FEDERAL ACQUISITION REGULATION (FAR)

I. Mission and Overview

The Federal Acquisition Regulation (FAR) was established to codify uniform policies for acquisition of supplies and services by executive agencies. It is issued and maintained jointly, pursuant to the Office of Federal Procurement Policy (OFPP) Reauthorization Act, under the statutory authorities granted to the Secretary of Defense, Administrator of General Services, and the Administrator, National Aeronautics and Space Administration. Statutory authorities to issue and revise the FAR have been delegated to the procurement executives in Department of Defense (DoD), GSA, and National Aeronautics and Space Administration (NASA).

II. Statement of Regulatory and Deregulatory Priorities

Federal Acquisition Regulation Priorities:

Specific FAR cases that the FAR Council plans to address in Fiscal Year 2016 include:

Regulations to Improve Small Business Opportunities in Government Contracting:

Contracts under the Small Business Administration 8(a) Program-This case clarifies FAR subpart 19.8, "Contracting with the Small Business Administration (The 8(a) Program)." (FAR Case 2012-022)

Clarification of Requirement for Justifications for 8(a) Sole-Source Contracts-This case clarifies the requirement for a justification for 8(a) sole-source contracts, in response to GAO Report to the Chairman, Subcommittee on Contracting Oversight, Committee on Homeland Security and Governmental Affairs, U.S. Senate, entitled Federal Contracting: Slow Start to Implementation of Justifications for 8(a) Sole-Source Contracts (GAO-13-118 dated December 2012). (FAR Case 2013-018)

Set-Asides under Multiple Award Contracts-This case implements statutory requirements from the Small Business Jobs Act of 2010 and is aimed at providing agencies with clarifying guidance on how to use multiple-award contracts as a tool to increase Federal contracting opportunities for small businesses. (FAR Case 2014-002)

Small Business Subcontracting Improvements-This case implements statutory requirements from the Small Business Jobs Act of 2010 aimed at protecting small business subcontractors and increasing subcontracting opportunities for small businesses. (FAR Case 2014-003)

Payment of Subcontractors-This case implements section 1334 of the Small Business Jobs Act of 2010 and the Small Business Administration's (SBA) Final Rule 78 FR 42391, Small Business Subcontracting. The rule requires prime contractors of contracts requiring a subcontracting plan to notify the contracting officer in writing if the prime contractor pays a reduced price to a subcontractor or if payment is more than 90 days past due. A contracting officer will then use his or her best judgment in determining whether the late or reduced payment was justified and if not the contracting officer will record the identity of a prime contractor with a history of unjustified untimely payments to subcontractors in the Federal Awardee Performance and Integrity Information System (FAPIIS) or any successor system. (FAR Case 2014-004)

Consolidation and Bundling of Contract Requirements-This case implements statutory requirements from the Small Business Jobs Act of 2010, which created a definition for contract consolidation and limited its use by agencies until certain steps are taken to identify and minimize the negative impact to small businesses. (FAR Case 2014-015)

Sole Source Contracts to Women-Owned Small Businesses-This case implements statutory requirements from the NDAA for FY 2015, which provides for sole source authority under the Women-Owned Small Business (WOSB) Program. The new authority is expected to increase WOSB participation in the Federal marketplace. (FAR Case 2015-032)

Labor - Regulations Which Promote Fair Pay and Safe Workplace Practices

Fair Pay and Safe Workplaces-This rule implements Executive Order 13673, Fair Pay and Safe Workplaces, seeks to increase efficiency in the work performed by Federal contractors by ensuring that they understand and comply with labor laws designed to promote safe, healthy , fair and effective workplaces. (FAR Case 2014-025)

Establishing a Minimum wage for Contractors-This rule implements Executive Order 13658, Establishing a Minimum Wage for Contractors, which requires agencies, to the extent permitted by law, to include a clause in new solicitations and resultant contracts, specifying, as a condition of payment, that the minimum wage to be paid to workers, in the performance of the contract or any subcontract there under, shall be at least $10.10 per hour beginning January 1, 2015. (FAR Case 2015-003)

Further Amendments to Equal Employment Opportunity-This rule implements Executive Order 13672, dated July 21, 2014, and Department of Labor (DOL) regulations at 41 CFR 60, published December 9, 2014. The Executive Order and the DOL regulations provide for a uniform policy in Federal Government procurement by prohibiting discrimination based on sexual orientation and gender identity. (FAR case 2015-013)

Combating Trafficking in Persons-Definition of "Recruitment Fees"-This case considers a new definition for the term "recruitment fees" at the request of the Senior Policy Operating Group (SPOG) for Combating Trafficking in Persons. (FAR Case 2015-017)

Environmental Rules - Regulations that Promote Environmental Goals

High Global Warming Potential Hydrofluorocarbons-This case facilitates implementation of the President's Climate Action Plan with regard to high global warming potential hydrofluorocarbons. (FAR Case 2014-026)

Public Disclosure of Greenhouse Gas Emissions and Reduction Goals-Representation-This case creates an annual representation within the System for Award Management (SAM) for contractors to indicate if and where they publicly disclose GHG emissions and GHG reduction goals or targets. This information will help the Government assess supplier GHG management practices and assist agencies in developing strategies to engage with contractors to reduce supply chain emissions as directed in section 15 of Executive Order 13693, Planning for Federal Sustainability in the Next Decade, dated March 19, 2015. (FAR Case 2015-024)

Sustainable Acquisition- This case implements E.O. 13693, Planning for Federal Sustainability in the Next Decade, which supersedes E.O.s 13423 and 13514. (FAR Case 2015-033)

Regulations that Promote Protection of Government Information and Systems

Privacy Training-This case creates a FAR clause to require contractors that (1) need access to a system of records, (2) handle personally identifiable information, or (3) design, develop, maintain, or operate a system of records on behalf of the Government, have their personnel complete privacy training. This addition complies with subsections (e) (agency requirements) and (m) (Government contractors) of the Privacy Act (5 U.S.C. 552a). (FAR Case 2010-013)

Organizational Conflicts of Interest and Unequal Access to Information-This case implements section 841 of the NDAA for FY 2009 (Pub. L. 110-147). Section 841 requires consideration of how to address the current needs of the acquisition community with regard to Organizational Conflicts of Interest. Separately addresses issues regarding unequal access to information. (FAR Case 2011-001)

Basic Safeguarding of Contractor Information Systems-This case amends the FAR to implement procedures for safeguarding contractor information systems that contain information provided by or generated for the Government. The purpose of these safeguards is to provide the Government with the necessary assurance that contractors are taking basic security measures on their information systems containing Government information. (FAR Case 2011-020)

Contractor Use of Information-This case addresses contractor access to controlled unclassified information. (FAR Case 2014-021)

Regulations Which Promote Ethics and Integrity in Contractor Performance

Information on Corporate Contractor Performance and Integrity-This case implements section 852 of the NDAA for FY 2013 (Pub. L. 112-239). Section 852 requires that FAPIIS include, to the extent practicable, information on any parent, subsidiary, or successor entities to the corporation. (FAR Case 2013-020)

Prohibition on Contracting with Corporations with Delinquent Taxes or a Felony Conviction.-This case implements multiple sections of the Consolidated and Further Continuing Appropriations Act, 2015. (Pub. L. 113-235) to prohibit using any of the funds appropriated by the Act to enter into a contract with any corporation with a delinquent Federal tax liability or a felony conviction. (FAR case 2015-011)

Prohibition on Providing Funds to the Enemy-This case implements sections 841-843, subtitle E (Never Contract with the Enemy), title VIII, of the National Defense Authorization Act for FY 2015 (Pub. L. 113-291), enacted 12/19/2014. Section 841 prohibits providing funds to the enemy. Section 842 provides additional access to records. Section 843 provides definitions. (FAR Case 2015-014)

Regulations that Streamline and Reduce Unjustified Burdens

Provisions and Clauses for Acquisitions of Commercial Items and Acquisitions That Do Not Exceed the Simplified Acquisition Threshold-This case implements a new approach to the prescription and flowdown for provisions and clauses applicable to the acquisition of commercial items or acquisitions that do not exceed the simplified acquisition threshold. Each clause prescription and each clause flowdown for commercial items is specified within the prescription/clause itself, without having to cross-check another clause or list. The rule supports the use of automated contract writing systems and reduced necessary FAR maintenance when clauses are updated. (FAR Case 2015-004)

Retention Period-This case updates the file retention periods identified at FAR subpart 4.805, Government Contract Files, to conform with the retention periods in the National Archives and Records Administration (NARA) General Records Schedule 1.1, Financial Management and Reporting Records, published on September 12, 2014. (FAR Case 2015-009)

Simplified Acquisition Threshold for Contracts in Support of Humanitarian or Peacekeeping Operation-This case implements 41 U.S.C. section 153 by increasing the simplified acquisition threshold for contracts to be awarded and performed, or purchases to be made, outside the United States in support of a humanitarian or peacekeeping operation. (FAR Case 2015-020)

Removal of Regulations Relating to Telegraphic Communication-This case removes the terms "telegraph," "telegram," and related regulations from the FAR, in accordance with OFPP Memorandum dated December 4, 2014, which directed removal or revision of outdated regulations. (FAR Case 2015-035)

Reverse Auction Guidance-This case Implements OFPP memorandum, "Effective Use of Reverse Auctions."The memorandum provides guidance on the usage of reverse auctions, and was issued in response to recommendations within GAO report (Reverse Auctions: Guidance is Needed to Maximize Competition and Achieve Cost Savings, GAO-14-108). (FAR Case 2015-038)

Regulations Which Promote Fiscal Responsibility (Accountability and Transparency)

Applicability of the Senior Executive Compensation Benchmark. Proposes retroactive implementation of section 803 of the National Defense Authorization Act for Fiscal

Year 2012 (Pub. L. 112-81), which extends the limitation on allowability of compensation for certain contractor personnel from senior executives to all DoD, NASA, and Coast Guard contractor employees. (FAR Case 2012-025)

Limitation on Allowable Government Contractor Compensation Costs-This case implements Public Law 113-67, which limits costs of compensation of contractor and subcontractor employees. (FAR Case 2014-012)

Strategic Sourcing Documentation-This case implements section 836 of the FY15 NDAA. Section 836 requires that when purchasing services and supplies that are offered under the Federal Strategic Sourcing Initiative but the Initiative in not used, the contract file shall include an analysis of comparative value, including price and nonprice factors, between the services and supplies offered under such Initiative and services and supplies offered under the source or sources used for the purchase. (FAR Case 2015-015)

Prohibition on Reimbursement for Congressional Investigations and Inquiries-This case implements section 857 of the NDAA for FY15, which amends 10 U.S.C. 2324(e)(1). Section 857 disallows costs incurred by a contractor in connection with a congressional investigation or inquiry into an issue that is the subject 10 U.S.C. 2324(k)(2). (FAR Case 2015-016)

Determination of Fair and Reasonable Prices on Orders under Multiple-Award Contracts-This case clarifies the responsibilities for ordering activity contracting officers to determine fair and reasonable prices when using Federal Supply Schedules. (FAR Case 2015-021)

Federal Supply Schedule Order Level Materials-This case provides clarification of the authority to acquire order-level materials when placing a task order or establishing a blanket purchase agreement against a Federal Supply Schedule contract. (FAR Case 2015-023)

Regulations Which Promote Accountability and Transparency

Uniform Use of Line Items-This case establishes a requirement for use of a standardized uniform line item numbering structure in Federal procurement. (FAR Case 2013-014)

Past Performance Evaluation Requirements-This case updates FAR subpart 42.15 to identify "regulatory compliance" as a separate evaluation factor in the Contractor Past Performance Assessment System (CPARS) and require agencies use past performance information in the Past Performance Information three years for construction and architect-engineer contracts. (FAR Case 2015-027)

DATED: October 7, 2015.

NAME: William Clark,

Director, Office of Government-wide Acquisition Policy,

Office of Acquisition Policy,

Office of Government-wide Policy.