[Federal Register Volume 77, Number 224 (Tuesday, November 20, 2012)]

[Rules and Regulations]

From the Federal Register Online via the Government Printing Office [www.gpo.gov]

[FR Doc No: 2012-27903]

Vol. 77

Tuesday,

No. 224

November 20, 2012

Part III

Department of Defense

-----------------------------------------------------------------------

General Services Administration

-----------------------------------------------------------------------

National Aeronautics and Space Administration

-----------------------------------------------------------------------

48 CFR Chapter 1

Federal Acquisition Regulation; Final Rules

Federal Register / Vol. 77 , No. 224 / Tuesday, November 20, 2012 / Rules and Regulations

-----------------------------------------------------------------------

DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Chapter 1

[Docket FAR 2012-0080, Sequence 7]

Federal Acquisition Regulation; Federal Acquisition Circular 2005-62; Introduction

AGENCIES: Department of Defense (DoD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Summary presentation of a final and interim rule.

-----------------------------------------------------------------------

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) 2005-62. 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.

DATES: For effective dates and comment dates see separate documents, which follow.

FOR FURTHER INFORMATION CONTACT: The analyst whose name appears in the table below in relation to each FAR case. Please cite FAC 2005-62 and the specific FAR case numbers. For information pertaining to status or publication schedules, contact the Regulatory Secretariat at 202-501-4755.

List of Rules in FAC 2005-62

Item

Subject

FAR case

Analyst

I

Updates to Contract Reporting and Central Contractor Registration.

2010-014

Loeb

II

Interagency Acquisitions: Compliance by Nondefense Agencies with Defense Procurement Requirements.

2012-010

Corrigan

III

Free Trade Agreement--Panama.

2012-027

Davis

SUPPLEMENTARY INFORMATION: Summaries for each FAR rule follow. For the actual revisions and/or amendments made by these FAR cases, refer to the specific item numbers and subjects set forth in the documents following these item summaries. FAC 2005-62 amends the FAR as specified below:

Item I--Updates to Contract Reporting and Central Contractor Registration (FAR Case 2010-014)

GSA, DOD, and NASA published a proposed rule in the Federal Register at 76 FR 73564 on November 29, 2011 to revise the practice for and limit the use of generic Data Universal Numbering System (DUNS) Numbers, update policies on reporting into the Federal Procurement Data System (FPDS), and revise clauses for Central Contractor Registration (CCR) and DUNS Number reporting. The rule increases transparency by reducing the use of generic DUNs, but may require more small businesses to register in CCR. The rule clarifies that non-appropriated fund awards will generally not be included in FPDS. The rule also clarifies requirements for agencies to submit and review contract action reports in FPDS. This rule uses the existing term ``Central Contractor Registration'' rather than ``System for Award Management,'' because FAR Case 2012-033 will address the terminology update to ``System for Award Management'' throughout the FAR.

Item II--Interagency Acquisitions: Compliance by Nondefense Agencies With Defense Procurement Requirements (FAR Case 2012-010)

This interim rule amends the FAR to implement section 801 of the National Defense Authorization Act for Fiscal Year 2008 (Pub. L. 110-181), as amended (10 U.S.C. 2304 note). Section 801 requires compliance certifications by non-defense agencies that purchase on behalf of DoD, and clarifies which DoD laws and regulations apply. The agencies must comply with new FAR subpart 17.7, in addition to complying with FAR subpart 17.5. To provide clarification for small business and contracting officers, existing policy for small business goal credit for assisted acquisitions is added to section FAR 4.603(c).

Item III--Free Trade Agreement--Panama (FAR Case 2012-027)

This interim rule implements a new Free Trade Agreement with Panama (see the United States-Panama Trade Promotion Agreement Implementation Act (Pub. L. 112-43) (19 U.S.C. 3805 note)).

This Trade Promotion Agreement is a free trade agreement that provides for mutually non-discriminatory treatment of eligible products and services from Panama. This interim rule is not expected to have a significant economic impact on a substantial number of small entities.

Federal Acquisition Circular (FAC) 2005-62 is issued under the authority of the Secretary of Defense, the Administrator of General Services, and the Administrator for the National Aeronautics and Space Administration.

Unless otherwise specified, all Federal Acquisition Regulation (FAR) and other directive material contained in FAC 2005-62 is effective November 20, 2012, except for Item I which is effective December 20, 2012.

Dated: November 9, 2012.

Laura Auletta,

Director, Office of Governmentwide Acquisition Policy, Office of Acquisition Policy, Office of Governmentwide Policy.

Dated: November 6, 2012.

Richard Ginman,

Deputy Director, Defense Procurement and Acquisition Policy.

Dated: November 5, 2012.

Joseph A. Neurauter,

Senior Procurement Executive/Deputy CAO, Office of Acquisition Policy, U.S. General Services Administration.

Dated: November 5, 2012.

William P. McNally,

Assistant Administrator for Procurement, National Aeronautics and Space Administration.

[FR Doc. 2012-27903 Filed 11-19-12; 8:45 am]

BILLING CODE 6820-EP-P

-----------------------------------------------------------------------

[Federal Register Volume 77, Number 224 (Tuesday, November 20, 2012)]

[Rules and Regulations]

From the Federal Register Online via the Government Printing Office [www.gpo.gov]

[FR Doc No: 2012-27904]

-----------------------------------------------------------------------

DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 1, 4, 13, 19, 32, and 52

[FAC 2005-62; FAR Case 2010-014; Item I; Docket 2010-0014, Sequence 01]

RIN 9000-AL99

Federal Acquisition Regulation; Updates to Contract Reporting and Central Contractor Registration

AGENCY: Department of Defense (DoD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: DoD, GSA, and NASA are issuing a final rule amending the Federal Acquisition Regulation (FAR) to limit the use of generic substitutes instead of Data Universal Numbering System (DUNS) numbers, and update the policies and procedures associated with reporting in the Federal Procurement Data System (FPDS). Additionally, this final rule changes the clauses requiring contractor registration in the Central Contractor Registration (CCR) database and DUNS number reporting.

DATES: Effective: December 20, 2012.

FOR FURTHER INFORMATION CONTACT: Mr. Edward Loeb, Procurement Analyst, at 202-501-0650, for clarification of content. For information pertaining to status or publication schedules, contact the Regulatory Secretariat at 202-501-4755. Please cite FAC 2005-62, FAR Case 2010-014.

SUPPLEMENTARY INFORMATION:

I. Background

For decades, the Data Universal Numbering System (DUNS) number provided by Dun & Bradstreet has been the Federal Government's unique identifier for contractors. It is used (1) to uniquely identify a contractor entity, and (2) to roll-up Government procurements to the ultimate parent organization to show the corporate family receiving U.S. obligations. Furthermore, the DUNS number is the identifier for the Federal Procurement Data System (FPDS) and for the Federal Funding Accountability and Transparency Act of 2006 (Transparency Act) reporting to http://www.usaspending.gov/.

DoD, GSA, and NASA published a proposed rule in the Federal Register at 76 FR 73564 on November 29, 2011, to revise the practice for use of generic DUNS numbers and to update the CCR clause. Due to legitimate challenges encountered with overseas contracting, a practice existed using a generic DUNS number, such as ``Miscellaneous Foreign Vendor'' to enable accounting of the obligation without explicit identification of the vendor, i.e., foreign local contractors where Dun & Bradstreet registration is impracticable, or foreign contractors when identification may endanger the contractor.

When a generic DUNS number is used, the identity of the contractor is masked beyond the local contracting office. The contractor's identification for all downstream reporting processes is the name of the generic DUNS number, for example, ``Miscellaneous Foreign Vendor''. The practice of using generic DUNS numbers adversely affects the transparency of the Government's data, including Transparency Act contract reporting. Also, the contractor is not able to access and perform its own reporting requirements, such as Transparency Act subcontract reporting, because the contract is not associated with the contractor in Federal-wide processes. As such, the use of a generic DUNS number should be limited to those actions where it is truly necessary. The rule includes requirements intended to more strictly limit the use of the generic DUNS number to foreign contract actions valued at or below $25,000.

For greater transparency and clarification, updates or corresponding changes in procedures and clauses in FAR parts 1, 4, 19, 32, and 52 are related to the use of the DUNS number, and CCR and FPDS reporting.

This rule uses the existing term ``Central Contractor Registration'' rather than ``System for Award Management,'' because FAR Case 2012-033 will address the terminology update to ``System for Award Management'' throughout the FAR.

Six respondents submitted comments on the proposed rule.

II. Discussion and Analysis

The Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council (the Councils) reviewed the comments in the development of the final rule. A discussion of the comments and the changes made to the rule as a result of those comments are provided as follows:

A. Summary of Significant Changes

There are no significant changes in the final rule as a result of public comments. There are some minor changes as addressed in section II.B. of this preamble.

B. Analysis of Public Comments

1. Foreign Vendor Considerations

Comment: Several respondents suggested revisions to the threshold for application to foreign vendors.

Response: The Transparency Act requires the collection of specific contractor identification information, as well as executive compensation for any vendor receiving a Federal award valued greater than $25,000 (with certain exceptions). The Office of Management and Budget (OMB) has issued guidance stating that the DUNS number is the identifier for the Transparency Act, so a specific DUNS number is required.

Comment: Several respondents recommended revision to the CCR registration process for foreign vendors.

Response: The FAR requires that contractors address whether or not they are required to provide specific executive compensation information via CCR. There are no exceptions for foreign vendors in the Transparency Act. Thus, obtaining a DUNS number and CCR registration is required for contracts greater than $25,000. There is no flexibility available beyond that outlined in the rule. In addition, the new System for Award Management will facilitate the registration of foreign vendors by eliminating the need to address registration issues not applicable to foreign vendors.

2. Contract Reporting Policy, FAR 4.603

Comment: One respondent questioned the need to change the FPDS data field title from ``Funding Agency'' to ``Program/Funding Agency'' at FAR 4.603(c).

Response: The term has been ``Program/Funding Agency'' in all reports generated by FPDS since 2003. The change will synchronize the FAR with the FPDS data dictionary. No change to the language is required.

3. Contract Reporting Responsibilities, FAR 4.604

Comment: One respondent sought clarity on whether the procedural changes at FAR 4.604(b)(1) and (2) indicated that the draft or error record cannot remain in that status for more than three days. The respondent also sought clarity regarding whether, if the FPDS report is completed by someone other than the contracting officer, agencies can assume this is an acceptable practice.

Response: The rule clarifies previously ambiguous language. The draft or error record must be corrected and completed within the three business day deadline. Agency standards dictate that errors must be corrected in a timely fashion and agency systems are utilized to monitor corrections. The contracting officer is ultimately responsible for the contract action report being completed (whether or not the contracting officer is the person that inputs the report). Only the data from completed reports is included in FPDS reports. Drafts and reports containing errors are not considered complete. No change to the proposed language is required.

4. Contract Reporting Procedures, FAR 4.605

Comment: One respondent commented that FAR 4.605(c)(2)(i)(C) and 4.605(c)(2)(ii) seem to overlap with regard to overseas performance.

Response: Presently, FAR 4.605(c)(2)(i) is clear on authorized use of generic DUNS numbers for contract actions valued at or below the simplified acquisition threshold. FAR 4.605(c)(2)(ii) was revised to clarify authorized use of generic DUNS numbers for contract actions valued above $25,000. FAR 4.605(c)(2)(ii) has been revised to clarify that it applies to individuals located outside the United States and its outlying areas for work to be performed outside the United States and its outlying areas.

Comment: One respondent noted that the current language at FAR 4.605(c)(2)(iii) could be misinterpreted. The respondent suggested specifying what decision must be documented as part of the determination.

Response: FAR 4.605(c) has been revised to provide guidance to contracting officers on proper documentation of the decision to authorize a generic DUNS number.

5. Reporting Data, FAR 4.606

Comment: One respondent noted that the new reporting requirements at 4.606(b) that restrict reporting actions with both appropriated and nonappropriated funding to only report the fully appropriated portion of the contract action needs to be revised to provide relief, exception, or waiver to agencies that cannot identify and segregate the separate funding types.

Response: Subsequent conversations with the Federal agency that submitted the public comment indicate that the issue identified is not a reporting problem for the circumstances identified; the funding was determined to be appropriated.

Comment: One respondent noted that where FAR 4.606(d) addresses actions not subject to the FAR that are required to be reported by other authority, it is not clear whether this applies to FAR covered agencies.

Response: The title of FAR 4.606(d) has been revised to reflect the word ``agencies''.

6. Solicitation Provision and Contract Clause, FAR 4.1202

Comment: One respondent noted that the prescription in FAR 4.1202 for FAR 52.204-7, Central Contractor Registration needs to be revised as it is no longer a clause.

Response: FAR 4.1202 has been revised to read ``provision'' instead of ``clause'' when it references 52.204-7. A search of the FAR identified additional references to 52.204-7 that have been revised in the same manner.

III. Executive Order 12866 and 13563

Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess all costs and benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits (including potential economic, environmental, public health and safety effects, distributive impacts, and equity). E.O. 13563 emphasizes the importance of quantifying both costs and benefits, of reducing costs, of harmonizing rules, and of promoting flexibility. This is a significant regulatory action and, therefore, was subject to review under section 6(b) of Executive Order 12866, Regulatory Planning and Review, dated September 30, 1993. This rule is not a major rule under 5 U.S.C. 804.

IV. Regulatory Flexibility Act

The Department of Defense, the General Services Administration, and the National Aeronautics and Space Administration certify that this final rule will not have a significant economic impact on a substantial number of small entities within the meaning of the Regulatory Flexibility Act, 5 U.S.C. 601, et seq., because the FAR amendments affect internal Government procedures, or clarify existing procedures. Additionally, the requirement for the contractor to report any changes to their DUNS number to the contracting officer throughout the life of the contract may be rare, but should it occur, the impact is minimal.

V. Paperwork Reduction Act

The final rule does not contain any information collection requirements that require the approval of the Office of Management and Budget under the Paperwork Reduction Act (44 U.S.C. chapter 35). Existing OMB clearances 9000-0145, Use of Data Universal Numbering System (DUNS) as Primary Contractor Identification, and 9000-0159, Central Contractor Registration, reflect current information collection burdens. This rule removes from existing CCR provision language covered by the cited OMB clearance that, per the FAR Drafting Guide, should be contained in a clause. This action creates no new collection requirement. Accordingly, FAR 1.106 will be amended to reflect two new clauses, 52.204-12 and 52.204-13, containing language instructing contractors to maintain their DUNS number and Central Contractor Registration, respectively.

List of Subjects in 48 CFR Parts 1, 4, 13, 19, 32, and 52

Government procurement.

Dated: November 9, 2012.

Laura Auletta,

Director, Office of Governmentwide Acquisition Policy, Office of Acquisition Policy, Office of Governmentwide Policy.

Therefore, DoD, GSA, and NASA amend 48 CFR parts 1, 4, 13, 19, 32, and 52 as set forth below:

1. The authority citation for 48 CFR parts 1, 4, 13, 19, 32, and 52 is revised to read as follows:

Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 51 U.S.C. 20113.

PART 1--FEDERAL ACQUISITION REGULATION SYSTEM

1.106 [Amended]

2. Amend section 1.106 in the table by adding in numerical sequence FAR segments ``52.204-12'' and ``52.204-13'' and their corresponding OMB Control Numbers ``9000-0145'' and ``9000-0159'', respectively.

PART 4--ADMINISTRATIVE MATTERS

3. Revise section 4.603 to read as follows:

4.603 Policy.

(a) In accordance with the Federal Funding Accountability and Transparency Act of 2006 (Pub. L. 109-282), all unclassified Federal award data must be publicly accessible.

(b) Executive agencies shall use FPDS to maintain publicly available information about all unclassified contract actions exceeding the micro-purchase threshold, and any modifications to those actions that change previously reported contract action report data, regardless of dollar value.

(c) Agencies awarding assisted acquisitions or direct acquisitions must report these actions and identify the Program/Funding Agency and Office Codes from the applicable agency codes maintained by each agency at FPDS. These codes represent the agency and office that has provided the predominant amount of funding for the contract action. For assisted acquisitions, the requesting agency will receive socioeconomic credit for meeting agency small business goals, where applicable. Requesting agencies shall provide the appropriate agency/bureau component code as part of the written interagency agreement between the requesting and servicing agencies (see 17.502-1(b)(1)).

(d) Agencies awarding contract actions with a mix of appropriated and non-appropriated funding shall only report the full appropriated portion of the contract action in FPDS.

4. Amend section 4.604 by revising paragraph (b) to read as follows:

4.604 Responsibilities.

* * * * *

(b)(1) The responsibility for the completion and accuracy of the individual contract action report (CAR) resides with the contracting officer who awarded the contract action. CARs in a draft or error status in FPDS are not considered complete.

(2) The CAR must be confirmed for accuracy by the contracting officer prior to release of the contract award. The CAR must then be completed in FPDS within three business days after contract award.

(3) For any action awarded in accordance with 6.302-2 or pursuant to any of the authorities listed at FAR subpart 18.2, the CAR must be completed in FPDS within 30 days after contract award.

(4) When the contracting office receives written notification that a contractor has changed its size status in accordance with the clause at 52.219-28, Post-Award Small Business Program Representation, the contracting officer must submit a modification contract action report to ensure that the updated size status is entered in FPDS.

* * * * *

5. Amend section 4.605 by--

a. Revising paragraph (b);

b. Redesignating paragraph (c) as paragraph (d);

c. Adding a new paragraph (c); and

d. Revising newly redesignated paragraph (d).

The revisions and addition read as follows:

4.605 Procedures.

* * * * *

(b) Data Universal Numbering System. The contracting officer must identify and report a Data Universal Numbering System (DUNS) number (Contractor Identification Number) for the successful offeror on a contract action. The DUNS number reported must identify the successful offeror's name and address as stated in the offer and resultant contract, and as registered in the Central Contractor Registration (CCR) database in accordance with the provision at 52.204-7, Central Contractor Registration. The contracting officer must ask the offeror to provide its DUNS number by using either the provision at 52.204-6, Data Universal Numbering System Number, the provision at 52.204-7, Central Contractor Registration, or the provision at 52.212-1, Instructions to Offerors--Commercial Items.

(c) Generic DUNS number. (1) The use of a generic DUNS number should be limited, and only used in the situations described in paragraph (c)(2) of this section. Use of a generic DUNS number does not supersede the requirements of either provisions 52.204-6 or 52.204-7 (if present in the solicitation) for the contractor to have a DUNS number assigned.

(2) Authorized generic DUNS numbers, maintained by the Integrated Acquisition Environment (IAE) program office (https://www.acquisition.gov), may be used to report contracts in lieu of the contractor's actual DUNS number only for--

(i) Contract actions valued at or below $25,000 that are awarded to a contractor that is--

(A) A student;

(B) A dependent of either a veteran, foreign service officer, or military member assigned outside the United States and its outlying areas (as defined in 2.101); or

(C) Located outside the United States and its outlying areas for work to be performed outside the United States and its outlying areas and the contractor does not otherwise have a DUNS number;

(ii) Contracts valued above $25,000 awarded to individuals located outside the United States and its outlying areas for work to be performed outside the United States and its outlying areas; or

(iii) Contracts when specific public identification of the contracted party could endanger the mission, contractor, or recipients of the acquired goods or services. The contracting officer must include a written determination in the contract file of a decision applicable to authority under this paragraph (c)(2)(iii).

(d) American Recovery and Reinvestment Act actions. The contracting officer, when entering data in FPDS, shall use the instructions at https://www.fpds.gov to identify any action funded in whole or in part by the American Recovery and Reinvestment Act of 2009 (Pub. L. 111-5).

6. Amend section 4.606 by--

a. Revising the introductory text of paragraph (b);

b. Removing paragraphs (b)(4) through (6);

c. Redesignating paragraph (b)(7) as paragraph (b)(4);

d. Removing paragraphs (b)(8) and (b)(9);

e. Adding paragraphs (c)(6) through (11); and

f. Revising paragraph (d) to read as follows:

4.606 Reporting data.

* * * * *

(b) Reporting other actions. Agencies may submit actions other than those listed at paragraph (a)(1) of this section only if they are able to be segregated from FAR-based actions and this is approved in writing by the FPDS Program Office. Prior to the commencement of reporting, agencies must contact the FPDS Program Office if they desire to submit any of the following types of activity:

* * * * *

(c) * * *

(6) Contract actions in which the required data would constitute classified information.

(7) Resale activity (i.e., commissary or exchange activity).

(8) Revenue generating arrangements (i.e., concessions).

(9) Training expenditures not issued as orders or contracts.

(10) Interagency agreements other than inter-agency acquisitions required to be reported at 4.606(a)(1).

(11) Letters of obligation used in the A-76 process.

(d) Agencies not subject to the FAR. Agencies not subject to the FAR may be required by other authority (e.g., statute, OMB, or internal agency policy) to report certain information to FPDS. Those agencies not subject to the FAR must first receive approval from the FPDS Program Office prior to reporting to FPDS.

6. Amend section 4.607 by--

a. Revising the section heading;

b. Removing paragraph (a) and redesignating paragraph (b) as paragraph (a); and

c. Adding new paragraphs (b) and (c) to read as follows:

4.607 Solicitation provisions and contract clause.

* * * * *

(b) Insert the provision at 52.204-6, Data Universal Numbering System Number, in solicitations that do not contain the provision at 52.204-7, Central Contractor Registration, or meet a condition at 4.605(c)(2).

(c) Insert the clause at 52.204-12, Data Universal Numbering System Number Maintenance, in solicitations and resulting contracts that contain the provision at 52.204-6, Data Universal Numbering System.

4.905 [Amended]

7. Amend section 4.905 by removing from paragraph (a) ``clause'' and adding ``provision'' in its place.

8. Amend section 4.1102 by--

a. Revising paragraph (a)(1);

b. Removing from paragraph (a)(3)(i) ``10 U.S.C. 2302(7); or'' and adding ``10 U.S.C. 2302(7);'' in its place;

c. Redesignating paragraph (a)(3)(ii) as paragraph (a)(3)(iii);

d. Adding a new paragraph (a)(3)(ii);

e. Redesignating paragraphs (a)(4) through (6) as paragraphs (a)(5) through (7);

f. Adding a new paragraph (a)(4);

g. Revising newly redesignated paragraph (a)(6);

h. Removing from paragraph (b) ``or (a)(4)''; and

i. Revising paragraph (c)(1)(ii).

The revisions and additions read as follows:

4.1102 Policy.

(a) * * *

(1) Purchases under the micro-purchase threshold that use a Governmentwide commercial purchase card as both the purchasing and payment mechanism, as opposed to using the purchase card for payment only;

* * * * *

(3) * * *

(ii) Contracting officers located outside the United States and its outlying areas, as defined in 2.101, for work to be performed in support of diplomatic or developmental operations, including those performed in support of foreign assistance programs overseas, in an area that has been designated by the Department of State as a danger pay post (see http://aoprals.state.gov/Web920/danger_pay_all.asp); or* * * * *

(4) Contracts with individuals for performance outside the United States and its outlying areas;

* * * * *

(6) Contract actions at or below $25,000 awarded to foreign vendors for work performed outside the United States, if it is impractical to obtain CCR registration; and

* * * * *

(c)(1) * * *

(ii) If the contractor fails to comply with the requirements of paragraph (c)(1)(i) of the clause at 52.204-13, Central Contractor Registration Maintenance, or fails to perform the agreement at 52.204-13, paragraph (c)(1)(i)(C), and, in the absence of a properly executed novation or change-of-name agreement, the CCR information that shows the contractor to be other than the contractor indicated in the contract will be considered to be incorrect information within the meaning of the ``Suspension of Payment'' paragraph of the EFT clause of the contract.

* * * * *

9. Amend section 4.1103 by--

a. Removing paragraph (a)(2)(ii) and redesignating paragraph (a)(2)(iii) as paragraph (a)(2)(ii);

b. Removing from paragraph (a)(3) ``clause at 52.204-7, or 52.212-4(t)'' and adding ``provision at 52.204-7, or the clause at 52.212-4'' in its place;

c. Removing from paragraph (b)(2) ``officer.'' and adding ``officer; or'' in its place; and

d. Adding paragraph (b)(3) to read as follows:

4.1103 Procedures.

* * * * *

(b) * * *

(3) If the contract action is being awarded pursuant to 6.302-2, the contractor must be registered in CCR within 30 days after contract award, or at least three days prior to submission of the first invoice, whichever occurs first.

* * * * *

10. Revise section 4.1105 to read as follows:

4.1105 Solicitation provision and contract clauses.

(a)(1) Except as provided in 4.1102(a), use the provision at 52.204-7, Central Contractor Registration, in solicitations.

(2) If the solicitation is anticipated to be awarded in accordance with 4.1102(a)(5), the contracting officer shall use the provision at 52.204-7, Central Contractor Registration, with its Alternate I.

(b) Insert the clause at 52.204-13, Central Contractor Registration Maintenance, in solicitations that contain the provision at 52.204-7, and resulting contracts.

11. Amend section 4.1202 by revising the introductory text to read as follows:

4.1202 Solicitation provision and contract clause.

Except for commercial item solicitations issued under FAR part 12, insert in solicitations the provision at 52.204-8, Annual Representations and Certifications. The contracting officer shall check the applicable provisions at 52.204-8(c)(2). When the provision at 52.204-7, Central Contract Registration, is included in the solicitation, do not include the following representations and certifications:

* * * * *

4.1402 [Amended]

12. Amend section 4.1402 by removing from paragraph (b) ``FAR 4.605(b)(2)'' and adding ``FAR 4.605(c)(2)'' in its place.

PART 13--SIMPLIFIED ACQUISITION PROCEDURES

13.201 [Amended]

13. Amend section 13.201 by removing from paragraph (d) ``4.1105 and''.

PART 19--SMALL BUSINESS PROGRAMS

14. Amend section 19.708 by revising paragraph (b)(1)(iii) to read as follows:

19.708 Contract clauses.

* * * * *

(b)(1) * * *

(iii) The contract action will not be reported in the Federal Procurement Data System pursuant to 4.606(c)(5) or (c)(6), the contracting officer shall use the clause with its Alternate III.

* * * * *

PART 32--CONTRACT FINANCING

32.1110 [Amended]

15. Amend section 32.1110 by removing from both paragraph (a)(1) introductory text and paragraph (a)(2)(i) the words ``clause at'' and adding ``provision at'' in their places.

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

52.204-5 [Amended]

16. Amend section 52.204-5 by removing from the introductory text ``4.607(b)'' and adding ``4.607(a)'' in its place.

17. Amend section 52.204-6 by--

a. Revising the section heading, introductory text, and the provision heading;

b. Redesignating paragraphs (a) and (b) as paragraphs (b) and (c), respectively; and

c. Adding a new paragraph (a) to read as follows:

52.204-6 Data Universal Numbering System Number.

As prescribed in 4.607(b), insert the following provision:

Data Universal Numbering System Number (DEC 2012)

(a) Definition. Data Universal Numbering System (DUNS) number, as used in this provision, means the 9-digit number assigned by Dun and Bradstreet, Inc. (D&B) to identify unique business entities, which is used as the identification number for Federal Contractors.

* * * * *

18. Amend section 52.204-7 by--

a. Revising the introductory text and the provision heading;

b. Removing from the introductory text of paragraph (a) ``this clause'' and adding ``this provision'' in its place;

c. In paragraph (a), removing from paragraphs (1) and (2) in the definition for ``Registered in the CCR database'' in the words ``The Contractor'' and adding ``The offeror'' in their places;

d. Removing paragraphs (f) and (g);

e. Redesignating paragraph (h) as (f);

f. Revising the newly redesignated paragraph (f); and

g. Adding Alternate I.

The revision and addition read as follows:

52.204-7 Central Contractor Registration.

As prescribed in 4.1105(a)(1), use the following provision.

Central Contractor Registration (DEC 2012)

* * * * *

(f) Offerors may obtain information on registration at https://www.acquisition.gov.

(End of provision)

Alternate I (Dec 2012). As prescribed in 4.1105(a)(2), substitute the following paragraph (b)(1) for paragraph (b)(1) of the basic provision:

(b)(1) By submission of an offer, the offeror acknowledges the requirement that a prospective awardee shall be registered in the CCR database prior to award, during performance, and through final payment of any contract, basic agreement, basic ordering agreement, or blanket purchasing agreement resulting from this solicitation. If registration prior to award is not possible, the awardee shall be registered in the CCR database within 30 days after award or before three days prior to submission of the first invoice, whichever occurs first.

19. Add section 52.204-12 to read as follows:

52.204-12 Data Universal Numbering System Number Maintenance.

As prescribed in 4.607(c), insert the following clause:

Data Universal Numbering System Number Maintenance (DEC 2012)

(a) Definition. Data Universal Numbering System (DUNS) number, as used in this clause, means the 9-digit number assigned by Dun and Bradstreet, Inc. (D&B) to identify unique business entities, which is used as the identification number for Federal Contractors.

(b) The Contractor shall ensure that the DUNS number is maintained with Dun & Bradstreet throughout the life of the contract. The Contractor shall communicate any change to the DUNS number to the Contracting Officer within 30 days after the change, so an appropriate modification can be issued to update the data on the contract. A change in the DUNS number does not necessarily require a novation be accomplished. Dun & Bradstreet may be contacted--

(1) Via the internet at http://fedgov.dnb.com/webform or if the Contractor does not have internet access, it may call Dun and Bradstreet at 1-866-705-5711 if located within the United States; or

(2) If located outside the United States, by contacting the local Dun and Bradstreet office.

(End of clause)

20. Add section 52.204-13 to read as follows:

52.204-13 Central Contractor Registration Maintenance.

As prescribed in 4.1105(b), use the following clause:

Central Contractor Registration Maintenance (DEC 2012)

(a) Definitions. As used in this clause--

Central Contractor Registration (CCR) database means the primary Government repository for Contractor information required for the conduct of business with the Government.

Data Universal Numbering System (DUNS) number means the 9-digit number assigned by Dun and Bradstreet, Inc. (D&B) to identify unique business entities, which is used as the identification number for Federal Contractors.

Data Universal Numbering System+4 (DUNS+4) number means the DUNS number assigned by D&B plus a 4-character suffix that may be assigned by a business concern. (D&B has no affiliation with this 4-character suffix.) This 4-character suffix may be assigned at the discretion of the business concern to establish additional CCR records for identifying alternative Electronic Funds Transfer (EFT) accounts (see the FAR at subpart 32.11) for the same concern.

Registered in the CCR database means that--

(1) The Contractor has entered all mandatory information, including the DUNS number or the DUNS+4 number, into the CCR database; and

(2) The Government has validated all mandatory data fields, to include validation of the Taxpayer Identification Number (TIN) with the Internal Revenue Service (IRS), and has marked the record ``Active''. The Contractor will be required to provide consent for TIN validation to the Government as a part of the CCR registration process.

(b) The Contractor is responsible for the accuracy and completeness of the data within the CCR database, and for any liability resulting from the Government's reliance on inaccurate or incomplete data. To remain registered in the CCR database after the initial registration, the Contractor is required to review and update on an annual basis, from the date of initial registration or subsequent updates, its information in the CCR database to ensure it is current, accurate and complete. Updating information in the CCR does not alter the terms and conditions of this contract and is not a substitute for a properly executed contractual document.

(c)(1)(i) If a Contractor has legally changed its business name, doing business as name, or division name (whichever is shown on the contract), or has transferred the assets used in performing the contract, but has not completed the necessary requirements regarding novation and change-of-name agreements in subpart 42.12, the Contractor shall provide the responsible Contracting Officer a minimum of one business day's written notification of its intention to--

(A) Change the name in the CCR database;

(B) Comply with the requirements of subpart 42.12 of the FAR; and

(C) Agree in writing to the timeline and procedures specified by the responsible Contracting Officer. The Contractor shall provide with the notification sufficient documentation to support the legally changed name.

(ii) If the Contractor fails to comply with the requirements of paragraph (c)(1)(i) of this clause, or fails to perform the agreement at paragraph (c)(1)(i)(C) of this clause, and, in the absence of a properly executed novation or change-of-name agreement, the CCR information that shows the Contractor to be other than the Contractor indicated in the contract will be considered to be incorrect information within the meaning of the ``Suspension of Payment'' paragraph of the electronic funds transfer (EFT) clause of this contract.

(2) The Contractor shall not change the name or address for EFT payments or manual payments, as appropriate, in the CCR record to reflect an assignee for the purpose of assignment of claims (see FAR subpart 32.8, Assignment of Claims). Assignees shall be separately registered in the CCR database. Information provided to the Contractor's CCR record that indicates payments, including those made by EFT, to an ultimate recipient other than that Contractor will be considered to be incorrect information within the meaning of the ``Suspension of Payment'' paragraph of the EFT clause of this contract.

(3) The Contractor shall ensure that the DUNS number is maintained with Dun & Bradstreet throughout the life of the contract. The Contractor shall communicate any change to the DUNS number to the Contracting Officer within 30 days after the change, so an appropriate modification can be issued to update the data on the contract. A change in the DUNS number does not necessarily require a novation be accomplished. Dun & Bradstreet may be contacted--

(i) Via the internet at http://fedgov.dnb.com/webform or if the Contractor does not have internet access, it may call Dun and Bradstreet at 1-866-705-5711 if located within the United States; or

(ii) If located outside the United States, by contacting the local Dun and Bradstreet office.

(d) Contractors may obtain additional information on registration and annual confirmation requirements at https://www.acquisition.gov.

(End of clause)

[FR Doc. 2012-27904 Filed 11-19-12; 8:45 am]

BILLING CODE 6820-EP-P

-----------------------------------------------------------------------

[Federal Register Volume 77, Number 224 (Tuesday, November 20, 2012)]

[Rules and Regulations]

From the Federal Register Online via the Government Printing Office [www.gpo.gov]

[FR Doc No: 2012-27905]

-----------------------------------------------------------------------

DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 4 and 17

[FAC 2005-62; FAR Case 2012-010; Item II; Docket 2012-0010, Sequence 01]

RIN 9000-AM36

Federal Acquisition Regulation; Interagency Acquisitions: Compliance by Nondefense Agencies With Defense Procurement Requirements

AGENCY: Department of Defense (DoD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Interim rule.

-----------------------------------------------------------------------

SUMMARY: DoD, GSA, and NASA are issuing an interim rule amending the Federal Acquisition Regulation (FAR) to add new requirements specific to the acquisition of supplies and services by nondefense agencies on behalf of the DoD. This rule implements a section of the National Defense Authorization Act for Fiscal Year 2008, with later amendments.

DATES: Effective date: November 20, 2012.

Comment date: Interested parties should submit written comments to the Regulatory Secretariat on or before January 22, 2013 to be considered in the formation of a final rule.

ADDRESSES: Submit comments identified by FAC 2005-62, FAR Case 2012-010, by any of the following methods:

Regulations.gov: http://www.regulations.gov.

Submit comments via the Federal eRulemaking portal by searching for ``FAR Case 2012-010''. Select the link ``Submit a Comment'' that corresponds with ``FAR Case 2012-010.'' Follow the instructions provided at the ``Submit a Comment'' screen. Please include your name, company name (if any), and ``FAR Case 2012-010'' on your attached document.

Fax: 202-501-4067.

Mail: General Services Administration, Regulatory Secretariat (MCVB), ATTN: Hada Flowers, 1275 First Street NE., 7th Floor, Washington, DC 20417.

Instructions: Please submit comments only and cite FAC 2005-62, FAR Case 2012-010 in all correspondence related to this case. All comments received will be posted without change to http://www.regulations.gov, including any personal and/or business confidential information provided.

FOR FURTHER INFORMATION CONTACT: Ms. Patricia Corrigan, Procurement Analyst, at 202-208-1963 for clarification of content. For information pertaining to status or publication schedules, contact the Regulatory 010.

SUPPLEMENTARY INFORMATION:

I. Background

DoD, GSA, and NASA are publishing this interim rule amending the FAR to implement the requirements of section 801 of the National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2008 (Pub. L. 110-181), as amended, (10 U.S.C. 2304 note).

Section 801 of the NDAA for FY 2008, titled ``Internal Controls for Procurement on Behalf of the Department of Defense by Certain Nondefense Agencies,'' defines in general terms the ``procurement policies, procedures, and internal controls'' that constitute compliance with defense procurement requirements by a nondefense agency when it procures supplies and services on behalf of the DoD. Section 801(b) states, in part, that unless waived, a DoD acquisition official may place an order, make a purchase, or otherwise procure property or services for DoD in excess of the simplified acquisition threshold through a nondefense agency only if the nondefense agency conducting the acquisition on DoD's behalf has certified that it will comply with defense procurement requirements for that fiscal year.

Section 804 of the Duncan Hunter NDAA for FY 2009 (Pub. L. 110-417) amended the list of covered nondefense agencies established in previous NDAAs, and established deadlines for reviews of covered nondefense agencies. (The term ``covered nondefense agency'' is included in the definition of nondefense agencies of section 801 of the NDAA for FY 2008.)

Section 806 of the NDAA for FY 2010 (Pub. L. 111-84), titled ``Treatment of Nondefense Agency Procurements Under Joint Programs with Intelligence Community,'' amended section 801(b) of the NDAA for FY 2008 by authorizing exclusions from section 801 internal control limitations for contracts entered into under joint programs for DoD and non-DoD elements of the intelligence community.

Section 817 of the NDAA for FY 2012 (Pub. L. 112-81), titled ``Compliance with Defense Procurement Requirements for Purposes of Internal Controls of Nondefense Agencies for Procurements of Behalf of the Department of Defense,'' amended section 801(d) of the NDAA for FY 2008 (10 U.S.C. 2304 note) to provide clarifying language that identifies the types of laws and regulations with which nondefense departments and agencies must comply when procuring supplies and services on behalf of DoD. Specifically, section 817 clarifies that the nondefense agency certification of ``compliance with defense procurement requirements'' for a given fiscal year means compliance with (1) the FAR and other laws and regulations that apply to procurements of property and services by Federal agencies, and (2) laws and regulations (including DoD financial management regulations) that apply to procurements of property and services made by DoD through other Federal agencies.

This interim rule makes the following changes:

Clarifies FAR 4.603(c) regarding the allocation of socioeconomic credit to the requesting agency for assisted acquisitions.

Adds to FAR 17.500(a) a cross-reference to the new FAR subpart 17.7 for additional requirements for nondefense agencies when acquiring supplies and services on behalf of DoD;

Adds to FAR 17.502-1(b)(1)(i) a requirement for written confirmation by the requesting agency to the servicing agency in the event there are no agency unique requirements beyond the FAR that apply to an assisted acquisition.

Cross-references new FAR subpart 17.7, Interagency Acquisitions: Acquisitions by Nondefense Agencies on Behalf of the Department of Defense, at 17.502-1(b)(1)(i) related to assisted acquisitions.

Creates a new FAR subpart FAR 17.7 applicable to the acquisition of supplies and services by nondefense agencies on behalf of DoD.

Creates a new FAR section 17.700 identifying the scope of the subpart.

Creates a new FAR section 17.701 providing definitions specific to subpart 17.7.

Creates a new FAR section 17.702 establishing the subpart's applicability to all acquisitions made by nondefense agencies on behalf of DoD except for contracts for joint projects with DoD entered into by a nondefense agency that is an element of the intelligence community.

Creates a new FAR section 17.703, which establishes the policy related to internal controls and compliance certification under which nondefense agencies may procure supplies and services on behalf of DoD and identifies DoD acquisition official responsibilities when making acquisitions on behalf of DoD.

II. Executive Orders 12866 and 13563

Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess all costs and benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits (including potential economic, environmental, public health and safety effects, distributive impacts, and equity). E.O. 13563 emphasizes the importance of quantifying both costs and benefits, of reducing costs, of harmonizing rules, and of promoting flexibility.

This is not a significant regulatory action and, therefore, was not subject to review under Section 6(b) of E.O. 12866, Regulatory Planning and Review, dated September 30, 1993. This rule is not a major rule under 5 U.S.C. 804.

III. Regulatory Flexibility Act

DoD, GSA, and NASA do not expect this 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. Nevertheless, an Initial Regulatory Flexibility Analysis (IRFA) has been prepared and is summarized as follows.

Section 801 of the NDAA for FY 2008 (Pub. L. 110-181), section 806 of the NDAA for FY 2010 (Pub. L. 111-84), and section 817 of the NDAA for FY 2012 (Pub. L. 112-81) address requirements specific to the acquisition of supplies and services by nondefense agencies on behalf of DoD, and are, therefore, internal to the Government. However, this case also adds a clarification at FAR 4.603(c), restating existing Office of Federal Procurement Policy (OFPP) and Federal Procurement Data System (FPDS) policy regarding the allocation of socioeconomic credit for interagency acquisitions. Although DoD, GSA, and NASA do not expect the clarification to have a direct economic impact on a substantial number of small entities, there is the possibility that the regulatory clarification may improve the accuracy of FPDS data submissions related to the allocation of socioeconomic credit to agencies for contracts and orders awarded to a substantial number of small entities. Improved data accuracy can have a positive impact on agencies' annual small business goals.

The Regulatory Secretariat has submitted a copy of the IRFA to the Chief Counsel for Advocacy of the Small Business Administration. A copy of the IRFA may be obtained from the Regulatory Secretariat. DoD, GSA, and NASA invite comments from small business concerns and other interested parties on the expected impact of this rule on small entities.

DoD, GSA, and NASA will also consider comments from small entities concerning the existing regulations in subparts affected by this rule consistent with 5 U.S.C. 610. Interested parties must submit such comments separately and should cite 5 U.S.C. 610 (FAC 2005-62, FAR Case 2012-010) in correspondence.

IV. Paperwork Reduction Act

The interim rule does not contain any information collection requirements that require the approval of the Office of Management and Budget under the Paperwork Reduction Act (44 U.S.C. Chapter 35).

V. Determination To Issue an Interim Rule

Pursuant to the Office of Federal Procurement Policy (OFPP) Reauthorization Act, the Secretary of Defense, the Administrator of General Services, and the Administrator of NASA have determined that urgent and compelling reasons exist to promulgate this interim rule without prior opportunity for public comment. This action is necessary because the NDAA for FY 2012 (Pub. L. 112-81) was enacted on December 31, 2011, and was effective upon enactment. Recognizing this, the FAR Principals opened FAR Case 2012-010 on January 19, 2012. Section 817 of the NDAA for FY 2012 amended section 801(d) of the NDAA for FY 2008 (10 U.S.C. 2304 note) to provide necessary clarifying language that identifies the types of laws and regulations with which nondefense departments and agencies must comply when procuring supplies and services on behalf of DoD. Specifically, section 817 clarifies that the nondefense agency certification of ``compliance with defense procurement requirements'' for a given fiscal year means compliance with (1) the FAR and other laws and regulations that apply to procurements of property and services by Federal agencies, and (2) laws and regulations (including DoD financial management regulations) that apply to procurements of property and services made by DoD through other Federal agencies. If this rule, which also informs nondefense agencies regarding their responsibilities when buying on behalf of DoD, is not implemented as an interim rule, it will negatively impact the accuracy and completeness of nondefense agency certifications for fiscal year 2013.

Every effort has been made to process this FAR requirement in an expeditious manner. Processing this rule as an interim rule, with an immediate effective date, will ensure that nondefense agencies conducting acquisitions on behalf of DoD are fully informed of DoD expectations and their responsibilities when nondefense agency senior management completes the statutorily-mandated certifications for fiscal year 2013. This requirement does not directly impact the public and is purely an administrative FAR change that affects Government agencies that conduct acquisitions on behalf of DoD.

However, pursuant to 41 U.S.C. 1707 and FAR 1.501-3(b), DoD, GSA, and NASA will consider public comments received in response to this interim rule in the formation of the final rule.

List of Subjects in 48 CFR Parts 4 and 17

Government procurement.

Dated: November 9, 2012.

Laura Auletta,

Director, Office of Governmentwide Acquisition Policy, Office of Acquisition Policy, Office of Governmentwide Policy.

Therefore, DoD, GSA, and NASA amend 48 CFR parts 4 and 17 as set forth below:

1. The authority citation for 48 CFR parts 4 and 17 is revised to read as follows:

Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 51 U.S.C. 20113.

PART 4--ADMINISTRATIVE MATTERS

2. Amend section 4.603 by adding two sentences to the end of paragraph (c) to read as follows:

4.603 Policy.

* * * * *

(c) * * * For assisted acquisitions, the requesting agency will receive socioeconomic credit for meeting agency small business goals, where applicable. Requesting agencies shall provide the appropriate agency/bureau component code as part of the written interagency agreement between the requesting and servicing agencies (see 17.502-1(b)(1)).

* * * * *

PART 17--SPECIAL CONTRACTING METHODS

3. Amend section 17.500 by adding a new sentence to the end of paragraph (a) to read as follows:

17.500 Scope of subpart.

(a) * * * In addition to complying with the interagency acquisition policy and procedures in this subpart, nondefense agencies acquiring supplies and services on behalf of the Department of Defense shall also comply with the policy and procedures at subpart 17.7.

* * * * *

4. Amend section 17.502-1 by revising paragraph (b)(1)(i) to read as follows:

17.502-1 General.

* * * * *

(b) * * *

(1) * * *

(i) Prior to the issuance of a solicitation, the servicing agency and the requesting agency shall both sign a written interagency agreement that establishes the general terms and conditions governing the relationship between the parties, including roles and responsibilities for acquisition planning, contract execution, and administration and management of the contract(s) or order(s). The requesting agency shall provide to the servicing agency any unique terms, conditions, and applicable agency-specific statutes, regulations, directives, and other applicable requirements for incorporation into the order or contract. In the event there are no agency unique requirements beyond the FAR, the requesting agency shall so inform the servicing agency contracting officer in writing. For acquisitions on behalf of the Department of Defense, also see subpart 17.7. For patent rights, see 27.304-2. In preparing interagency agreements to support assisted acquisitions, agencies should review the Office of Federal Procurement Policy guidance, Interagency Acquisitions, available at http://www.whitehouse.gov/omb/assets/procurement/iac_revised.pdf.

* * * * *

5. Add Subpart 17.7 to read as follows:

Subpart 17.7--Interagency Acquisitions: Acquisitions by Nondefense Agencies on Behalf of the Department of Defense

Sec.

17.700 Scope of subpart.

17.701 Definitions.

17.702 Applicability.

17.703 Policy.

Subpart 17.7--Interagency Acquisitions: Acquisitions by Nondefense Agencies on Behalf of the Department of Defense

17.700 Scope of subpart.

(a) Compliance with this subpart is in addition to the policies and procedures for interagency acquisitions set forth in subpart 17.5. This subpart prescribes policies and procedures specific to acquisitions of supplies and services by nondefense agencies on behalf of the Department of Defense (DoD).

(b) This subpart implements Public Law 110-181, section 801, as amended (10 U.S.C. 2304 Note).

17.701 Definitions.

As used in this subpart--

Department of Defense (DoD) acquisition official means--

(1) A DoD contracting officer; or

(2) Any other DoD official authorized to approve a direct acquisition or an assisted acquisition on behalf of DoD.

Nondefense agency means any department or agency of the Federal Government other than the Department of Defense.

Nondefense agency that is an element of the intelligence community means the agencies identified in 50 U.S.C. 401a(4), which include the--

(1) Office of the Director of National Intelligence;

(2) Central Intelligence Agency;

(3) Intelligence elements of the Federal Bureau of Investigation, Department of Energy, and Drug Enforcement Agency;

(4) Bureau of Intelligence and Research of the Department of State;

(5) Office of Intelligence and Analysis of the Department of the Treasury;

(6) The Office of Intelligence and Analysis of the Department of Homeland Security and the Office of Intelligence of the Coast Guard; and

(7) Such other elements of any department or agency as have been designated by the President, or designated jointly by the Director of National Intelligence and the head of the department or agency concerned, as an element of the intelligence community.

17.702 Applicability.

This subpart applies to all acquisitions made by nondefense agencies on behalf of DoD. It does not apply to contracts entered into by a nondefense agency that is an element of the intelligence community for the performance of a joint program conducted to meet the needs of DoD and the nondefense agency.

17.703 Policy.

(a) A DoD acquisition official may request a nondefense agency to conduct an acquisition on behalf of DoD in excess of the simplified acquisition threshold only if the head of the nondefense agency conducting the acquisition on DoD's behalf has certified that the agency will comply with defense procurement requirements for that fiscal year except when waived in accordance with paragraph (e) of this section.

(b) A nondefense agency is compliant with defense procurement requirements if the procurement policies, procedures, and internal controls of the nondefense agency applicable to the procurement of supplies and services on behalf of DoD, and the manner in which they are administered, are adequate to ensure the compliance of the nondefense department or agency with--

(1) The Federal Acquisition Regulation and other laws and regulations that apply to procurements of supplies and services by Federal agencies; and

(2) Laws and regulations that apply to procurements of supplies and services made by DoD through other Federal agencies, including DoD financial management regulations, the Defense Federal Acquisition Regulation Supplement (DFARS), and the DFARS Procedures, Guidance, and Information (PGI). (The DFARS and PGIs are accessible at: http://www.acq.osd.mil/dpap/).

(c) Within 30 days of the beginning of each fiscal year, submit nondefense agency certifications of compliance to the Director, Defense Procurement and Acquisition Policy, Department of Defense, 3060 Defense Pentagon, Washington DC 20301-3060.

(d) The DoD acquisition official, as defined at 17.701, shall provide to the servicing nondefense agency contracting officer any DoD-unique terms, conditions, other related statutes, regulations, directives, and other applicable requirements for incorporation into the order or contract. In the event there are no DoD-unique requirements beyond the FAR, the DoD acquisition official shall so inform the servicing nondefense agency contracting officer in writing. Nondefense agency contracting officers are responsible for ensuring support provided in response to DoD's request complies with paragraph (b) of this section.

(e) Waiver. The limitation in paragraph (a) of this section shall not apply to the acquisition of supplies and services on behalf of DoD by a nondefense agency during any fiscal year for which the Under Secretary of Defense for Acquisition, Technology, and Logistics has determined in writing that it is necessary in the interest of DoD to acquire supplies and services through the nondefense agency during the fiscal year. The written determination shall identify the acquisition categories to which the waiver applies.

(f) Nondefense agency certifications, waivers, and additional information are available at http://www.acq.osd.mil/dpap/cpic/cp/interagency_acquisition.html.

[FR Doc. 2012-27905 Filed 11-19-12; 8:45 am]

BILLING CODE 6820-EP-P

-----------------------------------------------------------------------

[Federal Register Volume 77, Number 224 (Tuesday, November 20, 2012)]

[Rules and Regulations]

From the Federal Register Online via the Government Printing Office [www.gpo.gov]

[FR Doc No: 2012-27906]

-----------------------------------------------------------------------

DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 25 and 52

[FAC 2005-62; FAR Case 2012-027; Item III; Docket 2012-0027, Sequence 01]

RIN 9000-AM43

Federal Acquisition Regulation; Free Trade Agreement--Panama

AGENCIES: Department of Defense (DoD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Interim rule.

-----------------------------------------------------------------------

SUMMARY: DoD, GSA, and NASA are issuing an interim rule amending the Federal Acquisition Regulation (FAR) to implement the United States--Panama Trade Promotion Agreement. This Trade Promotion Agreement is a free trade agreement that provides for mutually non-discriminatory treatment of eligible products and services from Panama.

DATES: Effective date: November 20, 2012.

Comment date: Interested parties should submit written comments to the Regulatory Secretariat on or before January 22, 2013 to be considered in the formulation of a final rule.

ADDRESSES: Submit comments identified by FAC 2005-62, FAR Case 2012-027, by any of the following methods:

Regulations.gov: http://www.regulations.gov. Submit

comments via the Federal eRulemaking portal by searching for ``FAR Case 2012-027''. Select the link ``Submit a Comment'' that corresponds with ``FAR Case 2012-027.'' Follow the instructions provided at the ``Submit a Comment'' screen. Please include your name, company name (if any), and ``FAR Case 2012-027'' on your attached document.

Fax: 202-501-4067.

Mail: General Services Administration, Regulatory Secretariat (MVCB), ATTN: Hada Flowers, 1275 First Street NE., 7th Floor, Washington, DC 20417.

Instructions: Please submit comments only and cite FAC 2005-62, FAR Case 2012-027, in all correspondence related to this case. All comments received will be posted without change to http://www.regulations.gov, including any personal and/or business confidential information provided.

FOR FURTHER INFORMATION CONTACT: Ms. Cecelia L. Davis, Procurement Analyst, at 202-219-0202, for clarification of content. For information pertaining to status or publication schedules, contact the Regulatory Secretariat at 202-501-4755. Please cite FAC 2005-62, FAR Case 2012-027.

SUPPLEMENTARY INFORMATION:

I. Background

DoD, GSA, and NASA are issuing an interim rule amending FAR part 25 and the corresponding provisions and clauses in part 52 to implement the United States--Panama Trade Promotion Agreement Implementation Act (Pub. L. 112-43) (19 U.S.C. 3805 note).

This Trade Promotion Agreement is designated in the FAR as the Panama Free Trade Agreement (FTA). This FTA provides for--

Waiver of the applicability of the Buy American statute (41 U.S.C. chapter 83) for some foreign supplies and construction materials from Panama; and

Applicability of specified procurement procedures designed to ensure fairness in the acquisition of supplies and services (see FAR 25.408).

II. Discussion and Analysis

This interim rule adds Panama to the definition of ``Free Trade Agreement country'' in multiple locations in the FAR.

The Panama FTA covers acquisitions of supplies and services equal to or exceeding $202,000. The threshold for the Panama FTA is $7,777,000 for construction contracts. The Panama FTA threshold for supplies and services is higher than the threshold for supplies and services for most of the FTAs ($77,494), and equals the Bahrain, Morocco, Oman, and Peru FTA thresholds for supplies and services ($202,000). The excluded services for the Panama FTA are the same as for the Bahrain FTA, Dominican Republic--Central American FTA, Colombia FTA, Chile FTA, NAFTA, Oman FTA, and Peru FTA.

III. Executive Order 12866 and 13563

Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess all costs and benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits (including potential economic, environmental, public health and safety effects, distributive impacts, and equity). E.O. 13563 emphasizes the importance of quantifying both costs and benefits, of reducing costs, of harmonizing rules, and of promoting flexibility. This is a significant regulatory action and, therefore, was subject to review under section 6(b) of E.O. 12866, Regulatory Planning and Review, dated September 30, 1993. This rule is not a major rule under 5 U.S.C. 804.

IV. Regulatory Flexibility Act

The Department of Defense, the General Services Administration, and the National Aeronautics and Space Administration 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. Although the rule now opens up Government procurement to the goods and services of Panama, DoD, GSA, and NASA do not anticipate any significant economic impact on U.S. small businesses. The Department of Defense only applies the trade agreements to the non-defense items listed at Defense Federal Acquisition Regulation Supplement (DFARS) 225.401-70, and acquisitions that are set aside or provide other form of preference for small businesses are exempt. FAR 19.502-2 states that acquisitions of supplies or services with an anticipated dollar value between $3,000 and $150,000 (with some exceptions) are automatically reserved for small business concerns.

Therefore, an Initial Regulatory Flexibility Analysis has not been performed. DoD, GSA, and NASA invite comments from small business concerns and other interested parties on the expected impact of this rule on small entities.

DoD, GSA, and NASA will also consider comments from small entities concerning the existing regulations in subparts affected by the rule in accordance with 5 U.S.C. 610. Interested parties must submit such comments separately and should cite 5 U.S.C 610 (FAC 2005-62, FAR Case 2012-027), in correspondence.

V. Paperwork Reduction Act

The Paperwork Reduction Act (44 U.S.C. chapter 35) does apply, because the interim rule affects the certification and information collection requirements in the provisions at FAR 52.212-3, 52.225-4, 52.225-6 and 52.225-11 currently approved under the Office of Management and Budget Control Numbers 9000-0136, titled: Commercial Item Acquisition, 9000-0130, titled: Buy American Act--Free Trade Agreements--Israeli Trade Act Certificate, 9000-0025, titled: Trade Agreements Certificate, and 9000-0141, titled: Buy American--Construction, respectively. The impact, however, is negligible because it is just a question of which category offered goods from Panama would be listed under.

VI. Determination To Issue an Interim Rule

A determination has been made under the authority of the Secretary of Defense (DoD), the Administrator of General Services (GSA), and the Administrator of the National Aeronautics and Space Administration (NASA) that urgent and compelling reasons exist to promulgate this interim rule without prior opportunity for public comment. This action is necessary because the effective date of the Free Trade Agreement with Panama is October 31, 2012. This is a reciprocal agreement, approved by Congress and the President of the United States. It is important for the United States Government to honor its new trade obligations to Panama, as Panama in turn honors its new trade obligations to the United States. However, pursuant to 41 U.S.C. 1707 and FAR 1.501-3(b), DoD, GSA, and NASA will consider public comments received in response to this interim rule in the formation of the final rule.

List of Subjects in 48 CFR Parts 25 and 52.

Government procurement.

Dated: November 9, 2012.

Laura Auletta,

Director, Office of Governmentwide Acquisition Policy, Office of Acquisition Policy, Office of Governmentwide Policy.

Therefore, DoD, GSA, and NASA amend 48 CFR parts 25 and 52 as set forth below:

1. The authority citation for 48 CFR parts 25 and 52 is revised to read as follows:

Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 51 U.S.C. 20113.

PART 25--FOREIGN ACQUISITION

25.003 [Amended]

2. Amend section 25.003 by removing from both the definition of ``Designated country'' in paragraph (2), and the definition of ``Free Trade Agreement country'' the words ``Oman, Peru,'' and adding ``Oman, Panama, Peru,'' in their place.

3. Amend section 25.400 by revising paragraphs (a)(2)(x) and (a)(2)(xi); and adding paragraph (a)(2)(xii) to read as follows:

Sec. 25.400 Scope of subpart.

(a) * * *

(2) * * *

(x) Korea FTA (the United States-Korea Free Trade Agreement Implementation Act (Pub. L. 112-41) (19 U.S.C 3805 note));

(xi) Colombia FTA (the United States-Colombia Trade Promotion Agreement Implementation Act (Pub. L. 112-42) (19 U.S.C. 3805 note)); and

(xii) Panama FTA (the United States-Panama Trade Promotion Agreement Implementation Act (Pub. L. 112-43) (19 U.S.C. 3805 note));

* * * * *

Sec. 25.401 [Amended]

4. Amend section 25.401 by removing from paragraph (b), in the table, in the heading, ``Oman FTA, and Peru FTA'' and adding ``Oman FTA, Panama FTA, and Peru FTA'' in its place.

5. Amend section 25.402 by revising the table in paragraph (b) to read as follows:

Sec. 25.402 General.

* * * * *

(b) * * *

Trade agreement

Supply contract (equal to or exceeding)

Service contract (equal to or exceeding)

Construction contract (equal to or exceeding)

WTO GPA

$202,000

$202,000

$7,777,00

FTAs:

     

Australia FTA

77,949

77,949

7,777,000

Bahrain FTA

202,000

202,000

10,074,262

CAFTA-DR (Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua)

77,494

77,494

7,777,000

Chile FTA

77,494

77,494

7,777,000

Colombia FTA

77,494

77,494

7,777,000

Korea FTA

100,000

100,000

7,777,000

Morocco FTA

$202,000

$202,000

$7,777,00

NAFTA:

     

Canada

25,000

77,494

10,074,262

Mexico

77,494

77,494

10,074,262

Oman FTA.

202,000

202,000

10,074,262

Panama FTA

202,000

202,000

7,777,000

Peru FTA

202,000

202,000

7,777,000

Singapore FTA

77,494

77,494

7,777,000

Israeli Trade Act

50,000

----------------------------------------------------------------------------------------------------------------

* * * * *

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

6. Amend section 52.212-3 by revising the date of the provision; and paragraphs (g)(1)(i), (g)(1)(ii), and (g)(4) to read as follows:

52.212-3 Offeror Representations and Certifications--Commercial Items.

* * * * *

Offeror Representations and Certifications--Commercial Items (NOV 2012)

* * * * *

(g)(1) Buy American Act--Free Trade Agreements--Israeli Trade Act Certificate. (Applies only if the clause at FAR 52.225-3, Buy American Act--Free Trade Agreements--Israeli Trade Act, is included in this solicitation.)

(i) The offeror certifies that each end product, except those listed in paragraph (g)(1)(ii) or (g)(1)(iii) of this provision, is a domestic end product and that for other than COTS items, the offeror has considered components of unknown origin to have been mined, produced, or manufactured outside the United States. The terms ``Bahrainian, Moroccan, Omani, Panamanian, or Peruvian end product,'' ``commercially available off-the-shelf (COTS) item,'' ``component,'' ``domestic end product,'' ``end product,'' ``foreign end product,'' ``Free Trade Agreement country,'' ``Free Trade Agreement country end product,'' ``Israeli end product,'' and ``United States'' are defined in the clause of this solicitation entitled ``Buy American Act--Free Trade Agreements--Israeli Trade Act.''

(ii) The offeror certifies that the following supplies are Free Trade Agreement country end products (other than Bahrainian, Moroccan, Omani, Panamanian, or Peruvian end products) or Israeli end products as defined in the clause of this solicitation entitled ``Buy American Act--Free Trade Agreements--Israeli Trade Act'':

Free Trade Agreement Country End Products (Other than Bahrainian, Moroccan, Omani, Panamanian, or Peruvian End Products) or Israeli End Products:

Line Item No. Country of Origin

---------------------------------------- ---------------------------

----------------------------------------- ---------------------------

----------------------------------------- ---------------------------

[List as necessary]

* * * * *

(g)(4) Buy American Act--Free Trade Agreements--Israeli Trade Act Certificate, Alternate III. If Alternate III to the clause at FAR 52.225-3 is included in this solicitation, substitute the following paragraph (g)(1)(ii) for paragraph (g)(1)(ii) of the basic provision:

(g)(1)(ii) The offeror certifies that the following supplies are Free Trade Agreement country end products (other than Bahrainian, Korean, Moroccan, Omani, Panamanian, or Peruvian end products) or Israeli end products as defined in the clause of this solicitation entitled ``Buy American Act--Free Trade Agreements--Israeli Trade Act'':

Free Trade Agreement Country End Products (Other than Bahrainian, Korean, Moroccan, Omani, Panamanian, or Peruvian End Products) or Israeli End Products:

Line Item No. Country of Origin

----------------------------------------- ---------------------------

----------------------------------------- ---------------------------

----------------------------------------- ---------------------------

[List as necessary]

* * * * *

7. Amend section 52.212-5 by revising the date of the clause and paragraphs (b)(40) and (b)(41) to read as follows:

52.212-5 Contract Terms and Conditions Required to Implement Statutes or Executive Orders--Commercial Items.

* * * * *

Contract Terms and Conditions Required To Implement Statutes or Executive Orders--Commercial Items (NOV 2012)

* * * * *

(b) * * *

(40)(i) 52.225-3, Buy American Act--Free Trade Agreements--Israeli Trade Act (NOV 2012) (41 U.S.C. chapter 83, 19 U.S.C. 3301 note, 19 U.S.C. 2112 note, 19 U.S.C. 3805 note, 19 U.S.C. 4001 note, Pub. L. 103-182, 108-77, 108-78, 108-286, 108-302, 109-53, 109-169, 109-283, 110-138, 112-41, 112-42, and 112-43).

(ii) Alternate I (MAR 2012) of 52.225-3.

(iii) Alternate II (MAR 2012) of 52.225-3.

(iv) Alternate III (NOV 2012) of 52.225-3.

(41) 52.225-5, Trade Agreements (NOV 2012) (19 U.S.C. 2501, et seq., 19 U.S.C. 3301 note).

* * * * *

8. Amend section 52.225-3 by--

a. Revising the date of the clause;

b. Revising the definitions in paragraph (a) of ``Bahrainian, Moroccan, Omani, or Peruvian end product'' and ``Free Trade Agreement country'';

c. Removing from paragraph (c) ``Oman, and Peru'' and ``Omani, or Peruvian'' (twice) and adding ``Oman, Panama, and Peru'' and ``Omani, Panamanian, or Peruvian'' (twice) in their places, respectively; and

d. Amending Alternate III by--

1. Revising the introductory text of Alternate III;

2. Revising the introductory paragraph of the definition of ``Bahrainian, Korean, Moroccan, Omani, or Peruvian end product'' and removing from paragraphs (1) and (2) ``Oman, or Peru'' and adding ``Oman, Panama, or Peru'' in its place; and

3. Removing from paragraph (c) ``Oman, and Peru'' and ``Omani, or Peruvian'' (twice) and adding ``Oman, Panama, and Peru'' and ``Omani, Panamanian, or Peruvian'' (twice) in their places, respectively.

The revised text reads as follows:

52.225-3 Buy American Act--Free Trade Agreements--Israeli Trade Act.

* * * * *

Buy American Act--Free Trade Agreement--Israeli Trade Act (NOV 2012)

(a) Definitions. As used in this clause--

Bahrainian, Moroccan, Omani, Panamanian, or Peruvian end product means an article that--

(1) Is wholly the growth, product, or manufacture of Bahrain, Morocco, Oman, Panama, or Peru; or

(2) In the case of an article that consists in whole or in part of materials from another country, has been substantially transformed in Bahrain, Morocco, Oman, Panama, or Peru into a new and different article of commerce with a name, character, or use distinct from that of the article or articles from which it was transformed. The term refers to a product offered for purchase under a supply contract, but for purposes of calculating the value of the end product includes services (except transportation services) incidental to the article, provided that the value of those incidental services does not exceed that of the article itself.

* * * * *

Free Trade Agreement country means Australia, Bahrain, Canada, Chile, Colombia, Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, Korea (Republic of), Mexico, Morocco, Nicaragua, Oman, Panama, Peru, or Singapore.

* * * * *

Alternate III (NOV 2012). As prescribed in 25.1101(b)(1)(iv), delete the definition of ``Bahrainian, Moroccan, Omani, Panamanian, or Peruvian end product'' and add in its place the following definition of ``Bahrainian, Korean, Moroccan, Omani, Panamanian, or Peruvian end product'' in paragraph (a) of the basic clause; and substitute the following paragraph (c) for paragraph (c) of the basic clause.

Bahrainian, Korean, Moroccan, Omani, Panamanian, or Peruvian end product means an article that--

* * * * *

9. Amend section 52.225-4 by--

a. Revising the date of the provision;

b. Removing once from paragraph (a) and twice from paragraph (b) ``Omani, or Peruvian'' and adding ``Omani, Panamanian, or Peruvian'' in its place; and

c. Revising the date of Alternate III; and removing twice from paragraph (b) ``Omani, or Peruvian'' and adding ``Omani, Panamanian, or Peruvian'' in their places.

The revised text reads as follows:

52.225-4 Buy American Act--Free Trade Agreements--Israeli Trade Act Certificate.

* * * * *

Buy American Act--Free Trade Agreements--Israeli Trade Act Certificate (NOV 2012)

* * * * *

10. Amend section 52.225-5 by--

a. Revising the date of the clause;

b. Removing from paragraph (a), in the definition of ``Designated country'' in paragraph (2), ``Oman, Peru,'' and adding ``Oman, Panama, Peru,'' in its place.

The revised text reads as follows:

52.225-5 Trade Agreements.

* * * * *

Trade Agreements (NOV 2012)

* * * * *

11. Amend section 52.225-11 by--

a. Revising the date of the clause;

b. Removing from paragraph (a), in the definition of ``Designated country'' in paragraph (2), ``Oman, Peru,'' and adding ``Oman, Panama, Peru,'' in its place; and

The revised text reads as follows:

52.225-11 Buy American Act--Construction Materials Under Trade Agreements.

* * * * *

Buy American Act--Construction Materials Under Trade Agreements (NOV 2012)

* * * * *

12. Amend section 52.225-23 by--

a. Revising the date of the clause; and

b. Removing from paragraph (a), in the definition of ``Designated country'' in paragraph (2), ``Oman, Peru,'' and adding ``Oman, Panama, Peru,'' in its place; and removing from the definition of ``Recovery Act designated country'' in paragraph (2) ``Oman, Peru,'' and adding ``Oman, Panama, Peru,'' in its place.

The revised text reads as follows:

52.225-23 Required Use of American Iron, Steel, and Manufactured Goods--Buy American Act--Construction Materials Under Trade Agreements.

* * * * *

Required Use of American Iron, Steel, and Manufactured Goods--Buy American Act--Construction Materials Under Trade Agreements (NOV 2012)

* * * * *

[FR Doc. 2012-27906 Filed 11-19-12; 8:45 am]

BILLING CODE 6820-EP-P

-----------------------------------------------------------------------

[Federal Register Volume 77, Number 224 (Tuesday, November 20, 2012)]

[Rules and Regulations]

From the Federal Register Online via the Government Printing Office [www.gpo.gov]

[FR Doc No: 2012-27907]

-----------------------------------------------------------------------

DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Chapter 1

[Docket FAR 2012-0081, Sequence 7]

Federal Acquisition Regulation; Federal Acquisition Circular 2005-62; Small Entity Compliance Guide

AGENCY: Department of Defense (DoD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Small Entity Compliance Guide.

-----------------------------------------------------------------------

SUMMARY: This document is issued under the joint authority of DOD, GSA, and NASA. 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 the rule appearing in Federal Acquisition Circular (FAC) 2005-62, which amends the Federal Acquisition Regulation (FAR). An asterisk (*) next to a rule indicates that a regulatory flexibility analysis has been prepared. Interested parties may obtain further information regarding this rule by referring to FAC 2005-62, which precedes this document. These documents are also available via the Internet at http://www.regulations.gov.

DATES: November 20, 2012.

FOR FURTHER INFORMATION CONTACT: For clarification of content, contact the analyst whose name appears in the table below. Please cite FAC 2005-62 and the FAR case number. For information pertaining to status or publication schedules, contact the Regulatory Secretariat at 202-501-4755.

List of Rules in FAC 2005-62

Item

Subject

FAR case

Analyst

I

Updates to Contract Reporting and Central Contractor Registration.

2010-014

Loeb

II

Interagency Acquisitions: Compliance by Nondefense Agencies with Defense Procurement Requirements.

2012-010

Corrigan

III

Free Trade Agreement--Panama.

2012-027

Davis

SUPPLEMENTARY INFORMATION: Summaries for each FAR rule follow. For the actual revisions and/or amendments made by these FAR cases, refer to the specific item numbers and subjects set forth in the documents following these item summaries. FAC 2005-62 amends the FAR as specified below:

Item I--Updates to Contract Reporting and Central Contractor Registration (FAR Case 2010-014)

GSA, DOD, and NASA published a proposed rule in the Federal Register at 76 FR 73564 on November 29, 2011 to revise the practice for and limit the use of generic Data Universal Numbering System (DUNS) Numbers, update policies on reporting into the Federal Procurement Data System (FPDS), and revise clauses for Central Contractor Registration (CCR) and DUNS Number reporting. The rule increases transparency by reducing the use of generic DUNs, but may require more small businesses to register in CCR. The rule clarifies that non-appropriated fund awards will generally not be included in FPDS. The rule also clarifies requirements for agencies to submit and review contract action reports in FPDS. This rule uses the existing term ``Central Contractor Registration'' rather than ``System for Award Management,'' because FAR Case 2012-033 will address the terminology update to ``System for Award Management'' throughout the FAR.

Item II--Interagency Acquisitions: Compliance by Nondefense Agencies With Defense Procurement Requirements (FAR Case 2012-010)

This interim rule amends the FAR to implement section 801 of the National Defense Authorization Act for Fiscal Year 2008 (Pub. L. 110-181), as amended (10 U.S.C. 2304 note). Section 801 requires compliance certifications by non-defense agencies that purchase on behalf of DoD, and clarifies which DoD laws and regulations apply. The agencies must comply with new FAR subpart 17.7, in addition to complying with FAR subpart 17.5. To provide clarification for small business and contracting officers, existing policy for small business goal credit for assisted acquisitions is added to section FAR 4.603(c).

Item III--Free Trade Agreement--Panama (FAR Case 2012-027)

This interim rule implements a new Free Trade Agreement with Panama (see the United States--Panama Trade Promotion Agreement Implementation Act (Pub. L. 112-43) (19 U.S.C. 3805 note)).

This Trade Promotion Agreement is a free trade agreement that provides for mutually non-discriminatory treatment of eligible products and services from Panama. This interim rule is not expected to have a significant economic impact on a substantial number of small entities.

Dated: November 9, 2012.

Laura Auletta,

Director, Office of Governmentwide Acquisition Policy, Office of Acquisition Policy, Office of Governmentwide Policy.

[FR Doc. 2012-27907 Filed 11-19-12; 8:45 am]

BILLING CODE P