Federal Acquisition Regulation: Inflation Adjustment of Acquisition-Related Thresholds

Published date30 June 2020
Citation85 FR 39146
Record Number2020-13334
SectionProposed rules
CourtGeneral Services Administration,National Aeronautics And Space Administration
Federal Register, Volume 85 Issue 126 (Tuesday, June 30, 2020)
[Federal Register Volume 85, Number 126 (Tuesday, June 30, 2020)]
                [Proposed Rules]
                [Pages 39146-39151]
                From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
                [FR Doc No: 2020-13334]
                [[Page 39146]]
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                DEPARTMENT OF DEFENSE
                GENERAL SERVICES ADMINISTRATION
                NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
                48 CFR Parts 1, 2, 3, 5, 6, 8, 9, 10, 12, 13, 15, 16, 17, 19, 22,
                26, 28, 32, 36, 42, 50, 52, and 53
                [FAR Case 2019-013, Docket No. FAR-2019-0013, Sequence No. 1]
                RIN 9000--AN96
                Federal Acquisition Regulation: Inflation Adjustment of
                Acquisition-Related Thresholds
                AGENCY: Department of Defense (DoD), General Services Administration
                (GSA), and National Aeronautics and Space Administration (NASA).
                ACTION: Proposed rule.
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                SUMMARY: DoD, GSA, and NASA are proposing to amend the Federal
                Acquisition Regulation (FAR) to further implement the statute which
                requires an adjustment every five years of statutory acquisition-
                related thresholds for inflation. The adjustment uses the Consumer
                Price Index for all urban consumers, and does not apply to the
                Construction Wage Rate Requirements statute (Davis-Bacon Act), Service
                Contract Labor Standards statute, and trade agreements thresholds. DoD,
                GSA, and NASA are also proposing to use the same methodology to adjust
                nonstatutory FAR acquisition-related thresholds in 2020.
                DATES: Interested parties should submit written comments at the address
                shown below on or before August 31, 2020 to be considered in the
                formation of the final rule.
                ADDRESSES: Submit comments in response to FAR case 2019-013 to https://www.regulations.gov. Submit comments via the Federal eRulemaking portal
                by searching for ``FAR Case 2019-013''. Select the link ``Comment Now''
                that corresponds with FAR Case 2019-013. Follow the instructions
                provided at the ``Comment Now'' screen. Please include your name,
                company name (if any), and ``FAR Case 2019-013'' on your attached
                document. If your comment cannot be submitted using https://www.regulations.gov, call or email the points of contact in the FOR
                FURTHER INFORMATION CONTACT section of this document for alternate
                instructions.
                 Instructions: Please submit comments only and cite FAR Case 2019-
                013, in all correspondence related to this case. Comments received
                generally will be posted without change to https://www.regulations.gov,
                including any personal and/or business confidential information
                provided. To confirm receipt of your comment(s), please check https://www.regulations.gov, approximately two to three days after submission
                to verify posting.
                FOR FURTHER INFORMATION CONTACT: Mr. Michael O. Jackson, Procurement
                Analyst, at 202-208-4949, or by email at [email protected], for
                clarification of content. For information pertaining to status or
                publication schedules, contact the Regulatory Secretariat Division at
                202-501-4755 or [email protected]. Please cite FAR case 2019-013.
                SUPPLEMENTARY INFORMATION:
                I. Background
                 This rule proposes to amend multiple FAR parts to further implement
                41 U.S.C. 1908. Section 1908 requires an adjustment every five years
                (on October 1 of each year evenly divisible by five) of statutory
                acquisition-related thresholds for inflation, using the Consumer Price
                Index (CPI) for all urban consumers, except for the Construction Wage
                Rate Requirements statute (Davis-Bacon Act), Service Contract Labor
                Standards statute, and trade agreements thresholds (see FAR 1.109). As
                a matter of policy, DoD, GSA, and NASA are also proposing to use the
                same methodology to adjust nonstatutory FAR acquisition-related
                thresholds on October 1, 2020.
                 DoD, GSA, and NASA have published two proposed rules and one final
                rule that will reduce the complexity and impact of the October 1, 2020,
                threshold adjustments throughout the FAR. The changes implemented
                through these rules significantly reduce the number of cite-specific
                inflation adjustments in the FAR and associated matrix.
                 FAR Case 2018-004, published as a proposed rule on October 2, 2019
                (84 FR 52420) will implement section 217(b) of the National Defense
                Authorization Act (NDAA) for Fiscal Year (FY) 2017 (Pub. L. 114-328)
                and sections 805, 806, and 1702(a) of the NDAA for FY 2018 (Pub. L.
                115-91), to increase the micro-purchase threshold (MPT) and simplified
                acquisition thresholds (SAT) throughout the FAR. The case also changes
                some stated dollar thresholds to text to ensure continued alignment
                with the value defined in FAR subpart 2.101.
                 FAR Case 2018-005, published as a proposed rule October 2, 2019 (84
                FR 52428), implements section 811 of the National Defense Authorization
                Act (NDAA) for Fiscal Year (FY) 2018 that amended 10 U.S.C. 2306a, Cost
                or Pricing Data: Truth in Negotiations and 41 U.S.C. 3502, Required
                cost or pricing data and certification. The case increases the
                threshold for requesting certified cost or pricing data from $750,000
                to $2 million for contracts entered into after June 30, 2018.
                 FAR Case 2018-007, published as a final rule on May 6, 2020 (85 FR
                27088), implements section 821 of the NDAA for FY 2018 (Pub. L. 115-
                91), which made inflation adjustments of statutory acquisition-related
                thresholds under 41 U.S.C. 1908 applicable to existing contracts and
                subcontracts that contain the clause to implement the statute and are
                in effect on the date of the adjustment. This case replaces throughout
                FAR part 52, as appropriate, numerical values based on the value of the
                MPT or the SAT with the term ``micro-purchase threshold'' or
                ``simplified acquisition threshold''. When such terms are used, there
                is a reference to the definition in FAR 2.101. In addition to the MPT
                and SAT, numerical values for certain thresholds will be replaced with
                a reference to the applicable FAR text that specifies the numerical
                threshold.
                 This is the fourth review of FAR acquisition-related thresholds
                since the statute was passed on October 28, 2004 (section 807 of the
                Ronald W. Reagan National Defense Authorization Act for Fiscal Year
                2005). The last review was conducted under FAR case 2014-022 during FY
                2015. The final rule under that case was published in the Federal
                Register on July 2, 2015 (80 FR 38293), effective October 1, 2015.
                II. Discussion and Analysis
                A. What is an acquisition-related threshold?
                 This case builds on the review of FAR thresholds in FY 2005, FY
                2010, and FY 2015, using the same interpretation of an acquisition-
                related threshold. 41 U.S.C. 1908 is applicable to ``a dollar threshold
                that is specified in law as a factor in defining the scope of the
                applicability of a policy, procedure, requirement, or restriction
                provided in that law to the procurement of property or services by an
                executive agency, as the [FAR] Council determines.''
                 There are other thresholds in the FAR that, while not specified in
                law, nevertheless meet all the other criteria. These thresholds may
                have their origin in Executive Order or regulation. Therefore, the FAR
                Council has determined, that in this case, ``acquisition-related
                threshold'' has a broader meaning, i.e., a threshold that is specified
                in law, Executive Order, or regulation as a factor in defining the
                scope of the applicability of a policy,
                [[Page 39147]]
                procedure, requirement, or restriction provided in that law, Executive
                Order, or regulation to the procurement of property or services by an
                Executive agency. DoD, GSA, and NASA conclude that acquisition-related
                thresholds are generally tied to the value of a contract, subcontract,
                or modification.
                 Examples of thresholds that are not ``acquisition-related,'' as
                defined in this case, are thresholds relating to claims, penalties,
                withholding, payments, required levels of insurance, small business
                size standards, liquidated damages, protests, etc. This rule does not
                address thresholds that are not acquisition-related.
                B. What acquisition-related thresholds are not subject to escalation
                adjustment under this case?
                 41 U.S.C. 1908 does not permit escalation of acquisition-related
                thresholds established by the Construction Wage Rate Requirements
                statute (Davis Bacon Act), the Service Contract Labor Standards
                statute, or the United States Trade Representative pursuant to the
                authority of the Trade Agreements Act of 1979.
                 Also, the statute does not authorize the FAR to escalate thresholds
                originating in Executive Order or the implementing agency (such as the
                Department of Labor or the Small Business Administration), unless the
                Executive order or agency regulations are first amended.
                C. How do the Defense Acquisition Regulations Council and the Civilian
                Agency Acquisition Council (the Councils) analyze a statutory
                acquisition-related threshold?
                 If an acquisition-related threshold is based on statute, the matrix
                at http://www.regulations.gov identifies the statute and the statutory
                threshold, including the original threshold and any FAR revisions.
                 With the exception of thresholds set by the Construction Wage Rate
                Requirements statute (Davis-Bacon Act), Service Contract Labor
                Standards statute, and the United States Trade Representative pursuant
                to the authority of the Trade Agreements Act of 1979, 41 U.S.C. 1908
                requires that the FAR Council adjust the acquisition-related thresholds
                for inflation using the CPI for all urban consumers. Acquisition-
                related thresholds in statutes that were in effect on October 1, 2000,
                are only subject to escalation from that date forward. For purposes of
                this proposed rule, the matrix includes calculation of escalation based
                on the estimated CPI value for March 2020 (currently projected at
                258.6) divided by the CPI for the date of enactment of the statute or
                regulation (October 2000, for statutes enacted prior to October 1,
                2000). The Councils will subsequently adjust as necessary before
                issuance of the final rule.
                 Once the escalation factor is applied to the acquisition-related
                threshold, then the threshold must be rounded as follows:
                 The micro-purchase threshold at FAR 2.101 was raised to
                $10,000 by statute (see FAR Case 2018-004). No further increase to the
                basic threshold is made at this time, as there has been insufficient
                inflation. Paragraph 3(ii) of the definition, for acquisitions to
                support contingency operations or to facilitate defense against certain
                attacks, is proposed to increase from $30,000 to $35,000.
                 The simplified acquisition threshold was changed to
                $250,000 by statute (see FAR Case 2018-004). No further increase in the
                basic threshold is proposed, as there has been insufficient inflation.
                Paragraph (1)(i) of the definition for acquisitions to support
                contingency operations or to facilitate defense against certain
                attacks, is proposed to increase from $750,000 to $800,000.
                 The preaward and post-award notices (FAR part 5) remain at
                $25,000 because of trade agreements.
                 The requirements for limiting competition (FAR part 6) to
                eligible 8(a) awards over $22 million is increased to $25 million.
                 The simplified procedures for certain commercial items
                ceiling (FAR 13.500) will increase from $7 million to $7.5 million. For
                acquisitions described at 13.500(c), the ceiling will increase from
                $13.5 million to $15 million.
                 The cost or pricing data threshold (FAR 15.403-4) was
                increased by statute from $750,000 to $2 million (see FAR Case 2018-
                005) and is not proposed for further increase in this case.
                 The prime contractor subcontracting plan (FAR 19.702)
                floor will increase from $700,000 to $750,000, but the construction
                threshold of $1.5 million will not change. Standard Form 294 at General
                Instruction 3 has a reference to $700,000, which will be changed.
                 The threshold for reporting first-tier subcontract
                information including executive compensation will not change (FAR
                subpart 4.14 and 52.204-10).
                 This proposed rule is based on a projected CPI of 258.6 for March
                2020.
                [[Page 39148]]
                If the actual CPI for March 2020 is higher than 258.6, then additional
                statutory thresholds may be subject to escalation in the final rule,
                even though not included in the proposed rule.
                III. Applicability to Contracts at or Below the Simplified Acquisition
                Threshold (SAT) and for Commercial Items, Including Commercially
                Available Off-the-Shelf (COTS) Items
                 This proposed rule does not create any new provisions or clauses,
                nor does it change the applicability of any existing provisions or
                clauses included in solicitations and contracts valued at or below the
                SAT, or for commercial items, including COTS items, except for the
                changes in the thresholds themselves.
                IV. Executive Orders 12866 and 13563
                 Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess
                all costs and benefits of available regulatory alternatives and, if
                regulation is necessary, to select regulatory approaches that maximize
                net benefits (including potential economic, environmental, public
                health and safety effects, distributive impacts, and equity). E.O.
                13563 emphasizes the importance of quantifying both costs and benefits,
                of reducing costs, of harmonizing rules, and of promoting flexibility.
                This is not a significant regulatory action and, therefore, was not
                subject to review under section 6(b) of E.O. 12866, Regulatory Planning
                and Review, dated September 30, 1993. This rule is not a major rule
                under 5 U.S.C. 804.
                V. Executive Order 13771
                 The rule is not subject to E.O. 13771, because this rule is not a
                significant regulatory action under E.O. 12866.
                VI. Regulatory Flexibility Act
                 DoD, GSA, and NASA do not expect this rule to have a significant
                economic impact on a substantial number of small entities within the
                meaning of the Regulatory Flexibility Act, 5 U.S.C. 601, et seq.,
                because the rule maintains the status quo by adjusting thresholds for
                actual inflationary increases in the CPI. However, an Initial
                Regulatory Flexibility Analysis has been performed and is summarized as
                follows:
                 This rule will amend the Federal Acquisition Regulation to
                implement 41 U.S.C. 1908 and to amend other acquisition-related
                dollar thresholds that are based on policy rather than statute in
                Order to adjust for the changing value of the dollar. 41 U.S.C. 1908
                requires adjustment every five years of statutory acquisition-
                related dollar thresholds, except for Construction Wage Rate
                Requirements statute (Davis-Bacon Act), Service Contract Labor
                Standards statute, and trade agreements thresholds. While reviewing
                all statutory acquisition-related thresholds, this case presented an
                opportunity to also review all nonstatutory acquisition-related
                thresholds in the FAR that are based on policy.
                 The objective of the case is to maintain the status quo, by
                adjusting acquisition-related thresholds for inflation. The legal
                basis is 41 U.S.C. 1908. The statute does not authorize the FAR to
                escalate thresholds originating in Executive Orders or the
                implementing agency (such as the Department of Labor or the Small
                Business Administration), unless the Executive Order or agency
                regulations are first amended.
                 This rule will have a minimal impact on small business concerns
                that submit offers or are awarded contracts by the Federal
                Government. However, most of the threshold changes proposed in this
                rule are not expected to have any significant economic impact on
                small business concerns because the threshold changes are intended
                to maintain the status quo by adjusting for changes in the value of
                the dollar. Often any impact will be beneficial, by preventing
                burdensome requirements from applying to more and more acquisitions,
                as the dollar loses value.
                 One threshold change in this rule which may impact small
                business concerns is the increase of the threshold for requiring a
                justification or determination for limiting competition to eligible
                8(a) participants from $22 million to $25 million. This threshold
                increase is expected to benefit small businesses under the 8(a)
                program by expanding their access to contract opportunities. To
                assess the impact of the increase, data was requested from FPDS-NG.
                For FY 2017 through FY 2019, there was an average of 300 contracts
                and calls/orders between $22 million and $25 million. Of these
                actions, an average of 134 went to small business concerns, 27 of
                which were 8(a) program participants. We expect that many of these
                awards will still go to small business concerns and potentially
                increase the number of awards to 8(a) program participants.
                 The rule does not impose any new reporting, recordkeeping, or
                compliance requirements. Changes in thresholds for approved
                information collection requirements are intended to maintain the
                status quo and prevent those requirements from increasing over time.
                 The rule does not duplicate, overlap, or conflict with any other
                Federal rules.
                 There are no practical alternatives that will accomplish the
                objectives of the statute.
                 The Regulatory Secretariat Division has submitted a copy of the
                IRFA to the Chief Counsel for Advocacy of the Small Business
                Administration. A copy of the IRFA may be obtained from the Regulatory
                Secretariat Division. DoD, GSA, and NASA invite comments from small
                business concerns and other interested parties on the expected impact
                of this rule on small entities.
                 DoD, GSA, and NASA will also consider comments from small entities
                concerning the existing regulations in subparts affected by the rule in
                accordance with 5 U.S.C. 610. Interested parties must submit such
                comments separately and should cite 5 U.S.C 610 (FAR Case 2019-013), in
                correspondence.
                VII. Paperwork Reduction Act
                 The Paperwork Reduction Act does apply. The proposed changes to the
                FAR do not impose new information collection requirements that require
                the approval of the Office of Management and Budget (OMB) under 44
                U.S.C. 3501, et seq. By adjusting the thresholds for inflation, the
                status quo for the current information collection requirements are
                maintained under the following OMB clearance numbers: 9000-0006, 9000-
                0007, 1250-0004, and 1293-0005.
                List of Subjects in 48 CFR Parts 1, 2, 3, 5, 6, 8, 9, 10, 12, 13,
                15, 16, 17, 19, 22, 26, 28, 32, 36, 42, 50, 52, and 53
                 Government Procurement.
                William F. Clark,
                Director, Office of Government-wide Acquisition Policy, Office of
                Acquisition Policy, Office of Government-wide Policy.
                 Therefore, DoD, GSA, and NASA propose amending 48 CFR parts 1, 2,
                3, 5, 6, 8, 9, 10, 12, 13, 15, 16, 17, 19, 22, 26, 28, 32, 36, 42, 50,
                52, and 53 as set forth below:
                0
                1. The authority citation for 48 CFR parts 1, 2, 3, 5, 6, 8, 9, 10, 12,
                13, 15, 16, 17, 19, 22, 26, 28, 32, 36, 42, 50, 52, and 53 continues to
                read as follows:
                 Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 51
                U.S.C. 20113.
                PART 1--FEDERAL ACQUISITION REGULATIONS SYSTEM
                1.109 [Amended]
                0
                2. Amend section 1.109, in paragraph (d) by removing ``2014-022'' and
                adding ``2019-013'' in its place.
                PART 2--DEFINITIONS OF WORDS AND TERMS
                2.101 [Amended]
                0
                3. Amend section 2.101, in paragraph (b)(2) by--
                0
                 a. In the definition ``Major system'', removing from paragraph (2) ``$
                2 million'' and adding ``$2.5 million'' in its place;
                0
                b. In the definition ``Micro-purchase threshold'', removing from
                paragraph (3)(ii) ``$30,000'' and adding ``$35,000'' in its place; and
                0
                 c. In the definition ``Simplified acquisition threshold'', removing
                from paragraph (1)(i) ``$750,000'' and adding ``$800,000'' in its
                place.
                [[Page 39149]]
                PART 3--IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF
                INTEREST
                3.1004 [Amended]
                0
                4. Amend section 3.1004 by removing from paragraphs (a), (b)(1)(i), and
                (b)(3) ``$5.5 million'' and adding ``$6 million'' in their places,
                respectively.
                PART 5--PUBLICIZING CONTRACT ACTIONS
                5.303 [Amended]
                0
                5. Amend section 5.303 in paragraph (a) by removing ``$4 million'' and
                adding ``$4.5 million'' in its place.
                PART 6--COMPETITION REQUIREMENTS
                6.204 [Amended]
                0
                6. Amend section 6.204 in paragraph (b) by removing ``$22 million'' and
                adding ``$25 million'' in its place.
                6.302-5 [Amended]
                0
                7. Amend section 6.302-5 by removing from paragraphs (b)(4) and
                (c)(2)(iii) ``$22 million'' and adding ``$25 million'' in their places,
                respectively.
                6.303-1 [Amended]
                0
                8. Amend section 6.303-1 in paragraph (b) introductory text by removing
                ``$22 million'' and adding ``$25 million'' in its place.
                6.303-2 [Amended]
                0
                9. Amend section 6.303-2 by removing from the introductory text of
                paragraphs (b) and (d) ``$22 million'' and adding ``$25 million'' in
                their places, respectively.
                6.304 [Amended]
                0
                10. Amend section 6.304 by--
                0
                 a. Removing from paragraph (a)(1) ``$700,000'' and adding ``$750,000''
                in its place;
                0
                 b. Removing from paragraph (a)(2) ``$700,000'' and ``$13.5 million''
                and adding ``$750,000'' and ``$15 million'' in their places,
                respectively;
                0
                 c. Removing from paragraph (a)(3) introductory text ``$13.5 million'',
                ``$68 million'', and ``$93 million'' and adding ``$15 million'', ``$75
                million'', and ``$100 million'' in their places, respectively; and
                0
                 d. Removing from paragraph (a)(4) ``$68 million'' and ``$93 million''
                and adding ``$75 million'' and ``$100 million'' in their places,
                respectively.
                PART 8--REQUIRED SOURCES OF SUPPLIES AND SERVICES
                8.404 [Amended]
                0
                 11. Amend section 8.404 in paragraph (b)(2) by removing ``$550,000''
                and adding ``$600,000'' in its place.
                8.405-3 [Amended]
                0
                 12. Amend section 8.405-3 by--
                0
                 a. Removing from paragraph (a)(3)(ii) introductory text ``$112
                million'' and adding ``$100 million'' in its place;
                0
                 b. Removing from paragraph (a)(3)(iii) ``$112 million'' and adding
                ``$100 million'' in its place; and
                0
                 c. Removing from paragraph (a)(7)(v) ``$112 million'' and adding
                ``$100 million'' in its place.
                8.405-6 [Amended]
                0
                 13. Amend section 8.405-6 by--
                0
                 a. Removing from paragraph (d)(1) ``$700,000'' and adding ``$750,000''
                in its place;
                0
                 b. Removing from paragraph (d)(2) ``$700,000'' and ``$13.5 million''
                and adding ``$750,000'' and ``$15 million'' in their places,
                respectively;
                0
                 c. Removing from paragraph (d)(3) introductory text ``$13.5 million'',
                ``$68 million'', and ``$93 million'' and adding ``$15 million'', ``$75
                million'', and ``$100 million'' in their places, respectively; and
                0
                 d. Removing from paragraph (d)(4) ``$68 million'' and ``$93 million''
                and adding ``$75 million'' and ``$100 million'' in their places,
                respectively.
                PART 9--CONTRACTOR QUALIFICATIONS
                9.104-5 [Amended]
                0
                 14. Amend section 9.104-5 in paragraph (c) by removing ``$5,000,000''
                and adding ``$5.5 million'' in its place.
                9.104-7 [Amended]
                0
                 15. Amend section 9.104-7 by--
                0
                 a. Removing from paragraphs (b) and (c)(1) ``$550,000'' and adding
                ``$600,000'' in their places, respectively; and
                0
                 b. Removing from paragraph (e) ``$5,000,000'' and adding ``$5.5
                million'' in its place.
                9.405-2 [Amended]
                0
                 16. Amend section 9.405-2 in paragraph (b) introductory text by--
                0
                 a. Removing from the second sentence ``$35,000'' and adding
                ``$40,000'' in its place; and
                0
                 b. Removing from the third sentence ``$35,000'' and adding ``$40,000''
                in its place.
                9.409 [Amended]
                0
                 17. Amend section 9.409 by removing ``$35,000'' and adding ``$40,000''
                in its place.
                PART 10--MARKET RESEARCH
                10.001 [Amended]
                0
                 18. Amend section 10.001 in paragraph (d) by removing ``$5.5 million''
                and adding ``$6 million'' in its place.
                10.003 [Amended]
                0
                 19. Amend section 10.003 by removing ``$5.5 million'' and adding ``$6
                million'' in its place.
                PART 12--ACQUISITION OF COMMERCIAL ITEMS
                12.102 [Amended]
                0
                 20. Amend section 12.102 in paragraph (f)(2) by removing ``$19
                million'' and adding ``$20 million'' in its place.
                12.203 [Amended]
                0
                 21. Amend section 12.203 by removing ``$7 million ($13 million'' and
                adding ``$7.5 million ($15 million'' in its place.
                PART 13--SIMPLIFIED ACQUISITION PROCEDURES
                13.000 [Amended]
                0
                 22. Amend section 13.000 by removing ``$7 million ($13 million'' and
                adding ``$7.5 million ($15 million'' in its place.
                13.003 [Amended]
                0
                 23. Amend section 13.003 by removing from paragraphs (c)(1)(ii) and
                (g)(2) ``$7 million ($13 million'' and adding ``$7.5 million ($15
                million'' in their places, respectively.
                13.201 [Amended]
                0
                 24. Amend section 13.201 in paragraph (g)(1)(ii) by removing
                ``$30,000'' and adding ``$35,000'' in its place.
                13.303-5 [Amended]
                0
                 25. Amend section 13.303-5 by--
                0
                 a. Removing from paragraph (b)(1) ``$7 million'' and ``$13 million''
                and adding ``$7.5 million'' and ``$15 million'' in their places,
                respectively; and
                0
                 b. Removing from paragraph (b)(2) ``$7 million ($13 million'' and
                adding ``$7.5 million ($15 million'' in its place.
                13.402 [Amended]
                0
                 26. Amend section 13.402 in paragraph (a) by removing ``$35,000'' and
                adding ``$40,000'' in its place.
                13.500 [Amended]
                0
                 27. Amend section 13.500 by--
                [[Page 39150]]
                0
                 a. Removing from paragraph (a) ``$7 million ($13 million'' and adding
                ``$7.5 million ($15 million'' in its place; and
                0
                 b. Removing from paragraph (c) introductory text ``$13 million'' and
                adding ``$15 million'' in its place.
                13.501 [Amended]
                0
                 28. Amend section 13.501 by--
                0
                 a. Removing from paragraph (a)(2)(i) ``$700,000'' and adding
                ``$750,000'' in its place;
                0
                 b. Removing from paragraph (a)(2)(ii) ``$700,000'' and ``$13.5
                million'' and adding ``$750,000'' and ``$15 million'' in their places,
                respectively;
                0
                 c. Removing from paragraph (a)(2)(iii) ``$13.5 million'', ``$68
                million'', and ``$93 million'' and adding ``$15 million'', ``$75
                million'', and ``$100 million'' in their places, respectively; and
                0
                 d. Removing from paragraph (a)(2)(iv) ``$68 million'' and ``$93
                million'' and adding ``$75 million'' and ``$100 million'' in their
                places, respectively.
                PART 15--CONTRACTING BY NEGOTIATION
                15.403-1 [Amended]
                0
                 29. Amend section 15.403-1 in paragraph (c)(3)(iv) by removing ``$19
                million'' and adding ``$20 million'' in its place.
                15.404-3 [Amended]
                0
                 30. Amend section 15.404-3 in paragraph (c)(1)(i) by removing ``$13.5
                million'' and adding ``$15 million'' in its place.
                15.407-2 [Amended]
                0
                 31. Amend section 15.407-2 by removing from paragraphs (c)(1) and
                (c)(2) introductory text ``$13.5 million'' and adding ``$15 million''
                in their places, respectively.
                15.408 [Amended]
                0
                 32. Amend section 15.408, in Table 15-2, section II, paragraph A.(2)
                by removing ``$13.5 million'' and adding ``$15 million'' in its place.
                PART 16--TYPES OF CONTRACTS
                16.503 [Amended]
                0
                 33. Amend section 16.503 in paragraph (b)(2) by removing ``$112
                million'' and adding ``$100 million'' in its place.
                16.504 [Amended]
                0
                 34. Amend section 16.504 by--
                0
                 a. Removing from paragraphs (c)(1)(ii)(D)(1) and (D)(3) introductory
                text, ``$112 million'' and adding ``$100 million'' in their places,
                respectively; and
                0
                 b. Removing from paragraph (c)(2)(i) introductory text ``$13.5
                million'' and adding ``$15 million'' in its place.
                16.505 [Amended]
                0
                 35. Amend section 16.505 by--
                0
                 a. Removing from paragraph (b)(1)(i) introductory text ``$3,500'' and
                adding ``$4,000'' in its place;
                0
                 b. Removing from paragraph (b)(1)(iv) introductory text ``$5.5
                million'' twice, and adding ``$6 million'' in their places,
                respectively;
                0
                 c. Removing from paragraph (b)(2)(i) introductory text and
                (b)(2)(ii)(A) ``$3,500'' and adding ``$4,000'' in their places,
                respectively;
                0
                 d. Removing from paragraph (b)(2)(ii)(C)(1) ``$700,000'' and adding
                ``$750,000'' in its place;
                0
                 e. Removing from paragraph (b)(2)(ii)(C)(2) ``$700,000'' and ``$13.5
                million'' and adding ``$750,000'' and ``$15 million'' in their places,
                respectively;
                0
                 f. Removing from paragraph (b)(2)(ii)(C)(3) introductory text ``$13.5
                million'', ``$68 million, and ``$93 million'' and adding ``$15
                million'', ``$75 million'' and ``$100 million'' in their places,
                respectively;
                0
                 g. Removing from paragraph (b)(2)(ii)(C)(4) ``$68 million'' and ``$93
                million'' and adding ``$75 million'' and ``$100 million'' in their
                places, respectively; and
                0
                 h. Removing from paragraph (b)(6) ``$5.5 million'' and ``$5.5
                million'', and adding ``$6 million'' and ``$6 million'' in their
                places, respectively.
                16.506 [Amended]
                0
                 36. Amend section 16.506 by--
                0
                 a. Removing from paragraphs (f) and (g) ``$13.5 million'' and adding
                ``$15 million'' in their places, respectively; and
                0
                 b. Removing from paragraph (h) ``$5.5 million'' and adding ``$6
                million'' in its place.
                PART 17--SPECIAL CONTRACTING METHODS
                17.108 [Amended]
                0
                 37. Amend section 17.108 by--
                0
                 a. Removing from paragraph (a) ``$13.5 million'' and adding ``$15
                million'' in its place; and
                0
                 b. Removing from paragraph (b) ``$135.5 million'' and adding ``$150
                million'' in its place.
                17.500 [Amended]
                0
                 38. Amend section 17.500 in paragraph (c)(2) by removing ``$550,000''
                and adding ``$600,000'' in its place.
                PART 19--SMALL BUSINESS PROGRAMS
                19.702 [Amended]
                0
                 39. Amend section 19.702 by removing from paragraphs (a)(1)(i) through
                (iii) ``$700,000'' and adding ``$750,000'' in their places,
                respectively.
                19.704 [Amended]
                0
                 40. Amend section 19.704 by--
                0
                 a. Removing from paragraph (a) introductory text ``plan'' and adding
                ``plan required'' in its place; and
                0
                 b. Removing from paragraph (a)(9) ``$700,000'' and adding ``$750,000''
                in its place.
                19.708 [Amended]
                0
                 41. Amend section 19.708 in paragraph (b)(1) by removing ``$700,000''
                and adding ``$750,000'' in its place.
                19.805-1 [Amended]
                0
                 42. Amend section 19.805-1 in paragraph (a)(2) by removing ``$7
                million'' and ``$4 million'' and adding ``$7.5 million'' and ``$4.5
                million'' in their places, respectively.
                19.808-1 [Amended]
                0
                 43. Amend section 19.808-1 in paragraph (a) by removing ``$22
                million'' and adding ``$25 million'' in its place.
                19.1306 [Amended]
                0
                 44. Amend section 19.1306 by--
                0
                 a. Removing from paragraph (a)(2)(i) ``$7 million'' and adding ``$7.5
                million'' in its place; and
                0
                 b. Removing from paragraph (a)(2)(ii) ``$4 million'' and adding ``$4.5
                million'' in its place.
                19.1406 [Amended]
                0
                 45. Amend section 19.1406 by--
                0
                 a. Removing from paragraph (a)(2)(i) ``$6.5 million'' and adding ``$7
                million'' in its place; and
                0
                 b. Removing from paragraph (a)(2)(ii) ``$4 million'' and adding ``$4.5
                million'' in its place.
                PART 22--APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS
                22.1103 [Amended]
                0
                 46. Amend section 22.1103 by removing ``$700,000'' and adding
                ``$750,000'' in its place.
                22.1701 [Amended]
                0
                 47. Amend section 22.1701 in paragraph (b)(2) by removing ``$500,000''
                and adding ``$550,000'' in its place.
                [[Page 39151]]
                22.1703 [Amended]
                0
                 48. Amend section 22.1703 by removing from paragraphs (c)(1)(i)(B) and
                (c)(3)(i)(B) ``$500,000'' and adding ``$550,000'' in their places,
                respectively.
                22.1705 [Amended]
                0
                 49. Amend section 22.1705 in paragraph (b)(1) by removing ``$500,000''
                and adding ``$550,000'' in its place.
                PART 26--OTHER SOCIOECONOMIC PROGRAMS
                26.404 [Amended]
                0
                 50. Amend section 26.404 by removing ``$25,000'' and adding
                ``$30,000'' in its place.
                PART 28--BONDS AND INSURANCE
                28.102-1 [Amended]
                0
                 51. Amend section 28.102-1 in paragraph (b)(1) introductory text by
                removing ``$35,000'' and adding ``$40,000'' in its place.
                28.102-2 [Amended]
                0
                 52. Amend section 28.102-2 in paragraph (c) paragraph heading by
                removing ``$35,000'' and adding ``$40,000'' in its place.
                28.102-3 [Amended]
                0
                 53. Amend section 28.102-3 in paragraph (b) by removing ``$35,000''
                and adding ``$40,000'' in its place.
                PART 32--CONTRACT FINANCING
                32.104 [Amended]
                0
                 54. Amend section 32.104 by removing from paragraphs (d)(2)(i) and
                (ii) ``$2.5 million'' and adding ``$3 million'' in their places,
                respectively.
                PART 36--CONSTRUCTION AND ARCHITECT-ENGINEER CONTRACTS
                36.303-1 [Amended]
                0
                 55. Amend section 36.303-1 in paragraph (a)(4) by removing ``$4
                million'' and adding ``$4.5 million'' in its place.
                PART 42--CONTRACT ADMINISTRATION AND AUDIT SERVICES
                42.709-0 [Amended]
                0
                 56. Amend section 42.709-0 in paragraph (b) by removing ``$750,000''
                and adding ``$800,000'' in its place.
                42.709-6 [Amended]
                0
                 57. Amend section 42.709-6 by removing ``$750,000'' and adding
                ``$800,000'' in its place.
                42.1502 [Amended]
                0
                 58. Amend section 42.1502 by--
                0
                 a. Removing from paragraph (e) ``$700,000'' twice and adding
                ``$750,000'' in their places, respectively; and
                0
                 b. Removing from paragraph (f) ``$35,000'' twice and adding
                ``$40,000'' in their places, respectively.
                PART 50--EXTRAORDINARY CONTRACTUAL ACTIONS AND THE SAFETY ACT
                50.102-1 [Amended]
                0
                 59. Amend section 50.102-1 in paragraph (b) by removing ``$70,000''
                and adding ``$75,000'' in its place.
                50.102-3 [Amended]
                0
                 60. Amend section 50.102-3 by--
                0
                 a. Removing from paragraph (b)(4) ``$34 million'' and adding ``$40
                million'' in its place; and
                0
                 b. Removing from paragraphs (e)(1)(i) and (ii) ``$70,000'' and adding
                ``$75,000'' in their places.
                PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
                0
                 61. Amend section 52.248-3 by revising the date of the clause, and
                removing from paragraph (h) ``$70,000'' and adding ``$75,000'' in its
                place.
                 The revision reads as follows:
                52.248-3 Value Engineering--Construction.
                * * * * *
                Value Engineering--Construction (DATE)
                * * * * *
                PART 53--FORMS
                53.219 [Amended]
                0
                 62. Amend section 53.219 by removing ``(Rev. 8/2016)'' and adding
                ``(DATE)'' in its place.
                [FR Doc. 2020-13334 Filed 6-29-20; 8:45 am]
                BILLING CODE 6820-EP-P
                

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