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FEDERAL CONTRACTS PERSPECTIVE

Federal Acquisition Developments, Guidance, and Opinions


March 2005
Vol. VI, No. 3

CONTENTS


DFARS Transformation Addresses Taxes, Services, Utilities, Extraordinary Relief
Nonmanufacturer Rule Waived for Adhesives, Sealants
Agencies Must Justify eTravel Missed Deadline
Transportation Acquisition Regulation Reissued
Automobile Reimbursement Increased to 40.5 Cents/Mile



DFARS Transformation Continues by Addressing
Taxes, Services, Utilities, Extraordinary Relief

The Department of Defense (DOD) continued transforming the Defense Federal Acquisition Regulation Supplement (DFARS) by updating and streamlining some procedures and provisions, and removing unnecessary and obsolete ones.



Nonmanufacturer Rule Waived for Adhesives, Sealants

The Small Business Administration (SBA) has decided to waive the nonmanufacturer rule for adhesives and sealants manufacturing under North American Industry Classification System (NAICS) code 325520 because no small business manufacturers are currently supplying these classes of products to the federal government. This waiver allows otherwise qualified nonmanufacturers to supply general aviation turboprop aircraft of any domestic manufacturer on a federal contract set aside for small businesses, set aside for service-disabled veteran-owned small businesses, or awarded through the SBA's 8(a) program. (EDITOR'S NOTE: For more on the proposed waiver, see the January 2005 Federal Contracts Perspective article "One Nonmanufacturer Rule Waived, One Proposed, One Terminated.")



Agencies Must Justify eTravel Missed Deadline

The General Services Administration (GSA) is requiring all agencies that did not award a task order to an eTravel Service (eTS) vendor by December 31, 2004, to submit a justification for missing the deadline, and to request that GSA grant an exception from the eTS implementation requirement. GSA had established December 31, 2004, as the deadline for all agencies subject to the Federal Travel Regulations (FTR) (with the exception of DOD and the government of the District of Columbia) to award a task order to an eTS vendor, and fully migrate to eTS agency-wide no later than September 30, 2006. (EDITOR'S NOTE: The authorized eTS vendors are CW Government Travel, EDS Corporation, and Northrup Grummann Mission Systems.) All agencies met the December 31, 2004, date except for the Department of Education, the National Aeronautics and Space Administration (NASA), and the Social Security Administration.

GSA published a notice on February 28 stating, "Each agency that encountered a delay with its eTS acquisition and has not yet implemented eTS as required under the FTR must submit a request for an exception to the Administrator of General Services, 1800 F Street, NW, Washington, DC 20405, for consideration of approval. The request must include a complete justification outlining why you need an extension and the date when your agency will award a task order or will agree to be cross-serviced by a franchise organization. Please submit your request and supporting information no later than March 30, 2005."



Transportation Acquisition Regulation Reissued

The Department of Transportation (DOT) is reissuing the Transportation Acquisition Regulation (TAR), replacing the 1994 edition with a 2004 edition that is consistent with the 2001 edition of the FAR. The 2004 TAR has been substantially revised to eliminate coverage that is unnecessary or duplicates the FAR or other directives; update references to obsolete policies, procedures, and organizations; incorporate electronic links to references such as provisions to the FAR, U.S. Code, and the Code of Federal Regulations; and adopt by reference executive orders and Office of Federal Procurement Policy (OFPP) policy letters. Only coverage that is suitable and necessary will be retained in the regulation.

The goal of rewriting the TAR was to ensure it would contain only current and appropriate coverage for a department-level acquisition regulation, and to remove and re-designate any internal agency guidance from the TAR to the Transportation Acquisition Manual (TAM).

The most noticeable changes to the TAR involve the removal of all U.S. Coast Guard specific language and clauses because the Coast Guard was transferred to the Department of Homeland Security on March 1, 2003.

Comments on the revised TAR should be filed with the Docket Management System, U.S. Department of Transportation, Room PL-401, 400 Seventh Street, SW, Washington, DC 20590-0001; or through the internet to http://dms.dot.gov.



Automobile Reimbursement Increased to 40.5 Cents/Mile

The General Services Administration (GSA) is amending Federal Travel Regulation (FTR) 301-10.303, What am I reimbursed when use of a POV is determined by my agency to be advantageous to the Government?, to increase the 2005 mileage reimbursement rate for use of a privately owned automobile on official travel from 37.5 cents per mile to 40.5 cents per mile; for use of a privately owned airplane from 99.5 cents per mile to $1.07 per mile; and the cost of operating a privately owned motorcycle from 28.5 cents per mile to 30.5 cents per mile. This increase reflects the current costs of operation as determined in GSA's cost studies.

The same statute that directs GSA to establish the POV mileage reimbursement rates also provides that the automobile reimbursement rate cannot exceed the single standard mileage rate established by the Internal Revenue Service (IRS). The IRS announced a new single standard mileage rate for automobiles of 40.5 cents per mile effective January 1, 2005, so the new FTR rate of 40.5 cents per mile conforms with the IRS rate.



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