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Federal Acquisition Regulation; Definitions Clause

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Department of Defense (DoD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA).


Final rule.


The Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council (Councils) have agreed on a final rule amending the Federal Acquisition Regulation (FAR) to clarify the applicability of FAR definitions to solicitation provisions and contract clauses.


Effective Date: July 19, 2004.

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The FAR Secretariat at (202) 501-4755 for information pertaining to status or publication schedules. For clarification of content, contact Ms. Jeritta Parnell, Procurement Analyst, at (202) 501-4082. Please cite FAC 2001-24, FAR case 2002-013.

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A. Background

This final rule amends the FAR to delete the list of definitions from the clause at FAR 52.202-1 and to replace the list with general policy regarding the applicability of FAR definitions to solicitation provisions and contract clauses.

DoD, GSA, and NASA published a proposed rule in the Federal Register at 69 FR 2988, January 21, 2004. Three comments were received from one respondent. The first two comments requested clarification as to whether the second and third sentences of FAR 2.201 and Alternate I of the clause at FAR 52.202-1 are being deleted. This text has been deleted, and the proposed and final rules reflect this. The third comment suggested correcting the Web address in FAR 52.202-1. We agree. The Web address has been changed. The proposed rule has been converted to a final rule with this change and other minor editorial changes.

This is not a significant regulatory action and, therefore, was not subject to review under Section 6(b) of Executive Order 12866, Regulatory Planning and Review, dated September 30, 1993. This rule is not a major rule under 5 U.S.C. 804.

B. Regulatory Flexibility Act

The Department of Defense, the General Services Administration, and the National Aeronautics and Space Administration certify that this final rule will not 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., because the principle of how definitions apply is already expressed in FAR Part 2. Since this principle is not as clearly expressed in the FAR Part 52 clauses, the rule repeats the principle in a clause to clarify this issue for offerors and contractors.

C. Paperwork Reduction Act

The Paperwork Reduction Act does not apply because the changes to the FAR do not impose information collection requirements that require the approval of the Office of Management and Budget under 44 U.S.C. 3501, et seq.

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List of Subjects in 48 CFR Parts 2 and 52

  • Government procurement
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Dated: June 10, 2004.

Ralph J. De Stefano,

Acting Director, Acquisition Policy Division.

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Therefore, DoD, GSA, and NASA amend 48 CFR parts 2 and 52 as set forth below:

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1. The authority citation for 48 CFR parts 2 and 52 is revised to read as follows:

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Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 42 U.S.C. 2473(c).

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2. Revise section 2.201 to read as follows:

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Contract clause.

Insert the clause at 52.202-1, Definitions, in solicitations and contracts that exceed the simplified acquisition threshold.

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3. Revise section 52.202-1 to read as follows:

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As prescribed in 2.201, insert the following clause:

Definitions (Jul 2004)

(a) When a solicitation provision or contract clause uses a word or term that is defined in the Federal Acquisition Regulation (FAR), the word or term has the same meaning as the definition in FAR 2.101 in effect at the time the solicitation was issued, unless—

(1) The solicitation, or amended solicitation, provides a different definition;

(2) The contracting parties agree to a different definition;

(3) The part, subpart, or section of the FAR where the provision or clause is prescribed provides a different meaning; or

(4) The word or term is defined in FAR Part 31, for use in the cost principles and procedures.

(b) The FAR Index is a guide to words and terms the FAR defines and shows where each Start Printed Page 34229definition is located. The FAR Index is available via the Internet at at the end of the FAR, after the FAR Appendix.

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4. Amend section 52.213-4 by removing “(May 2004)” from the clause heading and from paragraph (a)(2)(vi) of the clause and adding “(Jul 2004)” in their place.

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5. In section 52.244-6, revise the date of the clause; and in paragraph (a) of the clause revise the definition “Commercial item” to read as follows:

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Subcontracts for Commercial Items.
* * * * *

Subcontracts for Commercial Items (Jul 2004)

(a) * * *

Commercial item has the meaning contained in Federal Acquisition Regulation 2.101, Definitions.

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[FR Doc. 04-13619 Filed 6-17-04; 8:45 am]