FAC 2005-38 was issued by the FAR Council on December 10. The document consists of seven final rules with three effective dates: December 10, 2009; January 11, 2010; and February 1, 2010.

Item I—Revocation of Executive Order 13201, Notification of Employee Rights Concerning Payment of Union Dues or Fees (FAR Case 2009-017) 

This final rule removes regulations that implemented Executive Order 13201 (February 17, 2001), which was revoked on January 30, 2009. E.O. 13201 required contractors to post a notice informing employees of their rights concerning payment of union dues or fees, and provided that employees could not be required to join unions or maintain membership in unions to retain their jobs. The final rule deletes FAR Subpart 22.16 and clause 52.222-39, Notification of Employee Rights Concerning Payment of Union Dues or Fees, from the FAR. 

Effective date: December 10, 2009 

FAR parts amended: 2.101, 22.16, 52.212, 52.213, 52.222, and 52.244 

Final rule. Contact: Rhonda Cundiff at (202) 501-0044. 74 Federal Register 65599, December 10, 2009. 

Item II—Governmentwide Commercial Purchase Card Restrictions for Treasury Offset Program Debts (FAR Case 2006-026) 

This final rule restricts the use of the governmentwide commercial purchase card as a method of payment for offerors with debt subject to the Treasury Offset Program. Under the Treasury Offset Program, the Financial Management Service collects funds from federal payments to satisfy a person’s overdue federal debt. Offsets cannot be collected on payments made with the purchase card.  The rule requires contracting officers to determine, through the Central Contractor Registry (CCR) , whether the contractor has delinquent debt that is subject to collection under the Treasury Offset Program. If a debt indicator is found, a purchase card cannot be used to pay the contractor. 

Effective date: February 1, 2010 

FAR parts amended: 4.1103, 8.402, 8.405, 13.003, 13.201, 13.301, 16.505, 32.1108, 32.1110, 52.212, and 52.232 

Final rule. Contact: Michael Jackson at (202) 208-4949. 74 Federal Register 65600, December 10, 2009. 

Item III—Internet Protocol Version 6 (IPv6) (FAR Case 2005-041) 

This final rule requires that all new IT acquisitions that use Internet Protocol (IP) technology must support Internet Protocol Version 6 (IPv6). OMB Memorandum M-05-22, published on August 2, 2005, requires all new IT procurements to include IPv6-capable products and standards to the maximum extent practicable. 

Effective date: December 10, 2009 

FAR parts amended: 7.105, 11.002, 12.202, and 39.101 

Final rule. Contact: Ernest Woodson at (202) 501-3775. 74 Federal Register 65605, December 10, 2009. 

Item IV—Federal Food Donation Act of 2008 (Pub. L. 110-247) (FAR Case 2008-017) 

This final rule requires federal contracts valued above $25,000 for the provision, service, or sale of food in the United States to include a clause that encourages (but does not require) the donation of excess food to nonprofit organizations serving those in need. The rule is expected to apply primarily to fixed-price commercial services contracts; however, it is possible that noncommercial and/or cost-reimbursement contracts will also be subject to the rule at times. The rule finalizes, without change, an interim rule published on March 19, 2009 (74 FR 11829). 

Effective date: December 10, 2009 

FAR parts amended: None 

Final rule. Contact: Michael Jackson at (202) 208-4949. 74 Federal Register 65607, December 10, 2009. 

Item V—Postretirement Benefits (PRB), FAS 106 (FAR Case 2006-021) 

This final rule allows contractors to measure accrued postretirement benefit (PRB) costs using either the criteria in Internal Revenue Code (IRC) 419 or the criteria in Financial Accounting Standard (FAS) 106. FAR 31.205-6(o) gives contractors the choice of three different accounting methods to calculate PRB costs: pay-as-you-go (cash basis), terminal funding, and accrual basis. The FAR previously required that when accrual basis is used, costs must be measured based on FAS 106. However, the tax-deductible amount that is contributed to the retiree benefit trust is determined using IRC sections 419 and 419a, which have different measurement criteria that FAR 106. As a result, the FAS 106 amount often exceeded the costs measured under IRC sections 419 and 419a. FAR 31.205-6(o) has been amended to allow contractors to use either measurement criteria. 

Effective date: January 11, 2010 

FAR parts amended: 31.001 and 31.205 

Final rule. Contact: Edward Chambers at (202) 501-3221. 74 Federal Register 65608, December 10, 2009. 

Item VI—Travel Costs (FAR Case 2006-024) 

This final rule limits reimbursement of allowable contractor air travel costs to the lowest priced airfare available to the contractor. The previous language, at FAR 31.205-46(b), limited contractor airfare costs to “the lowest customary standard, coach, or equivalent airfare offered during normal business hours,” resulting in widespread confusion as to whether that meant “the lowest coach fare available to the contractor” or “the lowest coach fare available to the general public.” Contractors sometimes negotiate with airlines to obtain airfares at lower rates than the general public receives. The new language does not specify an allowable “type” of airfare, such as “coach, or equivalent,” because there may be cases where a “coach, or equivalent” fare is not the lowest airfare available to contractors. 

Effective date: January 11, 2010 

FAR parts amended: 31.205-46 

Final rule. Contact: Edward Chambers at (202) 501-3221. 74 Federal Register 65612, December 10, 2009. Item VII—Technical Amendments This final rule makes technical amendments to the FAR. 

Effective date: December 10, 2009 

FAR parts amended: 6.302, 8.703, 15.305, 52.209, and 52.212. 

Final rule. Contact: The Regulatory Secretariat at (202) 501-4755. 74 Federal Register 65614, December 10, 2009.