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Barry McVay's FEDERAL CONTRACTS DISPATCH

DATE: December 29, 2000

FROM: Barry McVay, CPCM

SUBJECT: Federal Acquisition Regulation (FAR); Contract Types for Commercial Item Acquisitions

SOURCE: Federal Register, December 29, 2000, Vol. 65, No. 251, page 83291

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

ACTION: Proposed Rule

SYNOPSIS: It is proposed that the FAR be amended to clarify what contract-types are authorized for commercial item acquisitions.

DATES: Comments should be submitted on or before February 27, 2001.

ADDRESSES: Submit comments to General Services Administration, FAR Secretariat (MVR), 1800 F Street, NW, Room 4035, ATTN: Laurie Duarte, Washington, DC 20405; e-mail: farcase.2000-013@gsa.gov. Cite FAR case 2000-013 in all correspondence related to this proposed rule.

FOR FURTHER INFORMATION CONTACT: Victoria Moss, Procurement Analyst, 202-501-4764.

SUPPLEMENTAL INFORMATION: Currently, FAR 12.207, Contract Type, states that "agencies shall use firm-fixed-price contracts or fixed-price contracts with economic price adjustment for the acquisition of commercial items." However, Section 8002 of the Federal Acquisition Streamlining Act (FASA) (Public Law 103-355), which addresses "regulations for acquisition of commercial items," states that the FAR "shall include for acquisitions of commercial items, a requirement that firm, fixed price contracts or fixed price with economic price adjustment contracts be used to the maximum extent practicable..."

Since the current FAR 12.207 does not reflect the somewhat more flexible language in the FASA, this proposed rule would make the following changes:

FOR FURTHER INFORMATION CONTACT: Barry McVay at 703-451-5953 or by e-mail to BarryMcVay@FedGovContracts.com.

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