DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Chapter 1

Federal Acquisition Regulation; Small Entity Compliance Guide

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

ACTION: Small Entity Compliance Guide Notice.

_____________________________________________________________

SUMMARY: This document is issued under the joint authority of the Secretary of Defense, the Administrator of General Services and the Administrator for the National Aeronautics and Space Administration as the Federal Acquisition Regulation (FAR) Council. This Small Entity Compliance Guide has been prepared in accordance with Section 212 of the Small Business Regulatory Enforcement Fairness Act of 1996 (Public Law 104-121). It consists of a summary of rules appearing in Federal Acquisition Circular (FAC) 90-44 which amend the FAR. None of the rules had a Final Regulatory Flexibility Analysis prepared in accordance with 5 U.S.C. 604. Further information regarding these rules may be obtained by referring to FAC 90-44 which precedes this notice. This document may be obtained from the Internet at http://www.acqnet.gov/far/.

FOR FURTHER INFORMATION CONTACT: Beverly Fayson, FAR Secretariat, (202) 501-4755.

Item Subject FAR Case Analyst

I Automatic Data 96-010 Olson

Processing Equipment

Leasing Costs

(Interim)

II Major System 96-322 OÌNeill

Definition

III Preaward 96-304 DeStefano

Debriefings

IV Certification 96-311 DeStefano

RequirementsÛ

Drug-Free

Workplace

V Consideration of 95-019 DeStefano

Late Offers

VI Foreign 96-012 Olson

Differential Pay

(Interim)

VII Final Indirect 95-018 Klein

Cost Rates

VIII Modification of 96-606 DeStefano

Existing Contracts

(Interim)

Item IÛAutomatic Data Processing Equipment Leasing Costs (FAR Case 96-010)

This interim rule deletes the cost principle at

31.205-2, Automatic Data Processing Equipment (ADPE) Leasing Costs, the ADPE definition at 31.001, and references to the term ADPE found elsewhere in part 31.

Item IIÛMajor System Definition (FAR Case 96-322) This final rule amends the definition of Ïmajor systemÓ at FAR 2.101 to increase the dollar thresholds applicable to the Department of Defense. The rule implements 10 U.S.C. 2302(5) as amended by Section 805 of the National Defense Authorization Act for Fiscal Year 1997 (Public Law 104-201).

Item IIIÛPreaward Debriefings (FAR Case 96-304

This final rule revises FAR Subpart 15.10 to implement Section 4104 of the Clinger-Cohen Act of 1996 (Pub. L. 104-106). Section 4104 requires that, prior to contract award, contracting officers provide a debriefing to any interested offeror on the reasons for that offerorÌs exclusion from the competitive range in a competitive negotiation.

Item IVÛCertification Requirements-Drug-Free Workplace (FAR Case 96-311)

This final rule amends FAR Parts 9, 13, 23, and 52 to delete the requirement for an offeror to provide a certification regarding a drug-free workplace. The rule implements Section 4301(a)(3) of the Clinger-Cohen Act of 1996 (Public Law 104-106).

Item VÛConsideration of Late Offers

(FAR Case 95-019)

This final rule amends the late bid rule to allow an offer to be accepted if the late receipt was due primarily to Government mishandling after receipt at the Government installation. The rule recognizes the use of hand-carried offers (including delivery by a commercial carrier) as a common business practice and provides flexibility in determining when an offer (bid or proposal) was received at the Government activity, by applying standards used by the General Accounting Office. The rule also expands the definition of acceptable evidence to support acceptance of a late offer and adds a new exception at 52.215-10(a)(5) and 52.215-36(a)(3) which allows consideration of a proposal that was misdirected or misdelivered (not necessarily through mishandling) to an office other than that designated for receipt of offers in the solicitation. These changes do not apply to commercial item solicitations which contain the provision at 52.212-1(f), Late Offers.

Item VIÛForeign Differential Pay (FAR Case 96-012)

This interim rule deletes the prohibition at FAR 31.205-6(e)(2) on the calculation of foreign differential pay based directly on an employeeÌs specific increase in income taxes resulting from assignment overseas.

Item VIIÛFinal Indirect Cost Rates (FAR Case 95-018)

This final rule amends FAR Subpart 42.7 and Part 52 to improve procedures for providing payments to contractors under cost-type contracts by (1) permitting, with certain restrictions, contractor use of billing rates contained in certified final indirect cost rate proposals; (2) providing for Government release of 75 to 90 percent of all fee withholds under physically completed contracts, after receipt of the contractorÌs certified final indirect cost rate proposal; and (3) establishing a timeframe for contractor submission of final invoices or vouchers.

Item VIIIÛModification of Existing Contracts

(FAR Case 96-606)

This interim rule is issued pursuant to the Clinger-Cohen Act of 1996 (Public Law 104-106) to amend the Federal Acquisition Regulation. It implements Section 4402(d) and (e) which authorizes regulations to provide for modification of existing contracts without requiring consideration, upon request of the contractor, to incorporate changes authorized by the Act.

Dated:

EDWARD C. LOEB,

Director,

Federal Acquisition

Policy Division.

[BILLING CODE 6820-EP]