Federal Acquisition Regulation; Information Technology Management Reform Act of 1996

DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 2, 5, 7, 8, 9, 12, 13, 16, 17, 19, 22, 32, 33, 34, 37,

38, 39, 45, 46, 51, 52, and 53

[FAC 97-03; FAR Case 96-319; Item II]

RIN 9000-AH75

Federal Acquisition Regulation; Information Technology Management

Reform Act of 1996

AGENCIES: Department of Defense (DoD), General Services Administration

(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Interim rule adopted as final with change.

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SUMMARY: The Civilian Agency Acquisition Council and the Defense

Acquisition Regulations Council have agreed to adopt as final, with

change, the interim rule published as Item I of Federal Acquisition

Circular 90-41 on August 8, 1996. The rule amends the Federal

Acquisition Regulation (FAR) to implement the Information Technology

Management Reform Act (ITMRA) of 1996, Division E of Pub. L. 104-106.

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: February 9, 1998.

FOR FURTHER INFORMATION CONTACT: The FAR Secretariat, Room 4035, GS

Building, Washington, DC 20405, (202) 501-4755, for information

pertaining to status or publication schedules. For clarification of

content, contact Ms. Linda Nelson, Procurement Analyst, at (202) 501-

1900. Please cite FAC 97-03, FAR case 96-319.

SUPPLEMENTARY INFORMATION:

A. Background

An interim rule was published in the Federal Register at 61 FR

41467, August 8, 1996. Twelve comments from four respondents were

received during the public comment period. All comments were considered

in the development of the final rule. In response to public comments on

the interim rule, the definition of ``information technology'' at FAR

2.101 has been clarified.

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. The analysis is summarized as follows:

ITMRA requires a simplified, clear, and understandable process

in the FAR for acquiring information technology. No issues were

raised in response to the Initial Regulatory Flexibility Analysis.

The rule applies to all entities, large and small, that propose to

perform, or are awarded, Government contracts for information

technology. There are no statistics available on the exact number of

small businesses that submit bids or proposals for contracts for

information technology. However, based on information provided by

the Federal Procurement Data System, a total of 29,879 awards were

made to small businesses during fiscal year 1996 under information

technology product codes with a total dollar value of

$4,443,176,000. The rule imposes no new reporting, recordkeeping, or

other compliance requirements. There are no practical alternatives

that will effectively implement ITMRA. The final rule simplifies and

streamlines the process of acquiring information technology, and

minimizes the economic burden of such acquisitions, while expanding

opportunities for small entities to participate in Federal

information technology contracts.

A copy of the FRFA may be obtained from the FAR Secretariat.

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.

List of Subjects in 48 CFR Parts 2, 5, 7, 8, 9, 12, 13, 16, 17, 19, 22,

32, 33, 34, 37, 38, 39, 45, 46, 51, 52, and 53

Government procurement.

Dated: December 1, 1997.

Edward C. Loeb,

Director, Federal Acquisition Policy Division.

Interim Rule Adopted as Final With Change

Accordingly, the interim rule amending 48 CFR Parts 2, 5, 7, 8, 9,

12, 13, 16, 17, 19, 22, 32, 33, 34, 37, 38, 39, 45, 46, 51, 52, and 53,

which was published at 61 FR 41467, August 8, 1996, is adopted as a

final rule with the following change:

PART 2--DEFINITIONS OF WORDS AND TERMS

1. The authority citation for 48 CFR Part 2 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).

[[Page 64915]]

2. Section 2.101 is amended in the definition of ``Information

technology'' by revising paragraph (c) to read as follows:

2.101 Definitions.

* * * * *

Information technology * * *

* * * * *

(c) The term information technology does not include--

(1) Any equipment that is acquired by a contractor incidental to a

contract; or

(2) Any equipment that contains imbedded information technology

that is used as an integral part of the product, but the principal

function of which is not the acquisition, storage, manipulation,

management, movement, control, display, switching, interchange,

transmission, or reception of data or information. For example, HVAC

(heating, ventilation, and air conditioning) equipment such as

thermostats or temperature control devices, and medical equipment where

information technology is integral to its operation, are not

information technology.

* * * * *

[FR Doc. 97-31815 Filed 12-8-97; 8:45 am]

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