Source: http://farsite.hill.af.mil/reghtml/changes/fac/fac97_22.htm
Timestamp: 2017-10-24 00:07:57
Document Index: 426347985

Matched Legal Cases: ['art 12', 'art 30', 'art 12', 'arts 1', 'arts 1', 'arts 1', 'art 16', 'art\n48', 'art 208', 'art 15', 'art 11', 'art 124', 'art 15', 'ART 23', 'ART 27', 'arts 31', 'art 6', 'art 82', 'art 32', 'art 32', 'art\n52', 'art 52', 'arts 1', 'arts 1', 'arts 1']

48 CFR Ch. 1
Federal Acquisition Circular 97-22; Introduction
SUMMARY: This document summarizes the Federal Acquisition Regulation (FAR) rules agreed to by the Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council (Councils) in this Federal Acquisition Circular (FAC) 97-22. The Councils drafted these FAR rules
using plain language in accordance with the White House memorandum, Plain Language in Government Writing, dated June 1, 1998. The Councils wrote all new and revised text using plain language. 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.arnet.gov/far.
Building, Washington, DC 20405, (202) 501-4755, for information pertaining to status or publication schedules. For clarification of content, contact the analyst whose name appears in the table below in relation to each FAR case or subject area. Please cite FAC 97-22 and specific FAR case numbers. Interested parties may also visit our website at http://www.arnet.gov/far.
1999-403
Applicability, Thresholds and Waiver of Cost Accounting Standards Coverage.
Advance Payments for Non-Commercial Items.
Part 12 and Assignment of Claims.
Clause Flowdown- Commercial Items.
Federal Acquisition Circular 97-22 amends the FAR as specified below:
Item I--Definitions (FAR Case 1999-403)
This final rule clarifies the applicability of definitions used in the FAR, eliminates redundant or conflicting definitions, and makes definitions easier to find. The rule--
Relocates other definitions of terms to the ``Definitions'' section of the highest level FAR division (part, subpart, or section) where the term as defined is used. For example, if a term was defined in a FAR section, but the term is used as defined in another section of that subpart, then the definition was moved to the ``Definitions'' section of that subpart;
Item II--Applicability, Thresholds and Waiver of Cost Accounting Standards Coverage (FAR Case 2000-301) The interim rule published as Item VIII of FAC 97-18 (65 FR 36028, June 6, 2000) is converted to a final rule without change. This rule amends FAR Subpart 30.2, CAS Program Requirements, and the FAR clause at 52.230-1, Cost Accounting Standards Notices and Certification, to implement Section 802 of the National Defense Authorization Act for
Fiscal Year 2000 (Pub. L. 106-65) and the Cost Accounting Standards (CAS) Board's final rule, Applicability, Thresholds and Waiver of Cost Accounting Standards Coverage. The FAR rule revises policies affecting which contractors and subcontractors must comply with CAS by--
Removing the requirement at FAR 52.230-1, Cost Accounting Standards Notices and Certification, that a contractor or subcontractor must have received at least one CAS-covered contract exceeding $1million (``trigger contract'') to be subject to ``full CAS coverage.''
The CAS Board added a new ``trigger contract'' dollar amount of $7.5 million at paragraph (b)(7) of 48 CFR 9903.201-1, CAS applicability, which is already referenced at FAR 30.201-1;
Revising FAR 30.201-4(b), Disclosure and consistency of cost accounting practices, and FAR 52.230-1 to increase the dollar threshold for full CAS coverage from $25 million to $50 million; and
Revising the CAS waiver procedures and conditions at FAR 30.201-5.
Item III--Advance Payments for Non-Commercial Items (FAR Case 99- 016)
This final rule amends the FAR to permit federally insured credit unions, in addition to banks, to participate in the maintenance of special accounts for advance payments. The rule will only affect
contracting officers that provide contract financing using advance payments for non-commercial items.
Item IV--Part 12 and Assignment of Claims (FAR Case 1999-021)
This final rule amends the FAR to correct an inconsistency between two clauses related to the assignment of claims. FAR 52.232-36, Payment by Third Party, prohibits a contractor from assigning its rights to receive payment under the contract if payment is made by a third party,
such as when a Governmentwide commercial purchase card is used. This clause is cited in the contract clause at FAR 52.212-5 that addresses terms and conditions required to implement statutes or Executive orders for commercial items.
FAR 52.212-4, Contract Terms and Conditions--Commercial Items, addresses assignment of claims but does not include the third party prohibition.
This rule revises FAR 52.212-4(b) to add the prohibition.
Item V--Clause Flowdown--Commercial Items (FAR Case 1996-023)
Dated: December 22, 2000. Al Matera, Acting Director, Federal Acquisition Policy Division.
Federal Acquisition Circular Federal Acquisition Circular (FAC) 97-22 is issued under the
All Federal Acquisition Regulation (FAR) changes and other directive material contained in FAC 97-22 are effective March 12, 2001, except for Items II and VI, which are effective January 10, 2001.
Dated: December 8, 2000 Deidre A. Lee, Director, Defense Procurement.
Dated: December 8, 2000. David A. Drabkin, Deputy Associate Administrator, Office of Acquisition Policy, General Services Administration.
Dated: December 7, 2000. Tom Luedtke, Associate Administrator for Procurement, National Aeronautics and Space Administration.
48 CFR Parts 1, 2, 3, 4, 5, 6, 7, 8, 9, 11, 13, 14, 15, 17, 19, 22, 23, 24, 26, 27, 28, 29, 31, 32, 33, 34, 35, 36, 37, 39, 42, 43, 44, 46, 47, 48, 49, 50, and 52
[FAC 97-22; FAR Case 1999-403; Item I]
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 applicability of definitions, eliminate redundant or conflicting definitions, and make definitions easier to find.
DATES: Effective Date: March 12, 2001.
Building, Washington, DC, 20405, (202) 501-4755, for information pertaining to status or publication schedules. For clarification of content, contact Mr. Jeremy Olson, Procurement Analyst, at (202) 501-3221. Please cite FAC 97-22, FAR case 1999-403.
This final rule clarifies the applicability of definitions, eliminates redundant or conflicting definitions, and makes definitions easier to find. The Councils do not intend to make any substantive policy changes to the FAR by these amendments. Nevertheless, in view of the extensive scope of these FAR improvements, comments are invited in the event any substantial policy change appears to have been made inadvertently. The rule--
-- Relocates definitions of terms that are used in more than one FAR part with the same meaning to 2.101;
-- Relocates other definitions of terms to the ``Definitions'' section of the highest level FAR division (part, subpart, or section) the term as defined is used in. For example, if a term was defined in a FAR section, but the term is used as defined in another section of that subpart, then the definition was moved to the ``Definitions'' section of that subpart;
-- Clarifies that a term, defined in FAR 2.101, has the same meaning throughout the FAR unless the context in which the term is used clearly requires a different meaning; or another FAR part, subpart, or section provides a different definition for that particular part, subpart, or section;
-- Adds cross-references to definitions of terms in FAR 2.101 that are defined differently in another part, subpart, or section of the FAR;
-- Makes plain language revisions to the revised text in accordance with the White House memorandum, Plain Language in Government Writing, dated June 1, 1998; and
-- Makes technical corrections throughout the FAR.
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 97-22, FAR case 1999-403), in correspondence.
Dated: December 22, 2000.Al Matera, Acting Director, Federal Acquisition Policy Division.
Therefore, DoD, GSA, and NASA amend 48 CFR parts 1, 2, 3, 4, 5, 6, 7, 8, 9, 11, 13, 14, 15, 17, 19, 22, 23, 24, 26, 27, 28, 29, 31, 32, 33, 34, 35, 36, 37, 39, 42, 43, 44, 46, 47, 48, 49, 50, and 52 as set forth below:
1. The authority citation for 48 CFR parts 1, 2, 3, 4, 5, 6, 7, 8, 9, 11, 13, 14, 15, 17, 19, 22, 23, 24, 26, 27, 28, 29, 31, 32, 33, 34, 35, 36, 37, 39, 42, 43, 44, 46, 47, 48, 49, 50, and 52 continues to
2. Amend section 1.401 in paragraph (a) by removing ``52.101(a)'' each time it is used (twice) and adding ``2.101'' in its place; and in paragraphs (c) and (d) revise the text in the parenthetical to read as follows:
(c) * * * (see definition of ``modification'' in 52.101(a) and definition of ``alternate'' in 2.101(a)).
(a) This part--
--Revise paragraphs (a) and (b);
--Add, in alphabetical order, the following definitions:
``Acquisition planning,''
``Adequate evidence,''
``Alternate,''
``Architect-engineer services,''
``Assignment of claims,''
``Basic research,''
``Broad agency announcement,''
``Business unit,''
``Change-of-name agreement,''
``Change order,''
``Cognizant Federal agency,''
``Computer software,''
``Consent to subcontract,''
``Contract clause or clause,''
``Contract modification,''
``Conviction,''
``Cost or pricing data,''
``Cost realism,''
``Cost sharing,''
``Debarment,''
``Design-to-cost,''
``Drug-free workplace,''
``Effective date of termination,''
``Electronic data interchange (EDI),''
``Electronic Funds Transfer (EFT),''
``Federally Funded Research and Development Centers (FFRDCs),''
``Final indirect cost rate,''
``First article,''
``First article testing,''
``F.o.b.,''
``F.o.b. destination,''
``F.o.b. origin,
``F.o.b. . . .,''
``Forward pricing rate agreement,''
``Forward pricing rate recommendation,''
``Freight,''
``Full and open competition,''
``General and administrative (G&A) expense,''
``Historically black college or university,''
``HUBZone,''
``HUBZone small business concern,''
``Indirect cost,''
``Indirect cost rate,''
``Ineligible,''
``Information other than cost or pricing data,''
``Inherently governmental function,''
``Inspection,''
``Insurance,''
``Invoice,''
``Irrevocable letter of credit,''
``Labor surplus area,''
``Labor surplus area concern,''
``Latent defect,''
``List of Parties Excluded from Federal Procurement and Nonprocurement Programs,''
``Make-or-Buy program,''
``Master solicitation,''
``Minority Institution,''
``Neutral person,''
``Novation agreement,''
``Option,''
``Organizational conflict of interest,''
``Overtime,''
``Overtime premium,''
``Ozone-depleting substance,''
``Performance-based contracting,''
``Personal services contract,''
``Power of attorney,''
``Preaward survey,''
``Preponderance of the evidence,''
``Pricing,''
``Procurement,''
``Procuring activity,''
``Projected average loss,''
``Proper invoice,''
``Purchase order,''
``Qualification requirement,''
``Qualified products list (QPL),''
``Residual value,''
``Responsible audit agency,''
``Responsible prospective contractor,''
``Segment,''
``Self-insurance,''
``Shipment,''
``Shop drawings,''
``Should,''
``Single, Governmentwide point of entry,''
``Small business subcontractor,''
``Small disadvantaged business concern,''
``Sole source acquisition,''
``Solicitation provision or provision,''
``Special competency,''
``State and local taxes,''
``Substantial evidence,''
``Substantially as follows or substantially the same as,''
``Supplemental agreement,''
``Surety,''
``Suspension,''
``Taxpayer Identification Number (TIN),''
``Unallowable cost,''
``Unique and innovative concept,''
``Unsolicited proposal,''
``Value engineering,''
``Value engineering change proposal (VECP),''
``Warranty,''
``Women-owned small business concern,''
``Writing or written,''
--Amend the definitions listed below as follows:
``Contract administration office,''
``(a)'' and``(b)''
``(1)'' and``(2)'', respectively
``Contracting officer,''
``Federal Acquisition Computer Network (FACNET) Architecture''
``is''
``means''
``Head of the contracting
activity''.
``includes''
``Pollution prevention,''
``(a)(1)'' and``(2)''
``(1)(i)'' and``(ii)'', respectively.
``(b)'' and ``(c)''
``(2)'' and ``(3)'', respectively
``Virgin material,''
--Revise the definitions ``Affiliates,'' ``Agency head or head of the agency,'' ``Commercial item,'' ``Contracting office,'' ``Head of the agency,'' ``In writing, writing, or written,'' ``Information
technology,'' ``Major system,'' and ``Nondevelopmental item''. For the convenience of the user, the section is set out in its entirety to read as follows:
(a) A word or a term, defined in this section, has the same meaning throughout this regulation (48 CFR chapter 1), unless--
(b) If a word or term that is defined in this section is defined differently in another part, subpart, or section of this regulation (48 CFR chapter 1, the definition in--
Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed,
demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of
sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract.
or R&D activities. It can also mean the furnishing of professional advice or assistance rendered to improve the effectiveness of Federal management processes or procedures (including those of an engineering and technical nature). In rendering the foregoing services, outputs may take the form of information, advice, opinions, alternatives, analyses, evaluations, recommendations, training and the day-to-day aid of support personnel needed for the successful performance of ongoing
Federal operations. All advisory and assistance services are classified in one of the following definitional subdivisions:
Affiliates means associated business concerns or individuals if, directly or indirectly--
Architect-engineer services, as defined in 40 U.S.C. 541, means--
(2) Professional services of an architectural or engineering nature performed by contract that are associated with research, planning, development, design, construction, alteration, or repair of real
(3) Those other professional services of an architectural or engineerin nature, or incidental services, that members of the architectural and engineering professions (and individuals in their
employ) may logically or justifiably perform, including studies, investigations, surveying and mapping, tests, evaluations, consultations, comprehensive planning, program management, conceptual designs, plans and specifications, value engineering, construction phase services, soils engineering, drawing reviews, preparation of operating and maintenance manuals, and other related
(1) Consolidating two or more requirements for supplies or services, previously provided or performed under separate smaller contracts, into a solicitation for a single contract that is likely to
be unsuitable for award to a small business concern due to--
(2) ``Separate smaller contract'' as used in this definition, means a contract that has been performed by one or more small business concerns or that was suitable for award to one or more small business concerns.
(3) This definition does not apply to a contract that will be awarded and performed entirely outside of the United States. Business unit means any segment of an organization, or an entire
business organization that is not divided into segments. Change-of-name agreement means a legal instrument executed by the contractor and the Government that recognizes the legal change of name of the contractor without disturbing the original contractual rights and obligations of the parties.
Change order means a written order, signed by the contracting officer, directing the contractor to make a change that the Changes clause authorizes the contracting officer to order without the
contractor's consent.
(1) Any item, other than real property, that is of a type customarily used for nongovernmental purposes and that-
(2) Any item that evolved from an item described in paragraph (1) of this definition through advances in technology or performance and that is not yet available in the commercial marketplace, but will be available in the commercial marketplace in time to satisfy the delivery
requirements under a Government solicitation;
(5) Installation services, maintenance services, repair services, training services, and other services if such services are procured for support of an item referred to in paragraphs (1), (2), (3), or (4) of this definition, and if the source of such services--
standard commercial terms and conditions. This does not include services that are sold based on hourly rates without an established catalog or market price for a specific service performed;
Construction means construction, alteration, or repair (including dredging, excavating, and painting) of buildings, structures, or other real property. For purposes of this definition, the terms ``buildings, structures, or other real property'' include, but are not limited to, improvements of all types, such as bridges, dams, plants, highways, parkways, streets, subways, tunnels, sewers, mains, power lines, cemeteries, pumping stations, railways, airport facilities, terminals, docks, piers, wharves, ways, lighthouses, buoys, jetties, breakwaters, levees, canals, and channels. Construction does not include the manufacture, production, furnishing, construction, alteration, repair,
processing, or assembling of vessels, aircraft, or other kinds of personal property.
Contract means a mutually binding legal relationship obligating the seller to furnish the supplies or services (including construction) and the buyer to pay for them. It includes all types of commitments that obligate the Government to an expenditure of appropriated funds and
that, except as otherwise authorized, are in writing. In addition to bilateral instruments, contracts include (but are not limited to) awards and notices of awards; job orders or task letters issued under
basic ordering agreements; letter contracts; orders, such as purchase orders, under which the contract becomes effective by written acceptance or performance; and bilateral contract modifications. Contracts do not include grants and cooperative agreements covered by
31 U.S.C. 6301, et seq. For discussion of various types of contracts, see part 16.
Contract administration office means an office that performs--
Contracting office means an office that awards or executes a contract for supplies or services and performs postaward functions not assigned to a contract administration office (except for use in part
48, see also 48.001).
Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized
representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. ``Administrative contracting officer (ACO)'' refers to a contracting
officer who is administering contracts. ``Termination contracting officer (TCO)'' refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not--
Cost or pricing data (10 U.S.C. 2306a(h)(1) and 41 U.S.C. 254b) means all facts that, as of the date of price agreement or, if applicable, an earlier date agreed upon between the parties that is as
close as practicable to the date of agreement on price, prudent buyers and sellers would reasonably expect to affect price negotiations significantly. Cost or pricing data are data requiring certification in accordance with 15.406-2. Cost or pricing data are factual, not judgmental; and are verifiable. While they do not indicate the accuracy of the prospective contractor's judgment about estimated future costs or projections, they do include the data forming the basis for that judgment. Cost or pricing data are more than historical accounting data; they are all the facts that can be reasonably expected to contribute to the soundness of estimates of future costs and to the validity of determinations of costs already incurred. They also include such factors as--
Cost realism means that the costs in an offeror's proposal--
Debarment means action taken by a debarring official under 9.406 to exclude a contractor from Government contracting and Government-approved subcontracting for a reasonable, specified period; a contractor that is excluded is ``debarred.''
Electronic data interchange (EDI) means a technique for electronically transferring and storing formatted information between computers utilizing established and published formats and codes, as
authorized by the applicable Federal Information Processing Standards.
Electronic Funds Transfer (EFT) means any transfer of funds, other than a transaction originated by cash, check, or similar paper instrument, that is initiated through an electronic terminal, telephone, computer, or magnetic tape, for the purpose of ordering, instructing, or authorizing
a financial institution to debit or credit an account. The term includes Automated Clearing House transfers, Fedwire transfers, and transfers made at automatic teller machines and point-of-sale
terminals. For purposes of compliance with 31 U.S.C. 3332 and implementing regulations at 31 CFR part 208, the term ``electronic funds transfer'' includes a Governmentwide commercial purchase card transaction.
Executive agency means an executive department, a military department, or any independent establishment within the meaning of 5 U.S.C. 101, 102, and 104(1), respectively, and any wholly owned
Government corporation within the meaning of 31 U.S.C. 9101. Facsimile means electronic equipment that communicates and reproduces both printed and handwritten material. If used in
conjunction with a reference to a document; e.g., facsimile bid, the terms refers to a document (in the example given, a bid) that has been transmitted to and received by the Government via facsimile.
Federally Funded Research and Development Centers (FFRDC's) means activities that are sponsored under a broad charter by a Government agency (or agencies) for the purpose of performing, analyzing, integrating, supporting, and/or managing basic or applied research and/
or development, and that receive 70 percent or more of their financial support from the Government; and--
F.o.b. means free on board. This term is used in conjunction with a physical point to determine--
F.o.b. origin means free on board at origin; i.e., the seller or consignor places the goods on the conveyance. Unless the contract provides otherwise, the buyer or consignee is responsible for the cost of shipping and risk of loss. For use in the clause at 52.247-29, see the definition at 52.247-29(a). F.o.b. * * * (For other types of F.o.b., see 47.303).
Forward pricing rate agreement means a written agreement negotiated between a contractor and the Government to make certain rates available during a specified period for use in pricing contracts or modifications. These rates represent reasonable projections of specific costs that are not easily estimated for, identified with, or generated by a specific contract, contract end item, or task. These projections may include rates for such things as labor, indirect costs, material
obsolescence and usage, spare parts provisioning, and material handling.
Forward pricing rate recommendation means a rate set unilaterally by the administrative contracting officer for use by the Government in negotiations or other contract actions when forward pricing rate agreement negotiations have not been completed or when the contractor
will not agree to a forward pricing rate agreement.
General and administrative (G&A) expense means any management, financial, and other expense which is incurred by or allocated to a business unit and which is for the general management and administration of the business unit as a whole. G&A expense does not
include those management expenses whose beneficial or causal relationship to cost objectives can be more directly measured by a base other than a cost input base representing the total activity of a
business unit during a cost accounting period.
Head of the agency (see ``agency head'').
Indirect cost rate means the percentage or dollar factor that expresses the ratio of indirect expense incurred in a given period to direct labor cost, manufacturing cost, or another appropriate base for the same period (see also ``final indirect cost rate'').
Information other than cost or pricing data means any type of information that is not required to be certified in accordance with 15.406-2 and is necessary to determine price reasonableness or cost
realism. For example, such information may include pricing, sales, or cost information, and includes cost or pricing data for which certification is determined inapplicable after submission.
Information technology means any equipment, or interconnected system(s) or subsystem(s) of equipment, that is used in the automatic acquisition, storage, manipulation, management, movement, control, display, switching, interchange, transmission, or reception of data or
information by the agency.
(1) For purposes of this definition, equipment is used by an agency if the equipment is used by the agency directly or is used by a contractor under a contract with the agency that requires--
(2) The term ``information technology'' includes computers, ancillary equipment, software, firmware and similar procedures, services (including support services), and related resources.
(3) The term ``information technology'' does not include any equipment that--
(ii) Determine, protect, and advance United States economic, political, territorial, property, or other interests by military or diplomatic action, civil or criminal judicial proceedings, contract
(v) Exert ultimate control over the acquisition, use, or disposition of the property, real or personal, tangible or intangible, of the United States, including the collection, control, or
disbursement of Federal funds.
(2) Inherently governmental functions do not normally include gathering information for or providing advice, opinions, recommendations, or ideas to Government officials. They also do not
include functions that are primarily ministerial and internal in nature, such as building security, mail operations, operation of cafeterias, housekeeping, facilities operations and maintenance,
warehouse operations, motor vehicle fleet management operations, or other routine electrical or mechanical services. The list of commercial activities included in the attachment to Office of Management and Budget (OMB) Circular No. A-76 is an authoritative, nonexclusive list
of functions that are not inherently governmental functions.
Inspection means examining and testing supplies or services (including, when appropriate, raw materials, components, and intermediate assemblies) to determine whether they conform to contract
Invoice means a contractor's bill or written request for payment under the contract for supplies delivered or services performed (see also ``proper invoice'').
List of Parties Excluded from Federal Procurement and Nonprocurement Programs means a list compiled, maintained, and distributed by the General Services Administration containing the names
and other information about parties debarred, suspended, or voluntarily excluded under the Nonprocurement Common Rule or the Federal Acquisition Regulation, parties who have been proposed for debarment under the Federal Acquisition Regulation, and parties determined to be ineligible.
Major system means that combination of elements that will function together to produce the capabilities required to fulfill a mission need. The elements may include hardware, equipment, software, or any combination thereof, but exclude construction or other improvements to
real property. A system is a major system if--
(1) The Department of Defense is responsible for the system and the total expenditures for research, development, test, and evaluation for the system are estimated to be more than $115,000,000 (based on fiscal year 1990 constant dollars) or the eventual total expenditure for the
acquisition exceeds $540,000,000 (based on fiscal year 1990 constant dollars);
(2) A civilian agency is responsible for the system and total expenditures for the system are estimated to exceed $750,000 (based on fiscal year 1980 constant dollars) or the dollar threshold for a ``major system'' established by the agency pursuant to Office of Management and Budget Circular A-109, entitled ``Major System Acquisitions,'' whichever is greater; or
(2) The system is designated a ``major system'' by the head of the agency responsible for the system (10 U.S.C. 2302 and 41 U.S.C. 403).
May denotes the permissive. However, the words ``no person may * * *'' mean that no person is required, authorized, or permitted to do the act described.
Must (see ``shall'').
Nondevelopmental item means--
(2) Any item described in paragraph (1) of this definition that requires only minor modification or modifications of a type customarily available in the commercial marketplace in order to meet the
requirements of the procuring department or agency; or
Novation agreement means a legal instrument--
Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called ``bids'' or
``sealed bids'' responses to requests for proposals (negotiation) are offers called ``proposals'' responses to requests for quotations (negotiation) are not offers and are called ``quotes.'' For unsolicited proposals, see subpart 15.6.
Option means a unilateral right in a contract by which, for a specified time, the Government may elect to purchase additional supplies or services called for by the contract, or may elect to extend
Organizational conflict of interest means that because of other activities or relationships with other persons, a person is unable or potentially unable to render impartial assistance or advice to the
Government, or the person's objectivity in performing the contract work is or might be otherwise impaired, or a person has an unfair competitive advantage.
Performance-based contracting means structuring all aspects of an acquisition around the purpose of the work to be performed as opposed to either the manner by which the work will be
performed or broad and imprecise statements of work.
Pollution prevention means any practice that--
Power of attorney means the authority given one person or corporation to act for and obligate another, as specified in the instrument creating the power; in corporate suretyship, an instrument
under seal that appoints an attorney-in-fact to act in behalf of a surety company in signing bonds (see also ``attorney-in-fact'' at 28.001).
Procurement (see ``acquisition'').
Procuring activity means a component of an executive agency having a significant acquisition function and designated as such by the head of the agency. Unless agency regulations specify otherwise, the term ``procuring activity'' is synonymous with ``contracting activity.''
Recovered material means waste materials and by-products recovered or diverted from solid waste, but the term does not include those materials and by-products generated from, and commonly reused within, an original manufacturing process. For use in subpart 11.3 for paper
and paper products, see the definition at 11.301.
Segment means one of two or more divisions, product departments, plants, or other subdivisions of an organization reporting directly to a home office, usually identified with responsibility for profit and/or producing a product or service. The term includes--
(i) Not less than 51 percent of which is owned by one or more service-disabled veterans or, in the case of any publicly owned business, not less than 51 percent of the stock of which is owned by
one or more service-disabled veterans; and
Shop drawings means drawings submitted by the construction contractor or a subcontractor at any tier or required under a construction contract, showing in detail either or both of the
Signature or signed means the discrete, verifiable symbol of an individual which, when affixed to a writing with the knowledge and consent of the individual, indicates a present intention to
authenticate the writing. This includes electronic symbols.
Simplified acquisition threshold means $100,000, except that in the case of any contract to be awarded and performed, or purchase to be made, outside the United States in support of a contingency operation (as defined in 10 U.S.C. 101(a)(13)) or a humanitarian or peacekeeping operation (as defined in 10 U.S.C. 2302(8) and 41 U.S.C. 259(d)), the term means $200,000.
Small business subcontractor means a concern, including affiliates, that for subcontracts valued at--
Small disadvantaged business concern (except for 52.212-3(c)(2) and 52.219-1(b)(2) for general statistical purposes and 52.212-3(c)(7)(ii), 52.219-22(b)(2), and 52.219-23(a) for joint ventures under the price evaluation adjustment for small disadvantaged business concerns), means
an offeror that represents, as part of its offer, that it is a small business under the size standard applicable to the acquisition; and either--
(ii) Where the concern is owned by one or more disadvantaged individuals, the net worth of each individual upon whom the certification is based does not exceed $750,000 after taking into
(2) For a prime contractor, it has submitted a completed application to the Small Business Administration or a private certifier to be certified as a small disadvantaged business concern in accordance with 13 CFR part 124, subpart B, and a decision on that application is pending, and that no material change in disadvantaged ownership and control has occurred since it submitted its application. In this case, a contractor must receive certification as a small disadvantaged
business by the Small Business Administration prior to contract award.
Sole source acquisition means a contract for the purchase of supplies or services that is entered into or proposed to be entered into by an agency after soliciting and negotiating with only one
Supplies means all property except land or interest in land. It includes (but is not limited to) public works, buildings, and facilities; ships, floating equipment, and vessels of every character,
type, and description, together with parts and accessories; aircraft and aircraft parts, accessories, and equipment; machine tools; and the alteration or installation of any of the foregoing.
Suspension means action taken by a suspending official under 9.407 to disqualify a contractor temporarily from Government contracting and Government-approved subcontracting; a contractor that is disqualified is ``suspended.''
Unique and innovative concept, when used relative to an unsolicited research proposal, means that--
Value engineering change proposal (VECP)-(1) means a proposal that--
Virgin material means--
Writing or written (see ``in writing'').
Insert the clause at 52.202-1, Definitions, in solicitations and contracts that exceed the simplified acquisition threshold. If the contract is for personal services, construction, architect-engineer
services, or dismantling, demolition, or removal of improvements, use the clause with its Alternate I. The contracting officer may include additional definitions, provided they are consistent with the clause and the FAR.
5. Amend section 3.401 by adding an introductory paragraph; and by removing ``, as used in this subpart,'' from the definitions ``Bona fide agency'', ``Bona fide employee'', ``Contingent fee'', and
``Improper influence'' by. The added text reads as follows:
Buying-in, as used in this section, means submitting an offer below anticipated costs, expecting to--
7. Amend section 3.502-1 by adding an introductory paragraph; removing ``, as used in this section,'' from the definitions ``Kickback'', ``Person'', ``Prime contract'', ``Prime Contractor'',
``Prime Contractor employee'', and ``Subcontract''; removing ``, as used in this section, `` from the definition ``Subcontractor''; and redesignating paragraphs (a) and (b) as (1) and (2), respectively. The added text reads as follows:
10. In section 4.901, revise the section heading as set forth above; and remove the definition ``Taxpayer Identification Number (TIN).''
5.202 [Amended]
11. In section 5.202, amend paragraph (a)(8) by removing ``6.003'' and adding ``2.101'' in its place.
12. Amend section 5.501, by adding an introductory paragraph; by removing ``, as used in this subpart,'' from the definitions ``Advertisement'' and ``Publication''; and by redesignating paragraphs
(a) and (b) in the definition ``Publication'' as (1) and (2), respectively. The added text reads as follows:
This part prescribes policies and procedures to promote full and open competition in the acquisition process and to provide for full and open competition, full and open competition after exclusion of sources, other than full and open competition, and competition advocates. This
part does not deal with the results of competition (e.g., adequate price competition), that are addressed in other parts (e.g., part 15).
6.003 [Removed and Reserved]
16. Amend section 6.302-3 in paragraph (a)(2)(iii) by removing ``(see 33.201)''.
17. Amend section 7.101 by adding an introductory paragraph; removing the definitions ``Acquisition planning'' and ``Design to cost''; and by removing ``, as used in this subpart,'' from the
definitions ``Acquisition streamlining'', and ``Planner''. The added text reads as follows:
19. In section 8.501, add an introductory paragraph; and remove ``, as used in this subpart,'' from the definition ``Bureau of Land Management''. The added text reads as follows:
20. In section 8.701, add an introductory paragraph; and amend the definitions ``Allocation'', ``Central nonprofit agency'', ``Committee'', and ``Procurement List'' by removing ``, as used in this
subpart,''. The added text reads as follows:
21. Amend section 8.801 by adding an introductory paragraph; and '' removing ``, as used in this subpart,'' from the definition ``Related supplies''. The added text reads as follows:
22. Amend section 8.1101 by adding an introductory paragraph; removing from the definition ``Leasing'' ``, as used in this subpart,''; and redesignating paragraphs (a) and (b) in the definition
``Motor vehicle'' as (1) and (2), respectively. The added text reads as follows:
9.101 [Amended]
23. Amend section 9.101 by revising the section heading to read ``Definition''; by removing the definitions ``Preaward survey'' and ``Responsible prospective contractor''; and by adding ``, as used in this subpart,'' after the word ``activity'' in the definition ``Surveying activity.''
24. Amend section 9.201 by adding an introductory paragraph; and by removing the definitions ``Procuring activity'', ``Qualification requirement'', and ``Qualified products list (QPL).'' The added text reads as follows:
25. Amend section 9.301 by revising the section heading to read as set forth above; and by removing the definitions ``First article'' and ``First article testing.''
9.400 [Amended]
26. Amend section 9.400 in paragraph (a)(2) by removing ``9.403'' and adding ``2.101'' in its place.
b. Remove the definitions ``Adequate evidence'', ``Conviction'', ``Debarment'', ``Ineligible'', ``List of Parties Excluded from Federal Procurement and Nonprocurement Programs'', ``Preponderance of the evidence'', and ``Suspension'';
c. In the definitions ``Affiliates'', ``Contractor'', ``Debarring official'', and ``Suspending official'', redesignate paragraphs (a) and (b) as (1) and (2), respectively;
d. Amend the definitions ``Agency'', ``Contractor'', and ``Unfair trade practices'' by removing ``, as used in this subpart,'' and
e. In the definition ``Indictment'' remove ``shall be'' and add ``is'' in its place. The added text reads as follows:
b. In the definition ``Marketing consultant'' remove ``means'' and add ``, as used in this subpart, means'' in its place; and redesignate paragraphs (a) through (d) as (1) through (4), respectively; and
c. Remove the definition ``Organizational conflict of interest''.
9.601 [Amended]
29. Amend section 9.601 in the definition ``Contractor team arrangement'' by adding ``, as used in this subpart,'' after the word ``arrangement'' the first time it is used; and by redesignating
paragraphs (a) and (b) as (1) and (2), respectively.
9.701 [Amended]
31. Amend section 11.601 by adding an introductory paragraph; and by removing ``, as used in this subpart,'' from the definitions ``Authorized program'', ``Controlled materials'', and ``Delegate
Agency''. The added text reads as follows:
13.001 [Amended]
32. Amend section 13.001 by removing the definition ``Purchase order''.
33. Amend section 13.501 in paragraph (a)(1)(i) by removing ``6.003'' and adding ``2.101'' in its place.
The master solicitation is provided to potential sources who are requested to retain it for continued and repetitive use. Individual solicitations must reference the date of the current master
solicitation and identify any changes. The contracting officer must--
35. Amend section 15.001 by adding, in alphabetical order, the definitions ``Deficiency'' and ``Weakness'' to read as follows:
Weakness means a flaw in the proposal that increases the risk of unsuccessful contract performance. A ``significant weakness'' in the proposal is a flaw that appreciably increases the risk of unsuccessful contract performance.
b. Remove the definitions ``Cost or pricing data'', ``Cost realism'', ``Forward pricing rate agreement'', ``Forward pricing rate recommendation'', and ``Information other than cost or pricing data''; and
c. Remove ``, as used in this subpart,'' from the definitions ``Price'' and ``Subcontract''. The added text reads as follows:
15.402 [Amended]
a. In the introductory paragraph remove ``shall'' and add ``must'' in its place;
b. In the introductory text of paragraph (a) remove ``shall'' each time it is used (twice) and add ``must'' in its place;
c. In paragraph (a)(2)(ii) remove ``15.401'' and add ``2.101'' in its place; and
d. In paragraph (a)(3), second sentence, remove ``shall'' and add ``must'' in its place.
39. Amend section 15.403-1 in the first sentence of paragraph (c)(3) by removing ``(c)(1) or (2)'' and adding ``(3)(i) or (ii)'' in its place.
40. Amend section 15.403-4 in paragraph (c) by removing ``shall'' each time it is used (twice) and adding ``must'' in its place; and by removing ``15.401'' and adding ``2.101'' in its place.
15.406-2 [Amended]
41. Amend section 15.406-2 paragraph (a) by removing ``shall'' each time it is used (twice) and adding ``must'' in its place; and by removing from the first sentence of the Certificate of Current Cost or Pricing Data ``15.401'' and adding ``2.101'' in its place.
43. In section 15.408, amend Table 15-2, which follows paragraph (m)(4), by adding a comma after the word ``title'' in paragraph A. (11) of the General Instructions; and by removing from paragraph C. ``15.401'' and adding ``2.101'' in its place.
15.601 [Amended]
44. Amend section 15.601 by removing the definition ``Unsolicited proposal.''
15.604 [Amended]
45. Amend section 15.604 in the introductory text of paragraph (a), second sentence, by removing ``shall'' and adding ``must'' in its place; and in paragraph (a)(1) by removing ``15.601'' and adding ``2.101'' in its place.
17.103 [Amended]
46. Amend section 17.103 in the definition ``Cancellation'' by redesignating paragraphs (a) and (b) as (1) and (2), respectively.
17.501 [Amended]
48. In section 17.501, add ``, as used in this subpart,'' after the word ``acquisition''.
b. In the definitions ``Concern'', ``Fair market price'', and ``Industry'' remove ``, as used in this part,''; and
c. Remove the definitions ``HUBZone'', ``HUBZone small business concern'', ``Labor surplus area'', ``Labor surplus area concern'', ``Small disadvantaged business concern'', and ``Women-owned small business concern''. The added text reads as follows:
b. In the definition of ``Affiliates''--
-- Remove ``As used in this subpart, business'' and add ``Business'' in its place;
-- Redesignate paragraphs (a) through (g) as (1) through (7), respectively;
-- In the newly designated paragraph (3), redesignate paragraphs (1) through (3) as (i) through (iii), respectively;
-- In the newly designated paragraph (6), redesignate paragraphs (1) through (3) as (i) through (iii), respectively;
-- In the newly designated paragraph (7), redesignate paragraphs (1) through (5) as (i) through (v), respectively;
-- In the newly designated paragraph (7)(i) redesignate paragraphs (i) and (ii) as (A) and (B), respectively;
-- In the newly designated paragraph (7)(i)(B), redesignate paragraphs (A) and (B) as (1) and (2), respectively; and
-- In the newly designated paragraph (7)(v), remove ``(g)(1)(i) and (ii)'' and add ``(7)(i)(A) and (B)'' in its place; and
c. In the definition ``Annual receipts'', redesignate paragraphs (1) and (2) as (i) and (ii), respectively; redesignate paragraphs (a) and (b) as (1) and (2), respectively; and in the newly designated paragraph (2) remove ``paragraph (a) above'' and add ``paragraph (1) of this definition'' in its place. The added text reads as follows:
51. In section 19.701, add an introductory paragraph; and remove the definition ``Small business subcontractor''. The added text reads as follows:
19.703 [Amended]
52. Amend section 19.703 in paragraph (a)(1) by removing ``in 2.101 or 19.001'' and adding ``(see 2.101 and 19.001)'' in its place.
19.902 Designated SBA district.
54. Amend section 22.103-1 by revising the section heading to read as set forth above; in the definition ``Normal workweek'' by redesignating paragraphs (a) and (b) as (1) and (2), respectively; and by removing the definitions ``Overtime'', ``Overtime premium'', and ``Shift premium''.
b. Remove ``, as used in this subpart,'' from the definitions ``Building'' or ``work'', ``Construction, alteration, or repair'', ``Public building'' or ``public work'', and ``Wages''.
c. Amend the definition ``Laborers or mechanics'' as follows--
-- Remove ``, as used in this subpart,'';
-- Redesignate paragraphs (a) through (d) as (1) through (4), respectively;
-- In the newly designated paragraph (2), redesignate paragraphs (1) and (2) as (i) and (ii), respectively; and redesignate paragraphs (i) and (ii) as (A) and (B), respectively; and
-- In the newly designated paragraph (4), remove ``paragraph (c)'' and add ``paragraph (3)'' in its place; and
d. Amend the definition ``Site of the work'' as follows:
-- Redesignate paragraphs (a) through (c) as (1) through (3),
-- In the newly designated paragraph (1), remove ``paragraph
(b)'' and add ``paragraph (2)'' in its place; and
-- In the newly designated paragraph (2), remove ``paragraph
(c)'' and add ``paragraph (3)'' in its place. The added text reads as follows:
56. Amend section 22.1001 by adding an introductory paragraph; revising the definition ``Act or Service Contract Act''; and removing ``, as used in this subpart,'' from the definitions ``Contractor'',
``Multiple year contracts'', ``Notice'', ``Service contract'', and ``United States''. The added and revised text reads as follows:
22.1102 [Amended]
57. In the first sentence of section 22.1102, add ``, as used in this subpart,'' after ``Professional employee''.
58. Amend section 22.1202, by adding an introductory paragraph; and removing ``as used in this subpart,'' from the definitions ``Building service contract'', ``Public building'' and ``Service employee''. The added text reads as follows:
22.1202 Definitions.
PART 23--ENVIRONMENT, CONSERVATION, OCCUPATIONAL SAFETY, AND DRUG-FREE WORKPLACE
59. Amend section 23.503 by adding an introductory paragraph; removing ``, as used in this subpart,'' from the definition ``Controlled substance''; and removing the definition ``Drug-free
workplace''. The added text reads as follows:
23.904 [Amended]
61. In section 23.904, add ``, as used in this subpart,'' after ``Toxic chemicals''.
62. Amend section 24.101 by adding an introductory paragraph; and by removing ``, as used in this subpart,'' from the definitions ``Agency'', ``Individual'', ``Maintain'', ``Operation of a system of
records'', ``Record'', and ``System of records on individuals''. The added text reads as follows:
PART 27--PATENTS, DATA, AND COPY RIGHTS
64. Amend section 27.301 by adding an introductory paragraph; and by removing ``, as used in this subpart,'' from the definitions ``Invention'', ``Made'', ``Nonprofit organization'', ``Practical
application'', ``Small business firm'', and ``Subject invention''. The added text reads as follows:
65. Amend section 27.401 by adding an introductory paragraph; removing the definition ``Computer software''; and removing ``, as used in this subpart,'' from the definitions ``Data'', ``Form, fit, and function data'', ``Limited rights'', ``Limited rights data'' (both definitions), ``Restricted computer software'', ``Restricted rights'', ``Technical data'', and ``Unlimited rights''. The added text reads as follows:
b. Remove ``, as used in this part,'' from the definition ``Attorney-in-fact''; and in the parenthetical add ``at 2.101'' after the word ``attorney'';
c. In the definition ``Bid guarantee'', redesignate paragraphs (a) and (b) as (1) and (2), respectively;
d. In the definition ``Bond'', redesignate paragraphs (a) through (f) as (1) through (6), respectively; and
e. Remove the definitions ``Insurance'', ``Irrevocable letter of credit (ILC)'', ``Power of attorney'', and ``Surety''. The added text reads as follows:
28.308 [Amended]
67. Amend section 28.308 in the first sentence of paragraph (a) by removing ``(see 31.001)''.
b. Revise the definition ``Actual costs'';
c. In the definition ``Actuarial cost method'', remove ``that uses'' and add ``which uses'', in its place;
d. Remove the definition ``Business unit'';
e. Revise the definitions ``Cost objective'' and ``Final cost objective'';
f. Remove ``, as used in this part,'' from the definition ``Fiscal year'';
g. Remove the definition ``General and administrative (G&A) expense'';
h. Revise the definition ``Indirect cost pools'';
i. Remove ``, as used in this part'' from the definitions ``Job''; Job class of employees''; and ``Labor market'';
j. Remove the definition ``Pricing'';
k. Revise the definition ``Profit center''; and
l. Remove the definitions ``Projected average loss'', ``Residual value'', ``Segment'', ``Self-insurance'', and ``Unallowable cost''.
Final cost objective means (except for subparts 31.3 and 31.6) a cost objective that has allocated to it both direct and indirect costs and, in the contractors accumulation system, is one of the final
b. Remove the paragraph designation from paragraph ``(a)'';
d. Remove ``, as used in this subsection,'' from the definitions ``Costs of idle facilities or idle capacity'', ``Facilities'', ``Idle capacity'', and ``Idle facilities'';. The added text reads as follows:
71. Amend section 31.205-18 in the heading of paragraph (a) by adding ``As used in this subsection--'' after the word ``Definitions.''; removing ``, as used in this subsection,'' from the
definitions ``Applied research'', ``Bid and proposal (B&P) costs'', ``Company'', ``Development'', ``Independent research and development (IR&D)'' and ``Systems and other concept formulation studies''; and revising the definition ``Basic research'' to read as follows:
31.205-32 [Amended]
72. Amend section 31.205-32 in the first sentence by removing ``are those'' and adding ``means costs'' in its place; and in the second sentence by removing ``Such'' and adding ``These'' in its place.
31.205-33 [Amended]
73. Amend section 31.205-33 in the first sentence of paragraph (a) by removing ``subpart, are'' and adding ``subsection, means'' in its place.
31.205-39 [Amended]
74. Amend the second sentence of section 31.205-39 by removing the word ``such''.
75. Amend section 31.205-47 in the heading of paragraph (a) by adding ``As used in this subpart--'' after ``Definitions.'', and by removing the definition ``Conviction''; and in paragraph (f)(5) by redesignating paragraphs (i) & (ii) as (A) and (B), and (1) and (2) as (i) and (ii), respectively. The added text reads as follows:
76. Amend section 32.001 by adding an introductory paragraph; adding, in alphabetical order, the definitions ``Commercial interim payment'', ``Delivery payment'', and ``Due date''; and removing ``, as used in this part,'' from the definition ``Contract action''. The added text reads as follows:
Delivery payment means a payment for accepted supplies or services, including payments for accepted partial deliveries. Commercial financing payments are liquidated by deduction from these payments. Delivery payments are invoice payments for prompt payment purposes. Due date means the date on which payment should be made.
77. Amend section 32.006-2 by revising the section heading to read as set forth above; by removing the introductory paragraph; by adding ``, as used in this section,'' after the word ``official'' in the definition ``Remedy coordination official''; and by removing the definition ``Substantial evidence''.
32.113 [Amended]
78. Amend section 32.113 in paragraph (e) by removing ``part 6'' and adding ``2.101'' in its place.
79. Amend section 32.202-2, by revising the first sentence in the definition ``Commercial advance payment''; and by revising the definitions ``Commercial interim payment'' and ``Delivery payment'' to read as follows:
32.202-3 [Amended]
80. Amend section 32.202-3 in paragraphs (d) and (e) by removing ``32.202-2'' and adding ``32.001'' in its place.
81. Amend section 32.301 by adding an introductory paragraph; and by removing ``, as used in this subpart,'' from the definitions ``Borrower'', ``Guaranteed loan'' or ``V loan'', and ``Guaranteeing
32.801 [Amended]
82. Amend section 32.801 by removing the definition ``Assignment of claims''.
83. Amend section 32.902 by adding an introductory paragraph; removing ``, as used in this subpart,'' from the definitions ``Contract financing payment'', ``Day'', ``Designated billing office,'' and ``Invoice payment''; by removing the definitions ``Due date'', ``Invoice'', and ``Proper invoice''; and by removing ``which'' from the definition ``Specified payment date'' the first time it appears and adding ``that'' in its place. The added text reads as follows:
b. Remove the definition ``Electronic Funds Transfer'';
c. Remove from the definition ``EFT information'' ``EFT information'' and add ``Electronic Funds Transfer information (EFT)'' in its place; and
d. Remove ``, as used in this part,'' from the definition ``Governmentwide commercial purchase card''. The added text reads as follows:
b. In the definition ``Day'' redesignate paragraphs (a) and (b) as (1) and (2), respectively; and in the newly designated paragraph (2), redesignate paragraphs (1) and (2) as (i) and (ii), respectively;
c. Remove ``, as used in this subpart,'' from the definitions ``Day'', ``Filed'', and ``Interested party for the purpose of filing a protest''; and
d. Remove ``, as used in this subpart,'' from the definition ``Protest'' and redesignate paragraphs (a) through (d), as (1) through (4), respectively. The added text reads as follows:
b. Revise the first sentence of the definition ``Accrual of a claim'';
c. Remove ``as used in this subpart,'' from the definitions ``Claim'' and ``Defective certification'';
d. Remove ``, as used in this part,'' from the definition ``Misrepresentation of fact'';
e. In the introductory paragraph of the definition ``Issue in controversy'' remove ``which'' and add ``that'' in its place; and
f. Remove the definition ``Neutral person''.
34.001 [Amended]
87. Amend section 34.001 in the definition ``Effective competition'' by removing ``which'' and adding ``that'' (twice) in its place.
34.101 [Amended]
88. Amend section 34.101 in the definition ``Item of supply'' by removing ``for the purpose of'' and adding ``as used in'' in its place.
35.001 [Amended]
89. Amend section 35.001 by removing the definitions ``Basic research'', ``Broad agency announcement'', ``Cost sharing'', and ``Federally Funded Research and Development Centers (FFRDC's)''.
90. Amend section 35.017 in paragraph (b) by adding an introductory paragraph; by removing ``, as used in this section,'' from the definitions ``Nonsponsor'' and ``Primary sponsor''; and by removing the definition ``Special competency''. The added text reads as follows:
b. Remove ``, as used in this part'' from the definitions ``Contract'', ``Design'', ``Design-bid-build'', ``Design-build'', ``Firm'', ``Plans and specifications'', ``Record drawings'', and ``Two-
phase design-build selection procedures''; and
c. Remove the definitions ``Architect-engineer services'', ``As-built drawings'', and ``Shop drawings''.
36.601-3 [Amended]
92. Amend section 36.601-3 in paragraph (d) by removing ``36.102''
and adding ``2.101'' in its place.
93. Amend section 37.101 by adding an introductory paragraph; by removing the definitions ``Performance-based contracting'' and ``Personal services contract''; and in the definition ``Service
contract'' by redesignating paragraphs (a) through (i) as (1) through (9), respectively. The added text reads as follows:
37.103 [Amended]
94. Amend section 37.103 in paragraph (a)(1) by removing ``in 37.101'' and adding ``at 2.101 and 37.101'' in its place.
37.104 [Amended]
95. Amend section 37.104 in the first sentence of paragraph (a) by removing ``As indicated in 37.101, a'' and adding ``A'' in its place.
37.201 [Amended]
96. Amend section 37.201 by removing ``, as used in this subpart,'' from the definition ``Covered personnel''; and by redesignating paragraphs (a)(1) through (a)(6) as (a)(i) through (a)(vi), paragraphs (a) through (c) as (1) through (3), respectively.
37.502 [Amended]
97. Amend section 37.502 in paragraph (a)(3) by removing ``36.102'' and adding ``2.101'' in its place.
b. Remove ``, as used in this part,'' from the definitions ``Modular contracting'' and ``National security system'';
c. In the definition ``National security system'', redesignate paragraphs (a) through (e) as (1) through (5), respectively; and
d. In the definition ``Year 2000 compliant'', remove ``as used in this part, means,'' and add ``means'' after the word ``technology,''. The added text reads as follows:
100. Amend section 42.302 in the last sentence of the introductory text of paragraph (a) by removing ``(see 42.001)'' and adding ``(see 2.101)'' in its place.
42.503-2 [Amended]
101. Amend section 42.503-2 by removing ``(see 43.101)'' from the fourth sentence.
b. In the introductory paragraph of the definition ``Billing rate'' remove ``means'' and add ``as used in this subpart means'', and redesignate paragraphs (a) and (b) as (1) and (2), respectively; and
c. Remove the definitions ``Business unit'', ``Final indirect cost rate'', ``Forward pricing rate agreement'', ``Indirect cost'', and ``Indirect cost rate''.
104. Amend section 43.101 by adding an introductory paragraph; by removing the definitions ``Change order'', ``Contract modification'', and ``Supplemental agreement'', and the introductory text of the definition ``Effective date'' including the heading Effective date.
106. Amend section 44.101 by adding an introductory paragraph; by removing the definition ``Consent to subcontract''; and by removing ``, as used in this part,'' from the definitions ``Contractor'', ``Subcontract'', and ``Subcontractor''. The added text reads as follows:
107. Amend section 46.101 by adding an introductory paragraph; by removing ``, as used in this part,'' from the definitions ``Acceptance'' and ``Conditional acceptance''; and by removing the
definitions ``Commercial item'', ``Inspection'', and ``Latent defect''. The added text reads as follows:
(a)(1) * * * If the contractor's design rather than the Government's design will be used, insert the word ``design'' before ``material'' in paragraph (b)(1)(i).
(b)(1) * * * If the contractor's design rather than the Government's design will be used, insert the word ``design'' before ``material'' in paragraph (b)(1).
110. Amend section 47.001 by adding an introductory paragraph; by removing ``as used in this part'' from the definition ``Common carrier'', and removing the definitions ``F.o.b.'', ``F.o.b. origin'',
``F.o.b. destination'', ``Freight'', and ``Shipment''. The added text reads as follows:
111. Amend section 47.201 by adding an introductory paragraph; and removing ``, as used in this subpart'' from the definitions ``General freight'', ``Household goods'', and ``Office furniture''. The added text reads as follows:
112. Amend section 47.401 by adding an introductory paragraph; and by removing ``, as used in this subpart,'' from the definition ``United States''. The added text reads as follows:
b. Remove ``, as used in this subpart'' from the definitions ``Government vessel'', ``Privately owned U.S.-flag commercial vessel'', and ``U.S.-flag vessel;
c. In the definition ``Privately owned U.S.-flag commercial vessel'' redesignate paragraphs (a) through (d) as (1) through (4).
b. Remove ``, as used in this part,'' from the definitions ``Acquisition savings'', ``Collateral costs'', ``Collateral savings'',
``Contracting office'', ``Contractor's development and implementation costs'', and ``Value engineering proposal'';
c. In the definition ``Acquisition savings'' redesignate paragraphs (a) through (c) as (1) through (3), respectively;
e. In the newly designated paragraphs (2) and (3), remove ``which'' and add ``that'' in their places;
f. In the definition ``Future unit cost reduction'', ``Instant contract'', ``Sharing base'', ``Sharing period'', and ``Unit'', remove ``, as used in this part,'';
g. In the definition ``Future unit cost reduction'', redesignate paragraphs (a) and (b) as (1) and (2), respectively; and in the newly designated paragraph (2) remove ``which'' and add ``that'' in its
h. Revise the definition ``Government costs''; and
i. Remove the definitions ``Value engineering'' and ``Value engineering change proposal (VECP)''.
Government costs means those agency costs that result directly from developing and implementing the VECP, such as any net increases in the cost of testing, operations, maintenance, and logistics support. The term does not include the normal administrative costs of processing the
VECP or any increase in instant contract cost or price resulting from negative instant contract savings, except that for use in 52.248-3, see the definition at 52.248-3(b).
b. Remove ``, as used in this part,'' from the definitions ``Claim'', ``Continued portion of the contract'', ``Other work'', and ``Settlement proposal'';
c. Remove the definitions ``Effective date of termination'' and ``Termination contracting officer''; and
d. Revise the definition ``Settlement agreement''.
116. Amend section 50.001 by adding an introductory paragraph; and removing ``, as used in this part,'' from the definitions ``Approving authority'' and ``Secretarial level''. The added text reads as follows:
50.001 Definitions.
117. Amend section 52.101 in the heading of paragraph (a) by removing ``Definitions'' and adding ``Definition'' in its place; and by removing the definitions ``Alternate'', ``Contract clause'' or
``clause'', ``Solicitation provision'' or ``provision'', and ``Substantially as follows'' or ``substantially the same as''.
c. In the newly designated paragraph (f)(2), remove ``(e)(1)'' and add ``(f)(1)'' in its place; and in the newly designated (f)(3) remove
``(e)(1) or (e)(2)'' and add ``(f)(1) or (f)(2)'' in its place; and
d. In Alternate I of the clause, remove ``(Apr 1984)'' and add ``(Mar 2001)'' in its place; and remove ``paragraph (c)'' and add ``paragraph (g)'' in its place. The revised and new text reads as
(a) Agency head or head of the agency means the Secretary (Attorney General, Administrator, Governor, Chairperson, or other chief official, as appropriate) of the agency, unless otherwise
indicated, including any deputy or assistant chief official of the executive agency.
(d) Component means any item supplied to the Government as part of an end item or of another component, except that for use in 52.225-9, and 52.225-11 see the definitions in 52.225-9(a) and
52.225-11(a).
119. Amend section 52.212-3 in the heading of the clause by removing ``(OCT 2000)'' and adding ``(MAR 2001)'' in its place; and in paragraph (a) in the definition ``Women-owned small business concern'' by removing from paragraph (1) ``Which'' and ``women or'' and adding ``That'' and ``women; or'' in their places, respectively.
121. Amend section 52.215-1 by revising the date of the provision; and in paragraph (a) of the provision by revising the definition ``In writing'' or ``written'' to read as follows:
INSTRUCTIONS TO OFFERORS--COMPETITIVE ACQUISITION (MAR 2001)
122. Amend section 52.219-1 in the provision heading by removing ``(OCT 2000)'' and adding ``(MAR 2001)'' in its place; and in paragraph (c) under the definition ``Women-owned small business concern'', by removing from paragraph (1) ``Which'' and ``women or'' and adding ``That'' and ``women; or'' in their places, respectively.
123. Amend section 52.219-23 by revising the date of the clause; and in paragraph (a) of the clause by revising the definition ``Minority institution'' to read as follows:
Minority institution means an institution of higher education meeting the requirements of Section 1046(3) of the Higher Education Act of 1965 (20 U.S.C. 1067k, including a Hispanic-serving
institution of higher education, as defined in Section 316(b)(1) of the Act (20 U.S.C. 1101a)).
52.223-6 [Amended]
124.-125. Amend section 52.223-6 in the clause heading by removing ``(JAN 1997)'' and adding ``(MAR 2001)'' in its place; and in the definition ``drug-free workplace'' by removing ``at which'' and adding ``where'' in its place.
(a) Definition. Ozone-depleting substance, as used in this clause, means any substance the Environmental Protection Agency
designates in 40 CFR part 82 as--
HISTORICALLY BLACK COLLEGE OR UNIVERSITY AND MINORITY INSTITUTION
REPRESENTATION (MAR 2001)
Historically black college or university means an institution determined by the Secretary of Education to meet the requirements of 34 CFR 608.2. For the Department of Defense, the National
Aeronautics and Space Administration, and the Coast Guard, the term also includes any nonprofit research institution that was an integral part of such a college or university before November 14,
52.232-25, 52.232-26, and 52.232-27 [Amended]
128. Amend sections 52.232-25, 52.232-26, and 52.232-27 in the clause headings by removing ``(JUN 1997)'' and adding ``(MAR 2001)'' in its place; and in the third sentence of the undesignated introductory paragraph by removing ``section 32.902'' and adding ``sections 2.101 and 32.902'' in its place.
129. Amend section 52.242-3 in the clause heading by removing ``(OCT 1995)'' and adding ``(MAR 2001)'' in its place; and by revising paragraph (c) to read as follows:
a. In the clause heading, remove ``(APR 1984)'' and add ``(MAR 2001)'' in its place;
b. In the heading of paragraph (a), add ``As used in this clause--'' after the word ``Definitions'';
c. In the definition ``Contractor's managerial personnel,'' remove ``, as used in this clause,'', and in paragraph (2) remove ``at which'' and add ``where'' in its place; and
d. In the definition ``Supplies,'' remove ``, as used in this clause,''.
a. In the clause heading, remove ``(Jan 1986)'' and add ``(Mar 2001)'' in its place;
b. In the heading of paragraph (a), add ``As used in this clause--'' after the word ``Definitions.'';
d. In the definition ``Materials,'' remove ``, as used in this clause,''.
d. In the definition ``Work,'' remove ``, as used in this clause,''.
Supplies means the end items furnished by the Contractor and related services required under this contract. The word does not include ``data.''
WARRANTY OF SYSTEMS AND EQUIPMENT UNDER PERFORMANCE PECIFICATIONS OR DESIGN CRITERIA (MAR 2001)
Supplies means the end items furnished by the Contractor and related services required under this contract. Except when this contract includes the clause entitled Warranty of Data, supplies
also mean ``data.''
136. Amend section 52.246-20 by revising the introductory paragraph and the date of the clause; and in paragraph (a) of the clause by removing the paragraph heading ``Definitions'' and adding
``Definition'' in its place; and by removing the definition ``Correction''. The revised text reads as follows:
[FAC 97-22; FAR Case 2000-301; Item II]
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 802 of the National Defense Authorization Act for Fiscal Year 2000 and
the Cost Accounting Standards (CAS) Board's final rule, Applicability, Thresholds and Waiver of Cost Accounting Standards Coverage. The FAR rule revises CAS applicability requirements, dollar thresholds, and waiver requirements.
DATES: Effective Date: January 10, 2001.
FOR FURTHER INFORMATION CONTACT: The FAR Secretariat, Room 4035, GS Building, Washington, DC, 20405, (202) 501-4755, for information pertaining to status or publication schedules. For clarification of content, contact Ms. Linda Nelson, Procurement Analyst, at (202) 501-1900. Please cite FAC 97-22, FAR case 2000-301.
Section 802 of the National Defense Authorization Act for Fiscal Year 2000 (Pub. L. 106-65)--
-- Revised, at 41 U.S.C. 422(f)(2)(B), the categories of contracts and subcontracts that are exempt from all CAS requirements;
-- Required the Administrator for Federal Procurement Policy to revise the rules and procedures issued under 41 U.S.C. 422(f) to increase the dollar threshold for full CAS coverage from $25 million to $50 million; and
-- Revised 41 U.S.C. 422(f) to permit the head of an executive agency to waive the applicability of CAS under certain conditions.
This FAR rule--
-- Amends the provision at FAR 52.230-1, Cost Accounting Standards Notices and Certification, to remove the requirement that a contractor or subcontractor must have received at least one CAS-covered contract exceeding $1 million (``trigger contract'') to be subject to ``full CAS coverage,'' since the CAS Board removed this ``trigger contract'' amount from its corresponding solicitation provision, Cost Accounting Standards Notices and Certification, at 48 CFR 9903.201-3.
-- Revises FAR 30.201-4(b)(1), Disclosure and consistency of cost accounting practices, and amends the provision at FAR 52.230-1 to reflect changes made by the CAS Board to increase the dollar threshold for full CAS coverage from $25 million to $50 million; and
-- Revises the CAS waiver procedures and conditions at FAR 30.201-5, as required by Section 802 of Pub. L. 106-65.
Government procurement. Dated: December 22, 2000.Al Matera, Acting Director, Federal Acquisition Policy Division
[FAC 97-22; FAR Case 1999-016; Item III]
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 permit federally insured credit unions to participate in the maintenance of special accounts for advance payments.
DATE: Effective Date: March 12, 2001.
FOR FURTHER INFORMATION CONTACT: The FAR Secretariat, Room 4035, GS Building, Washington, DC, 20405, (202) 501-4755, for information pertaining to status or publication schedules. For clarification of content, contact Mr. Jeremy Olson, at (202) 501-4755. Please cite FAC 97-22, FAR case 1999-016.
Prior to publication of this final FAR rule, FAR Subpart 32.4, Advance Payments for Non-Commercial Items, required, unless exempted by FAR 32.409-3(e) or (f), that contractors deposit advance payments in special accounts separate from their general or other funds. FAR 32.411
and other FAR text excluded credit unions from participating in the maintenance of these special accounts by requiring that contractors establish these special accounts only at banks that are members of the Federal Reserve System (FRS) or insured by the Federal Deposit Insurance Corporation (FDIC). However, many credit unions are federally insured through the National Credit Union Administration (NCUA).
Therefore, these credit unions also are able to provide the Government a measure of security for Federal funds advanced to contractors. This final rule amends FAR Subpart 32.4 and FAR 52.232-12 to change certain terminology (e.g., change the word ``bank'' to ``financial institution'') to provide contractors an additional option of depositing advance payments in special accounts maintained by credit unions that are federally insured by NCUA. This revision will foster
competition among financial institutions that are in the business of providing special accounts for advance payment funds, without increasing the risk to the Government.
DoD, GSA, and NASA published a proposed rule in the Federal Register at 65 FR 25614, May 2, 2000. Two respondents submitted public comments on the proposed rule. The Councils considered all comments before agreeing to convert the proposed rule to a final rule without
Government procurement. Dated: December 22, 2000. Al Matera, Acting Director, Federal Acquisition Policy Division.
32.408 [Amended]
3. Amend paragraph (b)(4) of section 32.408 by removing ``bank'' both times it appears and adding ``financial institution'' in its place.
a. In paragraph (a) remove ``bank'' and add ``special'' in its place;
b. In paragraphs (b)(2), (c)(2), and (e) remove ``bank''.
d. In paragraph (g) remove ``bank'' both times it appears.
5. In section 32.410, revise the second sentence in paragraph (a)(4) of the ``Findings, Determination, and Authorization for Advance Payments Findings'' to read as follows:
(4) * * * The clause requires that all payments will be deposited in a special account at the Contractor's financial institution and that the Government will have a paramount lien on
(i) the credit balance in the special account, (ii) any supplies contracted for, and (iii) any material or other property acquired for performance of the contract. * * *
This agreement is entered into this ____ day of ____, 20____, between the United States of America (the Government), represented by the Contracting Officer executing this agreement, ________ [Insert the name of the Contractor], a ________ [Insert the name of the State of incorporation] corporation (the Contractor), and ________, a financial institution operating under the laws of ________, located at ________ (the financial institution).
(a) Under date of ________, 20________, the Government and the Contractor entered into Contract No. ____, or a related supplemental agreement, providing for advance payments to the Contractor. A copy of the advance payment terms was furnished to the financial institution.
(b) The contract or supplemental agreement requires that amounts advanced to the Contractor be deposited separate from the Contractor's general or other funds, in a Special Account at a
member bank of the Federal Reserve System, any ``insured'' bank within the meaning of the Act creating the Federal Deposit Insurance Corporation (12 U.S.C. 1811), or a credit union insured by the National Credit Union Administration. The parties agree to deposit the amounts with the financial institution, which meets the requirement.
(c) This Special Account is designated ``________ [Insert the Contractor's name], ________ [Insert the name of the Government agency] Special Account.''
(b) The financial institution is bound by the terms of the contract relating to the deposit and withdrawal of funds in the Special Account, but is not responsible for the application of funds
withdrawn from the account. The financial institution shall act on written directions from the Contracting Officer, the administering office, or a duly authorized representative of either. The financial institution is not liable to any party to this agreement for any action that complies with the written directions. Any written directions received by the financial institution through the
Contracting Officer on ________ [Insert the name of the agency] stationery and purporting to be signed by, or by the direction of ________ or duly authorized representative, shall be, as far as the
rights, duties, and liabilities of the financial institution are concerned, considered as being properly issued and filed with the financial institution by the ________ [Insert the name of the agency].
(c) The Government, or its authorized representatives, shall have access to the books and records maintained by the financial institution regarding the Special Account at all reasonable times
and for all reasonable purposes, including (but not limited to), the inspection or copying of the books and records and any and all pertinent memoranda, checks, correspondence, or documents. The financial institution shall preserve the books and records for a period of 6 years after the closing of this Special Account.
(d) In the event of the service of any writ of attachment, levy of execution, or commencement of garnishment proceedings regarding the Special Account, the financial institution will promptly notify ________ [Insert the name of the administering office].
(e) While this Special Account exists, the financial institution shall inform the Government each month of the financial institution's published prime interest rate and changes to the rate during the month. The financial institution shall give this information to the Contracting Officer on the last business day of the month. [This covenant will not be included in the Special Account Agreements covering interest-free advance payments.] Each of the parties to this agreement has executed the agreement on ________, 20____.
32.412 [Amended]
7. Amend paragraph (f) of section 32.412 by removing ``bank''.
c. Remove ``bank'' from paragraphs (c) and (d);
f. Remove ``bank'' from paragraphs (h), (k)(1) introductory text, (k)(1)(iv), (k)(2)(i), and (m)(1) each time it appears;
h. Amend Alternate II by revising the date to read ``(Mar 2001) ''; and removing ``bank'' from paragraph (c); and
i. Amend Alternate V by revising the date to read ``(Mar 2001)''; removing from the introductory paragraph ``bank''; and revising the heading of the clause and paragraph (m)(11) of Alternate V to read as follows:
(b) Special account. Until (1) the Contractor has liquidated all advance payments made under the contract and related interest charges and (2) the administering office has approved in writing the
release of any funds due and payable to the Contractor, all advance payments and other payments under this contract shall be made by check payable to the Contractor marked for deposit only in the
Contractor's special account with the ________ [insert the name of the financial institution]. None of the funds in the special account shall be mingled with other funds of the Contractor. Withdrawals from the special account may be made only by check of the Contractor
countersigned by the Contracting Officer or a Government countersigning agent designated in writing by the Contracting Officer.
(3) If interest is required under the contract, the Contracting Officer shall determine a daily interest rate based on the higher of (i) the published prime rate of the financial institution
(depository) in which the special account is established or (ii) the rate established by the Secretary of the Treasury under Pub. L. 92-41 (50 U.S.C. App. 1215(b)(2)). The Contracting Officer shall revise the daily interest rate during the contract period in keeping with any changes in the cited interest rates.
(g) Financial institution agreement. Before an advance payment is made under this contract, the Contractor shall transmit to the administering office, in the form prescribed by the administering
office, an agreement in triplicate from the financial institution in which the special account is established, clearly setting forth the special character of the account and the responsibilities of the
financial institution under the account. The Contractor shall select a financial institution that is a member bank of the Federal Reserve System, an ``insured'' bank within the meaning of the Federal
Deposit Insurance Corporation Act (12 U.S.C. 1811), or a credit union insured by the National Credit Union Administration.
[FAC 97-22; FAR Case 1999-021; Item IV]
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 add, in the contract clause addressing terms and conditions for commercial items, the prohibition for a contractor to assign its rights to receive payment in accordance with the Assignment of Claims Act (31 U.S.C. 3727) when a third party makes payment under the contract (e.g., use of the Governmentwide commercial purchase card). This prohibition is currently in the contract clause addressing terms and conditions required to implement statutes or Executive orders for commercial
FOR FURTHER INFORMATION CONTACT: The FAR Secretariat, Room 4035, GS Building, Washington, DC 20405, (202) 501-4755, for information pertaining to status or publication schedules. For clarification of content, contact Ms. Victoria Moss, Procurement Analyst, at (202) 501-4764. Please cite FAC 97-22, FAR case 1999-021.
Paragraph (e) of the clause at FAR 52.232-36, Payment by Third Party, states that a contractor may not assign its rights to receive payment under the assignment of claims terms of the contract if payment is made by a third party (e.g., use of the Governmentwide commercial purchase card). This clause is included in paragraph (b)(25) of the clause at FAR 52.212-5, Contract Terms and Conditions Required to Implement Statutes or Executive Orders--Commercial Items.
Paragraph (b) of the clause at FAR 52.212-4, Contract Terms and Conditions--Commercial Items, states that a contractor may assign its rights to receive payments due as a result of performance of the contract, but paragraph (b) does not include the prohibition against the assignment of claims if payment is made by a third party (e.g., use of the Governmentwide commercial purchase card). FAR 12.302(b) further states that the contracting officer shall not tailor FAR 52.212-4(b).
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. However, the Councils will consider comments from small entities concerning the affected FAR part
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 97-22, FAR case 1999-021), in correspondence.
Government procurement.Dated: December 22, 2000. Al Matera, Acting Director, Federal Acquisition Policy Division.
Contract Terms and Conditions--Commercial Items (Mar 2001)
(b) Assignment. The Contractor or its assignee may assign its rights to receive payment due as a result of performance of this contract to a bank, trust company, or other financing institution,
including any Federal lending agency in accordance with the Assignment of Claims Act (31 U.S.C. 3727). However, when a third party makes payment (e.g., use of the Governmentwide commercial
purchase card), the Contractor may not assign its rights to receive payment under this contract.
[FAC 97-22; FAR Case 1996-023; Item V]
Federal Acquisition Regulation; Clause Flowdown-Commercial Items
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 requirements for the inclusion of FAR clauses in subcontracts for commercial items awarded under contracts for other than commercial items.
FOR FURTHER INFORMATION CONTACT: The FAR Secretariat, Room 4035, GS Building, Washington, DC, 20405, (202) 501-4755, for information pertaining to status or publication schedules. For clarification of content, contact Ms. Victoria Moss, Procurement Analyst, at (202) 501-4764. Please cite FAC 97-22, FAR case 1996-023.
This final rule amends the clause at FAR 52.244-6, Subcontracts for Commercial Items, to revise the list of clauses the contractor must flow down to subcontractors and to clarify that contractors may flow down a minimal number of other clauses.
DoD, GSA, and NASA published a proposed rule in the Federal Register at 62 FR 49903, September 23, 1997. Four sources submitted comments in response to the proposed rule. The Councils considered all comments in the development of the final rule.
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 merely clarifies existing requirements regarding the inclusion of clauses in subcontracts for commercial items awarded under contracts for other than commercial items.
Therefore, DoD, GSA, and NASA amend 48 CFR part 52 as set forthbelow:
2. Amend section 52.213-4 by removing from the clause heading ``(July 2000)'' and adding ``(Mar 2001)'' in its place; and be removing ``(Oct 1998)'' from paragraph (a)(2)(vi) of the clause and adding ``Mar 2001'' in its place.
3. Amend section 52.244-6 by revising the section heading, the introductory text of paragraph (a), and the clause heading; removing ``, as used in this clause,'' from the definitions ``Commercial item'' and ``Subcontract''; and by revising paragraph (c) to read as follows:
(i) 52.219-8, Utilization of Small Business Concerns (OCT 2000) (15 U.S.C. 637(d)(2) and (3)), in all subcontracts that offer further subcontracting opportunities. If the subcontract (except
subcontracts to small business concerns) exceeds $500,000 ($1,000,000 for construction of any public facility), the subcontractor must include 52.219-8 in lower tier subcontracts that offer subcontracting opportunities.
48 CFR Parts 1, 19, 22, 42, 52, and 53
[FAC 97-22; Item VI]
SUMMARY: This document makes amendments to the Federal AcquisitionRegulation in order to update references and make editorial changes.
Therefore, DoD, GSA, and NASA amend 48 CFR parts 1, 19, 22, 42, 52, and 53 as set forth below:
1. The authority citation for 48 CFR parts 1, 19, 22, 42, 52, and 53 continues to read as follows:
2. Amend section 1.106 in the table following the introductory paragraph at entry 52.215-19 by removing the OMB Control Number ``9000-0015'' and adding ``9000-0115'' in its place.
(a) The contracting officer shall assign contract administration functions, as required, based on the location of the 8(a) contractor (see Federal Directory of Contract Administration Services Components (available via the Internet at "http://frwebgate.access.gpo.gov/cgi- bin/leaving.cgi?from http://www.dcma.mil/casbook/casbook.htm">http://www.dcma.mil/casbook/
casbook.htm)).
a. Redesignate paragraphs ``(a)'', ``(b)'', ``(c)'', ``(d)'', and ``(e)'' as ``(b)(1)'', ``(b)(2)'', ``(b)(3)'', ``(b)(4)'', and ``(b)(5)'', respectively;
b. Designate the introductory paragraph as paragraph (a), and amend it by removing ``The Department of Labor regulations include--'';
(c) Refer all questions relating to the application and interpretation of wage determinations (including the classifications therein) and the interpretation of the Department of Labor regulations
in this subsection to the Administrator, Wage and Hour Division.
The Defense Contract Management Agency (DCMA) maintains and distributes the Federal Directory of Contract Administration Services Components. The directory lists the names and telephone numbers of those DCMA and other agency offices that offer contract administration
services within designated geographic areas and at specified contractor plants. Federal agencies may obtain a free copy of the directory on disk by writing to--Defense Contract Management Agency, ATTN: DCMA-FBP, 8725 John J. Kingman Road, Fort Belvoir, VA 22060-6221, or access it on the Internet at"http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi http://www.dcma.mil/casbook/casbook.htm">http://www.dcma.mil/casbook/casbook.htm.
7. Amend section 52.247-51 in the provision heading by removing ``(FEB 1995)'' and adding ``(JAN 2001)'' in its place; in the first sentence of paragraph (c)(1) by removing ``F.o.b. port of loading with inspection and acceptance at origin.''; and in the third column of the table following paragraph (d), add a comma after ``i.e.''.
8. Amend section 53.215-1 by removing from paragraph (a) ``15.509(b)'' and adding ``15.509'' in its place; and by removing from paragraphs (e) and (f) ``15.509(a)'' and adding ``15.509'' in their