[Federal Register Volume 60, Number 140 (Friday, July 21, 1995)]
[Rules and Regulations]
[Pages 37777-37779]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-17938]



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DEPARTMENT OF DEFENSE
DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 32 and 37

[FAC 90-30; FAR Case 94-766; Item V]
RIN 9000-AG56


Federal Acquisition Regulation; Service Contract Funding

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

ACTION: Final rule.

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SUMMARY: This final rule is issued pursuant to the Federal Acquisition 
Streamlining Act of 1994 (the Act) to implement a new authority for 
funding of service contracts of certain executive branch agencies. This 
regulatory action was subject to Office of Management and Budget review 
under Executive Order 12866, dated September 30, 1993.

EFFECTIVE DATE: August 21, 1995.

FOR FURTHER INFORMATION CONTACT:
Mr. John Galbraith, Finance and Payment Team Leader, at (703) 697-6710, 
in reference to this FAR case. For general information, contact the FAR 
Secretariat, room 4037, GS Building, Washington, DC 20405 (202) 501-
4755. Please cite FAC 90-30, FAR case 94-766.

SUPPLEMENTARY INFORMATION:

A. Background

    The Federal Acquisition Streamlining Act of 1994 (the Act), Pub. L. 
103-355, provides authorities that streamline the acquisition process 
and minimize burdensome Government-unique requirements. Major changes 
in the acquisition process as a result of the Act's implementation 
include changes in the areas of Commercial Item Acquisition, Simplified 
Acquisition Procedures, the Truth in Negotiations Act, and introduction 
of the Federal Acquisition Computer Network (FACNET).
    Section 1073 of the Federal Acquisition Streamlining Act of 1994 
(Public Law 103-355) provided new authority for executive branch 
agencies other than the Department of Defense, United States Coast 
Guard, and National Aeronautics and Space Administration to write 
service contracts that cross fiscal years, and to fund those contracts 
with one fiscal year's funds. Consult agency supplements for similar 
authorities that may exist for the Department of Defense, United States 
Coast Guard, and the National Aeronautics and Space Administration. 
This new authority will allow most agencies to simplify the contracting 
for, and administration of, service contracts by allowing single, fully 
funded contract actions, in lieu of multiple contracts or complex 
obligation arrangements. This new authority significantly simplifies 
and streamlines the contracting process in this area. To implement this 
authority, the FAR Council is amending FAR sections 32.703-3 and 
37.106.

B. Regulatory Flexibility Act

    The final rule does not constitute a significant FAR revision 
within the meaning of FAR 1.501 and Pub. L. 98-577 and public comment 
is not required. Therefore, the Regulatory Flexibility Act does not 
apply. However, comments from small entities concerning the affected 
subpart will be considered in accordance with 5 U.S.C. 610. Such 
comments must be submitted separately and cite 5 U.S.C. 601, et seq. 
(FAC 90-30, FAR case 94-766), in correspondence.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the changes to 
the FAR do not impose recordkeeping or information collection 
requirements, or collections of information from offerors, contractors, 
or members of the public which require the approval of the Office of 
Management and Budget under 44 U.S.C. 3501, et seq.

List of Subjects in 48 CFR Parts 32 and 37

    Government procurement.

    Dated: July 17, 1995.
Capt. Barry L. Cohen, SC, USN,
Project Manager for the Implementation of the Federal Acquisition 
Streamlining Act of 1994.
    Therefore, 48 CFR Parts 32 and 37 are amended as set forth below:

PART 32--CONTRACT FINANCING

    1. The authority citation for 48 CFR Parts 32 and 37 continues to 
read as follows:

    Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42 
U.S.C. 2473(c).

    2. Section 32.703-3 is revised to read as follows:


32.703-3  Contracts crossing fiscal years.

    (a) A contract that is funded by annual appropriations may not 
cross fiscal years, except in accordance with statutory authorization 
(see 41 U.S.C. 11a, 31 U.S.C. 1308, 42 U.S.C. 2459a and 41 U.S.C. 253l 
(see paragraph (b) of this section)), or when the contract calls for an 
end product that cannot feasibly be subdivided for separate performance 
in each fiscal year (e.g., contracts for expert or consultant 
services).
    (b) 41 U.S.C. 253l, as amended by Section 1073 of the Federal 
Acquisition Streamlining Act of 1994 (Pub. L. 103-355), authorizes 
heads of executive agencies other than the Department of Defense, 
United States Coast Guard, and the National Aeronautics and Space 
Administration (41 U.S.C. 252(a)(1)), to enter into a basic contract, 
options, or orders under that contract for procurement of severable 
services for a period that begins in one fiscal year and ends in the 
next fiscal year if the period of the basic contract, options or orders 
under that contract does not exceed one year each. Funds made available 
for a fiscal year may be obligated for the total amount of an action 
entered into under this authority (see 37.106(b)). Consult agency 
supplements for similar authorities that may exist for the Department 
of Defense, United States Coast Guard, or the National Aeronautics and 
Space Administration.
PART 37--SERVICE CONTRACTING
    3. Section 37.106 is revised to read as follows:
37.106  Funding and term of service contracts.
    (a) When contracts for services are funded by annual 
appropriations, the term of contracts so funded shall not extend beyond 
the end of the fiscal year of the appropriation except when authorized 
by law (see paragraph (b) of this section for certain service 
contracts, 32.703-2 for contracts conditioned upon availability of 
funds, and 32.703-3 for contracts crossing fiscal years).
    (b) 41 U.S.C. 253l, as amended by Section 1073 of the Federal 
Acquisition Streamlining Act of 1994 (Pub. L. 103-355), authorizes the 
head of any executive agency except the Department of Defense, United 
States Coast Guard, and the National Aeronautics and Space 
Administration (41 U.S.C. 252(a)(1)), to enter into a basic contract, 
options, or orders under that contract for procurement of severable 
services for a period that begins in one fiscal year and ends in the 
next fiscal year if the period of the basic contract, options or orders 
under that contract does not exceed one year each. Funds made available 
for a fiscal year may be obligated for the total amount of an action 
entered into under this authority (see 32.703-3(b)). Consult agency 
supplements for similar authorities that may exist for the Department 
of Defense, United States

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Coast Guard, or the National Aeronautics and Space Administration.
[FR Doc. 95-17938 Filed 7-20-95; 8:45 am]
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