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2021 Procurement Review--Statutes, Regulations, Executive Orders



                           



Contents

                           

    Statutes   

Executive Orders and Related Publications

     Executive Order 14042 requires the Government to take expeditious steps to develop and include a clause in federal contracts that specifies that the contractor and its subcontractors shall, for the duration of the contract, comply with all COVID safety guidance published by the Safer Federal Workforce Task Force for all employees at contractor or subcontractor workplace locations, provided that the OMB Director approves the Task Force Guidance and determines that the Guidance, if adhered to by contractors or subcontractors, will promote economy and efficiency in federal contracting.

     Executive Order 14055 includes requirements to ensure the nondisplacement of  qualified workers when a service contract expires. 

Regulations

Federal Acquisition Regulation (FAR)

     Federal Acquisition Circulars (FAC)  

FAC 2021-03

Federal Acquisition Circular (FAC) 2021-03 included the following three items plus technical amendments:

FAR Case 2017-018:  A final rule adopted with changes the prior interim rule amending the FAR to implement a section of the National Defense Authorization Act (NDAA) for FY 2017 that addresses measures against persons involved in activities that violate arms control treaties or agreements with the United States.

FAR Case 2018-016: A final rule amended the FAR to implement a section of the John S. McCain NDAA for FY 2019 that applies criteria for, and limitations on, the use of the lowest-price, technically-acceptable source selection criteria in solicitations.

FAR Case 2017-003: A final rule amended the FAR to implement a section of the NDAA for FY 2016 to change the kinds of assets that individual sureties must pledge as security for their bonds.

In addition, a final rule made miscellaneous editorial changes to the FAR to correct errors, etc.  

FAC 2021-04

FAC 2021-04 included the following item:

FAR Case 2019-016: A final rule amended the FAR to implement Executive Order 13991 addressing domestic preferences in government procurement, specifically, inter alia: (i) in order to meet the definition of "domestic construction material" or "domestic end product," the cost of foreign iron and steel for iron and steel products must be less than 5 percent of the cost of all components in the product; and (ii) for everything else, the domestic content requirement increases from 50 percent to more than 55 percent of the cost of all components.
 

FAC 2021-06

FAC 2021-06 included the following two items (plus technical amendments):

FAR Case 2019-001: A final rule amended the FAR 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 2020-004: A final rule amended the FAR to implement a section of the National Defense Authorization Act for FY 2020 that raises the threshold for fair opportunity on certain task and delivery orders to the micro-purchase threshold.

FAC 2021-07

FAC 2021-07 included the following items plus technical amendments:

FAR Case 2019-004: A final rule amended the FAR to implement a section of the National Defense Authorization Act (NDAA) for FY 2017, which requires examples of failure to make good faith efforts to comply with a small business subcontracting plan.

FAR Case 2016-011: A final rule amended the FAR to implement revised and standardized limitations on subcontracting, including the nonmanufacturer rule, that apply to small business concerns.

FAR Case 2020-012: A final rule amended the FAR to implement section 1811 of the NDAA FY 2017 to provide procurement center representatives with the discretion to review any acquisition.

FAR Case 2017-011: A final rule amended the FAR to incorporate recent revisions and updates to accessibility standards issued by the U.S. Access Board.

FAC 2022-01

FAC 2022-01 included the following three items--

FAR Case 2018-018: A final rule amended the FAR to implement a section of the John S. McCain NDAA for FY 2019 to change the definition of "commercial item" by bifurcating the definition into "commercial product" and "commercial service."

FAR Case 2019-003:  A final rule amended the FAR to implement section 863 of the NDAA for FY 2016, which requires public notification of an agency’s determination to substantially bundle or consolidate contract requirements.

FAR Case 2021-007:  A final rule amended the FAR to implement a section of the William M. (Mac) Thornberry NDAA for FY 2021 that modified the Small Business Act's maximum award price for manufacturing contracts to $7 million. 

FAC 2022-02

FAC 2022-02 included the following item:

FAR Case 2021-003: A final rule replaced FAR references to the Federal Business Opportunities (FBO.gov) and Wage Determinations Online (WDOL.gov) websites with references to the System for Award Management (SAM.gov). 

FAC 2022-03

FAC 2022-03 included the following item:

FAR Case 2022-01: Effective January 1, 2022, a final rule amends the FAR 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. Moreover, DFARS Case 2022-D003 made the same change to the DFARS.

 Other Proposed FAR Revisions

FAR Case 2018-002: The proposed rule to amend the FAR entitled "Protecting Life in Global Health Assistance" was withdrawn because the Presidential Memorandum regarding "The Mexico City Policy," dated January 23, 2017, has been revoked by the Memorandum on Protecting Women’s Health at Home and Abroad issued by President Biden on January 28, 2021.

FAR Case 2013-022: The proposed rule to amend the FAR entitled "Extension of Limitations on Contractor Employee Personal Conflicts of Interest" was withdrawn because the requirements of the underlying statute that directed consideration of a FAR change have been met.  

FAR Case 2011-001: The proposed rule to amend the FAR entitled "Organizational Conflicts of Interest" was withdrawn because of the amount of time that had elapsed since the proposed rule was published in 2011.

FAR Case 2012-015: The proposed rule to amend the FAR entitled "Small Business Set Asides for Research and Development Contracts" was withdrawn both because of the amount of time that has elapsed since the proposed rule was first published in 2012 and because the proposed changes were unnecessary or unhelpful. 

FAR Case 2019-007: A proposed rule would amend the FAR to implement changes to the SBA's regulations for the HUBZone Program.  

FAR Case 2021-008: A proposed rule would amend the FAR Part 25 Buy America requirements to comply with E.O. 14005 by providing for: (i) an increase to the domestic content threshold, a schedule for future increases, and a fallback threshold that would allow for products meeting a specific lower domestic content threshold to qualify as domestic products under certain circumstances; (ii) a framework for application of an enhanced price preference for a domestic product that is considered a critical product or is made up of critical components; and (iii) a post-award domestic content reporting requirement for contractors.  

FAR Case 2020-007: A proposed rule would amend the FAR to to implement section 873 of the NDAA for FY 2020, which provides for accelerated payments to contractors that are small businesses and to small business subcontractors by accelerating payments to their prime contractors.

FAR Case 2020-013: A proposed rule would amend the FAR to implement the final rule published by the SBA to implement section 825(a)(1) of the Carl Levin and Howard P. "Buck" McKeon National Defense Authorization Act (NDAA) for FY 2015, which requires women-owned small business (WOSB) concerns and economically disadvantaged women-owned small business (EDWOSB) concerns to be certified by the SBA, a Federal agency, a State government, or a national certifying entity approved by the SBA in the WOSB Program to be eligible for set-aside or sole-source awards. 

FAR Case 2021-016: In an advance notice of proposed rulemaking, the FAR Council announced it was considering amending the FAR to ensure that major federal agency procurements minimize the risk of climate change.  


Department of Defense FAR Supplement (DFARS)

DFARS Case 2018-D022: DoD adopted as final, with changes, the prior interim rule amending the DFARS to implement sections of the NDAAs for FY 2018 and 2019 prohibiting the use of covered telecommunications equipment or services from certain Chinese entities 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, as a substantial or essential component of any system, or as a critical technology as a part of any system.

DFARS Case 2020-D005: A final rule amended the DFARS to replace a legacy software application used for reporting the loss of Government property with new capabilities developed within the DoD enterprise-wide, eBusiness platform.  

DFARS Case 2018-D044: A final rule amended the DFARS to remove the DFARS clause 252.239–7006 ("Tariff Information") from the DFARS because the clause is no longer necessary. 

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

DFARS Case 2017-D042:
A final rule amended the DFARS to permit 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 contract closeout. 

DFARS Case 2018-D063: A final rule amended the DFARS to implement 10 U.S.C. 2330a, as amended by section 812 of the NDAA for FY 2017, which requires DoD to establish a data collection system to provide certain management information with regard to an awarded contract or task order that is valued in excess of $3 million and is for the following service acquisition portfolio groups: Logistics management services, equipment-related services, knowledge- based services, or electronics and communications services.

DFARS Case 2020-D030: A final rule amended the DFARS to implement section 2821 of the NDAA for FY 2020, which prohibits contracts for the acquisition of furnished energy for a covered military installation in Europe that is sourced from inside the Russian Federation.

DFARS Case 2021-D019:
A final rule amended the DFARS to implement section 888 of the NDAA for FY 2021 that rescinds the requirement for the use of firm-fixed-price contract types for foreign military sales unless an exception or waiver applies. 

DFARS Case 2019-D037: A final rule updated the DFARS to to modify internal processes for the conduct of peer reviews.

 

Proposed Rules

DFARS Case  2020-D030:
A proposed rule would amend the DFARS to implement a section of the NDAA for FY 2020 that prohibits contracts for the acquisition of energy for a covered military installation in Europe that is sourced from inside the Russian Federation.  

DFARS Case 2018-D055: A proposed rule would amend the DFARS to implement section 823 of the National Defense Authorization Act (NDAA) for FY 2019, which establishes a requirement for use of the best available information regarding past performance of subcontractors and joint venture partners when awarding DoD contracts for construction and architect-engineer services.

DFARS Case 2018-D009: A proposed rule would amend the DFARS to implement section 818 of the NDAA for FY 2018, which amends 10 U.S.C. 2305 (i) to enhance post-award debriefing rights for competitive negotiated contracts, task orders, and delivery orders that exceed $10 million and (ii) to provide offerors the opportunity, upon receiving a post-award debriefing, to submit follow-up questions related to the debriefing and to receive agency responses. Section 818 also amends 31 U.S.C. 3553(d) to extend the timeframe during which the contracting officer shall immediately suspend contract performance or terminate the awarded contract if a protest is filed.

DFARS Case 2021-D012: A proposed rule would amend the DFARS to implement section 820 of the NDAA for FY 2021, which expands the application of the expedited contract closeout authority of section 836 of the NDAA for FY 2017, implemented at DFARS 204.804(3)(i)(A), to certain contracts or groups of contracts that were awarded at least 7 or 10 fiscal years before the current fiscal year and have completed performance or delivery at least four years prior to the current fiscal year. 


DFARS Case 2019-D045: A proposed rule would amend the DFARS to implement section 2(a)(i) of Executive Order 13881 "Maximizing Use of American-Made Goods, Products, and Materials"), which changes the percentages used to determine whether a product is domestic or foreign under the Buy American statute .


DFARS Case 2020-D008: A proposed rule would amend the DFARS to implement section 803 of the NDAA for FY 2020, which: (i) prohibits contracting officers from determining that the price of a contract or subcontract is fair and reasonable based solely on historical prices paid by the Government; and (ii) when an offeror fails to make a good faith effort to comply with a reasonable request to submit data; and (ii) states that an offeror is ineligible for award if the contracting officer is unable to determine, by any other means, that the proposed prices are fair and reasonable, unless the head of the contracting activity (HCA) determines that it is in the best interest of the Government to make the award to that offeror. 

The DoD proposed updates to 32 C.F.R. Part 159 to incorporate changes including administrative updates and clarifications regarding private security contractors performing duties while under contract to DoD in support of a contingency operations, humanitarian or peace operations, or other military operations or exercises. 

DFARS Case 2021-D010: A proposed rule would amend the DFARS subpart 225.70 to implement section 817 of the NDAA for FY 2021, which amends 10 U.S.C. 2533a (the Berry Amendment), by reducing the dollar threshold at which an acquisition is excepted from the source restrictions of the Berry Amendment to an amount not to exceed $150,000.

DFARS Case 2017-D018: A proposed rule would revise the DFARS to implement section 824 of the NDAA for FY 2017, which makes amendments regarding the treatment of IR&D expenditures and requires the DCAA to provide an annual report to Congress on IR&D and bid and proposal expenditures.  

DFARS Case 2019-D010: A proposed rule would amend the DFARS to implement a section of the National Defense Authorization Act (NDAA) for FY 2019, as amended by a section of the NDAA for FY 2020, that requires accounting firms that provide financial statement auditing or audit remediation services in support of the Financial Improvement and Audit Remediation Plan to provide to DoD a statement setting forth the details of any disciplinary proceedings with respect to the accounting firm or its associated persons before any entity with the authority to enforce compliance with rules or laws applying to audit services offered by the accounting firm. DoD policy extends this requirement to firms other than accounting firms.

DFARS Case 2021-D025: A proposed rule would amend the DFARS to implement a section of the NDAA for FY 2021 that amends the types of line items and contract options that may be included, subject to limitations, in certain contracts initially awarded pursuant to competitive solicitations. 

DFARS Case 2020-D027: A proposed rule would amend  the DFARS to revise the requirements related to the assumption of risk associated with DFARS 252.228–7001 (the "Ground and Flight Risk" clause ).  

Other Agencies 

DOJ

The DOJ proposed to revise the Justice Acquisition Regulations (JAR) in their entirety in order to update and streamline agency procurement actions consistent with the Federal Acquisition Reform Act, and the Federal Acquisition Streamlining Act.

DOL

The DOL's Office of Federal Contract Compliance Programs has issued a proposed rule to rescind the regulations established in the final rule titled "Implementing Legal Requirements Regarding the Equal Opportunity Clause’s Religious Exemption," which took effect on January 8, 2021.

Effective January 30, 2022, a final rule by the DOL implements Executive Order 14026 regarding raising the minimum wage requirement for federal contractors.

 EPA

The EPA proposed to amend its EPAAR provisions concerning electronic submission of invoices via the Invoice Processing Platform to account for differences in contract types.

A final rule amended the EPAAR to address common Commercial Supplier Agreement terms that are inconsistent with or create ambiguity with Federal Law, to create a new subpart for class deviations, and to update its "Fixed Rates for Services—Indefinite Delivery/ Indefinite Quantity Contract" clause.  

General Services Administration (GSA)

GSAR Case 2021-G509: A direct final rule amended the GSAR to remove the guidance in Part 553 because it is outdated and does not coincide with the language at acquisition.gov.  

GSAR Case 2015-G505: Effective January 20, 2022, a final rule amends the GSAR to remove text regarding internal architect-engineer selection procedures and move it into the GSA's Acquisition Manual (GSAM).

GSAR Case 2020-G521: The GSA proposed to amend GSAR 532.905–70 so it no longer requires contracting officers to obtain approval of legal counsel before processing final payments for construction and building service contracts where, after 60 days, the contracting officer is unable to  obtain a release of claims from the contractors because legal review is not a statutory requirement. 

GSAR Case 2020-G525: The GSA: (i) amended the GSAR to clarify the requirements for Personal Identity Verification (PIV) and is revising a GSAR clause to provide a more specific reference to the location of the GSA credentialing handbook: and (ii) moved language addressing internal operating procedures concerning option exercise from the GSAR to the non-regulatory General Services Administration Acquisition Manual (GSAM). 

GSAR Case 2021-G527: The GSA issued an interim rule amending the the GSAR to implement Section 3 and Section 5 requirements of the Secure Federal Leases from Espionage and Suspicious Entanglement Act (the Act or Secure Federal LEASEs Act), which address the risks of foreign ownership of government-leased real estate and require the disclosure of ownership information for high-security space leased to accommodate a Federal agency. 

GSAR Case 2020-G509: The GSA, inter alia, proposed to amend subpart 552.2 of its acquisition regulation (the "GSAR") by adding the new GSAR clause 552.238–116 ("Option to Extend the Term of the FSS Contract"), which incorporates FSS clause I–FSS–163 ("Option to Extend the Term of the Contract (Evergreen)." 

GSAR Case 2016-G511: The GSA proposed to amend the GSAR to streamline and update requirements for contracts that involve GSA information systems by, inter alia, eliminating a duplicative and outdated provision and clause from the GSAR and replacing the outdated text with existing policies of the GSA Office of the Chief Information Officer that provide centralized guidance to ensure consistent application across the organization.

GSAR Case 2020-G521: A final rule amended the GSAR to revise internal agency approval procedures for processing a final payment for construction and building service contracts when, after 60 days, a contracting officer is unable to obtain a release of claims from a contractor.  

GSAR Case 2021-G522: A proposed rule would amend the GSAR to implement Section 4 requirements of the Secure Federal Leases from Espionage and Suspicious Entanglements Act, which addresses the risks of foreign ownership of government-leased real estate and requires the disclosure of ownership information for high-security space leased to accommodate a federal agency. 

HHS

HHS proposed to amend its acquisition regulation (HHSAR) in order to support the Electronic Invoicing Implementation Project and HHS’s transition to the Department of the Treasury’s Invoice Processing Platform.

Interior

The Department of the Interior proposed to revise regulations implementing the Buy Indian Act in order to, inter alia: (i) eliminate barriers to Indian Economic Enterprises from competing on certain construction contracts; (ii) expand Indian Economic Enterprises’ ability to subcontract construction work consistent with other socio-economic set-aside programs; and (iii) give greater preference to Indian Economic Enterprises when a deviation from the Buy Indian Act is necessary.  

Small Business Administration (SBA)

Relying on its recently revised "Size Standards Methodology," the SBA proposed to increase its receipts-based and employee-based small business size standards for 49 industries in NAICS sectors related to Wholesale Trade and Retail Trade, including 14 industries in NAICS Sector 42 (Wholesale Trade) and 35 industries in NAICS Sector 44–45 (Retail Trade).

The SBA proposed (i) to use a 24-month average to calculate a business concern’s number of employees for eligibility purposes in all of SBA’s programs and (ii) to permit business concerns in its Business Loan, Disaster Loan, and Small Business Investment Company (SBIC) Programs to use a 5-year averaging period, in addition to the existing 3-year averaging period, for the purposes of calculating annual average receipts. These proposed changes will allow larger small businesses to retain their small business size status for longer, and some mid-sized businesses to regain small business status.  

The SBA proposed to amend its regulations to implement new provisions of the NDAA for FY 2021, specifically to provide new methods for small business government contractors to obtain past performance ratings to be used with offers on prime contracts. A small business contractor may use a past performance rating for work performed as a member of a joint venture or for work performed as a first-tier subcontractor. The proposed rule would update the requirements for small business subcontracting plans to add a requirement for prime contractors to report past performance to a first-tier, small business subcontractor when requested by that small business.  

State Department

The Department of State adopted as final an interim rule amending the its Acquisition Regulation (the DOSAR) to provide new guidance prescribing more stringent safety requirements for certain overseas construction and services projects.  

The Department proposed to add section 615.209–70 to the DOSAR, requiring the Contracting Officer to insert a new clause, "Examination of Records" (proposed section 652.215–70), in all solicitations and contracts other than negotiated contracts.  

Transportation

The Department of Transportation proposed to extensively revise and update its entire acquisition regulation (the "TAR")  to streamline the regulation, to revise or remove policy that has been superseded by changes in the FAR, to remove procedural guidance that is internal to DOT and move it to the Transportation Acquisition Manual ("TAM") as appropriate, and to incorporate new regulations or policies required to implement or supplement the FAR to execute DOT’s unique mission and responsibilities.  

USAID

The United States Agency for International Development (USAID) seeks public comments by February 14, 2022, concerning a proposed rule that implements USAID requirements for managing digital information data as a strategic asset to inform the planning, design, implementation, monitoring, and evaluation of USAID's foreign assistance programs. This proposed rule incorporates a new policy on Digital Information Planning, Collection, and Submission Requirements and the corresponding clause, as well as a new clause entitled "Activity Monitoring, Evaluation, and Learning Plan Requirements" into USAID's acquisition regulation (the "AIDAR").  

VA

As part of its ongoing project to revise its acquisition regulation (VAAR), the VA issued a final rule, effective November 1, which substantially revises multiple sections concerning competition requirements, and, inter alia, adds subpart 806.1 ("Full and Open Competition"), section 806.102 ("Use of competitive procedures"), and subpart 806.2 ("Full and Open Competition After Exclusion of Sources"), which contains two sections: 806.203 ("Set- asides for small business concerns") and, and 806.270 ("Set-asides for verified Veteran-owned small businesses").

In another part of its ongoing efforts to update the VAAR, the VA proposed to add a part covering the "Acquisition of Information Technology" and to revise coverage concerning "Other Contracts for Goods and Services" involving mandatory information, privacy, and security requirements to include policy concerning VA Sensitive Personal Information, information security, and liquidated damages requirements for data breach in the following parts: "Administrative and Information Matters," "Describing Agency Needs," "Protection of Privacy and Freedom of Information," as well as "Acquisition of Commercial Items.  

Also effective November 1, the VA adopted a final rule amending its acquisition regulation concerning procedures for obtaining health care resources

The VA proposed to amend its acquisition regulation (the VAAR) to revise VAAR coverage concerning Simplified Procedures for Health-Care Resources as well as an affected solicitation provisions and contract clauses.


 

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