Federal Acquisition Regulation; Federal Acquisition Circular 2005-65; Introduction

Federal Register, Volume 78 Issue 19 (Tuesday, January 29, 2013)

Federal Register Volume 78, Number 19 (Tuesday, January 29, 2013)

Rules and Regulations

Pages 6183-6185

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

FR Doc No: 2013-01740

Page 6183

Vol. 78

Tuesday,

No. 19

January 29, 2013

Part II

Department of Defense

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

General Services Administration

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

National Aeronautics and Space Administration

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

48 CFR Chapter 1

Federal Acquisition Regulations; Final Rules

Page 6184

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

DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Chapter 1

Docket FAR 2013-0076, Sequence 1

Federal Acquisition Regulation; Federal Acquisition Circular 2005-65; Introduction

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

ACTION: Summary presentation of final and interim 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 (Councils) in this Federal Acquisition Circular (FAC) 2005-65. A companion document, the Small Entity Compliance Guide (SECG), follows this FAC. The FAC, including the SECG, is available via the Internet at http://www.regulations.gov.

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

FOR FURTHER INFORMATION CONTACT: The analyst whose name appears in the table below in relation to each FAR case. Please cite FAC 2005-65 and the specific FAR case numbers. For information pertaining to status or publication schedules, contact the Regulatory Secretariat at 202-501-

4755.

List of Rules in FAC 2005-65

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

Item Subject FAR Case Analyst

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

I.................. Prohibition on 2012-013 Jackson.

Contracting

with Inverted

Domestic

Corporations.

II................. Extension of 2012-007 Lague.

Sunset Date for

Protests of

Task and

Delivery Orders.

III................ Free Trade 2012-012 Davis.

Agreement--Colo

mbia.

IV................. Unallowability 2011-011 Chambers.

of Costs

Associated with

Foreign

Contractor

Excise Tax.

V.................. Technical

Amendments.

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

SUPPLEMENTARY INFORMATION: Summaries for each FAR rule follow. For the actual revisions and/or amendments made by these FAR cases, refer to the specific item numbers and subjects set forth in the documents following these item summaries. FAC 2005-65 amends the FAR as specified below:

Item I--Prohibition on Contracting With Inverted Domestic Corporations (FAR Case 2012-013)

This rule adopts as final an interim rule implementing section 738 of Division C of the Consolidated Appropriations Act, 2012 (Pub. L. 112-74), which prohibits the award of contracts using Fiscal Year 2012 appropriated funds to any foreign incorporated entity that is treated as an inverted domestic corporation or to any subsidiary of such an entity. The interim rule extended an existing prohibition that applied to the use of Fiscal Year 2008 through 2010 funds. Contracting officers are prohibited from awarding contracts using appropriated funds to any foreign incorporated entity that is treated as an inverted domestic corporation or to any subsidiary of such entity, unless an exception applies. This rule will not have any significant economic impact on small businesses because this rule only applies to an offeror that is an inverted domestic corporation and wants to do business with the Government. Small business concerns are unlikely to have been incorporated in the United States and then reincorporated in a tax haven.

Item II--Extension of Sunset Date for Protests of Task and Delivery Orders (FAR Case 2012-007)

This final rule amends the FAR to implement section 825 of the Ike Skelton National Defense Authorization Act for Fiscal Year 2011 (Pub. L. 111-383) and section 813 of the National Defense Authorization Act for Fiscal Year 2012 (Pub. L. 112-81). These statutes extend the sunset date for protests against awards of task or delivery orders to September 30, 2016. There is no effect on Government automated systems.

Item III--Free Trade Agreement--Colombia (FAR Case 2012-012)

This final rule adopts, with minor change, the interim rule published in the Federal Register at 77 FR 27548 on May 10, 2012, to implement the United States-Colombia Trade Promotion Agreement. This Trade Promotion Agreement is a free trade agreement (FTA) that provides for mutually non-discriminatory treatment of eligible products and services from Colombia.

The Colombia FTA covers acquisition of supplies and services equal to or exceeding $77,494. The threshold for the Colombia FTA is $7,777,000 for construction. The excluded services for the Colombia FTA are the same as for the Bahrain FTA, Dominican Republic-Central American FTA, Chile FTA, NAFTA, Oman FTA, and Peru FTA.

Item IV--Unallowability of Costs Associated With Foreign Contractor Excise Tax (FAR Case 2011-011)

This final rule amends the FAR to implement certain requirements of section 301 of the James Zadroga 9/11 Health and Compensation Act of 2010, which imposes a 2 percent excise tax on certain Federal procurement payments to foreign persons. First, the statute disallows the cost of the 2 percent excise tax on certain foreign procurements as part of a payment, or as part of a cost-based negotiated price. Second, the statute stipulates that no funds are to be disbursed to any foreign contractor in order to reimburse the tax imposed. This rule will have a minimal economic impact on small businesses because the 2 percent excise tax is applied only to foreign persons that receive Federal procurement payments pursuant to a contract with the Government of the United States for the provision of goods or services, if the goods are manufactured or produced in, or the services are performed in, a country that is not a party to an international procurement agreement with the United States.

Item V--Technical Amendments

Editorial changes are made at FAR 1.106, 2.000, and 31.205-6.

Page 6185

Dated: January 23, 2013.

Laura Auletta,

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

FR Doc. 2013-01740 Filed 1-28-13; 8:45 am

BILLING CODE 6820-EP-P

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT