53990 Federal Register / Vol. 73, No. 181 / Wednesday, September 17, 2008 / Rules and Regulations 

DEPARTMENT OF DEFENSE 

GENERAL SERVICES 

ADMINISTRATION 

NATIONAL AERONAUTICS AND 

SPACE ADMINISTRATION 

48 CFR Chapter 1 

[Docket FAR 2008–0003, Sequence 2] 

Federal Acquisition Regulation; 

Federal Acquisition Circular 2005–27; 

Introduction 

AGENCIES: Department of Defense (DoD), 

General Services Administration (GSA), 

and National Aeronautics and Space 

Administration (NASA). 

ACTION: Summary presentation of rules. 

SUMMARY: This document summarizes 

the Federal Acquisition Regulation 

(FAR) rules agreed to by the Civilian 

Agency Acquisition Council and the 

Defense Acquisition Regulations 

Council in this Federal Acquisition 

Circular (FAC) 2005–27. A companion 

document, the Small Entity Compliance 

Guide (SECG), follows this FAC. The 

FAC, including the SECG, is available 

via the Internet at http:// 

www.regulations.gov. 

DATES: For effective dates and comment 

dates, see separate documents, which 

follow. 

FOR FURTHER INFORMATION CONTACT: The 

analyst whose name appears in the table 

below in relation to each FAR case. 

Please cite FAC 2005–27 and the 

specific FAR case numbers. For 

information pertaining to status or 

publication schedules, contact the FAR 

Secretariat at (202) 501–4755. 

LIST OF RULES IN FAC 2005–27 

Item Subject FAR case Analyst 

I ............ Correcting Statutory References Related to theHigher Education Act of 1965 .............................. 2007–020 Cundiff. 

II ........... Changing the Name of the Office of Small andDisadvantaged Business Utilization for DoD ........ 2008–001 Cundiff. 

III .......... Administrative Changes to the FPI Blanket Waiver and the JWOD Program Name ..................... 2007–015 Clark. 

IV .......... Local Community Recovery Act of 2006 ......................................................................................... 2006–014 Clark. 

V ........... Additional Requirements for Competition Advocate AnnualReports ............................................... 2007–007 Woodson. 

VI .......... Contract Debts ................................................................................................................................. 2005–018 Murphy. 

VII ......... Subcontractor Requests for Bonds .................................................................................................. 2007–022 Jackson. 

VIII ........ Extension of Authority for Use of Simplified Acquisition Procedures for Certain Commercial 

Items.

2008–002 Jackson. 

IX .......... Enhanced Competition for Task and Delivery OrderContracts—Section 843 of the Fiscal Year 

2008 National Defense Authorization Act(Interim).

2008–006 Clark. 

X ........... Online Representations and Certifications ApplicationReview ........................................................ 2006–025 Woodson. 

XI .......... Cost Accounting Standards (CAS) Administration andAssociated Federal Acquisition Regulation 

Clauses (Interim).

2007–002 Chambers. 

XII ......... CAS Administration .......................................................................................................................... 2006–004 Chambers. 

XIII ........ Accepting and Dispensing of $1 Coin ............................................................................................. 2006–027 Jackson. 

XIV ....... Technical Amendments ...................................................................................................................

SUPPLEMENTARY INFORMATION: 

Summaries for each FAR rule follow. 

For the actual revisions and/or 

amendments to these FAR cases, refer to 

the specific item number and subject set 

forth in the documents following these 

item summaries. 

FAC 2005–27 amends the FAR as 

specified below: 

Item I—Correcting Statutory References 

Related to the Higher Education Act of 

1965 (FAR Case 2007–020) 

This final rule amends the Federal 

Acquisition Regulation to reflect the 

correct public law citations for the 

definitions of minority institution and 

Hispanic-serving institution. The 

citations changed when the Higher 

Education Act of 1965 was amended by 

the Higher Education Amendments of 

1998. 

Item II—Changing the Name of the 

Office of Small and Disadvantaged 

Business Utilization for DoD (FAR Case 

2008–001) 

This final rule amends the Federal 

Acquisition Regulation to change the 

name of the ‘‘Office of Small and 

Disadvantaged Business Utilization’’ to 

the ‘‘Office of Small Business Programs’’ 

for the Department of Defense. Section 

904 of the National Defense 

Authorization Act for Fiscal Year 2006, 

Pub. L. 109–163, re-designated the 

‘‘Office of Small and Disadvantaged 

Business Utilization’’. 

Item III—Administrative Changes to the 

FPI Blanket Waiver and the JWOD 

Program Name (FAR Case 2007–015) 

This final rule amends the language in 

the Federal Acquisition Regulation to 

increase the blanket waiver threshold 

for small dollar-value purchases from 

Federal Prison Industries by Federal 

agencies and also changes the name of 

the JWOD Program to the AbilityOne 

Program. These changes are 

administrative in nature and any impact 

will be minimal. 

Item IV—Local Community Recovery 

Act of 2006 (FAR Case 2006–014) 

The Civilian Agency Acquisition 

Council and the Defense Acquisition 

Regulations Council have adopted as 

final, with a minor change to the second 

interim rule, two interim rules 

amending the Federal Acquisition 

Regulation (FAR) to implement 

amendments to the Robert T. Stafford 

Disaster Relief and Emergency 

Assistance Act. The first interim rule 

was published in the Federal Register at 

71 FR 44546, August 4, 2006. The 

second interim rule was published in 

the Federal Register at 72 FR 63084, 

November 7, 2007. 

Item V—Additional Requirements for 

Competition Advocate Annual Reports 

(FAR Case 2007–007) 

This final rule amends the Federal 

Acquisition Regulation 6.502 to require 

that annual reviews by executive agency 

competition advocates be provided in 

writing to both the agency senior 

procurement executive and the agency 

chief acquisition officer, and ensure task 

and delivery orders over $1,000,000 

issued under multiple award contracts 

are properly planned, issued, and 

comply with 8.405 and 16.505. The rule 

provides for one of several initiatives by 

the Administrator, Office of Federal 


pwalker on PROD1PC71 with RULES3
Federal Register / Vol. 73, No. 181 / Wednesday, September 17, 2008 / Rules and Regulations 53991 

Procurement Policy, to reinforce the use 

of competition and related practices for 

achieving a competitive environment. 

The rule reinvigorates the role of 

agencies’ competition advocates, 

strengthens agencies’ competition 

practices, and ensures best value for the 

taxpayer. 

Item VI—Contract Debts (FAR Case 

2005–018) 

This final rule amends and 

reorganizes FAR Subpart 32.6, Contract 

Debts, and amends associated other FAR 

coverage, based on the 

recommendations of the Department of 

Defense Contract Debt Integrated 

Process Team, to improve contract debt 

controls and procedures and to ensure 

consistency within and between 

existing regulations. FAR Subpart 32.6 

prescribes policies and procedures for 

identifying, collecting, and deferring 

collection of contract debts (including 

interest, if applicable). Throughout, the 

term ‘‘responsible official’’ has been 

replaced with the specific individual/ 

organization responsible for fulfilling 

the FAR requirement. FAR 32.601 is 

revised to specify what constitutes a 

contract debt, rather than how a contract 

debt may arise. All discussions of 

contract debt determinations are 

consolidated in FAR 32.603, including 

the responsibility of the contracting 

officer in making debt determinations. 

All discussions of the demand for 

payment are consolidated in FAR 

32.604, including the requirements for 

demand letters. All discussions of final 

decisions are consolidated in FAR 

32.605. FAR 32.606 includes all 

coverage on debt collections, including 

when responsibility should be 

transferred to the Department of 

Treasury. All discussions of interest are 

consolidated at FAR 32.608, including 

how to compute interest. The 

Government’s right to make a demand 

for payment and start the interest clock 

running under the contract is ensured, 

as is the Government’s right to make a 

demand for payment without first 

issuing a final decision of the 

contracting officer. A final decision is 

required only if the contractor disagrees 

with the demand for payment. 

Item VII—Subcontractor Requests for 

Bonds (FAR Case 2007–022) 

This final rule amends the list of laws 

inapplicable to commercial items, to 

clarify that the existing regulations at 

FAR 28.106–4, Contract clause, and 

52.228–12, Prospective Subcontractor 

Requests for Bonds, do not apply to 

commercial items. Section 806(a)(3) of 

Pub. L. 102–190, as amended by 

Sections 2091 and 8105 of Pub. L. 103– 

355 will be included in the list at FAR 

12.503(a) and 12.504(a). 

Item VIII—Extension of Authority for 

Use of Simplified Acquisition 

Procedures for Certain Commercial 

Items (FAR Case 2008–002) 

This final rule amends the Federal 

Acquisition Regulation to implement 

Section 822 of the National Defense 

Authorization Act for Fiscal Year 2008 

(Pub. L. 110–181). Section 822 amends 

Section 4202(e) of the Clinger-Cohen 

Act of 1996 (division D of Pub. L. 104– 

106; 110 Stat. 652; 10 U.S.C. 2304 note) 

by extending until January 1, 2010, the 

timeframe in which an agency may use 

simplified procedures to purchase 

commercial items in amounts greater 

than the simplified acquisition 

threshold, but not exceeding $5,500,000 

($11 million for acquisitions as 

described in 13.500(e)). 

Item IX—Enhanced Competition for 

Task and Delivery Order Contracts— 

Section 843 of the Fiscal Year 2008 

National Defense Authorization Act 

(FAR Case 2008–006) (Interim) 

This interim rule amends Federal 

Acquisition Regulation Subpart 16.5 to 

implement Section 843 of the Fiscal 

Year 2008 National Defense 

Authorization Act (Pub. L. 110–181). 

The provisions of Section 843 include: 

(1) Limitation on single award task or 

delivery order (Indefinite-Delivery 

Requirements, and Indefinite-Quantity) 

type contracts greater than $100 million; 

(2) Enhanced competition for task and 

delivery orders in excess of $5 million; 

and (3) Protest on orders on the grounds 

that the order increases the scope, 

period, maximum value of the contract 

under which the order is issued; or 

valued in excess of $10 million. FAR 

sections 16.503 and 16.504, as amended 

by this rule, are applicable to single 

award task or delivery order contracts 

awarded on or after May 27, 2008. FAR 

section 16.505, as amended by this rule, 

is applicable to orders awarded on or 

after May 27, 2008 on existing contracts 

as well as new contracts. 

Item X—Online Representations and 

Certifications Application Review (FAR 

Case 2006–025) 

This final rule adopts as final, without 

change, the interim rule published in 

the Federal Register at 72 FR 46359, 

August 17, 2007. The rule amends FAR 

23.406 and 23.906 to revise the 

prescriptions for the use of 52.223–9 

and 52.223–14 to provide for their use 

under the same circumstances as the 

prescription for use of their associated 

provisions. These revisions ensure 

compliance with the requirements of 40 

CFR part 247 and 42 U.S.C. 11023. 

Item XI—Cost Accounting Standards 

(CAS) Administration and Associated 

Federal Acquisition Regulation Clauses 

(FAR Case 2007–002) (Interim) 

The subject case is revising the 

Federal Acquisition Regulation (FAR) 

clauses concerning the administration of 

Cost Accounting Standards (CAS) to 

maintain consistency between the CAS 

rules and the FAR. 

Item XII—CAS Administration (FAR 

Case 2006–004) 

This final rule adopts, with minor 

changes, the proposed rule published in 

the Federal Register at 71 FR 58338, 

October 3, 2006, amending the Federal 

Acquisition Regulation to implement 

revisions to the regulations related to 

the administration of the Cost 

Accounting Standards as they pertain to 

contracts with foreign concerns, 

including United Kingdom concerns. 

Item XIII—Accepting and Dispensing of 

$1 Coin (FAR Case 2006–027) 

This final rule adopts, with change, 

the interim rule published in the 

Federal Register at 72 FR 46361, August 

17, 2007. This final rule implements the 

Presidential $1 Coin Act of 2005 (Pub. 

L. 109–145). The Presidential $1 Coin 

Act of 2005 requires the Secretary of the 

Treasury to mint and issue annually 

four new $1 coins bearing the likenesses 

of the Presidents of the United States in 

the order of their service and to 

continue to mint and issue ‘‘Sacagaweadesign’’ coins for circulation. In order to 

promote circulation of the coins, 

Section 104 of the Public Law also 

requires that Federal agencies take 

action so that, by January 1, 2008, 

entities that operate any business, 

including vending machines, on any 

premises owned by the United States or 

under the control of any agency or 

instrumentality of the United States, are 

capable of accepting and dispensing $1 

coins and that the entities display 

notices of this capability on the business 

premises. Pub. L. 110–147 was enacted 

to amend Section 5112(p)(1)(A) of Title 

31, United States Code, to allow an 

exception from the $1 coin dispensing 

capability requirement for those 

vending machines that do not receive 

currency denominations greater than $1. 

Contracting officers have been 

instructed in the Applicability Date of 

the preamble to modify contracts upon 

request of the contractor, to change the 

older version of the clause to the newer 

version without requiring consideration 

from the contractor. 


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53992 Federal Register / Vol. 73, No. 181 / Wednesday, September 17, 2008 / Rules and Regulations 

Item XIV—Technical Amendments 

Editorial changes are made at FAR 

15.404–1 and 52.212–5. 

Dated: September 9, 2008 

Al Matera, 

Director, Office of Acquisition Policy. 

Federal Acquisition Circular 

Federal Acquisition Circular (FAC) 

2005–27 is issued under the authority of 

the Secretary of Defense, the 

Administrator of General Services, and 

the Administrator for the National 

Aeronautics and Space Administration. 

Unless otherwise specified, all 

Federal Acquisition Regulation (FAR) 

and other directive material contained 

in FAC 2005–27 is effective October 17, 

2008, except for Items VII, VIII, IX, X, 

XIII, and XIV which are effective 

September 17, 2008. 

Dated: September 5, 2008. 

Shay D. Assad, 

Director, Defense Procurement and 

Acquisition Policy. 

Dated: September 8, 2008. 

David A. Drabkin, 

Senior Procurement Executive & Deputy Chief 

Acquisition Officer, Office of the Chief 

Acquisition Officer, U.S. General Services 

Administration. 

Dated: August 26, 2008. 

William P. McNally, 

Assistant Administrator for Procurement, 

National Aeronautics and Space 

Administration. 

[FR Doc. E8–21383 Filed 9–16–08; 8:45 am] 

BILLING CODE 6820–EP–S 

DEPARTMENT OF DEFENSE 

GENERAL SERVICES 

ADMINISTRATION 

NATIONAL AERONAUTICS AND 

SPACE ADMINISTRATION 

48 CFR Parts 2 and 52 

[FAC 2005–27; FAR Case 2007–020; Item 

I; Docket 2008–0001; Sequence 15] 

RIN 9000–AL06 

Federal Acquisition Regulation; FAR 

Case 2007–020, Correcting Statutory 

References Related to the Higher 

Education Act of 1965 

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 correct references to 

sections of the Higher Education Act of 

1965 at FAR 2.101 and 52.2. These 

sections of the Act contain the 

definitions of minority institution and 

Hispanic-serving institution. The 

citations for these sections changed 

when the Higher Education Act of 1965 

was amended by the Higher Education 

Amendments of 1998. This final rule 

updates the FAR accordingly. 

DATES: Effective Date: October 17, 2008. 

FOR FURTHER INFORMATION CONTACT: Ms. 

Rhonda Cundiff, Procurement Analyst, 

at (202) 501–0044, for clarification of 

content. For information pertaining to 

status or publication schedules, contact 

the Regulatory Secretariat at (202) 501– 

4755. Please cite FAC 2005–27, FAR 

case 2007–020. 

SUPPLEMENTARY INFORMATION: 

A. Background 

The definition of ‘‘minority 

institution’’ had been found in section 

1046 of the Higher Education Act of 

1965 (HEA) and at 20 U.S.C. 1135d– 

5(3). The Higher Education 

Amendments of 1998 redesignated 

section 1046 of the HEA as section 365. 

The Hispanic-serving Institution 

Program was authorized in section 316 

of Title III of the HEA, as amended by 

1992 amendments. In the Higher 

Education Amendments of 1998, Pub. L. 

105–244, the Hispanic-serving 

institution Program was moved into 

Title V of the HEA and reenacted, in 

that title, with all the relevant 

provisions that governed that program 

while it was part of Title III of the HEA. 

This final rule reflects these changes. 

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 Pub. L. 98–577, and 

publication for public comments is not 

required. However, the Councils will 

consider comments from small entities 

concerning the affected FAR Parts 2 and 

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 2005–27, FAR 

case 2007–020, 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 Parts 2 and 

52 

Government procurement. 

Dated: September 9, 2008. 

Al Matera, 

Director, Office of Acquisition Policy. 

■ Therefore, DoD, GSA, and NASA 

amend 48 CFR parts 2 and 52 as set 

forth below: 

■ 1. The authority citation for 48 CFR 

parts 2 and 52 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 2—DEFINITIONS OF WORDS 

AND TERMS 

■ 2. Amend section 2.101 in paragraph 

(b)(2) by revising the definition 

‘‘Minority Institution’’ to read as 

follows: 

2.101 Definitions. 

* * * * * 

(b) * * * 

(2) * * * 

Minority Institution means an 

institution of higher education meeting 

the requirements of Section 365(3) of 

the Higher Education Act of 1965 (20 

U.S.C. 1067k), including a Hispanicserving institution of higher education, 

as defined in Section 502(a) of the Act 

(20 U.S.C. 1101a). 

* * * * * 

PART 52—SOLICITATION PROVISIONS 

AND CONTRACT CLAUSES 

■ 3. Amend section 52.212–5 by 

revising the date of the clause and 

paragraph (b)(11)(i) 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—COMMERCIALS 

ITEMS (OCT 2008) 

* * * * * 

(b) * * * 

ll (11)(i) 52.219–23, Notice of Price 

Evaluation Adjustment for Small 

Disadvantaged Business Concerns (OCT 

2008) (10 U.S.C. 2323)(if the offeror elects to 

waive the adjustment, it shall so indicate in 

its offer.) 

* * * * * 


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