DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Chapter I

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.

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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. 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) 97-09 which amend the FAR. The rules marked with an asterisk (*) are those for which a regulatory flexibility analysis has been prepared in accordance with 5 U.S.C. 604. Further information regarding these rules may be obtained by referring to FAC 97-09 which precedes this document. This document may be obtained from the Internet at http://www.acqnet.gov/far.

FOR FURTHER INFORMATION CONTACT: Laurie Duarte, FAR Secretariat, (202) 501-4225.

Item I--Taxpayer Identification Numbers (FAR Case 97-003)

This interim rule amends FAR Parts 1, 4, 13, 14, 15, and 52 to implement Subsection (i) of the Debt Collection Improvement Act of 1996 (Pub. L. 104-134) and Section 1022 of the Taxpayer Relief Act of 1997 (Pub. L. 105-32). The rule clarifies requirements for obtaining Taxpayer Identification Number (TIN) information from contractors and forwarding the information to payment offices; specifies that TIN information may be used by the Government to collect and report on any delinquent amounts arising out of the contractor's relationship with the Government; and clarifies and updates requirements for reporting contract information and payment information to the Internal Revenue Service.

(Orders under Federal Supply Schedule (FSS) contracts. Ordering officials are required to provide the FSS contractor's TIN (and other information) to the payment office for each order under an FSS contract. The General Services Administration is planning to establish an Internet based system by early 1999 that can be used by ordering officials to obtain this information. In the meantime, the information can be obtained from most FSS contract price lists or by requesting it directly from the FSS contractor prior to placing an order.)

Item II--Electronic Commerce in Federal Procurement (FAR Case 97-304) *

This interim rule revises FAR Subpart 4.5 and makes associated changes to FAR Parts 2, 5, 13, and 14, to implement Section 850 of the National Defense Authorization Act for Fiscal Year 1998 (Pub. L. 105-85) to eliminate the preference for electronic commerce within Federal agencies to be conducted on the Federal Acquisition Computer Network (FACNET) Architecture. In addition, this interim rule promotes the use of cost-effective procedures and processes that employ electronic commerce in the conduct and administration of Federal procurement systems. In order to facilitate access to Federal procurements, Section 850 mandates that a single Governmentwide point of entry be used. Once the Administrator of the Office of Federal Procurement Policy (OFPP) designates the single Governmentwide point of entry, the FAR will be changed accordingly. FACNET qualifies as the single, Governmentwide point of entry until the Administrator of OFPP designates the single, Governmentwide point of entry. Federal procurement systems that employ electronic commerce shall apply nationally and internationally recognized standards that broaden interoperability and ease the electronic interchange of information.

Item III--Alternative Dispute Resolution--1996 (FAR Case 97-015)

This final rule amends FAR 6.302-3, 24.202, 33.2, and the clause at 52.233-1 to implement the Administrative Dispute Resolution Act of 1996 (Pub. L. 104-320) and Section 4321(a)(7) of the Clinger-Cohen Act of 1996 (Pub. L. 104-106). The rule makes clear the authority to contract with a neutral person as an exception to requirements for full and open competition; revises requirements for certification of a claim under the Administrative Dispute Resolution Act to conform to the requirements under the Contract Disputes Act; and specifies that certain dispute resolution communications are exempt from disclosure under the Freedom of Information Act.

Item IV--Pay-As-You-Go Pension Costs (FAR Case 89-012)

The interim rule published as Item I of FAC 84-44 is converted to a final rule with amendments at FAR 15.408, 31.001, 31.205-6, and the clause at 52.215-15. The rule amends the FAR for consistency with 48 CFR 9904.412, Cost accounting standard for composition and measurement of pension cost (CAS 412), and 48 CFR 9904.413, Adjustment and allocation of pension cost (CAS 413). CAS 412 and CAS 413 relate to accounting for pension costs under negotiated Government contracts.

Item V--Rehabilitation Act, Workers With Disabilities (FAR Case 96-610)

The interim rule published as Item V of FAC 97-05 is converted to a final rule without change. The rule implements Department of Labor regulations at 41 CFR 60-741 regarding affirmative action to employ, and advance in employment, qualified individuals with disabilities.

Item VI--Civil Defense Costs (FAR Case 97-036)

This final rule deletes the civil defense cost principle at FAR 31.205-5, as this guidance is no longer deemed necessary. The acceptability of civil defense costs will remain governed by the allocability, allowability, and reasonableness criteria discussed in FAR Part 31.

Item VII--Costs Related to Legal/Other Proceedings (FAR Case 95-020)

This final rule amends FAR 31.205-47, Costs related to legal and other proceedings, to clarify the allowability of costs incurred for qui tam suits in which the Government does not intervene. This rule is consistent with audit guidance issued by the Defense Contract Audit Agency on August 24, 1995. Certain Government contracting personnel and contractors may have had common misinterpretations of the language at FAR 31.205-47 prior to August 24, 1995. For qui tam legal fees incurred prior to August 24, 1995, if the Government contracting personnel and the contractor shared a common misinterpretation of the language at FAR 31.205-47, the contracting officer, in consultation with his or her legal advisors, should determine the appropriate treatment of those costs on a case-by-case basis.

Item VIII--Service Contracts (FAR Case 97-302)

This final rule revises FAR 32.703-3 and amends 37.106 to implement Section 801 of the National Defense Authorization Act for Fiscal Year 1998 (Pub. L. 105-85). Section 801 provides that the Secretary of Defense, the Secretary of a military department, or the Secretary of Transportation with respect to the Coast Guard, when it is not operating as a service in the Navy, may enter into a contract for procurement of severable services for a period that begins in one fiscal year and ends in the next fiscal year. This authority remains the same for civilian agencies other than NASA.

Item IX--Payment Due Dates (FAR Case 97-609)

This final rule amends FAR Subpart 32.9 to clarify that agencies may amend the clauses at FAR 52.232-25, Prompt Payment, and 52.232-26, Prompt Payment for Fixed-Price Architect-Engineer Contracts, to specify a period shorter than 30 days (but not less than 7 days) for making contract invoice payments.

Dated: October 22, 1998.

Edward C. Loeb,

Director, Federal Acquisition Policy Division.

BILLING CODE 6820-EP-U