Source: http://farsite.hill.af.mil/reghtml/changes/fac/fac2005-43.htm
Timestamp: 2017-10-24 00:03:42
Document Index: 649729150

Matched Legal Cases: ['art 45', 'arts 2', 'art 45', 'arts 2', 'art 45', 'art 45', 'art 45', 'art 45', 'arts 2', 'arts 2', 'art 4', 'art 19', 'art 19']

FAC2005-43
[DOCID:fr02jy10-17]
[Docket FAR 2010-0076, Sequence 5]
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) 2005-43. A companion document, the Small Entity Compliance Guide (SECG), follows this FAC. The FAC, including the SECG, is available via the Internet at http://www.regulations.gov.
FOR FURTHER INFORMATION CONTACT: The analyst whose name appears in the table below in relation to each FAR case. Please cite FAC 2005-43 and the specific FAR case numbers. For information pertaining to status or publication schedules, contact the Regulatory Secretariat at (202) 501-4755.
I.......... Government Property.... 2008-011 Parnell
II......... Registry of Disaster 2008-035 Gary
III........ Recovery Act 2010-008 Morgan
Procedures (Interim).
IV......... Clarification of 2008-023 Cundiff
Criteria for Sole
Source Awards to
V.......... Trade Agreements 2009-040 Davis
Thresholds (Interim).
Item I--Government Property (FAR Case 2008-011)
Item II--Registry of Disaster Response Contractors (FAR Case 2008-035)
This final rule adopts, without change, the interim rule implementing Public Law 109-295, the Department of Homeland Security Appropriations Act, 2007, section 697, which requires the establishment and maintenance of a registry of disaster response contractors. The Disaster Response Registry is located at http://www.ccr.gov. The Federal Emergency Management Agency (within the Department of Homeland Security) has a link to the registry for vendors on its Web site at http://www.fema.gov/business/contractor.shtm. The Registry covers domestic disaster and emergency relief activities.
Item III--Recovery Act Subcontract Reporting Procedures (FAR Case 2010-008) (Interim)
This interim rule amends the FAR to revise the clause at FAR 52.204-11, American Recovery and Reinvestment Act--Reporting Requirements. The revised clause will require first-tier subcontractors with Recovery Act funded awards of $25,000 or more, to report jobs information to the prime contractor for reporting into FederalReporting.gov. It also will require the prime contractor to submit its first report on or before the 10th day after the end of the calendar quarter in which the prime contractor received the award, and quarterly thereafter.
Item IV--Clarification of Criteria for Sole Source Awards to Service-Disabled Veteran-Owned Small Business Concerns (FAR Case 2008-023)
Item V--Trade Agreements Thresholds (FAR Case 2009-040) (Interim)
This interim rule adjusts the thresholds for application of the World Trade Organization Government Procurement Agreement and the free trade agreements as determined by the United States Trade Representative, according to a pre-determined formula under the agreements.
Acting Senior Procurement Executive, Office of Acquisition Policy, U.S.
[DOCID:fr02jy10-23]
[Docket FAR 2010-0077, Sequence 5]
SUMMARY: This document is issued under the joint authority of the Secretary of Defense, the Administrator of General Services and the Administrator of the National Aeronautics and Space Administration. This Small Entity Compliance Guide has been prepared in accordance with Section 212 of the Small Business Regulatory Enforcement Fairness Act of 1996. It consists of a summary of rules appearing in Federal Acquisition Circular (FAC) 2005-43 which amend the FAR. An asterisk (*) next to a rule indicates that a regulatory flexibility analysis has been prepared. Interested parties may obtain further information regarding these rules by referring to FAC 2005-31, which precedes this document. These documents are also available via the Internet at http://www.regulations.gov.
FOR FURTHER INFORMATION CONTACT: The analyst whose name appears in the table below. Please cite FAC 2005-43 and the specific FAR case number. For information pertaining to status or publication schedules, contact the FAR Secretariat at (202) 501-4755.
I................................... Government Property......... 2008-011 Parnell
II.................................. Registry of Disaster 2008-035 Gary
III................................. Recovery Act Subcontract 2010-008 Morgan
(Interim) *.
IV.................................. Clarification of Criteria 2008-023 Cundiff
for Sole Source Awards to
V................................... Trade Agreements Thresholds 2009-040 Davis
This final rule amends the FAR to revise FAR part 45 and its associated clauses. Changes are being made to FAR parts 2, 4, 15, 32, 42, 45, and 52. These changes are to clarify and correct the previous FAR rule for part 45, Government Property, published under Federal Acquisition Circular 2005-17, FAR case 2004-025, May 15, 2007, (72 FR 27364). Minor changes are made to the proposed rule published August 6, 2009 (74 FR 39262). The rule specifically impacts contracting officers, property administrators, and contractors responsible for the management of Government property. The rule does not have a significant economic impact on small entities because the rule does not impose any additional requirements on small businesses. The rule does not affect the method of managing Government property. The rule merely clarifies and corrects the previous FAR rule.
Item II--Registry of Disaster Response Contractors (FAR Case 2008-035) This final rule adopts, without change, the interim rule implementing Public Law 109-295, the Department of Homeland Security Appropriations Act, 2007, section 697, which requires the establishment and maintenance of a registry of disaster response contractors. The Disaster Response Registry is located at http://www.ccr.gov. The Federal Emergency Management Agency (within the Department of Homeland Security) has a link to the registry for vendors on its Web site at http://www.fema.gov/business/contractor.shtm. The Registry covers domestic disaster and emergency relief activities.
Item III--Recovery Act Subcontract Reporting Procedures (FAR Case 2010-008) (Interim) *
[DOCID:fr02jy10-18]
48 CFR Parts 2, 4, 15, 31, 32, 42, 45, and 52
[FAC 2005-43; FAR Case 2008-011; Item I; Docket 2009-0029; Sequence 1]
RIN 9000-AL41
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 revise FAR part 45, Government Property, and its associated clauses.
FOR FURTHER INFORMATION CONTACT: Ms.nbsp; Jeritta Parnell, Procurement Analyst, at (202) 501-4082, for clarification of content. For information pertaining to status or publication schedules, contact the Regulatory Secretariat at (202) 501-4755. Please cite FAC 2005-43, FAR Case 2008-011.
There is no revision to the proposed rule based on this comment category. Two respondents submitted three comments on contractor records. Two comments requested clarification on retention periods in FAR 4.705-3(h). In addition, one commenter requested clarification of the term ``property records'' in FAR 4.705-3(h). Another respondent recommended removal of language ``consisting of equipment usage and status reports'' from FAR 4.705-3(c). The Councils disagree. The beginning of the retention period is defined in FAR 4.704(a). The definition of property records is in the proposed rule at FAR 45.101. The recommendation for removal of language from FAR 4.705-3(c) is outside the scope of this particular case and will be considered in the formulation of a new case.
Two respondents recommended revising the action required for corrective action. One respondent recommended additional language to distinguish between the lines of authority and responsibility as follows: `` * * * the contractor shall immediately take all necessary corrective actions and shall prepare a corrective action plan at the request of the Property Administrator.'' The Councils partially agree. The language at FAR 52.245-1(g)(3) is revised to add ``* * * the contractor shall prepare a corrective action plan when requested by the Property Administrator and take all necessary corrective actions as specified by the schedule within the corrective action plan.'' The second respondent suggested that there needs to be a better audit protocol and due process in property management practices. The Councils noted the issues raised by this respondent and the respondent's recommended revisions to FAR 52.245-1(g)(3). These revisions are outside the scope of this case and will be considered in the formulation of a new FAR case.
There are revisions to the proposed rule based on this comment category. Twenty-two comments were received from five respondents regarding definitions. One respondent recommended changing the definition of ``cannibalize'' to read as ``Cannibalization means the unauthorized permanent removal of parts from Equipment, Special Tooling or Special Test Equipment in order to install them on other Government equipment.'' The Councils disagree. The current definition is meant to convey only the act of cannibalization itself, notwithstanding whether or not the act is authorized, or whether the removal of parts is temporary or permanent.
One respondent recommended that FAR part 45.101 include a Web site for 41 CFR 102-71.20, thus providing easier access to the term ``Real Property.'' The Councils disagree. The Code of Federal Regulations is already easily accessible through most on-line search engines. Moreover, in general, the Councils wish to avoid adding unnecessary hyperlinks to the FAR due to their potentially transient nature.
One respondent recommended that the last sentence of the definition of ``Equipment'' be expanded to include special test equipment and special tooling in the exclusions. The Councils agree.
One respondent recommended revision of the definition to read: ``Cannibalize means to remove worthwhile parts from property for probable use or installation on other property.'' The Councils disagree. The Councils revised the definition to limit cannibalization of parts to Government property. The use of cannibalization is governed by its application (i.e., by the terms and conditions of the contract).
One respondent recommended revision of the definition of Government Furnished Property in both FAR 45.101 and 52.245-1. The Councils partially agree. The Councils revised the language to include ``Government-furnished property also includes contractor-acquired property if the contractor-acquired property is a deliverable under a cost contract when accepted by the Government for continued use under the contract''.
One respondent recommended a new definition of ``Property Loss.'' The Councils noted the issue raised by the commenter. The recommendation is outside the scope for the proposed rule. The Councils will consider adding this new definition as part of a future proposed rule.
One respondent recommended adding a definition of ``Prime Property Administrator.'' The Councils noted the issue raised by the commenter. The recommendation is outside the scope for the proposed rule. The Councils will consider adding this proposal as part of a future proposed rule.
One respondent agreed with the proposed rule in regard to the definitions of ``Equipment,'' ``Material,'' ``Plant equipment,'' ``Government property,'' ``Real property,'' ``Plant equipment,'' and ``Property records.'' The same respondent also agreed with the proposed changes to the definition of ``Plant clearance officer'' in FAR 2.101.
There is no revision to the proposed rule based on this category of comment. One respondent recommended revising FAR 45.202(a) to read: ``(a) The contracting officer shall consider any potentially unfair competitive advantage that may result from the prospective contractor possessing Government property. This shall be done by adjusting the offers by applying, for evaluation purposes only, a rental equivalent evaluation factor.'' The Councils noted the issue raised by the commenter. The recommendation is outside the scope for the proposed rule. The Councils will consider adding this proposal as part of a future proposed rule.
There is no revision to the proposed rule based on this category of comment. One respondent recommended replacement of the term ``acquisition cost'' in FAR 45.602-3(b) and in 52.245-1(d)(2)(i)(B) with the term ``fair market value''. The Councils note the issue raised by the commenter. The recommendation is outside of the scope of this case. The proposed revision will be considered in the formulation of a new case.
There is no revision to the proposed rule based on this comment category. One respondent recommended revising 42.302(a)(30)(iii) to add the following language ``and guidance at FAR 45.103(a)(4) with the maximum use of Government property already in the contractor's possession.'' The Councils disagree. The intent of this paragraph is to address the use of the clause at FAR 52.245-9, Use and Charges. The use of Government property already in the possession of the contractor to its maximum extent is adequately addressed at FAR 45.103(a)(4) and is not appropriately referenced in this paragraph.
Three respondents with five comments recommend changing the proposed rule to use the term ``unique item identifier (UII)'' in place of ``item unique.'' One comment recommended a general overall change to UII, two comments recommended revising 52.245-1(f)(1)(iii)(A)(4) to use the term ``unique item identifier (UII)'' in place of ``item unique,'' one comment suggested that the term ``item unique identifier'' is a DoD term and that ``asset identifier'' is a more widely recognized term, and one comment suggested changing ``Item unique'' identifier to ``Unique item'' identifier as prescribed in Defense Acquisition Regulation Supplement (DFARS) 252.211-7007. The Councils agree with the proposal to retain the current FAR language of ``unique item'' identifier. The Councils did not agree with the term ``asset identifier.'' The Councils believe that unique item identifier is used across industry and is reflected in industry practices and standards.
There is no revision to the proposed rule based on this comment category. One respondent, with two comments, recommended revising the language associated with relief of stewardship responsibility to add the term liability (see FAR 52.245-1(f)). One comment recommended adding new language to read: ``(vii) Relief of Liability. The Contractor shall have a process to enable the prompt disclosure and reporting of all instances of loss, theft, damage, and destruction of Government property, including Government property in the possession of contractors.'' The second comment recommended moving 52.245-1(f)(vi)(A) and (B) to the new paragraph (vii). The Councils noted the issues raised by the commenter. The recommendations are outside of the scope of this case. These recommendations will be considered in the formulation of a new case.
There is no revision to the proposed rule based on this comment category. One respondent recommended revising FAR 45.501 and the amended FAR 45.502 to read as follows: ``45.501 Prime contractor alternate locations. (a) The property administrator assigned to the prime contract may request support property administration from another contract administration office, for purposes of evaluating prime contractor management of property located at the prime contractor's alternate locations. (b) Prime contractor consent is not required for support delegations involving prime contractor alternate locations. FAR section 45.502 Subcontractor locations. (c) The prime property administrator shall accept the findings of the delegated support property administrator and advise the prime contractor of the results of property management reviews, including deficiencies found with the subcontractor's property management system.'' The Councils did not agree. The Government is not required to seek prime contractor consent to conduct property reviews at alternate locations of the prime contractor.
(b) One respondent provided eighteen comments recommending that ``loss, theft, destruction, or damage'' be replaced with ``lost'' only.
(c) One respondent recommended that ``loss, theft, destruction, or damage'' be replaced with ``lost'' only and that ``all'' be removed at 52.245-1(f)(1)(x) from ``inventorying all property.''
The Councils recommend no change to the proposed rule. The Councils noted the recommendations for a new definition of ``loss.'' As a result, the Councils recommend including the definition of ``loss'' in a separate case. The Councils do not agree with the deletion of ``all'' at 52.245-1(f)(1)(x). The clause at FAR 52.245-1(b)(1) already allows ``the contractor to initiate and maintain the processes, systems, procedures, records, and methodologies necessary for the effective control of Government property consistent with voluntary consensus standards and industry leading practices and standards.'' This requirement extends to the physical inventory required at FAR 52.245-1(f)(1)(x).
There is a revision to the proposed rule based on this comment category. One respondent recommended revising FAR 52.245-1(g)(1) to allow for multiple contractor property plans. The Councils agree. The language at FAR 52.245-1(g)(1) is revised to allow for multiple plans by revising ``plan'' to ``plan(s).''
Two respondents submitted four comments on this category. One respondent suggested that FAR 45.201(c)(4) be replaced with the following: ``A description of their Property Management System and the voluntary consensus standards or industry leading practices and standards to be used in the management of Government Property.'' Another comment recommended revising FAR 45.105(b) to change ``provide a schedule for their completion'' to ``request prompt correction of deficiencies and a schedule for their completion.'' Another comment recommended revising FAR 52.245-1(f)(1)(iii)(B) to delete the language ``when approved by the Property Administrator.'' Another comment recommended revising FAR 45.105(b) to amend the proposed rule to provide more effective property management. The Councils disagree with the change to FAR 45.201(c)(4). This recommendation is outside the scope of this case. The Councils partially agree with the recommendation of one respondent to change FAR 45.105(b) and partially concur with another respondent to provide a schedule of completion; therefore, the language in FAR 45.105(b) is revised. The Councils disagree with the recommended request to delete the language ``when approved by the Property Administrator.'' The Councils believe it is in the best interest of the Government for such approvals by the Government to be made on a contract by contract basis.
There is a revision to the proposed rule based on this comment category. One respondent recommended deleting ``Government-affixed'' at FAR 52.245-1(j)(8)(ii). The Councils agree.
One respondent suggested making all references to ``property'' consistent by changing the term to ``Government property.'' The Councils disagree. The Councils believe that all references to property in FAR part 45 inherently mean Government property (see FAR 45.000 Scope of part), and no further clarification is needed.
There is no revision to the proposed rule based on this category of comment.
Two respondents submitted four comments for this comment category.
One respondent recommended adding a new paragraph (e) in FAR 45.102 to read: ``Intangible property, e.g., intellectual property, software, etc., are not subject to this requirements of this FAR part or the Government property clauses found at 52.245.'' The Councils disagree. The issue of whether Intellectual property is covered under FAR contract property regulations is addressed in the scope of part in FAR 45.000 and in the definitions in FAR 45.101.
One respondent suggests removal of the proposed language in 15.404-4(a)(3) and inclusion of new language in 15.404-4(c)(3) that ``instructs contracting officers to exclude the costs of contractor-acquired property from pre-negotiation cost objectives when calculating the Government's pre-negotiation profit or fee objective, unless the contractor acquired property is a deliverable under the contract.'' The Councils partially agree with this recommendation and the language is revised accordingly.
Prior to the publication of FAR Case 2004-025, June 2007, FAR 45.302-2(c) and FAR 45.302-3(c) contained language intended to prevent contractors from acquiring facilities and treating the facilities in the same manner as a contract line item deliverable with associated profit or fee. FAR Case 2004-025 deleted this language. The requirements of this language were added to the proposed rule in FAR 15.404-4 because the policy still applies. While the application of this policy tended to be obfuscated by the term ``facilities,'' the underlying principle was clear--that when the contractor buys equipment or acquires real property on a ``pass through'' basis, i.e., when not part of a deliverable, it is the Government--not the contractor--who assumes the risk. Moreover, it is generally held that upon contract award, contractors are required to furnish all property necessary to perform Government contracts (FAR Part 45.102) as well as all the necessary resources needed for contract performance (FAR 9.104-1(f), General standards).
There is no revision to the proposed rule based on this category of comment. One respondent submitted two comments recommending amending FAR 45.301 and 45.303. One comment recommended amending FAR 45.301 by inserting a comma after the word ``authorized'' in paragraph (b) and making two sentences out of paragraph (b) so that it reads as follows: ``(b) Rental charges, to the extent authorized, do not apply to Government property that is left in place or installed on contractor-owned property for mobilization or future Government production purposes; (c) Rental charges shall apply to property to be used for non-government commercial purposes.'' The second comment recommended amending FAR 45.303 to read ``The contracting officer may authorize a contractor to use the property on an independent research and development (IR&D) program rent free, if--
(c) Estimated rental proceeds are immaterial or rental cost to the contractor would subsequently, in a substantial way, be charged back to the Government as part of indirect cost.''
One respondent agreed with the proposed language in FAR 45.604-3.
There is no revision to the proposed rule based on this category of comment. One respondent requested that the paragraph (FAR 45.606-1(b)) be revised as follows: ``For scrap from other than production or testing, the contractor may prepare scrap lists in lieu of inventory disposal schedules (provided such lists are consistent with the property management plan or approvals by the property administrator or contracting officer). The Councils note the issue raised by the commenter. The recommendations are outside of the scope of this case. The proposed revisions will be considered in the formulation of a new case.
Revised FAR 45.101 and 52.245-1 to clarify the definition of ``equipment'' by including special test equipment and special tooling in the exclusions.
Revised FAR 45.101 and 52.245-1 to clarify the definition of ``cannibalize.''
Revised FAR 45.101 and 52.245-1 to clarify the definition of ``Government-furnished property.''
Revised FAR 52.245-1(j)(8)(ii) by deleting the language ``Government-affixed.''
Therefore, DoD, GSA, and NASA amend 48 CFR parts 2, 4, 15, 31, 32,
42, 45, and 52 as set forth below:
1. The authority citation for 48 CFR parts 2, 4, 15, 31, 32, 42, 45, and 52 continues to read as follows:
2. Amend section 2.101, in paragraph (b)(2), by removing from the definition ``Plant clearance officer'' the words ``plants and Federal installations'' and adding ``plants, Federal installations, and Federal and non-Federal industrial operations,'' in its place; and removing from the definition ``Special tooling'' the words ``test equipment, and'' and adding ``tooling, and'' in its place.
(3) * * * Before applying profit or fee factors, the contracting
officer shall exclude from the pre-negotiation cost objective amounts
the purchase cost of contractor-acquired property that is categorized as equipment, as defined in FAR 45.101, and where such equipment is to be charged directly to the contract. * * *
31.205-19 [Amended]
5. Amend section 31.205-19(e)(2)(iv)(C) by removing ``52.245-1(h)(1)(ii)'' and adding ``52.245-1(a)'' in its place.
32.503-16 [Amended]
6. Amend section 32.503-16 by removing from paragraph (a) ``loss, theft, destruction, or damage to'' and adding ``lost, stolen, damaged, or destroyed'' in its place.
32.1010 [Amended]
7. Amend section 32.1010 by removing from paragraph (a) ``loss, theft, destruction, or damage to property affected by the clause'' and adding ``lost, stolen, damaged, or destroyed property'' in its place.
9. Amend section 45.101 by--
a. Revising the definitions ``Cannibalize'', ``Equipment'', ``Government-furnished property'', and ``Government property'';
b. Removing from the definition ``Material'' the words ``and special test equipment'' and adding ``special test equipment or real property'' in its place;
c. Removing the definition ``Plant equipment'';
d. Adding the definition ``Property records''; and
e. Revising the definition ``Real property.''
12. Amend section 45.105 by revising the first sentence of paragraph (b); revising paragraph (b)(1); and removing from paragraph (d) ``damage, destruction or theft'' and adding ``theft, damage or destruction'' in its place.
45.201 [Amended]
13. Amend section 45.201 by removing from paragraph (d) ``When use of property on more than one contract is anticipated, any'' and adding ``Any'' in its place.
45.602-3 [Amended]
16. Amend section 45.602-3 by removing from paragraph (b)(3) ``North Capitol and H Streets'' and adding ``732 North Capitol Street'' in its place.
45.604-3 Sale of surplus personal property.
(c) Inventory disposal schedules shall be submitted for all aircraft regardless of condition, flight safety critical aircraft parts, and scrap that--
19. Amend section 52.232-16 by--
a. Removing from the clause heading ``(JUL 2009)'' and adding ``(AUG 2010)'' in its place;
b. Removing from paragraph (d)(2)(ii) ``under any other clause of this contract'';
c. Removing from paragraph (d)(3) ``or special tooling''; and
d. Removing from paragraph (e) ``is damaged, lost, stolen, or'' and adding ``is lost, stolen, damaged, or'' in its place.
52.232-32 [Amended]
20. Amend section 52.232-32 by--
a. Removing from the clause heading ``(JAN 2008)'' and adding ``(AUG 2010)'' in its place;
b. Removing from paragraph (f)(2)(ii) ``under any other clause of this contract'';
c. Removing from paragraph (f)(3) ``or special tooling''; and
d. Removing from paragraph (g) ``is damaged, lost, stolen, or'' and adding ``is lost, stolen, damaged, or'' in its place.
21. Amend section 52.245-1 by--
b. In paragraph (a) by--
i. Revising the definitions ``Cannibalize'' and ``Equipment'';
ii. Adding two sentences to the end of the definition ``Government-furnished property'';
iii. Adding two sentences to the end of the definition ``Government property'';
iv. Removing from the definition ``Material'' the word ``end-item'' and adding the words ``end item'' in its place; and removing the words ``and special test equipment'' and adding the words ``, special test equipment or real property'' in its place;
v. Removing the definition ``Plant equipment'';
vi. Adding, in alphabetical order, the definition ``Property records''; and
vii. Revising the definition ``Real property'';
d. Removing from paragraphs (e)(2)(iii) and (f)(1)(i) the word ``material'' and adding the word ``property'' wherever it occurs (8 times);
e. Revising paragraph (f)(1)(v)(A), introductory text of paragraph (f)(1)(vi), paragraphs (f)(1)(vi)(A), (f)(1)(vi)(B)(4), (f)(1)(vi)(B)(10), (f)(1)(vii)(A), (f)(1)(viii)(B), (f)(1)(x), (g), introductory text of paragraph (h)(1), paragraphs (h)(1)(ii) and (h)(1)(iii), the first sentence of paragraph (h)(2), (h)(3), introductory text of paragraph (i), and paragraph (j)(1)(i)(B);
i. Remove from paragraph (j)(7)(ii) the word ``facility'' and add the word ``area'' in its place;
(2) Modifications or alterations of Government property are prohibited, unless they are--
(10) A statement that the Government will receive any reimbursement covering the loss, theft, damage or destruction in the event the Contractor was or will be reimbursed or compensated.* * * * *
(1) Unless otherwise provided for in the contract, the Contractor shall not be liable for loss, theft, damage or destruction to the Government property furnished or acquired under this contract, except when any one of the following applies--
(5) Contains precious metals that are economically beneficial to
recover; or
(iv) The Contractor shall provide the information required by
FAR 52.245-1(f)(1)(iii) along with the following:
(A) Any additional information that may facilitate understanding
of the property's intended use.
(B) For work-in-progress, the estimated percentage of
(vi) Scrap should be reported by ``lot'' along with metal content, estimated weight and estimated value.
(b) The Government bears no responsibility for repair or
replacement of any lost, stolen, damaged or destroyed-Government property. If any or all of the Government property is lost, stolen, damaged or destroyed or becomes no longer usable, the Contractor shall be responsible for replacement of the property at Contractor expense. * * *
23. Amend section 52.245-9 by revising the date of the clause, and the introductory text of paragraph (a); and removing the definitions ``Acquisition cost'', ``Government property'', ``Plant equipment'', and ``Real property''.
* * * The provisions of the clause entitled ``Government Property,'' at 52.245-1, shall apply to all property acquired under such authorization.
[DOCID:fr02jy10-19]
SUMMARY: The Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council (Councils) have adopted, as final without change, the interim rule amending the Federal Acquisition Regulation (FAR) to implement the Department of Homeland Security Appropriations Act, 2007, section 697, which requires the establishment and maintenance of a registry of disaster response contractors.
Millisa Gary, Procurement Analyst, at (202) 501-0699. For information pertaining to status or publication schedules, contact the Regulatory Secretariat at (202) 501-4755. Please cite FAC 2005-43, FAR case 2008-035.
In the interim rule, the Councils amended the language at FAR 2.101 to add a definition of ``Disaster Response Registry,'' and at FAR 4.1104, 18.102, and 26.205 to require contracting officers to consult the registry at http://www.ccr.gov. In addition, a requirement was added to FAR 10.001 to require contracting officers to take advantage of commercially available market research methods to identify capabilities to meet agency requirements for disaster relief.
The Disaster Response Registry is located at www.ccr.gov. The Federal Emergency Management Agency (within the Department of Homeland Security) has a link to the registry for vendors on its Web site http://www.fema.gov/business/contractor.shtm. The Registry covers disaster and emergency relief activities inside the United States and its outlying areas only. Major disaster and emergency declarations are published in the Federal Register and are available at http://www.fema.gov/news/disasters.fema.
[DOCID:fr02jy10-20]
[FAC 2005-43; FAR Case 2010-008; Item III; Docket 2010-0008, Sequence 1]
SUMMARY: The Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council (Councils) have agreed on an interim rule amending the Federal Acquisition Regulation (FAR) to revise the clause at FAR 52.204-11. This interim rule does not require renegotiation of existing Recovery Act contracts that include the clause dated March 2009. This change will require first-tier subcontractors with Recovery Act funded awards of $25,000 or more, to report jobs information to the prime contractor for reporting into http://FederalReporting.gov. It also will require the prime contractor to submit its first report on or before the 10th day after the end of the calendar quarter in which the prime contractor received the award, and quarterly thereafter.
ADDRESSES: Submit comments identified by FAC 2005-43, FAR case 2010-008, by any of the following methods:
Regulations.gov: http://www.regulations.gov. Submit comments via the Federal eRulemaking portal by inputting ``FAR Case 2010-008'' under the heading ``Enter Keyword or ID'' and selecting ``Search.'' Select the link ``Submit a Comment'' that corresponds with ``FAR Case 2010-008.'' Follow the instructions provided at the ``Submit a Comment'' screen. Please include your name, company name (if any), and ``FAR Case 2010-008'' on your attached document.
FOR FURTHER INFORMATION CONTACT: Mr. Karlos Morgan, Procurement Analyst, at (202) 501-2364 for clarification of content. Please cite FAC 2005-43, FAR case 2010-008. For information pertaining to status or publication schedules, contact the Regulatory Secretariat at (202) 501-4755.
On February 17, 2009, the President signed Public Law 111-5, the American Recovery and Reinvestment Act of 2009 (the ``Recovery Act''), including a number of provisions to be implemented in Federal Government contracts. On March 31, 2009, the Councils published FAR Case 2009-009 in the Federal Register, (74 FR 14639) as an interim rule amending the FAR to implement section 1512 of the Recovery Act, which requires contractors to report on their use of Recovery Act funds. A correction was published May 14, 2009 (74 FR 22810). The FAR interim rule added a new subpart 4.15, and a new clause, 52.204-11, requiring contracting officers to include the clause in solicitations and contracts funded in whole or in part with Recovery Act funds, except classified solicitations and contracts.
FAR Case 2009-009, American Recovery and Reinvestment Act of 2009 (Recovery Act)--Reporting Requirements, is related to this rule (see 74 FR 16469, published on March 31, 2009).
Insert the clause at 52.204-11, American Recovery and Reinvestment Act--Reporting Requirements in all solicitations and contracts funded in whole or in part with Recovery Act funds, except classified solicitations and contracts. This includes, but is not limited to, Governmentwide Acquisition Contracts (GWACs), multi-agency contracts (MACs), Federal Supply Schedule (FSS) contracts, or agency indefinite-delivery/indefinite-quantity (ID/IQ) contracts that will be funded with Recovery Act funds. Contracting officers shall include this clause in any existing contract or order that will be funded with Recovery Act funds. Contracting officers may not use Recovery Act funds on existing contracts and orders if the clause at 52.204-11 is not incorporated. This clause is not required for any existing contracts, or task and delivery orders issued under a contract, that contains the original clause FAR 52.204-11 (March 2009).
a. Removing from the clause heading ``(MAR 2009)'' and adding ``(JUL 2010)''in its place;
d. Removing from paragraph (d)(7)(i) the word ``contractor's'' and adding the word ``Contractor's'' in its place;
52.204-11 American Recovery and Reinvestment Act--Reporting Requirements.
(c) Reports from the Contractor for all work funded, in whole or in part, by the Recovery Act, are due no later than the 10th day following the end of each calendar quarter. The Contractor shall review the Frequently Asked Questions (FAQs) for Federal Contractors before each reporting cycle and prior to submitting each quarterly report as the FAQs may be updated from time-to-time. The first report is due no later than the 10th day after the end of the calendar quarter in which the Contractor received the award. Thereafter, reports shall be submitted no later than the 10th day after the end of each calendar quarter. For information on when the Contractor shall submit its final report, see http:// www.whitehouse.gov/omb/recovery_faqs_contractors.
(7) A narrative description of the employment impact of work funded by the Recovery Act. This narrative should be cumulative for each calendar quarter and address the impact on the Contractor's and first-tier subcontractors' workforce for all first-tier subcontracts valued at $25,000 or more. At a minimum, the Contractor shall provide--
(xii) A narrative description of the employment impact of work funded by the Recovery Act. This narrative should be cumulative for each calendar quarter and address the impact on the subcontractor's workforce. At a minimum, the subcontractor shall provide--
4. Amend section 52.212-5 by removing from the clause heading ``(June 2010)'' and adding ``(JUL 2010)'' in its place; and removing from paragraph (b)(4) ``MAR 2009)'' and adding ``(JUL 2010)'' in its place.
[DOCID:fr02jy10-21]
SUMMARY: The Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council (Councils) are issuing a final rule to amend the Federal Acquisition Regulation (FAR) to clarify the criteria that need to be met in order to conduct a sole source Service-disabled Veteran-owned Small Business (SDVOSB) concern acquisition.
FOR FURTHER INFORMATION CONTACT: For clarification of content, contact Rhonda Cundiff, Procurement Analyst, at (202) 501-0044. For information pertaining to status or publication schedules, contact the Regulatory Secretariat at (202) 501-4755. Please cite FAC 2005-43, FAR Case 2008-023.
The Councils published a proposed rule in the Federal Register at 74 FR 23373 on May 19, 2009, to revise the language in FAR 19.1406(a)(1) to clarify the criteria that need to be met in order to conduct a sole source SDVOSB concern acquisition. The final rule contains language that more closely mirrors the Veterans Benefit Act of 2003 (15 U.S.C. 657f). The final rule revises the language in FAR 19.1306(a)(1), which deals with sole source awards to Historically Underutilized Business Zone (HUBZone) small business concerns based on 15 U.S.C. 657a(b), to match the language in FAR 19.1406(a)(1) to alleviate confusion on the appropriate use of the criteria needed to conduct a sole source SDVOSB concern acquisition.
3. Comment: Revise the language in FAR 19.1306(a) and 19.1406(a). Two respondents recommended revising paragraph (a) of FAR 19.1406 Sole Source Awards to Service-disabled Veterans-owned Small Business concerns to match the language in paragraph (a) of FAR 19.1306 by adding the language: ``(a) A participating agency contracting office may award contracts to a service-disabled Veteran-owned small business concern on a sole source basis without considering small business set-asides provided-''.
Response: Threshold changes are based on statute. Federal Acquisition Circular 2005-013, FAR Case 2004-033, published in the Federal Register at 71 FR 57363 on September 28, 2006, was based on a statutory requirement, raising thresholds in the FAR due to inflation. The escalation calculation for the inflationary threshold for sole source awards to Service-disabled Veteran-owned small businesses was not eligible for an inflationary increase (see http://acquisition.gov/far/facsframe.html). However, FAR Case 2008-024 is the case handling the next round of inflationary increases, and when that case is published as a final rule, the threshold may be raised; the Councils note that the inflation calculation is different for SDVOSB than for 8(a) and HUBZone because these statutes were enacted at different times.
(a) A contracting officer may award contracts to HUBZone small business concerns on a sole source basis (see 19.501(c) and 6.302-5(b)(5)) before considering small business set-asides (see subpart 19.5), provided--
(2) The anticipated price of the contract, including options, will not exceed--
(a) A contracting officer may award contracts to service-disabled veteran-owned small business concerns on a sole source basis (see 19.501(d) and 6.302-5(b)(6)), before considering small business set-asides (see subpart 19.5) provided none of the exclusions of 19.1404 apply and-- (1) The contracting officer does not have a reasonable expectation that offers would be received from two or more service-disabled veteran-owned small business concerns;
(2) The anticipated award price of the contract, including options, will not exceed--
[DOCID:fr02jy10-22]
[FAC 2005-43; FAR Case 2009-040; Item V; Docket 2010-0092, Sequence 1]
RIN 9000-AL57
SUMMARY: The Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council (the Councils) are issuing an interim rule amending the Federal Acquisition Regulation (FAR) to incorporate increased thresholds for application of the World Trade Organization Government Procurement Agreement and the Free Trade Agreements, as determined by the United States Trade Representative.
ADDRESSES: Submit comments identified by FAC 2005-43, FAR Case 2009-040, by any of the following methods:
Submit comments via the Federal eRulemaking portal by inputting ``FAR Case 2009-040'' under the heading ``Enter Keyword or ID'' and selecting ``Search''. Select the link ``Submit a Comment'' that corresponds with ``FAR Case 2009-040''. Follow the instructions provided at the ``Submit a Comment'' screen. Please include your name, company name (if any), and ``FAR Case 2009-040'' on your attached document.
FOR FURTHER INFORMATION CONTACT: For clarification of content, contact Ms. Cecelia L. Davis, Procurement Analyst, at (202) 219-0202. Please cite FAC 2005-43, FAR Case 2009-040. For information pertaining to status or publication schedules, contact the Regulatory Secretariat at (202) 501-4755.
Supply contract Service contract Construction
Trade agreement (equal to or (equal to or contract (equal
exceeding) exceeding) to or exceeding)
WTO GPA................................................ $203,000 $203,000 $7,804,000
Australia FTA...................................... 70,079 70,079 7,804,000
Bahrain FTA........................................ 203,000 203,000 9,110,318
CAFTA-DR (Costa Rica, Dominican Republic, El 70,079 70,079 7,804,000
Salvador, Guatemala, Honduras, and Nicaragua).....
Chile FTA.......................................... 70,079 70,079 7,804,000
Morocco FTA........................................ 203,000 203,000 7,804,000
--Canada........................................... 25,000 70,079 9,110,318
--Mexico........................................... 70,079 70,079 9,110,318
Oman FTA............................................... 203,000 203,000 9,110,318
Peru FTA............................................... 203,000 203,000 7,804,000
Singapore FTA.......................................... 70,079 70,079 7,804,000
Israeli Trade Act...................................... 50,000 ................. .................
The Councils do not expect this interim rule to 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 dollar threshold changes are designed to keep pace with inflation and thus maintain the status quo. Therefore, an Initial Regulatory Flexibility Analysis has not been performed. The Councils invite comments from small business concerns and other interested parties on the expected impact of this rule on small entities.
2. Amend section 22.1503 by removing from paragraph (b)(3) ``$67,826'' and adding ``$70,079'' in its place; and removing from paragraph (b)(4) ``$194,000'' and adding ``$203,000'' in its place.
3. Amend section 25.202 by removing from paragraph (c) ``$7,443,000'' and adding ``$7,804,000'' in its place.
CAFTA-DR (Costa Rica, El Salvador, Dominican 70,079 70,079 7,804,000
Republic, Guatemala, Honduras, and Nicaragua).....
Offer A........................ 304,000 U.S.-made end product
(not domestic).
Offer B........................ 303,000 U.S.-made end product
(domestic), small
Offer C........................ 300,000 Eligible product.
Offer D........................ 295,000 Noneligible product
(not U.S.-made).
5. Amend section 25.603 in paragraph (c) by removing ``$7,443,000'' and adding ``$7,804,000'' in its place.
a. Removing from paragraph (b)(1)(i)(A) ``$194,000'' and adding ``$203,000'' in its place;
b. Removing from paragraphs (b)(1)(iii) and (b)(2)(iii) ``$67,826'', and adding ``$70,079'' in its place;
c. Removing from paragraphs (c)(1) and (d) ``$194,000'', and adding ``$203,000'' in its place.
7. Amend section 25.1102 by removing from paragraphs (a) introductory text and (c) introductory text ``$7,443,000'' and adding ``$7,804,000'' in its place; revising the first sentence in paragraph (c)(3); and revising paragraph (d)(3) to read as follows:
----(20) 52.222-19, Child Labor--Cooperation with Authorities and Remedies (Jul 2010) (E.O. 13126).
(i) 52.222-19, Child Labor--Cooperation with Authorities and Remedies (Jul 2010) (E.O. 13126). * * *
10. Amend section 52.222-19 by revising the date of the clause; removing from paragraph (a)(3) ``$67,826'' and adding ``$70,079'' in its place; and removing from paragraph (a)(4) ``$194,000'' and adding ``$203,000'' in its place.
CHILD LABOR--COOPERATION WITH AUTHORITIES AND REMEDIES (JUL 2010)