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FEDERAL CONTRACTS PERSPECTIVE

Federal Acquisition Developments, Guidance, and Opinions

September 2007
Vol. VIII, No. 9

CONTENTS

FAC 2005-19 Addresses Personal Identity
Verification Products, Free Trade Agreements

Federal Acquisition Circular (FAC) 2005-19 makes a multitude of changes to the Federal Acquisition Regulation (FAR), none of which are truly significant. Among the more important FAR changes address products and services for personal identify verification, free trade agreements, reporting purchases from overseas sources, small business credit for Alaska Native Corporations and Indian Tribes, and vending machine acceptance of $1 coins.

• Requirement to Purchase Approved Authentication Products and Services: This finalizes, with editorial changes, the proposed rule that would add FAR 4.1302, Acquisition of Approved Products and Services for Personal Identity Verification, to address the acquisition of products and services that comply with requirements in Homeland Security Presidential Directive (HSPD) 12, "Policy for a Common Identification Standard for Federal Employees and Contractors," and Federal Information Processing Standards Publication (FIPS PUB) 201, "Personal Identity Verification of Federal Employees and Contractors." (EDITOR'S NOTE: OMB guidance on the implementation of HSPD-12 is available at http://www.whitehouse.gov/omb/memoranda/fy2005/m05-24.pdf (HSPD-12 is Attachment B to the guidance). FIPS PUB 201 is available at http://csrc.nist.gov/publications/fips/fips201-1/FIPS-201-1-chng1.pdf.)
  
  FAR 4.1302 requires that "agencies must purchase only approved personal identity verification products and services." It goes on to provide that agencies may use either of two approaches to comply with this requirement: (1) acquire the approved products and services from the General Services Administration (GSA), Federal Supply Schedule 70, Special Item Number (SIN) 132-62, HSPD-12 Product and Service Components; or (2) certifying the products and services procured meet all applicable federal standards and requirements; ensuring interoperability and conformance to applicable federal standards for the lifecycle of the components; and maintaining a written plan for ensuring ongoing conformance to applicable federal standards for the lifecycle of the components. Also, FAR 4.1302 cites http://www.idmanagement.gov as a source of additional information on personal identity verification products and services for citizens, businesses, and government entities.
  
  The proposed rule was published on August 23, 2006 (see the September 2006 Federal Contracts Perspective article "Proposed FAR Rules Would Address ID Verification, IPv6"). No comments on the proposed rule were submitted, so the proposed rule is adopted as final with minor editorial changes.
  
  
• Free Trade Agreements -- El Salvador, Honduras, and Nicaragua: This adopts as final, without change, the interim rule that amended FAR Part 25, Foreign Acquisition, and the corresponding clauses in FAR Part 52 to implement the Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR) with respect to El Salvador, Honduras, and Nicaragua.
  
  This final rule adds El Salvador, Honduras, and Nicaragua to the definition of "Free Trade Agreement country" in FAR 25.003, Definitions, and deletes El Salvador, Honduras, and Nicaragua from the definition of "Caribbean Basin country" because signatories to the CAFTA-DR cease being beneficiary countries under the Caribbean Basin Economic Recovery Act (for more on the provisions of the Caribbean Basin Economic Recovery Act, see FAR 25.405, Caribbean Basin Trade Initiative).
  
  The CAFTA-DR waives the Buy American Act for acquisitions of supplies and services that exceed $64,786 and for construction contracts that exceed $7,407,000 (with the same exceptions that apply to the North American Free Trade Agreement (NAFTA) and other Free Trade Agreements -- see FAR 25.401, Exceptions).
  
  No comments were submitted on the interim rule, so it is converted to a final rule without change. For more on the interim rule, see the July 2006 Federal Contracts Perspective article "FAC 2005-10 Mandates Electronic Wage Determinations."
  
  
• Free Trade Agreements -- Bahrain and Guatemala: This adopts as final, without change, the interim rule that amended FAR Part 25 and the corresponding clauses in FAR Part 52 to implement the United States -- Bahrain Free Trade Agreement and the CAFTA-DR with respect to Guatemala.
  
  This final rule adds Bahrain and Guatemala to the definition of "Free Trade Agreement country" in FAR 25.003, Definitions, and deletes Guatemala from the definition of "Caribbean Basin country" because signatories to the CAFTA-DR cease being beneficiary countries under the Caribbean Basin Economic Recovery Act. Also, the rule adds Bahrain to the definition of "designated country" (Guatemala, as a "Caribbean Basin country," was already a "designated country").
  
  The Buy American waiver thresholds for Guatemala are the same as for the other CAFTA-DR countries: $64,786 for supplies and services, and $7,407,000 for construction. The Bahrain Free Trade Agreement thresholds are $193,000 for supplies and services, and $8,422,165 for construction.
  
  No comments were submitted on the interim rule, so it is converted to a final rule without change. For more on the interim rule, see the December 2006 Federal Contracts Perspective article "FAC 2005-14 Addresses Trade Agreements, Contractor IDs."
  
  
• New Designated Countries -- Bulgaria, Dominican Republic, and Romania: This interim rule amends FAR Part 25 and the corresponding clauses in FAR Part 52 to implement the CAFTA-DR with respect to the Dominican Republic, and adds Bulgaria and Romania to the list of World Trade Organization Government Procurement Agreement (WTO GPA) countries.
  
  The rule adds the Dominican Republic to the definition of "Free Trade Agreement country" in FAR 25.003, Definitions, and deletes the Dominican Republic from the definition of "Caribbean Basin country." Also, the rule adds Bulgaria and Romania to the list of WTO GPA countries, which makes them, by definition, "designated countries" (the Dominican Republic, as a "Caribbean Basin country," was already a "designated country").
  
  The Buy American waiver thresholds for the Dominican Republic are the same as for the other CAFTA-DR countries: $64,786 for supplies and services, and $7,407,000 for construction. The WTO GPA thresholds apply to Bulgaria and Romania, and those thresholds are $193,000 for supplies and services, and $7,407,000.
  
  Comments on the interim rule must be submitted no later than October 16, 2007, by any of the following means: (1) eRulemaking Portal: http://www.regulations.gov; (2) fax: 202-501-4067; or (3) mail: General Services Administration, Regulatory Secretariat (VIR), 1800 F Street, NW, Room 4035, ATTN: Laurieann Duarte, Washington, DC 20405. Identify such comments as "FAC 2005-19, FAR Case 2006-028."
  
  
• Reporting of Purchases from Overseas Sources: This adopts as final, with a minor change, the interim rule that required the inclusion of new FAR 52.225-18, Place of Manufacture, in solicitations that are predominantly for the acquisition of manufactured end products. The clause requires offerors to indicate whether the place of manufacture of the end products it expects to provide is predominantly in the United States or outside the United States. A corresponding requirement was added to FAR 52.212-3, Offeror Representations and Certifications -- Commercial Items.
  
  One comment was received regarding the interim rule, but no changes were made as a result of the comment. However, the interim rule implemented Section 837 of the Transportation, Treasury, Housing and Urban Development, the Judiciary, the District of Columbia, and Independent Agencies Appropriations Act, 2006 (Public.Law 109-115), so FAR 25.004, Reporting of Acquisition of End Products Manufactured Outside the United States, cited Section 837. Subsequently, Section 8306 of the U.S. Troop Readiness, Veterans' Care, Katrina Recovery, and Iraq Accountability Appropriations Act, 2007 (Public Law 110-28), amended the Buy American Act (41 U.S.C. 10a) to include an agency reporting requirement for acquisition of articles manufactured outside the United States. Therefore, the statutory citation at FAR 25.004(a) is amended in this final rule to cite 41 U.S.C. 10a rather than Section 837 of Public Law 109-115.
  
  For more on the interim rule, see the October 2006 Federal Contracts Perspective article "Micro-Purchase, Cost or Pricing Data, 8(a) Competition Thresholds Adjusted for Inflation."
  
  
• Small Business Credit for Alaska Native Corporations and Indian Tribes: This finalizes, with changes, the proposed rule that would amend FAR Subpart 19.7, The Small Business Subcontracting Program, to permit subcontracts awarded to Alaska Native Corporations (ANCs) and Indian tribes to be counted towards a contractor's goals for subcontracting with small business and small disadvantaged business (SDB) concerns, regardless of the size of the ANC or Indian tribe.
  
  Contractors required to submit a small business subcontracting plan are now required to include separate percentage goals for subcontracts to ANC and Indian tribes.
  
  This rule implements Section 702 of the Emergency Supplemental Act, 2002 (Public Law 107-117), as amended by Section 3003 of the 2002 Supplemental Appropriations Act for Further Recovery From and Response to Terrorist Attacks on the United States (Public Law 107-206), which provides that subcontracts awarded to ANCs and any of their direct and indirect subsidiary corporations, joint ventures, and partnerships shall be counted towards the satisfaction of a contractor's goal for subcontracting with small business and SDB concerns. This provision also applies to Indian tribes and Indian-owned economic enterprises. Such credit is taken even when the ANC or Indian tribe is "other than small" under the Small Business Administration (SBA) size regulations.
  
  Twenty-eight respondents submitted comments on the proposed rule. Among the differences between the proposed rule and the final rule that were the result of comments are:
  
  
  • Indian-owned economic enterprises are included under the definition of Indian tribes;
    
    
  • The proposed revisions to Standard Form 294, Subcontracting Report for Individual Contracts, and Standard Form 295, Summary Subcontract Report, would have included ANCs and Indian tribes in the HUBZone category, but they have been removed;
    
    
  • The proposed revisions to SF 294 and SF 295 would have permitted large ANCs and Indian tribes to be counted as both large and small businesses. The two forms have been corrected to require that they be counted as small businesses only.
  
  For more on the proposed rule, see the July 2005 Federal Contracts Perspective article "FAR to Address Alaskan, Indian Subcontracting Credit."
  
  
• Accepting and Dispensing of $1 Coin: This interim rule implements the Presidential $1 Coin Act of 2005 (Public Law 109-145), which requires the Secretary of the Treasury to mint and issue annually four new $1 coins bearing the likenesses of the presidents of the United States in the order of their service and to continue to mint and issue "Sacagawea-design" coins for circulation. To promote circulation of the coins, Section 104 of the law requires that federal agencies take action so that entities that operate any business, including vending machines, on any premises owned by the United States or under the control of any federal agency are capable of accepting and dispensing $1 coins by January 1, 2008.
  
  To implement this statutory requirement, this interim rule adds FAR 37.116, Accepting and Dispensing of $1 Coin, which requires the inclusion of FAR 52.237-11, Accepting and Dispensing of $1 Coin, in solicitations and contracts involving business operations conducted in U.S. coins and currency, including vending machines, on any premises owned by the United States or under the control of any agency or instrumentality of the United States. Covered contracts that extend beyond the January 1, 2008, deadline will have to be modified to include the clause.
  
  Comments on this interim rule must be submitted no later than October 16, 2007, by any of the means mentioned above. Identify comments on this interim rule as "FAC 2005-19, FAR Case 2006-027."
  
  
• Emergency Acquisitions: This finalizes, with changes, the interim rule that added FAR Part 18, Emergency Acquisitions, to provide a single reference to acquisition flexibilities that may be used to facilitate and expedite acquisitions of supplies and services during emergency situations.
  
  Five respondents submitted comments on the interim rule. As a result of those comments, the following revisions are made:
  
  
  • The additional flexibilities authorized by the Local Community Recovery Act of 2006 (Public Law 109-218) are added to paragraph (b) of FAR 18.203, Incidents of National Significance, Emergency Declaration, or Major Disaster Declaration. This statute was enacted subsequent to the publication of the interim rule. For more on the implementation of this statute, see the September 2006 Federal Contracts Perspective article "New Set-Aside Authorized for Major Disaster or Emergency Assistance Acquisitions."
    
    
  • FAR 18.106, Acquisitions from Federal Prison Industries, Inc. (FPI), is revised to identify paragraph (b) of FAR 8.605, Exceptions, as containing an exception for mandatory sources of supplies and services for Federal Prison Industries, Inc. (FPI) when public exigency requires immediate delivery or performance.
    
    
  • FAR 18.118, Trade Agreements, is added to state that the policies and procedures of FAR Subpart 25.4, Trade Agreements, may not apply to acquisitions not awarded under full and open competition.
    
    
  • FAR 18.204, Resources, is amended to add a reference to the Office of Federal Procurement Policy (OFPP) "Emergency Acquisitions Guide," which is available at http://www.whitehouse.gov/omb/procurement/guides/emergency_acquisitions_guide.pdf (for more on the Emergency Acquisitions Guide, see the July 2007 Federal Contracts Perspective article "OFPP Issues Emergency Acquisitions Guide").
  
  For more on the interim rule, see the August 2006 Federal Contracts Perspective article "New FAR Part Consolidates Emergency Authorities; Earned Value Management Coverage Added."
  
  
• Changes to Lobbying Restrictions: This finalizes, with changes, the proposed rule that would amend FAR Subpart 3.8, Limitation on the Payment of Funds to Influence Federal Transactions, and the corresponding FAR 52.203-11, Certification and Disclosure Regarding Payments to Influence Certain Federal Transactions, and FAR 52.203-12, Limitation on Payments to Influence Certain Federal Transactions, to be consistent with the Lobbying Disclosure Act of 1995, and to improve its clarity through improved use of plain language and compliance with FAR drafting conventions. FAR Subpart 3.8 implements 31 U.S.C. 1352, which places limitations on the use of appropriated funds to influence federal contracting and financial transactions.
  
  Three respondents submitted comments on the proposed rule. Because of those comments, the following are the significant differences between final rule and the proposed rule:
  
  
  • FAR 52.203-11, FAR 52.203-12, and FAR 52.212-3, Offeror Representations and Certifications -- Commercial Items, are amended to define "lobbying contact," and to address "registrants under the Lobbying Act of 1995."
    
    
  • FAR 3.802, Statutory Prohibition and Requirement, and FAR 52.203-12 are amended to state that "the term 'appropriated funds' does not include profit or fee from a covered federal action. To the extent a person can demonstrate that the person has sufficient monies, other than federal appropriated funds, the government shall assume that these other monies were spent for any influencing activities that would be unallowable if paid for with federal appropriated funds."
    
    
  • Removes 31 U.S.C. 1352 from paragraph (a) of FAR 12.504, Applicability of Certain Laws to Subcontracts for the Acquisition of Commercial Items. Paragraph (a) is a list of laws that are inapplicable to subcontracts for the acquisition of commercial items.
  
  For more on the proposed rule, see the October 2006 Federal Contracts Perspective article "More Changes to Lobbying Restrictions Proposed."
  
  
• Combating Trafficking in Persons: This revised interim rule revises the earlier interim rule that added FAR Subpart 22.17, Combating Trafficking in Persons, and the corresponding clause FAR 52.222-50, Combating Trafficking in Persons, which allows the contracting agency to take remedial action, including termination of the contract, if the employees of a contractor or subcontractor engages in severe forms of trafficking in persons or has procured a commercial sex act, or used forced labor in the performance of the contract. The first interim rule applied the provisions of FAR Subaprt 22.17 and FAR 52.222-50 to contractors awarded service contracts regardless of amount, except for commercial service contracts under FAR Part 12, Acquisition of Commercial Items. Upon reviewing the comments received on the first interim rule, and a reexamination of the pertinent statutes (the Trafficking Victims Protection Act of 2000, the Trafficking Victims Protection Reauthorization Act of 2003, and the Trafficking Victims Protection Reauthorization Act of 2005), it was decided that Congress intended the prohibition to apply to all contracts, including commercial supplies and services. Therefore, it was decided to issue a revised interim rule and request comments.
  
  Comments on the revised interim rule must be submitted by October 16, 2007, by any of the means mentioned above. Identify comments on this interim rule as "FAC 2005-19, FAR Case 2005-012."
  
  For more on the first interim rule, see the May 2006 Federal Contracts Perspective article "FAC 2005-09 Revises A-76 Rules, Provides FedTeDS Guidance, Addresses Trafficking in Persons."
  
  
• Online Representations and Certifications Application (ORCA) Archiving Capability: This finalizes, without changes, the interim rule that addressed the record retention policy where the ORCA (https://orca.bpn.gov/) is used to submit an offeror's representations and certifications.
  
  FAR 4.803, Contents of Contract Files, requires contracting officers to include contractor representations and certifications in the contract file. However, FAR Subpart 4.12, Representations and Certifications, requires contractors to submit annual representations and certifications electronically via the ORCA. Because ORCA has the capability to archive a contractor's representations and certifications by date, the interim rule added paragraph (c) to FAR 4.1102, Policy [for Central Contractor Registration (CCR)], to permit contracting officers to "reference the date of ORCA verification in the associated government contract file, rather than including a paper copy of the electronically-submitted representations and certifications in the file. Such a reference satisfies contract file documentation requirements of [FAR] 4.803(a)(11) [Contents of Contract Files]."
  
  One respondent submitted comments in response to the interim rule, but no changes were made as a result of the comments.
  
  For more on the interim rule, see the October 2006 Federal Contracts Perspective article "Micro-Purchase, Cost or Pricing Data, 8(a) Competition Thresholds Adjusted for Inflation."
  
  
• ORCA Review: This interim rule revises the prescription for use of FAR 52.223-9, Estimate of Percentage of Recovered Material Content for EPA-Designated Products, and FAR 52.223-14, Toxic Chemical Release Reporting.
  
  FAR 4.1202, Solicitation Provision and Contract Clause, requires that FAR 52.204-8, Annual Representations and Certifications, be included in all solicitations except those conducted under FAR Part 12, Acquisition of Commercial Items. Also, FAR 4.1202 requires that 26 representations and certifications not be included when FAR 52.204-7, Central Contractor Registration, is included. Among the provisions not permitted to be included are FAR 52.223-4, Recovered Material Certification, and FAR 52.223-13, Certification of Toxic Chemical Release Reporting. The prescription in FAR 23.406, Solicitation Provision and Contract Clause, for FAR 52.223-9 required that it be included in solicitations and contracts over $100,000 that include FAR 52.223-4. Likewise, the prescription in FAR 23.906, Solicitation Provision and Contract Clause, for FAR 52.223-14 required that it be included in solicitations and contracts over $100,000 that include FAR 52.223-13. So, when CCR is required, the annual certification in ORCA applies, and neither provision was included in the solicitation, and the contracting officer could fail to include the associated clause, thus precluding receipt of information or certification required by statute. Therefore, this interim rule revises the prescription in FAR 23.406 from "Insert the clause at 52.223-9...in solicitations and contracts exceeding $100,000 that include the provision at 52.223-4" to "Insert the clause at 52.223-9...in solicitations and contracts exceeding $100,000 that are for, or specify the use of, EPA-designated products containing recovered materials." A similar change is made to the prescription in FAR 23.906.
  
  Comments on the interim rule must be submitted by October 16, 2007, by any of the means mentioned above. Identify comments on this interim rule as "FAC 2005-19, FAR Case 2006-025."

OFPP Conducting Online Procurement Services Surveys

The Office of Federal Procurement Policy (OFPP) and General Services Administration (GSA) have announced that they will be conducting two surveys to review the use of online procurement services, such as reverse auction services; to identify types of commercial item procurements that are suitable for the use of such services; and to identify features that should be provided by online procurement services that are used by federal agencies. These surveys are required by the National Defense Authorization Act for Fiscal Year 2006 (Public Law 109-364).

The information collected through the surveys will be used to determine how the government buying activities can most effectively use reverse auctions as a tool to support government requiring activities. The results from these surveys will be incorporated into a report to Congress To view the two draft surveys, go to http://www.acquisition.gov.

Both surveys will ask such questions as:

• What types of contracts are not practical for reverse auctions?
  
  
• Should the FAR or agency FAR supplements provide guidance on the use of reverse auctions?
  
  
• Should the government promote the use of reverse auctions?

It is estimated that each survey will take approximately one-half an hour to complete. Comments regarding this estimate should be submitted by September 20, 2007, to the FAR Desk Officer, Office of Management and Budget, Room 10102, New Executive Office Building, Washington, DC 20503, and a copy to the General Services Administration, FAR Secretariat (VIR), 1800 F Street, NW, Room 4035, Washington, DC 20405.

OFPP Seeking Emergency Contracting Cadre

OFPP Administrator Paul Denett, noting that the supplemental emergency response and recovery cadre "of highly-skilled acquisition professionals must be replenished and increased," has asked "each Chief Acquisition Officer to encourage their agency's contracting professionals, GS-1102s or others performing similar functions, to join this supplemental cadre and increase the number of contracting professionals that will assist DHS [Department of Homeland Security] and other agencies in responding to national emergencies and disasters...Deployment is voluntary, subject to supervisory approval, and generally limited to a maximum of 30 days. Cadre members will benefit from emergency contracting training and from the experience of contributing to the national interest during an emergency."

Defense Issues Seven DFARS Rules During August

During August, the Department of Defense (DOD) issued three final rules and one interim rule amending the Defense FAR Supplement (DFARS), and three proposed rules that would amend the DFARS.

• Berry Amendment Restrictions on Clothing Materials and Components: This finalizes, without changes, the interim rule that amended DFARS 225.7002, Restrictions on Food, Clothing, Fabrics, Specialty Metals, and Hand or Measuring Tools, and DFARS 252.225-7012, Preference for Certain Domestic Commodities, to implement Section 833(b) of the National Defense Authorization Act for Fiscal Year 2006 (Public Law 109-163), which expanded the foreign source restrictions applicable to the acquisition of clothing to include clothing materials and components.
  
  No comments were received on the interim rule, so it is finalized without changes. For more on the interim rule, see the February 2007 Federal Contracts Perspective article "DOD-Unique Emergency Flexibilities Added to DFARS."
  
  
• Berry Amendment Notification Requirement: This finalizes, without changes, the interim rule that revised DFARS 205.301, General [Synopses of Contract Awards] to add a requirement for the posting of a contract award notice on FedBizOpps (http://www.FedBizOpps.gov) within seven days after award of a contract exceeding the simplified acquisition threshold, for the acquisition of (1) certain clothing, fiber, yarn, or fabric items, when DOD has determined adequate domestic items are not available; or (2) chemical warfare protective clothing, when an exception to domestic source requirements applies because the acquisition furthers an agreement with a qualifying country.
  
  No comments were received on the interim rule, so it is finalized without changes. For more on the interim rule, see the November 2006 Federal Contracts Perspective article "DFARS Amended to Address Foreign Acquisitions."
  
  
• Limitations on Tiered Evaluation of Offers: This finalizes, with changes, the interim rule that added DFARS 213.106-1-70, Soliciting Competition -- Tiered Evaluation of Offers, and DFARS 215.203-70, Requests for Proposals -- Tiered Evaluation of Offers, to prohibit the use of tiered evaluation of offers unless the contracting officer (1) has conducted market research in accordance with FAR Part 10, Market Research; (2) is unable to determine whether or not a sufficient number of qualified small businesses are available to justify limiting competition for the contract or order; and (3) includes in the contract file a written explanation of why the contracting officer was unable to make the determination. (EDITOR'S NOTE: DFARS 202.101, Definitions, includes the following: "Tiered evaluation of offers, also known as cascading evaluation of offers, means a procedure used in negotiated acquisitions, when market research is inconclusive for justifying limiting competition to small business concerns, whereby the contracting officer (1) solicits and receives offers from both small and other than small business concerns; (2) establishes a tiered or cascading order of precedence for evaluating offers that is specified in the solicitation; and (3) if no award can be made at the first tier, evaluates offers at the next lower tier, until award can be made.")
  
  Four respondents submitted comments on the interim rule. As a result of the comments, the following changes were made as the rule was finalized:
  
  
  • The text in DFARS 213.106-1-70, which was a duplicate of the text in DFARS 215.203-70, is replaced with a cross-reference to DFARS 215.203-70.
    
    
  • Because the prohibition against the use of tiered evaluations of offers in DFARS 215.203-70 was implied rather than explicit, the following is added to paragraph (c): "The contracting officer is prohibited from issuing a solicitation with a tiered evaluation unless..."
  
  For more on the interim rule, see the October 2006 Federal Contracts Perspective article "DOD Restricts Use of 'Tiered Evaluations.'"
  
  
• Carriage Vessel Overhaul, Repair, and Maintenance: This interim rule implements Section 1017 of the National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364), which requires DOD to establish an evaluation criterion, for use in obtaining carriage of cargo by vessel, that considers the extent to which an offeror has had overhaul, repair, and maintenance work for covered vessels performed in shipyards located in the United States or Guam.
  
  The interim rule contains a new solicitation provision, DFARS 252.247-7026, Evaluation Preference for Use of Domestic Shipyards -- Applicable to Acquisition of Carriage by Vessel for DoD Cargo in the Coastwise or Noncontiguous Trade, which includes definitions of "overhaul, repair, and maintenance work" and "shipyards." Also, it states that the "solicitation includes an evaluation factor that considers the extent to which the offeror has had overhaul, repair, and maintenance work for covered vessels performed in shipyards located in the United States or Guam," but it does not specify the evaluation factor -- the factor is left to the contracting officer to determine.
  
  Comments on the interim rule must be submitted no later than October 29, 2007, identified as "DFARS Case 2007-D001," by: (1) eRulemaking Portal: http://www.regulations.gov; (2) e-mail: dfars@osd.mil; (3) fax: 703-602-7887; (4) mail to: Defense Acquisition Regulations System, Attn: Mark Gomersall, OUSD(AT&L)DPAP(DARS), IMD 3C132, 3062 Defense Pentagon, Washington, DC 20301-3062; or (5) hand-delivery or courier to: Defense Acquisition Regulations System, Crystal Square 4, Suite 200A, 241 18th Street, Arlington, VA 22202-3402.
  
  
• Payments on Cost-Reimbursement Contracts for Services: DFARS 232.906, Making Payments, provides for interim payments within 14 days on cost-reimbursement contracts for services. This proposed rule would (1) amend DFARS 232.906 to limit the 14-day period to cost-reimbursement contracts for services with small business concerns; (2) add DFARS 216.307, Contract Clauses, to require the contracting officer to insert "30 days" in FAR 52.216-7, Allowable Cost and Payment, for contracts with other than small business concerns, and "14 days" for contracts with small business concerns; and (3) add DFARS 252.232-7XXX, Payments on Cost-Reimbursement Contracts for Services with Small Business Concerns, to state that "although accelerated payments may be made in 14 days...for purposes of computing late payment interest penalties that may apply, the due date for payment is the 30th day after the designated billing office receives a proper payment request."
  
  Comments on the proposed rule must be submitted no later than October 1, 2007, identified as "DFARS Case 2006-D066," by any of the methods mentioned above, except send mailed comments to the attention of John McPherson.
  
  
• Item Identification and Valuation Clause Update: DFARS 252.211-7003, Item Identification and Valuation, requires unique identification for all delivered items for which the government's unit acquisition cost is $5,000 or more, and for other items designated by the government. In addition, DFARS 252.211-7003 requires identification of the government's unit acquisition cost for all delivered items, and provides instructions to contractors regarding the identification and valuation processes.
  
  This proposed rule would revise DFARS 252.211-7003 to update and clarify instructions for the identification and valuation processes, including: updating of references to standards and other documents; clarifying of the definition of unique item identifier; addressing the DOD recognized unique identification equivalent; clarifying data submission requirements for end items and embedded items; and clarifying requirements for inclusion of the clause in subcontracts.
  
  Comments on the proposed rule must be submitted no later than October 1, 2007, identified as "DFARS Case 2007-D007," by any of the methods mentioned above, except send mailed comments to the attention of Gary Delaney.
  
  
• Mandatory Use of Wide Area WorkFlow -- Receipt and Acceptance (WAWF-RA): DFARS Subpart 232.70, Electronic Submission and Processing of Payment Requests, and the corresponding clause at DFARS 252.232-7003, Electronic Submission of Payment Requests, presently identify three accepted electronic forms of transmitting payment requests under DOD contracts: (1) American National Standards Institute (ANSI) X.12 Electronic Data Interchange (EDI); (2) Web Invoicing System; and (3) WAWF-RA. This proposed rule would amend DFARS Subpart 232.70 and DFARS 252.232-7003, Electronic Submission of Payment Requests, to require use of the WAWF-RA electronic system for submission and processing of payment requests under DOD contracts. The proposed rule will still allow a contractor to submit a payment request through an electronic means other than WAWF-RA, or in a non-electronic format, if authorized by the contracting officer. In addition, contractors would be allowed to submit ANSI X.12 EDI transactions through WAWF-RA.
  
  Comments on the proposed rule must be submitted no later than October 15, 2007, identified as "DFARS Case 2006-D049," by any of the methods mentioned above, except send mailed comments to the attention of John McPherson.

NRC Increasing Size Standards

The Nuclear Regulatory Commission (NRC) is increasing the receipts-based small business size standard it uses to qualify an NRC licensee as a small from $5,000,000 to $6,500,000. This increase brings the size standard into conformity with the Small Business Administration's most commonly used size standard for nonmanufacturing industries.

This rule will go into effect on October 24, 2007, unless significant adverse comments are received by September 10, 2007. E-mail such comments to SECY@nrc.gov.

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