Federal Acquisition Regulation; Termination Inventory Schedules
Federal RegisterJul 26, 1996
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 49 and 52
[FAC 90-40; FAR Case 94-003; Item XV]
RIN 9000-AG13
Federal Acquisition Regulation; Termination Inventory Schedules
AGENCIES: Department of Defense (DOD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Civilian Agency Acquisition Council and the Defense
Acquisition Regulations Council have agreed on a final rule amending
the Federal Acquisition Regulation (FAR) concerning termination of
contracts to preclude excessive delays in processing terminations for
the convenience of the Government. The amendments will require
contractors to prepare and submit termination inventory schedules
within 120 days from the effective date of termination, unless
otherwise extended by the Termination Contracting Officer (TCO). This
will enable the TCO to initiate early inventory screening and final
disposition, thereby substantially reducing the time required to
achieve termination settlement. This regulatory action was not subject
to Office of Management and Budget review under Executive Order 12866,
dated September 30, 1993, and is not a major rule under 5 U.S.C. 804.
EFFECTIVE DATE: September 24, 1996.
FOR FURTHER INFORMATION CONTACT: Ms. Linda Klein at (202) 501-3775 in
reference to this FAR case. For general information, contact the FAR
Secretariat, Room 4037, GS Building, Washington, DC 20405 (202) 501-
4755. Please cite FAC 90-40, FAR case 94-003.
SUPPLEMENTARY INFORMATION:
A. Background-
When inventory schedules required for contracts terminated for the
convenience of the Government are not submitted in a timely manner by
the terminated contractor(s), unnecessary delays are experienced both
in effecting redistribution and disposal of the termination inventory
and in reaching final settlement of those contracts.-
In an attempt to preclude excessive delays in processing
terminations for the convenience of the Government, a proposed rule was
published in the Federal Register at 59 FR 61734, December 1, 1994,
with a request for comment. As a result of the comments received under
the proposed rule, the following changes to the final rule have been
made:
--The reference to ``provisions'' in the first sentence of both FAR
49.206-3 and 49.303-2 has been revised to read ``terms'';-
--The word ``must'' in the last sentence of FAR 49.206-3 and 49.303-2
is changed to read ``shall''; -
--The events described in the clauses at 52.249-2 (c) and (d), 52.249-3
(c) and (d), 52.249-6 (d) and (e), and 52.249-11 (c) and (d) have been
reversed to reflect the order in which the events occur; and-
--Several references have been updated.
B. Regulatory Flexibility Act-
A Final Regulatory Flexibility Analysis (FRFA) has been prepared
and will be provided to the Chief Counsel for Advocacy of the Small
Business Administration. A copy of the FRFA may be obtained from the
FAR Secretariat. Comments are invited. Comments from small entities
concerning the affected FAR subparts will be considered in accordance
with 5 U.S.C. 610. Such comments must be submitted separately and cite
5 U.S.C 601 et seq. (FAC 90-40, FAR Case 94-003), in correspondence.
C. Paperwork Reduction Act-
The Paperwork Reduction Act does not apply because the changes to
the FAR do not impose recordkeeping or information collection
requirements, or collections of information from offerors, contractors,
or members of the public which require the approval of the Office of
Management and Budget under 44 U.S.C. 3501 et seq. Submission of
termination inventory schedules is an existing requirement; this rule
merely changes the timing for submission of those schedules.
List of Subjects in 48 CFR Parts 49 and 52
Government procurement.
Dated: July 16, 1996.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.
Therefore, 48 CFR Parts 49 and 52 are amended as set forth below:-
1. The authority citation for 48 CFR Parts 49 and 52 continues to
read as follows:
-Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42
U.S.C. 2473(c).
PART 49--TERMINATION OF CONTRACTS
49.105 [Amended]-
2. Section 49.105(c)(13) is amended by adding ``(see 49.206-3 and
49.303-2)'' to the end of the sentence.-
3. Section 49.206-3 is added to read as follows:
49.206-3 Submission of inventory schedules.-
Subject to the terms of the termination clause and whenever
termination inventory is involved, the contractor shall submit complete
inventory schedules, to the TCO, reflecting inventory that is allocable
to the terminated portion of the contract. The inventory schedules
shall be submitted within 120 days from the effective date of
termination unless otherwise extended by the TCO based on a written
justification to support the extension. The inventory schedules shall
be prepared on the forms prescribed in 49.602-2 and in accordance with
45.606-5.
49.303-2, 49.303-3, 49.303-4 [Redesignated as 49.303-3 through 49.303-
5].-
4. Sections 49.303-2, 49.303-3, and 49.303-4 are redesignated as
49.303-3, 49.303-4, and 49.303-5, respectively, and a new 49.303-2 is
added to read as follows:
49.303-2 Submission of inventory schedules.-
Subject to the terms of the termination clause and whenever
termination inventory is involved, the contractor shall submit complete
inventory schedules, to the TCO, reflecting inventory that is allocable
to the terminated portion of the contract. The inventory schedules
shall be submitted within 120 days from the effective date of
termination unless otherwise extended by the TCO based on a written
justification to support the extension. The inventory schedules shall
be prepared on the forms prescribed in
[[Page 39222]]
49.602-2 and in accordance with 45.606-5.
49.403 [Amended]-
5. Section 49.403 is amended in paragraph (b)(1) by removing
``(g)(3)'' and inserting ``(h)(3)''; and in paragraph (b)(2) by
removing ``(g)(4)'' and inserting ``(h)(4)''.
49.502 [Amended]-
6. Section 49.502 is amended in paragraph (e)(1) by removing
``paragraph (c)'' and inserting ``paragraph (d)''; and in paragraph
(e)(2) by removing ``paragraph (g)'' and inserting ``paragraph (h)''.
49.503 [Amended]-
7. Section 49.503 is amended in paragraph (c) by removing
``paragraphs (d), (i), and (m)'' and inserting ``paragraphs (e), (j),
and (n)''.
PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES-
5. Section 52.249-2 is amended by revising the introductory text
and clause date; by redesignating paragraphs (c) through (m) as (d)
through (n), respectively, and adding a new (c); and by redesignating
paragraph (f) of Alternates I and III as (g), to read as follows:
52.249-2 Termination for Convenience of the Government (Fixed-Price).-
As prescribed in 49.502(b)(1)(i), insert the following clause:
TERMINATION FOR CONVENIENCE OF THE GOVERNMENT (FIXED-PRICE) (SEP 1996)
* * * * *-
(c) The Contractor shall submit complete termination inventory
schedules no later than 120 days from the effective date of
termination, unless extended in writing by the Contracting Officer
upon written request of the Contractor within this 120-day period.
* * * * *
52.249-2 [Amended]-
5b. In addition to the amendments set forth above, 52.249-2 is
amended in the newly designated paragraphs by revising internal
references to read as follows:
------------------------------------------------------------------------
Paragraph Remove Insert
------------------------------------------------------------------------
(b)(9), 1st sentence............ ``subparagraph (6) ``subparagraph
above''. (b)(6) of this
clause''
(f), 1st sentence............... ``paragraph (d)''. ``paragraph (e)''
(f), 3rd sentence............... ``paragraph (e) or ``paragraph (f) or
paragraph (f)''. paragraph (g)''
``subparagraph ``subparagraph
(f)(3)''. (g)(3)''
(f), last sentence.............. ``Paragraph (f)''. ``Paragraph (g)''
(g), introductory text.......... ``paragraph (e) ``paragraph (f) of
above''. this clause''
(g)(1).......................... ``subparagraph ``subparagraph
(b)(9) above''. (b)(9) of this
clause''
(g)(2)(i)....................... ``subparagraph ``subparagraph
(f)(1) above''. (g)(1) of this
clause''
(g)(2) (ii) and (iii)........... ``subdivision (i) ``subdivision
above''. (g)(2)(i) of this
clause''
(h)............................. ``paragraph (f) ``paragraph (g) of
above''. this clause''
(j)............................. ``paragraph (d), ``paragraph (e),
(f), or (k)''. (g), or (l)''
``paragraph (d) or ``paragraph (e) or
(k)''. (l)''
Alternate I heading and ``(APR 1984)'' ``(SEP 1996)''
introductory text. ``paragraph (f) ``paragraph (g)
for paragraph for paragraph
(f)''. (g)''
Alternate I..................... Paragraph ``(f)'' Paragraph ``(g)''
designation. designation
Alternate I, (g) introductory ``paragraph (e) ``paragraph (f) of
paragraph. above''. this clause''
Alternate I, (g)(1)(ii)......... ``subdivision (i) ``subdivision
above''. (g)(1)(i) of this
clause''
Alternate I, (g)(1)(iii)........ ``(i) above''..... ``subdivision
(g)(1)(i) of this
clause''
Alternate II.................... ``(APR 1984)''.... ``(SEP 1996)''
Alternate II.................... ``subparagraph ``subparagraph
(l)(2)''. (m)(2)''
Alternate III heading........... ``(APR 1984)''.... ``(SEP 1996)''
Alternate III introductory text. ``(f) for ``(g) for
paragraph (f)''. paragraph (g)''
``Subparagraph ``Subparagraph
(l)(2)''. (m)(2)''
Alternate III................... Paragraph ``(f)'' Paragraph ``(g)''
designation. designation
Paragraph (g) of Alternate III.. ``Paragraph (e) ``Paragraph (f) of
above''. this clause''
Alternate III, (g)(1)(ii)....... ``subdivision (i) ``subdivision
above''. (g)(1)(i) of this
clause''
Alternate III, (g)(1)(iii)...... ``(i) above''..... ``subdivision
(g)(1)(i) of this
clause
------------------------------------------------------------------------
6. Section 52.249-3 is amended by revising the introductory text
and clause date; redesignating paragraphs (c) through (m) as (d)
through (n), respectively, and adding a new paragraph (c) to read as
follows:
52.249-3 Termination for Convenience of the Government (Dismantling,
Demolition, or Removal of Improvements).
As prescribed in 49.502(b)(2), insert the following clause:
TERMINATION FOR CONVENIENCE OF THE GOVERNMENT (DISMANTLING, DEMOLITION,
OR REMOVAL OF IMPROVEMENTS) (SEP 1996)
* * * * *
(c) The Contractor shall submit complete termination inventory
schedules no later than 120 days from the effective date of
termination, unless extended in writing by the Contracting Officer
upon written request of the Contractor within this 120-day period.
* * * * *
52.249-3 [Amended]
6b. In addition to the amendments set forth above, 52.249-3 is
further amended in the newly designated paragraphs by revising internal
references to read as follows:
------------------------------------------------------------------------
Paragraph Remove Insert
------------------------------------------------------------------------
(b)(9), 1st sentence............ ``subparagraph (6) ``subparagraph
above''. (b)(6) of this
clause''
(f), 1st sentence............... ``paragraph (d) ``paragraph (e) of
above''. this clause''
(f), 3rd sentence............... ``paragraph (e) or ``paragraph (f) or
paragraph (f) paragraph (g) of
below''. this clause''
(f), last sentence.............. ``Paragraph (f) ``Paragraph (g) of
below''. this clause''
(g), introductory text.......... ``paragraph (e) ``paragraph (f) of
above''. this clause''
[[Page 39223]]
(g)(1)(ii)...................... ``subdivision (i) ``subdivision
above''. (g)(1)(i) of this
clause''
(g)(1)(iii)..................... ``subdivision (i) ``subdivision
above''. (g)(1)(i) of this
clause''
(g)(2)(iii)..................... ``subparagraph ``subparagraph
(b)(8) above''. (b)(8) of this
clause''
(h)............................. ``paragraph (f) ``paragraph (g) of
above''. this clause''
(j)............................. ``paragraph (d), ``paragraph (e),
(f), or (k)'' (g), or (l) of
both times it this clause''
appears.
``paragraph (d) or ``paragraph (e) or
(k)''. (l)''
Alternate I..................... ``(APR 1984)''.... ``(SEP 1996)''
``subparagraph ``subparagraph
(1)(2)''. (m)(2)''
------------------------------------------------------------------------
7. Section 52.249-5 is amended by revising the introductory text
and clause date; redesignating paragraphs (c) through (g) as (d)
through (h), respectively, and adding a new paragraph (c) to read as
follows:
52.249-5 Termination for Convenience of the Government (Educational
and Other Nonprofit Institutions).
As prescribed in 49.502(d), insert the following clause:
TERMINATION FOR CONVENIENCE OF THE GOVERNMENT (EDUCATIONAL AND OTHER
NONPROFIT INSTITUTIONS) (SEP 1996)
* * * * *
(c) The Contractor shall submit complete termination inventory
schedules no later than 120 days from the effective date of
termination, unless extended in writing by the Contracting Officer
upon written request of the Contractor within this 120-day period.
* * * * *
52.249-5 [Amended]
7b. In addition to the amendments set forth above, 52.249-5 is
further amended in the newly designated paragraphs by revising internal
references to read as follows:
------------------------------------------------------------------------
Paragraph Remove Insert
------------------------------------------------------------------------
(b)(9).......................... ``subparagraph (6) ``subparagraph
above''. (b)(6) of this
clause''
(e)............................. ``paragraph (c) ``paragraph (d) of
above''. this clause''
(h)............................. ``paragraph (c)''. ``paragraph (d) of
this clause''
------------------------------------------------------------------------
8. Section 52.249-6 is amended in the clause by revising the clause
date; redesignating paragraphs (d) through (m) as (e) through (n),
respectively; by adding a new paragraph (d); by redesignating paragraph
(g) of Alternates (IV) and (V) as paragraph (h) to read as follows:
52.249-6 Termination (Cost-Reimbursement).
* * * * *
TERMINATION (COST-REIMBURSEMENT) (SEP 1996)
* * * * *
(d) The Contractor shall submit complete termination inventory
schedules no later than 120 days from the effective date of
termination, unless extended in writing by the Contracting Officer
upon written request of the Contractor within this 120-day period.
* * * * *
52.249-6 [Amended]
8b. In addition to the amendments set forth above, 52.249-6 is
further amended in the newly designated paragraphs by revising internal
references to read as follows:
------------------------------------------------------------------------
Paragraph Remove Insert
------------------------------------------------------------------------
(c)(9).......................... ``subparagraph (6) ``subparagraph
above''. (c)(6) of this
clause''
(g)............................. ``paragraph (e) ``paragraph (f) of
above''. this clause''
(h)(2).......................... ``subparagraph (1) ``subparagraph
above''. (h)(1) of this
clause''
(h)(5).......................... ``subparagraph ``subparagraph
(g)(4) above''. (h)(4) of this
clause''
(j), 1st sentence............... ``paragraph (e) or ``paragraph (f),
(g) above or (h), or (l) of
paragraph (k) this clause''
below''.
``paragraph (e)''. ``paragraph (f)''
(j), 2nd sentence............... ``paragraph (e), ``paragraph (f),
(g), or (k)''. (h), or (l) of
this clause''
Alternate I..................... ``(APR 1984)'' ``(SEP 1996)''
``(g)(4) for ``(h)(4) for
subparagraph subparagraph
(g)(4)''. (h)(4)''
Alternate II.................... ``(APR 1984)'' ``(SEP
``subparagraph 1996)''``subparag
(1)(2)''. raph (m)(2)''
Alternate III, introductory ``(APR 1984)''.... ``(SEP 1996)''
heading and text.
``(g)(4) shall be ``(h)(4) shall be
substituted for substituted for
subparagraph subparagraph
(g)(4)''. (h)(4)''
``Subparagraph ``Subparagraph
(1)(2)''. (m)(2)''
Alternate IV introductory ``(APR 1984)''.... ``(SEP 1996)''
heading and text.
``(g) and (k) for ``(h) and (l) for
paragraphs (g) paragraphs (h)
and (k)''. and (l)''
Alternate IV.................... Paragraph ``(g)'' Paragraph ``(h)''
designation. designation
Alternate IV, (h)(1)(iv)........ ``(g)(1)(i)''..... ``subdivision
(h)(1)(i)''
Alternate (IV), (h)(2) ``(g)(1)''........ ``subparagraph
introductory text. (h)(1)''
Alternate IV.................... Paragraph ``(k)'' Paragraph ``(l)''
designation. designation
Alternate V introductory heading ``(APR 1984)''.... ``(SEP 1996)''
and text.
``the following ``the following
paragraphs (g) paragraphs (h)
and (k) for and (l) for
paragraphs (g) paragraphs (h)
and (k)''. and (l)''
``Subparagraph ``Subparagraph
(l)(2)''. (m)(2)''
Alternate V..................... Paragraph ``(g)'' Paragraph ``(h)''
designation. designation
(h)(1)(iv) of Alternate V....... ``(g)(1)(i)''..... ``subdivision
(h)(1)(i)''
Alternate V, (h)(2) introductory ``(1) above''..... ``subparagraph
text. (h)(1) of this
clause''
[[Page 39224]]
Alternate V..................... Paragraph ``(k)'' Paragraph ``(l)''
designation. designation
------------------------------------------------------------------------
9. Section 52.249-11 is amended by revising the introductory text
and clause date; redesignating paragraphs (c) through (k) as (d)
through (l), respectively; and adding a new paragraph (c) to read as
follows:
52.249-11 Termination of Work (Consolidated Facilities or Facilities
Acquisition).
As prescribed in 49.505(a), insert the following clause:
TERMINATION OF WORK (CONSOLIDATED FACILITIES OR FACILITIES ACQUISITION)
(SEP 1996)
* * * * *
(c) The Contractor shall submit complete termination inventory
schedules no later than 120 days from the effective date of
termination, unless extended in writing by the Contracting Officer
upon written request of the Contractor within this 120-day period.
* * * * *
9b. In addition to the amendments set forth above, 52.249-11 is
further amended in the newly designated paragraphs by revising internal
references to read as follows:
------------------------------------------------------------------------
Paragraph Remove Insert
------------------------------------------------------------------------
(b)(9).......................... ``subparagraph (6) ``subparagraph
above''. (b)(6) of this
clause''.
(f)............................. ``paragraph (d) ``paragraph (e) of
above''. this clause''.
(g)(2).......................... ``subparagraph (1) ``subparagraph
above''. (g)(1) of this
clause''.
(i)............................. ``paragraph (d) or ``paragraph (e) or
(f) above'' both (g) of this
times it appears. clause''.
``paragraph (d) ``paragraph (e) of
above''. this clause''.
Alternate I..................... ``(APR 1984)''.... ``(SEP 1996)''.
``subparagraph ``subparagraph
(j)(2)''. (k)(2)''.
------------------------------------------------------------------------
[FR Doc. 96-18512 Filed 7-25-96; 8:45 am]
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