54014 Federal Register / Vol. 73, No. 181 / Wednesday, September 17, 2008 / Rules and Regulations 

comply consistently with CAS 401 and 402, 

it agrees that the contract price shall be 

adjusted, together with interest, if such 

failure results in increased cost paid by the 

U.S. Government. * * * The Contractor agrees 

that the Disclosure Statement or other form 

permitted, pursuant to 48 CFR 9903.202–1(e) 

shall be available for inspection and use by 

authorized representatives of the United 

States Government. 

(End of clause) 

[FR Doc. E8–21365 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 37 and 52 

[FAC 2005–27; FAR Case 2006–027; Item 

XIII;Docket 2007–0001; Sequence 5] 

RIN 9000–AK54 

Federal Acquisition Regulation; FAR 

Case 2006–027, Accepting and 

Dispensing of $1 Coin 

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 to adopt as final, 

with change, the interim rule amending 

the Federal Acquisition Regulation 

(FAR) to implement Section 104 of the 

Presidential $1 Coin Act of 2005. 

Section 104 requires that entities that 

operate any business on any premises 

owned or controlled by the United 

States be capable of accepting and 

dispensing $1 coins on January 1, 2008. 

Subsequent to this, Pub. L. 110–147 

amended 31 U.S.C. 5112(p)(1)(A), to 

allow an exception from the $1 coin 

dispensing capability requirement for 

vending machines that do not receive 

currency denominations greater than $1. 

DATES: Effective Date: September 17, 

2008. 

Applicability Date: This rule applies 

to all service contracts that involve 

business operations conducted in U.S. 

coins and currency, including vending 

machines, on any premises owned by 

the United States or under the control 

of any agency or instrumentality of the 

United States. The clause shall be 

placed in all such solicitations and 

contracts on and after the effective date 

of this rule. Those applicable contracts 

in existence before January 1, 2008, that 

do not already have the clause shall be 

modified to include the clause; those 

contracts that have the August 2007 

edition of the clause shall be modified 

if the contractor requests, to include the 

newer version contained in this FAC, 

without requiring consideration from 

the contractor. 

FOR FURTHER INFORMATION CONTACT: Mr. 

Michael Jackson, Procurement Analyst, 

at (202) 208–4949 for clarification of 

content. For information pertaining to 

status or publication schedules, contact 

the FAR Secretariat at (202) 501–4755. 

Please cite FAC 2005–27, FAR case 

2006–027. 

SUPPLEMENTARY INFORMATION: 

A. Background 

This final rule amends the FAR to 

implement 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 

Presidents of the United States in the 

order of their service and to continue to 

mint and issue ‘‘Sacagawea-design’’ 

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. Subsequent to the passage of 

the Presidential Coin Act, Pub. L. 110– 

147 amended 31 U.S.C. 5112(p)(1)(A), to 

allow an exception from the $1 coin 

dispensing capability requirement for 

vending machines that do not receive 

currency denominations greater than $1. 

This will require modification of 

existing covered contracts whose period 

of performance extends beyond the 

January 1, 2008 date in order to assure 

compliance with Section 104 of the Act, 

as well as compliance with Pub. L. 110– 

147. 

DoD, GSA, and NASA published an 

interim rule in the Federal Register at 

72 FR 46361, August 17, 2007. The 60– 

day comment period for the interim rule 

ended October 16, 2007. Three 

respondents provided comments. The 

comments are discussed below. 

Public Comments 

Comment 1: One respondent asked 

why does the FAR matrix show that 

52.237–11 is applicable to R&D 

contracts and to A&E contracts? 

R&D contracts and A&E contracts are 

usually paid by electronic funds 

transfer. There is usually no cash 

payment involved in such contracts. 

Therefore, why would contractors who 

provide R&D or A&E services have to be 

capable of accepting dollar coins? 

Response: The inclusion of R&D and 

A&E contracts in the FAR matrix as 

applicable to 52.237–11 was an 

inadvertent error. 

Comment 2: One respondent stated in 

order to implement these widespread 

and extensive changes to vending 

machines, our members simply need 

more time. Contrary to the statement 

contained in the Federal Register 

notice, this interim rule does have a 

significant economic impact. It is not 

accurate to state that ‘‘receiving and 

dispensing the new coins as part of 

business operations should not add to 

workload or expense’’ (72 FR 46361, 

August 17, 2007). Accordingly, we 

strongly encourage the Councils to 

account for both the workload and 

expense by extending the compliance 

date to July 1, 2008. 

Response: Section 104 of the 

Presidential $1 Coin Act of 2005 (31 

U.S.C. 5112(p)(1)), established the 

effective date for this provision to be 

January 1, 2008. The effect of this clause 

is merely to implement the provision of 

law. Notwithstanding, the provision of 

law cannot be modified under these 

circumstances without further 

consideration by Congress, who passed 

the provision of law. Pub. L. 110–147 

amended section 5112(p)(1)(A) of title 

31, U.S.C., to allow an exception from 

the $1 coin dispensing capability 

requirement for vending machines that 

do not receive currency denominations 

greater than $1. Thus, the exception of 

the law provides relief for those vending 

machines. 

Comment 3: One respondent 

requested an amendment to the interim 

rule published in the Federal Register, 

August 17, 2007, amending 48 CFR 52 

(Solicitation Provisions and Contract 

Clauses), Section 52.237–11 (Accepting 

and Dispensing of $1 Coin) to exempt 

vending machines on Federal property 

that do not accept currency 

denominations above $1 from the 

requirement to dispense dollar coins. 

Response: The very intent of the 

statute is to require those businesses 

and instrumentalities operating on 

Federal property to be able to accept 

and dispense the $1 coin if that business 

or instrumentality is conducting a 

business whereby coins or currency is 

exchanged. However, Pub. L. 110–147 

amended section 5112(p)(1)(A) of title 


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Federal Register / Vol. 73, No. 181 / Wednesday, September 17, 2008 / Rules and Regulations 54015 

31, U.S.C., to allow an exception from 

the $1 coin dispensing capability 

requirement for vending machines that 

do not receive currency denominations 

greater than $1. 

Comment 4: One commenter stated 

the key paragraph within Section 104, 

(p)(1) is Paragraph A. It states: ‘‘any 

business operations conducted by any 

such agency, instrumentality, system, or 

entity that involve coins or currency 

will be fully capable of accepting and 

dispensing $1 coins in connection with 

such operations;’’. 

Commenter stated that they believe it 

is perfectly reasonable to read this 

paragraph to mean that a vending 

operation on Federal property in which 

every vending machine accepts dollar 

coins, every bill changer in the 

operation dispenses dollar coins, and 

every machine that accepts 

denominations above $1 dispenses 

dollar coins in change is in full 

compliance with this paragraph. 

Response: Due to the amended 

language at Pub. L. 110–147, the 

commenter is correct. 

Comment 5: One commenter stated 

we note that Paragraph (B) requires the 

display of signs and notices denoting $1 

coin capability, ‘‘including on each 

vending machine.’’ Yet Paragraph (A), 

the key paragraph that imposes the 

general coin acceptance and dispensing 

obligation, lacks this individual vending 

machine requirement. Again, if 

Congress truly intended to require every 

vending machine to dispense dollar 

coins in change, it could easily have 

stated this in the key Paragraph, 

Paragraph A. It did not. 

Response: See response to comment 3. 

Comment 6: One commenter stated 

requiring vending machines that do not 

accept denominations higher than $1 to 

dispense dollar coins does not serve the 

purpose of Section 104 of the 

Presidential Dollar Coin Act of 2005. 

The purpose of Section 104 of the Act, 

requiring that dollar coins be available 

on all Federal property and that signs be 

posted denoting such availability, is to 

promote wider distribution and use of 

dollar coins in commerce. The Preamble 

to Pub. L. 109–145, enacted January 4, 

2005, states that one of the purposes of 

the Law is ‘‘to improve circulation of 

the $1 coin.’’ Requiring machines that 

accept nothing higher than the $1 

denomination to be modified to 

dispense dollar coins would not 

improve circulation of dollar coins. 

Instead, this requirement would involve 

needless expense. 

Response: Congress did recognize that 

requiring vending machines that did not 

receive denominations greater than $1 

coins, but programmed to dispense $1 

coins would impair the public’s ability 

to circulate $1 coins. Thus, Pub. L. 110– 

147 amended section 5112(p)(1)(A) of 

title 31, U.S.C., to allow an exception 

from the $1 coin dispensing capability 

requirement for vending machines that 

do not receive currency denominations 

greater than $1. 

In reviewing the interim FAR 

language, the reference to ‘‘higher than 

$1’’ in FAR Clauses 37.116–1 

Presidential $1 Coin Act of 2005 (new 

inserted text) and 52.237–11 ‘‘Accepting 

and Dispensing $1 Coin’’ paragraph ‘‘b’’, 

be modified to change the wording 

‘‘...higher than $1...’’ to read as 

‘‘...greater than $1...’’ since this is more 

consistent with the reference to a 

currency denomination. 

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 

accepting $1 coins as part of business 

operations should not add to workload 

or expense. While it is relatively easy 

for beverage and other vending 

machines to accept $1 coins, 

configuring the machines to dispense 

the $1 coin as change is much more 

difficult. For several years, most 

vending machines have been fully 

capable of accepting the $1 coin. 

However, due to the vending price of 

beverages, machines usually have no 

reason to dispense $1 coins as change 

during a normal transaction, and 

therefore, are not currently set up for 

this transaction. In order to dispense a 

$1 coin, each machine would need to be 

individually serviced and retrofitted. In 

the case of coin mechanisms 

manufactured before the year 2000, 

these mechanisms will have to be 

replaced. The cost of a new mechanism 

is approximately $300 - $400. In the 

case of mechanisms manufactured after 

the year 2000, a new coin cassette will 

cost from $20 - $40. However, due to 

Congress amending the statute and 

making the $1 coin dispensing 

requirement only apply to those 

machines that receive currency 

denominations greater than $1, this 

eases the burden on industry. 

The National Automatic 

Merchandising Association (NAMA) is 

the agent that took the lead in causing 

the amendment to the original statute. 

The December 2007 amendment made 

an exception to the rule and added that 

vending machines that did not receive 

denominations over $1 were released 

from the requirement of dispensing the 

$1 coin. NAMA informed that most of 

their members are small businesses. 

NAMA is of the belief that the December 

2007 amendment to exempt vending 

machines that do not take greater than 

$1 from the dispensing requirement will 

protect most small businesses. For those 

machines that take denominations 

greater than $1, these machines are 

relatively new and already accept the $1 

coin and would have to be refitted with 

dispensers that would cost about $40. 

For those older machines that take 

denominations above $1, these 

machines will require new parts at a 

cost of about $400.00. NAMA is of the 

belief that most of the machines that 

take denominations greater than $1 are 

of the newer variety and therefore can 

be brought into compliance with the 

dispensing $1 coin requirement at an 

expense of $40. For vending machines 

already configured to accept and 

dispense the Sacagawea-design $1 coin, 

which has been in circulation since 

January 2000, there will be no need to 

change or modify equipment. 

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. 

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 37 and 

52 

Government procurement. 

Dated: September 9, 2008 

Al Matera, 

Director, Office of Acquisition Policy. 

■ Accordingly, the interim rule 

amending 48 CFR parts 37 and 52 which 

was published in the Federal Register at 

72 FR 46361, August 17, 2007, is 

adopted as a final rule with the 

following changes: 

■ 1. The authority citation for 48 CFR 

parts 37 and 52 continues to read as 

follows: 


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54016 Federal Register / Vol. 73, No. 181 / Wednesday, September 17, 2008 / Rules and Regulations 

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

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

PART 37—SERVICE CONTRACTING 

■ 2. Amend section 37.116–1 by 

removing from the second sentence the 

words ‘‘United States’’; and adding a 

sentence to the end of the paragraph to 

read as follows: 

37.116–1 Presidential $1 Coin Act of 2005. 

* * * Pub. L. 110–147 amended 31 

U.S.C. 5112(p)(1)(A) to allow an 

exception from the $1 coin dispensing 

capability requirement for those 

vending machines that do not receive 

currency denominations greater than $1. 

PART 52—SOLICITATION PROVISIONS 

AND CONTRACT CLAUSES 

■ 3. Amend section 52.212–5 by 

revising the date of the clause and 

paragraph (c)(7) 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 (SEP 2008). 

* * * * * 

(c) * * * 

(7) 52.237–11, Accepting and Dispensing of 

$1 Coin (SEP 2008) (31 U.S.C. 5112(p)(1)). 

* * * * * 

■ 4. Amend section 52.237–11 by 

revising the date of the clause and 

paragraph (b) to read as follows: 

52.237–11 Accepting and Dispensing of $1 

Coin. 

* * * * * 

ACCEPTING AND DISPENSING OF $1 

COIN (SEP 2008) 

* * * * * 

(b) All business operations conducted 

under this contract that involve coins or 

currency, including vending machines, shall 

be fully capable of— 

(1) Accepting $1 coins in connection with 

such operations; and 

(2) Dispensing $1 coins in connection with 

such operations, unless the vending machine 

does not receive currency denominations 

greater than $1. 

* * * * * 

(End of clause) 

[FR Doc. E8–21369 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 15 and 52 

[FAC 2005–27; Item XIV;Docket FAR–2008– 

0007; Sequence 1] 

Federal Acquisition Regulation; 

Technical Amendment 

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 in order to make editorial 

changes. 

DATES: Effective Date: September 17, 

2008. 

FOR FURTHER INFORMATION CONTACT: The 

FAR Secretariat, Room 4041, GS 

Building, Washington, DC, 20405, (202) 

501–4755, for information pertaining to 

status or publication schedules. Please 

cite FAC 2005–27, Technical 

Amendment. 

List of Subjects in 48 CFR Parts 15 and 

52 

Government procurement. 

Dated: September 9, 2008 

Al Matera, 

Director, Office of Acquisition Policy. 

■ Therefore, DoD, GSA, and NASA 

amend 48 CFR parts 15 and 52 as set 

forth below: 

■ 1. The authority citation for 48 CFR 

parts 15 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 15—CONTRACTING BY 

NEGOTIATION 

15.404–1 [Amended] 

■ 2. Amend section 15.404–1 by 

removing from paragraph (a)(7) ‘‘http:// 

www.acq.osd.mil/dpap/contractpricing/ 

index.htm’’ and adding ‘‘http:// 

www.acq.osd.mil/dpap/cpf/ 

contractlpricing 

lreferencelguides.html ’’in its place. 

PART 52—SOLICITATION PROVISIONS 

AND CONTRACT CLAUSES 

52.212–5 [Amended] 

■ 3. Amend section 52.212–5 by 

removing from paragraph (b)(26) the 

word ‘‘FAR’’. 

[FR Doc. E8–21368 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 Chapter 1 

[Docket FAR 2008–0003, Sequence 2] 

Federal Acquisition Regulation; 

Federal Acquisition Circular 2005–27; 

Small Entity Compliance Guide 

AGENCIES: Department of Defense (DoD), 

General Services Administration (GSA), 

and National Aeronautics and Space 

Administration (NASA). 

ACTION: Small Entity Compliance Guide. 

SUMMARY: This document is issued 

under the joint authority of the 

Secretary of Defense, the Administrator 

of General Services and the 

Administrator of the National 

Aeronautics and Space Administration. 

This Small Entity Compliance Guide 

has been prepared in accordance with 

Section 212 of the Small Business 

Regulatory Enforcement Fairness Act of 

1996. It consists of a summary of rules 

appearing in Federal Acquisition 

Circular (FAC) 2005–27 which amend 

the FAR. An asterisk (*) next to a rule 

indicates that a regulatory flexibility 

analysis has been prepared. Interested 

parties may obtain further information 

regarding these rules by referring to FAC 

2005–27 which precedes this document. 

These documents are also available via 

the Internet at http:// 

www.regulations.gov. 

FOR FURTHER INFORMATION CONTACT: 

Laurieann Duarte, Regulatory 

Secretariat, (202) 501–4225. For 

clarification of content, contact the 

analyst whose name appears in the table 

below. 

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. 


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