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FAR Alert Notice (FAN)

Issuance of Proposed Rules and Federal Acquisition Circular 2005-83

 This FAR Alert Notice (FAN) provides awareness to the acquisition workforce about upcoming regulatory changes.[1]  This FAN highlights noteworthy proposed and final rules recently published in the released Federal Acquisition Circular (FAC) that impact the acquisition workforce.[2]

[1]This FAR Alert was established by the Office of Federal Procurement Policy (OFPP) in 2012 to help improve agency awareness of regulatory changes.  GSA prepares the FAN for dissemination to the acquisition workforce via the FAI website. Questions about the individual rules should be directed to the analyst in the Federal Register Notice.    

[2] Proposed rules announce future changes being considered to the Code of Federal Regulations (CFR), include proposed regulatory text, and solicit public comments.  Interim rules announce immediate changes to the CFR are effective immediately upon publication, or on a specified date after publication, but may be amended based on public comment.  Final rules make permanent changes to the FAR after considering public comment.  Final rules are effective on a specified date after publication. 

FAC 2005-83 List of Subject                                                                                                                

I. Inflation Adjustment of Acquisition Related Thresholds
II. Prohibition on Contracting with Inverted Domestic Corporations Representation and Notification
III. Update to Product and Service Codes
IV. Clarification on Justification for Urgent Noncompetitive Awards Exceeding One Year
V. Prohibition on Contracting with Inverted Domestic Corporations
VI. Permanent Authority for Use of Simplified Acquisition Procedures for Certain Commercial Items

Proposed Rules

I. Inflation Adjustment of Acquisition-Related Thresholds. (FAR Case 2014-022)

This final rule amends the FAR to implement 41 U.S.C. 1908, which requires an adjustment every five years of acquisition related thresholds for inflation using the Consumer Price Index for all urban consumers, except the Construction Wage Rate Requirements statute (Davis-Bacon Act), Service Contract Labor Standards statute, and trade agreements thresholds (see FAR 1.109).

II. Prohibition on Contracting with Inverted Domestic Corporations—Representation and Notification (FAR Case 2015-006)

This final rule amends the provision and clause of the FAR that address the continuing Government-wide statutory prohibition (in effect since fiscal year 2008) on the award of contracts using appropriated funds to any foreign incorporated entity that is an inverted domestic corporation (under section 835 of the Homeland Security Act of 2002, codified at 6 U.S.C. 395) or to any subsidiary of such entity.

III. Update to Product and Service Codes (FAR Case 2015-008)

DoD, GSA, and NASA are revising the FAR to update the descriptions of the Federal product and service codes to conform to the Federal Procurement Data System Product and Service Codes Manual, August 2011 Edition. There is no change to the groups covered, and the new descriptions better reflect product coverage.

IV. Clarification on Justification for Urgent Noncompetitive Awards Exceeding One Year (FAR Case 2014-020)

DoD, GSA, and NASA are issuing a final rule amending the FAR to clarify when a justification for noncompetitive contracts based on urgency, exceeding one year, is needed. The rule comes as a response to Government Accountability Office (GAO) report GAO-14-304, entitled Federal Contracting: Noncompetitive Contracts Based on Urgency Need Additional Oversight, dated March 2014.

V. Prohibition on Contracting with Inverted Domestic Corporations (FAR Case 2014-017)

This rule converts to a final rule, without change, an interim rule that amended the provisions of the FAR that address the continuing Governmentwide statutory prohibition (in effect since fiscal year 2008) on the award of contracts using appropriated funds to any foreign incorporated entity that is an inverted domestic corporation (under section 835 of the Homeland Security Act of 2002, codified at 6 U.S.C. 395)

VI. Permanent Authority for Use of Simplified Acquisition Procedures for Certain Commercial Items (FAR Case 2015-010)

This is a final rule to amend FAR subparts 13.5 and 18.2 to implement section 815 of the Carl Levin and Howard P. ‘Buck’ McKeon National Defense Authorization Act for Fiscal Year 2015 (Pub. L. 113-291). Section 815 amends section 4202(e) of the Clinger-Cohen Act of 1996 (Divisions D and E of Pub. L. 104–106; 10 U.S.C. 2304 note) to make permanent the test program for special simplified procedures for purchases of commercial items greater than the simplified acquisition threshold, but not exceeding $6.5 million ($12 million for certain acquisitions).

FAC 2005-–83 JULY 2, 2015

FAC 2005-81 (Published on April 10, 2015)

FAR SUBPART 4.6— CONTRACT REPORTING

(A) Task and Delivery Order Contracts (see subpart 16.5), including—
(1) Government-wide acquisition contracts.
(2) Multi-agency contracts.

(B) GSA Federal supply schedules.
(C) Blanket Purchase Agreements (see 13.303).
(D) Basic Ordering Agreements (see 16.703).
(E) Any other agreement or contract against which individual orders or purchases may be placed.

(iii) All calls and orders awarded under the indefinite delivery vehicles identified in paragraph (a)(1)(ii) of this section.
(2) The GSA Office of Charge Card Management will provide the Government purchase card data, at a minimum annually, and GSA will incorporate that data into FPDS for reports.
(3) Agencies may use the FPDS Express Reporting capability for consolidated multiple action reports for a vendor when it would be overly burdensome to report each action individually. When used, Express Reporting should be done at least monthly.
(b) Reporting Other Actions. Agencies may submit actions other than those listed at paragraph (a)(1) of this section only if they are able to be segregated from FAR-based actions and this is approved in writing by the FPDS Program Office. Prior to the commencement of reporting, agencies must contact the
FPDS Program Office if they desire to submit any of the following types of activity:


(1) Transactions at or below the micro-purchase threshold, except as provided in paragraph (a)(2) of this section.
(2) Any non-appropriated fund (NAF) or NAF portion
of a contract action using a mix of appropriated and non-appropriated funding.
(3) Lease and supplemental lease agreements for real property.
(4) Grants and entitlement actions.
(c) Actions not reported. The following types of contract actions are not to be reported to FPDS:
(1) Imprest fund transactions below the micro-purchase threshold, including those made via the Government purchase card (unless specific agency procedures prescribe reporting
these actions).
(2) Orders from GSA stock and the GSA Global Supply Program.

4.607 Solicitation provisions and contract clause.
(a) Insert the provision at 52.204-5, Women-Owned Business (Other Than Small Business), in all solicitations that—

(1) Are not set aside for small business concerns;
(2) Exceed the simplified acquisition threshold; and
(3) Are for contracts that will be performed in the United States or its outlying areas.
(b) Insert the provision at 52.204-6, Data Universal Numbering System Number, in solicitations that do not contain the provision at 52.204-7, System for Award Management, or meet a condition at 4.605(c)(2).
(c) Insert the clause at 52.204-12, Data Universal Numbering System Number Maintenance, in solicitations and resulting contracts that contain the provision at 52.204-6, Data Universal Numbering System.

This FAR Alert was established by the Office of Federal Procurement Policy (OFPP) in 2012 to help improve agency awareness of regulatory changes. GSA prepares the FAN for dissemination to the acquisition workforce via the FAI website. Questions about the individual rules should be directed to the analyst in the Federal Register Notice.
Proposed rules announce future changes being considered to the Code of Federal Regulations (CFR), include proposed regulatory text, and solicit public comments. Interim rules announce immediate changes to the CFR are effective immediately upon publication, or on a specified date after publication, but may be amended based on public comment. Final rules make permanent changes to the FAR after considering public comment. Final rules are effective on a specified date after publication. 

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"In accordance with FAR Subpart 19.7 The Small Business Subcontracting Program". 

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 "In compliance with FAR Part 9 Contractor Qualifications - FAR Part 12 Acquisition Of Commercial Items  - FAR Part 13 Simplified Acquisition Procedures - FAR Part 15 Contracting By Negotiation - FAR Part 16 Types Of Contracts - FAR Part 36 Construction and Architect-Engineer Contracts - FAR Part 46 Quality Assurance (et seq.)"

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