U.S. currency or in a specified foreign
Federal Register / Vol. 61, No. 120 / Thursday, June 20, 1996 / Rules and Regulations 31651

currency. In unusual circumstances, the

contracting officer may permit

submission of offers in other than a

specified currency.

(b) To ensure a fair evaluation of

offers, solicitations should generally

require all offers to be priced in the

same currency. However, if submission

of offers in other than a specified

currency is permitted, the contracting

officer shall convert the offered prices to

U.S. currency for evaluation purposes.

The contracting officer shall use the

current market exchange rate from a

commonly used source in effect on the

(1) Date of bid opening for sealed bid

acquisitions,

(2) Closing date for negotiated

acquisitions when award is based on

initial offers, or

(3) Due date for receipt of best and

final offers, for other negotiated

acquisitions.

(c) If contracts are priced in foreign

currency, agencies must ensure that

adequate funds are available to cover

currency fluctuations in order to avoid

a violation of the Anti-Deficiency Act.

4. Section 25.502 is added to read as

follows:

25.502 Solicitation provision.

The contracting officer shall insert the

provision at 52.225–4, Evaluation of

Foreign Currency Offers, in solicitations

if the use of other than a specified

currency is permitted. The contracting

officer shall insert the source of the rate

to be used in the evaluation of offers.

PART 52—SOLICITATION PROVISIONS

AND CONTRACT CLAUSES

5. Section 52.225–4 is added to read

as follows:

52.225–4 Evaluation of Foreign Currency

Offers.

As prescribed in 25.502, insert the

following provision:

EVALUATION OF FOREIGN CURRENCY

OFFERS (AUG 1996)

If offers are received in more than one

currency, offers shall be evaluated by

converting the foreign currency to United

States currency using (insert source of rate)

in effect on the (a) date of bid opening for

sealed bid acquisitions, (b) closing date for

negotiated acquisitions when award is based

on initial offers, or (c) due date for receipt of

best and final offers, for other acquisitions.

(End of provision)

[FR Doc. 96–14531 Filed 6–19–96; 8:45 am]

BILLING CODE 6820–EP–P

48 CFR Parts 28 and 52

[FAC 90–39, FAR Case 95–301, Item XVII]

RIN 9000–AG99

Federal Acquisition Regulation;

Irrevocable Letters of Credit and

Alternatives to Miller Act Bonds

AGENCIES: Department of Defense (DOD),

General Services Administration (GSA),

and National Aeronautics and Space

Administration (NASA).

ACTION: Interim rule with request for

comment.

SUMMARY: The Civilian Agency

Acquisition Council and the Defense

Acquisition Regulations Council have

agreed to an interim rule to amend the

Federal Acquisition Regulation (FAR) to

implement OFPP Policy Letter 91–4

(previously considered under FAR case

91–113, Irrevocable Letters of Credit)

and provide alternatives to Miller Act

Bonds, as required by Section 4104(b) of

the Federal Acquisition Streamlining

Act of 1994 (FASA) (Pub. L. 103–355).

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.

DATES: Effective Date: June 20,1996.

Comment Date: Comments should be

submitted to the FAR Secretariat at the

address shown below on or before

August 19, 1996 to be considered in the

formulation of a final rule.

ADDRESSES: Interested parties should

submit written comments to: General

Services Administration, FAR

Secretariat (MVRS), 18th & F Streets,

NW, Room 4035, Attn: Ms. Beverly

Fayson, Washington, DC 20405.

Please cite FAC 90–39, FAR case 95–

301 in all correspondence related to this

case.

FOR FURTHER INFORMATION CONTACT: Jack

O’Neill at (202) 501–3856 in reference to

this FAR case. For general information,

contact the FAR Secretariat, Room 4037,

GS Building, Washington, DC 20405

(202) 501–4755. Please cite FAC 90–39,

FAR case 95–301.

SUPPLEMENTARY INFORMATION:

A. Background

This interim rule amends FAR Parts

28 and 52 to provide for use of

Irrevocable Letters of Credit as an

alternative to corporate or individual

sureties as security for Miller Act bonds,

and provides alternatives to Miller Act

bonds for construction contracts valued

at $25,000 to $100,000, which are no

longer subject to the Miller Act, in

accordance with Section 4104(b)(1) of

FASA.

B. Regulatory Flexibility Act

The interim rule may 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 provides alternatives to

Miller Act bonds for construction

contracts valued at $25,000 to $100,000.

In addition, it offers Irrevocable Letters

of Credit as an alternative to surety on

Miller Act bonds for construction

contracts over $100,000. These

alternatives may be helpful to both large

and small construction contractors. An

Initial Regulatory Flexibility Analysis

(IRFA) has been prepared and will be

provided to the Chief Counsel for

Advocacy for the Small Business

Administration. A copy of the IRFA may

be obtained from the FAR Secretariat.

Comments are invited. Comments from

small entities concerning the affected

FAR 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

95–301), 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 OMB

under 44 U.S.C. 3501, et seq.

D. Determination to Issue an Interim

Rule

A determination has been made under

the authority of the Secretary of Defense

(DOD), the Administrator of General

Services (GSA), and the Administrator

of the National Aeronautics and Space

Administration (NASA) that compelling

reasons exist to promulgate this interim

rule without prior opportunity for

public comment. This action is

necessary because Section 4104(b) of the

Federal Acquisition Streamlining Act of

1994 (Public Law 103–355), regarding

Irrevocable Letters of Credit and

alternatives to Miller Act Bonds,

requires immediate implementation.

However, pursuant to Public Law 98–

577 and FAR 1.501, public comments

received in response to this interim rule

will be considered in the formation of

the final rule.

List of Subjects in 48 CFR Parts 28 and

52

Government procurement.