Federal Acquisition Circular 97-11; Introduction

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) 97-11. 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 97-11 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...................................... Review of FAR Representations. 96-013 Linfield.

II..................................... Very Small Business Concerns 98-013 Moss.

(Interim).

III.................................... Variation in Quantity......... 98-612 Moss.

IV..................................... Electronic Funds Transfer..... 91-118 Olson.

V...................................... Waiver of Cost or Pricing Data 98-302 De Stefano.

for Subcontracts.

VI..................................... Executive Order 12933, 94-610 O'Neill.

Nondisplacement of Qualified

Workers Under Certain

Contracts.

VII.................................... Recruitment Costs Principle... 98-001 Nelson.

VIII................................... Compensation for Senior 98-301 Nelson.

Executives (Interim).

IX..................................... 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 97-11 amends the Federal Acquisition

Regulation (FAR) as specified below:

Item I--Review of FAR Representations (FAR Case 96-013)

This final rule amends FAR parts 1, 4, 12, 14, 26, 27, 32, 41, and

52 to reduce certain contractual requirements for representations or

other affirmations that place an unnecessary burden on offerors or

contractors.

Item II--Very Small Business Concerns (FAR Case 98-013)

This interim rule amends Federal Acquisition Regulation (FAR) Parts

5, 8, 12, 19, and 52 to implement the Small Business Administration's

Very Small Business Pilot Program (13 CFR parts 121 and 125). The rule

provides for the set-aside of certain acquisitions between $2,500 and

$50,000 for very small business (VSB) concerns. The pilot VSB program

is limited to buying activities and VSBs located in 10 geographic

regions specified by the Small Business Administration and will run

through September 30, 2000.

Item III--Variation in Quantity (FAR Case 98-612)

This final rule revises the prescription in 11.703(a) for the

clause at 52.211-16, Variation in Quantity, to require use of the

clause only in solicitations and contracts where a variation in

quantity is authorized. This change makes the clause prescription

consistent with language in FAR 11.701(a).

Item IV--Electronic Funds Transfer (FAR Case 91-118)

This final rule amends FAR Parts 13, 16, 32, and 52 to address the

use of electronic funds transfer (EFT) for Federal contract payments,

and to facilitate implementation of Public Law 104-134 which mandates

payment by EFT in most situations. The final rule mainly differs from

the interim rule by removing references to the ``phase one'' time

period, which ended on January 1, 1999; by implementing applicable

provisions of the Department of the Treasury's final rule at 31 CFR

part 208 which addresses the ``phase two'' time period beginning

January 2, 1999; by addressing the situation where contractors furnish

EFT information by registering in the Central Contractor Registration

database; and by permitting agencies to collect EFT banking information

at various time periods ranging from prior to award (as a condition of

award) to after award (concurrent with the initial invoice).

Item V--Waiver of Cost or Pricing Data for Subcontracts (FAR Case

98-302)

Section 805 of Public Law 105-261 clarifies that waivers of

requirements for submittal of prime contractor cost or pricing data do

not automatically waive requirements for subcontractors to submit cost

or pricing data. Although this is consistent with the current

requirements of FAR 15.403-1(c)(4), the final rule clarifies the

requirement to provide rationale supporting any waiver of subcontracts.

Item VI--Executive Order 12933, Nondisplacement of Qualified

Workers Under Certain Contracts (FAR Case 94-610)

The interim rule published as Item III in FAC 97-01 is converted to

a final rule with minor changes. The final rule makes changes to the

definition of ``building service contract'' at FAR 22.1202, and

paragraphs (c) and (j) of the clause at 52.222-50, Nondisplacement of

Qualified Workers.

Item VII--Recruitment Costs Principle (FAR Case 98-001)

This final rule amends FAR 31.205-1, Public relations and

advertising costs, and FAR 31.205-34, Recruitment costs, to remove

excessive wording and details for streamlining purposes.

[[Page 10531]]

Item VIII--Compensation for Senior Executives (FAR Case 98-301)

This interim rule revises FAR section 31.205-6(p) to implement

Section 804 of the Strom Thurmond National Defense Authorization Act

for Fiscal Year 1999 (Pub. L. 105-261). Section 804 revises the

definition of ``senior executive'' at 10 U.S.C. 2324(1)(5) and at 41

U.S.C. 256(m)(2) to be ``the five most highly compensated employees in

management positions at each home office and each segment of the

contractor.'' This change applies to costs of compensation incurred

after January 1, 1999, regardless of the date of contract award.

Item IX--Technical Amendments

Amendments are being made at FAR 1.106, 25.402, 52.219-8, 53.228,

and 53.301-1418 in order to update references and make editorial

changes.

Dated: February 25, 1999.

Edward C. Loeb,

Director, Federal Acquisition Policy Division.

Federal Acquisition Circular

Federal Acquisition Circular (FAC) 97-11 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 97-11 are

effective May 3, 1999, except for Items II, VIII, and IX, which are

effective March 4, 1999.

Eleanor R. Spector,

Director, Defense Procurement.

Edward C. Loeb,

Acting Deputy Associate Administrator, Office of Acquisition Policy,

General Services Administration.

Tom Luedtke,

Acting Associate Administrator for Procurement, National Aeronautics

and Space Administration.

[FR Doc. 99-5202 Filed 3-3-99; 8:45 am]

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