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2019 Procurement Review--Statutes, Regulations, Executive Orders



                           


Contents

                           

    Statutes   

Consolidated Appropriations Act, 2019

Executive Orders and Related Publications

    

Regulations

Federal Acquisition Regulation (FAR)

     Federal Acquisition Circulars (FAC)  

FAC 2019-02

FAC 2019-02  included the following two items plus technical amendments:

FAR Case 2017-009: A final rule amended the FAR to implement sections of the National Defense Authorization Act (NDAA) for FY 2017 to expand special emergency procurement authorities for acquisitions of supplies or services that (i) facilitate defense against or recovery from cyber attack, (ii) provide international disaster assistance under the Foreign Assistance Act of 1961, or (iii) support the response to an emergency or major disaster under the Robert T. Stafford Disaster Relief and Emergency Assistance Act

FAR Case 2018-015: A final rule amended the FAR to implement a section of the John S. McCain NDAA for FY 2019 that removes the requirement to make a best procurement approach determination to use an interagency acquisition.

Numerous technical and editorial changes to the FAR also were published.

FAC 2019-03

FAC 2019-03  included the following item:

FAR Case 2017-006: A final rule, inter alia, amended FAR 15.403-1 to state that the current exception to the requirement to submit certified cost or pricing data when there was an expectation of competition but only one offer was received will thenceforth apply only to agencies other than DoD, NASA, and the Coast Guard.

FAC 2019-04

FAC 2019-04 included the following item:

FAR Case 2017-020: A final rule amended the FAR to implement a new clause for use in multiple-award indefinite-delivery indefinite-quantity contracts that provides information on the task-order and delivery-order ombudsman.

FAC 2019-05

FAC 2019-05  included the following item:

FAR Case 2018-017: An interim rule amended the FAR to implement section 889(a)(1)(A) of the the NDAA for FY 2019, which prohibits agencies from, inter alia, procuring or obtaining, or extending or renewing a contract to procure or obtain, any equipment, system, or service that uses telecommunications equipment or services produced by Huawei Technologies Company or ZTE Corporation (or any subsidiary or affiliate of such entities) as a substantial or essential component of any system, or as a critical technology as part of any system.  

FAC 2019-06  

FAC 2019-06  included the following four items:

FAR Case 2018-010: A final rule adopted, without change, the prior interim rule implementing section 1634 of Division A of the National Defense Authorization Act (NDAA) for FY 2018, which prohibits the use of products or services of Kaspersky Lab and its related entities.

FAR Case 2019-006: A final rule amended the FAR to revise the definition of "affiliates" in FAR 19.101 and to remove an obsolete requirement that 8(a) contractors obtain written approval from the SBA and the contracting officer before subcontracting the performance of any contract requirements.

FAR Case 2019-005: A final rule amended the FAR to implement changes regarding the retirement of the Past Performance Information Retrieval System and establishment of the Contractor Performance Assessment Reporting System as the official system for past performance information.

FAR Case 2019-011: A final rule amended the FAR to add Australia as a World Trade Organization Government Procurement Agreement (WTO GPA) country.  

FAC 2020-01  

FAC 2020-01 included the following item:

FAR Case 2018-008: Effective November 12, a final rule amends FAR 2.101 to revise the definition of "commercial item" by adding the phrase "or to multiple foreign governments," i.e.: "(8) A nondevelopmental item, if the procuring agency determines the item was developed exclusively at private expense and sold in substantial quantities, on a competitive basis, to multiple State and local governments or to multiple foreign governments."  

FAC 2020-02  

FAC 2020-02 included the following item:

FAR Case 2013-002: A final rule amended the FAR (in part by adding a new contract clause entitled "Reporting Nonconforming Items" at FAR 52.246-26) to require contractors and subcontractors to report to the Government-Industry Data Exchange.

FAC 2020-03 

FAC 2020-03 included the following item:

FAR Case 2018-017: An interim rule (the second on this subject-) amended the FAR to implement section 889(a)(1)(A) of the John S. McCain NDAA for FY 2019 by requiring offerors to represent annually whether they offer to the Government equipment, systems, or services that include certain covered telecommunications equipment or services manufactured by certain companies, e.g., Huawei Technologies Company or ZTE Corporation (or any subsidiary or affiliate of such entities) 

  

      Other Proposed FAR Revisions

FAR Case 2018-008: In order to comply with section 847 of the NDAA for FY 2018, a proposed rule would amend the definition of "commercial item" at FAR 2.101 to expand the universe of nondevelopmental items (NDIs) that qualify as commercial items by including items sold in substantial quantities on a competitive basis to multiple foreign governments.

FAR Case 2018-007: A proposed rule would amend the FAR to implement a section of the NDAA for FY 2018 to make inflation adjustments of statutory acquisition-related thresholds applicable to existing contracts and subcontracts in effect on the date of the adjustment that contain the revised clauses proposed in this rule.

FAR Case 2018-003: A proposed rule would amend the FAR to implement section 1614 of the National Defense Authorization Act (NDAA) for FY 2014, as implemented by the SBA, inter alia, to state that, where a prime contractor has an individual subcontracting plan for a contract with a single executive agency, the prime contractor shall receive credit towards its subcontracting goals for awards made to small business concerns at any tier by subcontractors with individual subcontracting plans.

FAR Case 2016-002: A proposed rule would amend the FAR to be consistent with SBA’s the regulatory changes, which clarify that small business contracting provisions, e.g., set-asides, may apply to contracts performed overseas.

FAR Case 2018-022: A proposed rule would amend the FAR to  permit the issuance of task or delivery orders by fax or electronic commerce and to clarify when an order is considered to be issued if one of these methods is used. 

FAR Case 2016-013: A proposed rule would amend the FAR to withhold a 2 percent tax on contract payments made by the Government to foreign persons pursuant to certain federal government contracts for goods or services that are awarded to foreign persons.

FAR Case 2018-023: A proposed rule would amend the FAR to add two new clauses that notify contractors of requirements relating to Afghanistan taxes or similar charges when contracts are being performed in Afghanistan.  

FAR Case 2015-002: A proposed rule would amend the FAR to require electronic submission of DD Form  254, Contract Security Classification Specification.

FAR Case 2018-021: A proposed rule would amend the FAR to implement the United States Code section that prohibits the award of certain federal contracts to institutions of higher education that prohibit ROTC units or military recruiting on campus. 

FAR Case 2018-005: A proposed rule would amend the FAR to to implement section 811 of the National Defense Authorization Act ("NDAA") for FY 2018 to increase the threshold for requesting certified cost or pricing data from $750,000 to $2 million for contracts entered into after June 30, 2018. In the case of a change or modification made to a prime contract that was entered into before July 1, 2018, the threshold for obtaining certified cost or pricing data would remain $750,000, with the following exception. Upon the request of a contractor that was required to submit certified cost or pricing data in connection with a prime contract entered into before July 1, 2018, the Contracting Officer shall modify the contract without requiring consideration to reflect a $2 million threshold for obtaining certified cost or pricing data from subcontractors. Similarly for sealed bidding, upon request by a contractor, the Contracting Officer shall modify the contract without requiring consideration to replace the relevant clause.

FAR Case 2018-004: A proposed rule would amend the FAR to to implement a section of the NDAA for FY 2017 and several sections of the NDAA for FY 2018 that increase the micro-purchase threshold (MPT), increase the simplified acquisition threshold (SAT), and clarify certain procurement terms, as well as align some non-statutory thresholds with the MPT and SAT. 

FAR Case 2018-016: A proposed rule would amend the FAR to implement a section of the John S. McCain National Defense Authorization Act for FY 2019, which (i) specifies the criteria that must be met in order to include lowest price technically acceptable (LPTA) source selection criteria in a solicitation, and (ii) requires procurements predominantly for the acquisition of certain services and supplies to avoid the use of LPTA source selection criteria, to the maximum extent practicable.

FAR Case 2019-002: A proposed rule would amend the FAR to implement a DOL rule that exempts certain contracts for seasonal recreational services or seasonal recreational equipment rental for the general public on federal lands from an Executive Order minimum wage.  


Department of Defense FAR Supplement (DFARS)

DoD issued an updated Charter of the ASBCA, which implemented changes to the ASBCA's internal administration to better support the Board’s mission.

Final Rules

DFARS Case 2018-D021: A final rule amended the DFARS to implement sections of the National Defense Authorization Act (NDAA) for FY 2018, which expand the definition of "competitive procedures" in 10 U.S.C. 2302 and extend the term (and increase the dollar value) under the contract authority for advanced development of initial or additional prototype units.

DFARS Case 2017-D034: A final rule amended the DFARS to implement the requirement for contractors to complete Level I antiterrorism awareness training.

DFARS Case 2018-D011: A final rule amended the DFARS to implement a section of the NDAA for FY 2018 that provides an exemption from design-build selection procedures for contracts that exceed $4 million.

DFARS Case 2018-D072: A final rule amended the DFARS to implement section 881 of the NDAA for FY 2019 (Pub. L. 115–232), which codifies the authority for information relating to supply chain risk at 10 U.S.C. 2339a and repeals the sunset date at sections 806(g) of the NDAA for FY 2011 (Pub. L. 111–383), as modified by section 806(a) of the NDAA for FY 2013 (Pub. L. 112–239), making the authority permanent.

DFARS Case 2018-D028: A final rule amended the DFARS to modify DFARS clause 252.247–7023 ("Transportation of Supplies by Sea") to include the instructions currently specified in DFARS clause 252.247–7024 ("Notification of Supplies by Sea") and then remove the latter clause from the DFARS

DFARS Case 2017-D014: A final rule amended the DFARS to implement a section of the NDAA for FY 2017 by encouraging offerors to propose commercial or non-government standards and industry-wide practices that meet the intent of military or government-unique specifications and standards.

DFARS Case 2018-D065: A final rule amended the DFARS to implement a section of the National Defense Authorization Act (NDAA) FY 2019 to require, for DoD contracts with contractors that have approved purchasing systems, that a contracting officer have written approval from the program manager prior to withholding a consent to subcontract.

DFARS Case 2018-D051: A final rule amended the DFARS to add department phone numbers and websites to the DFARS clause, 252.226– 7001, Utilization of Indian Organizations, Indian-Owned Economic Enterprises, and Native Hawaiian Small Business Concerns.

DFARS Case 2018-D059: A final rule amended the DFARS to implement section 812 of the NDAA for FY 2019 by removing the clarification of the terms "general public" and "nongovernmental entities" at DFARS 202.101 as obsolete.

DFARS Case 2018-D076: A final rule amended the DFARS to make clarifications and updates associated with determinations to award task- or delivery-order contracts estimated to exceed $112 million to a single source, e.g., to clarify that the Congressional notification required at FAR 16.504(c)(1)(ii)(D)(2) does not apply to DoD acquisitions.

DFARS Case 2019-D006: A final rule amended the DFARS to remove DFARS 252.204–7005 ("Oral Attestation of Security Responsibilities") and the associated clause prescription at DFARS 204.404– 70 because they are no longer necessary.

DFARS Case 2018-D012: A final rule amended the DFARS to implement sections of the National Defense Authorization Act (NDAA) for FY 2017 and 2018 to permit expedited closeout of certain contracts entered into on a date that is at least 17 fiscal years before the current fiscal year.

DFARS Case 2018-D057: A final rule amended the DFARS to implement section 2804 of the NDAA for FY 2019, which (i) increases to $1 million the threshold for small business set-asides of acquisitions for architect-engineer services, including construction design, in connection with military construction projects or military family housing projects; and (ii) removes the prohibition on setting aside these acquisitions valued above the threshold.

DFARS Case 2015-D035: A final rule amended the DFARS to expand the prescription for using the FAR "Government Property" clause (52.245-1).

DFARS Case 2018-D023: A final rule amended the DFARS to implement a section of the National Defense Authorization Act (NDAA)  for FY 2018 to require that inflation adjustments of statutory acquisition-related thresholds under 41 U.S.C. 1908 apply to existing contracts and subcontracts that are in effect on the date of the adjustment and that contain the adjusted clauses.

DFARS Case 2017-D040: A final rule amended the DFARS to implement a section of the NDAA for FY 2017, which requires a justification and approval for the use of brand name or equal descriptions, or proprietary specifications or standards, in solicitations.

DFARS Case 2018-D020: A final rule adopted, without change, an interim rule amending the DFARS  to implement sections of the NDAAs for FY 2017 and 2018: (i) to impose additional prohibitions with regard to acquisition of certain foreign commercial satellite services, such as cybersecurity risk and source of satellites and launch vehicles used to provide the foreign commercial satellite services and to expand the definition of "covered foreign country" to include Russia; and (ii) to prohibit the purchase of items originating in China that meet the definition of goods and services controlled as munitions items when moved to the Commerce Control List of the Export Administration Regulations of the Department of Commerce.

DFARS Case 2019-D026: A final rule amended the DFARS to remove DFARS clause 252.247–7012 ("Ordering Limitation") and the associated prescription at DFARS 247.271–3(g) because the clause is no longer needed in light of FAR coverage.

DFARS Case 2019-D007: A final rule amended the DFARS to remove DFARS clause 252.211–7001 ("Availability of Specifications, Standards, and Data Item Descriptions Not Listed in the Acquisition Streamlining and Standardization Information System (ASSIST), and Plans, Drawings, and Other Pertinent Documents") because the clause is no longer needed.

DFARS Case 2019-D030: A final rule amended the DFARS to make various corrections, specifically to amend DFARS 252.204–7007 ("Annual Representations and Certifications--Alternate A") and the prescription for this provision at DFARS 204.1202.

DFARS Case 2017-D009: A final rule amended the DFARS to partially implement a section of the National Defense Authorization Act (NDAA) for FY 2017 that addresses the requirement for additional cost or pricing data when only one offer is received in response to a competitive solicitation.

DFARS Case 2018-D048: A final rule amended the DFARS to remove DFARS clause 252.247–7001 ("Price Adjustment") and the associated clause prescription at DFARS 247.270–4, as they are no longer necessary in light of other available clauses.

DFARS Case 2019-D020: A final rule amended the DFARS to remove quite a few transportation-related clauses, the requirements of which, if appropriate for specific procurements, more properly belong in solicitation instructions or performance work statements.

DFARS Case 2019-D011: A final rule amended the DoD hotline poster online address included in DFARS 252.203–7004 ("Display of Hotline Posters") and updated the DoD Office of the Inspector General contact information in DFARS 252.203– 7003 ("Agency Office of the Inspector General").

DFARS Case 2019-D032: A finale rule amended the DFARS to add Australia as a new World Trade Organization Government Procurement Agreement  country.

DFARS Case 2018-D016: A final rule amended the DFARS to partially implement section 876 of the National Defense Authorization Act ("NDAA") for FY 2017, which provides a preference for the acquisition of certain commercial services in contracts that exceed the simplified acquisition threshold and contemplates a two-tier approval process, depending on value of the acquisition, if no commercial items are suitable.

DFARS Case 2018-D008: A final rule amended the DFARS to implement section 815 of the NDAA Act for FY 2017 and section 811 of the NDAA for FY 2018 by revising requirements for definitizing undefinitized contract actions.

The DoD issued an updated version of the Charter of the ASBCA, mainly to reflect that board members will, from now on, be appointed by the Secretary of Defense.

DFARS Case 2018-D035: A final rule modified DFARS clause 252.239–7007 ("Cancellation or Termination of Orders") in order to (i) clarify the limitations of the Government’s obligation to reimburse a contractor for nonrecoverable costs when the Government cancels an order for telecommunications services and (ii) incorporate the information included in DFARS 252.239–7008 ("Reuse Arrangements"). Combining these clauses results in 252.239–7008 being removed from the DFARS.

DFARS Case 2018-D045:  A final rule modified DFARS clause 252.239–7004 ("Orders for Facilities and Services") to incorporate the information in DFARS clause 252.239–7005 ("Rates, Charges, and Services"), which is, therefore, removed from the DFARS.

DFARS Case 2019-D017:  A final rule amended the DFARS to identify the government point of contact in DFARS clause 252.227–7002 (" Readjustment of Payments") as the Contracting Officer.

DFARS Case 2019-D012:  A final rule amended the DFARS to replace the pronouns "he" and "him" in DFARS  252.227-7001 with "the contractor."

DFARS Case 2019-D018: A final rule amended the DFARS to update the fill-in instructions for contracting officers contained in the clause at DFARS 252.227–7009 ("Reporting and Payment of Royalties").

DFARS Case 2019-D016:  A final rule amended the DFARS to update a paragraph citation in DFARS 252.225-7021 ("Trade Agreements").

DFARS Case 2019-D025: A final rule amended the DFARS to remove clause clause 252.249–7021 ("Returnable Containers Other Than Cylinders") as unnecessary.

DFARS Case 2019-D024: A final rule amended the DFARS to remove DFARS provision 252.237–7002 ("Award to Single Offeror") as unnecessary.

DFARS Case 2019-D033: A final rule amended the DFARS to implement changes regarding the discontinued use of the Past Performance Information Retrieval System and to update all associated references.

DFARS Case 2018-D010: A final rule amended the DFARS to implement sections of the NDAAs for FY 2017 and 2018 that establish limitations and prohibitions on the use of the lowest price technically acceptable source selection process. 

DFARS Case 2018-D046: A final rule amended the DFARS to rename and modify DFARS clause 252.239–7013 ("Obligation of the Government") by: (i) incorporating the information included in DFARS clause 252.239–7014 ("Term of Agreement"); (ii) creating an alternate for DFARS clause 252.239–7013 that is used in certain circumstances, in lieu of the basic clause, and including the information in DFARS clauses 252.239–7013, –7014, and –7015; and (iii) amending the clause text to align with the termination notification requirement in the FAR. As a result, DFARS clauses 252.239–7014 and 252.239–7015 are removed from the DFARS.

DFARS Case 2019-D015: A final rule amended the clause at DFARS 252.239–7000 ("Protection Against Compromising Emanations") to update a reference within the clause to the current TEMPEST standard.

DFARS Case 2019-D004: A final rule amended the DFARS to implement regulatory changes made by the SBA in its final rule which implemented section 1651 of the National Defense Authorization Act (NDAA) for FY 2013.  Section 1651 of that statute revised and standardized the limitations on subcontracting and the nonmanufacturer rule that apply to small business concerns, including 8(a) Program participants, under procurements conducted pursuant to FAR part 19 ("Small Business Programs").

DFARS Case 2019-D003: A final rule amended the DFARS to implement section 834 of the NDAA for FY 2018, which requires the use of reliability and maintainability sustainment factors in weapon system design.

DFARS Case 2019-D021: A final rule amended the DFARS to remove DFARS provision 252.204–7013 ("Limitations on the Use or Disclosure of Information by Litigation Support Contractors") as redundant because the information in that provision is included in DFARS clause 252.204–7014. 

DFARS Case 2018-D015: A final rule implemented section 837 of the NDAA for FY 2018 by amending  the DFARS to include six elements, at a minimum, regarding the appropriate use of the should-cost review of a major weapon system: (i) a description of the features of the should-cost review process, (ii) establishment of a process for communicating with the prime contractor on the program the elements of a proposed should-cost review, (iii) a method for ensuring that identified should-cost savings opportunities are based on accurate, complete, and current information and can be quantified and tracked, (iv) a description of the training, skills, and experience that DoD and contractor officials carrying out a should-cost review should possess, (v) a method for ensuring appropriate collaboration with the contractor throughout the review process, and (vi) establishment of review process requirements that provide for sufficient analysis and minimize any impact on program schedule.

DFARS Case 2018-D047: A final rule amended the DFARS to modify the clause prescription at DFARS 228.370 to require that DFARS clause 252.228–7005 ("Accident Reporting and Investigation Involving Aircraft, Missiles, and Space Launch Vehicles") be included in all solicitations and contracts, when applicable.

DFARS Case 2019-D040: A final rule amended the DFARS to partially implement section 812 of the NDAA for FY 2019 by repealing two, temporary statutory authorities: section 842(b) of the NDAA for FY 2007 (Pub. L. 109–364) and section 1010 of the USA Patriot Act of 2001 (Pub. L. 107–56).

DFARS Case 2017-D024: A final rule amended the DFARS to implement section 829 of the NDAA for  FY 2017, which requires (i) a preference for fixed-price contracts, (ii) review and approval for certain cost-reimbursement contract types, and (iii) the use of firm-fixed-price contract types for foreign military sales unless an exception or waiver applies.  

DFARS Case 2017-D038: A final rule amended DFARS 244.302(a) to establish a DoD contractor purchasing system review dollar threshold of $50 million, as opposed to the $25 million dollar threshold at FAR 44.302(a).

DFARS Case 2018-D058: A final rule amended the DFARS to implement a section of the NDAA for FY 2019 that requires the DFARS to be updated to include an instruction on the Demonstration Project for Contractors.

DFARS Case 2018-D054: A final rule adopted, with changes, the prior interim rule amending the DFARS to implement a section of the NDAA for FY 2019 that prohibits acquisition of certain magnets and tungsten from North Korea, China, Russia, and Iran.

DFARS Case 2019-D008: A final rule amended the DFARS (in part by adding a new section 219-402) to implement a section of the NDAA for FY 2017 that provides limits on the scope of review by the SBA’s procurement center representatives for certain solicitations awarded by or for DoD.

DFARS Case 2019-D035: Effective January 1, 2020, a final rule amended the DFARS to incorporate revised thresholds for application of the World Trade Organization Government Procurement Agreement and the Free Trade Agreements, as determined by the United States Trade Representative.
 

Interim Rules

DFARS Case 2018-D054:   An interim rule amended the DFARS to implement a section of the NDAA FY 2019 that prohibits acquisition of certain magnets and tungsten from North Korea, China, Russia, and Iran.

DFARS Case 2018-D022: An interim rule amended the DFARS to implement sections of the NDAA for FY 2018 and 2019 by prohibiting the procurement of any equipment, system, or service to carry out the DoD nuclear deterrence or homeland defense missions that uses "covered telecommunications equipment or services" as a substantial or essential component of any system, or as a critical technology as a part of any system, i.e., telecommunications equipment or services from certain Chinese entities, including their subsidiaries and affiliates, and from any other entities that the Secretary of Defense reasonably believes to be owned or controlled by or otherwise connected to, the Government of the People’s Republic of China or the Russian Federation.

Proposed Rules

DFARS Case 2018-D008: A proposed rule would amend the DFARS to implement a section of the NDAA  for FY 2017 and a section of the NDAA for FY 2018 to revise requirements for definitizing undefinitized contract actions.

DFARS Case 2018-D058: A proposed rule would amend the DFARS to implement a section of the NDAA for FY 2019 that requires the DFARS to be updated to include an instruction on a demonstration project for contractors employing persons with disabilities.

DFARS Case 2019-D004: A proposed rule would amend the DFARS to implement the final rule published by the SBA implementing a section of the NDAA FY 2013, which provided revised and standardized limitations on subcontracting (including the nonmanufacturer rule) that apply to small business concerns, including participants in the 8(a) Program.

DFARS Case 2017-D024: A proposed rule would amend the DFARS to implement a section of the NDAA for FY 2017 that requires: (a) the preference for the use of fixed-price contracts in the determination of contract type, (b) review and approval for certain cost reimbursement contract types at specified thresholds and established time periods, and (c) the use of firm fixed-price contract types for foreign military sales unless an exception or waiver applies.

DFARS Case 2018-D035:  A proposed rule would amend the DFARS to modify DFARS clause 252.239–7007 ("Cancellation or Termination of Orders"): (i) to clarify limitations on the Government’s obligation to reimburse a contractor for nonrecoverable costs when the Government cancels an order for telecommunications services; and (ii) to incorporate the information currently included in DFARS clause 252.239– 7008 ("Reuse Arrangements"), which will allow the latter clause to be removed from the DFARS.<

DFARS Case 2018-D045: A proposed rule would amend the DFARS to modify the DFARS clause 252.239–7004 ("Orders for Facilities and Services") in order to incorporate the information currently included in DFARS clause 252.239–7005 ("Rates, Charges, and Services"), which will result in 252.239–7005 being removed from the DFARS.

DFARS Case 2019-D002: A proposed rule would: (i) amend DFARS subpart 232.10 ("Performance-Based Payments") and the clauses at DFARS 252.232–7012 ("Performance-Based Payments—Whole Contract Basis") and DFARS 252.232–7013 "Performance-Based Payments—Deliverable Item Basis"); and (ii) add a new provision at 252.232–70XX ("Performance-Based Payments—Representation"), all to implement section 831 the NDAA for FY 2017, which amends 10 U.S.C. 2307 to address the use of performance-based payments.

DFARS Case 2017-D038: A proposed rule would amend the DFARS to to establish a DoD contractor purchasing system review dollar threshold that provides a regulatory basis for allowing DoD personnel to support other essential priorities and missions of greater contractual risk, while reducing regulatory impact on contractors. 

DFARS Case 2018-D068: A proposed rule would amend the DFARS to  implement a provision of the NDAA for FY 2019 that provides for accelerated payments to small business contractors and subcontractors.

DFARS Case 2018-D047: A proposed rule would amend DFARS to modify the text of the existing clause prescription at DFARS 228.370 to require, instead of permit, that DFARS clause 252.228–7005 ("Accident Reporting and Investigation Involving Aircraft, Missiles, and Space Launch Vehicles") be included in all solicitations and contracts, when applicable.

DFARS Case 2018-D046: A proposed rule would streamline the DFARS by modifying and renaming DFARS clause 252.239–7013 ("Obligation of the Government") in order  (i) to incorporate the information included in DFARS clause 252.239–7014 ("Term of Agreement"), (ii) to create an alternate for DFARS clause 252.239–7013 that is used in certain circumstances, in lieu of the basic clause, (iii) to include the information in DFARS clauses 252.239–7013, -7014, and -7015; and (iv) to amend the clause text to align with the termination notification requirement in the FAR, all of which changes will result in DFARS clauses 252.239–7014 and 252.239–7015 being removed from the DFARS.

DFARS Case 2019-D003: A proposed rule would amend the DFARS to implement section 834 of the NDAA for FY 2018, which requires the use of reliability and maintainability sustainment factors in weapon system design.

DFARS Case 2018-D015: A proposed rule would amend the DFARS to implement a section of the NDAA for FY 2018, which requires an amendment to the DFARS to provide for the appropriate use of the should-cost review process of a major weapon system.

DFARS Case 2019-D008: A proposed rule would amend the DFARS to implement a section of the NDAA for FY 2017 that provides limits on the scope of review by the SBA's procurement center representatives for certain solicitations awarded by or for DoD.

DFARS Case 2018-D049: A proposed rule would amend the DFARS  to modify DFARS clause 252.229–7001 ("Tax Relief") to incorporate the information currently included in DFARS clause 252.229–7000 ("Invoices Exclusive of Taxes or Duties"), resulting in the removal of the latter clause. 

DFARS Case 2018-D069: DoD solicited information that will assist in the development of a revision to the DFARS to implement a section of the National Defense Authorization Act for FY 2019, which amended the statutory presumption of development exclusively at private expense for commercial items in the procedures governing the validation of asserted restrictions on technical data.

DFARS Case 2019-D031: A proposed rule would amend the DFARS to implement a section of the NDAA for 2016 that modifies the criteria required to exempt from competition certain follow-on productions contracts.

DFARS Case 2019-D019: A proposed rule would amend the DFARS to implement a drafting convention by: (i) updating legal and DFARS citations in DFARS 252.249–7002 ("Notification of Anticipated Contract Termination or Reduction"); (ii) conforming the clause text to the current DFARS convention regarding the use of dollar thresholds in contract clauses; and (iii) removing clause text that is no longer needed to implement the underlying statutory language.

DFARS Case 2019-D013: A proposed rule would amend the DFARS to modify the clause at DFARS 252.232–7000 ("Advance Payment Pool") to incorporate the information currently included in DFARS clause 252.232–7001 ("Disposition of Payments") so that the latter clause can be  removed from the DFARS.

DFARS Case 2018-D050: A proposed rule would amend the DFARS to modify the clause at DFARS 252.204–7002 ("Payment for Subline Items Not Separately Priced") in order (i) to simplify the clause text and conform terminology used in the text to current government contract line item structure terminology and (ii) to clarify the intent of the clause, as it pertains to payment on contracts that contain not separately priced (NSP) items, when applicable.

DFARS Case 2019-D027: A proposed rule would amend the DFARS to implement several sections of the NDAA for FY 2017 to address how contracting officers may require the offeror to submit relevant information to support market research for price analysis and allow an offeror to submit information relating to the value of a commercial item to aid in the determination of the reasonableness of the price of that item.

DFARS Case 2019-D029: A proposed rule would amend the DFARS to implement several sections of the NDAA for FY 2017 that address treatment of commingled items purchased by contractors and services provided by nontraditional defense contractors as commercial items. DoD is also proposing to further implement a section of the NDAA for FY 2018 that provides that a contract for an item using FAR part 12 procedures shall serve as a prior commercial item determination. Comments are due by January 27, 2020.

Other Agencies 

Agriculture

The USDA amended the Guidelines for Designating Biobased Products for Federal Procurement  to add 30 sections that will designate the product categories within which biobased products would be afforded procurement preference by federal agencies and their contractors. 

Army

The Army removed three obsolete parts from its acquisition regulations in 48 C.F.R.: (i) Part 5145 ("Government Property"); (ii) Part 5108 ("Required Sources of Supplies and Services"); and Part 5119 ("Small Business and Small Disadvantaged Business Concerns").

DOL

Effective December 26, the DOL is making two procedural changes to its Workforce Innovation and Opportunity Act (WIOA) Job Corps regulations to enable the Secretary to delegate procurement authority as it relates to the development and issuance of requests for proposals for the operation of Job Corps centers, outreach and admissions, career transitional services, and other operational support services.

The DOL's OFCCP proposed to codify procedures that the agency currently uses (i) to resolve potential discrimination and other material violations by federal contractors and subcontractors of laws, regulations, and requirements found under Executive Order 11246, as amended, section 503 of the Rehabilitation Act, as amended, and the Vietnam Era Veterans’ Readjustment Assistance Act of 1974, as amended, and (ii) to add clarifying definitions to specify the types of evidence OFCCP will use to support its discrimination findings. Comments are due by January 29.

EPA

A final rule revised the "Submission of Invoices" clause in the EPA's acquisition regulation (EPAAR) to add electronic invoicing requirements.

The EPA proposed to amend its acquisition regulation (the EPAAR), inter alia, (i) to address situations in the acquisition of commercial items and services where a vendor's  standard commercial terms and conditions conflict, or create ambiguity, with federal law or regulations, e.g., by requiring arbitration in a particular state or by mandating other other dispute  resolution procedures that are inconsistent with the CDA and (ii) to issue EPA class deviations to FAR clauses to address the order of precedence in situations involving these incompatible standard commercial terms.

The EPA proposed to amend the EPAAR to add a new contract clause to address open source software requirements so that EPA can share open source software developed under its procurements.

General Services Administration (GSA)

GSAR Case 2017-G502: The GSA issued a direct final rule amending its acquisition regulation (the GSAR)  to remove GSAR subpart 519-70 ("GSA Mentor-Protégé Program") and associated clauses that are duplicative of the SBA's governmentwide Mentor-Protégé program and to remove several subcontracting provisions that are duplicative of the requirements in FAR 52.219-9 ("Small Business Subcontracting Plan").

GSAR Case 2008-G517: GSA adopted as final, without change, an interim rule amending the GSAR to implement The Local Preparedness Acquisition Act of 2008, which authorizes the use by state or local governments of FSS  84 for purchases of GSA safety equipment and services.

GSAR Case 2015-G503: A final rule amended the coverage in the GSAR concerning construction contracts, including provisions and clauses for solicitations and resultant contracts, to clarify, update, and incorporate existing construction contract administration procedures.

GSAR Case 2013-G502: GSA amended GSAR Parts  515 (Contracting by Negotiation), 538 (Federal Supply Schedule Contracting), and 552 (Solicitation Provisions and Contract Clauses) to clarify, update, and incorporate existing FSS contract administration policies and procedures. Subsequently, the GSA issued several corrections to the FSS provisions.

GSAR Case 2015-G506: Effective January 21, 2020, the GSA is amending the GSAR to adopt an additional project delivery method for construction, known as "construction manager as constructor" or "CMc." 

HUD

A final rule amended HUD's acquisition regulation (the HUDAR): (i) to incorporate  several clauses and associated additions to the HUDAR matrix; (ii) to replace references to Government Technical Representatives (GTRs) with references to Contracting Officer’s Representatives (CORs); (iii) to codify deviations approved by HUD’s Chief Procurement Officer;  and (iv) to make other minor corrections to clauses, provisions, and the HUDAR matrix.

A final rule rule amended various provisions of the HUDAR: (i) to incorporate several clauses and associated additions to the HUDAR matrix, (ii) to replace references to Government Technical Representatives (GTRs) with references to Contracting Officer’s Representatives (CORs), (iii) to codify deviations approved by HUD’s Chief Procurement Officer (CPO), and (iv) to make minor corrections to clauses, provisions, and the HUDAR matrix.

Interior

The Department of the Interior proposed to amend its acquisition regulation (DIAR) to implement Section 15(k) of the Small Business Act and to remove outdated references and/or obsolete information concerning small business issues.

Navy

The Department of the Navy removed its procurement regulations in the following three areas because they were superseded by, or duplicative of, coverage in the FAR and DFARS: contract administration, contracting by negotiation,  and solicitation provisions and contract clauses.

Small Business Administration (SBA)

The SBA revised its size standards methodology white paper explaining how it establishes, reviews, or revises small business size standards.

Effective January 24, 2020, the SBA codified (i) regulations for the Women’s Business Center (WBC) program, and (ii) policy and procedural changes included in the WBC Program Announcement and Notice of Award (NOA). These changes include, but are not limited to: (i) language on risk assessment, as required by the Uniform Grant Guidance; (ii) limitations on carryovers; (iii) a reduction in reporting requirements; and (iv) eligibility criteria for selection as a WBC. 

Effective January 6, 2020, the SBA is modified its method for calculating average annual receipts used to prescribe size standards for small businesses from a 3-year averaging period to a 5-year period. During a transitional period through January 6, 2022, firms may choose between using a 3-year period and a 5-year period.  

Effective December 26, SBA madce an extensive set of revisions to its HUBZone regulations, including, among many other revisions, requiring only an annual recertification of  HUBZone eligibility rather than a certification with every offer for a HUBZone contract award.  

SBA issued a direct final rule (to be effective January 1, 2020, unless SBA receives significant adverse comments by December 16)  in order to implement provisions of the National Defense Authorization Act for FY 2018, which authorized the inclusion of "Governor-designated covered areas" under the HUBZone program

Effective December 30, the SBA issued a final rule which implemented several provisions of the NDAAs for FY 2016 and 2017 and the Recovery Improvements for Small Entities After Disaster Act of 2015 (RISE Act) and also clarified existing regulations. Specifically, the rule clarified that contracting officers have the authority to request information in connection with a contractor’s compliance with applicable limitations on subcontracting clauses; provided exclusions for purposes of compliance with the limitations on subcontracting for certain contracts performed outside of the United States, for environmental remediation contracts, and for information technology service acquisitions that require substantial cloud computing; required a prime contractor with a commercial subcontracting plan to include indirect costs in its subcontracting goals; established that failure to provide timely subcontracting reports may constitute a material breach of the contract; clarified the requirements for size and status recertification; and limited the scope of Procurement Center Representative (PCR) reviews of Department of Defense acquisitions performed outside of the United States and its territories. The rule also authorized agencies to receive double credit for small business goaling achievements as announced in SBA’s scorecard for local area small business set-asides in connection with a disaster. Finally, SBA removed the kit assembler exception to the non- manufacturer rule.

The SBA proposed to amend its regulations concerning the requirements for certifications of women-owned small business (WOSB) status and economically disadvantaged women-owned small business (EDWOSB) status for firms wishing to compete for WOSB and EDWOSB set-asides or sole source contracts.

The SBA proposed several significant changes to its regulations, including, inter alia: (i) eliminating the requirement that 8(a) Participants seeking to be awarded an 8(a) contract as a joint venture submit the joint venture to the SBA for review and approval prior to contract award; (ii) revising several 8(a) Business Development ("BD") program regulations to reduce unnecessary or excessive burdens on 8(a) Participants; (iii) clarifying other related regulatory provisions to eliminate confusion among small businesses and procuring activities; (iv) except for orders and Blanket Purchase Agreements ("BPAs") issued under the GSA’s FSS Program, requiring a business concern to recertify its size and/or socioeconomic status for all set-aside orders under unrestricted multiple award contracts ("MACs"); (iv) requiring a business concern to recertify its socioeconomic status for all set-aside orders where the required socioeconomic status for the order differs from that of the underlying set-aside MAC contract (e.g., a HUBZone set-aside order against a small business set-aside MAC); and (v) except for orders or BPAs issued under any FSS contract, allowing for size and/or socioeconomic protests at the order-level for set-aside orders issued against unrestricted MACs or for set-aside orders based on a different socioeconomic status from the underlying set-aside MAC.

State Department

The Department of State amended the ITAR to revise the licensing exemption for transfers made by or for an agency of the U.S. Government.

The State Department solicited comments concerning the following question: which exemptions to the ITAR, if any, are redundant or could be consolidated, and which, if any, contain language that introduces significant ambiguity or hinders the exemption's intended use?

 USAID

USAID proposed revisions to its Acquisition Regulation (AIDAR) to incorporate a revised definition of information technology (IT) and other requirements relating to information security and IT approvals in order to comply with the Federal Information Technology Acquisition Reform Act (which requires improved management of the acquisition of IT resources), specifically to provide increased oversight of contractor acquisition and use of IT resources.

USAID proposed to amend its regulation regarding incentive awards for personal services contracts with individuals to recognize the work of individuals for extraordinary performance of services under their contract by providing them with monetary or non-monetary incentive awards. Subsequently, the agency announced that. effective December 16, it is amending the AIDAR to establish a monetary and non-monetary incentive-awards program to recognize and reward individual personal services contractors for their contributions to the accomplishment of the agency's mission.

VA

The VA amended sections of the VAAR concerning construction and architect-engineer contracts, inter alia: (i) to remove subparts/sections 825.2 ("Buy American Act— Construction Materials"), 836.206 ("Liquidated Damages"), and 836.513 ("Accident Prevention") as duplicative of the FAR; (ii) to remove 846.312 ("Construction Contracts"), and the associated contract clause  852.236–74 ("Inspection of Construction"), 852.236–74 ("Inspection of Construction"), and 852.236–77 ("Reference to 'Standards'’’) because  VA Master Specifications are used in VA contracts, and 852.236–78 ("Government Supervision"), while adding a revised version of this last clause at 852.242–70 ("Government Construction Contract Administration"); (iii) to add 836.580 ("Notice to Bidders—Additive or Deductive Bid Line Items") and a prescription requiring the Contracting Officer to insert the provision 852.236–92 ("Notice to Bidders—Additive or Deductive Bid Line Items") in invitations for bids when the Contracting Officer determines that funds may not be available for all the desired construction features at contract award, and to add coverage under subpart 842.2 ("Contract Administration Services") and 842.271 ("Contract Clause for Government Construction Contract Administration") to prescribe clause 852.242–70 ("Government Construction Contract Administration"), which describes contract administration functions to be delegated under construction contracts that exceed the micro-purchase threshold for construction.

The VA published two more sets of final rules amending the VAAR. The first (effective September 30) involves the following VAAR sections: Environment, Energy and Water Efficiency, Renewable Energy Technologies, Occupational Safety, and Drug-Free Workplace; Protection of Privacy and Freedom of Information; Other Socioeconomic Programs; and Contract Modifications. The second (effective October 4) revises the following sections: Contracting by Negotiation and Service Contracting.

As part of its phased revisions (the VAAR, the VA proposed numerous changes to VAAR Part 806 (Competition Requirements), including, inter alia: (i) adding subpart 806.1 (Full and Open Competition) and section 806.102 (Use of Competitive Procedures) to address the application of 38 U.S.C. 8127 to competitive GSA and VA Federal Supply Schedules; (ii) adding subpart 806.2 (Full and Open Competition After Exclusion of Sources), which would contain two sections--806.203 (Set-asides for Small Business Concerns) and 806.270, (Set-asides for Verified Veteran-owned Small Businesses); (iii) revising section 806.270 (a) to set-forth the VA’s authority  to conduct set-asides for VOSBs whenever market research provides the contracting officer with a reasonable expectation of receiving two or more offers/quotes from eligible and verified service-disabled veteran-owned small businesses (SDVOSBs) or VOSBs, and award can be made at a fair and reasonable price that offers best value to the Government (the "VA Rule of Two"), (b) to state that the requirement to set aside procurements for VOSBs applies to all contracts under this regulation, including orders under interagency acquisition vehicles such as the FSS, governmentwide acquisition contracts (GWACs), and multi-agency contracts, and (c) to state that contracting officers shall utilize this authority in the VAAR for set-asides to verified SDVOSBs and VOSBs, over other set-asides authorized in FAR subpart 6.2; (iv) revising subpart 806.3 (Other Than Full and Open Competition)  to add specific reference to the VA’s authority for noncompetitive procedures for verified VOSBs, to clarify existing authorities regarding such noncompetitive procedures, and to also clarify existing statutory authority for other VA-unique authorities; (iv) amending section 806.302 (Circumstances Permitting Other Than Full and Open Competition) to add several sections; and (v)  adding two sections under 806.302–5, including 806.302–570 (Noncompetitive Procedures for Verified Veteran-owned Small Businesses) to provide coverage of the authority to enter into contracts non-competitively, when specifically authorized under the VA Veterans First Contracting Program in accordance with VAAR 819.7007 or 819.7008. These are only some of the proposed changes.


 

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