Federal Register / Vol. 75, No. 167 / Monday, August 30, 2010 / Rules and Regulations 53129 

Dated: August 18, 2010. 

Edward Loeb, 

Director, Acquisition Policy Division. 

Amy G. Williams, 

Acting Deputy Director, Defense Procurement 

and Acquisitions Policy (Defense Acquisition 

Regulations System). 

Joseph A. Neurauter, 

Deputy Associate Administrator and Senior 

Procurement Executive, Office of Acquisition 

Policy, U.S. General Services Administration. 

Sheryl J. Goddard, 

Acting Assistant Administrator for 

Procurement, National Aeronautics and 

Space Administration. 

[FR Doc. 2010–21024 Filed 8–27–10; 8:45 am] 

BILLING CODE 6820–EP–P 

DEPARTMENT OF DEFENSE 

GENERAL SERVICES 

ADMINISTRATION 

NATIONAL AERONAUTICS AND 

SPACE ADMINISTRATION 

48 CFR Parts 1, 2, 3, 5, 6, 7, 8, 12, 13, 

15, 16, 17, 19, 22, 23, 28, 32, 36, 42, 50, 

and 52 

[FAC 2005–45; FAR Case 2008–024; Item 

I; Docket 2010–0079, Sequence 1] 

RIN 9000–AL51 

Federal Acquisition Regulation; 

Inflation Adjustment of Acquisition— 

Related Thresholds 

AGENCY: 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 implement section 

807 of the Ronald W. Reagan National 

Defense Authorization Act for Fiscal 

Year 2005. Section 807 requires an 

adjustment every 5 years of acquisitionrelated thresholds for inflation using the 

Consumer Price Index (CPI) for all urban 

consumers, except for Davis-Bacon Act, 

Service Contract Act, and trade 

agreements thresholds. The Councils 

have also used the same methodology to 

adjust nonstatutory FAR acquisitionrelated thresholds in 2010. 

DATES: Effective Date: October 1, 2010. 

FOR FURTHER INFORMATION CONTACT: For 

clarification of content, contact Mr. 

Michael Jackson, Procurement Analyst, 

at (202) 208–4949. For information 

pertaining to status or publication 

schedules, contact the Regulatory 

Secretariat at (202) 501–4755. Please 

cite FAC 2005–45, FAR case 2008–024. 

SUPPLEMENTARY INFORMATION: 

A. Background 

The first review of acquisition-related 

thresholds to implement section 807 of 

the Ronald W. Reagan National Defense 

Authorization Act for Fiscal Year 2005 

(Pub. L. 108–375) was conducted under 

FAR Case 2004–033 during FY 2005. 

The final rule for the first review was 

published in the Federal Register at 71 

FR 57363, September 28, 2006. This is 

the second review of FAR acquisitionrelated thresholds. DoD, GSA, and 

NASA published a proposed rule in the 

Federal Register at 75 FR 5716, 

February 4, 2010. The preamble to the 

proposed rule contained a detailed 

explanation of— 

• What an acquisition-related 

threshold is; 

• What acquisition-related thresholds 

are not subject to escalation adjustment 

under this case; 

• How the Councils analyze statutory 

and nonstatutory acquisition-related 

thresholds; and 

• The effect of this rule on the most 

heavily-used thresholds. 

Eight respondents submitted 

comments on the proposed rule, which 

are addressed in the following section. 

The final rule has been coordinated 

with the Department of Labor and the 

Small Business Administration in areas 

of the regulation for which they are the 

lead agency. Any changes to Cost 

Accounting Standards thresholds will 

be dealt with under a separate case. 

B. Analysis of Public Comments 

1. Statutory Thresholds 

a. All Statutory Thresholds 

Comment: One respondent, while 

recognizing that this is a statutory 

requirement, believed that no inflation 

adjustments should be made at this 

time. The respondent views the 

threshold increases as a way to reduce 

Government oversight of Federal 

contracts and considers such reduction 

unwise, because of various 

congressional oversight hearings and 

reports of Inspectors General and the 

Government Accountability Office that 

have revealed ‘‘widespread systemic 

gaps in Government contracting 

oversight.’’ 

Response: As noted, this is a statutory 

requirement. Further, the intent is not to 

reduce Government oversight but to 

maintain the status quo, by adjusting 

thresholds to keep pace with inflation. 

If thresholds are not adjusted for 

inflation, the number of contracts 

subject to the acquisition-related 

threshold will continue to grow, 

because more and more contracts will 

be below the stated thresholds. 

b. Prime Contractor Subcontracting Plan 

Thresholds (FAR 19.702) 

Comment: One respondent stated that 

they were particularly pleased with the 

proposal to increase the threshold 

values in FAR part 19 relative to the 

need to submit an acceptable 

subcontracting plan. They consider the 

current threshold to be administratively 

burdensome. The respondent further 

recommended that the Councils should 

pursue legislative action to raise the 

threshold to a minimum of one million 

dollars. 

Another respondent recommended 

increasing the prime contractor 

subcontracting plan threshold to 

$700,000, to be the same as the 

increased cost or pricing data threshold. 

Response: The final rule raises the 

subcontracting threshold to $650,000, as 

required by the law that this case is 

implementing. Pursuing legislative 

changes is outside the scope of this case. 

c. Miller Act (FAR 28.102 and 52.228– 

15) 

Comment: Three respondents 

addressed the proposed increase in the 

Miller Act threshold. These respondents 

emphasized the importance of 

performance and payment bonds as a 

protection for subcontractors and 

taxpayers. 

• One respondent stated that the law 

is ‘‘an unfortunate and contradictory 

statutory requirement.’’ The respondent 

considered that the threshold increase 

will undermine the original protective 

purposes of the bonding requirements 

set forth in the Miller Act, because more 

Federal construction projects will be 

undertaken without the benefit of 

payment bond protection. In particular, 

this respondent noted that 

subcontractors are frequently small 

businesses, for whom lack of a payment 

bond may be disastrous. The respondent 

requested the Councils explain 

accurately to Congress the significant 

negative impact that such increases will 

have. 

• Another respondent stated that the 

threshold increase is bad public policy, 

and the Councils should reconsider 

whether such thresholds are 

‘‘acquisition-related thresholds’’ as 

contemplated by the Act. 

• The third respondent urged the 

Councils not to increase the Miller Act 

surety bond threshold, but did not 

suggest rationale for noncompliance 

with the statutory requirement. 


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53130 Federal Register / Vol. 75, No. 167 / Monday, August 30, 2010 / Rules and Regulations 

Response: The Councils do not agree 

that adjustment of thresholds for 

inflation will have the negative impact 

perceived by these respondents. As 

already stated, inflation adjustment of 

thresholds is a means of maintaining the 

status quo. It will not decrease the 

number of contracts that are subject to 

the Miller Act, but will prevent the 

relative number of contracts subject to 

the Miller Act from increasing. The 

rationale that there should be some level 

below which the Miller Act is not 

applicable is maintained by adjustment 

of the threshold for inflation. The law 

(40 U.S.C. 3132) provides alternate 

payment protection for contracts that 

exceed $30,000, so that contracts below 

the Miller Act threshold are not entirely 

without payment protection. 

As to whether the Miller Act 

threshold is an acquisition-related 

threshold, this threshold clearly meets 

the definition that was set forth in the 

law, as consistently interpreted by the 

Councils since the enactment of the law 

in 2004. The law defines an acquisitionrelated threshold as a threshold that is 

set forth in law (the Miller Act), as a 

factor in defining the scope of the 

applicability of a policy, procedure, 

requirement, or restriction provided in 

that law to the procurement of property 

or services by an executive agency. As 

this definition is applied to the Miller 

Act threshold, the Miller Act requires 

payment and performance bonds when 

agencies acquire construction that is 

valued at more than the Miller Act 

threshold (raised by this rule from 

$100,000 to $150,000). 

2. Nonstatutory Thresholds 

Comment: One respondent was 

particularly concerned about the 

proposed increase in nonstatutory 

thresholds. In particular, this 

respondent cited three examples of 

threshold increases which the 

respondent considered questionable: 

• Approval levels for limited source 

justifications at FAR 8.405–6. The 

respondent stated that increasing such 

approval levels appears inconsistent 

with the President’s March 4, 2009, 

Memorandum. 

• The threshold at FAR 22.1103 for 

use of the solicitation provision FAR 

52.222–46, Evaluation of Compensation 

for Professional Employees. The 

respondent stated that when contractors 

pay very low wages and benefits, work 

quality can suffer and the Government 

may bear hidden costs because of the 

need to provide income assistance to 

low income families. 

• The threshold for subcontracting 

plans governed by FAR 19.702. The 

respondent stated that the increase of 

this threshold would have a detrimental 

impact, especially on small businesses. 

Response: Although there is no 

statutory requirement to increase the 

nonstatutory thresholds, the same 

rationale applies as to why escalation to 

adjust for inflation is a good idea. If 

there was any rationale for the level at 

which the thresholds were originally 

put in place by policy, the thresholds 

will become further and further out of 

line with the original policy decision if 

they are left unchanged. In addition to 

this general rationale, the Councils add 

the following two particular responses: 

• In particular, the approval levels for 

limited source justifications at FAR 

8.405–6 were selected to be consistent 

with the statutory thresholds at FAR 

6.304(a). Therefore, it is reasonable to 

escalate these thresholds the same as the 

thresholds at FAR 6.304(a) to maintain 

the consistency. 

• Although the respondent cited the 

threshold for subcontracting plans 

governed by FAR 19.702 as an example 

of a nonstatutory threshold, this 

threshold is actually a statutory 

threshold (15 U.S.C. 637(d)(4)), which 

must therefore be escalated. 

3. Increase Penalties 

Comment: One respondent 

recommended that the Councils should 

also increase the maximum dollar 

amount of penalties when increasing the 

acquisition-related threshold contained 

in the same statute. According to the 

respondent, by not increasing the 

penalty for failure to disclose 

unallowable activities, the Councils are 

providing contractors a greater incentive 

to violate the law. 

Response: The penalties are set by 

statute. The law that the FAR Council is 

implementing did not authorize the 

FAR Council to increase penalties, only 

the acquisition-related thresholds. 

4. Implementation 

Two Government employees provided 

comments relating to the 

implementation of the rule. 

a. Provide a Matrix 

Comment: One respondent requested 

a matrix of the changes in order to save 

everyone from having to do the analysis 

and matrix development. (Although the 

comment was submitted in response to 

the FAR rule, the respondent requested 

that the Councils provide a Defense 

Federal Acquisition Regulation 

Supplement (DFARS) matrix, so this 

may have been intended as a comment 

on the DFARS inflation adjustment 

rule.) 

Response: In 2006, the URL of a 

matrix was provided at FAR 1.109(d). 

Likewise, the current matrix is again 

available and the Councils have 

provided a revised Web address to 

access it. 

b. Effective Date 

One respondent expressed concern 

over the large number of systems 

changes that this rule will require and 

the difficulty of implementation in a 

short period of time. The respondent 

recommended providing ample time 

between the release of firm 

requirements and the required 

implementation. 

Response: Although the Councils 

hoped to publish this final rule in time 

to allow 60 days for implementation, 

they were unable to meet that goal. The 

effective date of October 1, 2010, allows 

only a little more than the standard 30 

days for implementations, but this 

effective date is consistent with the 

statutory requirements and the desired 

procedures for implementation of 

changes that impact the Federal 

Procurement Data System at the 

beginning of the fiscal year. 

C. Changes Between the Proposed Rule 

and the Final Rule 

Although there were no changes 

between the proposed rule and the final 

rule as the result of public comments, 

some of the thresholds changed due to 

lower inflation than was projected at the 

time of publication of the proposed rule. 

The proposed rule was based on a 

projected consumer price index (CPI) of 

222 in April 2010. The final rule is 

based on an actual CPI of 217.631 

through the end of March 2010. The end 

of March, 6 months before the effective 

date of the rule, is used as the cutoff in 

order to allow time for approval and 

publication of the final rule. 

Because the actual CPI is more than 

4 points lower than the projected CPI, 

proposed thresholds of at least $13 

million are generally proportionally 

lower. Thresholds of less than $13 

million were generally unchanged, due 

to rounding. 

The effect of the final rule on heavilyused thresholds is the same as stated in 

the preamble to the proposed rule: 

• The micro-purchase base threshold 

of $3,000 (FAR 2.101) is not changed. 

• The simplified acquisition 

threshold (FAR 2.101) is raised from 

$100,000 to $150,000. 

• The FedBizOpps preaward and 

post-award notices (FAR part 5) remain 

at $25,000 because of trade agreements. 

• Commercial items test program 

ceiling (FAR 13.500) is raised from 

$5,500,000 to $6,500,000. 


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Federal Register / Vol. 75, No. 167 / Monday, August 30, 2010 / Rules and Regulations 53131 

• The cost or pricing data threshold 

(FAR 15.403–4) is raised from $650,000 

to $700,000. 

• The prime contractor 

subcontracting plan (FAR 19.702) floor 

is raised from $550,000 to $650,000, and 

the construction threshold of $1,000,000 

increases to $1,500,000. 

This final rule is a significant 

regulatory action and, therefore, was 

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. 

D. 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 

adjustment of acquisition-related 

thresholds for inflation maintains the 

status quo. The Councils note that the 

set-aside threshold of $100,000 

increases to $150,000, which is not a 

detriment to small business. Although 

several respondents were concerned 

about the impact of some of the 

threshold changes on small businesses 

(see comment and response at B.1.c. and 

B.2.), the Councils reiterate that 

adjusting a threshold in an amount 

sufficient to keep pace with current 

inflation is neutral in impact on small 

businesses because it just maintains the 

status quo. 

E. Paperwork Reduction Act 

The Paperwork Reduction Act does 

apply; however, these changes to the 

FAR do not impose additional 

information collection requirements to 

the paperwork burden previously 

approved under OMB Control Numbers: 

• 9000–0006, Subcontracting Plans/ 

Subcontracting Report for Individual 

Contract (SF 294)—FAR Sections 

Affected: Subpart 19.7 and 52.219–9; 

• 9000–0007, Summary Subcontract 

Report—FAR Sections Affected: Subpart 

19.7, 53.219, and SF 295; 

• 9000–0013, Cost or Pricing Data 

Exemption—FAR Sections Affected: 

Subparts 15.4, 42.7, 52.214–28, 52.215– 

12, 52.215–13, 52.215–20, and 52.215– 

21; 

• 9000–0018, Certification of 

Independent Price Determination and 

Parent Company and Identifying Data— 

FAR Sections Affected: 3.103 and 3.302; 

• 9000–0022, Duty-Free Entry—FAR 

48 CFR 52.225–8—FAR Section 

Affected: 52.225–8; 

• 9000–0026, Change Order 

Accounting—FAR Sections Affected: 

43.205(f) and 52.243–6; 

• 9000–0027, Value Engineering 

Requirements—FAR Sections Affected: 

Subparts 48.1 and 48.2, 52.248–1, 

52.248–2, and 52.248–3; 

• 9000–0034, Examination of Records 

5 CFR 1320.5(b) by Comptroller General 

and Contract Audit—FAR Sections 

Affected: 52.215–2, 52.212–5, and 

52.214–26; 

• 9000–0045, Bid, Performance, and 

Payment Bonds—FAR Sections 

Affected: Subparts 28.1 and 28.2, 

52.228–1, 52.228–2, 52.228–13, 52.228– 

15, and 52.228–16; 

• 9000–0058, Schedules for 

Construction Contracts—FAR Section 

Affected: 52.236–15; 

• 9000–0060, Accident Prevention 48 

CFR 52.236–13, Plans and 

Recordkeeping—FAR Section Affected: 

52.236–13; 

• 9000–0066, Professional Employee 

Compensation Plan—FAR Sections 

Affected: Subpart 22.11 and 52.222–46; 

• 9000–0073, Advance Payments— 

FAR Sections Affected: Subpart 32.4 

and 52.232–12; 

• 9000–0077, Quality Assurance 

Requirements—FAR Sections Affected: 

Subparts 46.1 through 46.3, 52.246–2 

through 52.246–8, 52.246–10, 52.246– 

12, and 52.246–15; 

• 9000–0080, Integrity of Unit 

Prices—FAR Sections Affected: 

15.408(f) and 52.215–14; 

• 9000–0091, Anti-Kickback 

Procedures—FAR Sections Affected: 

3.502, and 52.203–7; 

• 9000–0094, Debarment and 

Suspension, FAR Sections Affected: 9.1, 

9.4, 52.209–5, and 52.212–3(h); 

• 9000–0101, Drug-Free Workplace— 

FAR Section Affected: 52.223–6(b)(5); 

• 9000–0115, Notification of 

Ownership Changes—FAR Sections 

Affected: 15.408(k) and 52.215–19; 

• 9000–0133, Defense Production Act 

Amendments—FAR Sections Affected: 

34.1 and 52.234–1; 

• 9000–0134, Environmentally Sound 

Products—FAR Sections Affected: 

23.406 and 52.223–4; 

• 9000–0135, Prospective 

Subcontractor Requests for Bonds, FAR 

28.106–4(b), 52.228–12; 

• 1215–0072, OFCCP Recordkeeping 

and Reporting Requirements—Supply 

and Service; and 

• 1215–0119, Requirements of a Bona 

Fide Thrift or Savings Plan (29 CFR part 

547) and Requirements of a Bona Fide 

Profit-Sharing Plan or Trust (29 CFR 

part 549). 

List of Subjects in 48 CFR Parts 1, 2, 3, 

5, 6, 7, 8, 12, 13, 15, 16, 17, 19, 22, 23, 

28, 32, 36, 42, 50, and 52 

Government procurement. 

Dated: August 18, 2010. 

Edward Loeb, 

Director, Acquisition Policy Division. 

■ Therefore, DoD, GSA, and NASA 

amend 48 CFR parts 1, 2, 3, 5, 6, 7, 8, 

12, 13, 15, 16, 17, 19, 22, 23, 28, 32, 36, 

42, 50, and 52 as set forth below: 

■ 1. The authority citation for 48 CFR 

parts 1, 2, 3, 5, 6, 7, 8, 12, 13, 15, 16, 

17, 19, 22, 23, 28, 32, 36, 42, 50, 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 1—FEDERAL ACQUISITION 

REGULATIONS SYSTEM 

1.109 [Amended] 

■ 2. Amend section 1.109 by removing 

from paragraph (d) ‘‘http:// 

acquisition.gov/far/facsframe.html’’ and 

adding ‘‘http://www.regulations.gov 

(search FAR case 2008–024)’’ in its 

place. 

PART 2—DEFINITIONS OF WORDS 

AND TERMS 

2.101 [Amended] 

■ 3. Amend section 2.101 in paragraph 

(b)(2) by— 

■ a. Amending the definition ‘‘Major 

system’’ by removing from paragraph (1) 

‘‘$173.5 million’’ and adding ‘‘$189.5 

million’’, and removing ‘‘$814.5 million’’ 

and adding ‘‘$890 million’’; and 

removing from paragraph (2) ‘‘$1.8 

million’’ and adding ‘‘$2 million’’ in its 

place; 

■ b. Amending the definition ‘‘Micropurchase threshold’’ by removing from 

paragraph (3)(ii) ‘‘$25,000’’ and adding 

‘‘$30,000’’ in its place; and 

■ c. Amending the definition 

‘‘Simplified acquisition threshold’’ by 

removing from the introductory 

paragraph ‘‘$100,000’’ and adding 

‘‘$150,000’’ in its place; and removing 

from paragraph (1) ‘‘$250,000’’ and 

adding ‘‘$300,000’’ in its place. 

PART 3—IMPROPER BUSINESS 

PRACTICES AND PERSONAL 

CONFLICTS OF INTEREST 

3.502–2 [Amended] 

■ 4. Amend section 3.502–2 by 

removing from the introductory text of 

paragraph (i) ‘‘$100,000’’ and adding 

‘‘$150,000’’ in its place. 

3.804 [Amended] 

■ 5. Amend section 3.804 by removing 

‘‘$100,000’’ and adding ‘‘$150,000’’ in its 

place. 


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53132 Federal Register / Vol. 75, No. 167 / Monday, August 30, 2010 / Rules and Regulations 

3.808 [Amended] 

■ 6. Amend section 3.808 by removing 

from paragraphs (a) and (b) ‘‘$100,000’’ 

and adding ‘‘$150,000’’ in its place. 

PART 5—PUBLICIZING CONTRACT 

ACTIONS 

5.101 [Amended] 

■ 7. Amend section 5.101 by removing 

from the introductory text of paragraph 

(a)(2) ‘‘$10,000’’ and adding ‘‘$15,000’’ in 

its place. 

5.205 [Amended] 

■ 8. Amend section 5.205 by removing 

from paragraph (d)(2) ‘‘$10,000’’ and 

adding ‘‘$15,000’’ in its place. 

5.206 [Amended] 

■ 9. Amend section 5.206 by— 

■ a. Removing from paragraph (a)(1) 

‘‘$100,000’’ and adding ‘‘$150,000’’ in its 

place; and 

■ b. Removing from paragraph (a)(2) 

‘‘$100,000’’ and adding ‘‘$150,000’’ in its 

place, and removing ‘‘$10,000’’ and 

adding ‘‘$15,000’’ in its place. 

5.303 [Amended] 

■ 10. Amend section 5.303 by removing 

from the introductory text of paragraph 

(a) ‘‘$3.5 million’’ and adding ‘‘$4 

million’’ in its place. 

PART 6—COMPETITION 

REQUIREMENTS 

6.304 [Amended] 

■ 11. Amend section 6.304 by— 

■ a. Removing from paragraph (a)(1) 

‘‘$550,000’’ and adding ‘‘$650,000’’ in its 

place; 

■ b. Removing from paragraph (a)(2) 

‘‘$550,000’’ and adding ‘‘$650,000’’ in its 

place, and removing ‘‘$11.5 million’’ and 

adding ‘‘$12.5 million’’ in its place; 

■ c. Removing from the introductory 

text of paragraph (a)(3) ‘‘$11.5 million’’ 

and adding ‘‘$12.5 million’’ in its place, 

removing ‘‘$57 million’’ and adding 

‘‘$62.5 million’’ in its place, and 

removing ‘‘$78.5 million’’ and adding 

‘‘$85.5 million’’ in its place; and 

■ d. Removing from paragraph (a)(4) 

‘‘$57 million’’ and adding ‘‘$62.5 

million’’ in its place, and removing 

‘‘$78.5 million’’ and adding ‘‘$85.5 

million’’ in its place. 

PART 7—ACQUISITION PLANNING 

7.104 [Amended] 

■ 12. Amend section 7.104 by— 

■ a. Removing from paragraph 

(d)(2)(i)(A) ‘‘$7.5 million’’ and adding 

‘‘$8 million’’ in its place; 

■ b. Removing from paragraph 

(d)(2)(i)(B) ‘‘$5.5 million’’ and adding 

‘‘$6 million’’ in its place; and 

■ c. Removing from paragraph 

(d)(2)(i)(C) ‘‘$2 million’’ and adding 

‘‘$2.5 million’’ in its place. 

7.107 [Amended] 

■ 13. Amend section 7.107 by— 

■ a. Removing from paragraph (b)(1) 

‘‘$86 million’’ and adding ‘‘$94 million’’ 

in its place; and 

■ b. Removing from paragraph (b)(2) 

‘‘$8.6 million’’ and adding ‘‘$9.4 million’’ 

in its place, and removing ‘‘$86 million’’ 

and adding ‘‘$94 million’’ in its place. 

PART 8—REQUIRED SOURCES OF 

SUPPLIES AND SERVICES 

8.405–6 [Amended] 

■ 14. Amend section 8.405–6 by— 

■ a. Removing from paragraph (h)(1) 

‘‘$550,000’’ and adding ‘‘$650,000’’ in its 

place; 

■ b. Removing from paragraph (h)(2) 

‘‘$550,000’’ and adding ‘‘$650,000’’ in its 

place, and removing ‘‘$11.5 million’’ and 

adding ‘‘$12.5 million’’ in its place; 

■ c. Removing from the introductory 

text of paragraph (h)(3) ‘‘$11.5 million’’ 

and adding ‘‘$12.5 million’’ in its place, 

removing ‘‘$57 million’’ and adding 

‘‘$62.5 million’’ in its place, and 

removing ‘‘$78.5 million’’ and adding 

‘‘$85.5 million’’ in its place; and 

■ d. Removing from paragraph (h)(4) 

‘‘$57 million’’ and adding ‘‘$62.5 

million’’ in its place, and removing 

‘‘$78.5 million’’ and adding ‘‘$85.5 

million’’ in its place. 

PART 12—ACQUISITION OF 

COMMERCIAL ITEMS 

12.102 [Amended] 

■ 15. Amend section 12.102 by 

removing from the introductory text of 

paragraph (f)(2) ‘‘$16 million’’ and 

adding ‘‘$17.5 million’’ in its place; and 

removing from paragraph (g)(1)(ii) ‘‘$27 

million’’ and adding ‘‘$29.5 million’’ in 

its place. 

12.203 [Amended] 

■ 16. Amend section 12.203 by 

removing ‘‘$5.5 million’’ and adding 

‘‘$6.5 million’’ in its place, and removing 

‘‘$11 million’’ and adding ‘‘$12 million’’ 

in its place. 

PART 13—SIMPLIFIED ACQUISITION 

PROCEDURES 

13.000 [Amended] 

■ 17. Amend section 13.000 by 

removing ‘‘$5.5 million’’ and adding 

‘‘$6.5 million’’ in its place, and removing 

‘‘$11 million’’ and adding ‘‘$12 million’’ 

in its place. 

13.003 [Amended] 

■ 18. Amend section 13.003 by— 

■ a. Removing from paragraph (b)(1) 

‘‘$100,000’’ and adding ‘‘$150,000’’ in its 

place, and removing ‘‘$250,000’’ and 

adding ‘‘$300,000’’ in its place; 

■ b. Removing from paragraph (c)(1)(ii) 

‘‘$5.5 million’’ and adding ‘‘$6.5 million’’ 

in its place, and removing ‘‘$11 million’’ 

and adding ‘‘$12 million’’ in its place; 

and 

■ c. Removing from paragraph (g)(2) 

‘‘$5.5 million’’ and adding ‘‘$6.5 

million’’, and removing ‘‘$11 million’’ 

and adding ‘‘$12 million’’ in its place. 

13.005 [Amended] 

■ 19. Amend section 13.005 by 

removing from paragraph (a)(5) 

‘‘$100,000’’ and adding ‘‘$150,000’’ in its 

place. 

13.201 [Amended] 

■ 20. Amend section 13.201 by 

removing from paragraph (g)(1)(ii) 

‘‘$25,000’’ and adding ‘‘$30,000’’ in its 

place. 

13.303–5 [Amended] 

■ 21. Amend section 13.303–5 by— 

■ a. Removing from paragraph (b)(1) 

‘‘$5.5 million’’ and adding ‘‘$6.5 million’’ 

in its place, and removing ‘‘$11 million’’ 

and adding ‘‘$12 million’’ in its place; 

and 

■ b. Removing from paragraph (b)(2) 

‘‘$5.5 million’’ and adding ‘‘$6.5 million’’ 

in its place, and removing ‘‘$11 million’’ 

and adding ‘‘$12 million’’ in its place. 

13.500 [Amended] 

■ 22. Amend section 13.500 by— 

■ a. Removing from paragraph (a) ‘‘$5.5 

million’’ and adding ‘‘$6.5 million’’ in its 

place, and removing ‘‘$11 million’’ and 

adding ‘‘$12 million’’ in its place; and 

■ b. Removing from the introductory 

text of paragraph (e) ‘‘$11 million’’ and 

adding ‘‘$12 million’’ in its place. 

13.501 [Amended] 

■ 23. Amend section 13.501 by— 

■ a. Removing from paragraph (a)(2)(i) 

‘‘$100,000’’ and adding ‘‘$150,000’’ in its 

place, and removing ‘‘$550,000’’ and 

adding ‘‘$650,000’’ in its place; 

■ b. Removing from paragraph (a)(2)(ii) 

‘‘$550,000’’ and adding ‘‘$650,000’’ in its 

place, and removing ‘‘$11.5 million’’ and 

adding ‘‘$12.5 million’’ in its place; 

■ c. Removing from paragraph (a)(2)(iii) 

’’$11.5 million’’ and adding ‘‘$12.5 

million’’ in its place, removing ‘‘$57 

million’’ and adding ‘‘$62.5 million’’ in 

its place, and removing ‘‘$78.5 million’’ 

and adding ‘‘$85.5 million’’ in its place; 

and 

■ d. Removing from paragraph (a)(2)(iv) 

‘‘$57 million’’ and adding ‘‘$62.5 

million’’ in its place, and removing 

‘‘$78.5 million’’ and adding ‘‘$85.5 

million’’ in its place. 


jlentini on DSKJ8SOYB1PROD with RULES3
Federal Register / Vol. 75, No. 167 / Monday, August 30, 2010 / Rules and Regulations 53133 

PART 15—CONTRACTING BY 

NEGOTIATION 

15.304 [Amended] 

■ 24. Amend section 15.304 by 

removing from paragraph (c)(4) 

‘‘$550,000’’ and adding ‘‘$650,000’’ in its 

place, and by removing ‘‘$1,000,000’’ 

and adding ‘‘$1.5 million’’ in its place. 

15.403–1 [Amended] 

■ 25. Amend section 15.403–1 by 

removing from paragraph (c)(3)(iv) ‘‘$16 

million’’ and adding ‘‘$17.5 million’’ in 

its place. 

15.403–4 [Amended] 

■ 26. Amend section 15.403–4 by 

removing from the introductory texts of 

paragraphs (a)(1) and (a)(1)(iii) 

‘‘$650,000’’ and adding ‘‘$700,000’’ in its 

place. 

15.404–3 [Amended] 

■ 27. Amend section 15.404–3 by 

removing from paragraph (c)(1)(i) ‘‘$11.5 

million’’ and adding ‘‘$12.5 million’’ in 

its place. 

15.407–2 [Amended] 

■ 28. Amend section 15.407–2 by 

removing from paragraph (c)(1) and the 

introductory text of paragraph (c)(2) 

‘‘$11.5 million’’ and adding ‘‘$12.5 

million’’ in its place. 

15.408 [Amended] 

■ 29. Amend section 15.408 in Table 

15–2, ‘‘II. Cost Elements’’ which follows 

paragraph (n), by removing from 

paragraph ‘‘A(2)’’ ‘‘$11.5 million’’ and 

adding ‘‘$12.5 million’’ in its place. 

PART 16—TYPES OF CONTRACTS 

16.206–2 [Amended] 

■ 30. Amend section 16.206–2 by 

removing from the introductory 

paragraph ‘‘$100,000’’ and adding 

‘‘$150,000’’ in its place. 

16.206–3 [Amended] 

■ 31. Amend section 16.206–3 by 

removing from paragraph (a) ‘‘$100,000’’ 

and adding ‘‘$150,000’’ in its place. 

16.207–3 [Amended] 

■ 32. Amend section 16.207–3 by 

removing from paragraph (d) ‘‘$100,000’’ 

and adding ‘‘$150,000’’ in its place. 

16.503 [Amended] 

■ 33. Amend section 16.503 by 

removing from paragraph (b)(2) ‘‘$100 

million’’ and adding ‘‘$103 million’’ in 

its place; and removing from paragraph 

(d)(1) ‘‘$11.5 million’’ and adding ‘‘$12.5 

million’’ in its place. 

16.504 [Amended] 

■ 34. Amend section 16.504 by 

removing from the introductory texts of 

paragraphs (c)(1)(ii)(D)(1) and 

(c)(1)(ii)(D)(3) ‘‘$100 million’’ and 

adding ‘‘$103 million’’ in its place; and 

removing from the introductory text of 

paragraph (c)(2)(i) ‘‘$11.5 million’’ and 

adding ‘‘$12.5 million’’ in its place. 

16.506 [Amended] 

■ 35. Amend section 16.506 by 

removing from paragraphs (f) and (g) 

‘‘$11.5 million’’ and adding ‘‘$12.5 

million’’ in its place. 

PART 17—SPECIAL CONTRACTING 

METHODS 

17.108 [Amended] 

■ 36. Amend section 17.108 by 

removing from paragraph (a) ‘‘$11.5 

million’’ and adding ‘‘$12.5 million’’ in 

its place; and removing from paragraph 

(b) ‘‘$114.5 million’’ and adding ‘‘$125 

million’’ in its place. 

PART 19—SMALL BUSINESS 

PROGRAMS 

19.502–2 [Amended] 

■ 37. Amend section 19.502–2 by— 

■ a. Removing from paragraph (a) 

‘‘$100,000’’ and adding ‘‘$150,000’’ in its 

place each time it appears (twice), and 

removing ‘‘$250,000’’ and adding 

‘‘$300,000’’ in its place; and 

■ b. Removing from paragraph (b) 

‘‘$100,000’’ and adding ‘‘$150,000’’ in its 

place. 

19.508 [Amended] 

■ 38. Amend section 19.508 by 

removing from paragraph (e) ‘‘$100,000’’ 

and adding ‘‘$150,000’’ in its place. 

19.702 [Amended] 

■ 39. Amend section 19.702 by— 

■ a. Removing from paragraph (a)(1) 

‘‘$550,000’’ and adding ‘‘$650,000’’ in its 

place, and removing ‘‘$1,000,000’’ and 

adding ‘‘$1.5 million’’ in its place; and 

■ b. Removing from paragraph (a)(2) 

‘‘$550,000’’ and adding ‘‘$650,000’’ in its 

place, and removing ‘‘$1,000,000’’ and 

adding ‘‘$1.5 million’’ in its place. 

19.704 [Amended] 

■ 40. Amend section 19.704 by 

removing from paragraph (a)(9) 

‘‘$550,000’’ and adding ‘‘$650,000’’ in its 

place, and removing ‘‘$1,000,000’’ and 

adding ‘‘$1.5 million’’ in its place. 

19.708 [Amended] 

■ 41. Amend section 19.708 by 

removing from paragraph (b)(1) 

‘‘$550,000’’ and adding ‘‘$650,000’’ in its 

place, and removing ‘‘$1,000,000’’ and 

adding ‘‘$1.5 million’’ in its place. 

19.805–1 [Amended] 

■ 42. Amend section 19.805–1 by 

removing from paragraph (a)(2) ‘‘$5.5 

million’’ and adding ‘‘$6.5 million’’ in its 

place, and removing ‘‘$3.5 million’’ and 

adding ‘‘$4 million’’ in its place. 

19.1202–2 [Amended] 

■ 43. Amend section 19.1202–2 by 

removing from paragraph (a) ‘‘$550,000’’ 

and adding ‘‘$650,000’’ in its place, and 

removing ‘‘$1,000,000’’ and adding ‘‘$1.5 

million’’ in its place. 

19.1306 [Amended] 

■ 44. Amend section 19.1306 by 

removing from paragraph (a)(2)(i) ‘‘$5.5 

million’’ and adding ‘‘$6.5 million’’ in its 

place; and removing from paragraph 

(a)(2)(ii) ‘‘$3.5 million’’ and adding ‘‘$4 

million’’ in its place. 

19.1406 [Amended] 

■ 45. Amend section 19.1406 by 

removing from paragraph (a)(2)(i) ‘‘$5.5 

million’’ and adding ‘‘$6 million’’ in its 

place; and removing from paragraph 

(a)(2)(ii) ‘‘$3 million’’ and adding ‘‘$3.5 

million’’ in its place. 

PART 22—APPLICATION OF LABOR 

LAWS TO GOVERNMENT 

ACQUISITIONS 

22.305 [Amended] 

■ 46. Amend section 22.305 by 

removing from paragraph (a) ‘‘$100,000’’ 

and adding ‘‘$150,000’’ in its place. 

22.602 [Amended] 

■ 47. Amend section 22.602 by 

removing ‘‘$10,000’’ and adding 

‘‘$15,000’’ in its place. 

22.603 [Amended] 

■ 48. Amend section 22.603 by 

removing from paragraph (b) ‘‘$10,000’’ 

and adding ‘‘$15,000’’ in its place. 

22.605 [Amended] 

■ 49. Amend section 22.605 by 

removing from paragraphs (a)(1), (a)(2), 

(a)(3), and (a)(5) ‘‘$10,000’’ and adding 

‘‘$15,000’’ in its place each time it 

appears (six times). 

22.1103 [Amended] 

■ 50. Amend section 22.1103 by 

removing ‘‘$550,000’’ and adding 

‘‘$650,000’’ in its place. 

22.1402 [Amended] 

■ 51. Amend section 22.1402 by 

removing from paragraph (a) ‘‘$10,000’’ 

and adding ‘‘$15,000’’ in its place. 

22.1408 [Amended] 

■ 52. Amend section 22.1408 by 

removing from the introductory text of 

paragraph (a) ‘‘$10,000’’ and adding 

‘‘$15,000’’ in its place. 


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53134 Federal Register / Vol. 75, No. 167 / Monday, August 30, 2010 / Rules and Regulations 

PART 23—ENVIRONMENT, ENERGY 

AND WATER EFFICIENCY, 

RENEWABLE ENERGY 

TECHNOLOGIES, OCCUPATIONAL 

SAFETY, AND DRUG-FREE 

WORKPLACE 

23.406 [Amended] 

■ 53. Amend section 23.406 by 

removing from paragraph (d) ‘‘$100,000’’ 

and adding ‘‘$150,000’’ in its place. 

PART 28—BONDS AND INSURANCE 

28.102–1 [Amended] 

■ 54. Amend section 28.102–1 by 

removing from paragraphs (a) and (b)(1) 

‘‘$100,000’’ and adding ‘‘$150,000’’ in its 

place. 

28.102–2 [Amended] 

■ 55. Amend section 28.102–2 by 

removing from the headings of 

paragraphs (b) and (c) ‘‘$100,000’’ and 

adding ‘‘$150,000’’ in its place. 

28.102–3 [Amended] 

■ 56. Amend section 28.102–3 by 

removing from paragraphs (a) and (b) 

‘‘$100,000’’ and adding ‘‘$150,000’’ in its 

place. 

PART 32—CONTRACT FINANCING 

32.404 [Amended] 

■ 57. Amend section 32.404 by 

removing from paragraph (a)(7)(i) 

‘‘$10,000’’ and adding ‘‘$15,000’’ in its 

place. 

PART 36—CONSTRUCTION AND 

ARCHITECT-ENGINEER CONTRACTS 

36.501 [Amended] 

■ 58. Amend section 36.501 by 

removing from paragraph (b) 

‘‘$1,000,000’’ and adding ‘‘$1.5 million’’ 

in its place each time it appears (twice). 

PART 42—CONTRACT 

ADMINISTRATION AND AUDIT 

SERVICES 

42.709 [Amended] 

■ 59. Amend section 42.709 by 

removing from paragraph (b) ‘‘$650,000’’ 

and adding ‘‘$700,000’’ in its place. 

42.709–6 [Amended] 

■ 60. Amend section 42.709–6 by 

removing ‘‘$650,000’’ and adding 

‘‘$700,000’’ in its place. 

42.1502 [Amended] 

■ 61. Amend section 42.1502 by 

removing from paragraph (e) ‘‘$550,000’’ 

and adding ‘‘$650,000’’ in its place each 

time it appears (twice). 

PART 50—EXTRAORDINARY 

CONTRACTUAL ACTIONS AND THE 

SAFETY ACT 

50.102–1 [Amended] 

■ 62. Amend section 50.102–1 by 

removing from paragraph (b) ‘‘$55,000’’ 

and adding ‘‘$65,000’’ in its place. 

50.102–3 [Amended] 

■ 63. Amend section 50.102–3 by 

removing from paragraph (b)(4) ‘‘$28.5 

million’’ and adding ‘‘$31.5 million’’ in 

its place; and removing from paragraphs 

(e)(1)(i) and (e)(1)(ii) ‘‘$55,000’’ and 

adding ‘‘$65,000’’ in its place. 

PART 52—SOLICITATION PROVISIONS 

AND CONTRACT CLAUSES 

52.203–7 [Amended] 

■ 64. Amend section 52.203–7 by 

removing from the clause heading ‘‘(July 

1995)’’ and adding ‘‘(Oct 2010)’’ in its 

place; and removing from paragraph 

(c)(5) ‘‘$100,000’’ and adding ‘‘$150,000’’ 

in its place. 

52.203–12 [Amended] 

■ 65. Amend section 52.203–12 by 

removing from the clause heading ‘‘(Sep 

2007)’’ and adding ‘‘(Oct 2010)’’ in its 

place; and removing from paragraphs 

(g)(1) and (g)(3) ‘‘$100,000’’ and adding 

‘‘$150,000’’ in its place. 

52.204–8 [Amended] 

■ 66. Amend section 52.204–8 by 

removing from the provision heading 

‘‘(Feb 2009)’’ and adding ‘‘(Oct 2010)’’ in 

its place; and removing from paragraph 

(c)(1)(ii) ‘‘$100,000’’ and adding 

‘‘$150,000’’ in its place. 

52.212–3 [Amended] 

■ 67. Amend section 52.212–3 by 

removing from the provision heading 

‘‘(Aug 2009)’’ and adding ‘‘(Oct 2010)’’ in 

its place; and removing from paragraph 

(e) ‘‘$100,000’’ and adding ‘‘$150,000’’ in 

its place. 

52.212–5 [Amended] 

■ 68. Amend section 52.212–5 by— 

■ a. Removing from the clause heading 

‘‘(Jul 2010)’’ and adding ‘‘(Oct 2010)’’ in 

its place; 

■ b. Removing from paragraph (b)(12)(i) 

‘‘(Apr 2008)’’ and adding ‘‘(Oct 2010)’’ in 

its place; 

■ c. Removing from paragraph (b)(25) 

‘‘(Jun 1998)’’ and adding ‘‘(Oct 2010)’’ in 

its place; 

■ d. Removing from paragraph (e)(1)(ii) 

‘‘$550,000’’ and adding ‘‘$650,000’’ in its 

place, and removing ‘‘$1,000,000’’ and 

adding ‘‘$1.5 million’’ in its place; 

■ e. Removing from paragraph (e)(1)(vi) 

‘‘(Jun 1998)’’ and adding ‘‘(Oct 2010)’’ in 

its place; and 

■ f. In Alternate II by— 

■ 1. Removing from the Alternate 

heading ‘‘(Apr 2010)’’ and adding ‘‘(Oct 

2010)’’ in its place; 

■ 2. Removing from paragraph 

(e)(1)(ii)(C) ‘‘$550,000’’ and adding 

‘‘$650,000’’ in its place, and removing 

‘‘$1,000,000’’ and adding ‘‘$1.5 million’’ 

in its place; and 

■ 3. Removing from paragraph 

(e)(1)(ii)(F) ‘‘(June 1998)’’ and adding 

‘‘(Oct 2010)’’ in its place. 

52.213–4 [Amended] 

■ 69. Amend section 52.213–4 by— 

■ a. Removing from the clause heading 

‘‘(Jul 2010)’’ and adding ‘‘(Oct 2010)’’ in 

its place; 

■ b. Removing from paragraph (a)(2)(vii) 

‘‘(Jun 2010)’’ and adding ‘‘(Oct 2010)’’ in 

its place; 

■ c. Removing from paragraph (b)(1)(ii) 

‘‘(Dec 1996)’’ and adding ‘‘(Oct 2010)’’ in 

its place, and removing ‘‘$10,000’’ and 

adding ‘‘$15,000’’ in its place; and 

■ d. Removing from paragraph (b)(1)(iv) 

‘‘(June 1998)’’ and adding ‘‘(Oct 2010)’’ in 

its place, and removing ‘‘$10,000’’ and 

adding ‘‘$15,000’’ in its place. 

52.219–9 [Amended] 

■ 70. Amend section 52.219–9 by— 

■ a. Removing from the clause heading 

‘‘(Jul 2010)’’ and adding ‘‘(Oct 2010)’’ in 

its place; 

■ b. Removing from paragraph (d)(9) 

‘‘$550,000’’ and adding ‘‘$650,000’’ in its 

place, and removing ‘‘$1,000,000’’ and 

adding ‘‘$1.5 million’’ in its place; 

■ c. Removing from the introductory 

text of paragraph (d)(11)(iii) ‘‘$100,000’’ 

and adding ‘‘$150,000’’ in its place; and 

■ d. Removing from paragraph 

(l)(2)(i)(C) ‘‘$550,000’’ and adding 

‘‘$650,000’’ in its place, and removing 

‘‘$1,000,000’’ and adding ‘‘$1.5 million’’ 

in its place. 

52.222–20 [Amended] 

■ 71. Amend section 52.222–20 by 

removing from the clause heading ‘‘(Dec 

1996)’’ and adding ‘‘(Oct 2010)’’ in its 

place; and removing from the 

introductory paragraph ‘‘$10,000’’ and 

adding ‘‘$15,000’’ in its place. 

52.222–36 [Amended] 

■ 72. Amend section 52.222–36 by 

removing from the clause heading ‘‘(Jun 

1998)’’ and adding ‘‘(Oct 2010)’’ in its 

place; and removing from paragraph (d) 

‘‘$10,000’’ and adding ‘‘$15,000’’ in its 

place. 

52.225–8 [Amended] 

■ 73. Amend section 52.225–8 by 

removing from the clause heading ‘‘(Feb 

2000)’’ and adding ‘‘(Oct 2010)’’ in its 

place; and removing from the 

introductory texts of paragraphs (c)(1) 


jlentini on DSKJ8SOYB1PROD with RULES3
Federal Register / Vol. 75, No. 167 / Monday, August 30, 2010 / Rules and Regulations 53135 

and (j)(2) ‘‘$10,000’’ and adding 

‘‘$15,000’’ in its place. 

52.228–15 [Amended] 

■ 74. Amend section 52.228–15 by 

removing from the clause heading ‘‘(Nov 

2006)’’ and adding ‘‘(Oct 2010)’’ in its 

place; and removing from the 

introductory text of paragraph (b) 

‘‘$100,000’’ and adding ‘‘$150,000’’ in its 

place. 

52.244–6 [Amended] 

■ 75. Amend section 52.244–6 by— 

■ a. Removing from the clause heading 

‘‘(Jun 2010)’’ and adding ‘‘(Oct 2010)’’ in 

its place; 

■ b. Removing from paragraph (c)(1)(iii) 

‘‘$550,000’’ and adding ‘‘$650,000’’ in its 

place, and removing ‘‘$1,000,000’’ and 

adding ‘‘$1.5 million’’ in its place; and 

■ c. Removing from paragraph (c)(1)(vi) 

‘‘(Jun 1998)’’ and adding ‘‘(Oct 2010)’’ in 

its place. 

52.248–1 [Amended] 

■ 76. Amend section 52.248–1 by 

removing from the clause heading ‘‘(Feb 

2000)’’ and adding ‘‘(Oct 2010)’’ in its 

place; and removing from paragraph (l) 

‘‘$100,000’’ and adding ‘‘$150,000’’ in its 

place. 

52.248–3 [Amended] 

■ 77. Amend section 52.248–3 by 

removing from the clause heading ‘‘(Sep 

2006)’’ and adding ‘‘(Oct 2010)’’ in its 

place; and removing from paragraph (h) 

‘‘$55,000’’ and adding ‘‘$65,000’’ in its 

place. 

[FR Doc. 2010–21025 Filed 8–27–10; 8:45 am] 

BILLING CODE 6820–EP–P 

DEPARTMENT OF DEFENSE 

GENERAL SERVICES 

ADMINISTRATION 

NATIONAL AERONAUTICS AND 

SPACE ADMINISTRATION 

48 CFR Parts 2, 4, 12, 14, 15, 16, 19, 

27, 30, 31, 32, 42, 44, 49, and 52 

[FAC 2005–45; FAR Case 2005–036; Item 

II; Docket 2007–0001, Sequence 15] 

RIN 9000–AK74 

Federal Acquisition Regulation; 

Definition of Cost or Pricing Data 

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 clarify the 

distinction between ‘‘certified cost or 

pricing data’’ and ‘‘data other than 

certified cost or pricing data’’, and to 

clarify requirements for submission of 

cost or pricing data. 

DATES: Effective Date: October 1, 2010. 

FOR FURTHER INFORMATION CONTACT: For 

clarification of content, contact Mr. 

Edward N. Chambers, Procurement 

Analyst, at (202) 501–3221. For 

information pertaining to status or 

publication schedules, contact the 

Regulatory Secretariat at (202) 501– 

4755. Please cite FAC 2005–45, FAR 

case 2005–036. 

SUPPLEMENTARY INFORMATION: 

A. Background 

Subpart 15.4 of the FAR describes the 

contracting officer’s responsibility to 

purchase supplies and services at fair 

and reasonable prices and the use of 

data and information in meeting this 

requirement. This subpart incorporates 

the requirements of the Truth In 

Negotiations Act (TINA), 10 U.S.C. 

2306a and 41 U.S.C. 254b, which 

address the requirements for the 

submission of cost or pricing data and 

the circumstances under which a 

contractor must certify to their accuracy, 

completeness, and currency. 

The Councils believe that the 

implementation of TINA in FAR subpart 

15.4 is not sufficiently clear. In 

particular, there is confusion regarding 

the right of the Government to request 

‘‘data other than certified cost or pricing 

data,’’ the obligation of the offeror to 

provide this data, and the definition of 

this term. 

This lack of clarity is due, in large 

part, to definitions that overlap and are 

not identical to TINA. For example, the 

term ‘‘cost or pricing data’’ is defined in 

the FAR to mean certified cost or 

pricing data, whereas TINA does not 

make certification part of the definition 

of this term. This regulatory refinement 

has led to confusion regarding the level 

of information that a contracting officer 

may request to establish fair and 

reasonable pricing including a 

misunderstanding by some that the data 

elements that comprise cost or pricing 

data cannot be requested by the 

Government unless the data are required 

by law to be submitted to the 

contracting officer in a certified form. 

This confusion has been exacerbated by 

the FAR’s use of the phrase ‘‘information 

other than cost or pricing data,’’ which 

has made it difficult for contracting 

officers to understand the circumstances 

when data other than certified cost or 

pricing data should be obtained to 

protect the Government from paying 

unreasonable prices. 

Even the basic articulation of policy 

regarding the use of data to establish the 

fairness and reasonableness of offered 

prices in the introductory paragraph of 

FAR 15.402(a) has lacked a certain level 

of clarity that creates uncertainty. For 

many years, this paragraph has 

appropriately cautioned contracting 

officers not to obtain more information 

than is necessary—and the FAR must 

continue to do so. However this 

paragraph should also, but currently 

does not, expressly mention the 

underlying statutory authority to collect 

‘‘data other than certified cost or pricing 

data.’’ Because of this omission, some 

contracting officers may be under the 

misperception that there is a greater 

responsibility to avoid asking 

unnecessarily for the submission of cost 

or pricing data than there is, in the first 

instance, to determine whether and how 

much of this data may be required, in 

a given case, to establish price fairness 

and reasonableness. In fact, both 

responsibilities—i.e., obtaining data that 

are adequate for evaluating the 

reasonableness of the price and taking 

appropriate care not to ask for more data 

than is necessary—are inextricably 

interrelated and equally important. As 

such, the FAR needs to communicate 

this message more clearly. 

DoD, GSA, and NASA published a 

proposed rule in the Federal Register at 

72 FR 20092, April 23, 2007, to revise 

the FAR definition of ‘‘cost or pricing 

data’’; change the term ‘‘information 

other than cost or pricing data’’ to ‘‘data 

other than certified cost or pricing data’’; 

add a definition of ‘‘certified cost or 

pricing data’’ to make the terms and 

definitions consistent with TINA and 

more understandable to the general 

reader; change terminology throughout 

the FAR; and clarify the need for 

contracting officers to obtain ‘‘data other 

than certified cost or pricing data’’ when 

there is no other means to determine fair 

and reasonable pricing during price 

analysis. 

Based on comments received on the 

proposed rule, a public meeting held on 

November 1, 2007, and additional 

deliberations (which are all discussed in 

greater detail below), the Councils have 

adopted a final rule that— 

• Clarifies terminology used in the 

FAR to make it consistent with TINA, 

resulting in (i) refinements to the 

regulatory definition of cost or pricing 

data, (ii) the addition of a definition for 

‘‘certified cost or pricing data,’’ (iii) the 

addition of a definition for ‘‘data other 

than certified cost or pricing data,’’ and 


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