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News, Trends, and Reports News 3 FACs in 1 month
News, Trends, and Reports News 3 FACs in 1 month
3 FACs in 1 month
| News, Trends, & Reports - News |
The FAR Council released a quick slew of acquistion changes, in the form of three Circulars (FACs 2005-39, 2005-40, and 2005-41). The FACs address a range of areas, from creation of a comprehensive contracting database to the use of project labor agreements. Read more for a full recap of the regulatory changes.
FAC 2005-39 issued Federal Acquisition Circular (FAC) 2005-39 was published by the FAR Council on March 19. The document consists of the following seven items with separate effective dates of March 19 and April 19. Item I: Extends the commercial items test program detailed in FAR Subpart 13.5 for two more years, to January 1, 2012. (75 Federal Register 13413, effective March 19, 2010). Item II: Aligns the threshold for cost or pricing data on non-commercial modifications of commercial items with the Truth in Negotiations Act (TINA) threshold for cost or pricing data. The rule is a requirement of Section 814 of the National Defense Authorization Act for Fiscal Year 2008. (75 Federal Register 13414, effective March 19, 2010). Item III: Amends FAR Subparts 15.5 and 53.2 to clarify that block 18 of Standard Form 26, Award/Contract, should not be used to award a negotiated procurement. (75 Federal Register 13415, effective April 19, 2010). Item IV: Amends the FAR to enhance competition on task- and delivery-order contracts, in accordance with Section 843 of the National Defense Authorization Act for Fiscal Year 2008. The rule finalizes, with changes, an interim rule issued on September 17, 2008 (73 FR 54008). The final rule: (1) amends FAR 16.503(a) to clarify that a requirements contract is awarded to one contractor; (2) adds language at FAR 16.504(c)(i)(ii)(D)(3)(i) to read that the requirement for a determination for a single-award IDIQ contract greater than $100 million is in addition to any applicable requirements of FAR Subpart 6.3; and (3) clarifies that the requirement for agency-head determination on single-award task- and deliver-order contracts valued greater than $100 million does not apply to architect-engineer task- or delivery-order contracts. (75 Federal Register 13416, effective April 19, 2010). Item V: Finalizes, without change, a June 15, 2009 interim rule (74 FR 38426) exempting purchase of goods and services from Costa Rica, Oman, and Peru from the Buy American Act, if the acquisition is subject to applicable trade agreements. (75 Federal Register 13421, effective March 19, 2010). Item VI: Allows contracting officers to withhold up to 10 percent of the payment due in any billing period under fixed-price architect-engineer contracts, if they determine that the withholding is necessary to protect the government’s interest and ensure satisfactory completion of the contract. Previously, contracting officers were required to withhold 10 percent on all payments; now they may choose the amount (up to 10 percent) and the billing period—or provide full payment if the contractor’s performance is satisfactory. (75 Federal Register 13422, effective April 19, 2010). Item VII: Makes a minor editorial change at FAR 14.202-4(a)(3). (75 Federal Register 13425, effective March 19, 2010). FAC 2005-40 issued FAC 2005-40 was published by the FAR Council on March 23 (75 Federal Register 14059). The document consists of just one final rule, effective April 22, 2010. The rule amends the FAR to implement the Federal Awardee Performance and Integrity Information System (FAPIIS), a new database designed to provide a comprehensive portrait of a prospective contractor’s business ethics and quality of work. The database collects information on past performance, suspension and debarment, determinations of non-responsibility, contract terminations, and prior criminal, civil, and administrative proceedings. The rule requires contracting officer to review the information in FAPIIS in awarding contracts valued above the simplified acquisition threshold and document how the information in FAPIIS was used to make a responsibility determination. If FAPIIS indicates a suspension or debarment action has occurred, the contracting officer must contact the agency official responsible for initiating the action before proceeding with the award. Contracting officers must give offerors the opportunity to defend their responsibility before making a non-responsibility determination, if the non-responsibility determination is based on criminal, civil, or administrative proceedings in connection with the award of a government contract, terminations for default or cause, or a record of poor performance. Vendors submitting a proposal on a federal contract valued over $500,000 and having more than $10 million in active contracts and grants at the time of proposal submission, must report in FAPIIS information pertaining to criminal, civil, and administrative proceedings through which a requisite determination of fault was made. FAC 2005-41 issued FAC 2005-41 was published by the FAR Council on April 13 (75 Federal Register 19168). The document consists of just one final rule, effective May 13, 2010. The rule encourages the use of project labor agreements for large-scale federal construction projects, in accordance with Executive Order 13502, issued by the President on February 11, 2009. The final rule establishes a new FAR Subpart 22.5, Use of Project Labor Agreements for Federal Construction Projects, and two new solicitation provisions at FAR 52.222-33 and 52.222-34. The term “project labor agreement” means a pre-hire collective bargaining agreement with one or more labor organizations that establishes the terms and conditions of employment for a specific construction project. The final rule is intended to maximize an agency’s ability to identify and successfully use project labor agreements when doing so promotes economy and efficiency. The rule encourages agency planners to consider use of project labor agreements during the acquisition planning stage of an acquisition. An agency may specify in the solicitation the terms and conditions of the project labor agreement and require the successful offeror to adopt the project labor agreement as a condition of receiving a contract award.
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