The Federal Acquisition Regulatory (FAR) Council has published Federal Acquisition Circular (FAC) 2005-45. The document consists of three final rules, all of which take effect on October 1, 2010.

This final rule amends the FAR to adjust the acquisition-related thresholds for inflation.  The adjustment is required every five years, under section 807 of the Ronald W. Reagan National Defense Authorization Act for Fiscal Year 2005 (P.L. 108-375).

Heavily-used thresholds are affected as follows:

·         The micropurchase threshold (FAR 2.101) remains at $3,000;

·         The simplified acquisition threshold is raised from $100,000 to $150,000;

·         The FedBizOpps preaward and post-award notices (FAR part 5) remain at $25,000 per trade agreements;

·         The commercial items test program ceiling (FAR 13.500) is raised from $5,500,000 to $6,500,000;

·         The cost or pricing data threshold is raised from $650,000 to $700,000; and

·         The prime contractor subcontracting plan (FAR 19.702) floor is raised from $550,000 to $650,000, and the construction threshold increases from $1,000,000 to $1,500,000.

The Davis-Bacon Act, Service Contract Act, and trade agreements thresholds are not affected by this rule. A matrix of all affected thresholds is available at http://www.regulations.gov.

Final rule.  Contact: Michael Jackson at (202) 208-4949. 74 Federal Register 53129, August 30, 2010.

This final rule amends the FAR to clarify the terms “cost or pricing data,” “certified cost or pricing data,” and “data other than certified cost or pricing data.” The three similar terms have been used variously throughout the FAR, creating confusion.

Under the final rule, “cost or pricing data” means, in part, all the facts that can be reasonably expected to contribute to the soundness of estimates of future costs and to the validity of determinations of costs already incurred.

“Certified cost or pricing data” means, in part, cost or pricing data that were required to be submitted in accordance with FAR 15.403-4 and 15.403-5, and have been certified, or are required to be certified, in accordance with FAR 15.406-2.

“Data other than certified cost or pricing data” means, in part, pricing data, cost data, and judgmental information necessary for the contracting officer to determine a fair and reasonable price or price realism.

Final rule.  Contact: Edward N. Chambers at (202) 501-3221. 74 Federal Register 53135, August 30, 2010.

This final rule amends the FAR to implement the “Buy American” requirements of the American Recovery and Reinvestment Act of 2009 (P.L. 111-5), located in section 1605 of the legislation. Section 1605 requires that all iron, steel, and manufactured goods used in Recovery Act projects to construct, alter, maintain, or repair a public building or public work must be produced in the United States. Exceptions exist where the head of the awarding department or agency determines that:

Consistent with the legislation, the FAR rule makes clear that there will be full compliance with all international trade agreements.

Final rule. Contact: Cecelia L. Davis at (202) 219-0202. 74 Federal Register 53153, August 30, 2010.