Federal Acquisition Circular 97-09; Introduction

DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Chapter 1

Federal Acquisition Circular 97-09; Introduction

AGENCIES: Department of Defense (DoD), General ServicesAdministration

(GSA), and National Aeronautics and SpaceAdministration (NASA).

ACTION: Summary presentation of final and interim rules, and technical

amendments and corrections.

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SUMMARY: This document summarizes the Federal Acquisition Regulation

(FAR) rules issued by the Civilian Agency Acquisition Council and the

Defense Acquisition Regulations Council in this Federal Acquisition

Circular (FAC) 97-09. A companion document, the Small Entity Compliance

Guide (SECG), follows this FAC. The FAC, including the SECG, may be

located on the Internet at http://www.arnet.gov/far.

DATES: For effective dates and comment dates, see separate documents

which follow.

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 the analyst whose name appears in the table below in

relation to each FAR case or subject area. Please cite FAC 97-09 and

specific FAR case number(s). Interested parties may also visit our

website at http://www.arnet.gov/far.

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Item Subject FAR case Analyst

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I....................................... Taxpayer Identification Numbers 97-003 Olson.

(Interim).

II...................................... Electronic Commerce in Federal 97-304 Nelson.

Procurement (Interim).

III..................................... Alternate Dispute Resolution-- 97-015 O'Neill.

1996.

IV...................................... Pay-As-You-Go Pension Costs..... 89-012 Olson.

V....................................... Rehabilitation Act, Workers With 96-610 O'Neill.

Disabilities.

VI...................................... Civil Defense Costs............. 97-036 Nelson.

VII..................................... Costs Related to Legal/Other 95-020 Nelson.

Proceedings.

VIII.................................... Service Contracts............... 97-302 Olson.

IX...................................... Payment Due Dates............... 97-609 Olson.

X....................................... Technical Amendments............

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SUPPLEMENTARY INFORMATION: Summaries for each FAR rule follow. For the

actual revisions and/or amendments to these FAR cases, refer to the

specific item number and subject set forth in the documents following

these item summaries.

Federal Acquisition Circular 97-09 amends the Federal Acquisition

Regulation (FAR) as specified below:

Item I--Taxpayer Identification Numbers (FAR Case 97-003)

This interim rule amends FAR Parts 1, 4, 13, 14, 15, and 52 to

implement Subsection (i) of the Debt Collection Improvement Act of 1996

(Pub. L. 104-134) and Section 1022 of the Taxpayer Relief Act of 1997

(Pub. L. 105-32). The rule clarifies requirements for obtaining

Taxpayer Identification Number (TIN) information from contractors and

forwarding the information to payment offices; specifies that TIN

information may be used by the Government to collect and report on any

delinquent amounts arising out of the contractor's relationship with

the Government; and clarifies and updates requirements for reporting

contract information and payment information to the Internal Revenue

Service.

(Orders under Federal Supply Schedule (FSS) contracts. Ordering

officials are required to provide the FSS contractor's TIN (and other

information) to the payment office for each order under an FSS

contract. The General Services Administration is planning to establish

an Internet based system by early 1999 that can be used by ordering

officials to obtain this information. In the meantime, the information

can be obtained from most FSS contract price lists or by requesting it

directly from the FSS contractor prior to placing an order.)

Item II--Electronic Commerce in Federal Procurement (FAR Case 97-

304)

This interim rule revises FAR Subpart 4.5 and makes associated

changes to FAR Parts 2, 5, 13, and 14, to implement Section 850 of the

National Defense Authorization Act for Fiscal Year 1998 (Pub. L. 105-

85) to eliminate the preference for electronic commerce within Federal

agencies to be conducted on the Federal Acquisition Computer Network

(FACNET) Architecture. In addition, this interim rule promotes the use

of cost-effective procedures and processes that employ electronic

commerce in the conduct and administration of Federal procurement

systems. In order to facilitate access to Federal procurements, Section

850 mandates that a single Governmentwide point of entry be used. Once

the Administrator of the Office of Federal Procurement Policy (OFPP)

designates the single Governmentwide point of entry, the FAR will be

changed accordingly. FACNET qualifies as the single, Governmentwide

point of entry until the Administrator of OFPP designates the single,

Governmentwide point of entry. Federal procurement systems that employ

electronic commerce shall apply nationally and internationally

recognized standards that broaden interoperability and ease the

electronic interchange of information.

Item III--Alternative Dispute Resolution--1996 (FAR Case 97-015)

This final rule amends FAR 6.302-3, 24.202, 33.2, and the clause at

52.233-1 to implement the Administrative Dispute Resolution Act of 1996

(Pub. L. 104-320) and Section 4321(a)(7) of the Clinger-Cohen Act of

1996 (Pub. L. 104-106). The rule makes clear the authority to contract

with a neutral person as an exception to requirements for full and open

competition; revises requirements for certification of a claim under

the Administrative Dispute Resolution Act to conform to the

requirements under the Contract Disputes Act; and specifies that

certain dispute resolution communications are exempt from disclosure

under the Freedom of Information Act.

Item IV--Pay-As-You-Go Pension Costs (FAR Case 89-012)

The interim rule published as Item I of FAC 84-44 is converted to a

final rule with amendments at FAR 15.408, 31.001, 31.205-6, and the

clause at 52.215-15. The rule amends the FAR for

[[Page 58587]]

consistency with 48 CFR 9904.412, Cost accounting standard for

composition and measurement of pension cost (CAS 412), and 48 CFR

9904.413, Adjustment and allocation of pension cost (CAS 413). CAS 412

and CAS 413 relate to accounting for pension costs under negotiated

Government contracts.

Item V--Rehabilitation Act, Workers With Disabilities (FAR Case 96-

610)

The interim rule published as Item V of FAC 97-05 is converted to a

final rule without change. The rule implements Department of Labor

regulations at 41 CFR 60-741 regarding affirmative action to employ,

and advance in employment, qualified individuals with disabilities.

Item VI--Civil Defense Costs (FAR Case 97-036)

This final rule deletes the civil defense cost principle at FAR

31.205-5, as this guidance is no longer deemed necessary. The

acceptability of civil defense costs will remain governed by the

allocability, allowability, and reasonableness criteria discussed in

FAR Part 31.

Item VII--Costs Related to Legal/Other Proceedings (FAR Case 95-

020)

This final rule amends FAR 31.205-47, Costs related to legal and

other proceedings, to clarify the allowability of costs incurred for

qui tam suits in which the Government does not intervene. This rule is

consistent with audit guidance issued by the Defense Contract Audit

Agency on August 24, 1995. Certain Government contracting personnel and

contractors may have had common misinterpretations of the language at

FAR 31.205-47 prior to August 24, 1995. For qui tam legal fees incurred

prior to August 24, 1995, if the Government contracting personnel and

the contractor shared a common misinterpretation of the language at FAR

31.205-47, the contracting officer, in consultation with his or her

legal advisors, should determine the appropriate treatment of those

costs on a case-by-case basis.

Item VIII--Service Contracts (FAR Case 97-302)

This final rule revises FAR 32.703-3 and amends 37.106 to implement

Section 801 of the National Defense Authorization Act for Fiscal Year

1998 (Pub. L. 105-85). Section 801 provides that the Secretary of

Defense, the Secretary of a military department, or the Secretary of

Transportation with respect to the Coast Guard, when it is not

operating as a service in the Navy, may enter into a contract for

procurement of severable services for a period that begins in one

fiscal year and ends in the next fiscal year. This authority remains

the same for civilian agencies other than NASA.

Item IX--Payment Due Dates (FAR Case 97-609)

This final rule amends FAR Subpart 32.9 to clarify that agencies

may amend the clauses at FAR 52.232-25, Prompt Payment, and 52.232-26,

Prompt Payment for Fixed-Price Architect-Engineer Contracts, to specify

a period shorter than 30 days (but not less than 7 days) for making

contract invoice payments.

Item X--Technical Amendments

Amendments are being made at sections 1.106, 6.302-3, 14.205-1,

14.407-4, 15.404-1, 19.102, 19.1004, 32.705-1, 33.104, 36.601-4,

41.103, 52.212-5, 52.244-6, and 53.228 in order to update references

and make editorial changes.

Dated: October 22, 1998.

Edward C. Loeb,

Director, Federal Acquisition Policy Division.

FAC 97-09

Federal Acquisition Circular (FAC) 97-09 is issued under the

authority of the Secretary of Defense, the Administrator of General

Services, and the Administrator for the National Aeronautics and Space

Administration.

Unless otherwise specified, all Federal Acquisition Regulation

(FAR) and other directive material contained in FAC 97-09 are effective

December 29, 1998, except for Items I, II, V, and X which are effective

October 30, 1998.

Dated: October 23, 1998.

Eleanor R. Spector,

Director, Defense Procurement.

Ida M. Ustad,

Deputy Associate Administrator, Office of Acquisition Policy, General

Services Administration.

Dated: October 16, 1998.

Tom Luedtke,

Acting Associate Administrator for Procurement, National Aeronautics

and Space Administration.

[FR Doc. 98-28954 Filed 10-29-98; 8:45 am]

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