Federal Acquisition Regulation (FAR): Information technology; introduction,

[Federal Register: July 27, 2005 (Volume 70, Number 143)]

[Rules and Regulations]

[Page 43575-43577]

From the Federal Register Online via GPO Access [wais.access.gpo.gov]

[DOCID:fr27jy05-22]

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Part IV

Department of Defense

General Services Administration

National Aeronautics and Space Administration

48 CFR Chapter 1, Parts 2, 4, 8, 14, et al.

Federal Acquisition Regulations; Interim Rules and Final Rules

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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Chapter 1

Federal Acquisition Circular 2005-05; Introduction

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

ACTION: Summary presentation of interim and final rules.

SUMMARY: This document summarizes the Federal Acquisition Regulation (FAR) rules agreed to by the Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council in this Federal Acquisition Circular (FAC) 2005-05. A companion document, the Small Entity Compliance Guide (SECG), follows this FAC. The FAC, including the SECG, is available via the Internet at http://www.acqnet.gov/far.

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

FOR FURTHER INFORMATION CONTACT: The FAR Secretariat, at (202) 501- 4755, for information pertaining to status or publication schedules. For clarification of content, contact the analyst whose name appears in the table below in relation to each FAR case or subject area. Please cite FAC 2005-05 and specific FAR case number(s). Interested parties may also visit our Web site at http://www.acqnet.gov/far.

Item

Subject

FAR case

Analyst

I.............. Definition of Information Technology

2004-030

Davis. (Interim). II............. Documentation Requirement for Limited Sources 2005-004

Nelson. under Federal Supply Schedules. III............ Payment Withholding.......................... 2004-003

Olson. IV............. Confirmation of HUBZone Certification

2005-009

Cundiff. (Interim). V.............. Government Property Rental and Special

2002-015

Parnell. Tooling. VI............. Technical Amendment..........................

SUPPLEMENTARY INFORMATION: Summaries for each FAR rule follow. For the actual revisions and/or amendments to these FAR cases, refer to the specific item number and subject set forth in the documents following these item summaries.

FAC 2005-05 amends the FAR as specified below:

Item I--Definition of Information Technology (FAR Case 2004-030)

This interim rule amends FAR 2.101(b) to revise the definition of ``information technology'' to reflect the recent changes to the definition resulting from the enactment of Public Law 108-199.

The new language at Section 535(b) of Division F of Public law 108- 199 permanently revises the term ``information technology,'' which is defined at 40 U.S.C. 11101, to add ``analysis'' and ``evaluation'' and to clarify the term ``ancillary equipment.'' This permanent change to the terminology necessitated this interim rule to amend the FAR.

Item II--Documentation Requirement for Limited Sources under Federal Supply Schedules (FAR Case 2005-004)

On June 18, 2004, DoD, GSA, and NASA published FAR case 1999-603 (69 FR 34231) amending the FAR to incorporate ordering procedures for orders against Federal Supply Schedules (FSS), including the documentation requirements for justifying sole source orders. The rule inadvertently established these justification and approval requirements for sole source orders instead of when an ordering activity restricts consideration of schedule contractors to less than the required number. This rule corrects that oversight. The final rule also based the content of the documentation requirements on that in FAR 6.303-2. By doing so, the rule established some unintentional and inapplicable content requirements, especially for orders under the simplified acquisition threshold (SAT). This rule corrects those unintended changes by establishing the standard for justifying restricted orders under the SAT and accurately specifying the justification content for restricted orders above the SAT. The rule will clarify the procedures for ordering activities.

Item III--Payment Withholding (FAR Case 2004-003)

Contracting officers and contracting officer's representatives who award or administer Time-and-Materials or Labor-Hour contracts or orders should be familiar with this amendment. Also, contractor personnel who are responsible for managing invoicing for those types of contracts should be aware of this new requirement. The amendment removes the mandatory requirement that a contracting officer withhold 5 percent of the payments due under a time-and-materials contract, unless it is necessary to withhold payment to protect the Government's interest or otherwise prescribed in the contract Schedule. It requires the use of a contract modification in order to make payment withholding and, in the event withholding is required, the contractor is responsible to withhold the amounts from its billings.

Item IV--Confirmation of HUBZone Certification (FAR Case 2005-009)

This interim rule amends FAR 19.703 and the clause at 52.219-9 to clarify that prime contractors must confirm that a subcontractor representing itself as a Historically Underutilized Business Zone (HUBZone) small business concern is certified, consistent with the requirements of 15 U.S.C. 632 et seq., as amended. This change is expected to increase subcontracting opportunities for certified HUBZone small business concerns and ensure accurate reporting of awards to HUBZone small business concerns under Government contracts.

Item V--Government Property Rental and Special Tooling (FAR Case 2002- 015)

This final rule amends FAR Parts 45 and 52 to clarify the basis for determining rental charges for the use of Government property. The change, which is intended to promote the dual use of such property, will impact contracting officers and property administrators responsible for the management of Government property and contractors that desire to use Government property for commercial purposes.

Item VI--Technical Amendment

An editorial change is made at FAR 4.1102 in order to update a reference.

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Dated: July 20, 2005. Julia B. Wise, Director, Contract Policy Division.

Federal Acquisition Circular

Federal Acquisition Circular (FAC) 2005-05 is issued under the authority of the Secretary of Defense, the Administrator of General Services, and the Administrator for the National Aeronautics and Space Administration.

Unless otherwise specified, all Federal Acquisition Regulation (FAR) and other directive material contained in FAC 2005-05 is effective August 26, 2005, except for Items I, II, IV, and VI which are effective July 27, 2005.

Dated: July 15, 2005. Deidre A. Lee, Director, Defense Procurement and Acquisition Policy.

Dated: July 19, 2005. Patricia A. Brooks, Acting Senior Procurement Executive, Office of the Chief Acquisition Officer, General Services Administration.

Dated: July 14, 2005. Tom Luedtke, Assistant Administrator for Procurement, National Aeronautics and Space Administration.

[FR Doc. 05-14665 Filed 7-26-05; 8:45 am]

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