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2020 Procurement Review--Statutes, Regulations, Executive Orders



                           


Contents

                           

    Statutes   

National Defense Authorization Act for Fiscal Year 2020

Further Consolidated Appropriations Act, 2020

Executive Orders and Related Publications

    

Regulations

Federal Acquisition Regulation (FAR)

     Federal Acquisition Circulars (FAC)  

FAC 2020-05

Federal Acquisition Circular (FAC) 2020-05  included the following item:

FAR Case 2014-002: A final rule amended the FAR in multiple sections to implement regulatory changes made by the SBA, which provide governmentwide policy for partial set-asides and reserves and for set-asides of orders for small business concerns under multiple-award contracts.

FAC 2020-06

FAC 2020-06 included the following three items (plus technical amendments):

FAR Case 2020-001: A final rule amended the FAR to remove the subpart on nondisplacement of qualified workers.

FAR Case 2018-007: A final rule amended 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 in this rulemaking.

FAR Case 2016-013:  A final rule amended the FAR to withhold a two percent tax on contract payments made by the United States Government under contracts for goods or services that are awarded to foreign persons.

FAC 2020-07

FAC 2020-07 included the following five items (plus technical amendments):

FAR Case 2017-010: A final rule amended the FAR to implement section 825 of the NDAA for FY 2017, which provides that, at the Government’s discretion, solicitations for multiple-award contracts (a) that will be awarded for the same or similar services and (b) that state that the Government intends to award a contract to each qualifying offeror, do not require price or cost as an evaluation factor for contract award. This exception does not apply to solicitations for multiple-award contracts that provide for sole-source orders under the 8(a) program.

FAR Case 2018-004: A final rule amended the FAR to implement sections of the NDAAs for FY 2017 and 2018 that (a) increase the micro-purchase threshold (MPT) and the simplified acquisition threshold (SAT), (b) clarify certain procurement terms, and (c) align some non-statutory thresholds with the MPT and SAT.

FAR Case 2018-005: A final rule amended the FAR to implement section 811 of the NDAA for FY 2018, which increases the threshold for requiring cost or pricing data from  from $750,000 to $2 million for contracts entered into after June 30, 2018.

FAR Case 2018-022: A final rule amended FAR clause 52.216-18 to permit the issuance of task or delivery orders via facsimile or electronic commerce and clarify when an order is considered "issued" when using these methods.

FAR Case 2015-002: A final rule amended the FAR to require electronic submission of the DD Form 254 (Contract Security Classification Specification).

FAC 2020-08

FAC 2020-08 included the following item:

FAR Case 2019-009: An interim rule amended the FAR to implement section 889(a)(1)(B) of the John S. McCain National Defense Authorization Act for FY 2019 by requiring contracting officers to include the provision at FAR 52.204–24 ("Representation Regarding Certain Telecommunications and Video Surveillance Services or Equipment") and the clause at FAR 52.204–25 ("Prohibition on Contracting for Certain Telecommunications and Video Surveillance Services or Equipment") in solicitations and contracts.  

FAC 2020-09

FAC 2020-09  included the following item:

FAR Case 2019-009: An interim rule amends the FAR to require an offeror to represent annually, after conducting a reasonable inquiry, whether it uses covered telecommunications equipment or services, or any equipment, system, or service that uses covered telecommunications equipment or services.  

FAC 2021-02

FAC 2021-02 included the following items:

FAR Case 2020-003: Effective November 23, a final rule removes the FAR appendix, which references CAS regulations, because those provisions are easily accessible elsewhere, rendering the appendix unnecessary.

FAR Case 2020-002: Effective November 23, a final rule removes and/or moves obsolete definitions of "annual receipts," "number of employees," and "affiliates" in the FAR.

FAR Case 2019-019: Effective November 23, a final rule revises the FAR to update internal government procedures on how agencies can locate excess personal property and to remove obsolete requirements.

FAR Case 2018-021: Effective November 23, a final rule amends the FAR to implement the statute that prohibits the award of certain federal contracts to institutions of higher education that prohibit ROTC units or military recruiting on campus.

FAR Case 2020-006: Effective November 23, a final rule amends the FAR to implement section 818 of the NDAA for FY 2020, which requires the head of the agency to document the results of market research in a manner appropriate to the size and complexity of the acquisition.

FAR Case 2018-023: Effective November 23, a final rule amends 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 2019-002: Effective November 23, a final rule amends the FAR to implement a DOL rule, which exempts certain contracts for seasonal recreational services or seasonal recreational equipment rental for the general public on federal lands from an Executive Order on minimum wage. This rule does not change the extent to which contractors can be used to assist federal agencies with providing services on federal lands, but only changes the extent to which minimum wages are required for applicable federal contracts. 

 Other FAR Revisions

FAR Case  2019-013: A final rule has amended the FAR to further implement the statute which requires an adjustment every five years of statutory acquisition-related thresholds for inflation. The adjustment uses the CPI for all urban consumers, and does not apply to the Davis-Bacon Act, Service Contract Labor Standards statute, and trade agreements thresholds. DoD, GSA, and NASA are also using the same methodology to adjust nonstatutory FAR acquisition- related thresholds in 2020. 

 Other Proposed FAR Revisions

FAR Case 2017-003: A proposed rule would amend the FAR to implement a section of the NDAA for FY 2016 by requiring that a pledge of assets given by an individual surety consist only of eligible obligations. 

FAR Case 2017-011: A proposed rule would amend the FAR to incorporate recent revisions and updates to accessibility standards for individuals with disabilities issued by the U.S. Access Board pursuant to section 508 of the Rehabilitation Act of 1973.

FAR Case 2018-020: A proposed rule would amend the FAR to require that, in solicitations for construction contracts anticipated to be awarded to small businesses, procuring agencies must include a notice that provides information about the agency’s policies or practices in complying with FAR requirements concerning the timely definitization of requests for equitable adjustment on construction contracts, including data regarding the time it took the agency to definitize requests for equitable adjustment on construction contracts for the three-year period preceding the issuance of the notice.

FAR Case 2019-003: A proposed rule would amend the FAR to implement a section of the National Defense Authorization Act for FY 2016, which requires providing public notices of determinations for substantial bundling and consolidation of contract requirements. 

FAR Case 2019-004: A proposed rule would amend the FAR (principally section 19.705) to implement section 1821 of the National Defense Authorization Act for FY 2017, which requires the SBA to amend its regulations to provide examples of activities that would be considered a failure to make a good faith effort to comply with a small business subcontracting plan.

FAR Case 2020-009: DoD, GSA, and NASA are considering amending the FAR to update the list of domestically nonavailable articles under the Buy American statute and, therefore, are seeking information that will assist in identifying domestic capabilities and for evaluating whether some articles on the list of domestically nonavailable articles are now mined, produced, or manufactured in the United States in sufficient and reasonably available commercial quantities and of a satisfactory quality. 

FAR Case 2017-019: A proposed rule would amend the FAR to implement statutory and regulatory changes regarding joint ventures made by the SBA in its final rule published in the Federal Register on July 25, 2016, and to clarify that 8(a) joint ventures are not certified into the 8(a) program and that 8(a) joint venture agreements need only be approved by the SBA prior to contract award.

FAR Case 2019-013: A proposed rule would amend the FAR in compliance with the requirement to  adjust statutory acquisition-related thresholds for inflation every five years using the Consumer Price Index for all urban consumers. The adjustment would not apply to the Davis-Bacon Act, Service Contract Labor Standards statute, and trade agreements thresholds. The proposed rule would use the same methodology to adjust nonstatutory FAR acquisition-related thresholds in 2020.  

FAR Case 2019-001: A proposed rule would amend Part 7 of the FAR (in particular subpart 7.4) to implement a section of the FAA Reauthorization Act of 2018, which requires, when acquiring equipment, a case-by-case analysis of cost and other factors associated with certain methods of acquisition, including purchase, short-term rental or lease, long-term rental or lease, interagency acquisition, and, if applicable, acquisition agreements with a State or local government.

FAR Case  2019-016: A proposed rule would implement Executive Order 13881 by amending the FAR to increase the domestic content requirements and price preference for purposes of applying the Buy America Act.

FAR Case 2018-002: A proposed rule would amend the FAR  to implement the Presidential Memorandum of January 23, 2017 expanding the "Mexico City Policy" (which denies funding to certain entities promoting abortion as a means of family planning) to additional agencies, entities, and circumstances.

FAR Case 2017-014: A proposed rule would amend the FAR to to encourage the use of voluntary feedback mechanisms, where appropriate, to support continual improvement of the acquisition process. 

FAR Case 2018-018: A proposed rule would implement section 836 of the John S. McCain NDAA for FY 2019 by changing the definition of "commercial item." 

FAR Case 2020-004: A proposed rule would amend the FAR to implement a section of the NDAA for FY 2020 that raises the threshold for fair opportunity on certain task and delivery orders to the micro-purchase threshold. 

FAR Case 2015-038: A proposed rule would amend the FAR to provide guidance on the use of reverse auctions.  


Department of Defense FAR Supplement (DFARS)

DFARS Case  2019-D013: A final rule amended the DFARS to include the text of DFARS 252.232–7001 ("Disposition of Payments") in DFARS 252.232–7000 ("Advance Payment Pool") and then remove the former clause.

DFARS Case 2018-D050: A final rule amended the DFARS to modify DFARS 252.207–7002 ("Payment for Subline Items Not Separately Priced") to conform the text of the clause to the current contract line item structure terminology by replacing the phrase "contract line item" with "contract line or subline item."

DFARS Case 2019-D002: A final rule amended the DFARS to implement a section of the National Defense Authorization Act (NDAA) for FY 2017 that amends 10 U.S.C. 2307 to address the use of performance-based payments.

DFARS Case 2018-D068: A final rule amended the DFARS to implement a section of the NDAA for FY 2019 that provides for accelerated payments to small business contractors and subcontractors.

DFARS Case 2018-D049: A final rule amended the DFARS to modify DFARS 252.229–7001 ("Tax Relief") by incorporating the information included in DFARS 252.229–7000 ("Invoices Exclusive of Taxes or Duties") and removing the latter clause from the DFARS. 

DFARS Case 2020-D006: A final rule amended the DFARS to implement section 823 of the National Defense Authorization Act (NDAA) for FY 2020, which increases the threshold for requiring a J&A to award a sole source contract to a participant in the 8(a) program to actions exceeding $100 million.

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

DFARS Case 2019-D019: A final rule amended the DFARS to identify the dollar thresholds of the implementing statute (10 U.S.C. 2501 note) for DFARS 249.70 and DFARS 252.249–7002 ("Notification of Anticipated Contract Termination or Reduction") in accordance with current DFARS drafting conventions, and update the clause to reflect the current statute under which employee and training opportunities apply under the clause.

DFARS Case 2020-D012: A final rule amended the DFARS to implement a provision of the Defense Authorization Act for FY 2020 that removes the qualification requirement for contracting professionals to have completed 24 semester credit hours (or equivalent) of study in specifics areas.

DFARS Case 2020-D004: A final rule amended the DFARS to implement section 1051 of the NDAA for FY 2018, which repealed numerous DoD reporting requirements to Congress, to include the annual reporting requirements for commercial items and exceptional case exceptions and waivers under section 817 of the NDAA for FY 2003.

DFARS Case 2017-D011 (corrections): On December 21, 2018, DoD published a final rule to implement sections of the NDAA for FY 2017, including a section that added Australia and the United Kingdom to the definition of the "National Technology and Industrial Base." This action corrects several sections of the regulations where the revised definition of the ‘‘National Technology and Industrial Base’’ was inadvertently not implemented. This document corrects the final regulations in order to acquire from Australia or the United Kingdom, without waiver, certain naval vessel components. 

DFARS Case 2019-D036: A final rule amended the DFARS to implement the inflation adjustment of acquisition-related dollar thresholds.

DFARS Case 2020-D016: A final rule amended the DFARS to implement a section of the National Defense Authorization Act (NDAA) for FY 2020 that revises contract file documentation requirements when awarding a task- or delivery order- contract in excess of $100 million to a single source.

DFARS Case 2019-D023: A final rule amended the DFARS to remove DFARS subpart 211.273 ("Substitutions for Military or Federal Specifications and Standards") and DFARS clause 252.211–7005 ("Substitutions for Military of Federal Specifications") from the DFARS because the guidance and clause are no longer necessary.

DFARS Case 2019-D022: A final rule amended the DFARS to remove the provision at DFARS 252.211–7004 ("Alternate Preservation, Packaging, and Packing") and the associated prescription from the DFARS because the provision is no longer necessary.

DFARS Case 2019-D029: A final rule amended the DFARS to 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. 

DFARS Case 2020-D025: A final rule amended the DFARS to remove clauses related to taxes applied to foreign contracts in Afghanistan that are no longer necessary.

DFARS Case 2020-D002: A final rule removed obsolete DFARS provision 252.209–7003 ("Reserve Officer Training Corps and Military Recruiting on Campus- Representation"), and DFARS clause 252.209–7005 ("Reserve Officer Training Corps and Military Recruiting on Campus").  

Interim Rules

DFARS Case 2020-D007: An interim rule amended the DFARS to implement a section of the NDAA for FY 2020 that prohibits the acquisition of tantalum metal and alloys from North Korea, China, Russia, and Iran. Comments are due by November 30.

DFARS Case 2019-D041: Effective November 30, an interim rule amends the DFARS to  implement a DoD Assessment Methodology and Cybersecurity Maturity Model Certification framework in order to assess contractor implementation of cybersecurity requirements and enhance the protection of unclassified information within the DoD supply chain. Comments are due by November 30.

Proposed Rules

DFARS Case 2017-D042: A proposed rule would amend the DFARS to provide for expedited contract closeout through a waiver by the contractor and the Government of entitlement to any residual dollar amounts that are due to either party at the time of final contract closeout.

DFARS Case 2019-D036: A proposed rule would amend the DFARS to further implement 41 U.S.C. 1908, which requires an adjustment every five years of acquisition-related thresholds for inflation using the CPI for all urban consumers, except for the Construction Wage Rate Requirements statute (Davis-Bacon Act), Service Contract Labor Standards statute, and trade agreements thresholds. DoD is also proposing to use the same methodology to adjust some nonstatutory DFARS acquisition-related thresholds in 2020.

DFARS Case 2019-D023: A proposed rule would amend the DFARS to remove DFARS subpart 211.273 ("Substitutions for Military or Federal Specifications and Standards") and the corresponding DFARS clause at 252.211– 7005 ("Substitutions for Military or Federal Specifications and Standards") from the DFARS because both the guidance and clause are no longer necessary. 

DFARS Case 2018-D063: A proposed rule would amend the DFARS to implement a section of the United States Code that requires the collection of data on certain DoD service contracts.

DFARS Case 2018-D044: A proposed rule would amend the DFARS to remove DFARS clause 252.239–7006 ("Tariff Information"), and the associated clause prescription at DFARS 239.7411(a).  

DFARS Case 2019-D022: A proposed rule would amend the DFARS to remove DFARS 252.211–7004 ("Alternate Preservation, Packaging, and Packing") as the provision is no longer necessary.  

DFARS Case 2020-D017: A proposed rule would amend the DFARS to implement section 853 of the NDAA for FY 2020, which amends 10 U.S.C. 2534 (miscellaneous limitations on the procurement of goods other than United States goods) to establish limitations on the procurement of large medium-speed diesel engines for contracts awarded for new construction of an auxiliary ship, unless the engines are manufactured in the national technology and industrial base, which includes the United States, Australia, Canada, and the United Kingdom.

DFARS Case 2020-D031: A proposed rule would amend the DFARS to remove references to revoked Executive Orders related to minimizing the use of materials containing hexavalent chromium.

DFARS Case 2020-D023: A proposed rule would amend the DFARS to further implement a section of the NDAA for FY 2018, which provides that a contract for an item using FAR part 12 procedures shall serve as a prior commercial item determination.   

DFARS Case 2019-D043: DoD is hosting a virtual public meeting on January 14, 2021, to engage in discussion and obtain views of experts and interested parties in the Government and the private sector regarding implementation in the DFARS of the data rights portions of the Small Business Innovation Research Program and Small Business Technology Transfer Program Policy Directives. DoD also has reopened the comment period on this issue.  

Other Agencies 

DOL

The DOL rescinded the regulations that gave workers on a service contract the right of first refusal for employment with a successor contractor if they would otherwise lose their jobs as a result of expiration of the contract. The agency also terminated all investigations and compliance actions that were based on alleged violations of the former regulations.

The DOL's Office of Federal Contract Compliance Programs (OFCCP) issued a final rule to codify procedures that it uses to resolve potential discrimination and other material violations of the laws and regulations administered by OFCCP applicable to federal contractors and subcontractors and to add clarifying definitions to specify the types of evidence OFCCP uses to support its discrimination findings.

The OFFCP also issued new regulations to be effective January 8, 2021, intended, as best as I can tell, to delineate the situations in which entities will be considered religious and, thereby, free to rely on that status as an excuse to discriminate against employees and prospective employees with impunity.

EPA

A final rule amends the EPA's acquisition regulation (EPAAR) award term incentive policy, procedures, and clauses to remove ambiguity and provide clarity with respect to what is required for a contractor to successfully earn award terms.

The EPA is added a new clause to the EPAAR addressing open source software requirements, including EPA’s ability to share open source software developed under its procurements.

General Services Administration (GSA)

GSAR 2019-019: A direct final rule amends the GSA's acquisition regulation (the GSAR) to update GSAR clauses to reflect use of common-use electronic media rather than paper copies for the submission and distribution of FSS Price Lists. 

GSAR Case 2020-G526: A a direct final rule amended the GSAR to remove text duplicative to the FAR regarding the Task-Order and Delivery-Order Ombudsman.

GSAR Case 2020-G502: GSA issued an advance notice of proposed rulemaking soliciting public comments by September 18 that can be used to assist in the implementation of Section 876 of the National Defense Authorization Act for FY 2019 for the Federal Supply Schedule (FSS) program, which amended the United States Code by providing an exception to the requirement to consider price as an evaluation factor for the award of certain indefinite-delivery, indefinite-quantity contracts and FSS contracts. 

HHS

HHS' Indian Health Service (IHS) proposes to amend the HHS' Acquisition Regulations (HHSAR)  by extensively revising HHSAR Subpart 326.6 (Acquisitions Under the Buy Indian Act) in order to  implement the Buy Indian Act, which provides IHS with authority to set-aside procurement contracts for Indian-owned and controlled businesses.

NASA 

NASA proposed to amend the NASA Federal Acquisition Regulation Supplement (NFS) to add new text that requires covered contractors and subcontractors at all tiers to use electronic parts that are currently in production and purchased from the original manufacturers of the parts, their authorized dealers, or suppliers who obtain such parts exclusively from the original manufacturers of the parts or their authorized dealers. If the contractor does not purchase electronic parts as described above, they must purchase the parts from a NASA identified supplier or contractor-approved supplier. The contractor will then assume responsibility and be required to inspect, test and validate authentication of the parts. The contractor will also be required to obtain traceability information.

Small Business Administration (SBA)

The SBA amended its regulations (a) to remove 13 C.F.R. § 124.516 (as redundant with § 124.512) and (b) to amend § 124.1001 and delete §§ 124.1002-.1016 because the SBA no longer administers an SDB certification program nor processes SDB appeals. 

The SBA revised its regulations governing procedures at the OHA by: (i) removing § 134.317 from its regulations because the procedure addressed in this regulation (the return of size appeal case files) is no longer necessary since case files are now transmitted electronically to OHA from SBA’s Area Offices, which eliminates the need to return paper records by mail; and (ii) revising § 134.714 to clarify that the decision of a Judge regarding a status protest appeal from a Women-Owned Small Business (WOSB) or Economically Disadvantaged Women-Owned Small Business (EDWOSB) is the SBA’s final agency decision and becomes effective upon issuance.

Effective November 16 (except for the revision to 13 C.F.R. § 127.504, which is effective October 16), the SBA has issued a final rule rule that: (i) merges the 8(a) Business Development (BD) Mentor Protégé Program and the All Small Mentor-Protégé Program to eliminate confusion and remove unnecessary duplication of functions within the SBA; (ii) eliminates the requirement that 8(a) Participants seeking to be awarded an 8(a) contract as a joint venture submit the joint venture agreement to the SBA for review and approval prior to contract award; (iii) revises several 8(a) BD program regulations to reduce unnecessary or excessive burdens on 8(a) Participants; and (iv) requires a business concern to recertify its size and/or socioeconomic status for all set-aside orders under unrestricted multiple award contracts, unless the contract authorized limited pools of concerns for which size and/or status was required. 

The SBA proposed to remove from the C.F.R. four regulations relating to the SDVOSB Program that are unnecessary or redundant. Subsequently, the SBA announced that, effective December 4, it was removing the four regulations.

The SBA proposed to increase its receipts-based size standards for 45 industries in the Transportation and Warehousing, Information, Finance and Insurance, and Real Estate and Rental and Leasing sectors based on the SBA's recently revised Size Standards Methodology. The SBA also proposed to increase its receipts-based size standards for 68 industries in NAICS Sectors related to Agriculture, Forestry, Fishing and Hunting; Mining, Quarrying, and Oil and Gas Extraction; Utilities; and Construction. In addition, The SBA proposed to increase its receipts-based size standards for 46 industries in NAICS sectors related to Professional, Scientific and Technical Services, Management of Companies and Enterprises, and Administrative and Support and Waste Management and Remediation Services.

 USAID

Effective November 16, USAID amended its acquisition regulation (the AIDAR) to clarify policy on leave and holidays, including family and medical leave, for U.S. personal services contractors.

VA

The VA amended Parts  812 (Acquisition of Commercial Items) and 813 (Simplified Acquisition Procedures) of its acquisition regulation (the VAAR), inter alia, to address concerns with gray market medical equipment and to clarify procedures related to the Veterans First Contracting Program.

Effective October 26, the VA adoptied as final without change the prior proposed rule to amend Parts 802, 809 (debarment and suspension and conflicts of interest), 841 (acquisition of utility services), 842 (contract administration and audit services), and 852 of the VA's acquisition regulation (the VAAR) as part of the agency's phased program to revise or remove any policy superseded by changes in the FAR, to remove procedural guidance internal to VA into the VA Acquisition Manual, and to incorporate any new agency specific regulations or policies. 

The VA proposed to remove VAAR Part 825 regarding foreign acquisition because it is internal and procedural in nature.


 

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