[Federal Register: April 25, 2000 (Volume 65, Number 80)]
[Rules and Regulations]               
[Page 24315-24317]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]

[[Page 24315]]


Part IV

Department of Defense

General Services Administration

National Aeronautics and Space Administration

48 CFR Chapter 1 and Parts 2, 16, 37, et al.

Federal Acquisition Circular 97-17; Introduction; Federal Acquisition 
Regulations; Competition Under Multiple Award Contracts; Determination 
of Price Reasonableness and Commerciality; Caribbean Basin Trade 
Initiative; Utilization of Indian Organizations and Indian-Owned 
Economic Enterprises; Ocean Transportation by U.S. Flag Vessels; 
Technical Amendments; Small Entity Compliance Guide; Final Rules

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48 CFR Chapter 1

Federal Acquisition Circular 97-17; Introduction

AGENCIES: Department of Defense (DoD), General Services Administration 
(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Summary presentation of final rules.


SUMMARY: This document summarizes the Federal Acquisition Regulation 
(FAR) rules issued by the Civilian Agency Acquisition Council and the 
Defense Acquisition Regulations Council (Councils) in this Federal 
Acquisition Circular (FAC) 97-17. The Councils drafted these FAR rules 
using plain language in accordance with the White House memorandum, 
Plain Language in Government Writing, dated June 1, 1998. The Councils 
wrote all new and revised text using plain language. A companion 
document, the Small Entity Compliance Guide (SECG), follows this FAC. 
The FAC, including the SECG, is available via the Internet at http://

DATES: For effective dates and comment dates, see separate documents 
which follow.

Building, Washington, DC 20405, (202) 501-4755, for information 
pertaining to status or publication schedules. For clarification of 
content, contact the analyst whose name appears in the table below in 
relation to each FAR case or subject area. Please cite FAC 97-17 and 
specific FAR case numbers. Interested parties may also visit our 
website at http://www.arnet.gov/far.

      Item                Subject           FAR case        Analyst
I...............  Competition under          1999-014  De Stefano.
                   Multiple Award
II..............  Determination of Price     1998-300  Olson.
                   Reasonableness and        (98-300)
III.............  Caribbean Basin Trade      2000-003  Linfield.
IV..............  Utilization of Indian      1999-301  Moss.
                   Organizations and         (99-301)
                   Indian-Owned Economic
V...............  Ocean Transportation       1998-604  Klein.
                   by U.S.-Flag Vessels.     (98-604)
VI..............  Technical Amendments..

SUPPLEMENTARY INFORMATION: Summaries for each FAR rule follow. For the 
actual revisions and/or amendments to these FAR cases, refer to the 
specific item number and subject set forth in the documents following 
these item summaries.
    Federal Acquisition Circular 97-17 amends the FAR as specified 

Item I--Competition Under Multiple Award Contracts (FAR Case 1999-

    This rule amends FAR 2.101, Subpart 16.5, and 37.201 to clarify 
what the contracting officer should consider when planning for and 
placing orders under multiple award contracts. This rule affects all 
contracting officers that award multiple award contracts or place task 
or delivery orders under them. The rule--
    <bullet> Requires the contracting officer to include the name, 
address, telephone number, facsimile number, and e-mail address of the 
agency task and delivery order ombudsman in the solicitation and 
contracts if multiple awards will be made;
    <bullet> Stresses key things the contracting officer must consider 
when deciding if a multiple award contract is appropriate, such as--
    <bullet> Avoiding situations in which awardees specialize 
exclusively in one or a few areas within the statement of work;
    <bullet> The scope and complexity of the contract requirement;
    <bullet> The expected duration and frequency of task or delivery 
    <bullet> The mix of resources a contractor must have to perform 
expected task or delivery order requirements; and
    <bullet> The ability to maintain competition among the awardees 
throughout the contract's period of performance;
    <bullet> Requires contracting officers to document their decision 
on whether or not to use multiple awards in the acquisition plan or 
contract file;
    <bullet> Emphasizes the use of performance-based statements of 
    <bullet> Provides guidance on how to develop tailored order 
placement procedures;
    <bullet> Requires contracting officers to consider cost or price as 
one of the factors in each selection decision for orders;
    <bullet> Requires contracting officers to establish prices for each 
order that was not priced under the basic contract using the policies 
and methods in Subpart 15.4; and
    Requires contracting officers to document the order placement 
rationale and price in the contract file.

Item II--Determination of Price Reasonableness and Commerciality 
(FAR Case 1998-300) (98-300)

    This final rule makes a minor editorial change to FAR 15.403-3 and 
converts the interim rule, which was published in FAC 97-14 as Item VI, 
as final. The editorial change amends the cross reference at 15.403-
3(c)(1). The remainder of the interim rule that has been in effect 
since September 24, 1999, remains the same. The primary amendments made 
in the interim rule that are made final in this rule--
    <bullet> Clarify procedures associated with obtaining information 
other than cost or pricing data when acquiring commercial items; and
    <bullet> Establish that offerors who fail to comply with 
requirements to provide the information shall be ineligible for award.

Item III--Caribbean Basin Trade Initiative (FAR Case 2000-003)

    This final rule amends FAR Parts 25.003, 25.400, 25.404, and the 
clause at 52.225-5, Trade Agreements, to implement the determination of 
the United States Trade Representative to renew the treatment of 
Caribbean Basin country end products as eligible products under the 
Trade Agreements Act, with the exception of end products from the 
Dominican Republic and Honduras. This rule applies only if an 
acquisition is subject to the Trade Agreements Act (see FAR 25.403). 
Offers of end products from the Dominican Republic and Honduras are no 
longer acceptable under such acquisitions unless the contracting

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officer does not receive any offers of U.S.-made end products or 
eligible products (designated, Caribbean Basin, or NAFTA country end 

Item IV--Utilization of Indian Organizations and Indian-Owned 
Economic Enterprises (FAR Case 1999-301) (99-301)

    This final rule amends FAR Subpart 26.1 and the clause at 52.226-1 
to delete DoD-unique requirements relating to Indian Organizations and 
Indian-Owned Economic Enterprises from the FAR.

Item V--Ocean Transportation by U.S.-Flag Vessels (FAR Case 1998-
604) (98-604)

    This final rule amends FAR 47.504 and the clauses at 52.212-5, 
52.213-4, and 52.247-64 to apply the preference for U.S.-flag vessels 
to contracts awarded using simplified acquisition procedures. This rule 
only affects civilian agency contracts that may involve ocean 
transportation of supplies subject to the Cargo Preference Act of 1954.
    The rule also adds Alternate I of 52.247-64, Preference for 
Privately Owned U.S.-Flag Commercial Vessels, to the clause at 52.212-
5, Contract Terms and Conditions Required to Implement Statutes or 
Executive Orders--Commercial Items. Alternate I applies when the 
supplies furnished under the contract must be transported exclusively 
in privately owned U.S.-flag vessels.

Item VI--Technical Amendments

    These amendments update references and make editorial changes at 
sections 6.304, 31.101, 32.411, 32.502-4, 32.805, 42.1204, and 42-1205.

    Dated: April 13, 2000.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.
    Federal Acquisition Circular (FAC) 97-17 is issued under the 
authority of the Secretary of Defense, the Administrator of General 
Services, and the Administrator for the National Aeronautics and Space 
    All Federal Acquisition Regulation (FAR) changes and other 
directive material contained in FAC 97-17 are effective April 25, 2000, 
except for Items IV and V, which are effective June 26, 2000. Each rule 
is applicable to solicitations issued on or after the rule's effective 

    Dated: April 5, 2000.
R.D. Kerrins, Jr.,
Acting Director, Defense Procurement.

    Dated: April 11, 2000.
Sue McIver,
Acting Deputy Associate Administrator, Office of Acquisition Policy, 
General Services Administration.

    Dated: April 3, 2000.
Tom Luedtke,
Associate Administrator for Procurement, National Aeronautics and Space 
[FR Doc. 00-10130 Filed 4-24-00; 8:45 am]