text: FAC2001-20
  Publish/Effective Feb 23 2004
  Federal Acquisition Regulation; Special Emergency Procurement Authority; Small Entity Compliance Guide; Interim Rules
  48 CFR Parts 2, 10, 12, 13, 15, 19, and 25
  [FAC 2001-20; FAR Case 2003-022]
  SUMMARY: The Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council (Councils) have agreed on an interim rule amending the Federal Acquisition Regulation (FAR) to implement the special emergency procurement authorities of section 1443 of the Services Acquisition Reform Act of 2003 (Title XIV of Pub. L. 108-136). The Councils will publish a final rule upon receipt and evaluation of comments received in response to this interim rule. Section 1443 increases the amount of the micro-purchase threshold and the simplified acquisition threshold for procurements of supplies or services by or for an executive agency that, as determined by the head of the agency, are to be used in support of a contingency operation or to facilitate the defense against or the recovery from nuclear, biological, chemical, or radiological attack. Also, the head of the contracting activity carrying out a procurement of supplies or services to facilitate defense against or recovery from nuclear, biological, chemical, or radiological attack may treat such supplies or services as a commercial item.
  DATES: Effective Date: February 23, 2004.
  ADDRESSES: Submit written comments to--General Services Administration, FAR Secretariat (MVA), 1800 F Street, NW., Room 4035, Attn: Ms. Laurie Duarte, Washington, DC 20405.
  Submit electronic comments via the Internet to--farcase.2003-022@gsa.gov. Please submit comments only and cite FAC 2001-20, FAR case 2003-022, in all correspondence related to this case.
  FOR FURTHER INFORMATION CONTACT: The FAR Secretariat at (202) 501-4755, for information pertaining to status or publication schedules. For clarification of content, contact Mr. Gerald Zaffos, Procurement Analyst, at (202) 208-6091. Please cite FAC 2001-20, FAR case 2003-022.
  A. Background This interim rule implements Section 1443 of the Services Acquisition Reform Act of 2003 (Title XIV of Pub. L. 108-136). Section 1443 increases the amount of the micro-purchase threshold and the simplified acquisition threshold for procurements of supplies or services by or for an executive agency that, as determined by the head of the agency, are to be used in support of a contingency operation or to facilitate the defense against or the recovery from nuclear, biological, chemical, or radiological attack. Section 1443 also authorizes the expanded use of Simplified Acquisition and Commercial Items procedures.
  B. Regulatory Flexibility Act The changes may have a significant economic impact on a substantial number of small entities within the meaning of the Regulatory Flexibility Act, 5 U.S.C. 601 et seq. However, the increased thresholds are limited to procurements that support a contingency operation or to facilitate the defense against or the recovery from nuclear, biological, chemical, or radiological attack. There are no data available on the number of procurements that will be eligible. We expect the increased thresholds to this limited class of procurements will apply to a very small number of small entities.
  Initial Regulatory Flexibility Act Analysis--FAR Case 2003-022
  The FAR Secretariat has submitted a copy of the Initial Regulatory Flexibility Analysis (IRFA) to the Chief Counsel for Advocacy of the Small Business Administration. Interested parties may obtain a copy from the FAR Secretariat. The Councils will consider comments from small entities concerning the affected FAR parts 2, 10, 12, 13, 15, 19, and 25 in accordance with 5 U.S.C. 610. Interested parties must submit such comments separately and should cite 5 U.S.C. 601, et seq. (FAC 2001-20, FAR case 2003-022), in correspondence.
  D. Determination To Issue an Interim Rule A determination has been made under the authority of the Secretary of Defense (DoD), the Administrator of General Services (GSA), and the Administrator of the National Aeronautics and Space Administration (NASA) that urgent and compelling reasons exist to promulgate this interim rule without prior opportunity for public comment. This action is necessary because the FAR coverage implements Section 1443 of the Services Acquisition Reform Act of 2003, signed on November 24, 2003, which provides urgently needed emergency authorities. However, pursuant to Public Law 98-577 and FAR 1.501, the Councils will consider public comments received in response to this interim rule in the formation of the final rule.
  Government procurement. Dated: February 13, 2004.Laura Auletta, Director, Acquisition Policy Division. Federal Acquisition Circular
  Dated: February 12, 2004. Deidre A. Lee, Director, Defense Procurement and Acquisition Policy.
  Dated: February 13, 2004. David A. Drabkin, Deputy Associate Administrator, Office of Acquisition Policy, General Services Administration.
  Dated: February 12, 2004.Tom Luedtke, Assistant Administrator for Procurement, National Aeronautics and Space Administration.
  2. Amend section 2.101 in paragraph (b) by revising the definitions ``Micro-purchase threshold'' and ``Simplified acquisition threshold'' to read as follows:
  Simplified acquisition threshold means $100,000, except for acquisitions of supplies or services that, as determined by the head of the agency, are to be used to support a contingency operation or to facilitate defense against or recovery from nuclear, biological, chemical, or radiological attack (Pub. L. 108-136, Title XIV, Sec. 1443), the term means--
  (2) A contract in an amount greater than $15,000,000 that is awarded on a sole source basis for an item or service treated as a commercial item under paragraph (f)(1) of this section but does not meet the definition of a commercial item as defined at FAR 2.101 shall not be exempt from--
  (c)(1) The contracting officer shall not use simplified acquisition procedures to acquire supplies and services if the anticipated award will exceed--
  (2) Do not break down requirements aggregating more than the simplified acquisition threshold (or for commercial items, the threshold in Subpart 13.5) or the micro-purchase threshold into several purchases that are less than the applicable threshold merely to--
  12. Amend section 13.501 by removing from paragraph (a)(1)(ii) ``Homeland Security Act (Pub. L. 107-296, section 856)'' and adding ``Services Acquisition Reform Act of 2003 (Title XIV of Pub. L. 108-136)'' in its place.
  13. Amend section 15.403-1 in paragraph (c)(3) by adding the paragraph designation ``(i)'' before the first sentence, and adding paragraph (c)(3)(ii) to read as follows:
  16. Amend section 19.805-1 by--
  b. Removing ``; or'' from the end of paragraph (b)(2) and adding a period in its place; and
  17. Amend section 19.903 by adding the word ``or'' to the end of paragraph (b)(2); revising paragraph (b)(3); and removing paragraph (b)(4). The revised text reads as follows:
  19.903 Applicability.
  (a)(1) Insert the clause at 52.225-1, Buy American Act--Supplies, in solicitations and contracts with a value exceeding $2,500 ($15,000 for acquisitions as described in 13.201(g)(1)) but not exceeding $25,000; and in solicitations and contracts with a value exceeding $25,000, if none of the clauses prescribed in paragraphs (b) and (c) of this section apply, except if--