FEDERAL ACQUISITION REGULATION

Subchapter A--General




FAC 90--23 FEBRUARY 27, 1995

{PART 1}

FEDERAL ACQUISITION REGULATIONS SYSTEM

TABLE OF CONTENTS

1.000 Scope of part.

SUBPART 1.1--PURPOSE, AUTHORITY, ISSUANCE

1.101 Purpose.

1.102 Authority.

1.103 Applicability.

1.104 Issuance.

1.104-1 Publication and code arrangement.

1.104-2 Arrangement of regulations.

1.104-3 Copies.

1.104-5 OMB Approval Under the Paperwork Reduction Act.

SUBPART 1.2--ADMINISTRATION

1.201 Maintenance of the FAR.

1.201-1 The two councils.

1.201-2 FAR Secretariat.

1.202 Agency compliance with the FAR.

SUBPART 1.3--AGENCY ACQUISITION REGULATIONS

1.301 Policy.

1.302 Limitations.

1.303 Publication and codification.

1.304 Agency control and compliance procedures.

SUBPART 1.4--DEVIATIONS FROM THE FAR

1.400 Scope of subpart.

1.401 Definition.

1.402 Policy.

1.403 Individual deviations.

1.404 Class deviations.

1.405 Deviations pertaining to treaties and executive agreements.

SUBPART 1.5--AGENCY AND PUBLIC PARTICIPATION

1.501 Solicitation of agency and public participation.

1.501-1 Definition.

1.501-2 Opportunity for public comments.

1.501-3 Exceptions.

1.502 Unsolicited proposed revisions.

1.503 Public meetings.

SUBPART 1.6--CAREER DEVELOPMENT, CONTRACTING AUTHORITY AND RESPONSIBILITIES

1.601 General.

1.602 Contracting officers.

1.602-1 Authority.

1.602-2 Responsibilities.

1.602-3 Ratification of unauthorized commitments.

1.603 Selection, appointment, and termination of appointment.

1.603-1 General.

1.603-2 Selection.

1.603-3 Appointment.

1.603-4 Termination.

SUBPART 1.7--DETERMINATIONS AND FINDINGS

1.700 Scope of subpart.

1.701 Definition.

1.702 General.

1.703 Class determinations and findings.

1.704 Content.

1.705 Supersession and modification.

1.706 Expiration.

1.707 Signatory authority.




{PART 1}

FEDERAL ACQUISITION REGULATIONS SYSTEM

{1.000} Scope of part.

This part sets forth basic policies and general information about the Federal Acquisition Regulations System including purpose, authority, applicability, issuance, arrangement, numbering, dissemination, implementation, supplementation, maintenance, administration, and deviation. Subparts 1.2, 1.3, and 1.4 prescribe administrative procedures for maintaining the FAR System.

SUBPART 1.1--PURPOSE, AUTHORITY, ISSUANCE

{1.101} Purpose.

The Federal Acquisition Regulations System is established for the codification and publication of uniform policies and procedures for acquisition by all executive agencies. The Federal Acquisition Regulations System consists of the Federal Acquisition Regulation (FAR), which is the primary document, and agency acquisition regulations that implement or supplement the FAR. The FAR System does not include internal agency guidance of the type described in 1.301(a)(2).

{1.102} Authority.

(a) The development of the FAR System is in accordance with the requirements of the Office of Federal Procurement Policy Act of 1974 (Pub. L. 93-400), as amended by Pub. L. 96-83, and OFPP Policy Letter 85-1, Federal Acquisition Regulations System, dated August 19, 1985.

(b) The FAR is prepared, issued, and maintained, and the FAR System is prescribed jointly by the Secretary of Defense, the Administrator of General Services, and the Administrator, National Aeronautics and Space Administration, under their several statutory authorities.

{1.103} Applicability.

The FAR applies to all acquisitions as defined in Part 2 of the FAR, except where expressly excluded.

{1.104} Issuance.

{1.104-1} Publication and code arrangement.

(a) The FAR is published in (1) the daily issue of the Federal Register, (2) cumulated form in the Code of Federal Regulations (CFR), and (3) a separate loose-leaf edition.

(b) The FAR is issued as Chapter 1 of Title 48, CFR. Subsequent chapters are reserved for agency acquisition regulations that implement or supplement the FAR (see Subpart 1.3).  The CFR Staff will assign chapter numbers to requesting agencies.

(c) Each numbered unit or segment (e.g., part, subpart, section, etc.) of an agency acquisition regulation that is codified in the CFR shall begin with the chapter number. However, the chapter number assigned to the FAR will not be included in the numbered units or segments of the FAR.

{1.104-2} Arrangement of regulations.

(a) General. The FAR is divided into subchapters, parts (each of which deals with a separate aspect of acquisition), subparts, sections, and subsections.

(b) Numbering. (1) The numbering system permits the discrete identification of every FAR paragraph. The digits to the left of the decimal point represent the part number. The numbers to the right of the decimal point and to the left of the dash represent, in order, the subpart (one or two digits), and the section (two digits). The number to the right of the dash represents the subsection. Subdivisions may be used at the section and subsection level to identify individual paragraphs. The following example illustrates the make-up of a FAR number citation (note that subchapters are not used with citations):

25.108-2

! ! !

! ! ! !

Part<----- ! ! ! 

Subpart<------- ! !

Section<--------- !

Subsection<-----------!

(2) Subdivisions below the section or subsection level shall consist of parenthetical alphanumerics reading from highest to lowest indenture as follows: lower case alphabet, Arabic numbers, lower case Roman numerals, and upper case alphabet. The following example is illustrative:

(a)(1)(i)(A)

Subdivisions, below the 4th level, shall repeat the sequence.

(c) References and citations. (1) Unless otherwise stated, cross references indicate parts, subparts, sections, subsections, paragraphs, subparagraphs, or subdivisions of this regulation.

(2) This regulation may be referred to as the Federal Acquisition Regulation or the FAR.

(3) Using the FAR coverage at 9.106-4(d) as a typical illustration, reference to the--

(FAC 90-23) 1-1

FAC 90-23 DECEMBER 28, 1994

1.104-3 FEDERAL ACQUISITION REGULATION (FAR)

(i) Part would be "FAR Part 9" outside the FAR and "Part 9" within the FAR.

(ii) Subpart would be "FAR Subpart 9.1" outside the FAR and "Subpart 9.1" within the FAR.

(iii) Section would be "FAR 9.106" outside the FAR and "9.106" within the FAR.

(iv) Subsection would be "FAR 9.106-4" outside the FAR and "9.106-4" within the FAR.

(v) Paragraph would be "FAR 9.106-4(d)" outside the FAR and "9.106-4(d)" within the FAR.

(4) Citations of authority (e.g., statutes or executive orders) in the FAR shall follow the Federal Register form guides.

{1.104-3} Copies.

Copies of the FAR in Federal Register, loose-leaf, and CFR form may be purchased from the Superintendent of Documents, Government Printing Office (GPO), Washington, DC 20402.

[Amended per FAC 90-23]

{1.105} OMB Approval under the Paperwork Reduction Act.

The Paperwork Reduction Act of 1980 (Pub. L. 96-511) imposes a requirement on Federal agencies to obtain approval from the Office of Management and Budget (OMB) before collecting information from ten or more members of the public. The information collection and record­keeping requirements contained in this regulation have been approved by the OMB. The following OMB control numbers apply:

OMB

FAR segment Control Number

3.103 9000-0018

3.104-9 9000-0103

3.104-12(a)(12) 9000-0003

4.102 9000-0033

4.7 9000-0034

4.9 9000-0097

5.405 9000-0036

7.2 9000-0082

8.203-2 9000-0017

8.5 9000-0113

9.1 9000-0011

9.2 9000-0020

9.5 9000-0111

14.201 9000-0034

14.202-4 9000-0040

14.202-5 9000-0039

14.205 9000-0002

14.205-4(c) 9000-0037

[14.214 9000-0105]

14.406 9000-0038

14.5 9000-0041

15.106 9000-0034

15.404 9000-0037

15.7 9000-0078

15.8 9000-0013

[15.804-8 9000-0115]

15.812-1(b) 9000-0080

[15.813-1 9000-0105]

[15.813-2 9000-0105]

[15.813-3 9000-0105]

[15.813-6 9000-0105]

19.7 9000-0006

[ ]

22.103 9000-0065

22.606-2(b) 1215-0157

22.8 1215-0072

22.11 9000-0066

22.13 1215-0072

22.14 1215-0072

[22.15 9000-0127]

[23.602 9000-0107]

27.3 9000-0095

27.4 9000-0090

28.1 9000-0045

[28.106-1(b) 9000-0119]

28.2 9000-0045

29.304 9000-0059

30 9000-0093

[30.6 9000-0129]

[ ]

[31.205-2 9000-0072]

31.205-46 9000-0079

31.205-46(a)(3) 9000-0088

[32 9000-0035]

32.1 9000-0070

32.4 9000-0073

32.5 9000-0010

32.7 9000-0074

32.9 9000-0102

33 9000-0035

[34.1 9000-0132]

36.302 9000-0037

36.603 9000-0004

and 9000-0005

[36.701 9000-0037]

[41.004-2(c) 9000-0125]

42.203 9000-0026

42.7 9000-0013

42.12 9000-0076

42.13 9000-0076

42.14 9000-0056

45 9000-0075

46 9000-0077

47 9000-0061

48 9000-0027

49 9000-0028

50 9000-0029

51.1 9000-0031

51.2 9000-0032

52.203-2 9000-0018

1-2

FAC 90--4 MAY 15, 1991

PART 1--FEDERAL ACQUISITION REGULATIONS SYSTEM 1.105

OMB

FAR Segment Control Number

52.203-4 9000-0003

52.203-7 9000-0091

52.203-8 9000-0103

52.203-9 9000-0103

52.204-3 9000-0097

[52.207-3 9000-0114]

52.208-1 9000-0017

52.214-14 9000-0047

52.214-15 9000-0044

52.214-16 9000-0044

52.214-17 9000-0018

52.214-21 9000-0039

52.214-26 9000-0034

52.214-28 9000-0013

52.215-1 9000-0034

52.215-2 9000-0034

52.215-6 9000-0046

52.215-11 9000-0048

52.215-19 9000-0044

52.215-20 9000-0047

52.215-21 9000-0078

52.215-24 9000-0013

52.215-25 9000-0013

52.215-26 9000-0080

52.215-32 9000-0105

[52.215-40 9000-0015]

52.216-2 9000-0068

52.216-3 9000-0068

52.216-4 9000-0068

52.216-5 9000-0071

52.216-6 9000-0071

52.216-7 9000-0069

52.216-10 9000-0067

52.216-13 9000-0069

52.216-15 9000-0069

52.216-16 9000-0067

52.216-17 9000-0067

52.219-9 9000-0006

52.219-10 9000-0006

52.219-19 9000-0100

52.219-20 9000-0100

52.219-21 9000-0100

52.222-2 9000-0065

52.222-4 1215-0119

52.222-6 1215-0140

52.222-8 1215-0149

and 1215-0017

52.222-11 9000-0014

[52.222-18 9000-0014]

52.222-21 1215-0072

52.222-22 1215-0072

52.222-23 1215-0072

52.222-25 1215-0072

52.222-26 1215-0072

52.222-27 1215-0072

52.222-35 1215-0072

52.222-36 1215-0072

52.222-41 1215-0017

and 1215-0150

52.222-46 9000-0066

52.223-1 9000-0021

52.223-6(b)(5) 9000-0101

[52.233-7(sic) 9000-0117]

52.225-1 9000-0024

52.225-6 9000-0023

52.225-8 9000-0025

52.225-10 9000-0022

[52.225-20 9000-0130]

52.228-1 9000-0045

52.228-2 9000-0045

52.228-3 9000-0045

52.229-2 9000-0059

[52.230-5 9000-0129]

52.232-5 9000-0070

52.232-7 9000-0070

52.232-10 9000-0070

52.232-12 9000-0073

52.232-13 9000-0010

52.232-14 9000-0010

52.232-15 9000-0010

52.232-16 9000-0010

52.232-20 9000-0074

52.232-21 9000-0074

52.232-22 9000-0074

52.232-27 9000-0102

52.233-1 9000-0035

[52.234-1 9000-0133]

52.236-5 9000-0062

52.236-13 1220-0029

and 9000-0060

52.236-15 9000-0058

52.236-19 9000-0064

52.237-9 9000-0103

[52.241-2 9000-0122]

[52.241-6 9000-0123]

[52.241-11 9000-0126]

[52.241-13 9000-0124]

52.242-12 9000-0056

[ ]

52.243-1 9000-0026

52.243-2 9000-0026

52.243-3 9000-0026

52.243-4 9000-0026

52.243-6 9000-0026

52.243-7 9000-0026

52.245-2 9000-0075

52.245-3 9000-0075

52.245-5 9000-0075

(FAC 90-4 Corr.) 1-3

1.201 FEDERAL ACQUISITION REGULATION (FAR)

OMB

FAR segment Control Number

52.245-7 9000-0075

52.245-8 9000-0075

52.245-9 9000-0075

52.245-10 9000-0075

52.245-11 9000-0075

52.245-16 9000-0075

52.245-17 9000-0075

52.245-18 9000-0075

52.246-2 9000-0077

52.246-3 9000-0077

52.246-4 9000-0077

52.246-5 9000-0077

52.246-6 9000-0077

52.246-7 9000-0077

52.246-8 9000-0077

52.246-10 9000-0077

52.246-12 9000-0077

52.246-15 9000-0077

52.247-2 9000-0053

52.247-29 9000-0061

52.247-30 9000-0061

52.247-31 9000-0061

52.247-32 9000-0061

52.247-33 9000-0061

52.247-34 9000-0061

52.247-35 9000-0061

52.247-36 9000-0061

52.247-37 9000-0061

52.247-38 9000-0061

52.247-39 9000-0061

52.247-40 9000-0061

52.247-41 9000-0061

52.247-42 9000-0061

52.247-43 9000-0061

52.247-44 9000-0061

52.247-51 9000-0057

52.247-53 9000-0055

52.247-57 9000-0061

52.247-63 9000-0054

52.247-64 9000-0054

52.248-1 9000-0027

52.248-2 9000-0027

52.248-3 9000-0027

52.249-2 9000-0028

52.249-3 9000-0028

52.249-5 9000-0028

52.249-6 9000-0028

52.249-11 9000-0028

52.250-1 9000-0029

52.253-1 9000-0104

53.105 9000-0104

[53.236-1(a) 9000-0037]

SF 24 9000-0045

SF 25 9000-0045

SF 25-A 9000-0045

SF 28 9000-0001

SF 34 9000-0045

SF 35 9000-0045

SF 119 9000-0003

SF 129 9000-0002

SF 254 9000-0004

SF 255 9000-0005

SF 273 9000-0045

SF 274 9000-0045

SF 275 9000-0045

SF 294 9000-0006

SF 295 9000-0007

SF 1403 9000-0011

SF 1404 9000-0011

SF 1405 9000-0011

SF 1406 9000-0011

SF 1407 9000-0011

SF 1408 9000-0011

SF 1411 9000-0013

SF 1412 9000-0013

SF 1413 9000-0014

SF 1416 9000-0045

SF 1417 9000-0037

[SF1418 9000-0119]

SF 1423 9000-0015

SF 1424 9000-0015

SF 1426 9000-0015

SF 1427 9000-0015

SF 1428 9000-0015

SF 1429 9000-0015

SF 1430 9000-0015

SF 1431 9000-0015

SF 1432 9000-0015

SF 1433 9000-0015

SF 1434 9000-0015

SF 1435 9000-0012

SF 1436 9000-0012

SF 1437 9000-0012

SF 1438 9000-0012

SF 1439 9000-0012

SF 1440 9000-0012

SF 1443 9000-0010

SF 1444 9000-0089

SF 1445 9000-0089

SF 1446 9000-0089

All other requirements 9000-0063

SUBPART 1.2--ADMINISTRATION

{1.201} Maintenance of the FAR.

{1.201-1} The two councils.

(a) Subject to the authorities discussed in 1.102, revisions to the FAR will be prepared and issued through the coordinated action of two councils, the Defense Acquisition Regulatory Council (DAR Council) and the

1-4 (FAC 90-4 Corr.)

PART 1--FEDERAL ACQUISITION REGULATIONS SYSTEM 1.301

Civilian Agency Acquisition Council (CAA Council). Members of these councils shall--

(1) Represent their agencies on a full-time basis;

(2) Be selected for their superior qualifications in terms of acquisition experience and demonstrated professional expertise; and

(3) Be funded by their respective agencies.

(b) The chairperson of the CAA Council shall be the representative of the Administrator of General Services. The other members of this council shall be one each representative from the (1) Departments of Agriculture, Commerce, Energy, Health and Human Services, Interior, Labor, State, Transportation, and Treasury, and (2) Environmental Protection Agency, Small Business Administration, and Department of Veterans Affairs.

(c) The Director of the DAR Council shall be the representative of the Secretary of Defense. The operation of the DAR Council will be as prescribed by the Secretary of Defense. Membership shall include representatives of the military Departments, the Defense Logistics Agency, and the National Aeronautics and Space Administration.

(d) Responsibility for processing revisions to the FAR is apportioned by the two councils so that each council has cognizance over specified parts or subparts.

(e) Each council shall be responsible for--

(1) Agreeing on all revisions with the other council;

(2) Submitting to the FAR Secretariat (see 1.201-2) the information required under paragraphs 1.501-2(b) and (e) for publication in the Federal Register of a notice soliciting comments on a proposed revision to the FAR;

(3) Considering all comments received in response to notice of proposed revisions;

(4) Arranging for public meetings;

(5) Preparing any final revision in the appropriate FAR format and language; and

(6) Submitting any final revision to the FAR Secretariat for publication in the Federal Register and printing for distribution.

{1.201-2} FAR Secretariat.

(a) The General Services Administration is responsible for establishing and operating the FAR Secretariat to print, publish, and distribute the FAR through the Code of Federal Regulations system (including a loose-leaf edition with periodic updates).

(b) Additionally, the FAR Secretariat shall provide the two councils with centralized services for--

(1) Keeping a synopsis of current FAR cases and their status;

(2) Assigning FAR case numbers;

(3) Maintaining official files;

(4) Assisting parties interested in reviewing the files on completed cases; and (5) Performing miscellaneous administrative tasks pertaining to the maintenance of the FAR.

{1.202} Agency compliance with the FAR.

Agency compliance with the FAR (see 1.304) is the responsibility of the defense agencies), the Administrator of General Services (for civilian agencies other than NASA), and the Administrator of NASA (for NASA activities).

SUBPART 1.3--AGENCY ACQUISITION REGULATIONS

{1.301} Policy.

(a)(1) Subject to the authorities in (c) below and other statutory authority, an agency head may issue or authorize the issuance of agency acquisition regulations that implement or supplement the FAR and incorporate, together with the FAR, agency policies, procedures, contract clauses, solicitation provisions, and forms that govern the contracting process or otherwise control the relationship between the agency, including any of its suborganizations, and contractors or prospective contractors.

(2) Subject to the authorities in (c) below and other statutory authority, an agency head may issue or authorize the issuance of internal agency guidance at any organizational level (e.g., designations and delegations of authority, assignments of responsibilities, work-flow procedures, and internal reporting requirements).

(b) Agency heads shall establish procedures to ensure that agency acquisition regulations are published for comment in the Federal Register in conformance with the procedures in Subpart 1.5 and as required by section 22 of the Office of Federal Procurement Policy Act, as amended (41 U.S.C. 418b), and other applicable statutes, when they have a significant effect beyond the internal operating procedures of the agency or have a significant cost or administrative impact on contractors or offerors. However, publication is not required for issuances that merely implement or supplement higher level issuances that have previously undergone the public comment process, unless such implementation or supplementation results in an additional significant cost or administrative impact on contractors or offerors or effect beyond the internal operating procedures of the issuing organization. Issuances under 1.301(a)(2) need not be publicized for public comment.

(c) When adopting acquisition regulations, agencies shall ensure that they comply with the Paperwork Reduction Act (44 U.S.C. 3501, et seq.) as implemented in 5 CFR 1320 (see 1.105) and the Regulatory Flexibility Act (5 U.S.C. 601, et seq.). Normally, when a law requires publication of a proposed regulation, the Regulatory Flexibility Act applies and agencies must prepare written analyses, or certifications as provided in the law.

1-5

1.302 FEDERAL ACQUISITION REGULATION (FAR)

(d) Agency acquisition regulations implementing or supplementing the FAR are, for--

(1) The military departments and defense agencies, issued subject to the authority of the Secretary of Defense;

(2) NASA activities, issued subject to the authorities of the Administrator of NASA; and

(3) The civilian agencies other than NASA, issued by the heads of those agencies subject to the overall authority of the Administrator of General Services or independent authority the agency may have.

{1.302} Limitations.

Agency acquisition regulations shall be limited to--

(a) Those necessary to implement FAR policies and procedures within the agency; and

(b) Additional policies, procedures, solicitation provisions, or contract clauses that supplement the FAR to satisfy the specific needs of the agency.

{1.303} Publication and codification.

(a) Agency-wide acquisition regulations shall be published in the Federal Register as required by law, shall be codified under an assigned chapter in Title 48, Code of Federal Regulations, and shall parallel the FAR in format, arrangement, and numbering system (but see 1.104-1(c)). Coverage in an agency acquisition regulation that implements a specific part, subpart, section, or subsection of the FAR shall be numbered and titled to correspond to the appropriate FAR number and title. Supplementary material for which there is no counterpart in the FAR shall be codified using chapter, part, subpart, section, or subsection numbers of 70 and up (e.g., for the Department of Interior, whose assigned chapter number in Title 48 is 14, Part 1470, Subpart 1401.70, section 1401.370, or subsection 1401.301-70).

(b) Issuances under 1.301(a)(2) need not be published in the Federal Register.

{1.304} Agency control and compliance procedures.

(a) Under the authorities of 1.301(c), agencies shall control and limit issuance of agency acquisition regulations and shall establish formal procedures for the review of these regulations to assure compliance with this Part 1.

(b) Agency acquisition regulations shall not--

(1) Unnecessarily repeat, paraphrase, or otherwise restate material contained in the FAR or higher-level agency acquisition regulations; or

(2) Except as required by law or as provided in Subpart 1.4, conflict or be inconsistent with FAR content.

(c) Agencies shall evaluate all regulatory coverage in agency acquisition regulations to determine if it could apply to other agencies. Coverage that is not peculiar to one agency shall be recommended for inclusion in the FAR.

SUBPART 1.4--DEVIATIONS FROM THE FAR

{1.400} Scope of subpart.

This subpart prescribes the policies and procedures for authorizing deviations from the FAR. Exceptions pertaining to the use of forms prescribed by the FAR are covered in Part 53 rather than in this subpart.

{1.401} Definition.

"Deviation" means any one or combination of the following:

(a) The issuance or use of a policy, procedure, solicitation provision (see definition in 52.101(a)), contract clause (see definition in 52.101(a)), method, or practice of conducting acquisition actions of any kind at any stage of the acquisition process that is inconsistent with the FAR.

(b) The omission of any solicitation provision or contract clause when its prescription requires its use.

(c) The use of any solicitation provision or contract clause with modified or alternate language that is not authorized by the FAR (see definitions of "modification" and "alternate" in 52.101(a)).

(d) The use of a solicitation provision or contract clause prescribed by the FAR on a "substantially as follows" or "substantially the same as" basis (see definitions in 52.101(a)), if such use is inconsistent with the intent, principle, or substance of the prescription or related coverage on the subject matter in the FAR. (e) The authorization of lesser or greater limitations on the use of any solicitation provision, contract clause, policy, or procedure prescribed by the FAR.

(f) The issuance of policies or procedures that govern the contracting process or otherwise control contracting relationships that are not incorporated into agency acquisition regulations in accordance with 1.301(a).

{1.402} Policy.

Unless precluded by law, executive order, or regulation, deviations from the FAR may be granted as specified in this subpart when necessary to meet the specific needs and requirements of each agency.  The development and testing of new techniques and methods of acquisition should not be stifled simply because such action would require a FAR deviation. The fact that deviation authority is required should not, of itself, deter agencies in their development and testing of new techniques and acquisition methods. Refer to 31.101 for instructions concerning deviations pertaining to the subject matter of Part 31, Contract Cost Principles and Procedures. Deviations are not authorized with respect to Part 30. Refer to 30.201-5 for instructions concerning waivers pertaining to Cost Accounting Standards.

1-6

FAC 90--20 MARCH 10, 1994

PART 1--FEDERAL ACQUISITION REGULATIONS SYSTEM 1.502

{1.403} Individual deviations.

Individual deviations affect only one contracting action, and, unless 1.405(e) is applicable, may be authorized by agency heads or their designees. The justification and agency approval shall be documented in the contract file and a copy of the approved deviation shall be furnished to the FAR Secretariat through a central agency control point.

{1.404} Class deviations.

Class deviations affect more than one contracting action. When it is known that a class deviation will be required on a permanent basis, an agency should propose an appropriate FAR revision to cover the matter. A copy of each approved class deviation shall be furnished to the FAR Secretariat.

(a) For civilian agencies except NASA, class deviations may be authorized by agency heads or their designees, unless 1.405(e) is applicable. Delegation of this authority shall not be made below the head of a contracting activity. Authorization of class deviations by agency officials is subject to the following limitations:

(1) An agency official who may authorize a class deviation, before doing so, shall consult with the chairperson of the Civilian Agency Acquisition Council (CAA Council), unless that agency official determines that urgency precludes such consultation.

(2) Recommended revisions to the FAR shall be transmitted to the FAR Secretariat by agency heads or their designees for authorizing class deviations.

(b) For DOD, class deviations shall be controlled, processed, and approved in accordance with the Defense FAR Supplement.

(c) For NASA, class deviations shall be controlled and approved by the Associate Administrator for Procurement. Deviations shall be processed in accordance with agency regulations.

{1.405} Deviations pertaining to treaties and executive agreements.

(a) "Executive agreements," as used in this section, means Government-to-Government agreements, including agreements with international organizations, to which the United States is a party.

(b) Any deviation from the FAR required to comply with a treaty to which the United States is a party is authorized, unless the deviation would be inconsistent with FAR coverage based on a law enacted after the execution of the treaty.

(c) Any deviation from the FAR required to comply with an executive agreement is authorized unless the deviation would be inconsistent with FAR coverage based on law.

(d) A copy of the text of any deviation authorized under paragraphs (b) or (c) of this section shall be transmitted to the FAR Secretariat through a central agency control point.

(e) If a deviation required to comply with a treaty or an executive agreement is not authorized by paragraphs (b) or (c) of this section, then the request for deviation shall be processed through the FAR Secretariat to the appropriate council.

SUBPART 1.5--AGENCY AND PUBLIC PARTICIPATION

{1.501} Solicitation of agency and public views.

{1.501-1} Definition.

"Significant revisions," as used in this subpart, means revisions that alter the substantive meaning of any coverage in the FAR System having a significant cost or administrative impact on contractors or offerors, or significant effect beyond the internal operating procedures of the issuing agency. This expression, for example, does not include editorial, stylistic, or other revisions that have no impact on the basic meaning of the coverage being revised.

{1.501-2} Opportunity of public comments.

(a) Views of agencies and nongovernmental parties or organizations will be considered in formulating acquisition policies and procedures.

(b) The opportunity to submit written comments on proposed significant revisions shall be provided by placing a notice in the Federal Register. Each of these notices shall include--

(1) The text of the revision or, if it is impracticable to publish the full text, a summary of the proposal;

(2) The address and telephone number of the individual from whom copies of the revision, in full text, can be requested and to whom comments thereon should be addressed; and

(3) When 1.501-3(b) is applicable, a statement that the revision is effective on a temporary basis pending completion of the public comment period.

(c) A minimum of 30 days and, normally, at least 60 days will be given for the receipt of comments.

{1.501-3} Exceptions.

(a) Comments need not be solicited when the proposed coverage does not constitute a significant revision.

(b) Advance comments need not be solicited when urgent and compelling circumstances make solicitation of comments impracticable prior to the effective date of the coverage, such as when a new statute must be implemented in a relatively short period of time. In such case, the coverage shall be issued on a temporary basis and shall provide for at least a 30 day public comment period.

{1.502} Unsolicited proposed revisions.

Consideration shall also be given to unsolicited recommendations for revisions that have been submitted in writ-

1-7

FAC 90--20 MARCH 10, 1994

1.503 FEDERAL ACQUISITION REGULATION (FAR)

ting with sufficient data and rationale to permit their evaluation.

{1.503} Public meetings.

Public meetings may be appropriate when a decision to adopt, amend, or delete FAR coverage is likely to benefit from significant additional views and discussion.

SUBPART 1.6--CAREER DEVELOPMENT,

CONTRACTING AUTHORITY AND RESPONSIBILITIES

{1.601} General.

Authority and responsibility to contract for authorized supplies and services are vested in the agency head. The agency head may establish contracting activities and delegate to heads of such contracting activities broad authority to manage the agency's contracting functions. Contracts may be entered into and signed on behalf of the Government only by contracting officers. In some agencies, a relatively small number of high level officials are designated contracting officers solely by virtue of their positions. Contracting officers below the level of a head of a contracting activity shall be selected and appointed under 1.603.

{1.602} Contracting officers.

{1.602-1} Authority.

(a) Contracting officers have authority to enter into, administer, or terminate contracts and make related determinations and findings. Contracting officers may bind the Government only to the extent of the authority delegated to them. Contracting officers shall receive from the appointing authority (see 1.603-1) clear instructions in writing regarding the limits of their authority. Information on the limits of the contracting officers' authority shall be readily available to the public and agency personnel.

(b) No contract shall be entered into unless the contracting officer ensures that all requirements of law, executive orders, regulations, and all other applicable procedures, including clearances and approvals, have been met.

{1.602-2} Responsibilities.

Contracting officers are responsible for ensuring performance of all necessary actions for effective contracting, ensuring compliance with the terms of the contract, and safeguarding the interests of the United States in its contractual relationships. In order to perform these responsibilities, contracting officers should be allowed wide latitude to exercise business judgment. Contracting officers shall--

(a) Ensure that the requirements of 1.602-1(b) have been met, and that sufficient funds are available for obligation;

(b) Ensure that contractors receive impartial, fair, and equitable treatment; and

(c) Request and consider the advice of specialists in audit, law, engineering, transportation, and other fields, as appropriate.

{1.602-3} Ratification of unauthorized commitments.

(a) Definitions.

"Ratification," as used in this subsection, means the act of approving an unauthorized commitment by an official who has the authority to do so.

"Unauthorized commitment," as used in this subsection, means an agreement that is not binding solely because the Government representative who made it lacked the authority to enter into that agreement on behalf of the Government.

(b) Policy. (1) Agencies should take positive action to preclude, to the maximum extent possible, the need for ratification actions. Although procedures are provided in this section for use in those cases where the ratification of an unauthorized commitment is necessary, these procedures may not be used in a manner that encourages such commitments being made by Government personnel.

(2) Subject to the limitations in paragraph (c) of this subsection, the head of the contracting activity, unless a higher level official is designated by the agency, may ratify an unauthorized commitment.

(3) The ratification authority in subparagraph (b)(2) of this subsection may be delegated in accordance with agency procedures, but in no case shall the authority be delegated below the level of chief of the contracting office.

(4) Agencies should process unauthorized commitments using the ratification authority of this subsection instead of referring such actions to the General Accounting Office for resolution. (See 1.602­3(d).)

(5) Unauthorized commitments that would involve claims subject to resolution under the Contract Disputes Act of 1978 should be processed in accordance with Subpart 33.2, Disputes and Appeals.

(c) Limitations. The authority in subparagraph (b)(2) of this subsection may be exercised only when--

(1) Supplies or services have been provided to and accepted by the Government, or the Government otherwise has obtained or will obtain a benefit resulting from performance of the unauthorized commitment;

(2) The ratifying official could have granted authority to enter or could have entered into a contractual commitment at the time it was made and still has the authority to do so;

(3) The resulting contract would otherwise have been proper if made by an appropriate contracting officer;

(4) The contracting officer reviewing the unauthorized commitment determines the price to be fair and reasonable;

1-8

PART 1--FEDERAL ACQUISITION REGULATIONS SYSTEM 1.704

(5) The contracting officer recommends payment and legal counsel concurs in the recommendation, unless agency procedures expressly do not require such concurrence;

(6) Funds are available and were available at the time the unauthorized commitment was made; and

(7) The ratification is in accordance with any other limitations prescribed under agency procedures.

(d) Nonratifiable commitments. Cases that are not ratifiable under this subsection may be subject to resolution as recommended by the General Accounting Office under its

claim procedure (GAO Policy and Procedures Manual for Guidance of Federal Agencies, Title 4, Chapter 2), or as authorized by FAR Part 50. Legal advice should be obtained in these cases.

{1.603} Selection, appointment, and termination of appointment.

[Amended per FAC 90-23]

{1.603-1} General.

[Subsection 414(4) of title 41, United States Code, requires agency heads to establish and maintain a procurement career management program and][] a system for the selection, appointment, and termination of appointment of contracting officers. Agency heads or their designees may select and appoint contracting officers and terminate their appointments. [These selections and appointments shall be consistent with Office of Federal Procurement Policy's (OFPP) standards for skill-based training in performing contracting and purchasing duties as published in OFPP Policy Letter No. 92-3, Procurement Professionalism Program Policy--Training for Contracting Personnel, June 24, 1992.]

{1.603-2} Selection.

In selecting contracting officers, the appointing official shall consider the complexity and dollar value of the acquisitions to be assigned and the candidate's experience, training, education, business acumen, judgment, character, and reputation. Examples of selection criteria include--

(a) Experience in Government contracting and administration, commercial purchasing, or related fields;

(b) Education or special training in business administration, law, accounting, engineering, or related fields;

(c) Knowledge of acquisition policies and procedures, including this and other applicable regulations;

(d) Specialized knowledge in the particular assigned field of contracting; and

(e) Satisfactory completion of acquisition training courses.

[Revised per FAC 90-24]

{1.603-3} Appointment.

[Contracting officers whose authority will be limited to micro-purchases (see subpart 13.6) shall be appointed in writing in accordance with agency procedures.] Contracting officers shall be appointed in writing on a "Certificate of Appointment," SF 1402, which shall state any limitation on the scope of authority to be exercised, other than limitations contained in applicable law[] or regulation[]. Appointing officials shall maintain files containing copies of all Certificates of Appointment that have not been terminated.

{1.603-4} Termination.

Termination of a contracting officer appointment will be by letter, unless the Certificate of Appointment contains other provisions for automatic termination. Terminations may be for reasons such as reassignment, termination of employment, or unsatisfactory performance.  No termination shall operate retroactively.

SUBPART 1.7--DETERMINATIONS AND FINDINGS

{1.700} Scope of subpart.

This subpart prescribes general policies and procedures for the use of determinations and findings (D&F's). Requirements for specific types of D&F's can be found with the appropriate subject matter.

{1.701} Definition.

"Determination and Findings" (D&F) means a special form of written approval by an authorized official that is required by statute or regulation as a prerequisite to taking certain contracting actions. The "determination" is a conclusion or decision supported by the "findings." The findings are statements of fact or rationale essential to support the determination and must cover each requirement of the statute or regulation.

{1.702} General.

(a) A D&F shall ordinarily be for an individual contract action. Unless otherwise prohibited, class D&F's may be executed for classes of contract actions (see 1.703). The approval granted by a D&F is restricted to the proposed contract action(s) reasonably described in that D&F. D&F's may provide for a reasonable degree of flexibility. Futhermore, in their application, reasonable variations in estimated quantities or prices are permitted, unless the D&F specifies otherwise.

(b) When an option is anticipated, the D&F shall state the approximate quantity to be awarded initially and the extent of the increase to be permitted by the option.

{1.703} Class determinations and findings.

(a) A class D&F provides authority for a class of contracting actions. A class may consist of contracting actions for the same or related supplies or services or other contracting actions that require essentially identical justification.

(b) The findings in a class D&F shall fully support the proposed action either for the class as a whole or for each action. A class D&F shall be for a specified period, with the expiration date stated in the document.

(c) The contracting officer shall ensure that individual actions taken pursuant to the authority of a class D&F are within the scope of the D&F.

{1.704} Content.

Each D&F shall set forth enough facts and circumstances to clearly and convincingly justify the specific determination made. As a minimum, each D&F shall include, in the prescribed agency format, the following information:

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1.705 FEDERAL ACQUISITION REGULATION (FAR)

(a) Identification of the agency and of the contracting activity and specific identification of the document as a "Determination and Findings".

(b) Nature and/or description of the action being approved.

(c) Citation of the appropriate statute and/or regulation upon which the D&F is based.

(d) Findings that detail the particular circumstances, facts, or reasoning essential to support the determination.

Necessary supporting documentation shall be obtained from appropriate requirements and technical personnel.

(e) A determination, based on the findings, that the proposed action is justified under the applicable statute or regulation.

(f) Expiration date of the D&F, if required (see 1.706).

(g) The signature of the official authorized to sign the D&F (see 1.707) and the date signed.

{1.705} Supersession and modification.

(a) If a D&F is superseded by another D&F, that action shall not render invalid any action taken under the original D&F prior to the date of its supersession.

(b) A modification of the D&F will not require cancellation of the solicitation if the D&F, as modified, supports the contracting action.

{1.706} Expiration.

Expiration dates are required for class D&F's and are optional for individual D&F's. Authority to act under an individual D&F expires when it is exercised or on an expiration date specified in the document, whichever occurs first. Authority to act under a class D&F expires on the expiration date specified in the document. When a solicitation has been furnished to prospective offerors before the expiration date, the authority under the D&F will continue until award of the contract(s) resulting from the solicitation.

{1.707} Signatory authority.

When a D&F is required, it shall be signed by the appropriate official in accordance with agency regulations. Authority to sign or delegate signature authority for the various D&F's is as shown in the applicable FAR part.

1-10

{ }

RULES and REGULATIONS

DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Chapter 1

Federal Acquisition Circular 90-23; Introduction

Wednesday, December 28, 1994

AGENCIES: Department of Defense (DOD), General Services

Administration (GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Summary presentation of final and interim rules with request for comment, and technical amendments.

SUMMARY: This document summarizes the FAR rules which follow it in the order listed below. The Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council are issuing Federal Acquisition Circular (FAC) 90-23 to amend the Federal Acquisition Regulation (FAR).

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

Item Subject FAR Case DAR Case Analyst

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

I ........ Training for contracting personnel .... 93-604 ------- DeStefano.

II ....... Storage of contract files ............. 91-101 ... 91-46 Klein.

III ...... National security ....................... 93-8 ------- Scott.

IV ....... Acquisition of utility services ........ 91-13 .. 90-471 Loeb.

V ........ Lease with option to purchase ........... 91-6 .. 90-413 DeStefano.

VI ....... Procurement from people who are

blind or severely disabled .......... 93-610 ------- Scott.

VII ...... Acquisition of helium ................... 91-9 .. 90-415 Klein.

VIII ..... Paper and envelopes ................... 92-622 ------- Klein.

IX ....... Debarment, suspension, and

ineligibility ........................ 89-89 ... 88-96 DeStefano.

X ........ Revision to optional form 17, sealed

bid label ........................... 92-602 ------- Scott.

XI ....... Notification of ownership changes ...... 91-20 .. 89-117 Olson.

XII ...... Certificates of competency ............ 91-107 ... 91-88 Scott.

XIII ..... Small business competitiveness

demonstration program (interim) ..... 92-302 ------- Scott.

XIV ...... Small business concern

representation ....................... 91-61 ... 90-46 Scott.

XV ....... Prohibition of DOL

implementation/administration of

Davis-Bacon helper regulations

pursuant to fiscal year 1994

appropriation act ................... 93-618 ------- O'Neill.

XVI ...... Walsh-Healey definitions ............... 92-36 ------- O'Neill.

XVII ..... Section 4(c) price adjustments ........ 93-609 ------- O'Neill.

XVIII .... Collective Bargaining agreement,

contingency clauses ................... 92-7 ------- O'Neill.

XIX ...... Cost accounting standards .............. 92-18 ------- Olson.

XX ....... CAS applicability and thresholds ....... 93-27 ------- Olson.

XXI ...... Advance agreements, composition of

total cost, and accounting for

unallowable costs .................... 91-45 ... 90-23 Olson.

XXII ..... Postretirement benefits-transition

costs ................................ 91-42 .... 91-5 Olson.

XXIII .... Advance payment reporting ............. 93-309 ------- Olson.

XXIV ..... Defense production act amendments

(interim) ........................... 93-304 ------- O'Neill.

XXV ...... Defense Technical Information Center ... 93-29 ------- O'Neill.

XXVI ..... Construction contracting ............... 90-62 .. 90-448 O'Neill.

XXVII .... Child care services (Interim) ......... 91-106 .. 91-328 Scott.

XXVIII ... Final indirect cost agreements ........ 91-103 ... 91-81 Olson.

XXIX ..... Consent to subcontract ................. 91-68 .. 90-516 Klein.

XXX ...... Contractors' purchasing systems

reviews .............................. 90-53 .. 90-453 Klein.

XXXI ..... Transfers of government property ....... 90-34 .. 90-454 Klein.

XXXII .... Commercial bills of lading under

cost-reimbursement contracts audit

by GSA ............................... 88-56 .. 86-102 Klein.

XXXIII ... Qualification requirements ............ 92-612 ------- O'Neill.

XXXIV .... Small business and small

disadvantaged subcontracting plan ... 92-628 ------- Scott.

XXXV ..... Shipments to ports and air terminals ... 91-11 .. 90-457 O'Such.

XXXVI .... Standard form 18, request for

quotations ........................... 91-84 ... 91-36 Scott.

XXXVII ... Revisions to standard forms 1414 and

1415 .................................. 92-9 ------- O'Such.

XXXVIII .. Technical amendments ................ ------- ------- ---------

XXXIX .... Looseleaf amendments ................ ------- ------- ---------

XL ....... Annual notice of rates of inflation . ------- ------- Olson.

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

DATES: For effective dates and comment dates, see separate documents which follow. Please cite FAC 90-23 and the appropriate FAR case number(s) in all correspondence related to the following documents.

FOR FURTHER INFORMATION CONTACT: The analyst whose name appears (in the table above) in relation to each FAR case or subject area. For general information, contact the FAR Secretariat, room 4037, GS Building, Washington, DC 20405, (202) 501-4755. Please cite FAC 90-23 and specific FAR case number(s).

SUPPLEMENTARY INFORMATION: Federal Acquisition Circular 90-23 amends the Federal Acquisition Regulation (FAR) as specified below:

Item I--Training for Contracting Personnel (FAR Case 93-604)

Subpart 1.6 is revised by, among other things, adding language at FAR 1.603- 1, General, that addresses the requirements of the Office of Federal Procurement Policy (OFPP) Policy Letter No. 92-3, "Procurement Professionalism Program Policy-- *67011 Training for Contracting Personnel, dated June 24,

1992. OFPP Policy Letter No. 92-3, contains OFPP's standards for skill-based training in performing contracting and purchasing duties. The above changes will implement in the FAR, policies established by the OFPP Policy Letter.

Item II--Storage of Contract Files (FAR Case 91-101)

This final rule revises FAR Subparts 4.7 and 4.8 to permit the use of various media (paper, electronic, microfilm, etc.) for the storage of official contract files by contractors and contracting and contract administration offices.

Item III--National Security (FAR Case 93-8)

FAR 5.303(a) is revised to clarify that the requirement for public announcement of contract awards over $3 million does not apply to contracts exempted from synopsis in the Commerce Business Daily for reasons of national security.

Item IV--Acquisition of Utility Services (FAR Case 91-13)

A new Part 41, Acquisition of Utility Services, is added and replaces the existing language now located at FAR Subpart 8.3. Part 41 provides uniform language pertaining to the acquisition of utilities service which is applicable to all Executive agencies and will enable agencies to delete most of their regulatory guidance on utilities from their agency FAR supplements. The part includes additional guidance for contracting officers in acquiring and administering contracts for utility service and includes additional definitions applicable to utility service contracts. Language was added delineating

existing statutory and delegated authority for utility service contracting and providing for use of the standard forms to acquire utility services. "Standard" specification formats and annual utility service review formats have been established for use in acquiring utility services.

Item V--Lease with Option to Purchase (FAR Case 91-6)

This final rule amends the FAR by adding paragraph 7.402(b)(4), section7.404, and clause 52.207-5, based on the Defense Management Review, to include information required to support a contracting officer's decision to use a lease

with an option to purchase, and to outline the Government's right to purchase at any time during the performance of the contract.

Item VI--Procurement From People Who Are Blind or Severely Disabled (FAR Case 93-610)

FAR 8.001, 8.603, Subpart 8.7, and 9.107 are amended to reflect the Committee for Purchase From the Blind and Other Severely Handicapped name change and revisions to the Committee's regulations.

Item VII--Acquisition of Helium (FAR Case 91-9)

The FAR is being revised at 8.002; a new subpart is being added at Subpart 8.5; and a new clause is being added at 52.208-8, to provide guidance on the acquisition of helium. The Helium Act (50 U.S.C. 167a et seq.; Pub. L. 86-777) requires that all major helium requirements be purchased from the Secretary of the Interior. The coverage will assist Government agencies and contractors in complying with the Helium Act by ensuring that contracting officers and contractors are aware of the requirements for using Bureau of Mines' helium in Government contracts.

Item VIII--Paper and Envelopes (FAR Case 92-622)

Paragraph (c) of 8.802, Policy, has been revised to specify that paper and envelopes for use by Executive agencies outside the District of Columbia, and which are stocked by the General Services Administration (GSA), shall be requisitioned by agencies from GSA.

Item IX--Debarment, Suspension, and Ineligibility (FAR Case 89-89)

This final rule revises Subpart 9.4 to clarify to what extent, absent a termination by the issuing agency, an individual may place orders against an existing contract notwithstanding a debarment, suspension, or proposed debarment of the contractor. The rule also clarifies that an optional (permissive) user may elect to place a delivery order; a compelling reason determination is not required.

Item X--Sealed Bid Label (FAR Case 92-602)

FAR 14.202-3, 15.408, 53.214 and 53.215-1 are amended to permit use of the Optional Form 17, Offer Label, to identify offers for sealed bid and negotiated acquisitions. Use of the label is limited to envelopes larger than 6 1/8 inches by 11 1/2 inches to comply with U.S. Postal Service requirements for

automation-compatible mail.

Item XI--Notification of Ownership Changes (FAR Case 91-20)

FAR 15.804-8(g) and 52.215-40, Notification of Ownership Changes, are added to require contractors to notify the Government of changes in contractor ownership and their effects, and to emphasize existing recordkeeping requirements. These changes are intended to enable audit determinations that cost increases related to contractor ownership changes are not charged to Government contracts. The clause at 52.215-40 requires contractors to: (i) Notify the contracting officer when a change in contractor ownership, or a change in asset valuation or in any other costs related to an ownership change, occurs or is pending; and (ii) retain and continue to maintain, through successive changes in company ownership, asset inventory records currently

required under the FAR.

Item XII--Certificates of Competency (FAR Case 91-107)

FAR 19.000(b) and 19.601 are revised to clarify the applicability of Certificate of Competency procedures, making it clear that the statutory requirement to refer nonresponsibility determinations to the Small Business Administration is unrelated to a contracting agency's location.

Item XIII--Small Business Competitiveness Demonstration Program (FAR Case 92- 302)

This interim rule implements Title II of Pub. L. 102-366, the Small Business Credit and Business Opportunity Enhancement Act of 1992, which revises Title VII of Pub. L. 100-656, the Small Business Competitiveness Demonstration Program. Editorial amendments are made to FAR 19.1001. FAR 19.1006(b)(2) is

amended to specify that agencies may reinstate the use of small business set- asides as necessary to meet assigned goals, but only within the organizational unit(s) that failed to meet the small business goals. FAR 19.1005(a)(3) is amended to revise the description of Architect and Engineering services as a Designated Industry Group.

Item XIV--Small Business Concern Representation (FAR Case 91-61)

FAR 19.502-4(b) is amended to clarify that questions regarding the size status of offerors are matters of eligibility--not responsiveness--and must be referred to the SBA. FAR 52.219-1 is amended to remove the requirement for offerors to certify that all supplies to be furnished will be manufactured by a small business in the United States and to add a sentence to clarify that set-aside clauses contain restrictions on the source of end items to be furnished.

*67012 Item XV--Prohibition of Department of Labor Implementation/ Administration of Davis-Bacon Helper Regulations Pursuant to Fiscal Year 1994 Appropriation Act (FAR Case 93-618)

The Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council are implementing in the FAR the Department of Labor (DOL) suspension of its Davis-Bacon Act "Helper" regulations. The DOL regulations were suspended on October 21, 1993. A notice of suspension was published in

the Federal Register at 58 FR 58954, November 5, 1993.

Item XVI--Walsh-Healey Definitions (FAR Case 92-36)

FAR 22.606-2(b) is revised to add a reference to the alternate "regular dealer" qualification requirements for information systems integrators found in DOL regulations (41 CFR 50-201.101).

Item XVII--Section 4c Price Adjustments (FAR Case 93-609)

This final rule revises the FAR coverage at 22.1002-3, 22.1012-3, and 22.1012- 5 to clarify that the requirement for successor contractors on contracts over $2,500, for substantially the same services performed in the same locality, to pay wages and fringe benefits at least equal to those contained in any bona

fide collective bargaining agreement entered into under the predecessor contract, is self-executing. The requirement is not contingent upon incorporating a wage determination or the wage and fringe benefit terms of the predecessor contractor's collective bargaining agreement in the successor contract. However, the contracting officer shall incorporate the wage and

fringe benefit terms of the collective bargaining agreement itself in contract solicitations and may incorporate the terms or the agreement itself in other contract actions.

Item XVIII--Collective Bargaining Agreement, Contingency Clauses (FAR Case 92-

7)

This final rule revises the coverage at FAR 22.1002-3, 22.1008-3, and 22.1021. These changes are necessary to implement the direction contained in DOL Memorandums No. 159 and 166 concerning contingencies in collective bargaining agreements subject to section 4(c) of the Service Contract Act and requests for substantial variance hearing. This rule also makes editorial

changes to more accurately reflect DOL regulations on the Service Contract Act.

Item XIX--Cost Accounting Standards (FAR Case 92-18)

The interim rule issued in FAC 90-12, which amended the FAR based on the Cost Accounting Standards Board's recodification of the Cost Accounting Standards in 48 CFR Chapter 99, is converted to a final rule with revisions.

Item XX--CAS Applicability and Thresholds (FAR Case 93-27)

The revisions to the cost accounting standards made by the Cost Accounting Standards Board at 48 CFR Chapter 99 are incorporated into the FAR.

Item XXI--Advance Agreements, Composition of Total Cost, and Accounting for Unallowable Costs (FAR Case 91-45)

This final rule amends FAR 31.109, Advance agreements; 31.201-1, Composition of total cost; and 31.201-6, Accounting for unallowable costs. Language is added at 31.109(a) to address the use of advance agreements to clarify allowability issues under the specific cost principles, in order to minimize subsequent disputes. The current phrase in 31.109(a), "particularly for firms or their divisions that may not be under effective competitive constraints," is deleted because the determination of the reasonableness, allocability, or allowability of a cost under the specific cost principles is not significantly impacted by the business environment in which the industry operates. Changes in FAR 31.201-1 include deleting the word "allowable" in its first sentence; redesignating the existing paragraph as "(a)"; and inserting a new paragraph "(b)" which makes it clear that while the total cost of a contract includes all allocable costs, the total allowable costs on a Government contract are limited

to those allocable costs which are allowable pursuant to Part 31 and agency supplements. FAR 31.201-6(c) is revised to clarify that there is no intended difference in the accounting and presentation of unallowable costs between contracts which are covered by the Cost Accounting Standards and those which are not.

Item XXII--Postretirement Benefits--Transition Costs (FAR Case 91-42)

***

This item converts the interim rule concerning the treatment of costs for postretirement benefits other than pensions (PRB) which are attributable to employees' past service to a final rule. The interim rule was published in the Federal Register at 56 FR 41738, August 22, 1991, as Item IX of FAC 90-7. The interim rule changed FAR 31.205-6 to add a new paragraph (j)(3)(v), revised the first sentence of paragraph (j)(4), redesignated the existing paragraph (o)(4) as (o)(5), and added a new paragraph (o)(4). The final rule differs from the interim rule in that it amends FAR 31.205-6(o)(2) to allow costs generated using the terminal funding method permitted for CAS-covered contractors. Both terminal funding method and cash basis (pay-as-you-go) accounting are allowable assignment methods under CAS but are not sanctioned by Generally Accepted Accounting Principles. It is intended that the methods allowed by CAS for prefunding retiree insurance programs be allowable for all contractors. Subsequent paragraphs are redesignated as (o)(3) through (o)(6) with minor clarifications made in paragraphs (o)(3) and (5). A change is made in the clause at 52.215-39, Reversion or Adjustment of Plans for Postretirement Benefits Other Than Pensions (PRB), to reflect the change in paragraph numbering at 31.205-6(o).The amended cost principle provides guidance for any transfer of pension funds to another employee benefit fund. In effect, the cost principle requires any increase in current or future Government costs for the pension fund due to such a withdrawal to be offset by equivalent decreases in Government costs for the employee benefit fund receiving the transfer. Transfers made without an advance agreement shall be treated as if the contractor withdrew the funds and are subject to 31.205-6(j)(4), and the deposit to the receiving fund is subject to the cost allowability rules governing the receiving fund in regards to measurement and assignment of costs. Under 31.205-6(j)(4), the Government is

entitled to its equitable share of the gross amount withdrawn from pension fund assets. FAR 31.205-6(o)(5) limits the allowable amount of contractor PRB transition costs for any fiscal year to the amount which would be assigned to that year using the amortization method described in Financial Accounting

Standards Board Statement 106. This limitation is necessary because Government fiscal policy dictates that the past service cost element be amortized rather than immediately recognized.

Item XXIII--Advance Payment Reporting (FAR Case 93-309)

FAR 32.402(a) is revised to delete the requirement for submitting an advance

notice to Congress prior to making an advance payment exceeding $25 million.

*67013 Item XXIV--Defense Production Act Amendments (FAR Case 93-304)

This interim rule amends the FAR by adding FAR Subpart 34.1, Testing,

qualification and use of industrial resources developed under Title III, Defense Production Act (DPA), to implement pertinent provisions of the Defense Production Act Amendments of 1992 (Public Law 102-558). Title III of the DPA of 1950 authorizes various forms of Government assistance to encourage expansion of production capacity and supply of industrial resources essential to national defense. The DPA Amendments of 1992 provide for the testing, qualification, and use of industrial resources manufactured or developed with assistance provided under Title III of the DPA. This rule expresses Government policy to pay for such testing, and provides definitions, procedures, and a contract clause to implement the policy.

Item XXV--Defense Technical Information Center (FAR Case 93-29)

FAR 35.010, Scientific and technical reports, is revised to delete address

information and language instructing DoD contractors to send copies of

scientific and technical reports resulting from DoD contracts to Defense

Technical Information Center (DTIC). In addition, the address for the National

Technical Information Service is updated.

Item XXVI--Construction Contracting (FAR Case 90-62)

This final rule revises FAR Parts 36 and 52 by including a new section at

36.212, Preconstruction orientation, inserting a new clause at 52.236-26,

Preconstruction conference, and a new provision at 52.236-27, Site Visit

(Construction). The new clause and provision have previously been used by

military activities and are considered to be beneficial to contractors as well

as civilian and defense agencies.

Item XXVII--Child Care Services (FAR Case 91-106)

This interim rule amends FAR Part 37 to implement 42 U.S.C. 13041 by

adding a definition of "child care services" at 37.101 and adding language at

37.103(d) requiring contracting officers to ensure that contracts for child

care services include requirements for criminal history background checks on

employees who will perform child care services.

Item XXVIII--Final Indirect Cost Agreements (FAR Case 91-103)

FAR 42.705-2 and 52.216-13 are amended to eliminate the requirements for contractors to execute a Certificate of Current Cost or Pricing Data in conjunction with final indirect cost agreements on facilities contracts and for auditors to obtain a certificate under auditor determination procedures for final indirect cost rates.

Item XXIX--Consent to Subcontract (FAR Case 91-68)

FAR 44.201, 44.204, 52.244-1, and 52.244-2 are revised to eliminate the exception for contracting officer consent for major systems and subsystems. Instead, contracting officers are allowed to specify in the contract schedule all subcontracts for major systems, subsystems, or components needing special surveillance, for which consent to subcontract must be obtained by the prime

contractor.

Item XXX--Contractors' Purchasing Systems Reviews (FAR Case 90-53)

This final rule provides revisions to 44.302(b) and paragraphs (a) and (b) of 44.304. These revisions are in keeping with efforts to streamline the acquisition process and eliminate regulatory burdens on both contracting officers and contractors.

Item XXXI--Transfers of Government Property (FAR Case 90-34)

This final rule revises the FAR at 45.311 and 45.603 to ensure that Government property is transferred and documented properly.

Item XXXII--Commercial Bills of Lading Under Cost-Reimbursement Contracts Audit

by GSA (FAR Case 88-56)

FAR 47.104-4 is amended to prescribe the added clause at 52.247-67, Submission of Commercial Transportation Bills to the General Services Administration for Audit, in solicitations and contracts when a cost-reimbursement contract is contemplated and the contract or a first-tier cost-reimbursement subcontract

thereunder will authorize reimbursement of transportation as a direct charge to the contract or subcontract.

Item XXXIII--Qualification Requirements (FAR Case 92-612)

FAR 52.209-1(e) is revised to allow offerors to submit evidence of qualification prior to award of the contract, rather than with their offers. This change corrects an inconsistency between paragraphs (b) and (e) of the clause highlighted by the decision in Gardner Zemke Company, Comptroller General Decision B-238334, April 5, 1990.

Item XXXIV--Small Business and Small Disadvantaged Business Subcontracting

Plan (FAR Case 92-628)

FAR 52.219-9 is amended to state that a firm may rely on the information contained in the SBA Procurement Automated Source System (PASS) as an accurate representation of a concern's size and ownership characteristics for purposes of maintaining a small business source list and as its source list.

Item XXXV--Shipments to Ports and Air Terminals (FAR Case 91-11)

The provision at 52.247-51, Evaluation of Export Offers, now requires contracting officers to publish, with the solicitation, any available information on port handling and ocean charges for DoD water terminals. Several editorial and minor technical changes were also made to the provision.

Item XXXVI--Standard Form 18, Request for Quotation (FAR Case 91-84)

Standard Form 18, Request for Quotations, at 53.301-18, is revised by deleting the Small Business Concern Representation and the Notice of Small Business Small Purchase Set-Aside from the reverse of the form, and by adding the Standard Industrial Classification Code and small business size standard to the

face of the form. Corresponding changes were made to the face of the form for the contracting officer to indicate whether the Request for Quotations is a small business small purchase set-aside and whether additional provisions and representations are attached. Current versions of the two provisions should be

attached, when appropriate.

Item XXXVII--Revisions to Standard Form 1414 and 1415 (FAR Case 92-9)

Standard Form 1414, Consent of Surety, and Standard Form 1415, Consent of Surety and Increase of Penalty, are revised to accommodate consents by individual sureties and to provide space for dates of execution.

Item XXXVIII--Technical Amendments

Technical amendments have been made to FAR 1.105 to update the list of OMB approvals under the Paperwork Reduction Act.

Item XXXIX--Looseleaf Amendments

The following amendments are to the looseleaf edition of the FAR:

1. In 52.301, the Provision and Clause Matrix is reissued in its entirety with the following amendments:

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

Provision or clause Amendment to matrix

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

52.215-30 .......... In "UCF" Column , remove "I", insert "L'.

52.216-1 ........... In "IBR column" remove "Yes", insert "No".

52.219-15 .......... In "IBR column" remove "Yes", insert "No".

52.219-22 .......... In "UCF" column, remove "K", insert "L".

Alternate I following

52.222-35 ........ In "Prescribed In" column, remove "22.1308(c)" and insert "22.1308(a)".

52.225-8 and

52.225-9 ......... In "Prescribed In" columns,remove"25.407(a)(1)" and

"25.407(a)(2)", and insert "25.408(a)(1) and 25.408(a)(2), respectively.

52.225-16 .......... In "P or C" column, remove "C", insert "P"; and in "UCF" column, remove "I", insert "k". 52.225-18 and

52.225-19 ........ In "SP" column, remove "A" both times it appears.

52.227-2 ........... In "FP Con" column, add "A".

52.232-1 ........... In "LMV" column, remove "R".

52-233-1 ........... In "Prescribed in" column remove "33.214" and insert"

33.215".

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

*67014 2. The Corrections and Subscriptions Problems page found at the end of the FAR is reissued due to revisions in references and format.

Item XL--Annual Notice of Rates of Inflation

The Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council have agreed to publish as an information item, the rates of inflation which are used in conjunction with other factors to determine the allowability of IR&D/B&P costs for major contractors under 31.205- 18(c)(2)(i)(C)(2). These rates were issued by the Department of Defense Principal Deputy Comptroller in January 1994.

Federal Acquisition Circular 90-13, FAR Case 91-37, Item VII, published in the Federal Register at 57 FR 44264, September 24, 1992, provided the rates of inflation which were to be used to determine the allowability of IR&D/B&P costs for major contractors during the 3-year transition period FY 1993 through

1995. FAR 31.205-18(c)(2)(i)(C)(2) states that the annual rates of inflation will be published in the Federal Register on an annual basis. FAC 90-20, published in the Federal Register at 59 FR 11370, March 10, 1994, provided the rates of inflation for FY 1993 through 1996. The following rates of inflation are effective immediately, supersede those published in the

Federal Register on March 10, 1994, and shall remain in effect until superseded by the next publication:

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

Fiscal year Annual percentage rate

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

1993 ............................ 2.6

1994 ............................ 2.7

1995 ............................ 2.9

1996 ............................ 3.0

1997 ............................ 3.0

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

Dated: December 7, 1994.

Albert A. Vicchiolla,

Director, Office of Federal Acquisition Policy.

Federal Acquisition Circular

Number 90-23

Unless otherwise specified, all Federal Acquisition Regulation (FAR) and other directive material contained in FAC 90-23 are effective February 27, 1995, except for the following items:

Items XIII, XXIV, XXVII, and XXXVIII, which are effective December 28, 1994; and

Item XX, which is effective February 27, 1995, except for specific amendments, effective November 4, 1993, which are noted in the EFFECTIVE DATE. Dated: September 19, 1994.

Arthur E. Ronkovich,

Acting Associate Administrator, Office of Acquisition Policy, (GSA).

Dated: September 16, 1994.

Deidre A. Lee,

Associate Administrator for Procurement, NASA.

Dated: October 4, 1994.

Eleanor R. Spector,

Director, Defense Procurement.

[FR Doc. 94-30669 Filed 12-27-94; 8:45 am]

BILLING CODE 6820-34-P

END OF DOCUMENT

(59 FR 67014)

RULES and REGULATIONS

DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Part 1

[FAC 90-23; FAR Case 93-604; Item I]

Wednesday, December 28, 1994

RIN 9000-AF90

Federal Acquisition Regulation; Training for Contracting Personnel

Wednesday, December 28, 1994

*67014 AGENCIES: Department of Defense (DOD), General Services

Administration (GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Final rule.

SUMMARY: The Civilian Agency Acquisition Council (CAAC) and the Defense Acquisition Regulations Council (DARC) have agreed on a final rule to amend the Federal Acquisition Regulation (FAR) by, among other things, adding language that addresses the requirements of the Office of Management and Budget's Office of Federal Procurement Policy (OFPP) Policy Letter No.92-3, Procurement Professionalism Program Policy--Training for ContractingPersonnel, dated June 24, 1992. OFPP Policy Letter No. 92-3 contains standards for skill-based training in performing contracting and purchasing duties. This regulatory

action was not subject to OMB review under Executive Order 12866, dated September 30, 1993.

EFFECTIVE DATE: February 27, 1995.

FOR FURTHER INFORMATION CONTACT: Mr. Ralph DeStefano at (202) 501-1758 in reference to this FAR case. For general information, contact the FAR Secretariat, Room 4035, GS Building, Washington, DC 20405 (202) 501-4755. Please cite FAC 90-23, FAR case 93-604 in correspondence.

SUPPLEMENTARY INFORMATION:

A. Background

OFPP Policy Letter 92-3, Procurement Professionalism Program Policy--Training for Contracting Personnel, dated June 24, 1992, requires the CAAC and the DARC to conduct a thorough review of relevant parts of the FAR to (1) assure that the FAR contains no unintended encumbrances to the Policy Letter, and (2) that the FAR fully reflects the policies established by the Policy Letter. This amendment to FAR 1.603-1 implements in the FAR the policies established by the policy letter.

B. Regulatory Flexibility Act

The final rule does not constitute a significant FAR revision within the meaning of FAR 1.501 and Public Law 98-577, and publication for public comments is not required. Therefore, the Regulatory Flexibility Act does not apply. However, comments from small entities concerning the affected subpart will be considered in accordance with 5 U.S.C. 610. Such comments must be submitted

separately and cite 5 U.S.C. 601, et seq. (FAC 90-23, FAR case 93-604), in correspondence.

C. Paperwork Reduction Act

The Paperwork Reduction Act does not apply because the changes to the FAR do not impose recordkeeping or information collection requirements, or collections of information from offerors, contractors, or members of the public *67015 which require the approval of the Office of Management and Budget under 44 U.S.C. 3501, et seq.

List of Subjects in 48 CFR Part 1

Government procurement.

Dated: December 7, 1994.

Albert A. Vicchiolla,

Director, Office of Federal Acquisition Policy.

Therefore, 48 CFR part 1 is amended as set forth below:

PART 1--FEDERAL ACQUISITION REGULATIONS SYSTEM

1. The authority citation for 48 CFR part 1 continues to read as follows:

Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42 U.S.C. 2473(c).

2. The heading of subpart 1.6 is revised to read as follows:

Subpart 1.6--Career Development, Contracting Authority, and Responsibilities

2. Section 1.603-1 is revised to read as follows:

1.603-1 General.

Subsection 414(4) of title 41, United States Code, requires agency heads to establish and maintain a procurement career management program and a system for the selection, appointment, and termination of appointment of contracting officers. Agency heads or their designees may select and appoint contracting

officers and terminate their appointments. These selections and appointments shall be consistent with Office of Federal Procurement Policy's (OFPP) standards for skill-based training in performing contracting and purchasing duties as published in OFPP Policy Letter No. 92-3, Procurement Professionalism Program Policy--Training for Contracting Personnel, June 24, 1992.

[FR Doc. 94-30668 Filed 12-27-94; 8:45 am]

BILLING CODE 6820-34-P

END OF DOCUMENT

(59 FR 67015)

RULES and REGULATIONS

DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Part 4

[FAC 90-23; FAR Case 91-101; Item II]

RIN 9000-AF67

Federal Acquisition Regulation; Storage of Contract Files

Wednesday, December 28, 1994

*67015 AGENCIES: Department of Defense (DOD), General Services

Administration (GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Final rule.

SUMMARY: The Civilian Agency Acquisition Council (CAAC) and the Defense Acquisition Regulations Council (DARC) have approved language in the Federal Acquisition Regulation (FAR) to permit the use of various media (paper, electronic, microfilm, etc.) for the storage of official contract files by contractors and contracting and contract administration offices. This regulatory action was not subject to Office of Management and Budget review

under Executive Order 12866, dated September 30, 1993.

EFFECTIVE DATE: February 27, 1995.

FOR FURTHER INFORMATION CONTACT: Ms. Linda Klein at (202) 501-3775 in reference to this FAR case. For general information, contact the FAR Secretariat, room 4037, GS Building, Washington, DC 20405 (202) 501-4755. Please cite FAC 90-23, FAR case 91-101.

SUPPLEMENTARY INFORMATION:

A. Background

FAR Subparts 4.7 and 4.8 are revised to permit contractors and agencies to retain contract files in any medium (paper, electronic, microfilm, etc.) or any combination of media as long as the requirements of FAR Subpart 4.8 are satisfied. We also changed the title of Subpart 4.8 from "Contract Files" to "Government Contract Files" to better describe the contents ofthe subpart. This change will permit contractors and the Government to minimize the space required for storage of contract files and will provide ease of handling and retrieval of the records.

B. Regulatory Flexibility Act

The final rule does not constitute a significant FAR revision within the meaning of FAR 1.501 and Public Law 98-577, because the rule affects internal Government operating procedures in that it permits agencies to retain contract files in any medium (paper, electronic, microfilm, etc.) or any combination of media, as long as the requirements of FAR Subpart 4.8 are satisfied, and also allows contractors to adopt the same methods of storing contractfiles if they so desire. Publication for public comment is not required.Therefore, the Regulatory Flexibility Act does not apply. However, comments from small entities concerning the affected FAR subpart will be considered in accordance with 5 U.S.C. 610. Such comments must be submitted separately and cite 5 U.S.C. 601, et seq., (FAC 90-23, FAR case 91-101) in correspondence.

C. Paperwork Reduction Act

This rule does not impose any reporting or recordkeeping requirements or collection of information from offerors, contractors, or members of the public which require the approval of the Office of Management and Budget under 44 U.S.C. 3501, et seq.

List of Subjects in 48 CFR Part 4

Government procurement.

Dated: December 7, 1994.

Albert A. Vicchiolla,

Director, Office of Federal Acquisition Policy.

Therefore, 48 CFR part 4 is amended as set forth below:

PART 4--ADMINISTRATIVE MATTERS

1. The authority citation for 48 CFR part 4 continues to read as follows:

Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42 U.S.C. 2473(c).

2. Section 4.703 is amended by redesignating paragraph (d) as (e) and adding a new paragraph (d) to read as follows:

4.703 Policy.

* * * * *

(d) Contractors may retain records in any medium (paper, electronic, microfilm, etc.) or any combination of media, as long as the requirements of this subpart are satisfied. The process used to create and store records must record and reproduce the original document, including signatures and other written or graphic images, completely, accurately, and clearly. Data transfer, storage, and retrieval procedures shall protect the original data from alteration.

* * * * *

*67016 Subpart 4.8--Government Contract Files

3. The heading of Subpart 4.8 is revised to read as set forth above. 4. Section 4.802 is amended by adding a new paragraph (f) to read as follows:

4.802 Contract files.

* * * * *

(f) Agencies may retain contract files in any medium (paper, electronic, microfilm, etc.) or any combination of media, as long as the requirements of this subpart are satisfied.

5. Section 4.805 is amended by--

(a) revising the section heading;

(b) redesignating the introductory paragraph as paragraph (a) and revising the text;

(c) adding paragraph (b) before the table and (c) after the table;

(d) removing from the table under the "Document" column paragraph (c), and redesignating paragraphs (a) through (n) as (b)(1) through (13), respectively; and paragraphs (n)(1) and (2) as (b)(13)(i) and (ii), respectively;

(e) removing from newly-designated paragraph (b)(10) the reference "4.805(a)- (j)" and inserting "4.805(b)(1)-(9)" in its place;

(f) removing from newly-designated paragraph (b)(11) the reference "4.805(a)-(k)" and inserting "4.805(b)(1)-(10)" in its place; and

(g) removing from newly-designated paragraph (b)(1) under the "Retention Period" column the words "(b) through (n)" and inserting "(b)(2) through (13)"

in their place.The revised text reads as follows:

4.805 Storage, handling, and disposal of contract files.

(a) Agencies shall prescribe procedures for the handling, storing, and disposing of contract files. Such procedures shall take into account documents held in other than paper format, such as microfilm and various electronic media. The original medium on which the document was created may be changed to facilitate storage as long as the requirements of part 4, law and other

regulations are satisfied. The process used to create and store records must record and reproduce the original document, including signatures and other written and graphic images completely, accurately, and clearly. Data transfer, storage, and retrieval procedures shall protect the original data from

alteration. Unless law or other regulations require signed originals to be kept, they may be destroyed after the record copies on alternate media and copies reproduced from the record copy are verified to be accurate, complete and clear representations of the originals. Agency procedures for contract

file disposal shall include provisions that the documents specified in paragraph (b) of this section shall not be destroyed before the times indicated. When original documents have been converted to alternate media for storage, the requirements in paragraph (b) of this section shall apply to the record copies on the alternate media instead of the original documents.

(b) If administrative records are mixed with program records and cannot

be economically segregated, the entire file should be kept for the period of

time approved for the program records. Similarly, if documents, specified

below, are part of a subject or case file which documents activities different

from those specified below, they should be treated in the same manner as the

files of which they are a part.

* * * * *

(c) Documents listed in paragraph (b)(1) under "Document" shall not be

destroyed until final clearance or settlement.

[FR Doc. 94-30667 Filed 12-27-94; 8:45 am]

BILLING CODE 6820-34-P

END OF DOCUMENT

(9 FR 67016)

RULES and REGULATIONS

DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Part 5

[FAC 90-23; FAR Case 93-8; Item III]

RIN 9000-AF87

Federal Acquisition Regulation; National Security

Wednesday, December 28, 1994

*67016 AGENCIES: Department of Defense (DOD), General Services

Administration (GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Final rule.

SUMMARY: The Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council have agreed on a final rule to amend the Federal Acquisition Regulation (FAR) to clarify that the requirement for public announcement of contract awards over $3 million does not apply to contracts classified for national security purposes. This regulatory action was not subject to Office of Management and Budget review under Executive Order 12866, dated September 30, 1993.

EFFECTIVE DATE: February 27, 1995.

FOR FURTHER INFORMATION CONTACT: Ms. Shirley Scott at (202) 501-0168 in reference to this FAR case. For general information, contact the FAR Secretariat, room 4037, GS Building, Washington, DC 20405 (202) 501-4755. Please cite FAC 90-23, FAR case 93-8.

SUPPLEMENTARY INFORMATION:

A. Background

FAR 5.303(a) requires contracting officers to make information available on awards over $3 million (unless another dollar amount is specified in agency regulations) in sufficient time for the agency concerned to announce it by 5:00 p.m. Washington, DC time on the date of award. This final rule revises FAR 5.303(a) to indicate that the requirement for public announcement does not

apply to contracts exempted from synopsis in the Commerce Business Daily for reasons of national security.

B. Regulatory Flexibility Act

The final rule does not constitute a significant FAR revision within the meaning of FAR 1.501 and Public Law 98-577, and publication for public coment is not required. Therefore, the Regulatory Flexibility Act does not apply. However, comments from small entities concerning the affected subpart will be considered in accordance with 5 U.S.C. 610. Such comments must be submitted

separately and cite 5 U.S.C. 601, et seq. (FAC 90-23, FAR case 93-8), in correspondence.

C. Paperwork Reduction Act

The Paperwork Reduction Act does not apply because the changes to the FAR do not impose recordkeeping or information collection requirements, or collections of information from offerors, contractors, or members of the public which require the approval of the Office of Management and Budget under 44 U.S.C. 3501, et seq.

List of Subjects in 48 CFR Part 5

Government procurement.

Dated: December 7, 1994.

Albert A. Vicchiolla,

Director, Office of Federal Acquisition Policy.

Therefore, 48 CFR part 5 is amended as set forth below:

PART 5--PUBLICIZING CONTRACT ACTIONS

1. The authority citation for 48 CFR part 5 continues to read as follows:

Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42 U.S.C. 2473(c).

*67017 2. Section 5.303(a) is revised to read as follows:

5.303 Announcement of contract awards.

(a) Public announcement. Contracting officers shall make information available on awards over $3 million (unless another dollar amount is specified in agency acquisition regulations) in sufficient time for the agency concerned to announce it by 5:00 p.m. Washington, DC time on the day of award. Contracts excluded from this reporting requirement include[(1)] those placed with[] the Small Business Administration

under Section 8(a) of the SmallBusiness Act, [(2)] those placed with foreign firms when the place of delivery orperformance is outside the United States or its possessions, and (3) those for which synopsis was exempted under 5.202(a)(1). Agencies shall not release information on awards before the public release time of 5:00 p.m. Washington, DC time.

* * * * *

[FR Doc. 94-30666 Filed 12-27-94; 8:45 am]

BILLING CODE 6820-34-P

END OF DOCUMENT

(59 FR 67017)

RULES and REGULATIONS

DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 6, 8, 15, 41, and 52

[FAC 90-23; FAR Case 91-13; Item IV]

RIN 9000-AE48

Federal Acquisition Regulation; Acquisition of Utility Services

Wednesday, December 28, 1994

*67017 AGENCIES: Department of Defense (DOD), General Services

Administration (GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Final rule.

SUMMARY: The Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council have agreed on a final rule revising the FAR coverage dealing with utility services. This rule will replace the existing coverage concerning acquisition of utility services and will provide more comprehensive coverage applicable to all executive agencies. The current FAR coverage, in large measure, did not apply to the Department of Defense, and it also exempted agency regulatory requirements in the utility area that predated the establishment of the FAR. This regulatory action was not subject toOffice of Management and Budget review under Executive Order 12866, dated September 30, 1993.

EFFECTIVE DATE: February 27, 1995.

FOR FURTHER INFORMATION CONTACT: Mr. Edward Loeb at (202) 501-4547 in reference to this FAR case. For general information, contact the FAR Secretariat, room 4037, GS Building, Washington, DC 20405, (202) 501-4755. Please cite FAC 90- 23, FAR case 91-13.

SUPPLEMENTARY INFORMATION:

A. Background

In response to the need to provide more comprehensive utility coverage in the FAR, a major rewrite of the existing FAR coverage was undertaken. The principal changes are as follows:

(1) FAR Part 41 applies to all Executive agencies and will enableagencies to delete most utilities provisions from their agency FAR supplements. The current FAR Subpart 8.3 permitted agencies' procedures predating the FAR to continue to be used. In addition, Subpart 8.3 previously exempted DOD from much of the FAR coverage.

(2) Substantial additional guidance for contracting officers inacquiring and administering utility service contracts are included. (3) Additional definitions applicable to utility service contracts are established.

(4) Coverage is established delineating the existing statutory and delegated authority for utility service contracting. (5) FAR clauses to beused on a "substantially the same as" basis are established. (6) Substantive coverage providing for handling rate changes by the agencies is established. This coverage enables agencies to handle suchmatterswithout automatically referring them to GSA for action.

(7) Coverage is added providing generally for the use of standard forms for acquisition of utility services. (8) "Standard" specification formats have been established for use in acquiring utility services. Such formats will not be included in the FAR butwill be available for agency use.

(9) "Standard" annual utility service review formats have been established for use in acquiring utility services. Such formats willnot be included in the FAR but will be available for agency use.

B. Regulatory Flexibility Act

The changes may 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 a number of public utilities, especially rural electrical cooperatives, are small businesses. A Final Regulatory Flexibility Analysis (FRFA) has been prepared and will be provided to the Chief Counsel for Advocacy

for the Small Business Administration. A copy of the FRFA may be obtained from the FAR Secretariat. Comments from small entities concerning the affected FAR subpart will also be considered in accordance with 5 U.S.C. 610. Such comments must be submitted separately and cite 5 U.S.C 601, et seq. (FAC 90-23, FAR case

91-13) in correspondence.

C. Paperwork Reduction Act

The Paperwork Reduction Act (Pub. L. 96-511) applies because the final rule contains information collection requirements. A request for approval of a new information collection requirement concerning OMB Control Numbers 9000-0122 through 9000-0126, Acquisition of Utility Services, was submitted to the Office of Management and Budget under 44 U.S.C. 3501, et seq. The information collection was approved through March 31, 1995. Public comments concerning this request were invited through a Federal Register notice published on January 9, 1992.

(59 FR 67017, *67017)

D. Public Comments

On May 24, 1991, a proposed rule was published in the Federal Register (56 FR 23982). In response to the notice of proposed rulemaking, 263 public comments were received. The comments of all respondents were considered in developing this final rule. As a result, the following changes have been made:

(1) Changes have been made to the definitions of connection charge and franchise service territory and the definition of shared savings project has been deleted.

(2) The policies governing delegation of authority to contract for utility services have been revised.

(3) Changes have been made to the coverage dealing with a utility's refusal to enter into a contract.

(4) Changes have been made to the coverage providing for monthly and annual reviews of the utility invoices and or services.

(5) A number of the prescriptions for the solicitation provision and contract clauses have been modified.

(6) Numerous changes have been made to the contract clauses to address specific comments and to provide more flexibility for the contracting officer to tailor specific aspects to reflect the practices in that area.

*67018 (7) Other miscellaneous changes have been made.

List of Subjects in 48 CFR Parts 6, 8, 15, 41, and 52

Government procurement.

Dated: December 7, 1994.

Albert A. Vicchiolla,

Director, Office of Federal Acquisition Policy.

Therefore, 48 CFR parts 6, 8, 15, 41, and 52 are amended as set forth below:

1. The authority citation for 48 CFR parts 6, 8, 15, 41, and 52

continues to read as follows:

Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42 U.S.C. 2473(c).

PART 6--COMPETITION REQUIREMENTS

2. Section 6.302-1 is amended by revising paragraph (b)(3) to read as

follows:

6.302-1 Only one responsible source and no other supplies or services will satisfy agency requirements.

* * * * *

(b) * * *

(3) When acquiring utility services (see 41.101), circumstances may dictate that only one supplier can furnish the service (see 41.202); or when the contemplated contract is for construction of a part of a utility system and the utility company itself is the only source available to work on the system.

* * * * *

PART 8--REQUIRED SOURCES OF SUPPLIES AND SERVICES

3. Section 8.002 is amended by revising paragraph (b) to read as follows:

8.002 Use of other Government supply sources.

* * * * *

(b) Public utility services (see part 41 of this title).

* * * * *

Subpart 8.3 [Removed and Reserved]

4. Subpart 8.3, consisting of sections 8.300 through 8.309, is removed and reserved.

PART 15--CONTRACTING BY NEGOTIATION

15.812-2 [Amended]

5. Section 15.812-2 is amended in paragraph (a)(3) by removing the words "subpart 8.3" and inserting "part 41" in its place.

PART 41--ACQUISITION OF UTILITY SERVICES

6. Part 41, consisting of sections 41.100 through 41.702, is added to read as follows:

Sec.

Subpart 41.1--General

41.100 Scope of part.

41.101 Definitions.

41.102 Applicability.

41.103 Statutory and delegated authority.

Subpart 41.2--Acquiring Utility Services

41.201 Policy.

41.202 Procedures.

41.203 GSA assistance.

41.204 GSA areawide contracts.

41.205 Separate contracts.

41.206 Interagency agreements.

Subpart 41.3--Requests for Assistance

41.301 Requirements.

Subpart 41.4--Administration

41.401 Monthly and annual review.

41.402 Rate changes and regulatory intervention.

Subpart 41.5--Solicitation Provision and Contract Clauses

41.501 Solicitation provision and contract clauses.

Subpart 41.6--Forms

41.601 Utility services forms.

Subpart 41.7--Formats

41.701 Formats for utility service specifications.

41.702 Formats for annual utility service review.

Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42 U.S.C. 2473(c).

Subpart 41.1--General

41.100 Scope of part.

This part prescribes policies, procedures, and contract format for the acquisition of utility services. (See 41.102(b) for services that are excluded from this part.)

41.101 Definitions.

As used in this part, Areawide contract means a contract entered into between the General Services Administration (GSA) and a utility service supplier to cover utility service needs of Federal agencies within the franchise territory of the supplier. Each areawide contract includes an "Authorization" form for requesting service, connection, disconnection, or change in service.

Authorization means the document executed by the ordering agency and the utility supplier to order service under an areawide contract.

Connection charge means all nonrecurring costs, whether refundable or nonrefundable, to be paid by the Government to the utility supplier for the required connecting facilities, which are installed, owned, operated, and maintained by the utility supplier (see Termination liability). Delegated agency means an agency that has received a written delegation of authority from GSA to contract for utility services for periods not exceeding ten years (see 41.103(b)).

Federal Power and Water Marketing Agency means a Government entity that produces, manages, transports, controls, and sells electrical and water supply service to customers.

Franchise territory means a geographical area that a utility supplier has a right to serve based upon a franchise, a certificate of public convenience and necessity, or other legal means.Intervention means action by GSA or a delegated agency to formally participate

in a utility regulatory proceeding on behalf of all Federal executive agencies. Multiple service locations means the various locations or delivery points in the utility supplier's service area to which it provides service under a single contract.

Rates may include rate schedules, riders, rules, terms andconditions of service, and other tariff and service charges, e.g., facilities use charges. Separate contract means a utility services contract (other than a GSA areawide contract, an Authorization under an areawide contract, or an interagency agreement) to cover the acquisition of utility services.

Termination liability means a contingent Government obligation to pay a utility supplier the unamortized portion of a connection charge and any other applicable nonrefundable service charge as defined in the contract in the event the Government terminates the contract before the cost of connection facilities has been recovered by the utility supplier (see "Connection charge").

Utility service means a service such as furnishing electricity, natural or manufactured gas, water, sewerage, thermal energy, chilled water, steam, hot water, or high temperature hot water. The application of part 41 to other services (e.g., rubbish removal, snow removal) may be appropriate when the acquisition is not subject to the Service Contract Act of 1965 (see 37.107).

41.102 Applicability.

(a) Except as provided in paragraph (b) of this section, this part applies to the acquisition of utility services for the *67019 Government, including connection charges and termination liabilities.

(b) This part does not apply to--

(1) Utility services produced, distributed, or sold by another Federal agency. In those cases, agencies shall use interagency agreements (see 41.206);

(2) Utility services obtained by purchase, exchange, or otherwise bya Federal power or water marketing agency incident to that agency's marketingor distribution program;

(3) Cable television (CATV) and telecommunications services;

(4) Acquisition of natural or manufactured gas when purchased as a commodity;

(5) Acquisition of utilities services in foreign countries;

(6) Acquisition of rights in real property, acquisition of public utility facilities, and on-site equipment needed for the facility's own distribution system, or construction/maintenance of Government-owned facilities; or

(7) Third party financed shared-savings projects authorized by 42 U.S.C. 8287. However, agencies may utilize part 41 for any energy savings or purchased utility service directly resulting from implementation of a third party financed shared-savings project under 42 U.S.C. 8287 for periods not to exceed 25 years.

41.103 Statutory and delegated authority.

(a) Statutory authority. (1) The General Services Administration(GSA) is authorized by section 201 of the Federal Property and AdministrativeServices Act of 1949, as amended (40 U.S.C. 481), to prescribe policies andmethods governing the acquisition and supply of utility services for Federalagencies. This authority includes related functions such as managing publicutility services and representing Federal agencies in proceedings before Federal and

state regulatory bodies. GSA is authorized by section 201 of the Act to contract for utility services for periods not exceeding ten years.

(2) The Department of Defense (DOD) is authorized by 10 U.S.C. 2301, 2304, and 40 U.S.C. 474(3) to acquire utility services for military facilities. (3) The Department of Energy (DOE) is authorized by the Department of Energy Organization Act (42 U.S.C. 2751, et seq.) to acquire utility services. DOE is authorized by the Atomic Energy Act of 1954, as amended (42 U.S.C. 2204), to enter into new contracts or modify existing contracts for electric services for periods not exceeding 25 years for uranium enrichment installations. (b) Delegated authority. GSA has delegated its authority to enter into utility service contracts for periods not exceeding ten years to DODand DOE,

and for connection charges only to the Department of Veteran Affairs. Contracting pursuant to this delegated authority shall be consistentwith the requirements of this part. Other agencies requiring utility servicecontracts for periods over one year, but not exceeding ten years, may request a delegation of authority from GSA at the address specified in41.301(a). In keeping with its statutory authority, GSA will, as necessary, conduct reviews of delegated agencies' acquisitions of utility services to ensure compliance

with the terms of the delegation and applicable laws and regulations.

(c) Requests for delegations of contracting authority from GSA shall include a

certification from the acquiring agency's Senior Procurement Executive that the agency has--

(1) An established acquisition program; (2) Personnel technically qualified to deal with specialized utilities problems; and

(3) The ability to accomplish its own pre-award contract review.

Subpart 41.2--Acquiring Utility Services

41.201 Policy.

(a) Subject to paragraph (d) of this section, it is the policy ofthe Federal Government that agencies obtain required utility services from sources of supply which are most advantageous to the Government in terms of economy, efficiency, reliability, or service.

(b) Except for acquisitions below the small purchase limitation (see 13.000), agencies shall acquire utility services by a bilateral written contract, which must include the clauses required by 41.501, regardless of whether rates or terms and conditions of service are fixed or adjusted by a regulatory body. Agencies may not use the utility supplier's forms and clauses to avoid the

inclusion of provisions and clauses required by 41.501 or by statute. (See 41.202(c) for procedures to be used when the supplier refuses to execute a written contract.)

(c) Specific operating and management details, such as proceduresfor internal agency contract assistance and review, delegations of authority, and approval thresholds, may be prescribed by an individual agency subject to compliance with applicable statutes and regulations.

(d)(1) Section 8093 of the Department of Defense Appropriations Act of 1988, Pub. L. 100-202, provides that none of the funds appropriated by that Act or any other Act with respect to any fiscal year by any department, agency, or instrumentality of the United States, may be used for the purchase of electricity by the Government in any manner that is inconsistent with state law governing the providing of electric utility service, including state utility commission rulings and electric utility franchises or service territories established pursuant to state statute, state regulation, or state-approved

territorial agreements.

(2) The Act does not preclude--

(i) The head of a Federal agency from entering into a contract pursuant to 42 U.S.C. 8287 (which pertains to the subject of shared energy savings including cogeneration);

(ii) The Secretary of a military department from entering into acontract pursuant to 10 U.S.C. 2394 (which pertains to contracts for energy or fuel for military installations including the provision and operation of energy production facilities); or

(iii) The Secretary of a military department from purchasing electricity from any provider when the utility or utilities having applicable state-approved franchise or other service authorizations are found by the Secretary to be unwilling or unable to meet unusual standards for service reliability that are necessary for purposes of national defense.

(3) Additionally, the head of a Federal agency may--

(i) Consistent with applicable state law, enter into contracts for the purchase or transfer of electricity to the agency by a non-utility, including a qualifying facility under the Public Utility Regulatory Policies Act of 1978; (ii) Enter into an interagency agreement, pursuant to 41.206 and 17.5, with a Federal power marketing agency or the Tennessee Valley Authority for the transfer of electric power to the agency; and (iii) Enter into a contract with an electric utility under the authority or tariffs of the Federal Energy Regulatory Commission.

(e) Prior to acquiring electric utility services on a competitive basis, the contracting officer shall determine, with the advice of legal counsel, by a market survey or any other appropriate means, e.g. consultation with the state agency responsible for regulating public utilities, that such competition would not be inconsistent with state law governing the provision of electric utility service, including state utility commission rulings and electric utility franchises or service territories established pursuant to state statute, state regulation, or state-approved *67020 territorial agreements. Proposals from alternative electric suppliers must provide a representation that service can be provided in a manner not inconsistent with section 8093 of Public Law 100- 202 (see 41.201(d)). The representation must be supported with appropriate legal and factual rationale.

41.202 Procedures.

(a) Prior to executing a utility service contract, the contracting officer shall comply with parts 6 and 7 and 41.201 (d) and (e). In accordance with parts 6 and 7, agencies shall conduct market surveys and perform acquisition planning in order to promote and provide for full and open competition provided that the contracting officer determines that any resultant contract would not be inconsistent with applicable state law governing the provision of electric utility services. If competition for an entire utility service is not

available, the market survey may be used to determine tqqqq

he availability of competitive sources for certain portions of the requirement. The scope of the term "entire utility service" includes the provision of the utility service capacity, energy, water, sewage, transportation, standby or back-up service, transmission and/or distribution service, quality assurance, system

reliability, system operation and maintenance, metering, and billing.

(b) In performing a market survey (see 7.101), the contracting officer shall consider, in addition to alternative competitive sources, use of the following:

(1) GSA areawide contracts (see 41.204);

(2) Separate contracts (see 41.205); and

(3) Interagency agreements (see 41.206).

(c) When a utility supplier refuses to execute a tendered contract as outlined in 41.201(b), the agency shall obtain a written definite and final refusal signed by a corporate officer or other responsible official of the supplier (or if unobtainable, document any unwritten refusal), and transmit this document, along with statements of the reasons for the refusal and the record of negotiations, to GSA at the address specified at 41.301(a). Unless urgent and compelling circumstances exist, the contracting officer shall notify GSA prior to acquiring utility services without executing a tendered contract. After such notification, the agency may proceed with the acquisition andpay for the utility service under the provisions of 31 U.S.C. 1501(a)(8)--

(1) By issuing a purchase order in accordance with subpart 13.5; or

(2) By ordering the necessary utility service and paying for it upon the presentation of an invoice, provided that a determination is approved by the head of the contracting activity that a written contract cannot be obtained and that the issuance of a purchase order is not feasible.

(d) When obtaining service without a bilateral written contract, the

contracting officer shall establish a utility history file on each acquisition of utility service provided by a contractor. This utility history file shall contain, in addition to applicable documents in 4.803, the following information:

(1) The unsigned, tendered contract and any related letter of transmittal.

(2) The reasons stated by the utility supplier for not executing the tendered contract, the record of negotiations, and a written definite and final refusal by a corporate officer or other responsible official of the supplier (or if unobtainable, documentation of unwritten refusal).

(3) Services to be furnished and the estimated annual cost.

(4) Historical record of any applicable connection charges.

(5) Historical record of any applicable ongoing capital credits.

(6) A copy of the applicable rate schedule.

(e) If the Government obtains utility service pursuant to paragraph (c) of this section, the contracting officer shall, on an annual basis beginning from the date of final refusal, take action to execute a bilateral written contract. The contracting officer shall document the utility history file with the efforts made and the agency shall notify GSA, in writing, if the utility continues to refuse to execute a bilateral contract.

41.203 GSA assistance.

(a) GSA will, upon request, provide technical and acquisition assistance, or will delegate its contracting authority for the furnishing of the services described in this part for any Federal agency, mixed-ownership Government corporation, the District of Columbia, the Senate, the House of Representatives, or the Architect of the Capitol and any activity under the Architect's direction.

(b) Agencies seeking assistance shall provide, upon request by GSA, the information listed in 41.301.

41.204 GSA areawide contracts.

(a) Purpose. GSA enters into areawide contracts (see 41.101) for use by Federal agencies. Areawide contracts provide a pre-established contractual vehicle for ordering utility services under the conditions in paragraph (c)(1) of this section.

(b) Features. (1) Areawide contracts generally provide for orderingutility service at rates approved and/or established by a regulatory body andpublished in a tariff or rate schedule. However, agencies are permitted tonegotiate other rates and terms and conditions of service with the supplier(see paragraph (c) of this section). Rates other than those published mayrequire the approval of the regulatory body. (2) Areawide contracts are negotiated with utility service supp provision of service within the supplier's franchise territory or service area.

(3) Due to the regulated nature of the utility industry, as well as

statutory restrictions associated with the procurement of electricity (see 41.201(d)), competition is typically not available within the entire geographical area covered by an areawide contract, although it may be available at specific locations within the utility's service area. When competing suppliers are available, the provisions of paragraph (c)(1) of this section apply.

(c) Procedures for obtaining service. (1) Any Federal agency having a

requirement for utility services within an area covered by an areawide contract shall acquire services under that areawide contract unless--

(i) Service is available from more than one supplier; or

(ii) The head of the contracting activity or designee otherwise determines that use of the areawide contract is not advantageous to the Government. If service is available from more than one supplier, service shall be acquired using competitive acquisition procedures (see 41.202(a)). The determination required by paragraph (c)(1)(ii) of this section shall be documented in the contract file with an information copy furnished to GSA at the address in 41.301(a).

(2) Each areawide contract includes an authorization form for ordering service, connection, disconnection, or change in service. Upon execution of an authorization by the contracting officer and utility supplier, the utility

supplier is required to furnish services, without furthernegotiation, at the current, applicable published or unpublished rates, unless other rates, and/or terms and conditions are separately negotiated by the Federal agency with the supplier.

(3) The contracting officer shall execute the Authorization, and attach it to a Standard Form (SF) 26, Award/Contract, along with any modifications such as connection charges, special facilities, or service arrangements. The contracting officer shall also attach any specific fiscal, operational, and *67021 administrative requirements of the agency, applicable rate schedules, technical information and detailed maps or drawings of delivery points, details on Government ownership, maintenance, or repair of facilities, and other information deemed necessary to fully define the service conditions in the

Authorization/contract.

(d) List of areawide contracts. A list of current GSA areawide contracts is available from the GSA office specified at 41.301(a). The list identifies the types of services and the geographic area served. A copy of the contract may also be obtained from this office.

(e) Notification. Agencies shall provide GSA at the address specified at 41.301(a) a copy of each SF 26 and executed Authorization issued under an areawide contract within 30 days after execution.

41.205 Separate contracts.

(a) In the absence of an areawide contract or interagency agreement (see 41.206), agencies shall acquire utility services by separate contract subject to this part, and subject to agency contracting authority.

(b) If an agency enters into a separate contract, the contracting

officer shall document the contract file with the following information:

(1) The number of available suppliers.

(2) Any special equipment, service reliability, or facility requirements and related costs.

(3) The utility supplier's rates, connection charges, and termination liability.

(4) Total estimated contract value (including costs in subparagraphs (b) (2) and (3) of this subsection).

(5) Any technical or special contract terms required.

(6) Any unusual characteristics of services required.

(7) The utility's wheeling or transportation policy for utility service.

(c) If requesting GSA assistance with a separate contract, the requesting agency shall furnish the technical and acquisition data specified in 41.205(b), 41.301, and such other data as GSA may deem necessary. (d) A contract exceeding a 1-year period, but not exceeding ten years (except pursuant to 41.103), may be justified, and is usually required, where any of the following circumstances exist:

(1) The Government will obtain lower rates, larger discounts, or more favorable terms and conditions of service;

(2) A proposed connection charge, termination liability, or any other facilities charge to be paid by the Federal Government will be reduced or eliminated; or

(3) The utility service supplier refuses to render the desired service except under a contract exceeding a 1-year period.

41.206 Interagency agreements.

Agencies shall use interagency agreements (e.g., consolidated purchase, joint use, or cross-service agreements) when acquiring utility service or facilities from other Government agencies and shall comply with the policies and procedures at subpart 17.5, Interagency Acquisitions under the Economy Act.

Subpart 41.3--Requests for Assistance

41.301 Requirements.

(a) Requests for delegations of GSA contracting authority, assistance with a proposed contract as provided in 41.203, and the submission of other information required by this part, shall be sent or submitted to the General Services Administration (GSA) region in which service is required. The names and locations of GSA regional offices are available from the Public Utilities Division (PPU), Public Buildings Service, Washington, DC 20405. (b) Requests for contracting assistance for utility services shall be sent not later than 120 days prior to the date new services are required to commence an existing contract will expire. Requests for assistance shall contain the

following information:

(1) A technical description or specification of the type, quantity, and quality of service required, and a delivery schedule.

(2) A copy of any service proposal or proposed contract.

(3) Copies of all current published or unpublished rates of the utility supplier.

(4) Identification of any unusual factors affecting the acquisition.

(5) Identification of all available sources or methods of supply, an analysis of the cost effectiveness of each, and a statement of the ability of each source to provide the required services, including the location and a description of each available supplier's facilities at the nearest point of service, and the cost of providing or obtaining necessary backup and other ancillary services.

(c) For new utility service requirements, the agency shall furnish the information in paragraph (a) of this section and the following as applicable:

(1) The date initial service is required.

(2) For the first 12 months of full service, estimated maximum demand, monthly consumption, other pertinent information (e.g., demand side management, load or energy management, peak shaving, on site generation, load shaping), and annual cost of the service.

(3) Known or estimated time schedule for growth to ultimate requirements.

(4) Estimated ultimate maximum demand and ultimate monthly consumption.

(5) A simple schematic diagram or line drawing showing the meter locations, the location of the new utility facilities to be constructed on Federal property by the Federal agency, and any required new connectionfacilities on either side of the delivery point to be constructed by the utility supplier to provide the new services. (6) Accounting and appropriation data to cover the required utility services and any connection charges required to be paid by the agency receiving such utility services.

(7) The following data concerning proposed facilities and related charges or costs:

(i) Proposed refundable or nonrefundable connection charge,termination liability, or other facilities charge to be paid by the agency,together with a description of the supplier's proposed facilities and estimatedconstruction costs, and its rationale for the charge (e.g., tariff provisions or policies).

(ii) A copy of the acquiring agency's estimate to make its own connection to the supplier's facilities through use of its own resources or by separate contract. When feasible, the acquiring agency shall provide its estimates to construct and operate its own utility facilities in lieu of participating in a cost-sharing construction program with the proposed utility supplier.

(d) For existing utility service, the agency shall furnish GSA the information

in paragraph (b) of this section and the following, as applicable:

(1) A copy of the most recent 12-months' service invoices.

(2) A tabulation, by month, for the most recent 12 months, showing the actual utility demands, consumption, connection charges, fuel adjustment charges, and the average monthly cost per unit of consumption. (3) An estimate, by month, for the next 12 months, showing the estimated maximum demands, monthly consumption, other pertinent information (e.g., demand side management, load or energy management, peak shaving, on site generation,

load shaping), and annual cost of the service.

(4) Accounting and appropriation data to cover the costs for the continuation of utility services.

*67022 (5) A statement noting whether the transformer, or other system components, on either side of the delivery point are owned by the Federal agency or the utility supplier, and if the metering is on the primary or secondary side of the transformer.

Subpart 41.4--Administration

41.401 Monthly and annual review.

Agencies shall review utility service invoices on a monthly basis and all utility accounts, with annual values exceeding the small purchase threshold, on an annual basis. Annual reviews of accounts with annual values beneath the small purchase dollar threshold shall be conducted when deemed advantageous to the Government. The purpose of the monthly review is to ensure the accuracy of utility service invoices. The purpose of the annual review is to ensure that the utility supplier is furnishing the services to each facility

under the utility's most economical, applicable rate and to examine competitive markets for more advantageous service offerings. The annual review shall be based upon the facility's usage, conditions and characteristics ofservice at each individual delivery point for the most recent 12 months. If amore advantageous rate is appropriate, the Federal agency shall requestthe supplier to make such rate change immediately.

41.402 Rate changes and regulatory intervention.

(a) When a change is proposed to rates or terms and conditions of service to the Government, the agency shall promptly determine whether the proposed change is reasonable, justified, and not discriminatory.

(b) If a change is proposed to rates or terms and conditions of service that may be of interest to other Federal agencies, and intervention before a regulatory body is considered justified, the matter shall be referred to GSA. The agency may request from GSA a delegation of authority for the agency to intervene on behalf of the consumer interests of the Federal executive agencies (see 41.301).

(c) Pursuant to 52.241-7, Change in Rates or Terms and Conditions of Service for Regulated Services, if a regulatory body approves a rate change, any rate change shall be made a part of the contract by unilateral contract modification or otherwise documented in accordance with agency procedures. The approved applicable rate shall be effective on the date determined by the regulatory body and resulting rates and charges shall be paid promptly to avoid late payment provisions. Copies of the modification containing the approved rate change shall be sent to the agency's paying office or office responsible for verifying billed amounts (see 41.401).

(d) If the utility supplier is not regulated and the rates, terms, and conditions of service are subject to negotiation pursuant to the clause at 52.241-8, Change in Rates or Terms and Conditions of Service for Unregulated Services, any rate change shall be made a part of the contract by contract modification, with copies sent to the agency's paying office or office responsible for verifying billed amounts.

Subpart 41.5--Solicitation Provision and Contract Clauses

41.501 Solicitation provision and contract clauses.

(a) Because the terms and conditions under which utility suppliers furnish service may vary from area to area, the differences may influence the terms and conditions appropriate to a particular utility's contracting situation. To accommodate requirements that are peculiar to the contracting situation, this section prescribes provisions and clauses on a "substantially the same as" basis (see 52.101) which permits the contracting officer to prepare and utilize

variations of the prescribed provision and clauses in accordance with agency procedures.

(b) The contracting officer shall insert in solicitations for utility services a provision substantially the same as the provision at 52.241-1, Electric Service Territory Compliance Representation, when proposals from alternative electric suppliers are sought.

(c) The contracting officer shall insert in solicitations and contracts for utility services clauses substantially the same as the clauses at--

(1) 52.241-2, Order of Precedence--Utilities;

(2) 52.241-3, Scope and Duration of Contract;

(3) 52.241-4, Change in Class of Service;

(4) 52.241-5, Contractor's Facilities; and

(5) 52.241-6, Service Provisions.

(d) The contracting officer shall insert clauses substantially the same as the clauses listed below in solicitations and contracts under theprescribed conditions-- (1) 52.241-7, Change in Rates or Terms and Conditions of Service for Regulated Services, when the utility services are subject to a regulatory body. (Except for GSA areawide contracts, the contracting officer shall insert in the blank space provided in the clause the name of the contracting officer. For GSA areawide contracts, the contracting officer shall insert the following: "GSA and each areawide customer with annual billings that exceed $250,000.")

(2) 52.241-8, Change in Rates or Terms and Conditions of Service for

Unregulated Services, when the utility services are not subject to a regulatory body.

(3) 52.241-9, Connection Charge, when a refundable connection charge is required to be paid by the Government to compensate the contractor for furnishing additional facilities necessary to supply service. (Use Alternate I to the clause if a nonrefundable charge is to be paid. When conditions require the incorporation of a nonrecurring, nonrefundable service charge or a termination liability, see paragraphs (f) and (i) of this section.)

(4) 52.241-10, Termination Liability, when payment is to be made to the contractor upon termination of service in conjunction with or in lieu of a connection charge upon completion of the facilities.

(5) 52.241-11, Multiple Service Locations (as defined in 41.101), when providing for possible alternative service locations, except under areawide contracts, is required.

(6) 52.241-12, Nonrefundable, Nonrecurring Service Charge, when the Government is required to pay a nonrefundable, nonrecurring membership fee, a charge for initiation of service, or a contribution for the cost of facilities construction. The Government may provide for inclusion of such agreed amount or fee as a part of the connection charge, a part of the initial payment for services, or as periodic payments to fulfill the Government's obligation.

(7) 52.241-13, Capital Credits, when the Federal Government is a member of a cooperative and is entitled to capital credits, consistent with the bylaws and governing documents of the cooperative.

(e) Depending on the conditions that are appropriate for each acquisition, the contracting officer shall also insert in solicitations and contracts for utility services the provisions and clauses prescribed elsewhere in the FAR.

Subpart 41.6--Forms

41.601 Utility services forms.

(a) If acquiring utility services under other than an areawide contract, a purchase order, or an interagency agreement, the Standard Form (SF) 33, Solicitation, Offer and Award; SF 26, Award/Contract; or SF 1447, Solicitation/Contract, shall be used.

*67023 (b) The contracting officer shall incorporate the applicable rate schedule in each contract, purchase order or modification.

Subpart 41.7--Formats

41.701 Formats for utility service specifications.

(a) The following specification formats for use in acquiring utility services are available from the address specified at 41.301(a) and may be used and modified at the agency's discretion:

(1) Electric service.

(2) Water service.

(3) Steam service.

(4) Sewage service.

(5) Natural gas service.

(b) Contracting officers may modify the specification format referenced in paragraph (a) of this section and attach technical items, details on Government ownership of facilities and maintenance or repair obligations, maps or drawings of delivery points, and other information deemed necessary to fullydefine the service conditions. (c) The specifications and attachments (see paragraph (b) of this section) shall be inserted in Section C of the utility service solicitation and contract.

41.702 Formats for annual utility service review.

(a) Formats for use in conducting annual reviews of the following utility services are available from the address specified at 41.301(a) and may be used at the agency's discretion:

(1) Electric service.

(2) Gas service.

(3) Water and sewage service.

(b) Contracting officers may modify the annual utility service review format as necessary to fully cover the service used.

PART 52 SOLICITATION PROVISIONS AND CONTRACT CLAUSES

52.208-3 [Removed and Reserved]

6. Section 52.208-3 is removed and reserved.

7. Sections 52.241 through 52.241-13 are added to read as follows:

52.241 Utility services provisions and clauses.

52.241-1 Electric service territory compliance representation.

As prescribed in 41.501(b), insert a provision substantially the same as the following:

Public Law 100-202, Electric Service Territory Compliance Representation (Feb.

1995)

(a) The Offeror represents as part of its offer that the Offeror's sale of electricity in accordance with the terms and conditions of this solicitation is [ ] is not [ ] consistent with Public Law 100-202, section 8093.

(b) The Offeror's supporting rationale is as follows:

(End of provision)

52.241-2 Order of precedence-utilities.

As prescribed in 41.501(c)(1), insert a clause substantially the same as the

following:

Order of Precedence-Utilities (Feb. 1995)

In the event of any inconsistency between the terms of this contract (including the specifications) and any rate schedule, rider, or exhibit incorporated in this contract by reference or otherwise, or any of the Contractor's rules and regulations, the terms of this contract shall control. (End of clause)

52.241-3 Scope and duration of contract.

As prescribed in 41.501(c)(2), insert a clause substantially the same as the following:

Scope And Duration of Contract (Feb. 1995)

(a) For the period

, [insert period of service] the Contractor agrees to furnish andthe

Government agrees to purchase [insert type of service] utility service in accordance with the applicable tariff(s), rules, and regulations as approved by the applicable governing regulatory body and as set forth in the contract.

(b) It is expressly understood that neither the Contractor nor the Government is under any obligation to continue any service under the terms and conditions of this contract beyond the expiration date.

(c) The Contractor shall provide the Government with one complete set of rates, terms, and conditions of service which are in effect as of the date of this contract and any subsequently approved rates.

(d) The Contractor shall be paid at the applicable rate(s) under the tariff and the Government shall be liable for the minimum monthly charge, if any, specified in this contract commencing with the period in which service is initially furnished and continuing for the term of this contract. Any minimum monthly charge specified in this contract shall be equitably prorated for the periods in which commencement and ermination of this contract become effective.

(End of clause)

52.241-4 Change in class of service.

As prescribed in 41.501(c)(3), insert a clause substantially the same as the following:

Change in Class of Service (Feb. 1995)

(a) In the event of a change in the class of service, such service shall be provided at the Contractor's lowest available rate schedule applicable to the class of service furnished.

(b) Where the Contractor does not have on file with the regulatory body approved rate schedules applicable to services provided, no clause in this contract shall preclude the parties from negotiating a rate schedule applicable to the class of service furnished.

(End of clause)

52.241-5 Contractor's facilities.

As prescribed in 41.501(c)(4), insert a clause substantially the same as the following:

Contractor's Facilities (Feb. 1995)

(a) The Contractor, at its expense, unless otherwise provided for in this contract, shall furnish, install, operate, and maintain all facilities required to furnish service hereunder, and measure such service at the point of delivery specified in the Service Specifications. Title to all such facilities shall remain with the Contractor and the Contractor shall be responsible for loss or damage to such facilities, except that the Government shall be responsible to the extent that loss or damage has been caused by the Government's negligent acts or omissions.

(b) Notwithstanding any terms expressed in this clause, theContractor shall obtain approval from the Contracting Officer prior to any equipment installation, construction, or removal. The Government hereby grants to the Contractor, free of any rental or similar charge, but subject to the limitations specified in this contract, a revocable permit or license to enter the service location for any proper purpose under this contract. This permit or license includes use of the site or sites agreed upon by the parties hereto for the installation, operation, maintenance, and repair of thefacilities of the Contractor required to be located upon Government premises. Allapplicable taxes and other charges in connection therewith, together with allliability of the Contractor in construction, operation, maintenance and repair of such facilities, shall be the obligation of the Contractor.

(c) Authorized representatives of the Contractor will be allowed access to the facilities on Government premises at reasonable times to perform the obligations of the Contractor regarding such facilities. It is expressly understood that the Government may limit or restrict the right of access herein granted in any manner considered necessary (e.g., national security, public safety).

(d) Unless otherwise specified in this contract, the Contractor shall, at its expense, remove such facilities and restore Government premises to their original condition as near as practicable within a reasonable time after the Government terminates this contract. In the event such termination of this contract is due to the fault of the Contractor, such facilities may be retained in place at the option of the Government for a reasonable time while the Government attempts to obtain service elsewhere comparable to that provided for hereunder.

(End of clause)

52.241-6 Service provisions.

As prescribed in 41.501(c)(5), insert a clause substantially the same as the following:

Service Provisions (Feb 1995)

(a) Measurement of service. (1) All service furnished by the Contractor shall be measured by suitable metering equipment of standard manufacture, to be furnished, installed, maintained, repaired, calibrated, and read by the Contractor at its expense. When more than a single meter is installed at a service location, the readings thereof may be billed conjunctively, if appropriate. In the event any meter fails to register (or registers incorrectly) the service furnished, the parties shall agree upon the length of

time of meter malfunction and the quantity of service delivered during such period of time. An appropriate adjustment shall be made to the next invoice for the purpose of correcting such errors. However, any meter which registers not more than __ percent slow or fast shall be deemed correct.

(2) The Contractor shall read all meters at periodic intervals of

approximately 30 days or in accordance with the policy of the cognizant regulatory body or applicable bylaws. All billings based on meter readings of less than __ days shall be prorated accordingly.

(b) Meter test. (1) The Contractor, at its expense, shall periodically inspect and test Contractor-installed meters at intervals not exceeding __ year(s). The Government has the right to have representation during the inspection and test.

(2) At the written request of the Contracting Officer, the Contractor shall make additional tests of any or all such meters in the presence of Government representatives. The cost of such additional tests shall be borne by the Government if the percentage of errors is found to be not more than _________ percent slow or fast.

(3) No meter shall be placed in service or allowed to remain in service which has an error in registration in excess of __ percent under normal operating conditions.

(c) Change in volume or character. Reasonable notice shall be given by the Contracting Officer to the Contractor regarding any material changes anticipated in the volume or characteristics of the utility service required at each location.

(d) Continuity of service and consumption. The Contractor shall use

reasonable diligence to provide a regular and uninterrupted supply of service at each service location, but shall not be liable for damages, breach of contract or otherwise, to the Government for failure, suspension, diminution, or other variations of service occasioned by or in consequence of any cause beyond the control of the Contractor, including but not limited to acts of God or of the public enemy, fires, floods, earthquakes, or other catastrophe, strikes, or failure or breakdown of transmission or other facilities. If any such failure, suspension, diminution, or other variation of service shall aggregate more than __ hour(s) during any billing period hereunder, an equitable adjustment shall be made in the monthly billing specified inthis contract (including the minimum monthly charge).

(End of clause)

52.241-7 Change in rates or terms and conditions of service for regulated services.

As prescribed in 41.501(d)(1), insert a clause substantially the same as the following:

Change In Rates or Terms and Conditions of Service for Regulated Services (Feb 1995)

(a) This clause applies to the extent services furnished under this contract are subject to regulation by a regulatory body. The Contractor agrees to give *__________ written notice of (1) the filing of an application for change in rates or terms and conditions of service concurrently with the filing of the application and (2) any changes pending with the regulatory body as of the date of contract award. Such notice shall fully describe the proposed change. If, during the term of this contract, the regulatory body having jurisdiction approves any changes, the Contractor shall forward to the Contracting Officer a copy of such changes within 15 days after the effective date thereof. The Contractor agrees to continue furnishing service under this contractin accordance with the amended tariff, and the Government agrees to payfor such service at the higher or lower rates as of the date when such ratesare made effective.

(b) The Contractor agrees that throughout the life of this contract the applicable published and unpublished rate schedule(s) shall not be in excess of the lowest cost published and unpublished rate schedule(s) available to any other customers of the same class under similar conditions of use and service. (c) In the event that the regulatory body promulgates any regulation

concerning matters other than rates which affects this contract, the Contractor shall immediately provide a copy to the Contracting Officer. The Government shall not be bound to accept any new regulation inconsistent with Federal laws or regulations.

(d) Any changes to rates or terms and conditions of service shall be made a part of this contract by the issuance of a contract modification unless otherwise specified in the contract. The effective date of the change shall be the effective date by the regulatory body. Any factors not governed by the regulatory body will have an effective date as agreed to by the parties. (End of clause)

*Note: Insert language prescribed in 41.501(d)(1)

52.241-8 Change in rates or terms and conditions of service for unregulated services.

As prescribed in 41.501(d)(2), insert a clause substantially the same as the following:

Change in Rates or Terms and Conditions of Service For Unregulated Services

(Feb 1995)

(a) This clause applies to the extent that services furnished hereunder are not subject to regulation by a regulatory body.

(b) After __________ [insert date], either party may request achange in rates or terms and conditions of service, unless otherwise provided in this contract. Both parties agree to enter in negotiations concerning such changes upon receipt of a written request detailing the proposed changes and specify the reasons for the proposed changes.

(c) The effective date of any change shall be as agreed to by the parties. The Contractor agrees that throughout the life of this contract the rates so negotiated will not be in excess of published and unpublished rates charged to any other customer of the same class under similar terms and conditions of use and service.

(d) The failure of the parties to agree upon any change after a reasonable period of time shall be a dispute under the Disputes clause of this contract. (e) Any changes to rates, terms, or conditions as a result of such

negotiations shall be made a part of this contract by the issuance of a contract modification.

(End of clause)

52.241-9 Connection charge.

As prescribed in 41.501(d)(3), insert a clause substantially the same as the following:

Connection Charge (Feb. 1995)

(a) Charge. In consideration of the Contractor furnishing and installing at its expense the new connection facilities described herein, the Government shall pay the Contractor a connection charge. The payment shall be in the form of progress payments, advance payments or as a lump sum, as agreed to by the parties and as permitted by applicable law. The total amount payable shall be either the estimated cost of $___ less the agreed to salvage value of $___,or

the actual cost less the salvage value, whichever is less. As acondition precedent to final payment, the Contractor shall execute a release ofany claims against the Government arising under or by the virtue of such installation.

(b) Ownership, operation, maintenance and repair of new facilities to be provided. The facilities to be supplied by the Contractor under this clause, notwithstanding the payment by the Government of a connection charge, shall be and remain the property of the Contractor and shall, at all times during the life of this contract or any renewals thereof, be operated, maintained, and repaired by the Contractor at its expense. All taxes and other charges in connection therewith, together with all liability arising out of the

construction, operations, maintenance, or repair of such facilities,shall be the obligation of the Contractor. (c) Credits. (1) The Contractor agrees to allow the Government, on each monthly bill for service furnished under this contract to the service location, a credit of ____ percent of the amount of each such bill as rendered until the accumulation of credits shall equal the amount of such connection charge, provided that the Contractor may at any time allow a credit up to 100 percent of the amount of each such bill.

(2) In the event the Contractor, before any termination of this contract but after *67025 completion of the facilities provided for in this clause, serves any customer other than the Government (regardless of whether the Government is being served simultaneously, intermittently, or not at all) by means of these facilities, the Contractor shall promptly notify the Government in writing. Unless otherwise agreed by the parties in writing at that time, the Contractor shall promptly accelerate the credits provided for under subparagraph (c)(1) of this clause, up to 100 percent of each monthly bill until there is refunded the amount that reflects the Government'sconnection costs for that portion of the facilities used in serving others.

(3) In the event the Contractor terminates this contract, or defaults in performance, prior to full credit of any connection charge paid by the Government, the Contractor shall pay to the Government an amount equal to the uncredited balance of the connection charge as of the date of the termination or default.

(d) Termination before completion of facilities. The Government reserves the right to terminate this contract at any time before completion of the facilities with respect to which the Government is to pay a connection charge. In the event the Government exercises this right, the Contractor shall be paid the cost of any work accomplished, including direct and indirect costs reasonably allocable to the completed work prior to the time of termination by the Government, plus the cost of removal, less the salvage value. (e) Termination after completion of facilities. In the event the Government terminates this contract after completion of the facilities with respect to which the Government has paid a connection charge, but before the crediting in full by the Contractor of any connection charge in accordance with the terms of this contract, the Contractor shall have the following options:

(1) To retain in place for ____ months after the notice of termination by the Government such facilities on condition that--

(i) If, during such ____ month period, the Contractor serves any other customer by means of such facilities, the Contractor, shall, in lieu of allowing credits, pay the Government during such period installments in like amount, manner, and extent as the credit provided for under paragraph (c) of this clause before such termination; and

(ii) Immediately after such ____ month period the Contractor shall promptly pay in full to the Government the uncredited balance of the connection charge. (2) To remove such facilities at the Contractor's own expense

within ____ months after the effective date of the termination by the

Government. If the Contractor elects to remove such facilities, the Government shall then have the option of purchasing such facilities at the agreed salvage value set forth herein; and provided further, that the Contractor shall, at the direction of the Government, leave in place such facilities located on Government property which the Government elects to purchase at the agreed salvage value.

(End of clause)

Alternate I (Nov 1994(sic)). If the Contracting Officer determines that a

nonrefundable charge is to be paid and no credits are due the Government, delete paragraphs (c) and (e), renumber paragraph (d) as (c) and add the following as paragraph (d):

(d) Termination after completion of facilities. In the event the Government terminates this contract after completion of the facilities with respect to which the Government is to pay a connection charge, the Contractor shall have the following options:

(1) To retain in place for ____ months after the notice of termination by the Government. If the Contractor and the Government have not agreed on terms for retention in place beyond ____ months, then the Contractor must remove the facilities pursuant to the terms of subparagraph (d)(2) of this clause. (2) To remove such facilities at the Contractor's own expense within ____ months after the effective date of the termination by the Government. If the Contractor elects to remove such facilities, the Government shall then have the option of purchasing such facilities at the agreed salvage value set forth herein; and provided further, that the Contractor shall, at the direction of the Government, leave in place such facilities located on Government property which the Government elects to purchase at the agreed salvage value.

52.241-10 Termination liability.

As prescribed in 41.501(d)(4), insert a clause substantially the same as the

following:

Termination Liability (Feb 1995)

(a) If the Government discontinues utility service under this contract before completion of the facilities cost recovery period specified in paragraph (b) of this clause, in consideration of the Contractor furnishing and installing at its expense, the new facility described herein, the Government shall pay termination charges, calculated as set forth in this clause.

(b) Facility cost recovery period. The period of time, not exceeding the term of this contract, during which the net cost of the new facility, shall be recovered by the Contractor is--

____ months. [Insert negotiated duration.] (c) Net facility cost. The cost of the new facility, less the agreed upon salvage value of such facility, is-- $____. [Insert appropriate dollar amount.]

(d) Monthly facility cost recovery rate. The monthly facility cost recovery rate which the Government shall pay the Contractor whether or not service is received is-- $____. [Divide the net facility cost in paragraph (c) of this clauseby the facility's cost recovery period in paragraph (b) of this clause and insert the resultant figure.]

(e) Termination charges. Termination charges = $[Multiply the remaining months of the facility's cost recovery period specified in paragraph (b) of this clause by the monthly facility cost recovery rate in paragraph (d) of this clause and insert the resultant figure.]

(f) If the Contractor has recovered its capital costs at the time of

termination there will be no termination liability charge.

(End of clause)

52.241-11 Multiple service locations.

As prescribed in 41.501(d)(5), insert a clause substantially the same as the

following:

Multiple Service Locations (Feb 1995)

(a) At any time by written order, the Contracting Officer may designate any location within the service area of the Contractor at which utility service shall commence or be discontinued. Any changes to the service specifications shall be made a part of the contract by the issuance of a contract modification to include the name and location of the service, specifying any different rate, the point of delivery, different service specifications, and any other terms and conditions.

(b) The applicable monthly charge specified in this contract shall be equitably prorated from the period in which commencement or discontinuance of service at any service location designated under the Service Specifications shall become effective.

(End of clause)

52.241-12 Nonrefundable, nonrecurring service charge.

As prescribed in 41.501(d)(6), insert a clause substantially the same as the following:

Nonrefundable, Nonrecurring Service Charge (Feb 1995)

As provided herein, the Government will pay a nonrefundable, nonrecurring charge when the rules and regulations of a Contractor require that a customer pay (1) a charge for the initiation of service, (2) a contribution in aid of construction, or (3) a nonrefundable membership fee. This charge may be in addition to or in lieu of a connection charge. Therefore, there is hereby added to the Contractor's schedule a nonrefundable, nonrecurring charge for ____ in the amount of $____ dollars payable [specify dates or schedules].

(End of clause)

52.241-13 Capital credits.

As prescribed in 41.501(d)(7), insert a clause substantially the same as the

following:

Capital Credits (Feb 1995)

(a) The Government is a member of the ____ [insert cooperative name], and as any other member, is entitled to capital credits consistent with the bylaws of the cooperative, which states the obligation of the Contractor to pay capital credits and which specifies the method and time of payment.

(b) The Contractor shall furnish to the Contracting Officer, or the designated representative of the Contracting Officer, in writing, on an ____ basis [insert period of time] a list of accrued credits by contract number, year, and delivery point.

(c) Payment of capital credits will be made by check, payable to

the ____ [insert *67026 agency name], and forwarded to theContracting

Officer at ____ [insert agency address], unless otherwise directed in writing by the Contracting Officer. Checks shall cite the current or last contract number and indicate whether the check is partial or final payment forall capital credits accrued.

(End of clause)

BILLING CODE 6820-34-P

END OF DOCUMENT

(59 FR 67026)

RULES and REGULATIONS

DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 7 and 52

[FAC 90-23; FAR Case 91-6; Item V]

RIN 9000-AE86

Federal Acquisition Regulation; Lease with Option to Purchase

Wednesday, December 28, 1994

*67026 AGENCIES: Department of Defense (DOD), General Services

Administration (GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Final rule.

SUMMARY: The Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council have agreed on a final rule to amend the Federal Acquisition Regulation (FAR), based on the Defense Management Review (DMR), to include information required to support a contracting officer's decision to use a lease with an option to purchase, and to outline the Government's right to purchase at any time during the performance of the contract. This regulatory action was not subject to Office of Management and Budget review under

Executive Order 12866, dated September 30, 1993.

EFFECTIVE DATE: February 27, 1995.

FOR FURTHER INFORMATION CONTACT: Mr. Ralph DeStefano at (202) 501-1758 in reference to this FAR case. For general information, contact the FAR Secretariat, Room 4037, GS Building, Washington, DC 20405 (202) 501-4755. Please cite FAC 90-23, FAR case 91-6.

SUPPLEMENTARY INFORMATION:

A. Background

The Secretary of Defense directed that the Defense Federal Acquisition Regulation Supplement (DFARS) be streamlined and rewritten as part of the DMR Regulatory Reform initiative. This initiative resulted in movement of some DFARS language and language from lower level supplements to the FAR. FAR 7.402(b)(2) states that if a lease is justified, a lease with option to purchase is preferable. However, there is no FAR coverage to implement this requirement. This proposed rule implements FAR 7.402(b)(2) and outlines the Government's right to purchase at any time during the performance of the contract.

A proposed rule was published in the Federal Register at 56 FR 37404, August 6, 1991. Ten comments received from five individuals and organizations were considered, and changes were made in the development of the final rule.

B. 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 under the Regulatory Flexibility Act, 5 U.S.C. 601, et seq., because the change does not impose any new requirements on contractors, large or small, and serves only to clarify existing regulatory coverage. No public comments were received which addressed the statement to that effect which was published as a proposed rule.

C. Paperwork Reduction Act

The Paperwork Reduction Act does not apply because the changes to the FAR do not impose recordkeeping or information collection requirements, or collections of information from offerors, contractors, or members of the public which require the approval of the Office of Management and Budget under 44 U.S.C. 3501, et seq.

List of Subjects in 48 CFR Parts 7 and 52

Government procurement.

Dated: December 7, 1994.

Albert A. Vicchiolla,

Director, Office of Federal Acquisition Policy.

Therefore, 48 CFR parts 7 and 52 are amended as set forth below:

1. The authority citation for 48 CFR parts 7 and 52 continues to read as follows:

Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42 U.S.C. 2473(c).

PART 7--ACQUISITION PLANNING

2. Section 7.402 is amended by adding paragraph (b)(4) to read as follows:

7.402 Acquisition methods.

* * * * *

(b) * * *

(4) If a lease with option to purchase is used, the contract shall state the purchase price or provide a formula which shows how the purchase price will be established at the time of purchase.

3. Section 7.404 is added to read as follows:

7.404 Contract clause.

The contracting officer shall insert a clause substantially the same as the clause in 52.207-5, Option to Purchase Equipment, in solicitations and contracts involving a lease with option to purchase.

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

4. Section 52.207-5 is added to read as follows:

52.207-5 Option to purchase equipment.

As prescribed in 7.404, insert a clause substantially the same as the following:

Option to Purchase Equipment (Feb 1995)

(a) The Government may purchase the equipment provided on a lease or rental basis under this contract. The Contracting Officer may exercise this option only by providing a unilateral modification to the Contractor. The effective date of the purchase will be specified in the unilateral modification and may be any time during the period of the contract, including any extensions thereto.

(b) Except for final payment and transfer of title to the Government, the lease or rental portion of the contract becomes complete and lease or rental charges shall be discontinued on the day immediately preceding the effective date of purchase specified in the unilateral modification required in paragraph (a) of this clause.

(c) The purchase conversion cost of the equipment shall be computed as of the effective date specified in the unilateral modification required in paragraph (a) of this clause, on the basis of the purchase price set forth in the contract, minus the total purchase option credits accumulated during the period of lease or rental, calculated by the formula contained elsewhere in this contract.

(d) The accumulated purchase option credits available to determine the purchase conversion cost will also include any credits accrued during a period of lease or rental of the equipment under any previous Government contract if the equipment has been on continuous lease or rental. The movement of equipment from one site to another site shall be "continuous rental."

(End of clause)

BILLING CODE 6820-34-P

END OF DOCUMENT

(59 FR 67027)

RULES and REGULATIONS

DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 8 and 9

[FAC 90-23; FAR Case 93-610; Item VI]

RIN 9000-AF92

Federal Acquisition Regulation; Procurement From People Who Are Blind or

Severely Disabled

Wednesday, December 28, 1994

*67027 AGENCIES: Department of Defense (DOD), General Services

Administration (GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Final rule.

SUMMARY: The Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council have agreed on a final rule that amends the Federal Acquisition Regulation (FAR) to reflect changes in the regulations of the Committee for Purchase from People Who Are Blind or Severely Disabled. Changes are also made in other sections of the FAR which mention the Committee's program. This regulatory action was not subject to Office of Management and Budget review under Executive Order 12866, dated September 30, 1993.

EFFECTIVE DATE: February 27, 1995.

FOR FURTHER INFORMATION CONTACT: Ms. Shirley Scott at (202) 501-0168 in reference to this FAR case. For general information, contact the FAR Secretariat, Room 4037, GS Building, Washington, DC 20405 (202) 501-4755. Please cite FAC 90-23, FAR case 93-610.

SUPPLEMENTARY INFORMATION

A. Background

Extensive changes in 1991 to the regulations governing procurement from the blind and severely disabled, and legislation in 1992 (Section 911(a) of Public Law 102-569, 106 Stat. 4486) changing the name of the Committee for Purchase From People Who Are Blind or Severely Disabled have made FAR Subpart 8.7 and other FAR references to the Committee's program outdated. FAR Subpart 8.7 also is revised to reflect a change in the Committee's method of distributing its Procurement List.

The intent of the Committee in revising its regulations was to clarify them to reflect actual practice in its program and terminology now being used by the community the program serves. Similar terminology changes have been made by other Government agencies and private organizations in the disability field. For example, the terms "workshop" and "severely handicapped", which appeared in the former Committee regulations and the FAR, are now considered offensive in the disability community and have been replaced in the revised Committee regulations by "nonprofit agency" (the statutory term) and "people with severe disabilities," respectively.

A statute, 41 U.S.C. 48 requires Federal agencies intending to procure supplies and services on the Procurement List to do so in accordance with the Committee's regulations. FAR Subpart 8.7 incorporates into the FAR those provisions of the Committee's regulations most relevant to Government procurement personnel.

B. Regulatory Flexibility Act

This final rule implements the Committee for Purchase from People Who Are Blind or Severely Disabled 1991 regulatory revisions published in the Federal Register at 56 FR 48974, September 26, 1991, and the statutory change in the Committee's name. The Committee certified in its 1991 final rule that the revisions to its regulation, which are the basis of this final rule, will not have a significant economic impact on a substantial number of small entities because they do not essentially change the impact of the Committee regulations upon small entities.

C. Paperwork Reduction Act

The Paperwork Reduction Act does not apply because the final rule does not impose recordkeeping information collection requirements or collection of information from offerors, contractors, or members of the public which require the approval of the Office of Management and Budget under 44 U.S.C. 3501, et seq.

List of Subjects in 48 CFR Parts 8 and 9

Government procurement.

Dated: December 7, 1994.

Albert A. Vicchiolla,

Director, Office of Federal Acquisition Policy.

Therefore, 48 CFR parts 8 and 9 are amended as set forth below:

1. The authority citation for 48 CFR parts 8 and 9 continues to read as follows:

Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42 U.S.C. 2473(c).

PART 8--REQUIRED SOURCES OF SUPPLIES AND SERVICES

2. Section 8.001 paragraphs (a)(1)(iv) and (a)(2)(i) are revised to read as follows:

8.001 Priorities for use of Government supply sources.

(a) * * *

(1) * * *

(iv) Products// available from the Committee for Purchase from People Who Are Blind or Severely Disabled (see subpart 8.7);

* * * * *

(2) * * *

(i) Services// available from the Committee for Purchase from People Who Are Blind or Severely Disabled (see subpart 8.7);

* * * * *

3. Section 8.603 is amended by revising paragraph (a) to read as follows:

8.603 Purchase priorities.

(a) FPI and nonprofit agencies participating in the Javits-Wagner-O'Day (JWOD) Program (see subpart 8.7) may produce identical supplies or services. When this occurs, ordering offices shall purchase supplies and services in the following priorities:

(1) Supplies:

(i) Federal Prison Industries, Inc. (41 U.S.C. 48).

(ii) JWOD participating nonprofit agencies.

(iii) Commercial sources.

(2) Services:

(i) JWOD participating nonprofit agencies.

(ii) Federal Prison Industries, Inc., or commercial sources.

* * * * *

4. Subpart 8.7 is amended by revising the heading and sections 8.700 through 8.703 to read as follows:

Subpart 8.7--Acquisition from Nonprofit Agencies Employing People Who Are Blind or Severely Disabled//

8.700 Scope of subpart.

This subpart prescribes the policies and procedures for implementing the Javits-Wagner-O'Day Act (41 U.S.C. 46-48c), referred to in this subpart as "the JWOD Act," and the rules of the Committee for Purchase from People Who Are Blind or Severely Disabled (41 CFR chapter 51).

8.701 Definitions.

Allocation, as used in this subpart, means an action taken by a central nonprofit agency to designate the JWOD participating nonprofit agencies that will furnish definite quantities of supplies or perform specific services upon receipt of orders from ordering offices. Central nonprofit agency, as used in this subpart, means National Industries for the Blind (NIB), which has been designated to represent people who are blind; or NISH, which has been designated to represent JWOD participating nonprofit agencies serving people with severe disabilities other than blindness.

Committee, as used in this subpart, means the Committee for Purchase

from People Who Are Blind or Severely Disabled//. Government or entity of the Government means any entity of the legislative or judicial branch, any executive agency, military department, Government corporation, or independent establishment, the U.S. Postal Service, or any nonappropriated-fund instrumentality of the Armed Forces. Ordering office means any activity in an entity of the Government that places orders for the purchase of supplies or services under the JWODProgram.//

Procurement List, as used in this subpart, means a list of supplies(including military resale commodities) and services that the Committee has determined are suitable for purchase by the Government under the Javits-WagnerO'Day Act. Nonprofit agency serving people who are blind or nonprofit agency serving people with other severe disabilities (referred to jointly as JWOD participating// nonprofit agencies) means a qualified nonprofit agency employing people who are blind or have other severe disabilities// approved by the Committee to furnish a commodity or a service to the Government under the Act.

8.702 General.

The Committee is an independent Government activity with members appointed by the President of the United States. It is responsible for--

(a) Determining those supplies and services to be purchased by all entities of the Government from JWOD participating nonprofit agencies;

(b) Establishing prices for the supplies and services; and

(c) Establishing rules and regulations to implement the JWOD Act.

8.703 Procurement list.

The Committee maintains a Procurement List of all supplies and services required to be purchased from JWOD participating nonprofit agencies. Questions concerning whether a supply item or service is on the Procurement List should be referred to the Committee offices at the following address and telephone number: Committee for Purchase from People Who Are Blind or Severely Disabled, Crystal Square 3, Room 403, 1735 Jefferson Davis Highway, Arlington, VA 22202- 3461, (703) 603-7740. Many items on the Procurement List are identified in the General Services Administration (GSA) Supply Catalog and GSA's Customer Service Center Catalogs with a black square and the words "NIB/NISH Mandatory Source," and in similar catalogs issued by the Defense Logistics Agency (DLA) and the Department of Veterans Affairs (VA). GSA, DLA, and VA are central supply agencies from which other Federal agencies are required to purchase certain supply items on the Procurement List.

5. Section 8.704 is amended by revising the first sentence in paragraph (a), paragraph (a)(1)(ii), (a)(2)(i), and in paragraph (c) by removing the word "workshops" and inserting "JWOD participating nonprofit agencies" in its place to read as follows:

8.704 Purchase priorities.

(a) The JWOD Act requires the Government to purchase supplies or services on the Procurement List, at prices established by the Committee, from JWOD participating nonprofit agencies if they are available within the period required. * * *

(1) * * *

(ii) JWOD participating nonprofit agencies.

* * * * *

(2) * * *

(i) JWOD participating nonprofit agencies.

* * * * *

6. Section 8.705-1(a) is revised to read as follows:

8.705-1 General.

(a) Ordering offices shall obtain supplies and services on the Procurement List from the central nonprofit agency or its designated JWOD participating nonprofit agencies, except that supplies identified on the Procurement List as available from DLA, GSA, or VA supply distribution facilities shall be obtained through DLA, GSA, or VA procedures. If a distribution facility cannot provide the supplies, it shall inform the ordering office, which shall then order from the JWOD participating nonprofit agency designated by the Committee.

* * * * *

7. Section 8.705-4 is amended by revising paragraph (c), and in paragraph (d) by removing the amount "$2,500" and inserting "$25,000" to read as follows:

8.705-4 Compliance with orders.

* * * * *

(c) When a JWOD participating nonprofit agency fails to perform under the terms of an order, the ordering office shall make every effort to resolve the noncompliance with the nonprofit agency involved and to negotiate an adjustment before taking action to cancel the order. If the problem cannot be resolved with the nonprofit agency, the ordering office shall refer the matter for resolution first to the central nonprofit agency and then, if necessary, to the Committee.

* * * * *

8. Section 8.706 is amended in paragraph (a) by removing the word "listed"; and by revising paragraph (b)(1) to read as follows:

8.706 Purchase exceptions.

* * * * *

(b) * * *

(1) The JWOD participating nonprofit agencies cannot provide the supplies or services within the time required, and commercial sources can provide them significantly sooner in the quantities required; or

* * * * *

9. Section 8.707 is amended by revising the first sentence of paragraph (a) to read as follows:

8.707 Prices.

(a) The prices of items on the Procurement List are fair market prices established by the Committee. * * *

* * * * *

10. Section 8.708 is amended by revising paragraph (d) to read as follows:

8.708 Shipping.

* * * * *

(d) JWOD participating nonprofit agencies shall include transportation costs for small shipments paid by the nonprofit agencies as an item on the invoice. The ordering office shall reimburse the nonprofit agencies for these costs. 11. Section 8.709 is revised to read as follows:

8.709 Payments.

The ordering office shall// make payments for supplies or services on the Procurement List within 30 days after shipment or after receipt of a proper invoice or voucher.

12. Section 8.711 is amended by revising paragraphs (a)(1) and (a)(2) to read

as follows:

*67029 8.711 Quality complaints.

(a) * * *

(1) For supplies received from DLA supply centers, GSA supply distribution facilities, or Department of Veterans Affairs distribution division, notify the supplying agency.

(2) For supplies or services received from JWOD participating nonprofit agencies, address complaints to the individual nonprofit agency involved, with a copy to the appropriate central nonprofit agency.

* * * * *

13. Section 8.712 is amended by revising paragraph (a) to read as follows:

Amended per FAC 90-23

8.712 Specification changes.

(a) The contracting activity shall notify the JWOD participating nonprofit agency and appropriate central nonprofit agency of any change in specifications or descriptions. In the absence of such written notification, the JWOD participating nonprofit agency shall furnish the supplies or services under the specification or description cited in the order. * * * * *

14. Section 8.714 is revised to read as follows:

Amended per FAC 90-23

8.714 Communications with the central nonprofit agencies and the Committee.

(a) The addresses of the central nonprofit agencies are:

(1) National Industries for the Blind, 1901 N. Beauregard St., Suite 200, Alexandria, VA 22311-1727, (703) 998-0770; and

(2) NISH, 2235 Cedar Lane, Vienna, VA 22182-5200, (703) 560-6800.

(b) Any matter requiring referral to the Committee shall be addressed to the Executive Director of the Committee at 1735 Jefferson-Davis Highway, Crystal Square 3, Suite 403, Arlington, VA 22202-3461.

15. Section 8.715 is amended by revising the first sentence to read as follows:

Amended per FAC 90-23

8.715 Replacement commodities.

When a commodity on the Procurement List is replaced by another commodity which has not been previously acquired, and a qualified JWOD participating nonprofit agency can furnish the replacement commodity in accordance with the Government's quality standards and delivery schedules and at a fair market price, the replacement commodity is automatically on the Procurement List and shall be acquired from the JWOD participating nonprofit agency designated by the Committee.* * *

Subpart 8.7 Amended]

16. In addition to the amendments set forth above, Subpart 8.7 is further amended in the list below. For each section listed in the left column, remove the word indicated in the middle column and insert the words indicated in the right column:

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

Section Remove Insert

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

8.705-1(b) ........... "workshops" ... "JWOD participating nonprofit agency"

8.705-2, first

sentence ........... "workshop" .... "JWOD participating nonprofit agency"

8.705-2, third

sentence ........... "workshop" .... "nonprofit agency"

8.705-3(a), first

sentence ........... "workshop" .... "JWOD participating nonprofit agency"

8.705-3(a), second

sentence ........... "workshop" .... "nonprofit agency"

8.705-3(c), first

sentence ........... "workshop" .... "JWOD participating nonprofit agency"

8.705-4(a) ........... "workshops" ... "JWOD participating nonprofit agencies"

8.705-4(b) ........... "workshop" .... "JWOD participating nonprofit agency"

8.706(b)(2) .......... "workshops" ... "JWOD participating nonprofit agencies"

8.707(d), first

sentence ........... "workshop" .... "JWOD participating nonprofit agency"

8.707(d), second

sentence ........... "workshop" .... "JWOD participating nonprofit agency"

8.707(e), first

sentence ........... "workshop's" .. "nonprofit agency's"

8.707(e), second

sentence ........... "workshop" .... "nonprofit agency"

8.710, introductory

text ............... "workshops" ... "JWOD participating nonprofit agencies"

8.711(b) ............. "workshop" .... "JWOD participating nonprofit agency"

8.712(c) ............. "workshop" .... "JWOD participating nonprofit agency"

8.712(d) ............. "workshop" .... "JWOD participating nonprofit agency"

8.713(a) ............. "workshop" .... "JWOD participating nonprofit agency"

8.713(b) ............. "workshops" ... "JWOD participating nonprofit agencies"

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

PART 9--CONTRACTOR QUALIFICATIONS

17. Section 9.107 is revised to read as follows:

9.107 Surveys of nonprofit agencies serving people who are blind or have other severe disabilities under the Javits-Wagner-O'Day (JWOD) Program.

(a) The Committee for Purchase From People Who Are Blind or Severely Disabled (Committee), as authorized by 41 U.S.C. 46-48c, determines what supplies and services Federal agencies are required to purchase from JWOD participating nonprofit agencies serving people who are blind or have other severe disabilities (see subpart 8.7). The Committee is required to find a JWOD participating nonprofit agency capable of furnishing the supplies or services before the nonprofit agency can be designated as a mandatory source under the JWOD Program. The Committee may request a contracting office to assist in assessing the capabilities of a nonprofit agency.

(b) The contracting office, upon request from the Committee, shall request a capability survey from the activity responsible for performing preaward surveys, or notify the Committee that the JWOD participating nonprofit agency is capable, with supporting rationale, and that the survey is waived. The capability survey will focus on the technical and production capabilities and applicable preaward survey elements to furnish specific supplies or services

being considered for addition to the Procurement List.

(c) The contracting office shall use the Standard Form 1403 to request a capability survey of organizations employing people who are blind or have other severe disabilities.

(d) The contracting office shall furnish a copy of the completed survey, or notice that the JWOD participating nonprofit agency is capable and the survey is waived, to the Executive Director, Committee for Purchase from People Who Are Blind or Severely Disabled.

FR Doc. 94-30663 Filed 12-27-94; 8:45 am]

BILLING CODE 6820-34-P

END OF DOCUMENT

(59 FR 67030)

RULES and REGULATIONS

DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 8 and 52

FAC 90-23; FAR Case 91-9; Item VII]

RIN 9000-AE58

Federal Acquisition Regulation; Acquisition of Helium

Wednesday, December 28, 1994

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

ACTION: Final rule.

SUMMARY: The Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council have agreed on a final rule to amend the Federal Acquisition Regulation (FAR) to provide guidance on the acquisition of helium. The Helium Act requires that all major helium requirements be purchased from the Secretary of the Interior. This includes the procurement of helium by Federal agencies as well as by contractors for use in Federal contracts. This final rule will assist Government agencies and contractors in complying with the Helium Act by ensuring that contracting officers and contractors are aware of the requirements for using Bureau of Mines helium in Government contracts. This regulatory action was not subject to Office of Management and Budget review under Executive Order 12866, dated September 30, 1993.

EFFECTIVE DATE: February 27, 1995.

FOR FURTHER INFORMATION CONTACT: Ms. Linda Klein at (202) 501-3775 in reference to this FAR case. For general information, contact the FAR Secretariat, Room 4037, GS Building, Washington, DC 20405, (202) 501-4755. Please cite FAC 90- 23, FAR case 91-9.

SUPPLEMENTARY INFORMATION:

A. Background

The Helium Act (50 U.S.C. 167a et seq. (Pub. L. 86-777)), and the Department of the Interior's implementing regulations (30 CFR Parts 601 and 602) require Federal agencies to procure all major helium requirements from the Bureau of Mines, Department of the Interior. This requirement may be satisfied by ordering against a GSA Federal Supply Schedule. For requirements not covered by a Federal Supply Schedule contract, this requirement may be satisfied by purchasing from the Bureau of Mines or a Bureau helium distributor. A major helium requirement has been defined as a requirement for 5,000 or morestandard cubic feet of helium in a calendar month. The only exceptionprovided is for helium acquired before contract award. The guidance adds one new clause.

B. Regulatory Flexibility Act

While no comments were received regarding the Initial Regulatory Flexibility Analysis, it is believed that the changes may have a significant economic impact on a substantial number of small entities within the meaning of the Regulatory Flexibility Act, 5 U.S.C. 601 et seq., because the rule will impose additional requirements on both Federal agencies and contractors in the procurement of helium. A Final Regulatory Flexibility Analysis (FRFA) has been prepared and will be provided to the Chief Counsel for Advocacy for the Small Business Administration. A copy of the FRFA may be obtained from theFAR Secretariat, Room 4037, GS Building, Washington, DC 20405, (202) 5014755. Comments are invited. Comments from small entities concerning theaffected FAR subpart will be considered in accordance with 5 U.S.C. 610. Suchcomments must be submitted separately and cite 5 U.S.C 601, et seq. (FAC 90-23, FARCase 91- 9), in correspondence.

C. Paperwork Reduction Act

The Paperwork Reduction Act (Pub. L. 96-511) is deemed to apply because the final rule contains information collection requirements. Accordingly, on June 6, 1994, OMB approved this information collection through June 30, 1997, under OMB control number 9000-0113.

D. Public Comments

A proposed rule was published in the Federal Register at 56 FR 21532, May 9, 1991. Thirteen responses were received from individuals and organizations, five of which were considered substantive.

The proposed rule has been revised as follows:

(1) The requirement for the contractor to furnish a helium requirement forecast has been made a post-award requirement;

(2) The provision at 52.208-8 and the clause at 52.208-9 have been merged, resulting in the clause at 52.208-8;

(3) FAR 8.500 has been amended to include a reference to the U.S. Department of the Interior's regulations;

(4) FAR 8.501 and 52.208-8(a) have been updated to reflect the current address of the Bureau of Mines;

(5) FAR 8.502 and 52.208-8(b)(2) have been amended in order to add flexibility for the contracting officer when contracting for the use of helium overseas; and

(6) FAR 8.502(b) has been amended for clarification.

List of Subjects in 48 CFR Parts 8 and 52

Government procurement.

Dated: December 7, 1994.

Albert A. Vicchiolla,

Director, Office of Federal Acquisition Policy.

Therefore, 48 CFR parts 8 and 52 are amended as set forth below:

1. The authority citation for 48 CFR parts 8 and 52 continues to read as follows:

Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42 U.S.C. 2473(c).

PART 8--REQUIRED SOURCES OF SUPPLIES AND SERVICES

2. Section 8.002 is amended by revising paragraph (g) to read as follows:

s8.002 Use of other Government supply sources.

* * * * *

(g) Helium (see subpart 8.5--Acquisition of Helium).

3. Subpart 8.5 is added to read as follows:

Subpart 8.5--Acquisition of Helium

Sec.

8.500 Scope of subpart.

8.501 Definitions.

8.502 Policy.

8.503 Exception.

8.504 Procedures.

8.505 Contract clause.

Subpart 8.5--Acquisition of Helium

8.500 Scope of subpart.

This subpart implements the requirements of the Helium Act (50 U.S.C. 167a, et seq.) concerning the acquisition of liquid or gaseous helium by Federal agencies or by Government contractors or subcontractors for use in the performance of a Government contract (also see 30 CFR Parts 601 and 602). 8.501 Definitions.

Bureau helium distributor means a private helium distributor which has established and maintains eligibility to distribute helium purchased from the Bureau of Mines, as specified in 30 CFR part 602.

Bureau of Mines, as used in this subpart, means the Department of the Interior, Bureau of Mines, Helium Field *67031 Operations, located at 801 South Fillmore Street, Amarillo, TX 79101-3545.

Helium requirement forecast means an estimate by the contractor or

subcontractor of the amount of helium required for performance of the contract or subcontract.

Major helium requirement means a helium requirement during a calendar month of 5,000 or more standard cubic feet (measured at 14.7 pounds per square inch absolute pressure and 70 degrees Fahrenheit temperature), including liquid helium gaseous equivalent. In any month in which the major requirement threshold is met, all helium purchased during that month is considered part of the major helium requirement.

8.502 Policy.

To the extent that supplies are readily available, all major helium

requirements purchased by a Government agency or used in the performance of a Government contract shall be purchased from the Bureau of Mines. This requirement may be satisfied as follows:

(a) By ordering against a GSA Federal Supply Schedule contract (for contractor use and authorization procedures, see subpart 51.1).

(b)(1) For requirements not covered by a Federal Supply Schedule contract, by purchasing from--

(i) The Bureau of Mines; or

(ii) A Bureau helium distributor.

(2) A copy of the "List by Shipping Points of Private Distributors Eligible to Sell Helium to Federal Agencies" may be obtained from the Bureau of Mines.

8.503 Exception.

The requirements of this subpart do not apply to contracts or subcontracts in which the helium was acquired by the contractor prior to award of the contract or subcontract.

8.504 Procedures.

(a) Upon receipt of the helium requirement forecast, point of contact, and telephone number from the contractor, the contracting officer shall forward this information, along with a copy of the contract, to the Bureau of Mines.

(b) Upon notification by the Bureau of Mines of an apparent discrepancy between helium sales data and the contractor's helium requirement forecast, the contracting officer shall determine appropriate action and inform the Bureau of Mines.

8.505 Contract clause.

The contracting officer shall insert the clause at 52.208-8, Helium

Requirement Forecast and Required Sources for Helium, insolicitations and contracts if it is anticipated that performance of the contract involves a major helium requirement.

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

4. Section 52.208-8 is added to read as follows:

52.208-8 Helium requirement forecast and required sources for helium.

As prescribed in 8.505, insert the following clause:

Helium Requirement Forecast and Required Sources for Helium (Feb 1995)

(a) Definitions--

Bureau helium distributor means a private helium distributor which has established and maintains eligibility to distribute helium purchased from the Bureau of Mines, as specified in 30 CFR part 602.

Bureau of Mines, as used in this clause, means the Department of the Interior, Bureau of Mines, Helium Field Operations, located at 801 SouthFillmore Street, Amarillo, TX 79101-3545. Helium requirement forecast means an estimate by the Contractor or

subcontractor of the amount of helium required for performance of the contract or subcontract.

Major helium requirement means a helium requirement during a calendar month of 5,000 or more standard cubic feet (measured at 14.7 pounds per square inch absolute pressure and 70 degrees Fahrenheit temperature),including liquid helium gaseous equivalent. In any month in which the majorrequirement threshold is met, all helium purchased during that month isconsidered part of the major helium requirement.

(b) Requirements--(1) Helium Requirement Forecast. The Contractor shall provide to the Contracting Officer a helium requirement forecast, point of contact, and telephone number within ten days of award.

(2) Sources of Helium. Except for helium acquired by the Contractor before the award of this contract, and to the extent that supplies are readily available, the Contractor shall purchase all major requirements of helium from--

(i) The Department of the Interior's Bureau of Mines;

(ii) A Bureau helium distributor (a copy of the "List by Shipping Points of Private Distributors Eligible to Sell Helium to Federal Agencies," may be obtained from the Bureau of Mines); or

(iii) A General Services Administration Federal Supply Schedule contract, if use is authorized by the Contracting Officer (see FAR Subpart 51.1);

(3) Promptly upon award of any subcontract or order that involves a major helium requirement, the Contractor shall provide to the Bureau of Mines, and to the Contracting Officer, written notification that includes--

(i) The prime contract number;

(ii) The name, address and telephone number of the subcontractor, including a point of contact; and

(iii) A copy of the subcontractor's helium requirement forecast.

(c) Subcontracts--(1) The Contractor shall insert this clause, including this paragraph (c), in any subcontract or order that involves furnishing of a major helium requirement.

(2) When a subcontract involves a major helium requirement, the following statement shall be included: Helium furnished under this contract or order shall be helium that has been purchased from the Bureau of Mines, or a listed Bureau helium distributor.

(End of clause)

FR Doc. 94-30662 Filed 12-27-94; 8:45 am]

BILLING CODE 6820-34-P

END OF DOCUMENT

(59 FR 67031)

RULES and REGULATIONS

DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Part 8

FAC 90-23; FAR Case 92-622; Item VIII]

RIN 9000-AF86

Federal Acquisition Regulation; Paper and Envelopes

Wednesday, December 28, 1994

*67031 AGENCIES: Department of Defense (DOD), General Services

Administration (GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Final rule.

SUMMARY: The Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council have agreed on a final rule to amend the Federal Acquisition Regulation (FAR) to clarify agency requisitioning responsibilities for paper and certain envelopes in common use under 44 U.S.C. 1121 and Federal Property Management Regulations (FPMR) Subpart 101-26.3. The revision specifies that paper and envelopes for use by executive agencies outside the District of Columbia and stocked by the General Services Administration (GSA) shall be requisitioned from GSA. This regulatory action was notsubject to Office of Management and Budget review under Executive Order 12866, dated September 30, 1993.

EFFECTIVE DATE: February 27, 1995.

ADDRESSES: Interested parties should submit written comments to: General Services Administration, FAR Secretariat (VRS), 18th & F Streets, NW, Room 4037, Attn: Ms. Beverly Fayson, Washington, DC 20405.

Please cite FAC 90-23, FAR case 92-622 in all correspondence

related to this case.

FOR FURTHER INFORMATION CONTACT: Ms. Linda Klein at (202) 501-3775 in reference to this FAR case. For general information, contact the FAR Secretariat, Room 4035, GS Building, Washington, DC 20405 (202) 501-4755. Please cite FAC 90-23, FAR case 92-622.

SUPPLEMENTARY INFORMATION:

A. Background

A statute, 44 U.S.C. 1121, referenced in FAR 8.802(c), allows the Public Printer to acquire and furnish paper and certain envelopes commonly used by two or more Government departments, establishments, or services within the District of Columbia. FPMR's, at Subpart 101-26.3, direct Executive agencies to requisition items stocked by GSA; paper and envelopes are GSA stock items.

B. Regulatory Flexibility Act

The final rule does not constitute a significant FAR revision within the meaning of FAR 1.501 and Public Law 98-577, because the rule clarifies agency requisitioning responsibilities for paper and certain envelopes. Publication for public comment is not required. Therefore, the Regulatory Flexibility Act does not apply. However, comments from small entities concerning the affected FAR subpart will be considered in accordance with 5 U.S.C. 610. Such comments must be submitted separately and cite FAC 90-23, FAR case 92-622 in correspondence.

C. Paperwork Reduction Act

The Paperwork Reduction Act does not apply because the changes to the FAR do not impose recordkeeping or information collection requirements, or collection of information from offerors, contractors, or members of the public which require the approval of OMB under 44 U.S.C. 3501, et seq.

List of Subjects in 48 CFR Part 8

Government procurement.

Dated: December 7, 1994.

Albert A. Vicchiolla,

Director, Office of Federal Acquisition Policy.

Therefore, 48 CFR part 8 is amended as set forth below:

PART 8--REQUIRED SOURCES OF SUPPLIES AND SERVICES

1. The authority citation for 48 CFR part 8 continues to read as follows:

Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42 U.S.C. 2473(c).

2. Section 8.802 is amended by redesignating paragraph "(c)" as "(c)(1)" and

adding "(c)(2)" to read as follows:

8.802 Policy.

* * * * *

(c)(1) * * *

(2) Paper and envelopes for use by Executive agencies outside the District of Columbia and stocked by GSA shall be requisitioned from GSA in accordance with the procedures listed in Federal Property Management Regulations (FPMR) part 101, subpart 101-26.3.

FR Doc. 94-30661 Filed 12-27-94; 8:45 am]

BILLING CODE 6820-34-P

END OF DOCUMENT

(59 FR 67032)

RULES and REGULATIONS

DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Part 9

FAC 90-23; FAR Case 89-89; Item IX]

RIN 9000-AD72

Federal Acquisition Regulation; Debarment, Suspension, and Ineligibility

Wednesday, December 28, 1994

AGENCIES: Department of Defense (DOD), General Services

Administration (GSA), and National Aeronautics and Space Administration

(NASA).

ACTION: Final rule.

SUMMARY: The Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council have agreed on a final rule to amend the Federal Acquisition Regulation (FAR) to clarify to what extent, absent a termination by the issuing agency, an individual may place orders against an existing contract notwithstanding a debarment, suspension, or proposed debarment of the contractor. The final rule also clarifies that an optional (permissive) user may elect to place a delivery order and a compelling reason determination would not be required. This regulatory action was not subject to Office of

Management and Budget review under Executive Order 12866, dated September 30,

1993.

EFFECTIVE DATE: February 27, 1995.

FOR FURTHER INFORMATION CONTACT: Mr. Ralph DeStefano at (202) 501-1758 in

reference to this FAR case. For general information, contact the FAR

Secretariat, Room 4037, GS Building, Washington, DC 20405 (202) 501-4755. Please cite FAC 90-23, FAR case 89-89.

SUPPLEMENTARY INFORMATION:

A. Background

This revision was initiated as a result of a report from the General

Accounting Office (GAO) dated February, 1987. GAO identified anumber of areas for improvement concerning debarment and suspension procedures. One of the GAO's recommendations was that the FAR be revised to clarify to what extent orders may be placed against indefinite delivery contracts notwithstanding the fact that the contractor has been debarred or suspended. The proposed rule was published in the Federal Register at 55 FR 416, January 4, 1990. The proposed rule invited comments. Twenty-one comments were received. All comments received were considered during development of the

final rule.

B. 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 under the Regulatory Flexibility Act, 5 U.S.C. 601, et seq., because the change does not impose any new requirements on contractors, large or small, and serves only to clarify existing regulatory coverage. The rule was published as a proposed rule in the Federal Register at 55 FR 516, January 4,

1990, and invited comments from small entities concerning the affected FAR subpart. No comments were received relating to the Regulatory Flexibility Act.

C. Paperwork Reduction Act

The Paperwork Reduction Act does not apply because the changes to the FAR do not impose recordkeeping or information collection requirements, or collections of information from offerors, contractors, or members of the public which require the approval of the Office of Management and Budget under 44 U.S.C. 3501, et seq.

List of Subjects in 48 CFR Part 9

Government procurement.

Dated: December 7, 1994.

Albert A. Vicchiolla,

Director, Office of Federal Acquisition Policy.

Therefore, 48 CFR part 9 is amended as set forth below:

PART 9--CONTRACTOR QUALIFICATIONS

1. The authority citation for 48 CFR part 9 continues to read as follows:

Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42 U.S.C.

2473(c).

9.405 Amended]

2. Section 9.405 is amended by removing the words "acquiring agency's head or designee" and inserting "agency head or a designee" in the following places:

(a) 9.405(a); and

(b) 9.405(d)(2) and 9.405(d)(3).

3. Section 9.405-1 is amended in the first sentence of paragraph (a) by removing the words "acquiring agency's" and inserting "agency" in its place; by redesignating paragraph (b) as (c) and revising it; and adding a new paragraph (b) to read as follows:

9.405-1 Continuation of current contracts.

* * * * *

(b) Ordering activities may continue to place orders against existing contracts, including indefinite delivery contracts, in the absence of a termination.

(c) Agencies shall not renew or otherwise extend the duration of current contracts, or consent to subcontracts, with contractors debarred, suspended, or proposed for debarment, unless the agency head or a designee authorized representative states, in writing, the compelling reasons for renewal or extension.

9.405-2 Amended]

4. Section 9.405-2 is amended in paragraph (a) by removing the words "acquiring agency's" and inserting "agency" in their place.

* * * * *

9.406-1 Amended]

5. Section 9.406-1 is amended in paragraph (c) by removing the words "an acquiring agency's" and inserting "the agency" in their place.

* * * * *

9.406-3 Amended]

6. Section 9.406-3 is amended in paragraph (e)(1)(iv) by removing the word "acquiring".

9.407-1 Amended]

7. Section 9.407-1 is amended in paragraph (d) by removing the words "an acquiring agency's" and inserting "the agency" in their place.

* * * * *

FR Doc. 94-30660 Filed 12-27-94; 8:45 am]

BILLING CODE 6820-34-P

END OF DOCUMENT

(59 FR 67033)

RULES and REGULATIONS

DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 14, 15, and 53

FAC 90-23; FAR Case 92-602; Item X]

RIN 9000-AF84

Federal Acquisition Regulation; Revision to Optional Form 17, Sealed Bid Label

Wednesday, December 28, 1994

*67033 AGENCIES: Department of Defense (DOD), General Services

Administration (GSA), and National Aeronautics and Space Administration

(NASA).

ACTION: Final rule.

SUMMARY: The Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council have agreed on a final rule to revise Optional Form 17, Sealed Bid Label, and amend the Federal Acquisition Regulation (FAR) to provide one standard label for offers, regardless of whether the offer is submitted under sealed bid or negotiated procedures. This regulatory action was not subject to Office of Management and Budget review under Executive Order 12866, dated September 30, 1993.

EFFECTIVE DATE: February 27, 1995.

FOR FURTHER INFORMATION CONTACT: Ms. Shirley Scott at (202) 501-0168 in reference to this FAR case. For general information, contact the FAR Secretariat, Room 4037, GS Building, Washington, DC 20405 (202) 501-4755. Please cite FAC 90-23, FAR case 92-602.

SUPPLEMENTARY INFORMATION:

A. Background

Some Government agencies have changed their security requirements when handling mail deliveries to their installation (e.g., mail is x-rayed before delivery to the designated office). The use of a standard label for sealed bid and negotiated acquisitions would provide ready identification of offers and alert internal mail handlers that proper handling and prompt delivery is required at all times.

B. Regulatory Flexibility Act

The final rule does not constitute a significant FAR revision within the meaning of FAR 1.501 and Public Law 98-577, and publication for public comments is not required. Therefore, the Regulatory Flexibility Act does not apply. However, comments from small entities concerning the affected subpart will be considered in accordance with 5 U.S.C. 610. Such comments must be submitted separately and cite 5 U.S.C. 601, et seq. (FAC 90-23, FAR case 92-602), in correspondence.

C. Paperwork Reduction Act

The Paperwork Reduction Act does not apply because the changes to the FAR do not impose recordkeeping or information collection requirements, or collections of information from offerors, contractors, or members of the public which require the approval of the Office of Management and Budget under 44 U.S.C. 3501, et seq.

List of Subjects in 48 CFR Parts 14, 15, and 53

Government procurement.

Dated: December 7, 1994.

Albert A. Vicchiolla,

Director, Office of Federal Acquisition Policy.

Therefore, 48 CFR parts 14, 15, and 53 are amended as set forth below:

1. The authority citation for 48 CFR parts 14, 15, and 53 continues to read as follows:

Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42 U.S.C. 2473(c).

PART 14--SEALED BIDDING

14.202-3 Amended]

2. Section 14.202-3 is amended in the first sentence of paragraph (b) by removing the words "Sealed Bid" and inserting "Offer" in their place.

PART 15--CONTRACTING BY NEGOTIATION

3. Section 15.408 is amended by adding paragraph (e) to read as follows:

15.408 Issuing solicitations.

* * * * *

(e) To provide for ready identification and proper handling of proposals, Optional Form 17, Offer Label, may be furnished with each request for proposals. The form may be obtained from the General Services Administration (see 53.107).




PART 53--FORMS

4. Section 53.214 is amended by revising paragraph (g) to read as follows:

53.214 Sealed bidding.

* * * * *

(g) OF 17 (REV. 12/93), Offer Label. OF 17 may be furnished with each invitation for bids to facilitate identification and handling of bids, as specified in 14.202-3(b).

* * * * *

*67034 5. Section 53.215-1 is amended by adding paragraph (h) to read as follows:

53.215-1 Solicitation and receipt of proposals and quotations.

* * * * *

(h) OF 17 (REV. 12/93), Offer Label. OF 17 may be furnished with each request for proposals to facilitate identification and handling of proposals, as specified in 15.408(e).

6. Section 53.302-17 is revised to read as follows:

53.302-17 Optional Form 17, Offer Label.

BILLING CODE 6820-34-P

TABULAR OR GRAPHIC MATERIAL SET FORTH AT THIS POINT IS NOT DISPLAYABLE

FR Doc. 94-30659 Filed 12-27-94; 8:45 am]

BILLING CODE 6820-34-C

END OF DOCUMENT

(59 FR 67034)

RULES and REGULATIONS

DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 15 and 52

FAC 90-23; FAR Case 91-20; Item XI]

RIN 9000-AE72

Federal Acquisition Regulation; Notification of Ownership Changes

Wednesday, December 28, 1994

*67034 AGENCIES: Department of Defense (DOD), General Services

Administration (GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Final rule.

SUMMARY: The Civilian Agency Acquisition Council (CAAC) and the Defense Acquisition Regulations Council (DARC) have agreed on a final rule amending the Federal Acquisition Regulation (FAR) to add the clause, Notification of Ownership Changes, to require contractors to notify the Government of changes in contractor ownership and of their effects, and to emphasize existing recordkeeping requirements. This regulatory action was not subject to Office of Management and Budget (OMB) review under Executive Order 12866, dated September 30, 1993.

EFFECTIVE DATE: February 27, 1995.

FOR FURTHER INFORMATION CONTACT: Mr. Jeremy Olson at (202) 501-3221 in reference to this FAR case. For general information, contact the FAR Secretariat, room 4037, GS Building, Washington, DC 20405 (202) 501-4755. Please cite FAC 90-23, FAR case 91-20.

SUPPLEMENTARY INFORMATION:

A. Background

A proposed rule was published in the Federal Register at 56 FR 23762, May 23, 1991, because the CAAC and the DARC determined that the FAR did not contain sufficient safeguards to assure that, consistent with FAR 31.205-52, Asset valuations resulting from business combinations, Government contracts do not absorb increased costs resulting from changes in contractor ownership. This rule reflects a resolution agreement between the Director of Defense Procurement and the DOD Inspector General under Audit Report 89-095 dated July 26, 1989, on the cost impact to contracts as a result of business combinations.

The rule is intended to facilitate enforcement of the cost principle at FAR 31.205-52 on allowability of costs resulting from business combinations by enabling audit determinations that cost increases related to contractor ownership changes are not charged to Government contracts. A contract clause is added at 52.215-40, Notification of Ownership Changes, which requires contractors to provide timely notice to the Government and to retain and maintain asset inventory records through successive changes in contractor ownership. A clause prescription is added at 15.804-8(g) to require use of the clause in all solicitations and contracts for which certified cost or pricing data are expected to be required or for which any preaward or postaward cost determination will be subject to FAR Subpart 31.2. While several editorial changes were made in the final rule, the major

difference between the final rule and the proposed rule is that the final rule requires notification in instances of cost decreases as well as cost increases.

B. 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 under the Regulatory Flexibility Act, 5 U.S.C. 601, et seq., because an analysis of data available for fiscal years 1989 through 1991 reveals that, in the Department of Defense, the number of contract actions awarded to small businesses which required the submission of certified cost or pricing data averaged less than 1 percent of the total number of small business actions during the 3-year period. In other words, during the 3-year period, the majority of actions awarded to small businesses were awarded on a competitive, fixed-price basis, for which the submission of cost or pricing data is not required and the cost principles do not apply.

For affected contractors, whenever a change in contractor ownership occurs or is pending, the rule only requires contractors to retain and maintain asset inventory records already required to be maintained by generally accepted accounting principles (GAAP) and rules promulgated by the Cost Accounting Standards Board. As virtually all contractors' accounting systems are automated, any incremental effort and cost will likely be nominal. Similarly, the additional requirement for contractors to notify the Government, in writing, of a pending or completed ownership change imposes no significant administrative burden or complexity. No comments on any aspect of the subject were received from small entities.

C. Paperwork Reduction Act

The Paperwork Reduction Act (Public Law 96-511) is deemed to apply because the final rule contains information collection requirements. Accordingly, a request for extension of an approval of the information collection requirements concerning Notification of Ownership Changes, OMB Control Number 9000-0115, was submitted to OMB under 44 U.S.C. 3501, et seq., and approved through September 30, 1997. Public comments concerning this request were invited through a

Federal Register notice published at 59 FR 36169, July 15, 1994.

List of Subjects in 48 CFR Parts 15 and 52

Government procurement.

Dated: December 7, 1994.

Albert A. Vicchiolla,

Director, Office of Federal Acquisition Policy.

Therefore, 48 CFR parts 15 and 52 are amended as set forth below:

1. The authority citation for 48 CFR parts 15 and 52 continues to read as follows:

Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42 U.S.C. 2473(c).

PART 15--CONTRACTING BY NEGOTIATION

2. Section 15.804-8 is amended by adding paragraph (g) to read as follows:

15.804-8 Contract clauses.

* * * * *

(g) Notification of ownership changes. The contracting officer shall insert the clause at 52.215-40, Notification of Ownership Changes, in solicitations and contracts for which it is contemplated that certified cost or pricing data will be required or for which any preaward or postaward cost determination will be subject to subpart 31.2.

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

3. Section 52.215-40 is added to read as follows:

52.215-40 Notification of ownership changes.

As prescribed in 15.804-8(g), insert the following clause:

Notification of Ownership Changes (Feb. 1995)

(a) The Contractor shall make the following notifications in writing:

(1) When the Contractor becomes aware that a change in its ownership has occurred, or is certain to occur, which could result in changes in the valuation of its capitalized assets in the accounting records, the Contractor shall notify the Administrative Contracting Officer (ACO) within 30 days.

(2) The Contractor shall also notify the ACO within 30 days whenever changes to asset valuations or any other cost changes have occurred or are certain to occur as a result of a change in ownership.

(b) The Contractor shall: (1) maintain current, accurate, and complete inventory records of assets and their costs; (2) provide the ACO or designated representative ready access to the records upon request; (3) ensure that all individual and grouped assets, their capitalized values, accumulated depreciation or amortization, and remaining useful lives are identified

accurately before and after each of the Contractor's ownership changes; and (4) retain and continue to maintain depreciation and amortization schedules based on the asset records maintained before each Contractor ownership change.

(c) The Contractor shall include the substance of this clause in all

subcontracts under this contract which meet the applicability requirement of FAR 15.804-8(g).

(End of clause)

FR Doc. 94-30658 Filed 12-27-94; 8:45 am]

BILLING CODE 6820-34-P

END OF DOCUMENT

(59 FR 67035)

RULES and REGULATIONS

DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Part 19

FAC 90-23; FAR Case 91-107; Item XII]

Federal Acquisition Regulation; Certificates of Competency

Wednesday, December 28, 1994

*67035 RIN 9000-AF70

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

ACTION: Final rule.

SUMMARY: The Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council have agreed on a final rule to revise the Federal Acquisition Regulation (FAR) to clarify the applicability of Certificates of Competency procedures. This regulatory action was not subject to Office of Management and Budget review under Executive Order 12866, dated September 30, 1993.

EFFECTIVE DATE: February 27, 1995.

FOR FURTHER INFORMATION CONTACT: Ms. Shirley Scott at (202) 501-0168 in reference to this FAR case. For general information, contact the FAR Secretariat, Room 4037, GS Building, Washington, DC 20405 (202) 501-4755. Please cite FAC 90-23, FAR case 91-107.

SUPPLEMENTARY INFORMATION:

A. Background

A contracting agency is required to refer small business nonresponsibility determinations to the Small Business Administration (SBA), even if the contracting agency is located outside the United States. The statutory requirement for referral to the SBA is unrelated to an agency's location. FAR 19.000(b) currently states that "part [19] applies only inside the United States, its territories * * *". It is not clear that overseas buying activities must comply with FAR 19.601, Certificates of Competency and Determinations of Eligibility. This rule clarifies that the statutory requirement for referral to SBA is unrelated to an agency's location.

B. Regulatory Flexibility Act

The final rule does not constitute a significant FAR revision within the meaning of FAR 1.501 and Public Law 98-577, and publication for public comments is not required. Therefore, the Regulatory Flexibility Act does not apply. However, comments from small entities concerning the affected subpart will be considered in accordance with 5 U.S.C. 610. Such comments must be submitted separately and cite 5 U.S.C. 601, et seq. (FAC 90-23, FAR case 91-107), in correspondence.

C. Paperwork Reduction Act

The Paperwork Reduction Act does not apply because the changes to the FAR do not impose recordkeeping or information collection requirements, or collection of information from offerors, contractors, or members of the public which require the approval of OMB under 44 U.S.C. 3501, et seq.

List of Subjects in 48 CFR Part 19

Government procurement.

Dated: December 7, 1994.

Albert A. Vicchiolla,

Director, Office of Federal Acquisition Policy.

Therefore, 48 CFR part 19 is amended as set forth below

PART 19--SMALL BUSINESS AND SMALL DISADVANTAGED BUSINESS CONCERNS

The authority citation for 48 CFR part 19 continues to read as follows:

Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42 U.S.C. 2473(c).

2. Section 19.000 is amended by revising paragraph (b) to read as follows:

19.000 Scope of part.

* * * * *

(b) This part, except for subpart 19.6, applies only inside the United States, its territories and possessions, Puerto Rico, the Trust Territory of the Pacific Islands, and the District of Columbia. Subpart 19.6 applies worldwide.

3. Section 19.601 is amended by adding paragraph (d) to read as follows:

19.601 General.

* * * * *

(d) Contracting officers, including those located overseas, are required to comply with this subpart for U.S. small business concerns.

FR Doc. 94-30657 Filed 12-27-94; 8:45 am]

BILLING CODE 6820-34-P

END OF DOCUMENT

(59 FR 67036)

RULES and REGULATIONS

DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Part 19

FAC 90-23; FAR Case 92-302; Item XIII]

RIN 9000-AG10

Federal Acquisition Regulation; Small Business Competitiveness Demonstration

Program

Wednesday, December 28, 1994

AGENCIES: Department of Defense (DOD), General Services

Administration (GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Interim rule with request for comment.

SUMMARY: The Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council have agreed to an interim rule that amends the Federal Acquisition Regulation (FAR) to specify that agencies may reinstate the use of small business set-asides as necessary to meet assigned goals, but only within the organizational unit(s) that failed to meet the small business goals; and revises the description of Architect and Engineering Services as a designated industry group. This regulatory action was not subject to Office of Management and Budget review under Executive Order 12866, dated September 30,1993.

DATES: Effective Date: December 28, 1994.

Comment Date: Comments should be submitted to the FAR Secretariat at the address shown below on or before February 27, 1995, to be considered in the formulation of a final rule.

ADDRESSES: Interested parties should submit written comments to: General Services Administration, FAR Secretariat (VRS), 18th & F Streets, NW, Room 4035, Attn: Ms. Beverly Fayson, Washington, DC 20405.

Please cite FAC 90-23, FAR case 92-302 in all correspondence related to this

case.

FOR FURTHER INFORMATION CONTACT:

SUPPLEMENTARY INFORMATION:

A. Background

This interim rule implements Title II of Pub. Law 102-366, the Small Business Credit and Business Opportunity Enhancement Act of 1992, which revised Title VII of Pub. Law 100-656, Small Business Competitiveness Demonstration Program. The Office of Federal Procurement Policy (OFPP) published an interim Policy Directive in the Federal Register at 58 FR 19849, April 16, 1993, revising the current Directive dated August 31, 1989, to include revisions based on Title II.

B. Regulatory Flexibility Act

This rule implements statutory revisions and resulting revisions to the OFPP Policy Directive. OFPP prepared the appropriate regulatory flexibility analysis as part of the revisions to the OFPP Policy Directive published in the Federal Register at 58 FR 19849, April 16, 1993.

C. Paperwork Reduction Act

The Paperwork Reduction Act does not apply because the changes to the FAR do not impose recordkeeping or information collection requirements, or collection of information from offerors, contractors, or members of the public which require the approval of OMB under 44 U.S.C. 3501, et seq.

D. 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 compelling reasons exist to promulgate this interim rule without prior opportunity for public comment. This action is necessary because Title II of Pub. Law 102-366, the Small Business Credit and Business Opportunity Enhancement Act of 1992, which revises Title VII of Pub. Law 100-656, Small Business Competitiveness Demonstration Program, extended the program through 1996 and made other changes in the program. However, pursuant to Pub. Law 98-577 and FAR 1.501,public comment received in response to this interim rule will be considered in formulating the final rule.

List of Subjects in 48 CFR Part 19

Government procurement.

Dated: December 7, 1994.

Albert A. Vicchiolla,

Director, Office of Federal Acquisition Policy.

Therefore, 48 CFR part 19 is amended as set forth below:

PART 19--SMALL BUSINESS AND SMALL DISADVANTAGED BUSINESS CONCERNS

1. The authority citation for 48 CFR part 19 continues to read as follows:

Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42 U.S.C. 2473(c).

2. Section 19.1001 is amended by revising the introductory paragraph and paragraph (b) to read as follows:

19.1001 General.

The Small Business Competitiveness Demonstration Program was established by Title VII of the "Business Opportunity Development Reform Act of 1988", Pub. L. 100-656, as amended by Title II of Pub. L. 102-366 and implemented by an OFPP Policy Directive and Test Plan, dated August 31, 1989, as amended on April 16, 1993. The program will be conducted over the period from January 1, 1989, through September 30, 1996. Pursuant to Section 713(a) of Pub. L. 100-656, the requirements of the FAR that are inconsistent with the program procedures are waived. The program consists of two major components--

* * * * *

(b) A test of enhanced small business participation in 10 agency targeted industry categories.//

3. Section 19.1005 is amended by revising paragraph (a)(3) to read as follows:

19.1005 Applicability.

(a) * * *

(3) Architectural and engineering services (including surveying and mapping) under SIC codes 7389, 8711, 8712, or 8713, which are awarded under the qualification-based selection procedures required by 40 U.S.C. 541 et seq. (see subpart 36.6) (limited to FPDS service codes C111 through C216, C219,

T002, T004, T008, T009, T014, and R404).

* * * * *

4. Section 19.1006 is amended by revising paragraph (b)(2) to read as

follows:

19.1006 Procedures.

* * * * *

(b) * * *

(2) Agencies may reinstate the use of small business set-asides as necessary to meet their assigned goals, but only within organizational unit(s) that failed to meet the small business participation goal.

* * * * *

FR Doc. 94-30656 Filed 12-27-94; 8:45 am]

BILLING CODE 6820-34-P

END OF DOCUMENT

(59 FR 67037)

RULES and REGULATIONS

DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 19 and 52

FAC 90-23; FAR Case 91-61; Item XIV]

RIN 9000-AE84

Federal Acquisition Regulation; Small Business Concern Representation

Wednesday, December 28, 1994

AGENCIES: Department of Defense (DOD), General Services

Administration (GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Final rule.

SUMMARY: The Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council have agreed on a final rule to revise the Federal Acquisition Regulation (FAR) to clarify language regarding an offeror's size status and to remove the requirement for offerors to certify that all supplies to be furnished will be manufactured by a small business in the United States. This regulatory action was not subject to Office of Management and Budget review under Executive Order 12866, dated September 30, 1993.

EFFECTIVE DATE: February 27, 1995.

FOR FURTHER INFORMATION CONTACT:

Ms. Shirley Scott at (202) 501-0168 in reference to this FAR case. For general information, contact the FAR Secretariat, Room 4037, GS Building, Washington, DC 20405 (202) 501-4755. Please cite FAC 90-23, FAR case 91-61.

SUPPLEMENTARY INFORMATION:

A. Background

The revisions are considered necessary to eliminate confusion and clarify that questions regarding the size status of offerors are matters of eligibility, not responsiveness, and must be referred to the Small Business Administration. Small business set-aside clauses will continue to require that manufacturers or dealers furnish only end items manufactured or produced by a small business inside the United States, its territories and possessions, the Commonwealth of Puerto Rico, the Trust Territory of the Pacific Islands, or the District of Columbia. A sentence has been added to the provision to clarify that set-aside clauses of the solicitation contain restrictions on the source of end items to be furnished.

B. 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 under the Regulatory Flexibility Act, 5 U.S.C. 601, et seq., because the rule merely clarifies language regarding an offeror's size status and removes the requirement for offerors to certify that all supplies to be furnished will be manufactured by a small business in the United States. The rule was published as a proposed rule in the Federal Register at 57 FR 2820, January 23, 1992, with a request for comments. No comments were received from small businesses.

C. Paperwork Reduction Act

The Paperwork Reduction Act does not apply because the changes to the FAR do not impose recordkeeping or information collection requirements, or collection of information from offerors, contractors, or members of the public which require the approval of OMB under 44 U.S.C. 3501, et seq.

List of Subjects in 48 CFR Parts 19 and 52

Government procurement.

Dated: December 7, 1994.

Albert A. Vicchiolla,

Director, Office of Federal Acquisition Policy.

Therefore, 48 CFR parts 19 and 52 are amended as set forth below:

1. The authority citation for 48 CFR parts 19 and 52 continues to read as follows:

Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42 U.S.C. 2473(c).

PART 19--SMALL BUSINESS AND SMALL DISADVANTAGED BUSINESS CONCERNS

2. Section 19.502-4 is amended in paragraph (b) by adding a sentence at the end of the paragraph to read as follows:

19.502-4 Methods of conducting set-asides.

* * * * *

(b) * * * However, before rejecting an offer otherwise eligible for award because of questions concerning the size representation, an SBA determination must be obtained (see subpart 19.3).

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

3. Section 52.219-1 is amended in the provision title by removing "(JAN 1991)" and inserting "(FEB 1995)" in its place; by revising paragraph (a); redesignating paragraphs (c)(1), (c)(2), and (c)(3) as (c)(2)(i), (ii), and (iii), respectively; redesignating the introductory text of paragraph (c) as (c)(2), and by adding a new paragraph (c)(1) to read as follows:

52.219-1 Small business concern representation.

* * * * *

Small Business Concern Representation (Feb. 1995)

(a) Representation. The offeror represents and certifies as part of its offer that it is:) ( ) a small business concern, ( ) not a small business concern.

* * * * *

(c) Notice. (1) If this solicitation is for supplies and has been set aside, in whole or in part, for small business concerns, then the clause in this solicitation providing notice of the set-aside contains restrictions on the source of the end items to be furnished.

(2) * * *

(i) * * *

(ii) * * *

(iii) * * *

(End of provision)

FR Doc. 94-30655 Filed 12-27-94; 8:45 am]

BILLING CODE 6820-34-P

END OF DOCUMENT

(59 FR 67038)

RULES and REGULATIONS

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 22 and 52

FAC 90-23; FAR Case 93-618; Item XV]

RIN 9000-AF93

Federal Acquisition Regulation; Prohibition of Department of Labor

Implementation/Administration of Davis-Bacon Helper Regulations Pursuant to

Fiscal Year 1994 Appropriation Act

Wednesday, December 28, 1994

*67038 AGENCIES: Department of Defense (DOD), General Services

Administration (GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Final rule.

SUMMARY: The Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council have agreed to implement in the Federal Acquisition Regulation (FAR) the Department of Labor's (DOL's) suspension of its Davis- Bacon Act "Helper" regulations. DOL's regulations were suspended on October 21, 1993. A notice of suspension was published in the Federal Register at 58 FR 58954, November 5, 1993. This regulatory action was not subject to Office of Management and Budget review under Executive Order 12866, datedSeptember 30, 1993.

EFFECTIVE DATE: February 27, 1995.

FOR FURTHER INFORMATION CONTACT:

Mr. Jack O'Neill at (202) 501-3856 in reference to this FAR case. For general information, contact the FAR Secretariat, Room 4037, GS Building, Washington, DC 20405 (202) 501-4755. Please cite FAC 90-23, FAR case 93-618.

SUPPLEMENTARY INFORMATION:

A. Background

The suspension of the Davis-Bacon "Helper" regulations has been extended through the President's Fiscal Year 1995 budget request. In order to keep the FAR current through that period of time, the Councils have agreed to amend the regulation to implement the suspension.

B. Regulatory Flexibility Act

The final rule does not constitute a significant FAR revision within the meaning of FAR 1.501 and Public Law 98-577, and publication for public comments is not required. The rule merely implements the DOL suspension on Davis-Bacon Act "Helper" regulations. Therefore, the Regulatory Flexibility Act does not apply. However, comments from small entities concerning the affected subpart will be considered in accordance with 5 U.S.C. 610. Such comments must be submitted separately and cite 5 U.S.C. 601, et seq. (FAC 90-23, FAR case 93-

618), in correspondence.

C. Paperwork Reduction Act

The final rule does not impose any recordkeeping requirements which require the approval of the Office of Management and Budget under 44 U.S.C. 3501, et seq. Therefore, the requirements of the Paperwork Reduction Act do not apply.

List of Subjects in 48 CFR Parts 22 and 52

Government procurement.

Dated: December 7, 1994.

Albert A. Vicchiolla,

Director, Office of Federal Acquisition Policy.

Therefore, 48 CFR parts 22 and 52 are amended as set forth below:

1. The authority citation for 48 CFR parts 22 and 52 continues to read as follows:

Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42 U.S.C. 2473(c).

PART 22--APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS

2. Section 22.401 is amended in the definition of Laborers or

mechanics, in the introductory text of paragraph (b) by revising the second sentence, and by removing paragraph (b)(3) to read as follows:

22.401 Definitions.

* * * * *

Laborers or mechanics * * *

* * * * *

(b) * * *The terms "apprentice" and "trainee"// are defined as follows:

* * * * *

22.406-3 Amended]

3. Section 22.406-3 is amended in paragraph (b)(1) by removing the phrase ", except with respect to helpers as defined in section 22.401," and by removing paragraph (b)(4).

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

4. Section 52.222-6 is amended in the clause heading by removing "(NOV 1992)" and inserting "(FEB 1995)"; in the introductory text of paragraph (b)(1) by removing the phrase ", including helpers"; and by revising paragraphs (b)(1) (i) and (iii) to read as follows:

52.222-6 Davis-Bacon Act.

* * * * *

Davis-Bacon Act (Feb 1995)

* * * * *

(b)(1) * * *

(i)// The work to be performed by the classification requested is not performed by a classification in the wage determination.

* * * * *

NOTE: Part (iii) is not a change.

(iii) The proposed wage rate, including any bona fide fringe benefits, bears a reasonable relationship to the wage rates contained in the wage determination.

* * * * *

FR Doc. 94-30654 Filed 12-27-94; 8:45 am]

BILLING CODE 6820-34-P

END OF DOCUMENT

(59 FR 67038)

RULES and REGULATIONS

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Part 22

FAC 90-23; FAR Case 92-36; Item XVI]

RIN 9000-AF34

Federal Acquisition Regulation; Walsh-Healey Definitions

Wednesday, December 28, 1994

AGENCIES: Department of Defense (DOD), General Services

Administration (GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Final rule.

SUMMARY: The Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council have agreed on a final rule to amend the Federal Acquisition Regulation (FAR) to add a reference to the alternative "regular dealer" qualification requirements for information systems integrators found in Department of Labor (DOL) regulations. This regulatory action was not subject to Office of Management and Budget review under Executive Order 12866, dated

September 30, 1993.

EFFECTIVE DATE: February 27, 1995.

FOR FURTHER INFORMATION CONTACT: Mr. Jack O'Neill at (202) 501-3856 in reference to this FAR case. For general information, contact the FAR Secretariat, Room 4037, GS Building, Washington, DC 20405 (202) 501-4755. Please cite FAC 90-23, FAR case 92-36.

SUPPLEMENTARY INFORMATION:

A. Background

On July 16, 1992, DOL published, in the Federal Register at 57 FR 31566, a revision to 41 CFR 50-201.101 establishing criteria which an information systems integrator must *67039 meet in order to qualify as a regular dealer under the Walsh-Healey Public Contracts Act. This final rule revises the regular dealer requirements at FAR 22.606-2(b) to be consistent with 41 CFR 50- 201.101.

B. Regulatory Flexibility Act

The final rule does not constitute a significant FAR revision within the meaning of FAR 1.501 and Public Law 98-577, and publication for public comments is not required; therefore, the Regulatory Flexibility Act does not apply. However, comments from small entities concerning the affected subpart will be considered in accordance with 5 U.S.C. 610. Such comments must be submitted separately and cite 5 U.S.C. 601, et seq. (FAC 90-23, FAR case 92-36), in correspondence.

C. Paperwork Reduction Act

The Paperwork Reduction Act does not apply because the changes to the FAR do not impose recordkeeping or information collection requirements, or collections of information from offerors, contractors, or members of the public which require the approval of the Office of Management and Budget under 44 U.S.C. 3501, et seq.

List of Subjects in 48 CFR Part 22

Government procurement.

Dated: December 7, 1994.

Albert A. Vicchiolla,

Director, Office of Federal Acquisition Policy.

Therefore, 48 CFR part 22 is amended as set forth below:

PART 22--APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS

1. The authority citation for 48 CFR part 22 continues to read as follows:

Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42 U.S.C. 2473(c).

2. Section 22.606-2 is amended by revising paragraph (b) to read as

follows:

22.606-2 Regular dealer.

* * * * *

(b) For certain specific products (lumber and timber products, machine tools, hay, grain, feed or straw, raw cotton, green coffee, petroleum, agricultural liming materials, tea, raw or unmanufactured cotton linters, certain uranium products, used automatic data processing equipment, speciality advertising products, and products provided by information systems integrators), there are alternate qualifications for regular dealers in which the dealer need not physically maintain a stock. The requirements under the alternative

qualifications are set forth at 41 CFR 50-201.101(a)(2) and 50-201.604.

* * * * *

FR Doc. 94-30653 Filed 12-27-94; 8:45 am]

BILLING CODE 6820-34-P

END OF DOCUMENT

(59 FR 67039)

RULES and REGULATIONS

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Part 22

FAC 90-23; FAR Case 93-609; Item XVII]

RIN 9000-AF91

Federal Acquisition Regulation; Section 4c Price Adjustments

Wednesday, December 28, 1994

*67039 AGENCIES: Department of Defense (DOD), General Services

Administration (GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Final rule.

SUMMARY: The Civilian Agency Acquisition Council (CAAC) and the Defense Acquisition Regulations Council (DARC) have agreed on a final rule to amend the Federal Acquisition Regulation (FAR) to clarify that the requirement for successor contractors on contracts over $2,500, for substantially the same services performed in the same locality, to pay wages and fringe benefits at least equal to those contained in any bona fide collective bargaining agreement entered into under the predecessor contract, is self-executing. The requirement is not contingent upon incorporating a wage determination or the wage and fringe benefit terms of the predecessor contractor's collective bargaining agreement in the successor contract. However, the contracting officer shall incorporate the wage and fringe benefit terms of thecollective bargaining agreement itself in contract solicitations and may incorporate the terms or the agreement itself in other contract actions. This regulatory action was not subject to Office of Management and Budget review under Executive Order 12866, dated September 30, 1993.

EFFECTIVE DATE: February 27, 1995.

FOR FURTHER INFORMATION CONTACT: Mr. Jack O'Neill at (202) 501-3856 in reference to this FAR case. For general information, contact the FAR Secretariat, Room 4037, GS Building, Washington, DC 20405 (202) 501-4755. Please cite FAC 90-23, FAR case 93-609.

SUPPLEMENTARY INFORMATION:

A. Background

The CAAC and DARC, in order to eliminates confusion that exists regarding applicability of Section 4(c) of the Service Contract Act to contract actions other than solicitations, are amending the FAR at 22.1002-3, 22.1012-3, and 22.1012-5.

B. Regulatory Flexibility Act

This final rule does not constitute a significant FAR revision within the meaning of FAR 1.501 and Public Law 98-577, and publication for public comments is not required. Therefore, the Regulatory Flexibility Act does not apply. However, comments from small entities concerning the affected subpart will be considered in accordance with 5 U.S.C. 610. Such comments must be submitted separately and cite 5 U.S.C. 601, et seq. (FAC 90-23, FAR case 93-609), in correspondence.

C. Paperwork Reduction Act

The Paperwork Reduction Act does not apply because the changes to the FAR do not impose recordkeeping or information collection requirements, or collections of information from offerors, contractors, or members of the public which require the approval of the Office of Management and Budget under 44 U.S.C. 3501, et seq.

List of Subjects in 48 CFR Part 22

Government procurement.

Dated: December 7, 1994.

Albert A. Vicchiolla,

Director, Office of Federal Acquisition Policy.

Therefore, 48 CFR part 22 is amended as set forth below:

PART 22--APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS

1. The authority citation for 48 CFR part 22 continues to read as follows:

Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42 U.S.C. 2473(c).

2. Section 22.1002-3 is amended by revising paragraph (a) to read as follows:

22.1002-3 Wage determinations based on collective bargaining agreements.

(a) Successor contractors performing on contracts in excess of $2,500 for substantially the same services performed in the same locality must pay wages and fringe benefits (including accrued wages and benefits and prospective increases) at least equal to those contained in any bona fide collective bargaining agreement entered into under the predecessor contract. This requirement is self-executing and is not contingent upon incorporating a wage determination or the wage and fringe benefit terms of the predecessor contractor's collective bargaining agreement in the successor contract. This requirement will not apply if the Secretary of Labor determines (1) after a hearing, that the wages and fringe benefits are

substantially at variance with those which prevail for services of a similar character in the locality or (2) that the wages and fringe benefits are not the result of arm's length negotiations.

* * * * *

3. Section 22.1012-3 is amended in paragraph (d)(1) by adding a sentence at the end of the paragraph to read as follows:

s22.1012-3 Response to timely submission of Notice--with collective bargaining

agreement.

* * * * *

(d) * * *

(1) * * * The contracting officer may incorporate the wage and fringe benefit terms of the collective bargaining agreement, or the collective bargaining agreement itself, in other contract actions such as the exercise of options in order to facilitate price adjustments in fixed-price type contracts (but see 22.1008-3(e) and 22.1013(a)).

* * * * *

4. Section 22.1012-5 is amended by adding a sentence at the end of the paragraph to read as follows:

s22.1012-5 Response to late submission of Notice--with collective bargaining agreement.

* * * The contracting officer may incorporate the wage and fringe benefit terms of the collective bargaining agreement, or the collective bargaining agreement itself, in other contract actions such as the exercise of options in order to facilitate price adjustments for options in fixed-price type contracts (but see 22.1008-3(e) and 22.1013(a)).

FR Doc. 94-30652 Filed 12-27-94; 8:45 am]

BILLING CODE 6820-34-P

END OF DOCUMENT

(59 FR 67040)

RULES and REGULATIONS

DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Part 22

FAC 90-23; FAR Case 92-7; Item XVIII]

RIN 9000-AF75

Federal Acquisition Regulation; Collective Bargaining Agreement, Contingency

Clauses

Wednesday, December 28, 1994

*67040 AGENCIES: Department of Defense (DOD), General Services

Administration (GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Final rule.

SUMMARY: The Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council have agreed on a final rule to amend the Federal Acquisition Regulation (FAR) to implement the direction contained in Department of Labor (DOL) Memorandum Nos. 159 and 166 concerning contingencies in collective bargaining agreements subject to section 4(c) of the Service Contract Act and requests for substantial variance hearings. This rule also makes editorial changes to more accurately reflect the DOL regulations on the Service Contract Act. This regulatory action was not subject to Office of Management and Budget review under Executive Order 12866, dated September 30,

1993.

EFFECTIVE DATE: February 27, 1995.

FOR FURTHER INFORMATION CONTACT: Mr. Jack O'Neill at (202) 501-3856 in reference to this FAR case. For general information, contact the FAR Secretariat, Room 4037, GS Building, Washington, DC 20405 (202) 501-4755. Please cite FAC 90-23, FAR case 92-7.

SUPPLEMENTARY INFORMATION:

A. Background

This final rule incorporates guidance from two memorandums which the DOL's Wage and Hour Division has issued to all contracting agencies of the Federal Government and the District of Columbia concerning collective bargaining agreements (CBA's) subject to section 4(c) of the Service Contract Act. Memorandum No. 159 explains a DOL conclusion that certain contingencies in CBA's generally reflect a lack of arm's length negotiations. Memorandum No. 166 amplifies the DOL's regulatory requirements for substantial variance hearings. This final rule also includes changes to more accurately reflect the DOL's regulations on the Service Contract Act at 29 CFR Part 4.

B. Regulatory Flexibility Act

This final rule does not constitute a significant FAR revision within the meaning of FAR 1.501 and Public Law 98-577, and publication for public comments is not required. Therefore, the Regulatory Flexibility Act does not apply. However, comments from small entities concerning the affected subpart will be considered in accordance with 5 U.S.C. 610. Such comments must be submitted separately and cite 5 U.S.C. 601, et seq. (FAC 90-23, FAR case 92-7), in correspondence.

C. Paperwork Reduction Act

The Paperwork Reduction Act does not apply because the changes to the FAR do not impose recordkeeping or information collection requirements, or collections of information from offerors, contractors, or members of the public which require the approval of the Office of Management and Budget under 44 U.S.C. 3501, et seq.

List of Subjects in 48 CFR Part 22

Government procurement.

Dated: December 7, 1994.

Albert A. Vicchiolla,

Director, Office of Federal Acquisition Policy.

Therefore, 48 CFR part 22 is amended as set forth below:

PART 22--APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS

1. The authority citation for 48 CFR part 22 continues to read as follows:

Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42 U.S.C. 2473(c).

2. and 3. Section 22.1008-3 is amended by revising paragraph (e) to read as follows:

22.1008-3 Section 4(c) successorship with incumbent contractor collective bargaining agreement.

* * * * *

(e) Section 4(c) of the Act will not apply if the Secretary of Labor

determines (1) after a hearing, that the wages and fringe benefits in the predecessor contractor's collective bargaining agreement are substantially at variance with those which prevail for services of a similar character in the locality, or (2) that the wages and fringe benefits in the predecessor contractor's collective bargaining agreement are not the result of arm's length negotiations (see 22.1013 and 22.1021). The Department ofLabor (DOL) has concluded that contingent collective bargaining agreement provisions that attempt to limit a contractor's obligations by means such as requiring issuance of a wage determination by the DOL, requiring inclusion ofthe wage determination in the contract, or requiring the Government to adequately reimburse the contractor, generally reflect a lack of arm's length negotiations.

* * * * *

3. Section 22.1021 is revised to read as follows:

22.1021 Requests for hearing.

(a) A contracting agency or other interested party may request a hearing on an issue presented in 22.1013(a). To obtain a hearing for the contracting agency, the contracting officer shall submit a written request through appropriate channels (ordinarily the agency labor advisor) to: Administrator, Wage and Hour Division, Employment Standards Administration, U.S. Department of Labor, Washington, DC 20210.//

(b) A request for a substantial variance hearing shall include sufficient data to show that the rates at issue vary substantially from those prevailing for similar services in the locality. The request shall also include--

(1) The number of the wage determinations at issue;

(2) The name of the contracting agency whose contract is involved;

(3) A brief description of the services to be performed under the contract;

(4) The status of the procurement and any estimated procurement dates, such as bid opening, contract award, and commencement date of the contract or its follow-up option period;

(5) A statement of the applicant's case, setting forth in detail the reasons why the applicant believes that a substantial variance exists with respect to some or all of the wages and/or fringe benefits;

(6) Names and addresses (to the extent known) of interested parties; and

(7) Any other data required by the Administrator.

(c) A request for an arm's length hearing shall include--

(1) A statement of the applicant's case setting forth in detail the

reasons why the applicant believes that the wages and fringe benefits contained in the collective bargaining agreement were not reached as a result of arm's length negotiations;

(2) A statement regarding the status of the procurement and any estimated procurement dates, such as bid opening, contract award, and commencement date of the contract or its follow-up option period; and

(3) Names and addresses (to the extent known) of interested parties.

(d) Unless the Administrator determines that extraordinary circumstances exist, the Administrator will not consider requests for a hearing unless received as follows:

(1) For sealed bid contracts, more than 10 days before the award of the contract; or[]

(2) For negotiated contracts and for contracts with provisions exceeding the initial term by option, before the commencement date of the contract or the follow-up option period.

FR Doc. 94-30651 Filed 12-27-94; 8:45 am]

BILLING CODE 6820-34-P

END OF DOCUMENT

( 59 FR 67041)

RULES and REGULATIONS

DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 28, 30, 32, 42, 44, and 52

FAC 90-23; FAR Case 92-18; Item XIX]

RIN 9000-AF04

Federal Acquisition Regulation; Cost Accounting Standards

Wednesday, December 28, 1994

*67041 AGENCIES: Department of Defense (DOD), General Services

Administration (GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Interim rule adopted as final.

SUMMARY: The Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council have agreed to convert the interim rule, published in the Federal Register at 57 FR 39586, August 31, 1992, to a final rule with changes, based on an analysis of public comments. This regulatory action was not subject to Office of Management and Budget review under Executive Order 12866,

dated September 30, 1993.

EFFECTIVE DATE: February 27, 1995.

FOR FURTHER INFORMATION CONTACT: Mr. Jeremy Olson at (202) 501-3221 in reference to this FAR case. For general information, contact the FAR Secretariat, Room 4037, GS Building, Washington, DC 20405, (202) 501-4755.

Please cite FAC 90-23, FAR case 92-18.

SUPPLEMENTARY INFORMATION:

A. Background

The Cost Accounting Standards Board issued a final rule in the Federal Register on April 17, 1992, recodifying the Cost Accounting Standards (CAS) at 48 CFR Chapter 99 (57 FR 14148). The CAS previously appeared in both 48 CFR Part 30 and 4 CFR Parts 331 through 420. An interim rule was published in the Federal Register at 57 FR 39586, August 31, 1992 as FAC 90-12, to amend the FAR based on the recodification. The interim rule removed the CAS rules and regulations from FAR Subpart 30.3 and the standards from FAR Subpart 30.4. It also implemented revised CAS provisions and clauses.

Several editorial revisions were made to the interim rule based on public comments.

FAR 30.201-4(d)(2) was revised to refer to the clause at 52.230-5, rather than the clause at 52.230-2. FAR 30.601(b) was revised by substituting the word "after" for "of," so that it reads "Within 30 days after the award of any new contract * * *" FAR 30.602-2(a)(4) was revised to add a new second sentence reading: "If the ACO determines that the contractor's practices are in noncompliance, a written explanation shall be provided as to why the ACO disagrees with the contractor's rationale." FAR 30.602-3(a) was revised to refer to voluntary changes to disclosed or established cost accounting practices rather than to voluntary change to disclosure statements. Minor editorial amendments or corrections were made to the introductoryparagraph of the clause at 52.230-5, to paragraphs (a)(1), (b)(1), (d) and (f) of the clause, and to Parts 28, 32, 42, and 44.

B. Regulatory Flexibility Act

This rule is not expected to have a significant economic impact on a

substantial number of small entities within the meaning ofthe Regulatory Flexibility Act, 5 U.S.C. 601, et seq., because small businesses are exempt from the application of the Cost Accounting Standards. An Initial Regulatory Flexibility Analysis has, therefore, not been performed. Comments from small entities concerning the affected FAR subpart will also be considered in accordance with 5 U.S.C. 610. Such comments must be submitted separately and cite 5 U.S.C. 601, et seq. (FAR Case 92-18), in correspondence.

C. Paperwork Reduction Act

The Paperwork Reduction Act does not apply because the changes to the FAR do not impose recordkeeping or information collection requirements, or collections of information from offerors, contractors, or members of the public *67042 which require the approval of the Office of Management and Budget under 44 U.S.C. 3501, et seq. The information collection associated with the Cost Accounting Standards was approved by the Office of Management and Budget and assigned Control Number 0348-0051.

List of Subjects in 48 CFR Parts 28, 30, 32, 42, 44, and 52

Government procurement.

Words of Issuance

Interim Rule Adopted as Final with Changes.

For reasons set out in the preamble, the interim rule published in the Federal Register of August 31, 1992 (57 FR 39586) (amending 48 CFR parts 15,30, 31, and 52) is adopted as final with the changes set forth in FAC 90-23,FAR case

Dated: December 7, 1994.

Albert A. Vicchiolla,

Director, Office of Federal Acquisition Policy.

FR Doc. 94-30650 Filed 12-27-94; 8:45 am]

BILLING CODE 6820-34-P

END OF DOCUMENT


Therefore 48 CFR Parts 28, 30, 32, 42, 44, and 52 are ammended as set forth below.

PART 28 - BONDS AND INSURANCE

28.301(A)(1) The Government requires.....(CAS)416 (48 CFR 9004.416 (appendix B, FAR loose-leaf eddition)) to obtain insurance.....

Part 30.201-4

* * * * *

(b) * * *

(2)The clause at 52.230-3 requires the contractor to comply with 48 CFR chapter 99 (Appendix B, FAR loose-leaf edition) subparts 9904.401, 9904.402, 9904.405, and 9904.406, to disclose (if it meats certain requirements) actual cost accounting practices, and to follow consistently its // established cost accounting practices.

* * * * *

(D) * * *

(2) The clause at 52.230-5 specifies rules for administering CAS requirements and procedures to be followed in case of failure to comply.

30.601(b)

Within 30 days after the award of any new contract.....

30.602-1(c)(1)

The ACO shall promptly analyze the cost impact proposal with the assistance of the auditor, determin the impact, and negotiate the contract price adjustment on behalf of all Government agencies. The ACO shall invite the contracting officers to participate .....

30.602-2(a)(4) add the following sentence.

...If the ACO determines that the contracor's practices are in noncompliance, a written explaination shall be provided as to why the ACO disagrees with the contractor's rationale.

30.602-3

(a) General. (1) The contractor may voluntarily change its disclosed or established cost accounting practices.

(2) .....the change is desirable and not detrimental to the interest of the Government.

PART 32 - CONTRACT FINANCING

32.503-7

If the contractor.....to Final Cost Objectives (48 CFR 9904.410 (Appendix B, FAR loose-leaf edition)), and the account is $5 Million or more,.....

PART 42 - CONTRACT ADMINISTRATION

42.203(a)

Contracting officers shall.....by agency regulations. However 30.601-(a) and (b) require that .....

42.302

(a)

(11)In connection with Cost Accounting Standards (see Part 30 and 48 CFR chapter 99)-

* * * * *

(iv)Negotiate price adjustments.....clauses at 52.230-2, 52.230-3, and 52.230-5.

PART 44 - SUBCONTRACTING POLICIES AND PROCEEDURES

44.305-3

(A) * * *

(2) Implementation of cost accounting standards (see 48 CFR chapter 99, (Appendix B, FAR Loose Leaf eddition));

PART 52, SOLICITATION PROVISIONS AND CONTRACT CLAUSES.

52.230-1

COST ACCOUNTING STANDARDS NOTICES AND CERTIFICATION

(NOV 1993)

Note: this notice does not apply to small business or foreign governments. This notice is in three parts, identified by Roman numerals I through III.

I,(c), subpart of para.(1)

(Disclosure must be on Form No. CASB DS-1. Forms may be obtained from the cognizant ACO or from the loose-leaf version of the Federal Acqusition Regulation.)

I,(c), para. (3)

Certificate of Monitary Exemption.....subject to CAS totaling more than $25 million (of which at least one award exceeded $1 million) in the cost accounting period.....

[part II was part III]

II COST ACCOUNTING STANDARDS -ELIGIBILITY FOR MODIFIED CONTRACT COVERAGE

If the offeror is eligible to use the modified provisions of 48 CFR subpart 9903.201-2(b) and elects to do so, the offeror shall indicate by checking the box below. Checking the box below shall mean that the resultant contract is subject to the Disclosure and Consistancy of Cost Accounting Practices clause in lieu of the Cost Accounting Standards clause.

[] The offeror hereby claims..... submitted, the offeror received less than $25 million in awards of CAS covered prime contracts and subcontracts, or the offeror did not receive a single CAS covered award exceeding $1 million. The offeror further certifies that if such status changes before an award resulting from this proposal, the offeror will advise the Contracting Officer immediately.

CAUTION:......a CAS covered contract of $25 million or more if, during its current cost accounting period, the offeror has been awarded a single CAS covered prime contract or subcontract of $25 million or more.

52.230-3,

DISCLOSURE AND CONSISTENCY OF COST ACCOUNTING PRACTICES

[NOV 1993]

(a)

(1), Comply with the requirements of 48 CFR subpart 9904.401, Consistancy in Estimating, Accumulating, and Reporting Costs; 48 CFR 9904.402, Consistancy in Allocating Costs Incurrec for the same purpose; 48 CFR subpart 9904.405 Accounting for Unallowable costs; and 48 CFR subpart 9904.406, Cost Accounting Standards - Cost Accounting Period, in effect on the date of award of this contract as indicated in 48 CFR part 9904.

52.230-5

ADMINISTRATION OF COST ACCOUNTING STANDARDS

(DEC 1994)

For the purpose of.....outlined in paragraphs (a) through (g) of this clause.

(a)(1) For any change in cost accounting practices required to comply with an new, or modified CAS......

(b)(1) Cost impact proposals.....at FAR 52.230-2, Cost Accounting Standards shall identify the applicable standard and all.....

(d) Agree to appropriate contract and .....at FAR 52.230-2 or with subparagraphs (a)(3) or (a)(4) of the //Disclosure and Consistancy....

(f) Notify the Contracting Officer .....based on them, to this contract price or estimated....

(59 FR 67044)

RULES and REGULATIONS

DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Part 31

FAC 90-23; FAR Case 91-45; Item XXI]

RIN 9000-AE81

Federal Acquisition Regulation; Advance Agreements, Composition of Total Cost, and Accounting for Unallowable Costs

Wednesday, December 28, 1994

*67044 AGENCIES: Department of Defense (DOD), General Services

Administration (GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Final rule.

SUMMARY: The Civilian Agency Acquisition Council (CAAC) and the Defense Acquisition Regulations Council (DARC) have agreed on revisions of the Federal Acquisition Regulation (FAR) concerning advance agreements, cost principles, composition of total cost, and accounting for unallowable costs. This final rule represents the first in a series resulting from the Councils' ongoing review of industry recommendations concerning the FAR's contract cost principles and procedures. This regulatory action was not subject to Office of

Management and Budget review under Executive Order 12866, dated September 30, 1993.

EFFECTIVE DATE: February 27, 1995.

FOR FURTHER INFORMATION CONTACT: Mr. Jeremy Olson at (202) 501-3221 in reference to this FAR case. For general information, contact the FAR Secretariat, Room 4037, GS Building, Washington, DC 20405 (202) 501-4755. Please cite FAC 90-23, FAR case 91-45.

SUPPLEMENTARY INFORMATION:

A. Background

A proposed rule was published in the Federal Register at 56 FR 43739, September 4, 1991. The proposed rule, which amends FAR 31.109, Advance agreements; 31.201-1, Composition of total cost; and 31.201-6, Accounting for unallowable costs, is being adopted as a final rule without change. This rule is the first in a series resulting from the Councils' ongoing review of industry recommendations, submitted as part of the Defense Management Review, concerning FAR Part 31, Contract Cost Principles and Procedures. After considering public comments, the Councils have agreed to finalize and publish FAR changes as the deliberations on each increment are completed. Language is added at FAR 31.109(a) to address the use of advance agreements to clarify allowability issues under the specific cost principles, in order to minimize subsequent disputes. The phrase in FAR 31.109(a),"particularly for firms or their divisions that may not be under effective competitive constraints," is deleted because the determination of the reasonableness, allocability, or allowability of a cost under the specific cost principles is not significantly impacted by the business environment in which the industry operates. Changes in FAR 31.201-1 include deleting the word "allowable" in its

first sentence; redesignating the existing paragraph as "(a)"; and inserting a new paragraph "(b)" which makes it clear that while the total cost of a contract includes all allocable costs, the total allowable costs on a Government contract are limited to those allocable costs which are allowable pursuant to Part 31 and agency supplements. FAR 31.201-6(c) is revised to clarify that there is no intended difference in the accounting and presentation of unallowable costs between contracts which are covered by the Cost Accounting

Standards and those which are not.

*67045 B. 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 under the Regulatory Flexibility Act, 5 U.S.C. 601, etseq.,because most contracts awarded to small entities are awarded on acompetitive, fixed- price basis and the cost principles do not apply.

C. Paperwork Reduction Act

The Paperwork Reduction Act does not apply because the changes to the FAR do not impose recordkeeping or information collection requirements, or collections of information from offerors, contractors, or members of the public which require the approval of the Office of Management and Budget under 44 U.S.C. 3501, et seq.

List of Subjects in 48 CFR Part 31

Government procurement.

Dated: December 7, 1994.

Albert A. Vicchiolla,

Director, Office of Federal Acquisition Policy.

Therefore, 48 CFR part 31 is amended as set forth below:

PART 31--CONTRACT COST PRINCIPLES AND PROCEDURES

1. The authority citation for 48 CFR part 31 continues to read as follows:

Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42 U.S.C. 2473(c).

2. Section 31.109 is amended by revising paragraph (a) to read as follows:

31.109 Advance agreements.

(a) The extent of allowability of the costs covered in this part applies broadly to many accounting systems in varying contract situations. Thus, the reasonableness, the allocability and the allowability under the specific cost principles at subparts 31.2, 31.3, 31.6, and 31.7 of certain costs may be difficult to determine. To avoid possible subsequent disallowance or dispute based on unreasonableness, unallocability or unallowability under the specific cost principles at subparts 31.2, 31.3, 31.6, and 31.7, contracting officers and contractors should seek advance agreement on the treatment of special or unusual costs. However, an advance agreement is not an absolute requirement and the absence of an advance agreement on any cost will not, in itself, affect the reasonableness, allocability or the allowability under the specific cost

principles at subparts 31.2, 31.3, 31.6, and 31.7 of that cost.

3. Section 31.201-1 is amended by revising the first sentence of the existing paragraph and designating the paragraph as paragraph (a); and adding paragraph (b) to read as follows:

31.201-1 Composition of total cost.

(a) The total cost of a contract is the sum of the// direct and indirect costs allocable to the contract, incurred or to be incurred, less any allocable credits, plus any allocable cost of money pursuant to 31.205-10. * * *

(b) While the total cost of a contract includes all costs properly allocable to the contract, the allowable costs to the Government are limited to those allocable costs which are allowable pursuant to part 31 and applicable agency supplements.

4. Section 31.201-6 is amended by revising paragraph (c) to read as follows:

31.201-6 Accounting for unallowable costs.

* * * * *

(c) The practices for accounting for and presentation of unallowable costs will be those as described in 48 CFR 9904.405-50, Accounting for Unallowable Costs.

* * * * *

FR Doc. 94-30648 Filed 12-27-94; 8:45 am]

BILLING CODE 6820-34-P

END OF DOCUMENT

(59 FR 67046)

ITEM XXII

POST RETIREMENT BENEFITS -- TRANSITION COSTS

PART 31 -- CONTRACT COST PRINCIPALS AND PROCEDURES

Section 31.205-6 is amended by revising paragraph (o)(2);

redesignating paragraphs (o)(3) through (o)(5) as (o)(4) through (o)(6); and adding a new paragraph (o)(3) and amending the newly designated paragraph (o)(5) by inserting the words "in paragraph (o)(2)(iii) of this section" after "benefits" to read as follows:

31.205-6 Compensation for personal services.

* * * * *

(o) * * *

(2) To be allowable, PRB costs must be reasonable and incurred pursuant to law, employer-employee agreement, or an established policy of the contractor. In addition, to be allowable, PRB costs must also be calculated in accordance with paragraphs (o)(2)(i), (ii) or (iii) of this section.

(i) Cash Basis. Cost recognized as benefits when they are actually provided, must be paid to an insurer, provider, or other recipient for current year benefits or premiums.

(ii) Terminal Funding. If a contractor elects a terminal-funded plan, it does not accrue PRB cost during the working lives of employees. Instead, it accrues and pays the entire PRB liability to an insurer or trustee in a lump sum upon the termination of employees (or upon conversion to such a terminal-funded plan) to establish and maintain a fund or reserve for the sole purpose of providing PRB to retirees. The lump sum is allowable if amortized over a period of 15 years.

(iii) Accrual Basis. Accrual costing other than terminal funding must be measured and assigned according to Generally Accepted Accounting Principals and be paid to an insurer or trustee to establish and maintain a fund or reserve for the sole purpose of providing PRB to retirees. The accrual must also be calculated in accordance with generally accepted actuarial principals and practices as promulgated by the Actuarial Standards Board.

(3) To be allowable, costs must be funded by the time set for filing the Federal income tax return, or any extension thereof. PRB costs assigned to the current year, but not funded or otherwise liquidated by the tax return time, shall not be allowable in any subsequent year.

PART 52 -- SOLICITATION PROVISIONS AND CONTRACT CLAUSES

52.213-59 [Amended]

3. Section 52.215-39 is amended in the clause heading by revising the date to read "(Feb 1995)", and in the second sentence of the clause by removing the reference "31.205-6(o)(5)" and inserting "31.205-6(o)(6)" in its place.

End of part XXII


RULES and REGULATIONS

DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Part 32

FAC 90-23; FAR Case 93-309; Item XXIII]

RIN 9000-AG12

Federal Acquisition Regulation; Advance Payment Reporting

Wednesday, December 28, 1994

AGENCIES: Department of Defense (DOD), General Services

Administration (GSA), and National Aeronautics and Space Administration

(NASA).

ACTION: Final rule.

SUMMARY: The Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council have agreed on an amendment to the Federal Acquisition Regulation (FAR) to remove an obsolete reporting requirement associated with advance payments under 10 U.S.C. 2307. This regulatory action was not subject to Office of Management and Budget review under Executive Order 12866, dated September 30, 1993.

EFFECTIVE DATE: February 27, 1995.

FOR FURTHER INFORMATION CONTACT: Mr. Jeremy Olson at (202) 501-3221 in reference to this FAR case. For general information, contact the FAR Secretariat, Room 4035, GS Building, Washington, DC 20405 (202) 501-4755. Please cite FAC 90-23, FAR case 93-309 in correspondence.

SUPPLEMENTARY INFORMATION:

A. Background

FAR 50.203(b)(4) currently requires advance notice to Congress and a subsequent 60-day waiting period prior to obligating the Government under Public Law 85-804 for an amount in excess of $25 million. The advance notice to Congress requirement currently is imposed on advance payments under 10 U.S.C. 2307, by reference in FAR 32.402(a) to the requirement in 50.203(b)(4). Section 1322(a)(4) of the 1991 Defense Authorization Act (Public Law 101-510)] deleted 10 U.S.C. 2307(d), which had contained the notification and waiting period requirements for advance payments made under the authority of 10 U.S.C. 2307. FAR 32.402(a) has been revised to delete the second sentence concerning the limitation on advance payments prescribed at 50.203(b)(4).

*67047 B. Regulatory Flexibility Act

The final rule does not constitute a significant FAR revision withinthe meaning of FAR 1.501 and Public Law 98-577, and publication forpublic comments is not required. Therefore, the Regulatory Flexibility Act does not apply. However, comments from small entities concerning the affected FAR subpart will be considered in accordance with 5 U.S.C. 610. Such comments must be submitted separately and cite 5 U.S.C. 601, et seq. (FAC 90-23, FAR case 93-309), in correspondence.

C. Paperwork Reduction Act

The Paperwork Reduction Act does not apply because the final rule does not impose recordkeeping or information collection requirements, or collections of information from offerors, contractors, or members of the public which require the approval of the Office of Management and Budget under 44 U.S.C. 3501, et seq.

List of Subjects in 48 CFR Part 32

Government procurement.

Dated: December 7, 1994.

Albert A. Vicchiolla,

Director,Office of Federal Acquisition Policy.

Therefore, 48 CFR part 32 is amended as set forth below:

PART 32--CONTRACT FINANCING

1. The authority citation for 48 CFR part 32 continues to read as follows:

Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42 U.S.C. 2473(c).

32.402 Amended]

2. Section 32.402(a) is amended by removing the second sentence.

FR Doc. 94-30646 Filed 12-27-94; 8:45 am]

BILLING CODE 6820-34-P

RULES and REGULATIONS

DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 34 and 52

FAC 90-23; FAR Case 93-304; Item XXIV]

RIN 9000-AG11

Federal Acquisition Regulation; Defense Production Act Amendments

Wednesday, December 28, 1994

AGENCIES: Department of Defense (DOD), General Services

Administration (GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Interim rule with request for comment.

SUMMARY: The Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council have agreed to an interim rule amending the Federal Acquisition Regulation (FAR) to add policy and procedures for testing and qualification of industrial resources developed under Title III, Defense Production Act Amendments of 1992 (Public Law 102-558). This regulatory action was not subject to Office of Management and Budget review under Executive Order 12866, dated September 30, 1993.

DATES: Effective Date: December 28, 1994.

Comment Date: Comments should be submitted to the FAR Secretariat at the address shown below on or before February 27, 1995, to be considered in the formulation of a final rule.

ADDRESSES: Interested parties should submit written comments to: General Services Administration, FAR Secretariat (VRS), 18th & F Streets, NW., Room 4035, Attn: Ms. Beverly Fayson, Washington, DC 20405.

Please cite FAC 90-23, FAR case 93-304 in all correspondence related to this case.

FOR FURTHER INFORMATION CONTACT: Mr. Jack O'Neill at (202) 501-3856 in reference to this FAR case. For general information, contact the FAR Secretariat, Room 4037, GS Building, Washington, DC 20405, (202) 501-4755.

Please cite FAC 90-23, FAR case 93-304.

SUPPLEMENTARY INFORMATION:

A. Background

Title III of the Defense Production Act (DPA) of 1950 authorizes various forms of Government assistance to encourage expansion of production capacity and supply of industrial resources essential to national defense. The DPA Amendments of 1992 provide for the testing, qualification, and use of industrial resources manufactured or developed with assistance provided under Title III of the DPA. This interim rule expresses Government policy to pay for such testing, and provides definitions, procedures, and a contract clause to

implement the policy.

B. Regulatory Flexibility Act

The addition of FAR Subpart 34.1 may 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 small entities are sometimes asked to perform the qualification testing required under the rule. An Initial Regulatory Flexibility Analysis has been prepared and is summarized as follows:

The change is required to implement amendments to the DefenseProduction Act of 1950 made by Public Law 102-558. This rule clarifies the Government policy to pay for testing of industrial resources manufactured or developed with assistance provided under Title III of the Defense Production Act. The rule will apply to any small entity that has Government contracts that require qualification testing under the Act. A reporting requirement is in the rule that requires contractors who perform this testing to provide the test results to the Government. The rule does not duplicate, overlap, or conflict with other existing Federal rules and there are no significant alternatives to it. A copy of the IRFA may be obtained from the FAR Secretariat. Comments from small entities concerning the affected FAR subpart will be considered in accordance with 5 U.S.C. 610. Such comments must be submitted separately and cite FAR case 93-610 in correspondence.

C. Paperwork Reduction Act

The Paperwork Reduction Act (Pub. L. 96-511) is deemed to apply because the final rule contains information collection requirements. Accordingly, a request for approval of a new information collection requirement concerning 9000-0133, Defense Production Act Amendments, was submitted to the Office of Management and Budget under 44 U.S.C. 3501, et seq and approved through September 30, 1997. Public comments concerning this request were invited through a subsequent Federal Register notice published at 59 FR 42823, August 19, 1994.

D. 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 compelling reasons exist to promulgate this interim rule without prior opportunity for public comment. This action is necessary because the Defense Production Act Amendments of 1992 (Pub. L. 102-558) require implementation by July 26, 1993. However, pursuant to Public Law 98-577 and Federal Acquisition Regulation 1.501, public comments received in response to this interim rule will be considered in formulating the final rule.

List of Subjects in 48 CFR Parts 34 and 52

Government procurement.

Dated: December 7, 1994.

Albert A. Vicchiolla,

Director, Office of Federal Acquisition Policy.

Therefore, 48 CFR parts 34 and 52 are amended as set forth below:

1. The authority citation for 48 CFR parts 34 and 52 continues to read as

follows:

Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42 U.S.C. 2473(c).

PART 34--MAJOR SYSTEM ACQUISITION

2. The subpart heading "34.0--General" is added immediately above section 34.000.

3. Part 34 is amended by adding Subpart 34.1 to read as follows:

Subpart 34.1--Testing, Qualification and Use of Industrial Resources Developed Under Title III, Defense Production Act

Sec.

34.100 Scope of subpart.

34.101 Definitions.

34.102 Policy.

34.103 Testing and qualification.

34.104 Contract clause.

Subpart 34.1--Testing, Qualification and Use of Industrial Resources Developed Under Title III, Defense Production Act

34.100 Scope of subpart.

This subpart prescribes policies and procedures for the testing,

qualification, and use of industrial resources manufactured or developed with assistance provided under section 301, 302, or 303 of the Defense Production Act (50 U.S.C. App. 2091-2093). Title III of the Defense Production Act authorizes various forms of Government assistance to encourage expansion of production capacity and supply of industrial resources essential to national defense.

34.101 Definitions.

Item of supply, for the purpose of this subpart, means any individual part, component, subassembly, assembly, or subsystem integral to a major system, and other property which may be replaced during the service life of the system. The term includes spare parts and replenishment parts, but does not include packaging or labeling associated with shipment or identification of an "item."

34.102 Policy.

It is the policy of the Government, as required by section 126 of Public Law 102-558, to pay for any testing and qualification required for the use or incorporation of the industrial resources manufactured or developed with assistance provided under Title III of the Defense Production Act of 1950.

34.103 Testing and qualification.

(a) Contractors receiving requests from a Title III project contractor for testing and qualification of a Title III industrial resource shall refer such requests to the contracting officer. The contracting officer shall evaluate the request in accordance with agency procedures to determine whether: (1) the Title III industrial resource is being or potentially may be used in the development or manufacture of a major system or item of supply; and (2) for major systems in production, remaining quantities to be acquired are sufficient to justify incurring the cost of testing and qualification. In evaluating this request, the contracting officer shall consult with the Defense Production Act Office, Title III Program, located at Wright Patterson Air Force Base, Ohio 45433-7739.

(b) If the determination at 34.103(a) is affirmative, the contracting officer shall modify the contract to require the contractor to test the Title III industrial resource for qualification.

(c) The Defense Production Act Office, Title III Program, shall provide to the contractor the industrial resource produced by the Title III project contractor in sufficient amounts to meet testing needs.

34.104 Contract clause.

Insert the clause at 52.234-1, Industrial Resources Developed under Defense Production Act, Title III, in all contracts for major systems and items of supply.

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

4. Section 52.234-1 is added to read as follows:

52.234-1 Industrial Resources Developed Under Defense Production Act Title

III.

As prescribed at 34.104, insert the following clause:

Industrial Resources Developed Under Defense Production Act Title III (Dec, 1994)

(a) Definitions.

Title III industrial resource means materials, services, processes, or manufacturing equipment (including the processes, technologies, and ancillary services for the use of such equipment) established or maintained under the authority of Title III, Defense Production Act (50 U.S.C. App. 2091-2093). Title III project contractor means a Contractor that has received assistance for the development or manufacture of an industrial resource under 50 U.S.C. App. 2091-2093, Defense Production Act.

(b) The Contractor shall refer any request from a Title III project

contractor for testing and qualification of a Title III industrialresource to the Contracting Officer. (c) Upon the direction of the Contracting Officer, the Contractor shall test Title III industrial resources for qualification. The Contractor shall provide the test results to the Defense Production Act Office, Title III Program, located at Wright Patterson Air Force Base, Ohio 45433-7739.

(d) When the Contracting Officer modifies the contract to direct testing pursuant to this clause, the Government will provide the Title III industrial resource to be tested and will make an equitable adjustment in the contract for the costs of testing and qualification of the Title III industrial resource.

(e) The Contractor agrees to insert the substance of this clause, including paragraph (e), in every subcontract issued in performance of this contract. (End of clause)

FR Doc. 94-30645 Filed 12-27-94; 8:45 am]

BILLING CODE 6820-34-P

END OF DOCUMENT

(59 FR 67048)

RULES and REGULATIONS

DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Part 35

FAC 90-23; FAR Case 93-29; Item XXV]

RIN 9000-AF89

Federal Acquisition Regulation; Defense Technical Information Center

Wednesday, December 28, 1994

*67048 AGENCIES: Department of Defense (DOD), General Services

Administration (GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Final rule.

SUMMARY: The Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council have agreed on a final rule to amend the Federal Acquisition Regulation (FAR) by removing guidance and address information that applies solely to DOD contractors for more appropriate insertion into the Defense FAR Supplement (DFARS). The language being removed provides Defense Technical Information Center (DTIC) address information, and instructs contractors to submit copies of scientific and technical reports resulting from DOD contracts to DTIC. This regulatory action was not subject to Office of Management and Budget review under Executive Order 12866, dated September 30, 1993.

EFFECTIVE DATE: February 27, 1995.

*67049 FOR FURTHER INFORMATION CONTACT: Mr. Jack O'Neill at (202) 501-3856 in reference to this FAR case. For general information, contact the FAR Secretariat, room 4037, GS Building, Washington, DC 20405, (202) 501-4755. Please cite FAC 90-23, FAR case 93-29.

SUPPLEMENTARY INFORMATION:

A. Regulatory Flexibility Act

The final rule does not constitute a significant FAR revision within the meaning of FAR 1.501 and Public Law 98-577, and publication for public comments is not required. Therefore, the Regulatory Flexibility Act does not apply. However, comments from small entities concerning the affected subpart will be considered in accordance with 5 U.S.C. 610. Such comments must be submitted separately and cite 5 U.S.C. 601, et seq. (FAC 90-23, FAR case 93-29), in correspondence.

B. Paperwork Reduction Act

The Paperwork Reduction Act does not apply because the changes to the FAR do not impose recordkeeping or information collection requirements, or collections of information from offerors, contractors, or members of the public which require the approval of the Office of Management and Budget under 44 U.S.C. 3501, et seq.

List of Subjects in 48 CFR Part 35

Government procurement.

Dated: December 7, 1994.

Albert A. Vicchiolla,

Director, Office of Federal Acquisition Policy.

Therefore, 48 CFR part 35 is amended as set forth below:

PART 35--RESEARCH AND DEVELOPMENT CONTRACTING

1. The authority citation for 48 CFR part 35 continues to read as follows:

Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42 U.S.C. 2473(c).

2. Section 35.010 is amended by revising paragraph (b) to read as follows:

35.010 Scientific and technical reports.

* * * * *

(b) Agencies should make R&D contract results available to other Government activities and the private sector. Contracting officers shall follow agency regulations regarding such matters as national security, protection of data, and new-technology dissemination policy. //Reports should be sent to the National Technical Information Service (NTIS), 5285 Port Royal Road, Springfield, VA 22161. When agencies require that completed reports be covered by a report documentation page, Standard Form (SF) 298, Report Documentation Page, the contractor should submit a copy with the report.

FR Doc. 94-30644 Filed 12-27-94; 8:45 am]

BILLING CODE 6820-34-P

END OF DOCUMENT

( 59 FR 67049)

RULES and REGULATIONS

DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 36 and 52

FAC 90-23; FAR Case 90-62; Item XXVI]

RIN 9000-AE30

Federal Acquisition Regulation; Construction Contracting

Wednesday, December 28, 1994

AGENCIES: Department of Defense (DOD), General Services

Administration (GSA), and National Aeronautics and Space Administration

(NASA).

ACTION: Final rule.

SUMMARY: The Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council have agreed on a final rule which will add to the Federal Acquisition Regulation (FAR) a new clause, Preconstruction Conference, and a new solicitation provision, Site Visit (Construction). Prescriptions for the provision and clause are included in the FAR. Preconstruction Orientation is added and includes information previously in several other paragraphs in the proposed rule. The most significant change from the proposed rule is the deletion of Alternate III to the current clause, Specifications and Drawings for Construction. The proposed rule was published in the Federal Register at 56 FR 3954, January 31, 1991. This regulatory action was not subject to Office of Management and Budget review under Executive Order 12866, dated September 30, 1993.

EFFECTIVE DATE: February 27, 1995.

FOR FURTHER INFORMATION CONTACT: Mr. Jack O'Neill at (202) 501-3856 in reference to this FAR case. For general information, contact the FAR Secretariat, room 4037, GS Building, Washington, DC 20405 (202) 501-4755. Please cite FAC 90-23, FAR case 90-62.

SUPPLEMENTARY INFORMATION:

A. Background

Similar versions of the provision at 52.236-27 and the clause at 52.236-26 have been used by various military activities in fixed price construction contracts, and in contracts for dismantling, demolition, or removal of improvements. The Councils determined they would be beneficial to contractors and civilian and defense agencies.

B. 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 under the Regulatory Flexibility Act, 5 U.S.C. 601, et seq., because the changes merely provide information to offerors and contractors concerning details of preconstruction conferences and site visits.

C. Paperwork Reduction Act

The Paperwork Reduction Act does not apply because the changes to the FAR do not impose recordkeeping or information collection requirements, or collections of information from offerors, contractors, or members of the public which require the approval of the Office of Management and Budget under 44 U.S.C. 3501, et seq.

List of Subjects in 48 CFR Parts 36 and 52

Government procurement.

Dated: December 7, 1994.

Albert A. Vicchiolla,

Director, Office of Federal Acquisition Policy.

Therefore, 48 CFR parts 36 and 52 are amended as set forth below:

1. The authority citation for 48 CFR parts 36 and 52 continues to read as follows:

Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42 U.S.C. 2473(c).

PART 36--CONSTRUCTION AND ARCHITECT-ENGINEER CONTRACTS

2. Section 36.212 is added to read as follows:

36.212 Preconstruction orientation.

(a) The contracting officer will inform the successful offeror of significant matters of interest, including--(1) statutory matters such as labor standards (subpart 22.4), and subcontracting plan requirements (subpart 19.7); and (2) other matters of significant interest, including who has authority to decide matters such as contractual, administrative (e.g., security, safety, and fire and environmental protection), and construction responsibilities.

(b) As appropriate, the contracting officer may issue an explanatory letter or conduct a preconstruction conference.

(c) If a preconstruction conference is to be held, the contracting officer shall--

(1) Conduct the conference prior to the start of construction at the work site;

(2) Notify the successful offeror of the date, time, and location of the conference (see 36.522); and

(3) Inform the successful offeror of the proposed agenda and any need for attendance by subcontractors.

36.305 Removed]

3. Section 36.305 is removed.

4. Sections 36.522 and 36.523 are added to read as follows:

36.522 Preconstruction conference.

If the contracting officer determines it may be desirable to hold a

preconstruction conference, the contracting officer shall insert a clause substantially the same as the clause at 52.236-26, Preconstruction Conference, in solicitations and fixed price contracts for construction or for dismantling, demolition or removal of improvements.

36.523 Site visit.

The contracting officer shall insert a provision substantially the same as the provision at 52.236-27, Site Visit (Construction), in solicitations which include the clauses at 52.236-2, Differing Site Conditions, and 52.236-3, Site Investigations and Conditions Affecting the Work. Alternate I may be used when an organized site visit will be conducted.

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

5. Sections 52.236-26 and 52.236-27 are added to read as follows:

52.236-26 Preconstruction Conference.

As prescribed in 36.522, insert the following clause:

Preconstruction Conference (Feb. 1995)

If the Contracting Officer decides to conduct a preconstruction conference, the successful offeror will be notified and will be required to attend. The Contracting Officer's notification will include specific details regarding the date, time, and location of the conference, any need for attendance by subcontractors, and information regarding the items to be discussed.

(End of clause)

52.236-27 Site Visit (Construction).

As prescribed in 36.523, insert a provision substantially the same as the following:

Site Visit (Construction) (Feb. 1995)

(a) The clauses at 52.236-2, Differing Site Conditions, and 52.236-3, Site Investigations and Conditions Affecting the Work, will be included in any contract awarded as a result of this solicitation. Accordingly, offerors or quoters are urged and expected to inspect the site where the work will be performed.

(b) Site visits may be arranged during normal duty hours by contacting:

Name:

Address:

Telephone:

(End of provision)

Alternate I (FEB 1995). If an organized site visit will be conducted, substitute a paragraph substantially the same as the following for paragraph (b) of the basic provision:

(b) An organized site visit has been scheduled for--

(Insert date and time)

(c) Participants will meet at--

(Insert location)

(End of provision)

FR Doc. 94-30643 Filed 12-27-94; 8:45 am]

BILLING CODE 6820-34-P

END OF DOCUMENT

RULES and REGULATIONS

DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Part 37

FAC 90-23; FAR Case 91-103; Item XXVII]

This interim rule amends Part 37 to implement 42 U.S.C. 13041 by adding a definition of "child care services" at 37.101 and adding language at 37.103(d) requiring Contracting Officers to ensure that contracts for child care services inxlude requirements for criminal history backgroung checks on employees who will perform child care services.

The following definition is added to 37.101.

"Child care services" means child protective services (including the investigation of child abuse and neglect reports), social services, health, and mental health care, child (day) care, education (whether or not directly involved in teaching), foster care, residential care, recreational and rehabilitative programs, and detention, correctional, or treatment services.

The following paragraph (d) is added to 37.103.

(d) Ensure that contracts for child care services include requirements for criminal history background checks on employees who will perform child care services under the contract in accordance with 42 U.S.C. 13041, as amended, and agency procedures.

(59 FR 67051)

RULES and REGULATIONS

DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 42 and 52

FAC 90-23; FAR Case 91-103; Item XXVIII]

RIN 9000-AF68

Federal Acquisition Regulation; Final Indirect Cost Agreements

Wednesday, December 28, 1994

*67051 AGENCIES: Department of Defense (DOD), General Services

Administration (GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Final rule.

SUMMARY: The Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council have agreed to amend the Federal Acquisition Regulation (FAR) to eliminate the requirements for contractors to execute a Certificate of Current Cost or Pricing Data in conjunction with final indirect cost agreements on facilities contracts and for auditors to obtain a certificate under auditor determination procedures for final indirect cost rates. This regulatory action was not subject to Office of Management and Budget review under Executive Order No. 12866 dated September 30, 1993.

EFFECTIVE DATE: February 27, 1995.

FOR FURTHER INFORMATION CONTACT: Mr. Jeremy F. Olson at (202) 501-3221 in

reference to this FAR case. For general information, contact the FAR

Secretariat, Room 4037, GS Building, Washington, DC 20405 (202) 501-4755. Please cite FAC 90-23, FAR case 91-103 in correspondence.

SUPPLEMENTARY INFORMATION:

A. Background

Proposed amendments to FAR 42.705-2 and the clause at 52.216-13 were published in the Federal Register at 59 FR 14459, March 28, 1994, requesting comments. Three responses were received. Each supported the proposed rule. One commentator made a recommendation for additional revisions, which the Councils considered unnecessary. The Councils agreed to a final rule, with no change to the proposed rule previously published.

B. Regulatory Flexibility Act

This final rule will not have a significant economic impact on a substantial number of small entities under the Regulatory Flexibility Act, 5 U.S.C. 601, et seq., because most contracts awarded to small entities are awarded on a competitive, fixed-price basis and the requirements for certified cost or pricing data do not apply.

C. Paperwork Reduction Act

The Paperwork Reduction Act does not apply because the revisions do not impose recordkeeping or information collection requirements, or collections of information from offerors, contractors, or members of the public which require the approval of the Office of Management and Budget under 44 U.S.C. 3501, et seq. Existing approvals of information collection requirements under OMB control numbers 9000-0013 and 9000-0069 correspond to this rule. The rule

merely deletes a certificate requirement. Certifications are exempt under 5 CFR 1320.7(j)(1) from the requirement.

*67052 List of Subjects in 48 CFR Parts 42 and 52

Government procurement.

Dated: December 7, 1994.

Albert A. Vicchiolla,

Director, Office of Federal Acquisition Policy.

Therefore, 48 CFR parts 42 and 52 are amended as set forth below:

1. The authority citation for 48 CFR parts 42 and 52 continues to read as follows:

Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42 U.S.C. 2473(c).

PART 42--CONTRACT ADMINISTRATION

42.705-2

Amended]

2. Section 42.705-2 is amended by removing paragraph (b)(2)(ii) and

redesignating paragraphs (b)(2)(iii) through (b)(2)(vi), as (b)(2)(ii) through

(b)(2)(v), respectively.

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

52.216-13 Amended]

3. Section 52.216-13 is amended by revising the date in the heading of the clause to read "(FEB 1995)", and in paragraph (c)(2) of the clause by removing the last sentence.

FR Doc. 94-30641 Filed 12-27-94; 8:45 am]

BILLING CODE 6820-34-P

END OF DOCUMENT


FAC 90-23, FAR CASE 91-86, ITEM XXIX

Consent to Subcontract

Section 44.201-1 is amended by revising paragraph (b) to read as follows:

* * * * *

(b) If the contractor has an approved purchasing system--

(1) The consent to subcontracts is not required under other fixed-price prime contracts (but see paragraph (b)(2) of this section); and

(2) Consent is required for subcontracts identified in the subcontracts clause of this contract. These can be subcontracts for critical systems, subsystems, or components or other subcontracts selected by the contracting officer as needing special surveillance. Subcontracts may be identified by subcontract number or by class of items (e.g., subcontracts for engines on a prime contract for airframes).

* * * * *

Section 44.201-2 is amended by revising paragraph (c) and removing paragraph (d) to read as follows:

(c) If the contractor has an approved purchasing system--

(1) Consent is not required for the subcontracts identified in paragraph (b) of this section (but see paragraph (c)(2) of this section). However, advance notification is still required by 10 U.S.C. 2306(e) or 41 U.S.C. 254(b); and

(2) Consent is required for subcontracts identified in the subcontracts clause of the contract. These can be subcontracts for critical systems, subsystems, or components, or other subcontracts selected by the contracting officer as needing special surveillance. Subcontracts may be identified by subcontract number or by class of items (e.g., subcontracts for engines on a prime contract for airframes).

Section 44.204 is amended by revising paragraph (a)(3) to read as follows:

(a)* * *

(3) If the contracting officer elects to delete the requirement for advance notification of, or consent to, any subcontracts that were evaluated during negotiations,[] the contracting officer shall use the clause with its Alternate I []

* * * * *

44.205 [Removed]

Section 44.205 is removed.

PART 52, SOLICITATION PROVISIONS AND CONTRACT CLAUSES

Section 52.244-1 is amended by revisiing the date of the clause to read "Feb 1995", and paragraph (e) to read as follows:

52.244-1, Subcontracts, (Fixed-Price Contracts)

* * * * *

(e) Even if the Contractor's purchasing system has been approved, the Contractor shall obtain the Contracting Officer's written consent before palcing subcontracts identified below:

________________________________________________________________

________________________________________________________________

* * * * *

Section 52.244-2 is amended by revising the date of the clause to read "(Feb 1995)", and paragraphs (d) and (e) to read as follows:

52.244-2 Subcontracts (Cost Reimbursement and Letter Contracts)(FEB, 1995)

* * * * *

(d) If the Contractor has an approved purchasing system and the subcontract is within the scope of such approval, the Contractor may enter into the subcontracts described in subparagraphs (a)(1) and (a)(2) of this clause without the consent of the Contracting Officer.

(e) Even if the Contractor's purchasing system has been approved, the Contractor shall obtain the Contracting Officer's consent before placing subcontracts identified below:

______________________________________________________________________

______________________________________________________________________

* * * * *












(59 FR 67053)

RULES and REGULATIONS

DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Part 44

FAC 90-23; FAR Case 90-53; Item XXX]

RIN 9000-AE22

Federal Acquisition Regulation; Contractors' Purchasing Systems Reviews

Wednesday, December 28, 1994

AGENCIES: Department of Defense (DOD), General Services

Administration (GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Final rule.

SUMMARY: The Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council have agreed on a final rule revising the Federal Acquisition Regulation (FAR) concerning the procedures for performing Contractors' Purchasing Systems Reviews (CPSR). The revision and amendments help streamline the acquisition process, reduce contractor oversight, and eliminate or reduce regulatory burdens on both contracting officers and

contractors. This regulatory action was not subject to Office of Management and Budget review under Executive Order 12866, dated September 30, 1993.

EFFECTIVE DATE: February 27, 1995.

FOR FURTHER INFORMATION CONTACT: Ms. Linda Klein at (202) 501-3775 in reference to this FAR case. For general information, contact the FAR Secretariat, Room 4037, GS Building, Washington, DC 20405 (202) 501-4755. Please cite FAC 90-23, FAR case 90-53.

SUPPLEMENTARY INFORMATION

A. Background

The proposed rule recommended revisions to FAR 44.302(b) and 44.304(a) and (b). The revision to 44.302(b) extended the reasons a special review may be conducted to include a major change or deficiency in the contractor's policy, procedures, or key personnel and removed the parenthetical. The revision to FAR 44.304(a) removed the requirement for Administrative Contracting Officers (ACO's) to make an annual determination concerning whether to continue purchasing system approval based on formal surveillance, or to request a CPSR or special review as a basis for continuing or withdrawing approval. The revision to 44.304(b) substituted the words "should include" for the words "shall include" when referring to what needs to be included in an ACO's surveillance plan, thus permitting the contracting officer more latitude and discretion in the development, approach and scope of the plan. In addition, the last sentence of 44.304(b) was removed as unnecessary. The proposed rule was published in the Federal Register at 55 FR 42810, October 23, 1990, with a request for comments. Sixteen responses were received, consisting of eleven concurrences and no comment, and five comments. After evaluating the comments, the councils approved a change to the proposed rule. The last sentence in 44.304(b) was reinstated and revised to read: "Duplicative reviews of the same areas by CPSR and other surveillance monitors should be avoided." The sentence also was revised to provide the contracting officer greater flexibility in cases where additional surveillance or special reviews are warranted.

B. 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 under the Regulatory Flexibility Act, 5 U.S.C. 601, et seq., because the changes to FAR 44.302 and FAR 44.304 are designed to streamline the acquisition process, reduce contractor oversight, and to eliminate or reduce regulatory burdens on both contracting officers and contractors. No responses were received which commented on the proposed rule's Regulatory Flexibility Act

statement.

C. Paperwork Reduction Act

The Paperwork Reduction Act does not apply because the changes to the FAR do not impose recordkeeping or information collection requirements, or collections of information from offerors, contractors, or members of the public which require the approval of the Office of Management and Budget under 44 U.S.C. 3501, et seq.

List of Subjects in 48 CFR Part 44

Government procurement.

Dated: December 7, 1994.

Albert A. Vicchiolla,

Director, Office of Federal Acquisition Policy.

Therefore, 48 CFR part 44 is amended as set forth below:

PART 44--SUBCONTRACTING POLICIES AND PROCEDURES

1. The authority citation for 48 CFR part 44 continues to read as follows:

Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42 U.S.C. 2473(c).

2. Section 44.302 is amended by revising paragraph (b) to read as follows:

44.302 Requirements.

* * * * *

(b) A CPSR shall be conducted by the cognizant contract administration agency (see subpart 42.3) at least every 3 years for contractors that continue to meet the requirements of paragraph (a) of this section. This review may be accomplished at one time or on a continuing basis. A more frequent review cycle may be established if warranted// and special reviews may be conducted when information reveals a deficiency or major change in the contractor's purchasing system, policy, procedures or key personnel.

44.304 Amended]

3. Section 44.304 is amended in paragraph (a) by removing the second sentence; and in paragraph (b) by removing in the second, third, and fourth sentences the word "shall" and inserting "should" in its place.

FR Doc. 94-30639 Filed 12-27-94; 8:45 am]

BILLING CODE 6820-34-P

END OF DOCUMENT






RULES and REGULATIONS

DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Part 45

FAC 90-23; FAR Case 90-34; Item XXXI

Transfers of Government Property:

This final rule revises the FAR at 45.311 abd 45.603 to ensure that Government property is transfered and documented properly.

{45.311} Providing Government Property by Transfer.

Government Property shall be transfered only if there is a requirement under the gaining contract. Transfers of Government Property, as Government-furnished property, shall be documented by a modification to the gaining contract. A modification or other documentation listing all items of property transferred is required for the losing contract.

{45.603} Disposal methods.

An agency may exercise its rights to require delivery of any contractor inventory. This includes transfers of Government Property to another Government contract. If the agency does not exercise these rights, the contractor inventory shall be disposed of by one of the following methods in the priority indicated:


(59 FR 67056)

RULES and REGULATIONS

DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Part 47

FAC 90-23; FAR Case 88-56; Item XXXII]

Commercial bills of lading under cost-reimbursement constacts Audit by GSA.

FAR 47.104-4 is amended to prescribe the added clause at 52.247-67, Submission of Commercial Transportation Bills to the GSA for audit, in solicitations and contracts when a cost-reimbursement contract is contemplated and will result in a direct charge to the contract or a first tier subcontract.

47.104-4 is ammended by adding paragraph (c), as follows:

(c) The Contracting Officer shall insert the clause at 52.247-67, Submission of Commercial Transportation Bills to the General Services Administration for audit, in solicitations and contracts when a cost-reimbursement contract is contemplated and the contract or a first- tier cost-reimbursement subcontract thereunder will authorize reimbursement of transportation as a direct charge to the contract or subcontract.




RULES and REGULATIONS

DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Part 52

FAC 90-23; FAR Case 92-612; Item XXXIII]

RIN 9000-AF56

Federal Acquisition Regulation; Qualification Requirements

Wednesday, December 28, 1994

*67056 AGENCIES: Department of Defense (DOD), General Services

Administration (GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Final rule.

SUMMARY: The Civilian Agency Acquisition Council (CAAC) and the Defense Acquisition Regulations Council (DARC) have agreed on a final rule to amend the Federal Acquisition Regulation's (FAR) clause, Qualification Requirements, to preclude rejection of a bid solely because the bidder has not submitted evidence of qualification at the time of bid opening. This regulatory action was not subject to Office of Management and Budget review under Executive Order 12866, dated September 30, 1993.

EFFECTIVE DATE: February 27, 1995.

FOR FURTHER INFORMATION CONTACT: Mr. Jack O'Neill at (202) 501-3856 in reference to this FAR case. For general information, contact the FAR Secretariat, room 4037, GS Building, Washington, DC 20405 (202) 501-4755. Please cite FAC 90-23, FAR case 92-612.

SUPPLEMENTARY INFORMATION:

A. Background

Paragraph (e) of the current clause at 52.209-1 may be inconsistent with the ruling of the General Accounting Office (GAO) in Gardner Zemke Company, Comptroller General Decision B-238334, April 5, 1990. In order to remove the inconsistencies between paragraphs (b) and (e) of the clause in light of the GAO decision, the CAAC and DARC have revised paragraph (e) to make it clear that a contracting officer may not reject a bid solely for the reason that the bidder has not provided evidence of qualification at the time of bid opening.

B. 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 under the Regulatory Flexibility Act, 5 U.S.C. 601, et seq., because the rule simply removes inconsistencies in the clause at 52.209-1, Qualification Requirements. Comments submitted in response to the proposed rule did not raise any issues that demonstrate potentially significant impact.

C. Paperwork Reduction Act

The Paperwork Reduction Act does not apply because the changes to the FAR do not impose recordkeeping or information collection requirements, or collections of information from offerors, contractors, or members of the public which require the approval of the Office of Management and Budget under 44 U.S.C. 3501, et seq.

List of Subjects in 48 CFR Part 52

Government procurement. Dated: December 7, 1994.

Albert A. Vicchiolla,

Director, Office of Federal Acquisition Policy.

Therefore, 48 CFR part 52 is amended as set forth below:

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

1. The authority citation for 48 CFR part 52 continues to read as

follows:

Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42 U.S.C. 2473(c).

2. Section 52.209-1 is amended by revising the date of the clause and

paragraph (e) to read as follows:

52.209-1 Qualification Requirements.

* * * * *

Qualification Requirements (Feb. 1995)

* * * * *

(e) If an offeror, manufacturer, source, product or service has met the qualification requirement but is not yet on a qualified product qualified manufacturers list, or qualified bidders list, the offeror must submit evidence of qualification prior to award of this contract. Unless determined to be in the Government's interest, award of this contract shall not be delayed to permit an offeror to submit evidence of qualification.

* * * * *

FR Doc. 94-30636 Filed 12-27-94; 8:45 am]

BILLING CODE 6820-34-P

END OF DOCUMENT

(59 FR 67056)

RULES and REGULATIONS

DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Part 52

FAC 90-23; FAR Case 92-628; Item XXXIV]

RIN 9000-AG09

Federal Acquisition Regulation; Small Business and Small Disadvantaged Business

Subcontracting Plan

Wednesday, December 28, 1994

*67056 AGENCIES: Department of Defense (DOD), General Services

Administration (GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Final rule.

SUMMARY: The Civilian Agency Acquisition Council (CAAC) and the Defense Acquisition Regulations Council (DARC) have agreed to amend the Federal Acquisition Regulation (FAR) to state that a firm may rely on the information contained in the Procurement Automated Source System (PASS) as an accurate representation of a concern's size and ownership characteristics for purposes of maintaining a small business source list and as its source list. This regulatory action was not subject to Office of Management and Budget review under Executive Order 12866, dated September 30, 1993.

EFFECTIVE DATE: February 27, 1995.

FOR FURTHER INFORMATION CONTACT: Ms. Shirley Scott at (202) 501-0168 in reference to this FAR case. For general information, contact the FAR Secretariat, room 4037, GS Building, Washington, DC 20405 (202) 501-4755. Please cite FAC 90-23, FAR case 92-628.

SUPPLEMENTARY INFORMATION:

A. Background

The Small Business Administration (SBA) amended its size regulations in the Federal Register at 58 FR 47371, September 9, 1993, to make a general policy statement that prime contractors may rely on the information contained in SBA's Procurement Automated *67057 Source System (PASS) as an accurate representation of a concern's size and ownership characteristics for the purpose of maintaining a small business source list. The current regulation, while not specifically requiring an annual certification, is apparently being interpreted as requiring one. A number of large businesses are under the impression that as a part of a subcontracting plan, they are required to obtain certifications as to the size and socio- economic status of their potential subcontractors on an annual basis. This has resulted in substantial effort and the expenditure of several million dollars each year by contractors in trying to keep their small business sourcelists up to date. It has also resulted in small businesses on those lists receiving numerous requests from different companies for the same type of information. The current wording of the FAR clause at 52.219-9, Small Business and Small Disadvantaged Business Subcontracting Plan, does not clearly indicate that a prime contractor's use of the PASS will meet the requirement to both establish and maintain a mailing list for potential small, small disadvantaged, and women-owned businesses. This rule will clarify that contractor's can meet the requirement to maintain a current bidders list through use of the SBAPASS.

B. Regulatory Flexibility Act

This final rule does not constitute a significant FAR revision within the meaning of FAR 1.501 and Public Law 98-577 and publication for public comment is not required. Therefore, the Regulatory Flexibility Act does not apply. However, comments from small entities concerning the affected FAR subpart will be considered in accordance with 5 U.S.C. 610. Such comments must be submitted separately and cite FAC 90-23, FAR Case 92-628 in correspondence.

C. Paperwork Reduction Act

The Paperwork Reduction Act does not apply because the changes to the final rule do not impose recordkeeping or information collection requirements which require the approval of the Office of Management and Budget under 44 U.S.C. 3501, et seq.

List of Subjects in 48 CFR Part 52

Government procurement.

Dated: December 7, 1994.

Albert A. Vicchiolla,

Director, Office of Federal Acquisition Policy.

Therefore, 48 CFR part 52 is amended as set forth below:

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

1. The authority citation for 48 CFR part 52 continues to read as follows:

Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42 U.S.C. 2473(c).

2. Section 52.219-9 is amended by revising the clause date to read "(Feb 1995)"; and adding three sentences to the end of paragraph (d)(5) and revising (d)(11)(i) to read as follows:

52.219-9 Small Business and Small Disadvantaged Business Subcontracting Plan.

* * * * *

Small Business and Small Disadvantaged Business Subcontracting Plan (Feb 1995)

(d) * * *

(5) * * * A firm may rely on the information contained in PASS as an accurate representation of a concern's size and ownership characteristics for purposes of maintaining a small business source list. A firm may rely on PASS as its small business source list. Use of the PASS as its source list does not relieve

a firm of its responsibilities (i.e., outreach, assistance, counseling, publicizing subcontracting opportunities) in this clause.

* * * * *

(11) * * *

(i) Source lists, e.g., PASS guides and other data that identify small and small disadvantaged business concerns.

* * * * *

FR Doc. 94-30637 Filed 12-27-94; 8:45 am]

BILLING CODE 6820-34-P

END OF DOCUMENT

(59 FR 67057)

RULES and REGULATIONS

DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Part 52

FAC 90-23; FAR Case 91-11; Item XXXV]

RIN 9000-AE57

Federal Acquisition Regulation; Shipments to Ports and Air Terminals

Wednesday, December 28, 1994

*67057 AGENCIES: Department of Defense (DOD), General Services

Administration (GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Final rule.

SUMMARY: The Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council have agreed on a final rule to amend the Federal Acquisition Regulation (FAR) concerning the provision, Evaluation of Export Offers, to require contracting officers to publish, with the solicitation, available information on port handling and ocean charges for DOD water terminals. Several editorial and minor technical changes were also made to the provision. This regulatory action was not subject to Office of Management and

Budget (OMB) review under Executive Order 12866, dated September 30, 1993.

EFFECTIVE DATE: February 27, 1995.

FOR FURTHER INFORMATION CONTACT: Mr. Peter O'Such at (202) 501-1759 in reference to this FAR case. For general information, contact the FAR Secretariat, room 4037, GS Building, Washington, DC 20405 (202) 501-4755. Please cite FAC 90-23, FAR case 91-11.

SUPPLEMENTARY INFORMATION:

A. Background

This change was recommended as a result of the Defense Management Review Regulatory Reform initiative. The Councils determined that language in FAR supplements would be useful for all Federal contracting activities. The proposed rule was published in the Federal Register at 56 FR 20573, May 6, 1991. We received and evaluated public comments and made revisions to the proposed rule based on public comments.

B. Regulatory Flexibility Act

The Department of Defense, the General Services Administration, and the National Aeronautics and Space Administration certify that this rule will not have a significant economic impact on a substantial number of small entities under the Regulatory Flexibility Act, 5 U.S.C. 601, et seq., because it prescribes Government responsibilities for furnishing port handling and ocean charges in the solicitation.

C. Paperwork Reduction Act

The Paperwork Reduction Act does not apply because the changes to the FAR do not impose recordkeeping or information collection requirements, or collection of information from offerors, contractors, or members of the public which require OMB approval under 44 U.S.C. 3501, et seq.

List of Subjects in 48 CFR Part 52

Government procurement.

*67058 Dated: December 7, 1994.

Albert A. Vicchiolla

Director, Office of Federal Acquisition Policy.

Therefore, 48 CFR part 52 is amended as set forth below:

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

1. The authority citation for 48 CFR part 52 continues to read as follows:

Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42 U.S.C. 2473(c).

2. Section 52.247-51 is amended by revising the introductory paragraph, the date in the title of the provision, paragraphs (a) and (d), and paragraph (a) of Alternate I, and by removing "(R 7-2003.20 1968 JUN)" following both the provision and Alternate I to read as follows:

52.247-51 Evaluation of Export Offers.

As prescribed in 47.305-6(e), insert the following provision:

Evaluation of Export Offers (Feb. 1995)

(a) Port handling and ocean charges--other than DOD water terminals. Port handling and ocean charges in tariffs on file with the Bureau of Domestic Regulation, Federal Maritime Commission, or other appropriate regulatory authorities as of the date of bid opening (or the closing date specified for receipt of offers) and which will be effective for the date of the expectedinitial shipment will be used in the evaluation of offers.

* * * * *

(d) Ports of loading for evaluation of offers. Terminals to be used by the Government in evaluating offers are as follows: (For the information of the offerors, ocean and port handling charges are set forth if the terminal named is a DOD water terminal.)

Ports/Terminals of Combined Ocean and Unit of measure:

Loading Port Handling i.e. metric ton,

Charges to measurement ton,

(Indicate Country) cubic foot, etc.

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

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

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

* * * * *

Alternate I (FEB 1995). * * *

(a) Port handling and ocean charges--DOD water terminals. The port handling and ocean charges are set forth in paragraph (d) of this provision for the information of offerors and are current as of the time of issuance of the solicitation. For evaluation of offers, the Government will use the port handling and ocean charges made available by the Directorate of International Traffic, Military Traffic Management Command rate information letters, on file as of the date of bid opening (or the closing date specified for receipt of offers) and which will be effective for the date of the expected initial shipment.//

* * * * *

FR Doc. 94-30634 Filed 12-27-94; 8:45 am]

BILLING CODE 6820-34-P

END OF DOCUMENT

(59 FR 67058)

RULES and REGULATIONS

DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Part 53

FAC 90-23; FAR Case 91-84; Item XXXVI]

RIN 9000-AF29

Federal Acquisition Regulation; Standard Form 18, Request for Quotations

Wednesday, December 28, 1994

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

ACTION: Final rule.

SUMMARY: The Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council have agreed on a final rule to amend Standard Form 18, Request for Quotations, by deleting the Small Business Concern Representation and the Notice of Small Business Small-Purchase Set-Aside from the reverse side of the form and adding the Standard Industrial Classification Code and small business size standard to the face of the form. Corresponding changes are made to the face of the form for clarification. The deleted provisions will be attached to the form along with other applicable provisions and representations. This regulatory action was not subject to Office of Management and Budget (OMB) review under Executive Order 12866, dated September 30, 1993.

EFFECTIVE DATE: February 27, 1995.

FOR FURTHER INFORMATION CONTACT: Ms. Shirley Scott at (202) 501-0168 in reference to this FAR case. For general information, contact the FAR Secretariat, room 4037, GS Building, Washington, DC 20405 (202) 501-4755. Please cite FAC 90-23, FAR case 91-84.

SUPPLEMENTARY INFORMATION:

A. Background

The changes to the form were determined to be necessary by the two Councils because of the frequency of changes to the provisions on the reverse of the form.

B. 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 under the Regulatory Flexibility Act, 5 U.S.C. 601, et seq., because the amendment imposes no requirements of any kind upon small entities; it is a

change to internal Government procedures.

C. Paperwork Reduction Act

The Paperwork Reduction Act does not apply because the changes do not impose recordkeeping or information collection requirements, or collections of information from offerors, contractors, or members of the public which require the approval of the OMB under 44 U.S.C. 3501, et seq.

List of Subjects in 48 CFR Part 53

Government procurement. Dated: December 7, 1994.

Albert A. Vicchiolla,

Director, Office of Federal Acquisition Policy.

Therefore, 48 CFR part 53 is amended as set forth below:

PART 53--FORMS

1. The authority citation for 48 CFR part 53 continues to read as follows:Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42 U.S.C.2473(c).

53.213 Amended]

2. Section 53.213 is amended in paragraph (a) by removing the words "SF 18, Request for Quotation" and inserting "SF 18 (REV 5/93), Request for Quotations" in their place.

[Amended per FAC 90-23]

53.215-1 Amended]

3. Section 53.215-1 is amended in paragraph (a) by removing the date "(REV. 10/83)" and inserting "(REV. 5/93)" in its place.

4. Section 53.301-18 is revised to read as follows:

53.301-18 SF 18 (REV 5/93), Request for Quotations.

BILLING CODE 6820-34-P

TABULAR OR GRAPHIC MATERIAL SET FORTH AT THIS POINT IS NOT DISPLAYABLE

*67061 FR Doc. 94-30633 Filed 12-27-94; 8:45 am]

BILLING CODE 6820-34-C

END OF DOCUMENT

(59 FR 67061)

RULES and REGULATIONS

DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Part 53

FAC 90-23; FAR Case 92-9; Item XXXVII]

RIN 9000-AF76

Federal Acquisition Regulation; Revisions to Standard Forms 1414 and 1415

Wednesday, December 28, 1994

*67061 AGENCIES: Department of Defense (DOD), General Services

Administration (GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Final rule.

SUMMARY: The Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council have agreed on a final rule to revise Standard Form 1414, Consent of Surety, and Standard 1415, Consent of Surety and Increase of Penalty, to accommodate consents by individual sureties and to provide space for entry of dates of execution. This regulatory action was not subject to Office of Management and Budget review under Executive Order 12866, dated September 30, 1993.

EFFECTIVE DATE: February 27, 1995.

FOR FURTHER INFORMATION CONTACT: Mr. Peter O'Such at (202) 501-1759 in reference to this FAR case. For general information, contact the FAR Secretariat, room 4037, GS Building, Washington, DC 20405 (202) 501-4755. Please cite FAC 90-23, FAR Case 92-9.

SUPPLEMENTARY INFORMATION:

A. Background

Standard Form (SF) 1414 is used to obtain the consent of surety when a contract is modified. SF 1415 is used when additional bond coverage is required from the original surety. Changes to these forms were determined to be necessary to accommodate consents by individual, as well as corporate, sureties and to provide space to enter dates of execution.

B. Regulatory Flexibility Act

The final rule does not constitute a significant FAR revision within the meaning of FAR 1.501 and Public Law 98-577, and publication for public comments is not required. Therefore, the Regulatory Flexibility Act does not apply. However, comments from small entities concerning the affected subpart will be considered in accordance with 5 U.S.C. 610. Such comments must be submitted

separately and cite 5 U.S.C. 601, et seq. (FAC 90-23, FAR case 92-9), in correspondence.

C. Paperwork Reduction Act

The Paperwork Reduction Act does not apply because the changes to the FAR do not impose recordkeeping or information collection requirements, or collections of information from offerors, contractors, or members of the public which require the approval of the Office of Management and Budget under 44 U.S.C.

3501, et seq.

List of Subjects in 48 CFR Part 53

Government procurement.

Dated: December 7, 1994.

Albert A. Vicchiolla,

Director, Office of Federal Acquisition Policy.

Therefore, 48 CFR part 53 is amended as set forth below:

PART 53--FORMS

1. The authority citation for 48 CFR part 53 continues to read as follows: Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42 U.S.C. 2473(c). 2. Section 53.228 is amended by revising paragraph (k); and revising the heading in paragraph (l) to read as follows:

53.228 Bonds and insurance.

* * * * *

(k) SF 1414 (Rev. 10/93), Consent of Surety. SF 1414 is authorized for local reproduction and a copy is furnished for this purpose in Part 53 of the loose-leaf edition of the FAR.

(l) SF 1415 (Rev. 7/93), Consent of Surety and Increase of Penalty. * * *

* * * * *

3. Sections 53.301-1414 and 53.301-1415 are revised to read as follows:

53.301-1414 SF 1414 (Rev. 10/93) Consent of Surety.

BILLING CODE 6820-34-P

TABULAR OR GRAPHIC MATERIAL SET FORTH AT THIS POINT IS NOT DISPLAYABLE

BILLING CODE 6820-34-C

*67063 53.301-1415 SF 1415 (Rev. 7/93) Consent of Surety and Increase of Penalty.

BILLING CODE 6820-34-P

TABULAR OR GRAPHIC MATERIAL SET FORTH AT THIS POINT IS NOT DISPLAYABLE

*67065 FR Doc. 94-30632 Filed 12-27-94; 8:45 am]

BILLING CODE 6820-34-C

END OF DOCUMENT

(59 FR 67065)

RULES and REGULATIONS

DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Part 1

Federal Acquisition Circular 90-23; Item XXXVIII]

Federal Acquisition Regulation; OMB Control Numbers

Wednesday, December 28, 1994

*67065 AGENCIES: Department of Defense (DOD), General Services

Administration (GSA), and National Aeronautics and Space Administration

(NASA).

ACTION: Technical amendment.

SUMMARY: The list of Office of Management and Budget approvals under the Paperwork Reduction Act has been updated to incorporate numerous additions and deletions which resulted from recent changes to the Federal Acquisition Regulation.

DATES: Effective Date: December 28, 1994.

FOR FURTHER INFORMATION CONTACT: The FAR Secretariat, room 4037, GS Building, Washington, DC 20405, (202) 501-4755. Please cite FAC 90-23, Technical Amendment.

Dated: December 7, 1994.

Albert A. Vicchiolla,

Director, Office of Federal Acquisition Policy.

48 CFR Part 1 is amended as set forth below:

PART 1--FEDERAL ACQUISITION REGULATIONS SYSTEM

1. The authority citation for 48 CFR part 1 continues to read as follows:

Authority: 40 U.S.C. 486(c); 10 U.S.C. Chapter 137; and 42 U.S.C. 2473(c).

2. Section 1.105 is revised to read as follows:

1.105 OMB Approval under the Paperwork Reduction Act.

The Paperwork Reduction Act of 1980 (Pub. L. 96-511) imposes a requirement on Federal agencies to obtain approval from the Office of Management and Budget (OMB) before collecting information from ten or more members of the public. The information collection and record keeping requirements contained in this regulation have been approved by the OMB. The following OMB control numbers apply:

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

FAR segment OMB control No.

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

3.103 ......................... 9000-0018

3.104-9 ....................... 9000-0103

3.104-12(a)(12) ............... 9000-0103

3.4 ........................... 9000-0003

4.102 ......................... 9000-0033

4.7 ........................... 9000-0034

4.9 ........................... 9000-0097

5.405 ......................... 9000-0036

7.2 ........................... 9000-0082

8.203-2 ....................... 9000-0017

8.5 ........................... 9000-0113

9.1 ........................... 9000-0011

9.2 ........................... 9000-0020

9.5 ........................... 9000-0111

14.201 ........................ 9000-0034

14.202-4 ...................... 9000-0040

14.202-5 ...................... 9000-0039

14.205 ........................ 9000-0002

14.205-4(c) ................... 9000-0037

14.214 ........................ 9000-0105

14.406 ........................ 9000-0038

14.5 .......................... 9000-0041

15.106 ........................ 9000-0034

15.404 ........................ 9000-0037

15.7 .......................... 9000-0078

15.8 .......................... 9000-0013

15.804-8 ...................... 9000-0115

15.812-1(b) ................... 9000-0080

15.813-1 ...................... 9000-0105

15.813-2 ...................... 9000-0105

15.813-3 ...................... 9000-0105

15.813-6 ...................... 9000-0105

19.7 .......................... 9000-0006

22.103 ........................ 9000-0065

22.606-2(b) ................... 1215-0157

22.8 .......................... 1215-0072

22.11 ......................... 9000-0066

22.13 ......................... 1215-0072

22.14 ......................... 1215-0072

22.15 ......................... 9000-0127

23.602 ........................ 9000-0107

27.3 .......................... 9000-0095

27.4 .......................... 9000-0090

28.1 .......................... 9000-0045

28.106-1(b) ................... 9000-0119

28.2 .......................... 9000-0045

29.304 ........................ 9000-0059

30 ............................ 9000-0093

30.6 .......................... 9000-0129

31.205-2 ...................... 9000-0072

31.205-46 ..................... 9000-0079

31.205-46(a)(3) ............... 9000-0088

32 ............................ 9000-0035

32.1 .......................... 9000-0070

32.4 .......................... 9000-0073

32.5 .......................... 9000-0010

32.7 .......................... 9000-0074

32.9 .......................... 9000-0102

33 ............................ 9000-0035

34.1 .......................... 9000-0132

36.302 ........................ 9000-0037

36.603 .................. 9000-0004 and

9000-0005

36.701 ........................ 9000-0037

41.004-2(c) ................... 9000-0125

42.203 ........................ 9000-0026

42.7 .......................... 9000-0013

42.12 ......................... 9000-0076

42.13 ......................... 9000-0076

42.14 ......................... 9000-0056

45 ............................ 9000-0075

46 ............................ 9000-0077

47 ............................ 9000-0061

48 ............................ 9000-0027

49 ............................ 9000-0028

50 ............................ 9000-0029

51.1 .......................... 9000-0031

51.2 .......................... 9000-0032

52.203-2 ...................... 9000-0018

52.203-4 ...................... 9000-0003

52.203-7 ...................... 9000-0091

52.203-8 ...................... 9000-0103

52.203-9 ...................... 9000-0103

52.204-3 ...................... 9000-0097

52.207-3 ...................... 9000-0114

52.208-1 ...................... 9000-0017

52.214-14 ..................... 9000-0047

52.214-15 ..................... 9000-0044

52.214-16 ..................... 9000-0044

52.214-17 ..................... 9000-0018

52.214-21 ..................... 9000-0039

52.214-26 ..................... 9000-0034

52.214-28 ..................... 9000-0013

52.215-1 ...................... 9000-0034

52.215-2 ...................... 9000-0034

52.215-6 ...................... 9000-0046

52.215-11 ..................... 9000-0048

52.215-19 ..................... 9000-0044

52.215-20 ..................... 9000-0047

52.215-21 ..................... 9000-0078

52.215-24 ..................... 9000-0013

52.215-25 ..................... 9000-0013

52.215-26 ..................... 9000-0080

52.215-32 ..................... 9000-0105

52.215-40 ..................... 9000-0015

52.216-2 ...................... 9000-0068

52.216-3 ...................... 9000-0068

52.216-4 ...................... 9000-0068

52.216-5 ...................... 9000-0071

52.216-6 ...................... 9000-0071

52.216-7 ...................... 9000-0069

52.216-10 ..................... 9000-0067

52.216-13 ..................... 9000-0069

52.216-15 ..................... 9000-0069

52.216-16 ..................... 9000-0067

52.216-17 ..................... 9000-0067

52.219-9 ...................... 9000-0006

52.219-10 ..................... 9000-0006

52.219-19 ..................... 9000-0100

52.219-20 ..................... 9000-0100

52.219-21 ..................... 9000-0100

52.222-2 ...................... 9000-0065

52.222-4 ...................... 1215-0119

52.222-6 ...................... 1215-0140

52.222-8 ................ 1215-0149 and

1215-0017

52.222-11 ..................... 9000-0014

52.222-18 ..................... 9000-0127

52.222-21 ..................... 1215-0072

52.222-22 ..................... 1215-0072

52.222-23 ..................... 1215-0072

52.222-25 ..................... 1215-0072

52.222-26 ..................... 1215-0072

52.222-27 ..................... 1215-0072

52.222-35 ..................... 1215-0072

52.222-36 ..................... 1215-0072

52.222-41 ............... 1215-0017 and

1215-0150

52.222-46 ..................... 9000-0066

52.223-1 ...................... 9000-0021

52.223-6(b)(5) ................ 9000-0101

52.233-7(sic).................. 9000-0117

52.225-1 ...................... 9000-0024

52.225-6 ...................... 9000-0023

52.225-8 ...................... 9000-0025

52.225-10 ..................... 9000-0022

52.225-20 ..................... 9000-0130

52.228-1 ...................... 9000-0045

52.228-2 ...................... 9000-0045

52.228-3 ...................... 9000-0045

52.229-2 ...................... 9000-0059

52.230-5 ...................... 9000-0129

52.232-5 ...................... 9000-0070

52.232-7 ...................... 9000-0070

52.232-10 ..................... 9000-0070

52.232-12 ..................... 9000-0073

52.232-13 ..................... 9000-0010

52.232-14 ..................... 9000-0010

52.232-15 ..................... 9000-0010

52.232-16 ..................... 9000-0010

52.232-20 ..................... 9000-0074

52.232-21 ..................... 9000-0074

52.232-22 ..................... 9000-0074

52.232-27 ..................... 9000-0102

52.233-1 ...................... 9000-0035

52.234-1 ...................... 9000-0133

52.236-5 ...................... 9000-0062

52.236-13 ............... 1220-0029 and

9000-0060

52.236-15 ..................... 9000-0058

52.236-19 ..................... 9000-0064

52.237-9 ...................... 9000-0103

52.241-2 ...................... 9000-0122

52.241-6 ...................... 9000-0123

52.241-11 ..................... 9000-0126

52.241-13 ..................... 9000-0124

52.242-12 ..................... 9000-0056

52.243-1 ...................... 9000-0026

52.243-2 ...................... 9000-0026

52.243-3 ...................... 9000-0026

52.243-4 ...................... 9000-0026

52.243-6 ...................... 9000-0026

52.243-7 ...................... 9000-0026

52.245-2 ...................... 9000-0075

52.245-3 ...................... 9000-0075

52.245-5 ...................... 9000-0075

52.245-7 ...................... 9000-0075

52.245-8 ...................... 9000-0075

52.245-9 ...................... 9000-0075

52.245-10 ..................... 9000-0075

52.245-11 ..................... 9000-0075

52.245-16 ..................... 9000-0075

52.245-17 ..................... 9000-0075

52.245-18 ..................... 9000-0075

52.246-2 ...................... 9000-0077

52.246-3 ...................... 9000-0077

52.246-4 ...................... 9000-0077

52.246-5 ...................... 9000-0077

52.246-6 ...................... 9000-0077

52.246-7 ...................... 9000-0077

52.246-8 ...................... 9000-0077

52.246-10 ..................... 9000-0077

52.246-12 ..................... 9000-0077

52.246-15 ..................... 9000-0077

52.247-2 ...................... 9000-0053

52.247-29 ..................... 9000-0061

52.247-30 ..................... 9000-0061

52.247-31 ..................... 9000-0061

52.247-32 ..................... 9000-0061

52.247-33 ..................... 9000-0061

52.247-34 ..................... 9000-0061

52.247-35 ..................... 9000-0061

52.247-36 ..................... 9000-0061

52.247-37 ..................... 9000-0061

52.247-38 ..................... 9000-0061

52.247-39 ..................... 9000-0061

52.247-40 ..................... 9000-0061

52.247-41 ..................... 9000-0061

52.247-42 ..................... 9000-0061

52.247-43 ..................... 9000-0061

52.247-44 ..................... 9000-0061

52.247-51 ..................... 9000-0057

52.247-53 ..................... 9000-0055

52.247-57 ..................... 9000-0061

52.247-63 ..................... 9000-0054

52.247-64 ..................... 9000-0054

52.248-1 ...................... 9000-0027

52.248-2 ...................... 9000-0027

52.248-3 ...................... 9000-0027

52.249-2 ...................... 9000-0028

52.249-3 ...................... 9000-0028

52.249-5 ...................... 9000-0028

52.249-6 ...................... 9000-0028

52.249-11 ..................... 9000-0028

52.250-1 ...................... 9000-0029

52.253-1 ...................... 9000-0104

53.105 ........................ 9000-0104

53.236-1(a) ................... 9000-0037

SF 24 ......................... 9000-0045

SF 25 ......................... 9000-0045

SF 25-A ....................... 9000-0045

SF 28 ......................... 9000-0001

SF 34 ......................... 9000-0045

SF 35 ......................... 9000-0045

SF 119 ........................ 9000-0003

SF 129 ........................ 9000-0002

SF 254 ........................ 9000-0004

SF 255 ........................ 9000-0005

SF 273 ........................ 9000-0045

SF 274 ........................ 9000-0045

SF 275 ........................ 9000-0045

SF 294 ........................ 9000-0006

SF 295 ........................ 9000-0007

SF 1403 ....................... 9000-0011

SF 1404 ....................... 9000-0011

SF 1405 ....................... 9000-0011

SF 1406 ....................... 9000-0011

SF 1407 ....................... 9000-0011

SF 1408 ....................... 9000-0011

SF 1411 ....................... 9000-0013

SF 1412 ....................... 9000-0013

SF 1413 ....................... 9000-0014

SF 1416 ....................... 9000-0045

SF 1417 ....................... 9000-0037

SF 1418 ....................... 9000-0119

SF 1423 ....................... 9000-0015

SF 1424 ....................... 9000-0015

SF 1426 ....................... 9000-0015

SF 1427 ....................... 9000-0015

SF 1428 ....................... 9000-0015

SF 1429 ....................... 9000-0015

SF 1430 ....................... 9000-0015

SF 1431 ....................... 9000-0015

SF 1432 ....................... 9000-0015

SF 1433 ....................... 9000-0015

SF 1434 ....................... 9000-0015

SF 1435 ....................... 9000-0012

SF 1436 ....................... 9000-0012

SF 1437 ....................... 9000-0012

SF 1438 ....................... 9000-0012

SF 1439 ....................... 9000-0012

SF 1440 ....................... 9000-0012

SF 1443 ....................... 9000-0010

SF 1444 ....................... 9000-0089

SF 1445 ....................... 9000-0089

SF 1446 ....................... 9000-0089

All other requirements ........ 9000-0063

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

*67066 FR Doc. 94-30631 Filed 12-27-94; 8:45 am]

BILLING CODE 6820-34-P

END OF DOCUMENT