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Panoptic Enterprises' FEDERAL CONTRACTS DISPATCH

DATE: May 2, 2001

SUBJECT: Federal Acquisition Circular (FAC) 97-25, Performance-Based Contracting and Information Technology Contractor Personnel

SOURCE: Federal Register, May 2, 2001, Vol. 66, No. 85, page 22081

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

ACTION: Interim Rules

SYNOPSIS: FAC 97-25 is being issued to amend the Federal Acquisition Regulation (FAR) to (1) establish a preference for performance-based contracts or task orders when acquiring services, and (2) prohibit the use of minimum experience or education requirements for contractor personnel in the acquisition of information technology services.

DATES: The effective date for both these interim rules is May 2, 2001. Interested parties should submit comments on these interim rules on or before July 2, 2001 to be considered in the formulation of a final rule.

ADDRESSES: Submit comments to General Services Administration, FAR Secretariat (MVP), 1800 F Street, NW, Room 4035, Attn: Ms. Laurie Duarte, Washington, DC 20405. Submit electronic comments on Item 1 to farcase.2000-307@gsa.gov, and on Item 2 to farcase.2000-609@gsa.gov. Cite FAC 97-25, FAR case 2000-307 in all correspondence related to Item 1, and cite FAC 97-25, FAR case 2000-609 in all correspondence related to Item 2.

FOR FURTHER INFORMATION CONTACT: For Item 1, Julia Wise, Procurement Analyst, 202-208-1168, and cite FAC 97-25, FAR case 2000-307. For Item 2, Linda Nelson, Procurement Analyst, 202-501-1900, and cite FAC 97-25, FAR case 2000-609.

For general information, contact the FAR Secretariat, Room 4035, GS Building, Washington, DC 20405, 202-501-4755.

SUPPLEMENTAL INFORMATION: (1) Preference for Performance-Based Contracting: This interim rule amends FAR 2.101, Definitions, and FAR 37.102, Policy, to implement Section 821 of the Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001 (Public Law 106-398), which establishes the following order of precedence when acquiring services: (1) a firm-fixed-price performance-based contract or task order; (2) a performance-based contract or task order that is not firm-fixed-price; and (3) a contract or task order that is not performance-based.

This interim rule makes the following changes:

(2) Contractor Personnel in the Procurement of Information Technology Services: This interim rule adds FAR 39.104, Information Technology Services, to implement Section 813 of Public Law 106-398, which prohibits the use of minimum experience or education requirements for contractor personnel in solicitations for the acquisition of information technology services, unless the contracting officer first determines that the needs of the agency (1) cannot be met without such requirement; or (2) require the use of a type of contract other than a performance-based contract. FAR 39.104 states this prohibition.

FOR FURTHER INFORMATION CONTACT: Panoptic Enterprises at 703-451-5953 or by e-mail to Panoptic@FedGovContracts.com.

Copyright 2001 by Panoptic Enterprises. All Rights Reserved.

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