Source: https://www.federalregister.gov/documents/2006/09/28/06-8206/federal-acquisition-regulation-far-case-2004-033-inflation-adjustment-of-acquisition-related
Timestamp: 2017-07-21 02:54:12
Document Index: 121298793

Matched Legal Cases: ['arts 1', 'art2', 'art3', 'art4', 'art5', 'art6', 'art7', 'art8', 'art9', 'art10', 'art11', 'art12', 'art13', 'art14', 'art15', 'art16', 'art17', 'art18', 'art19', 'art20', 'art21', 'art22', 'art23', 'art24', 'art25', 'art26', 'art27', 'art28', 'art29', 'art30', 'art31', 'art32', 'art33', 'art34', 'art35', 'art36', 'art37', 'art38', 'art39', 'art40', 'art41', 'art42', 'art43', 'art44', 'art45', 'art46', 'art47', 'art48', 'art49', 'art50', 'art51', 'art52', 'art53', 'art54', 'art55', 'art56', 'art57', 'art58', 'art59', 'art60', 'art61', 'art62', 'art\n36', 'art63', 'art64', 'art65', 'art66', 'art67', 'art68', 'art69', 'art70', 'art71', 'art72', 'art73', 'art74', 'art75', 'art76', 'art77', 'art78', 'art79', 'art80', 'art81', 'art82', 'art83', 'art84', 'art85', 'art86', 'art87', 'art88']

:: Federal Acquisition Regulation; FAR Case 2004-033, Inflation Adjustment of Acquisition-Related Thresholds
71 FR 57363
57363-57374
Docket 2006-0020, Sequence 17
List of Subjects in 48 CFR Parts 1, 2, 4, 5, 6, 7, 8, 9, 12, 13, 15, 16, 17, 19, 22, 25, 28, 32, 36, 42, 48, 49, 50, 52, and 53
https://www.federalregister.gov/d/06-8206
For clarification of content, contact Mr. Michael Jackson, Procurement Analyst, at (202) 208-4949. Please cite FAC 2005-13, FAR case 2004-033. For information pertaining to status or publication schedules, contact the FAR Secretariat at (202) 501-4755.
Statute. This final rule implements 41 U.S.C. 431a as added by Section 807 of the Ronald W. Reagan National Defense Authorization Act for Fiscal Year 2005 (Pub. L. 108-375). 41 U.S.C. 431a provides for adjustment every 5 years of acquisition-related thresholds, except for Davis-Bacon Act, Service Contract Act, and trade agreements thresholds. This rule also escalates some nonstatutory acquisition-related thresholds. The statute does not permit escalation of acquisition-related thresholds established by the Davis Bacon Act, the Service Contract Act, or trade agreements. The statute does not authorize the FAR to escalate thresholds originating in executive order or the implementing agency (such as the Department of Labor or the Small Business Administration), unless the executive order or agency regulations are first amended.
Public Comments. DoD, GSA, and NASA published a proposed rule in the Federal Register at 70 FR 73415, December 12, 2005. We received eight responses to the proposed rule (available at http://www.regulations.gov/​). All the responses were from Government personnel. Almost all the responses related to the proposed increase in the micro-purchase threshold. The Councils did not agree to any changes to the proposed rule based on the public comments. However, as addressed below, some of the thresholds have changed in the final rule.Start Printed Page 57364
Comment: Two respondents concur with the rule without further comment.
Comment: Increase is not enough. One respondent is concerned that the increase in the micro-purchase threshold is totally insufficient.
Response: The statute dictates the amount of the inflation adjustment, specifying the index to be used, and only allows inflation for a five-year period for those statutes that were in effect before October 1, 2000.
Comment: Concern for impact on small business. One respondent expressed concerns over negative impact on small business. The respondent did not favor the pending increase in the micro-purchase threshold from $2,500 to $3,000 because there is not a simultaneous increase in the simplified acquisition threshold (SAT), thereby reducing the number of acquisitions automatically set aside for small business. The respondent proposed that the SAT should be raised at the same time as the increase in the micro-purchase threshold.
Response: The Councils addressed this issue in the Federal Register notice and the Initial Regulatory Flexibility Analysis. The increase in the micro-purchase threshold is required by statute. The statute does not provide flexibility in its application to acquisition-related thresholds. The escalation in accordance with the procedures set forth in the statute is mandatory. Following these procedures resulted in an escalation of $500 at this time for the micro-purchase threshold, and no escalation for the SAT, because of rounding as required by the statute. However, it is expected that the SAT will increase in year 2010, increasing the range for small business set-asides.
Comment: Three respondents are concerned that an increase in the micro-purchase threshold to $3,000 while the SCA threshold remains at $2,500 creates problems. Problems cited include—
This discrepancy will result in increased risk of purchase card holders violating the SCA. Monitoring the different thresholds adds to the overburdened purchase card program which was supposed to be a simple process;
The discrepancy poses a great burden on contracting as well as the credit card program and may have an adverse impact. The respondent understands that the statute prohibited increase in the SCA, but considers it logical to promote an initiative to amend the SCA to coincide with the micro-purchase threshold; and
This discrepancy is inviting violation of the provisions of the SCA, because many, if not most, of these purchases are made by non-contracting personnel who have no knowledge of the provisions of the SCA.
Response: As stated in the above response, the increase in the micro-purchase threshold is required by law, while the increase in the SCA threshold is prohibited by the law. Considering the specific prohibition of any increase in the SCA, the Councils consider it highly unlikely that any initiative to amend the SCA would meet with success.
The Councils have limited use of the purchase card for services valued in excess of $2,500 that are subject to the Service Contract Act, by adding a restriction to the definition of “Micro-purchase threshold” at FAR 2.101, so that it remains at $2,500 for services subject to the Service Contract Act. The Councils also recommend training for cardholders so that they will be able to identify which service contracts are subject to the Act.
Comment: One respondent recommended increase in the Davis-Bacon Act threshold.
Response: The statute specifically excludes the Davis-Bacon Act from any adjustment.
Comment: One respondent recommends that, unless Treasury restrictions take precedence over FAR changes, this $2,500 threshold at FAR 13.305-3(b) also be raised to $3,000, consistent with other changes to the micro-purchase threshold in the proposed rule.
Response: The Treasury restrictions do take precedence. The statute does not authorize the FAR to escalate non-statutory thresholds originating in another agency unless the agency regulations are first amended.
Escalation. The inflation adjustment factors in the proposed rule were calculated on the basis of December 2004 data. For the final rule, data through October 2005 has been used. This resulted in a slight increase in the calculated inflation adjustment factors. For the five-year period October 2000 through October 2005, the inflation adjustment factor increased from 13 to 14.5 percent. However, due to rounding, most thresholds in the proposed rule did not actually change.
The following frequently used thresholds are the same in the final rule as in the proposed rule:
Micro-purchase threshold at FAR 2.101: “$3,000”.
FPDS reporting threshold at FAR 4.602(c): “$3,000”.
Commercial Items test program ceiling at FAR 13.500: “$5,500,000”.
Prime contractor subcontracting plan floor at FAR 19.702: “$550,000” (but for construction ($1,000,000) is unchanged).
The following thresholds further increased from the proposed to the final rule:
Major system (DoD) at FAR 2.101: “$173,500,000 and $814,500,000”.
J&A approval levels at FAR 6.304, 8.405-6, 13.501: “$57,000,000 and $78,500,000”.
Bundling at FAR 7.107: “$86,000,000 and $8,600,000”.
Treatment as a commercial item at FAR 12.102, 12.203, 13.000, 13.303-5, 13.500, 15.403-1(c)(3)(i): “$11,000,000, $16,000,000, and $27,000,000”.
TINA cost and pricing data at FAR 15.403, 15.403-4, 42.7: “$650,000”.
Multiyear cancellation ceiling notice to Congress, DoD at FAR 17.108(b): “$114,500,000”.
The threshold of $5 million at FAR 19.1406(a)(2)(i) is the only threshold in the matrix of FAR thresholds that was not included in the text of the proposed rule, but is now included in the final rule, because the calculated threshold now rounds up to $5.5 million.
A matrix of the thresholds considered in the drafting of the final rule is available via the Internet at http://acquisition.gov/​far/​facsframe.html.
The Councils note that the statute provides the right to petition. If a dollar threshold adjustable under the statute is not included in this notice of adjustment, any person may request adjustment of that dollar threshold by submitting a petition for adjustment to the Administrator for Federal Procurement Policy. Please note, however, that due to rounding requirements, many thresholds that were considered for adjustment were not actually changed at this time because the inflation was insufficient to overcome the rounding requirements (e.g., thresholds of $1,000, $10,000, $100,000, and $1,000,000). These thresholds will probably be adjusted in year 2010, if inflation continues at a rate comparable to the current rate of inflation.
This is not a significant regulatory action and, therefore, was not subject to Start Printed Page 57365review 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.
Most of the threshold changes proposed in this rule will not have any significant economic impact on small business because they are intended to maintain the status quo by adjusting for changes in the value of the dollar. For example, the prime contractor subcontracting plan floor at FAR 19.702 for other than construction contacts will be raised from $500,000 to $550,000. This is just keeping pace with inflation.
Often any impact will be beneficial by preventing burdensome requirements from applying to more and more small dollar value acquisitions, which are the acquisitions in which small businesses are most likely to participate.
One respondent was specifically concerned about the impact on the small business community of the increase in the micro-purchase threshold without a corresponding increase in the simplified acquisition threshold, thereby temporarily narrowing the range of automatic set-asides for small business.
To assess the impact of the increase in the micro-purchase threshold from $2,500 to $3,000, data was requested from FPDS-NG. For Fiscal Year 2004, actions between $2,500 and $3,000, there is a total of 25,212 contract actions with a value of $13,732,445. Of this total, 16,031 (value of $8,083,900) of these actions went to small businesses. We expect that many of these awards will still go to small businesses, even if there is no longer a requirement to automatically set the procurement aside for small business.
The simplified acquisition threshold is expected to increase by a much greater amount five years from now when the thresholds are next adjusted, thereby increasing the range of automatic set-asides for small business.
The Councils did not make any changes in the final rule as a result of these comments, because the increases are dictated by statute.
Interested parties may obtain a copy from the FAR Secretariat. The FAR Secretariat has submitted a copy of the FRFA to the Chief Counsel for Advocacy of the Small Business Administration.
Start Amendment Part2. Add section 1.109 to read as follows:End Amendment Part
(c) The statute does not permit escalation of acquisition-related dollar thresholds established by the Davis-Bacon Act (40 U.S.C. 3141 through 3144, 3146, and 3147), the Service Contract Act of 1965 (41 U.S.C. 351, et seq.), or the United States Trade Representative pursuant to the authority of the Trade Agreements Act of 1979 (19 U.S.C. 2511 et seq).
(d) A matrix showing calculation of the most recent escalation adjustments of statutory acquisition-related dollar thresholds is available via the Internet at http://acquisition.gov/​far/​facsframe.html.
Start Amendment Part3. Amend section 2.101 in paragraph (b) by—End Amendment Part
Start Amendment Parta. Revising paragraph (1) of the definition “Major system”, and removing from paragraph (2) “$750,000 (based on fiscal year 1980 constant dollars)” and adding “$1.8 million” in its place; andEnd Amendment Part
Start Amendment Partb. Amending the definition “Micro-purchase threshold”, by removing from the introductory paragraph “2,500” and adding “3,000” in its place; revising paragraph (1); redesignating paragraph (2) as paragraph (3); and adding a new paragraph (2).End Amendment Part
Start Amendment Part4. Amend section 4.601 by removing from paragraph (a) and the introductory text of paragraph (d) “$25,000” and adding “$3,000” in their place; and by removing from paragraph (e) “$5,000,000” and adding “$5.5 million” in its place.End Amendment Part
Start Amendment Part5. Amend section 4.602 by removing from paragraphs (c)(1) and (c)(3) “$2,500” and adding “$3,000” in their place; and by removing paragraph (c)(4).End Amendment Part
Start Amendment Part6. Amend section 5.303 by revising paragraph (a) to read as follows:End Amendment Part
Start Printed Page 57366
(a) Public announcement. Contracting officers shall make information available on awards over $3.5 million (unless another dollar amount is specified in agency acquisition regulations) in sufficient time for the agency concerned to announce it by 5 p.m. Washington, DC, time on the day of award. Agencies shall not release information on awards before the public release time of 5 p.m. Washington, DC time. Contracts excluded from this reporting requirement include—
Start Amendment Part7. Amend section 6.304 by—End Amendment Part
Start Amendment Parta. Removing from paragraph (a)(1) “$500,000” and adding “$550,000” in its place;End Amendment Part
Start Amendment Partb. Removing from paragraph (a)(2) “$500,000” and “$10,000,000” and adding “$550,000” and “$11.5 million”, respectively, in their place;End Amendment Part
Start Amendment Partc. Removing from paragraph (a)(3) $10,000,000”, “$50,000,000”, and “$75,000,000” and adding “$11.5 million”, “$57 million”, and “$78.5 million”, respectively, in their place; andEnd Amendment Part
Start Amendment Partd. Removing from paragraph (a)(4) “$50,000,000” and “75,000,000” and adding “$57 million” and “$78.5 million”, respectively, in their place.End Amendment Part
Start Amendment Part8. Amend section 7.104 by removing from paragraph (d)(2)(i)(A) “$7 million” and adding “$7.5 million” in its place; and removing from paragraph (d)(2)(i)(B) “$5 million” and adding “$5.5 million” in its place.End Amendment Part
Start Amendment Part9. Amend section 7.107 by removing from paragraph (b)(1) “$75 million” and adding “$86 million” in its place; and removing from paragraph (b)(2) “$7.5 million” and “75 million” and adding “$8.6 million” and “$86 million”, respectively, in their place.End Amendment Part
Start Amendment Part10. Amend section 8.405-6 by—End Amendment Part
Start Amendment Parta. Removing from paragraph (h)(1) “$500,000” and adding “$550,000” in its place;End Amendment Part
Start Amendment Partb. Removing from paragraph (h)(2) “$500,000, but not exceeding $10 million” and adding “$550,000, but not exceeding $11.5 million” in its place;End Amendment Part
Start Amendment Partc. Removing from the introductory text of paragraph (h)(3) “$10 million”, “$50 million”, and “$75 million”, and adding “$11.5 million”, “$57 million”, and “$78.5 million”, respectively, in their place; andEnd Amendment Part
Start Amendment Partd. Removing from the first sentence of paragraph (h)(4) “$50 million” and “$75 million” and adding “$57 million” and “$78.5 million”, respectively, in their place.End Amendment Part
Start Amendment Part11. Amend section 9.405-2 in the second sentence of the introductory text of paragraph (b) by removing “$25,000” and adding “$30,000” in its place.End Amendment Part
Start Amendment Part12. Amend section 9.409 in paragraph (b) by removing “$25,000” and adding “$30,000” in its place.End Amendment Part
Start Amendment Part13. Amend section 12.102 by removing from the introductory text of paragraph (f)(2) “$15,000,000” and adding “$16 million” in its place; and removing from paragraph (g)(1)(ii) “$25 million” and adding “$27 million” in its place.End Amendment Part
Start Amendment Part14. Amend section 12.203 by removing from the last sentence “$5 million” and “$10 million” and adding “$5.5 million” and “$11 million”, respectively, in their place.End Amendment Part
Start Amendment Part15. Amend section 13.000 by removing from the second sentence “$5 million” and “$10 million” and adding “$5.5 million” and “$11 million”, respectively, in their place.End Amendment Part
Start Amendment Part16. Amend section 13.003 by—End Amendment Part
Start Amendment Parta. Removing from the first sentence of paragraph (b)(1) “$2,500” and adding “$3,000” in its place; and in the second sentence, by adding “19.000(b) and” after the word “See”; andEnd Amendment Part
Start Amendment Partb. Removing from paragraphs (c)(1)(ii) and (g)(2) “$5 million” and “$10 million” and adding “$5.5 million” and “$11 million”, respectively, in their place.End Amendment Part
Start Amendment Part17. Amend section 13.005 in paragraph (a)(2) by removing “$25,000” and adding “$30,000 (End Amendment Part
Start Amendment Part18. Amend section 13.106-1 by removing from paragraph (c)(2) and the first sentence of paragraph (d) “$25,000” and adding “$30,000” in their place.End Amendment Part
Start Amendment Part19. Amend section 13.303-5 by removing from paragraph (b)(1) “$5,000,000” and “$10,000,000” and adding “$5.5 million” and “$11 million”, respectively, in their place; and removing from paragraph (b)(2) “$5 million” and “$10 million” and adding “$5.5 million” and “$11 million”, respectively, in their place.End Amendment Part
Start Amendment Part20. Amend section 13.402 by removing from paragraph (a) “$25,000” and adding “30,000” in its place.End Amendment Part
Start Amendment Part21. Amend section 13.500 by removing from the first sentence of paragraph (a) “$5 million ($10 million” and adding “$5.5 million ($11 million”, respectively, in its place; and removing from the introductory text of paragraph (e) “$10 million” and adding “$11 million”, respectively, in its place.End Amendment Part
Start Amendment Part22. Amend section 13.501 by removing from paragraph (a)(2)(i) “$500,000” and adding “$550,000” in its place; removing from paragraph (a)(2)(ii) “$500,000” and “$10,000,000” and adding “$550,000” and “$11.5 million”; respectively, in their place; removing from paragraph (a)(2)(iii) “10,000,000”, “50,000,000”, and “75,000,000” and adding “11.5 million”, “57 million”, and “78.5 million”, respectively, in their place; and removing from paragraph (a)(2)(iv) “50,000,000” and “75,000,000” and adding “57 million”, and “78.5 million”, in its place.End Amendment Part
Start Amendment Part23. Amend section 15.304 by removing paragraph (c)(3)(i);End Amendment Part
Start Amendment Part24. Amend section 15.403-1 by removing from paragraph (c)(3)(iii) “$15,000,000” and adding “$16 million” in its place.End Amendment Part
Start Amendment Part25. Amend section 15.403-4 by removing from the third sentence of the introductory text of paragraph (a)(1) “$550,000” and adding “$650,000” in its place; and revising the second sentence of paragraph (a)(1)(iii) to read as follows:End Amendment Part
(iii) * * * Price adjustment amounts must consider both increases and decreases (e.g., a $200,000 modification resulting from a reduction of $500,000 and an increase of $300,000 is a pricing adjustment exceeding $650,000. * * *
Start Amendment Part26. Amend section 15.404-3 by removing from paragraph (c)(1)(i) “$10,000,000” and adding “$11.5 million” in its place.End Amendment Part
Start Amendment Part27. Amend section 15.407-2 by removing from paragraphs (c)(1) and the introductory text of paragraph (c)(2) “$10 million” and adding “$11.5 million”, respectively, in their place.End Amendment Part
Start Amendment Part28. Amend section 15.408 in Table 15-2 following paragraph (m), in section II, Cost Elements, in the third sentence of paragraph (A)(2), by removing “$10,000,000” and adding “$11.5 million” in its place.End Amendment Part
Start Amendment Part29. Amend section 16.503 by removing from paragraph (d)(1) “$10,000,000” and adding “$11.5 million” in its place.End Amendment Part
Start Amendment Part30. Amend section 16.504 by removing from the introductory text of paragraph (c)(2)(i) “$10 million” and adding “$11.5 million” in its place.End Amendment Part
Start Amendment Part31. Amend section 16.505 by removing from paragraph (b)(1)(i) and the introductory text of paragraph (b)(2) “$2,500” and adding “$3,000” in its place.End Amendment Part
Start Amendment Part32. Amend section 16.506 by removing from paragraphs (f) and (g) “$10 million” and adding “$11.5 million” in its place.End Amendment Part
Start Amendment Part33. Amend section 16.601 by removing from paragraph (b)(3)(i) “$25,000” and adding “$30,000” in its place.End Amendment Part
Start Amendment Part34. Amend section 17.108 in paragraph (a) by removing “$10 million” and adding “$11.5 million” in its place; and in paragraph (b) by removing “$100 million” and adding “$114.5 million” in its place.End Amendment Part
Start Amendment Part35. Amend section 19.502-1 by removing from paragraph (b) “$2,500” and adding “$3,000” in its place.End Amendment Part
Start Amendment Part36. Amend section 19.502-2 by removing from the first sentence of paragraph (a) “$2,500” and adding “$3,000” in its place; and removing from paragraph (d) “$25,000” and adding “$30,000” in its place.End Amendment Part
Start Amendment Part37. Amend section 19.702 by removing from paragraphs (a)(1) and (a)(2) “$500,000” and adding “$550,000” in their place.End Amendment Part
Start Amendment Part38. Amend section 19.704 by removing from paragraph (a)(9) “$500,000” and adding “$550,000” in its place.End Amendment Part
Start Amendment Part39. Amend section 19.708 by removing from the first sentence of paragraph (b)(1) “$500,000” and adding “$550,000” in its place.End Amendment Part
Start Amendment Part40. Amend section 19.805-1 by removing from paragraph (a)(2) “$5,000,000” and “$3,000,000” and adding “$5.5 million” and “$3.5 million”, respectively, in their place.End Amendment Part
Start Amendment Part41. Amend section 19.1002 by removing from paragraph (1) of the definition “Emerging small business reserve amount”, “$25,000” and adding “$30,000” in its place.End Amendment Part
Start Amendment Part42. Amend section 19.1007 by removing from paragraphs (c)(1)(i) and (c)(1)(ii) “$25,000” and adding “$30,000” in its place.End Amendment Part
Start Amendment Part43. Amend section 19.1008 by removing from paragraph (c) “$25,000” and adding “$30,000” in its place.End Amendment Part
Start Amendment Part44. Amend section 19.1202-2 by removing from paragraph (a) “$500,000” and adding “$550,000” in its place.End Amendment Part
Start Amendment Part45. Amend section 19.1306 by removing from paragraph (a)(2)(i) “$5,000,000” and adding “$5.5 million” in its place; and removing from paragraph (a)(2)(ii) “$3,000,000” and adding “$3.5 million” in its place.End Amendment Part
Start Amendment Part46. Amend section 19.1406 by removing from paragraph (a)(2)(i) “$5 million” and adding “$5.5 million” in its place.End Amendment Part
Start Amendment Part47. Amend section 22.103-4 in paragraph (b) by removing the last sentence.End Amendment Part
Start Amendment Part48. Amend section 22.103-5 in the introductory text of paragraph (b) by removing “be over $100,000;” and adding “exceed the simplified acquisition threshold;” in its place.End Amendment Part
Start Amendment Part49. Amend section 22.305 by removing from paragraph (a) “the simplified acquisition threshold;” and adding “$100,000;” in its place.End Amendment Part
Start Printed Page 57368
Start Amendment Part50. Amend section 22.1103 by removing from the second sentence “$500,000” and adding “$550,000” in its place.End Amendment Part
Start Amendment Part51. Amend section 22.1303 by removing from paragraphs (a) and (c) “$25,000” and adding “$100,000” in its place.End Amendment Part
Start Amendment Part52. Amend section 22.1310 by removing from the introductory text of paragraph (a)(1) “$25,000” and adding “$100,000” in its place.End Amendment Part
Start Amendment Part53. Amend section 25.1101 in the introductory text of paragraph (a)(1) by removing “$2,500 ($15,000 for acquisitions as described in 13.201(g)(1))” and adding “the micro-purchase threshold” in its place; and by revising paragraphs (e)(1) and (e)(2) to read as follows:End Amendment Part
Start Amendment Part54. Amend section 25.1103 in paragraph (a) by removing “with a value exceeding $2,500, $15,000 for acquisitions as described in 13.201(g)(1)”.End Amendment Part
Start Amendment Part55. Amend section 28.102-1 by removing from the introductory text of paragraph (b)(1) “$25,000” and adding “$30,000” in its place.End Amendment Part
Start Amendment Part56. Amend section 28.102-2 by removing from the heading of paragraph (c) “End Amendment Part
Start Amendment Part57. Amend section 28.102-3 in the first sentence of paragraph (b) by removing “$25,000” and adding “$30,000” in its place.End Amendment Part
Start Amendment Part58. Amend section 32.104 by removing from paragraphs (d)(2)(i) and (d)(2)(ii) “$2 million” and adding “$2.5 million” in their place.End Amendment Part
Start Amendment Part59. Amend section 36.201 by removing from paragraph (a)(1)(i) “$500,000” and adding “$550,000” in its place.End Amendment Part
Start Amendment Part60. Amend section 36.203 by revising paragraph (a) to read as follows:End Amendment Part
Start Amendment Part61. Amend section 36.213-2 by revising paragraph (a) to read as follows:End Amendment Part
Start Amendment Part62. Amend section 36.604 by removing from the introductory text of paragraph (a) “$25,000” each time it appears (twice) and adding “$30,000” in its place.End Amendment Part
36.605 [Amended]
Start Amendment Part63. Amend section 36.605 by removing from the first sentence of paragraph (a) “$100,000” and adding “the simplified acquisition threshold” in its place.End Amendment Part
Start Amendment Part64. Amend section 42.705-3 by removing from the fourth sentence of the introductory text of paragraph (b)(4)(ii) “(End Amendment Part
Start Amendment Part65. Amend section 42.709 by removing from paragraph (b) “$550,000” and adding “$650,000” in its place.End Amendment Part
Start Amendment Part66. Amend section 42.709-6 by removing from the first sentence “$550,000” and adding “$650,000” in its place.End Amendment Part
Start Amendment Part67. Amend section 42.1502 by revising the first sentence of paragraph (a) to read as follows:End Amendment Part
Start Amendment Part68. Amend section 48.201 by removing from the first sentence of the introductory text of paragraph (a) “be $100,000 or more,” and adding “exceed the simplified acquisition threshold,” in its place.End Amendment Part
Start Amendment Part69. Amend section 48.202 by removing from the first sentence “be $100,000 or more,” and adding “exceed the simplified acquisition threshold,” in its place.End Amendment Part
Start Amendment Part70. Amend section 49.502 by revising the heading of paragraph (a) and the introductory text of paragraph (a)(1); revising the heading of paragraph (b), removing from the introductory text of paragraph (b)(1)(i) and paragraphEnd Amendment Part
Start Amendment PartThe revised text reads as follows:End Amendment Part
(a) Fixed-price contracts that do not exceed the simplified acquisition threshold (short form)—(1) General use. The contracting officer shall insert the clause at 52.249-1, Termination for Convenience of the Government (Fixed-Price) (Short Form), in solicitations and contracts when a fixed-price contract is contemplated and the contract amount is not expected to exceed the simplified acquisition threshold, except—
(b) Fixed-price contracts that exceed the simplified acquisition threshold—(1)(i) General use. * * *
Start Amendment Part71. Amend section 50.201 by removing from paragraph (b) “$50,000” and adding “$55,000” in its place.End Amendment Part
Start Amendment Part72. Amend section 50.203 by removing from paragraph (b)(4) “$25 million” and adding “$28.5 million” in its place; and removing from paragraphs (e)(1)(i) and (e)(1)(ii) “$50,000” and adding “$55,000” in its place.End Amendment Part
Start Amendment Part73. Amend section 52.203-6 by revising the date of the clause to read “(SEP 2006)”; and removing from paragraph (c) “$100,000” and adding “the simplified acquisition threshold” in its place.End Amendment Part
Start Amendment Part74. Amend section 52.209-6 by revising the date of the clause to read “(SEP 2006)”; and removing from paragraphs (a) and (b) “$25,000” and adding “$30,000” in its place.End Amendment Part
Start Amendment Part75. Amend section 52.212-1 by revising the date of the clause to read “(SEP 2006)”; and removing from the first sentence of paragraph (j) “$25,000” each time it appears (twice) and adding “$3,000” in its place.End Amendment Part
Start Amendment Part76. Amend section 52.212-5 by—End Amendment Part
Start Amendment Parta. Revising the date of the clause to read “(SEP 2006)”;End Amendment Part
Start Amendment Partb. Removing from paragraph (b)(1) “(OCT 1995)” and adding “(SEP 2006)” in its place;End Amendment Part
Start Amendment Partc. Removing from paragraph (b)(8)(i) of the clause “(JULY 2005)” and adding “(SEP 2006)” in its place;End Amendment Part
Start Amendment Partd. Removing from paragraphs (b)(18) and (b)(20) of the clause “(DEC 2001)” and adding “(SEP 2006)” in its place; andEnd Amendment Part
Start Amendment Parte. Removing from paragraph (e)(1)(i) “$500,000” and adding “$550,000” in its place; and removing from paragraph (e)(1)(iii) “(DEC 2001)” and adding “(SEP 2006)” in its place.End Amendment Part
Start Amendment Part77. Amend section 52.213-4 by—End Amendment Part
Start Amendment Partb. Removing from paragraph (a)(2)(vi) “(FEB 2006)” and adding “(SEP 2006)” in its place; andEnd Amendment Part
Start Amendment Partc. Removing from paragraphs (b)(1)(iii) and (b)(1)(v) “(DEC 2001)” and “$25,000” and adding “(SEP 2006)” and “$100,000”, respectively, in their place; and removing from paragraph (b)(2)(i) “(JAN 2005)” and “$25,000” and adding “(SEP 2006)” and “$30,000”, respectively, in their place.End Amendment Part
Start Amendment Part78. Amend section 52.219-9 by revising the date of the clause to read “(SEP 2006)”; and removing from paragraph (d)(9) “$500,000” and adding “$550,000” in its place.End Amendment Part
Start Amendment Part79. Amend section 52.222-35 by revising the date of the clause to read “(SEP 2006)”; and removing from the first sentence of paragraph (g) “$25,000” and adding “$100,000” in its place.End Amendment Part
Start Amendment Part80. Amend section 52.222-37 by revising the date of the clause to read “(SEP 2006)”; and removing from paragraph (f) “$25,000” and adding “$100,000” in its place.End Amendment Part
Start Amendment Part81. Amend section 52.236-1 by revising the introductory paragraph to read as follows:End Amendment Part
Start Amendment Part82. Amend section 52.243-7 by revising the introductory paragraph to read as follows:End Amendment Part
Start Amendment Part83. Amend section 52.244-6 by revising the date of the clause to read “(SEP 2006)”; removing from paragraph (c)(1)(i) “$500,000” and adding “$550,000” in its place, and removing from paragraph (c)(1)(iii) of the clause “(DEC 2001)” and adding “(SEP 2006)” in its place.End Amendment Part
Start Amendment Part84. Amend section 52.248-3 by revising the date of the clause to read “(SEP 2006)”; and removing from the first sentence of paragraph (h) “$50,000” and adding “$55,000” in its place.End Amendment Part
Start Amendment Part85. Amend section 52.249-1 by revising the introductory paragraph to read as follows:End Amendment Part
Start Amendment Part86. Amend section 53.219 by removing from paragraphs (a) and (b) “(End Amendment Part
Start Amendment Part87. Amend section 53.301-294 by revising the form to read as follows:End Amendment Part
Start Printed Page 57372
Start Amendment Part88. Amend section 53.301-295 by revising the form to read as follows:End Amendment Part
Start Printed Page 57374