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FEDERAL CONTRACTS PERSPECTIVE

Federal Acquisition Developments, Guidance, and Opinions


April 2005
Vol. VI, No. 4

CONTENTS


FAC 2005-01 Addresses Cost Accounting Standards Administration
Rejected DPAS Orders Can Be E-Mailed
Acquisition Functions Addressed in DFARS Changes
OMB Releases Third Set of FY 2004 FAIR Act Inventories
FAC 2005-02 Finalizes Service-Disabled Veterans Rule



FAC 2005-01 Addresses Cost Accounting Standards
Administration, Architect-Engineer Services

Immediately upon issuance of the 2005 version of the Federal Acquisition Regulation (FAR) (which is available in HTML and PDF formats at http://www.acqnet.gov/far), it was amended by Federal Acquisition Circular (FAC) 2005-01, which addresses Cost Accounting Standards administration, architect-engineering services, the addition of landscaping and pest control services to the Small Business Competitiveness Demonstration Program, and other provisions of the Fiscal Year (FY) 2003 and FY 2004 defense authorization acts.



Rejected DPAS Orders Can Be E-Mailed

Defense Priorities and Allocations System (DPAS) regulations in 15 CFR 700.13, Acceptance and Rejection of Rated Orders, have been amended to allow a person who has rejected a rated order to give his or her reasons for the rejection through electronic means rather than requiring the person to submit the rationale in writing. For more on the proposed rule, which was adopted without changes, see the December 2004 Federal Contracts Perspective article "Rejected DPAS Orders Could Be Transmitted Electronically."



Acquisition Functions Addressed in DFARS Changes

This past month, the Department of Defense (DOD) amended the Defense FAR Supplement (DFARS) to implement provisions of the National Defense Authorization Act for Fiscal Year 2005 (Public Law 108-375) and to continue the "DFARS transformation." In addition, DOD has proposed four additional DFARS transformation changes, and one change based on a reinterpretation of statutory language. (EDITOR'S NOTE: For more on the acquisition-related provisions of Public Law 108-375, see the see the November 2004 Federal Contracts Perspective article "FY 2005 Defense Authorization Act Directs Review of GSA Procedures, Permits A-76 Protests by Feds." For more on the DFARS transformation, see the December 2004 Federal Contracts Perspective article "DFARS Transformation in Full Gear, 'Procedures, Guidance, and Information' Added.")



OMB Releases Third Set of FY 2004 FAIR Act Inventories

On March 10, the Office of Management and Budget (OMB) released the third set of Fiscal Year 2004 Commercial Activities Inventories of non-governmental functions being performed by government agencies. These inventories are required to be compiled and made available to the public by the Federal Activities Inventory Reform (FAIR) Act of 1998. Inventories in this third set are from the Departments of Commerce, Interior, Justice, Labor, the U.S. Agency for International Development; and several smaller agencies.



FAC 2005-02 Finalizes Service-Disabled Veterans Rule

FAC 2001-23, which consisted of an interim rule that implemented the Service-Disabled Veteran-Owned Small Business (SDVOSB) program, is finalized by FAC 2005-02 with minor changes. FAC 2001-23 implemented the SDVOSB program by adding FAR Subpart 19.14, Service-Disabled Veteran-Owned Small Business, which was patterned after the Historically Underutilized Business Zone (HUBZone) program implemented in FAR Subpart 19.13. Also, SBA finalized its interim rule implementing the SDVOSB program (issued along with FAC 2001-23) with changes to the protest procedures (see the June 2004 Federal Contracts Perspective article "FAC 2001-23, SBA Institute Service-Disabled Veteran-Owned Small Business Program").

Thirty-five comments on FAC 2001-23 were received from 17 respondents, and 45 comments were received in response to SBA's interim rule. As a result of those comments, the final rules differ from the interim rules in these significant ways:



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