Federal Acquisition Regulation; Federal Acquisition Circular 2020-07; Introduction

Published date02 July 2020
Citation85 FR 40060
Record Number2020-12761
SectionRules and Regulations
CourtGeneral Services Administration,National Aeronautics And Space Administration
Federal Register, Volume 85 Issue 128 (Thursday, July 2, 2020)
[Federal Register Volume 85, Number 128 (Thursday, July 2, 2020)]
                [Rules and Regulations]
                [Pages 40060-40061]
                From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
                [FR Doc No: 2020-12761]
                [[Page 40059]]
                Vol. 85
                Thursday,
                No. 128
                July 2, 2020
                Part IV
                Department of Defense
                General Services Administration
                National Aeronautics and Space Administration
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                48 CFR Chapter 1
                Federal Acquisition Regulations; Final Rules
                Federal Register / Vol. 85, No. 128 / Thursday, July 2, 2020 / Rules
                and Regulations
                [[Page 40060]]
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                DEPARTMENT OF DEFENSE
                GENERAL SERVICES ADMINISTRATION
                NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
                48 CFR Chapter 1
                [Docket No. FAR-2020-0051, Sequence No. 3]
                Federal Acquisition Regulation; Federal Acquisition Circular
                2020-07; Introduction
                AGENCY: Department of Defense (DoD), General Services Administration
                (GSA), and National Aeronautics and Space Administration (NASA).
                ACTION: Summary presentation of final rules.
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                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) 2020-07. A companion document, the Small
                Entity Compliance Guide (SECG), follows this FAC.
                DATES: For effective dates see the separate documents published in the
                RULES section of this issue of the Federal Register.
                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 or [email protected].
                 Rule Listed in FAC 2020-07
                ----------------------------------------------------------------------------------------------------------------
                 Item Subject FAR case Analyst
                ----------------------------------------------------------------------------------------------------------------
                I............................. Requirements for DD Form 254, 2015-002 Glover.
                 Contract Security
                 Classification Specification.
                II............................ Increased Micro-Purchase and 2018-004 Jackson.
                 Simplified Acquisition
                 Thresholds.
                III........................... Evaluation Factors for 2017-010 Jackson.
                 Multiple-Award Contracts.
                IV............................ Modifications to Cost or 2018-005 Delgado.
                 Pricing Data Requirements.
                V............................. Orders Issued Via Fax or 2018-022 Glover.
                 Electronic Commerce.
                VI............................ Technical Amendments.........
                ----------------------------------------------------------------------------------------------------------------
                ADDRESSES: The FAC, including the SECG, is available via the internet
                at https://www.regulations.gov.
                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 2020-07 amends the FAR as follows:
                Item I--Requirements for DD Form 254, Contract Security Classification
                Specification (FAR Case 2015-002)
                 This final rule amends the FAR to provide procedures for use of the
                DD Form 254, Contract Security Classification Specification, and the
                use of the Procurement Integrated Enterprise Environment (PIEE) for
                electronic submission to streamline the submission process. It requires
                use of the DD Form 254 by DoD components, and by nondefense agencies
                that have industrial security services agreements with DoD, and
                requires the use of the National Industrial Security Program Contracts
                Classification System module of the PIEE, unless the nondefense agency
                has an existing DD Form 254 information system.
                Item II--Increased Micro-Purchase and Simplified Acquisition Thresholds
                (FAR Case 2018-004)
                 This final rule increases the micro-purchase threshold (MPT) from
                $3,500 to $10,000, increases the simplified acquisition threshold (SAT)
                from $150,000 to $250,000, and increases the special emergency
                procurement authority in paragraph (2) from $300,000 to $500,000. The
                rule also clarifies certain procurement terms, as well as aligns some
                non-statutory thresholds with the MPT and SAT. It implements section
                217(b) of the National Defense Authorization Act (NDAA) for Fiscal Year
                (FY) 2017 and sections 805, 806, and 1702(a) of the NDAA for FY 2018.
                 This final rule will likely have a positive significant economic
                impact on a substantial number of small entities.
                Item III--Evaluation Factors for Multiple-Award Contracts (FAR Case
                2017-010)
                 DoD, GSA, and NASA are issuing a final rule amending the FAR to
                implement section 825 of the National Defense Authorization Act for
                Fiscal Year 2017 (Pub. L. 114-328). The final rule modifies the
                requirement to consider price or cost as an evaluation factor for the
                award of certain multiple-award task order contracts issued by DoD,
                NASA, and the Coast Guard. Specifically, the rule provides that, at the
                Government's discretion, solicitations for multiple-award contracts for
                the same or similar services that state the Government intends to award
                a contract to each qualifying offeror do not require price or cost as
                an evaluation factor for contract award. This exception does not apply
                to solicitations for multiple-award contracts that provide for sole
                source orders pursuant to 8(a) of the Small Business Act (15 U.S.C.
                637(a)). When price or cost is not evaluated during contract award, the
                contracting officer shall consider price or cost as a factor for the
                award of each order under the contract. Section 825 also amends 10
                U.S.C. 2304c(b) to add exemptions for the use of competitive procedures
                when placing an order under a multiple-award contract.
                Item IV--Modifications to Cost or Pricing Data Requirements (FAR Case
                2018-005)
                 This final rule increases the threshold for requesting certified
                cost or pricing data from $750,000 to $2 million for contracts entered
                into after June 30, 2018. For earlier contracts, contractors may
                request a modification to use the new clause Alternates, with the new
                $2 million threshold for subcontracts awarded on or after July 1, 2018.
                The rule implements section 811 of the National Defense Authorization
                Act for Fiscal Year 2018, Public Law 115-91.
                 This final rule will not have a significant economic impact on a
                substantial number of small entities.
                [[Page 40061]]
                Item V--Orders Issued Via Fax or Electronic Commerce (FAR Case 2018-
                022)
                 This final rule amends a FAR clause to permit the issuance of task
                or delivery orders via facsimile or electronic commerce and clarify
                when an order is considered ``issued'' when using these methods. As a
                result, contracting officers will no longer need to include
                supplemental ordering language in the contract when anticipating the
                use of fax or electronic commerce to issue task or delivery orders. The
                authority to issue orders orally must still be separately authorized in
                the contract. A common understanding of when a task or delivery order
                is considered issued, in such situations, will be applied
                Governmentwide.
                Item VI--Technical Amendments
                 Editorial changes are made at FAR 5.205, 9.109-4, 27.405-3, 52.209-
                13, and 52.212-5.
                William F. Clark,
                Director, Office of Government-wide Acquisition Policy, Office of
                Acquisition Policy, Office of Government-wide Policy.
                 Federal Acquisition Circular (FAC) 2020-07 is issued under the
                authority of the Secretary of Defense, the Administrator of General
                Services, and the Administrator of National Aeronautics and Space
                Administration.
                 Unless otherwise specified, all Federal Acquisition Regulation
                (FAR) and other directive material contained in FAC 2020-07 is
                effective July 2, 2020 except for Items I, III, IV and V, which are
                effective August 3, 2020, and item II, which is effective August 31,
                2020.
                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. 2020-12761 Filed 7-1-20; 8:45 am]
                BILLING CODE 6820-EP-P
                

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