Federal Acquisition Regulation; Federal Acquisition Circular 2020-06; Introduction

Federal Register, Volume 85 Issue 88 (Wednesday, May 6, 2020)
[Federal Register Volume 85, Number 88 (Wednesday, May 6, 2020)]
[Rules and Regulations]
[Page 27086]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-07107]
[[Page 27085]]
Vol. 85
No. 88
May 6, 2020
Part III
Department of Defense
General Services Administration
National Aeronautics and Space Administration
48 CFR Chapter 1
Federal Acquisition Regulations; Final Rules
Federal Register / Vol. 85, No. 88 / Wednesday, May 6, 2020 / Rules
and Regulations
[[Page 27086]]
48 CFR Chapter 1
[Docket No. FAR-2020-0051, Sequence No. 2]
Federal Acquisition Regulation; Federal Acquisition Circular
2020-06; Introduction
AGENCY: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Summary presentation of 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 (Councils) in this Federal
Acquisition Circular (FAC) 2020-06. A companion document, the Small
Entity Compliance Guide (SECG), follows this FAC.
DATES: For effective date see the separate documents, which follow.
ADDRESSES: The FAC, including the SECG, is available via the internet
at http://www.regulations.gov.
FOR FURTHER INFORMATION CONTACT: The analyst whose name appears in the
table below in relation to the FAR case. For information pertaining to
status or publication schedules, contact the Regulatory Secretariat
Division at 202-501-4755.
 Rule Listed in FAC 2020-06
 Item Subject FAR case Analyst
I.............................. Revocation of Executive Order 2020-001 Delgado.
 on Nondisplacement of
 Qualified Workers.
II............................. Applicability of Inflation 2018-007 Delgado.
 Adjustments of Acquisition-
 Related Thresholds.
III............................ Tax on Certain Foreign 2016-013 Delgado.
IV............................. Technical Amendments...........
SUPPLEMENTARY INFORMATION: Summaries for each FAR rule follow. For the
actual revisions and/or amendments made by these FAR rules, refer to
the specific item numbers and subjects set forth in the documents
following these item summaries. FAC 2020-06 amends the FAR as follows:
Item I--Revocation of Executive Order on Nondisplacement of Qualified
Workers (FAR Case 2020-001)
 This final rule removes subpart 22.12, entitled ``Nondisplacement
of Qualified Workers Under Service Contracts'', and a related contract
clause, from the FAR. The final rule applies to service contracts which
succeed a contract for performance by service employees of the same or
similar work at the same location. It removes a requirement for service
contractors and their subcontractors to offer employees of the
predecessor contractor and its subcontractors a right of first refusal
of employment for positions for which they are qualified. It implements
Executive Order 13897 of October 31, 2019, Improving Federal Contractor
Operations by Revoking Executive Order 13495. This final rule will not
have a significant impact on service contractors and their
subcontractors. However, as a result of eliminating the language in FAR
subpart 22.12, there will be fewer requirements imposed on contractors
to keep records demonstrating compliance on successor contractors.
Item II--Applicability of Inflation Adjustments of Acquisition-Related
Thresholds (FAR Case 2018-007)
 This final rule makes inflation adjustments of statutory
acquisition-related thresholds under 41 U.S.C. 1908 applicable to
existing contracts and subcontracts in effect on the date of the
adjustment. It implements section 821 of the National Defense
Authorization Act for Fiscal Year 2018.
 This final rule will not have a significant economic impact on a
substantial number of small entities.
Item III--Tax on Certain Foreign Procurement (FAR Case 2016-013)
 This final rule withholds a 2 percent tax on contract payments made
by the United States (U.S.) Government to foreign persons pursuant to
certain contracts. This rule applies to Federal Government contracts
for goods or services that are awarded to foreign persons. It
implements the Department of the Treasury final regulations published
in the Federal Register at 81 FR 55133 on August 18, 2016, under
section 5000C of the Internal Revenue Code relating to the 2 percent
tax on payments made by the U.S. Government to foreign entities
pursuant to certain contracts.
 This final rule will not have a significant economic impact on a
substantial number of small entities.
Item IV--Technical Amendments
 Editorial changes are made at FAR 4.1102, 19.102, 25.301-1, 25.301-
4, 52.219-28, 52.223-15, and 52.225-19.
 Federal Acquisition Circular (FAC) 2020-06 is issued under the
authority of the Secretary of Defense, the Administrator of General
Services, and the Administrator of National Aeronautics and Space
 Unless otherwise specified, all Federal Acquisition Regulation
(FAR) and other directive material contained in FAC 2020-06 is
effective May 6, 2020 except for Items I, II, and III, which are
effective June 5, 2020.
William F. Clark,
Director, Office of Government-wide Acquisition Policy, Office of
Acquisition Policy, Office of Government-wide Policy.
Kim Herrington,
Acting Principal Director, Defense Pricing and Contracting, Department
of Defense.
Jeffrey A. Koses,
Senior Procurement Executive/Deputy CAO, Office of Acquisition Policy,
U.S. General Services Administration.
William G. Roets, II,
Acting Assistant Administrator, Office of Procurement, National
Aeronautics and Space Administration.
[FR Doc. 2020-07107 Filed 5-5-20; 8:45 am]