TITLE CIB 955 Implementation of Federal Acquisition Streamlining Act - PDF document

1 TITLE: CIB 95-5 Implementation of Federa
TITLE: CIB 95-5 Implementation of Federal Acquisition Streamlining Act (FASA) Provisions February 8, 1995 MEMORANDUM FOR ALL CONTRACTING OFFICERS AND NEGOTIATORS FROM:DAA/M, Michael Sherwin, Procurement Executive SUBJECT:Implementation of Federal Acquisition Streamlining Act (FASA)Provisions CONTRACT INFORMATION BULLETIN 95-5 The Federal Acquisition Streamlining Act (FASA) became law October 13, 1994. 1.Increase in the threshold for requiring certified cost or pricing datafor contracts, subcontracts, and modifications thereto--from $100,000 to $500,000 See the interim rule in FAC 90-24, Item I, which implements 3.Exemption of purchases not exceeding the $2500micropurchases from the Buy American Act and the small business reserve of the Small Business Act. However, underFASA, these purchases may still be reserved for small businesses and 8(a) firms atthe purchasing office's discretion. Further

2 , end users of services and suppliesmay
, end users of services and suppliesmay be authorized to make these purchasesnot exceed $2500 and if the head of the procuring activity determines that theirestimated total purchases are not likely to exceed $20,000 in any 12-month period, 4.Repeal of the requirement for travel charged to cost reimbursementcontracts to be subject to the U.S. Government's maximum per diem rates. Though itwas not issued as an interim rule, interim USAID implementation should be based onFAR Case 94-753 (described below) if a contractor proposes alternative per diemrates. program that allows end users in USAID/W to make OE-fundedpurchases. 2a in FASA became effective on January 13, 1995. See the interim rule in FAR implementation of the remaining sections of FASA will be published forcomment shortly: the following FAR cases seeking comment on aspects of FASAcontracting personnel: Case Fed No.

3
Date (Synopsis) 94-701 Jan 9Contract Award Implementation (Specifies revisions to requirements for 94-721 Jan 6Truth in Negotiations Act Changes and Related Changes (Revises requirements for cost and pricing data 94-730Jan 10Protests, Disputes, and Appeals (Revises suspension of performance requirement 94-740Dec 23Consolidation and Revision of Authority to (Authorizes storage of records in electronic orindirect costs if another agency's recent auditwill suffice.) 94-751 Dec 19Penalties on Unallowable Indirect Costs 94-752 Dec 19Contractor Overhead Certification 94-753 Dec 14Travel Costs (Permits use of alternative maximum contractorContracting Officer approval, based upon thecontractor's demonstration that the rates are 3a system, and (3) not in excess of amountsnormally

4 paid under that system.) 94--780Jan 6Sma
paid under that system.) 94--780Jan 6Small Business (Revises provisions for (1) a small businessreserve range of $2500 to $100,000, (2)deletion of labor surplus areas in priority forawards, (3) up to a 10 percent evaluationwomen-owned businesses.) 94-801 Dec 20Debarment, Suspension, and Ineligibility (Requires reciprocal government-wide use of 94-802 Dec 1Officials Not to Benefit (Deletes contract clause.) 94-803 Dec 1Whistleblower Protection for Contractor 94-804 Dec 1Procurement Integrity (Deletes certification requirement forcommercial item procurements.) Contact M/OP/P for further information or to make comments on the above FAC's that fully implement FASA should become effective by April 22, 1995. Attachments:a/s 4a4a Department of Defense General Services Administration National Aeronautics and Space Administration 48 CFR Parts 14, 15, and 52 Federal Acquisition Regulation; Certifi

5 ed Cost orPricing Data Threshold; Interi
ed Cost orPricing Data Threshold; Interim Rule Federal Register / Vol. 59, No. 232 / Monday, DEPARTMENT OF DEFENSE GENERAL SERVICES ADMINISTRATION NATIONAL AERONAUTICS AND SPACE ADMINISTRATION 48 CFR Parts 14, 15, and 52 [FAC 90 - 22; FAR Case 94 - 720] RIN 9000 - AG19 Federal Acquisition Regulation; Certified Cost or AGENCIES: Department of Defense (DOD), GeneralAeronautics and Space Administration (NASA). ACTION: Interim rule with request for comment. SUMMARY: The Department of Defense, the Generaland Space Administration have agreed to an interimcommercial pricing certificates. This regulatoryaction was not subject to Office of Management and DATES: Effective Date: December 5, 1994. Comment Date: Comments should be submitted to 5a formulation of a final rule. ADDRESSES: Interested parties should submit written Please cite FAC 90 - 22, FAR case 94 - 720 in FOR FURTHER INFORMATIO

6 N CONTACT: Mr. Al Winston,Truth in Negot
N CONTACT: Mr. Al Winston,Truth in Negotiations Act (TINA) Team Leader, at(703) 602 - 2119 in reference to this FAR case. For720. SUPPLEMENTARY INFORMATION: A. Background The Federal Acquisition Streamlining Act of1994 (the Act), Pub. L. 103 - 355, providesrequirements. Major changes that can be expected inthe acquisition process as a result of the Act'sintroduction of the Federal Acquisition ComputerNetwork. This notice announces FAR revisions developedprovisions in the Act that increased the thresholdfor obtaining certified cost or pricing data fromand Space Administration, and the Coast Guard. TheAct also repealed the requirements to obtainimplement those limited portions of the Act. Further,more extensive changes to implement other portions of The FAR Council is interested in an exchangeof ideas and opinions with respect to the regulatoryimplementation of the Act. For that

7 reason, the FAR 6a the clarity and non-c
reason, the FAR 6a the clarity and non-controversial nature of the rule.If the public believes such a meeting is needed withrespect to this rule, a letter requesting a publicbefore January 4, 1995. The FAR Council will considersuch requests in determining whether a public meeting B. Regulatory Flexibility Act The interim rule is not expected to have abecause nearly all contracts awarded to smallbusiness are awarded on the basis of competition forperformed. Comments from small entities concerningthe affected FAR subpart will be considered in C. Paperwork Reduction Act The paperwork burden estimate applicable to(9000 - 0013) has been reduced to reflect the reducednumbers of submittals of certified cost or pricingsubmittals of cost or pricing data due to theincrease in the threshold from $100,000 to $500,000.FAR Secretariat, Room 4037, GS Building, Washington,DC 20405, (202) 501 - 4755 and

8 cite FAC 90 - 22, OMB D. Determination t
cite FAC 90 - 22, OMB D. Determination to Issue an Interim Rule A determination has been made under theAdministration (NASA) that compelling reasons existto promulgate this interim rule without prior 7a the certified cost or pricing data threshold forcivilian agencies is effective upon enactment.Additionally, the Act repeals the requirements forpossible to reduce administrative costs within theGovernment and at contractor locations. List of Subjects in 48 CFR Parts 14, 15 and 52 Government procurement. Dated: November 29, 1994. Capt. Barry L. Cohen, SC, USN, Project Manager for the Implementation of the Federal Unless otherwise specified, all FederalAcquisition Regulation (FAR) and other directivematerial contained in FAC 90 - 22 are effective Dated: November 17, 1994. Albert A. Vicchiolla Acting Associate Administrator, Office of Acquisition Dated: Nove

9 mber 23, 1994. Thomas Luedtke, Deputy As
mber 23, 1994. Thomas Luedtke, Deputy Associate Administrator for Procurement, NASA. Dated: November 28, 1994. Eleanor R. Spector, Director, Defense Procurement. Therefore, 48 CFR Parts 14, 15 and 52 are 1. The authority citation for 48 CFR Parts Authority Citation Authority: 40 U.S.C. 486(c); 10 U.S.C. 8a 2. Section 14.201 - 7 is amended inparagraphs (a), (b)(1), and (c)(1) by removingand inserting ``the threshold for submission of costor pricing data at 15.804 - 2(a)(1).'' in its place, 14.201 - 7 Contract clauses. * * * * * (d) Contracting officers shall, if requestedby the prime contractor, modify contracts to changethe threshold in the contract to the cost or pricingcurrent version of clauses 52.214 - 27, PriceReduction for Defective Cost or Pricing Data --apply only to contract modifications and subcontractsfor which agreement on price occurs afte

10 r the * * * * * 14.214 [Reserved]
r the * * * * * 14.214 [Reserved] 3. Section 14.214 is removed and reserved. PART 15 -- CONTRACTING BY NEGOTIATION 4. Section 15.804 - 2 is amended by revising 15.804 - 2 Requiring cost or pricing data. (a)(1) The threshold for obtaining cost orfive years thereafter. Except as provided in 15.804 -3, certified cost or pricing data are required beforecontracts, the threshold specified in the contract -- 9a (except for undefinitized actions such as lettercontracts); (ii) The award of a subcontract at any tier,if the contractor and each higher tier subcontractor(see 15.804 - 3(i); or (iii) The modification of any sealed bid ornegotiated contract (whether or not cost or pricingby paragraph (a)(1)(ii) of this subsection. Price adjustment amounts shall consider bothincreases and decreases. (For example, a $150,000and an increase of $200,000 is a prici

11 ng adjustmentexceeding $500,000.) This r
ng adjustmentexceeding $500,000.) This requirement does not applyin the same modification. (2) Contracting officers shall, if requestedby the prime contractor, modify contracts to changedata threshold in paragraph (a)(1) of thissubsection, without requiring consideration. TheDefective Cost or Pricing Data -- Modifications, and52.215 - 25, Subcontractor Cost or Pricing Data --and subcontracts for which agreement on price occursafter the contracting officer has inserted the new * * * * * 15.813 [Reserved] 5. Section 15.813 is removed and reserved,removed. PART 52 -- SOLICITATION PROVISIONS AND CONTRACTCLAUSES 6. Section 52.214 - 27 is amended by revising 10a Pricing Data -- Modifications -- Sealed Bidding * * * * * Price Reduction for Defective Cost or Pricing Data -- (a) This clause shall become operative onlysubmission of cost or pricing data at (FAR) 48 CFR15.804

12 - 2(a)(1), except that this clause does
- 2(a)(1), except that this clause does not * * * * * 7. Section 52.214 - 28 is amended: (a) By revising the clause date and the (b) In paragraph (a) by removing ``$100,000,``the threshold for submission of cost or pricingdata at (FAR) 48 CFR 15.804 - 2(a)(1)'' in its place; (c) In (d) by removing ``$100,000, or for theDepartment of Defense, the National Aeronautics andSpace Administration, and the Coast Guard, in each The revised text is to read as follows: 52.214 - 28 Subcontractor Cost or Pricing Data --Modifications -- Sealed Bidding. * * * * * Subcontractor Cost or Pricing Data -- Modifications - * * * * * (b) Before awarding any subcontract expectedpricing data at (FAR) 48 CFR 15.804 - 2(a)(1) when 11a the threshold for submission of cost or pricing dataat (FAR) 48 CFR 15.804 - 2(a)(1), the Contractorshall require the subcontractor to submit co

13 st or * * * * * 52.214 - 29 [Amended]
st or * * * * * 52.214 - 29 [Amended] 8. Section 52.214 - 29 is amended in theintroductory paragraph by revising ``14.201 - 7(d)''to read ``14.201 - 7(e)''. 52.215 - 23 [Amended] 9. Section 52.215 - 23 is amended by revisingthe Coast Guard, expected to exceed $500,000'' andinserting ``the threshold for submission of cost or 52.215 - 24 [Amended] 10. Section 52.215 - 24 is amended by``$100,000, or for the Department of Defense, theNational Aeronautics and Space Administration, and 11. Section 52.215 - 25 is amended by 52.215 - 25 Subcontractor Cost or Pricing Data -- * * * * * Subcontractor Cost or Pricing Data -- Modifications (a) The requirements of paragraphs (b) and(c) of this clause shall (1) become operative onlyfor any modification to this contract involving a 12a modifications. (b) Before awarding any subcontract expectedinvolving a pri

14 cing adjustment expected to exceed theth
cing adjustment expected to exceed thethreshold for submission of cost or pricing data atwriting), unless the price is -- * * * * * (d) The Contractor shall insert the substancesubcontract that exceeds the threshold for submission (End of clause) 52.215 - 32 [Removed and Reserved] 12. Section 52.215 - 32 is removed andreserved. 52.215 - 37 [Removed and Reserved] 13. Section 52.215 - 37 is removed and Back Trash [FR Doc. 94 - 29811 Filed 12 - 2 - 94; 8:45 am] BILLING CODE 6820 - 34 - U Monday December 5, 1994 13a13a 14a14a GENERAL SERVICES ADMINISTRATION NATIONAL AERONAUTICS AND SPACE ADMINISTRATION 48 CFR Chapter 1 [Federal Acquisition Circular 90 - 24] Federal Acquisition Regulation; Introduction ofMiscellaneous Amendments AGENCIES: Department of Defense (DOD), GeneralServices Administration (GSA), and NationalAeronautics and Space Administration (NASA). ACTION: Summa

15 ry of interim rules and technical SUMMAR
ry of interim rules and technical SUMMARY: This document introduces the documents, setAeronautics and Space Administration are issuing FAC90 - 24 pursuant to the Federal Acquisition )revisions are implemented in the following subjectareas: EFFECTIVE DATES: FAC 90 - 24 is effective December15, 1994. FOR FURTHER INFORMATION CONTACT: The FAR Secretariat,Please cite FAC 90 - 24 and applicable FAR casenumber(s). SUPPLEMENTARY INFORMATION: Federal AcquisitionRegulation (FAR) as specified below: Item I -- Repeal of Requirement forSecretarial/Agency Head Determinations Regarding Use700) This interim rule deletes the requirement fora ``determination and findings'' before using a cost 15a to 10 U.S.C. 2301. Item II -- Micro-Purchase Procedures (FAR Case 94 - This interim rule implements the newmicro-purchase requirements of the Act. Dated: December 8, 1994. Edward Loeb, Deputy Project M

16 anager for the Implementation of theFede
anager for the Implementation of theFederal Acquisition Streamlining Act of 1994. Federal Acquisition Circular Number 90 - 24 Federal Acquisition Circular (FAC) 90 - 24 isDefense, the Administrator of General Services, andthe Administrator for the National Aeronautics and Unless otherwise specified, all FederalAcquisition Regulation (FAR) and other directivematerial contained in FAC 90 - 24 is effective Dated: December 8, 1994. Ida M. Ustad, Associate Administrator for Acquisition Policy, GSA. Dated: December 8, 1994. Colonel Roland A. Hassebrock, Deputy Director, Defense Procurement, DOD. Dated: December 8, 1994. Deidre A. Lee, Associate Administrator for Procurement, NASA. [FR Doc. 94 - 30603 Filed 12 - 13 - 94; 10:43 am] DEPARTMENT OF DEFENSE GENERAL SERVICES ADMINISTRATION 16a 48 CFR Parts 7, 11, 16, and 19 [FAC 90 - 24; FAR Case 94 - 700; Item I]

17 RIN 9000 - AG25 Federal Acquisition Re
RIN 9000 - AG25 Federal Acquisition Regulation; Repeal of Requirementfor Secretarial/Agency Head Determinations Regarding AGENCIES: Department of Defense (DOD), General ACTION: Interim rule with request for comment. SUMMARY: This interim rule is issued pursuant to thefindings'' before using a cost type or incentivecontract and to delete references to 10 U.S.C. 2301. DATES: Effective Date: December 15, 1994. Comment Date: Comments should be submitted tobefore February 13, 1995 to be considered in theformulation of a final rule. ADDRESSES: Interested parties should submit writtenSecretariat (VRS), 18th & F Streets, NW, Room 4037,Attn: Ms. Beverly Fayson, Washington, DC 20405. Please cite FAC 90 - 24, FAR case 94 - 700 in all FOR FURTHER INFORMATION CONTACT: Ms. Melissa Rider,Washington, DC 20405 (202) 501 - 4755. Please citeFAC 90 - 24, FAR case 94 - 700. SUPPLEMENTARY INFORMATION: A. Backgroun

18 d The Federal Acquisition Strea
d The Federal Acquisition Streamlining Act of 17a and minimize burdensome Government-uniquerequirements. Major changes that can be expected inthe acquisition process as a result of the Act'sintroduction of the Federal Acquisition ComputerNetwork. This notice announces proposed FAR revisionsRequirement for Secretarial/Agency HeadDeterminations Regarding Use of Cost Type orat 16.301 - 3, 16.403, 16.403 - 1, and 16.403 - 2 hasbeen amended to delete the requirement. Section 1501 The FAR Council is interested in an exchangeHowever, the FAR Council has not scheduled a publicmeeting on this rule (FAR case 94 - 700) because ofmeeting and outlining the nature of the requestedmeeting shall be submitted to and received by the FARpublic meeting on this rule should be scheduled. B. Regulatory Flexibility Act This interim rule is not expected to haveof small entities within the meani

19 ng of theFlexibility Analysis has, there
ng of theFlexibility Analysis has, therefore, not beenperformed. Comments from small entities concerning(FAC 90 - 24, FAR case 94 - 700) in correspondence. C. Paperwork Reduction Act 18a because the changes to the FAR do not imposerecordkeeping or information collection requirements,or collection of information from offerors, D. Determination To Issue an Interim Rule A determination has been made under theAdministrator of the National Aeronautics and SpaceAdministration (NASA) that, pursuant to 41 U.S.C.Acquisition Streamling Act provided that sections1021, 1071, and 1501 are effective upon enactment.Sections 1021 and 1071 of the Federal AcquisitionStreamlining Act of 1994 (Pub. L. 103 - 355) which List of Subjects in 48 CFR Parts 7, 11, 16, and 19 Government procurement. Dated: December 8, 1994. Edward Loeb, Deputy Project Manager for the Implementation of the Therefor

20 e, 48 CFR Parts 7, 11, 16, and 19 are
e, 48 CFR Parts 7, 11, 16, and 19 are 1. The authority citation for 48 CFR Parts 7,11, 16, and 19 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 7 -- ACQUISITION PLANNING 7.102 [Amended] 2. Section 7.102 is amended by removing fromthe second parenthetical ``10 U.S.C. 2301(a)(5)and''. * * * * * 19a PRODUCTS 11.002 Policy. 3. Section 11.002 is amended by removing the PART 16 -- TYPES OF CONTRACTS 16.301 - 3 [Amended] 4. Section 16.301 - 3 is amended by removingfrom the end of paragraph (b) ``and'' and insertinga period in its place; and by removing paragraph (c)and redesignating paragraph (d) as (c). 16.403 [Amended] 5. Section 16.403 is amended by removing 16.403 - 1 and 16.403 - 2 [Amended] 6. Sections 16.403 - 1 and 16.403 - 2 area period; and by removing paragraph

21 (c)(3). PART 19 -- SMALL BUSINESS AND S
(c)(3). PART 19 -- SMALL BUSINESS AND SMALL DISADVANTAGEDBUSINESS CONCERNS 19.000 [Amended] 7. Section 19.000 is amended in theinserting ``(10 U.S.C. 2302, et seq.)''. [FR Doc. 94 - 30604 Filed 12 - 13 - 94; 10:44 am] BILLING CODE 6820 - 34 - P DEPARTMENT OF DEFENSE GENERAL SERVICES ADMINISTRATION NATIONAL AERONAUTICS AND SPACE ADMINISTRATION 48 CFR Parts 1, 3, 4, 13 and 25 20a RIN 9000 - AG26 Federal Acquisition Regulation; Micro-PurchaseProcedures AGENCIES: Department of Defense (DOD), General ACTION: Interim rule with request for comment. SUMMARY: The Department of Defense, General Servicesto implement the new micro-purchase requirements ofthe Federal Acquisition Streamlining Act of 1994 (the DATES: Effective Date: December 15, 1994. Comment Date: Comments should be submitted tobefore February 13, 1995 to be considered in theformulation of a final rule. ADDRESSES: Interest

22 ed parties should submit writtenSecretar
ed parties should submit writtenSecretariat (VRS), 18th & F Streets, NW, Room 4035,Attn: Ms. Beverly Fayson, Washington, DC 20405. Please cite FAC 90 - 24, FAR case 94 - 771 in all FOR FURTHER INFORMATION CONTACT: Ms. Dianainformation, contact the FAR Secretariat, Room 4037,GS Building, Washington, DC 20405 (202) 501 - 4755. SUPPLEMENTARY INFORMATION: A. Background The Act, Pub. L. 103 - 355, provides theminimize burdensome requirements unique to theFederal Government. Major changes that can be 21a Acquisition Procedures, the Truth in NegotiationsAct, and introduction of the Federal AcquisitionComputer Network (FACNET). This notice announces FAR revisions developedthe micro-purchase requirements of Pub. L. 103 - 355.The term ``micro-purchase'' is coined and defined byfrom the Buy American Act and certain small businessrequirements. It is noted that constructionFAR 13.105(a) has been am

23 ended to exemptmicro-purchases from the
ended to exemptmicro-purchases from the requirement for smallacquisitions not exceeding the simplified acquisitionthreshold. For micro-purchases, Pub. L. 103 - 355purchase card to take maximum advantage of themicro-purchase authority provided in Pub. L. 103 -purchased. Your attention is directed to theprovisions at FAR 13.601(d) which indicates that suchunder delegations of procurement authority inaccordance with agency procedures. The FAR Council is interested in an exchangeimplementation of the Act. For that reason, the FARCouncil is conducting a series of public meetings.rule. If the public believes such a meeting is neededwith respect to this rule, a letter requesting aon or before January 17, 1995. The FAR Council willconsider such requests in determining whether a 22a The changes may have a significant economicimpact on a substantial number of small entitiesbusiness setaside for pur

24 chases not exceeding themicro-purchase t
chases not exceeding themicro-purchase threshold. However, fullnot exceeding the simplified acquisition threshold,$100,000, be set aside for small businesses. ThisAnalysis (IRFA) has been prepared and will beprovided to the Chief Counsel for Advocacy for theaffected FAR subpart will be considered in accordancewith 5 U.S.C. 610. Such comments must be submitted C. Paperwork Reduction Act The Paperwork Reduction Act does not applyor collection of information from offerors,contractors, or members of the public which require D. Determination To Issue an Interim Rule A determination has been made under theAdministration (NASA) that compelling reasons existto promulgate this interim rule without priorthe micro- purchase portion of the Act within 60 daysof enactment. However, pursuant to Public Law 98 - List of Subjects in 48 CFR Parts 1, 3, 4, 13 and 25 Government procurement. 23a Ed

25 ward Loeb, Deputy Project Manager for t
ward Loeb, Deputy Project Manager for the Implementation of theFederal Acquisition Streamlining Act of 1994. Therefore, 48 CFR Parts 1, 3, 4, 13 and 25 1. The authority citation for 48 CFR Parts 1,3, 4, 13 and 25 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 1 -- FEDERAL ACQUISITION REGULATIONS SYSTEM 2. Section 1.603 - 3 is revised to read as 1.603 - 3 Appointment. Contracting officers whose authority will beprocedures. Other contracting officers shall beappointed in writing on a ``Certificate ofregulation. Appointing officials shall maintain filescontaining copies of all Certificates of Appointment PART 3 -- IMPROPER BUSINESS PRACTICES AND PERSONALCONFLICTS OF INTEREST 3. Section 3.104 - 4 is amended by addingparagraph (h)(5) to read as follows: 3.104 - 4 Definitions. * * * * *

26 (h) * * * (5) For purpo
(h) * * * (5) For purposes of 3.104 - 4(h) the termhead of the contracting activity determines that itis unlikely that the individual will conduct 24a PART 4 -- ADMINISTRATIVE MATTERS 4.800 [Amended] 4. Section 4.800 is amended by revising thereference ``13.106(c)'' to ``13.106(b)''. PART 13 -- SMALL PURCHASE AND OTHER SIMPLIFIED 5. Section 13.101 is amended by adding the 13.101 Definitions. * * * * * Governmentwide commercial purchase card meansa purchase card, similar in nature to a commercialcredit card, issued to authorized agency officials Micro-purchase means an acquisition ofsupplies or services (except construction), theaggregate amount of which does not exceed $2,500. Micro-purchase threshold means $2,500. * * * * * 6. Section 13.105 is amended by revisingparagraph (a); in (d)(3) by removing ``(see13.106(c))'' and inserti

27 ng ``(see 13.106(b))'' in its 13.105 S
ng ``(see 13.106(b))'' in its 13.105 Small business -- small purchase set-asides. (a) Except as provided in paragraphs (b),(c), and (d) of this section, each acquisition ofsupplies or services that has an anticipated dollarThis shall be accomplished by using the category ofset-asides established by Pub. L. 95 - 507, 25a 644(j)) (see Pub. L. 95 - 507). * * * * * 13.106 [Amended] 6. Section 13.106 is amended by removing 13.502 [Amended] 7. Section 13.502(c) is amended in the last 8. Part 13 is amended by adding Subpart 13.6 Subpart 13.6 -- Micro-Purchase Sec. 13.601 General. 13.602 Policy. 13.603 Soliciting competition, evaluation of quotes, Subpart 13.6 -- Micro-Purchase 13.601 General. (a) This subpart applies to purchases ofbelow the micro-purchase threshold. Micro-purchasesfor construction are limited to $2,000. (b) Micro-purchases may b

28 e awarded using any (c) Agencies
e awarded using any (c) Agencies are encouraged to use thepurchase card may be used to purchase and pay formicro-purchases in accordance with agency procedures. (d) Agency heads are encouraged to delegate 26a contracting officers within the meaning of 2.101. See3.104 - 4(h)(5) for procurement integrityrequirements. 13.602 Policy. (a) Contracting officers shall comply with (b) Micro-purchases shall be distributedequitably among qualified suppliers. (c) Requirements aggregating more than themicro-purchase threshold shall not be broken downthreshold merely to permit purchase under thissubpart. 13.603 Soliciting competition, evaluation of (a) Micro-purchases may be awarded without (b) The administrative cost of verifying thereasonableness need only be taken if -- (1) The contracting officer suspects or hasinformation to indicate that th

29 e price may not bepaid or personal knowl
e price may not bepaid or personal knowledge of the supply or service);or (2) Purchasing a supply or service for whichavailable (e.g., a supply or service that is not thesame as, or is not similar to, other supplies or (c) Prompt payment discounts should be PART 25 -- FOREIGN ACQUISITION 9. Section 25.100 is revised to read as 25.100 Scope of subpart. 27a (41 U.S.C. 10) and Executive Order 10582, December17, 1954 (as amended). It applies to (a) supplycontract exceeds the micro-purchase threshold. [FR Doc. 94 - 30605 Filed 12 - 13 - 94; 10:45 am] 28a GENERAL SERVICES ADMINISTRATION NATIONAL AERONAUTICS AND SPACE ADMINISTRATION 48 CFR Part 31 [FAR Case 94 - 753] RIN 9000 - AG27 Federal Acquisition Regulation; Travel Costs AGENCIES: Department of Defense (DOD), GeneralServices Administration (GSA), and National ACTION: Proposed rule. SUMMARY: This proposed rule is issued pursuan

30 t to theLaw 103 - 355 (the Act). The Fed
t to theLaw 103 - 355 (the Act). The Federal AcquisitionRegulatory Council is considering amending theManagement and Budget review under Executive Order12866, dated September 30, 1993. DATES: Comments should be submitted on or beforeformulation of a final rule. comments to: General Services Administration, Please cite FAR case 94 - 753 in allcorrespondence related to this case. FOR FURTHER INFORMATION CONTACT: Mr. Clarence Belton SUPPLEMENTARY INFORMATION: A. Background The Federal Acquisition Streamlining Act of 29a process as a result of Federal AcquisitionStreamlining Act implementation include changes inthe areas of Commercial Item Acquisition, Simplifiedbenefits of the provisions of the Act, the Governmentis issuing implementing regulations on an expeditedregulations. This notice announces FAR revisions developedunder FAR case 94 - 753. The recommended revisions toa result o

31 f Section 2191 of the Federal Acquisitio
f Section 2191 of the Federal AcquisitionStreamlining Act of 1994, which repealed Section 24personnel for travel be considered reasonable andallowable only to the extent that they did not exceed Simply returning to the prior standard ofexcessive costs. However, it is recognized thatindustry has valid concerns regarding travel costs, Accordingly, it is recommended that theto propose alternative rates to those prescribed inthe FTR/JTR. The FAR Council is interested in an exchangeimplementation of the Act. For that reason, the FARCouncil is conducting a series of public meetings.to this rule, a letter requesting a public meetingand outlining the nature of the requested meeting 30a January 13, 1995. The FAR Council will consider such requests B. Regulatory Flexibility Act This proposed rule is not expected to have aRegulatory Flexibility Act, 5 U.S.C. 601, et seq.,becau

32 se most contracts awarded to small busin
se most contracts awarded to small businessesaccordingly, no Initial Regulatory FlexibilityAnalysis has been performed. Comments from smallshould cite 5 U.S.C. 601, et seq. (FAR case 94 -753), in correspondence. C. Paperwork Reduction Act The Paperwork Reduction Act does not applythe approval of the Office of Management and Budgetunder 44 U.S.C. 3501, et seq. List of Subjects in 48 CFR Part 31 Government procurement. Dated: December 8, 1994. Capt. Barry L. Cohen, SC, USN, Project Manager for the Implementation of the Federal Therefore, it is proposed that 48 CFR part 31be amended as set forth below: PART 31 -- CONTRACT COST PRINCIPLES AND PROCEDURES 1. The authority citation for 48 CFR part 31 Authority: 40 U.S.C. 486(c); 10 U.S.C.chapter 137; and 42 U.S.C. 2473(c). 31a introductory text of paragraph (a)(2) by removing``paragraph (a)(3)'' and inserting in

33 its place 31.205 - 46 Travel costs.
its place 31.205 - 46 Travel costs. (a) * * * (7) Contractors may propose an alternativeset of maximum per diem rates to replace the ratesprescribed by subparagraph (a)(2) of this subsection.contractor's normal travel cost reimbursement system,and do not exceed amounts normally paid under that * * * * * [FR Doc. 94 - 30698 Filed 12 - 13 - 94; 8:45 am] BILLING CODE 6820 - 34 - D 32a32a 33a GENERAL SERVICES ADMINISTRATION NATIONAL AERONAUTICS AND SPACE ADMINISTRATION 48 CFR Part 31 [FAC 90 - 25, FAR Case 94 - 750] RIN 9000 - AG33 Federal Acquisition Regulation; Entertainment, Gift,and Recreation Costs for Contractor Employees AGENCIES: Department of Defense (DOD), GeneralServices Administration (GSA), and NationalAeronautics and Space Administration (NASA). ACTION: Interim rule with request for comment. SUMMARY: This interim rule amends the Federalunder Executive Order 12866, dated Sept

34 ember 30,1993. DATES: Effective Date: Ja
ember 30,1993. DATES: Effective Date: January 13, 1995. Comment Date: Comments should be submitted to ADDRESSES: All interested parties should submit Please cite FAC 90 - 25, FAR case 94 - 750 in FOR FURTHER INFORMATION CONTACT: Mr. Clarence M.602 - 2357, in reference to this FAR case. Forgeneral information, contact the FAR Secretariat, SUPPLEMENTARY INFORMATION: A. Background 34a 1994, Pub. L. 103 - 355, provides authorities thatstreamline the acquisition process and minimizeinclude changes in the areas of Commercial ItemAcquisition, Simplified Acquisition Procedures, the This notice announces Federal Acquisition To comply with the requirements of paragraphexpressly unallowable, except for the costs ofemployee sports teams. The allowability of costs forof allowable costs at 31.205 - 13, and``wellness/fitness centers'' are added to thatfurther limited in allowability to r

35 easonable amountsper employee. T
easonable amountsper employee. To comply with the requirements of paragraphrevises the cost principle at 31.205 - 14 toincorporate the statutory wording relating to These revisions specifically disallow gift, Paragraph (c) of Section 2192 of the Actstates that ``[a]ny amendments to the FAR madepursuant to subsection (a) shall apply with respectmade by Section 2151 apply (as provided in Section10001), whichever is later.'' Therefore, this interim 35a the revised cost principles will apply only to costsincurred after all of the proposed rules implementingrequirements of Sections 2101 and 2151 become The FAR Council is interested in an exchangeHowever, the FAR Council has not scheduled a publicmeeting on this rule (FAR case 94 - 750). If theshall be submitted to and received by the FARSecretariat (see ADDRESSES caption) on or before B. Regulatory Flexibility Act The in

36 terim rule is not expected to have aof s
terim rule is not expected to have aof small entities within the meaning of theRegulatory Flexibility Act, 5 U.S.C. 601, et seq.,contracts are based on cost or pricing data. AnInitial Regulatory Flexibility Analysis has,comments must be submitted separately and cite 5U.S.C 601, et seq. (FAR Case 94 - 750), in C. Paperwork Reduction Act The Paperwork Reduction Act does not applycontractors, or members of the public which requirethe approval of OMB under 44 U.S.C. 3501, et seq. D. Determination To Issue an Interim Rule A determination has been made under the 36a to promulgate this interim rule without prioropportunity for public comment. This action isnecessary because Section 2192 of the Federalthe Act and that other FAR revisions addressingcontractor costs of gifts or recreation to improve List of Subjects in 48 CFR Part 31 Government procurement. Dated: January 9, 1995. E

37 dward Loeb, Deputy Project Manager for t
dward Loeb, Deputy Project Manager for the Implementation of theFederal Acquisition Streamlining Act of 1994. Federal Acquisition Circular Number 90 - 25 Federal Acquisition Circular (FAC) 90 - 25 isissued under the authority of the Secretary ofSpace Administration. Unless otherwise specified, all FederalAcquisition Regulation (FAR) and other directiveJanuary 13, 1995. Dated: January 4, 1995. Thomas S. Luedtke, Deputy Associate Administrator for Procurement, NASA. Dated: January 9, 1995. Ida M. Ustad, Associate Administrator, Office of AcquisitionPolicy. Dated: January 8, 1995. Eleanor R. Spector, 37a Therefore, 48 CFR Part 31 is amended as setforth below: PART 31 -- CONTRACT COST PRINCIPLES AND PROCEDURES 1. The authority citation for 48 CFR Part 31 Authority Citation Authority: 40 U.S.C. 486(c); 10 U.S.C. 2. Section 31.205 - 13 is

38 revised to read as 31.205 - 13 Employ
revised to read as 31.205 - 13 Employee morale, health, welfare, food (a) This paragraph (a) applies to costsincurred before the effective date of implementationin FAR of sections 2101 and 2151 of the Federal (1) Aggregate costs incurred on activitiesparagraph (a)(2) of this section, and to the extentthat the net amount is reasonable. Some examples arefacilities for cafeterias, dining rooms, canteens,lunch wagons, vending machines, living (2) Losses from operating food and dormitoryservices or lodging accommodations are furnishedwithout charge or at prices or rates which obviouslycan demonstrate that unusual circumstances exist(e.g., (i) where the contractor must provide food or 38a would be excessive but for the services provided orwhere cessation or reduction of food or dormitoryoperations will not otherwise yield net cost savings)higher than those charged by commercialestabli

39 shments offering the same services in th
shments offering the same services in the same (3) When the contractor has an arrangementprofits shall be treated in the same manner as if thecontractor were providing the service (but see (4) Contributions by the contractor to anemployee organization, including funds from vendingmachine receipts or similar sources, may be includedincurred by the employee organization would beallowable if directly incurred by the contractor. (b) This paragraph (b) implements section1994 (Pub. L. 103 - 355). It applies to costsincurred after the effective date of implementation (1) Aggregate costs incurred on activitiesparagraphs (b)(2), (3), and (4) of this section, andto the extent that the net amount per employee isdormitory services, which include operating orfurnishing facilities for cafeterias, dining rooms,facilities. (2) Costs of gifts are unallowable. 39a except for the cost

40 s of contractor employees'participation
s of contractor employees'participation in sports teams designed to improvecompany loyalty, team work, or employee physical (4) Losses from operating food and dormitorywithout charge or at prices or rates which obviouslywould not be conducive to the accomplishment of the(e.g., (i) where the contractor must provide food ordormitory services at remote locations where adequatewhere cessation or reduction of food or dormitoryoperations will not otherwise yield net cost savings)offering the same services in the same geographicalareas. Costs of food and dormitory services shall (5) When the contractor has an arrangementcontractor were providing the service (but seeparagraph (b)(6) of this section). (6) Contributions by the contractor to anmachine receipts or similar sources, may be includedas costs incurred under paragraph (b)(1) of thisallowable if directly incurred by the contractor.

41 3. Section 31.205 - 14 is revised
3. Section 31.205 - 14 is revised to read asfollows: 31.205 - 14 Entertainment costs. (a) This paragraph (a) applies to costs 40a Acquisition Streamlining Act of 1994 (Pub. L. 103 -355). Costs of amusement, diversion, socialactivities, and any directly associated costs such asCosts of membership in social, dining, or countryclubs or other organizations having the same purposes (b) This paragraph (b) implements section355. Costs of amusement, diversion, socialactivities, and any directly associated costs such asunder this cost principle are not allowable under anyother cost principle. Costs of membership in social,income to the employees. [FR Doc. 95 - 849 Filed 1 - 12 - 95; 8:45 am] The “Why and When ” list at the AAPD Archive identifies why the document has been archived and where current guidance may be found. Internal users may also access the OAA Policy Division webpage to