FAC_2005-101_10-26-18.pdf

FEDERAL ACQUISITION CIRCULAR

October 26, 2018 Number 2005-101

Effective October 26, 2018 Loose-leaf pages

Federal Acquisition Circular (FAC) 2005-101 is issued under the authority of the Secretary of Defense, the Administrator of General Services, and the Administrator for the National Aeronautics and Space Administration.

Unless otherwise specified, all Federal Acquisition Regulation (FAR) and other directive material contained in FAC 2005-101 is effective October 26, 2018.

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ii

FAC 2005-101 List of Subjects

Item Title Page

I System for Award Management Registration (FAR Case 2015-005) v

II One Dollar Coins (FAR Case 2018-009) v iii

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iv

FAC 2005-101 SUMMARY OF ITEMS

Federal Acquisition Circular (FAC) 2005-101 amends the Federal Acquisition Regulation (FAR) as specified below:

Item I— System for Award Management Registration (FAR Case 2015- 005)

This final rule updates the instructions for registration in the System for Award Management (SAM) and corrects an inconsistency involving the timing of registration. In order to correct this inconsistency, the final rule amends FAR 4.1102, 4.1103, and 52.204-7 to require (with some exceptions) offeror registration in SAM prior to submission of an offer.

In addition, the rule requires contracting officers to use the name and physical address from the contractor’s SAM registration for the provided “unique entity identifier”;

removes the term “division name” from the FAR text at FAR 4.1102 and clause 52.204-13; and changes the referenced website “acquisition.gov” to “sam.gov” to be consistent with the rest of the FAR. It is not anticipated that the rule will have a significant economic impact on small entities, because the rule only clarifies that offerors must be registered in SAM prior to submission of an offer, which is already necessary in order to submit the required annual representations and certifications with the offer.

Replacement pages: 1.1-3 and 1.1-4; 2.1-13 and 2.1-14; 4.6-1 and 4.6-2; 4.11-1 and 4.11-2; 4.12-1 and 4.12-2; 7.1-1 thru 7.1-6;

8.4-1 and 8.4-2; 9.1-7 and 9.1-8; 9.4-1 thru 9.4-10; 12.3-1 thru 12.3-4; 13.1-3 thru 13.1-6; 13.2-1 and 13.2-2; 16.5-5 and 16.5- 6; 17.2-1 and 17.2-2; 18.1-1 thru 18.1-4; 19.3-09 and 19.3-10;

19.7-3 and 19.7-4; 22.10-13 and 22.10-14; 23.8-1 and 23.8-2;

25.7-3 and 25.7-4; 26.2-1 and 26.2-2; 28.2-3 thru 28.2-6; 32.11- 1 and 32.11-2; 44.2-1 thru 44.2-4; 52.2-11 thru 5.2-12.12; 52.2- 2-20.1 and 52.2-20.2; 52.2-27 thru 52.2-42.6; 52.2-93 thru 52.2- 96?; 52.2-229 and 52.2-230; 52.2-261 and 52.2-262.

Item II— One Dollar Coins (FAR Case 2018-009)

This final rule amends the FAR to implement section 885 of the National Defense Authorization Act for Fiscal Year 2018 (Publ. L. 115-91). Section 885 amends 31 U.S.C. 5112(p) to v provide an exception for business operations conducted by an entity under a Government contract from the requirements to accept and dispense $1 coins.

Contracting officers will no longer have to insert FAR clause 52.237-11, Accepting and Dispensing of $1 Coin, into solicitations and contracts.

Contractors providing services under Government contracts that involve business operations conducted in U.S. coins and currency will no longer be required to accept $1 coins.

The Regulatory Flexibility Act does not apply to this rule, because this final rule does not constitute a significant FAR revision within the meaning of FAR 1.501-1, and 41 U.S.C. 1707 does not require publication for public comment.

Replacement pages: TOC 37-1 and 37-2; 37.1-5 and 37.1-6; TOC 52- 7 and 52-8; 52.2-27 thru 52.2-42.6; 52.2-247 and 52.2-248; 52.3- 29 and 53.2-30.

vi

FAC 2005-101 FILING INSTRUCTIONS

NOTE: The FAR is segmented by subparts. The FAR page numbers reflect FAR Subparts. For example, “1.1-3” is page 3 of subpart 1.1.

Remove Pages Insert Pages 1.1-3 and 1.1-4 1.1-3 and 1.1-4

2.1-13 and 2.1-14 2.1-13 and 2.1-14

4.6-1 and 4.6-2 4.6-1 and 4.6-2 4.11-1 and 4.11-2 4.11-1 and 4.11-2 4.12-1 and 4.12-2 4.12-1 and 4.12-2

7.1-1 thru 7.1-6 7.1-1 thru 7.1-6

8.4-1 and 8.4-2 8.4-1 and 8.4-2

9.1-7 and 9.1-8 9.1-7 and 9.1-8 9.4-1 thru 9.4-10 9.4-1 thru 9.4-1

12.3-1 thru 12.3-4 12.3-1 thru 12.3-4

13.1-3 thru 13.1-6 13.1-3 thru 13.1-6 13.2-1 and 13.2-2 13.2-1 and 13.2-2

16.5-5 and 16.5-6 16.5-5 and 16.5-6

17.2-1 and 17.2-2 17.2-1 and 17.2-2

18.1-1 thru 18.1-2 18.1-1 thru 18.1-4

19.3-9 and 19.3-10 19.3-9 and 19.3-10 19.7-3 and 19.7-4 19.7-3 and 19.7-4

22.10-13 and 22.10-14 22.10-13 and 22.10-14

23.8-1 and 23.8-2 23.8-1 and 23.8-2

25.7-3 and 25.7-4 25.7-3 and 25.7-4

26.2-1 and 26.2-2 26.2-1 and 26.2-2 vii

Remove Pages Insert Pages

28.2-3 thru 28.2-6 28.2-3 thru 28.2-6

32.11-1 and 32.11-2 32.11-1 and 32.11-2

TOC 37-1 and 37-2 TOC 37-1 and 37-2 37.1-5 and 37.1-6 37.1-5 and 37.1-6

44.2-1 thru 44.2-4 44.2-1 thru 44.2-4

TOC 52-7 and 52-8 TOC 52-7 and 52-8 52.2-11 thru 5.2-12.12 52.2-11 thru 5.2-12.12 52.2-2-20.1 and 52.2-20.2 52.2-2-20.1 and 52.2-20.2 52.2-27 thru 52.2-42.6 52.2-27 thru 52.2-42.6 52.2-93 thru 52.2-96 52.2-93 thru 52.2-96 52.2-229 and 52.2-230 52.2-229 and 52.2-230 52.2-247 thru 52.2-248.2 52.2-247 and 52.2-248 52.2-261 and 52.2-262 52.2-261 and 52.2-262

Matrix Matrix 52.3-29 and 52.3-30 52.3-29 and 52.3-30 viii

SUBPART 1.1—PURPOSE, AUTHORITY, ISSUANCE 1.106

(FAC 2005-101)

1.1-3

1.104 Applicability.

The FAR applies to all acquisitions as defined in Part 2 of the FAR, except where expressly excluded.

1.105 Issuance.

1.105-1 Publication and code arrangement.

(a) The FAR is published in—

(1) The daily issue of the Federal Register;

(2) Cumulated form in the Code of Federal Regulations

(CFR); and

(3) A separate loose-leaf edition.

(b) The FAR is issued as Chapter 1 of Title 48, CFR. Sub-sequent chapters are reserved for agency acquisition regula-tions that implement or supplement the FAR (see Subpart 1.3). The CFR Staff will assign chapter numbers to requesting agencies.

(c) Each numbered unit or segment (e.g., part, subpart, sec-tion, etc.) of an agency acquisition regulation that is codified in the CFR shall begin with the chapter number. However, the chapter number assigned to the FAR will not be included in the numbered units or segments of the FAR.

1.105-2 Arrangement of regulations.

(a) General. The FAR is divided into subchapters, parts

(each of which covers a separate aspect of acquisition), sub-parts, sections, and subsections.

(b) Numbering.(1) The numbering system permits the dis-crete identification of every FAR paragraph. The digits to the left of the decimal point represent the part number. The num-bers to the right of the decimal point and to the left of the dash represent, in order, the subpart (one or two digits), and the sec-tion (two digits). The number to the right of the dash rep-resents the subsection. Subdivisions may be used at the section and subsection level to identify individual paragraphs.

The following example illustrates the make-up of a FAR num-ber citation (note that subchapters are not used with citations):

(2) Subdivisions below the section or subsection level consist of parenthetical alpha numerics using the following sequence:

(a)(1)(i)(A)(1)(i)

(c) References and citations.(1) Unless otherwise stated, cross-references indicate parts, subparts, sections, subsec-tions, paragraphs, subparagraphs, or subdivisions of this regulation.

(2) This regulation may be referred to as the Federal Acquisition Regulation or the FAR.

(3) Using the FAR coverage at 9.106-4(d) as a typical illustration, reference to the—

(i) Part would be “FAR part 9” outside the FAR and “part 9” within the FAR.

(ii) Subpart would be “FAR subpart 9.1” outside the FAR and “subpart 9.1’’ within the FAR.

(iii) Section would be “FAR 9.106” outside the FAR and “9.106” within the FAR.

(iv) Subsection would be “FAR 9.106-4” outside the FAR and “9.106-4” within the FAR.

(v) Paragraph would be “FAR 9.106-4(d)” outside the FAR and “9.106-4(d)” within the FAR.

(4) Citations of authority (e.g., statutes or Executive orders) in the FAR shall follow the Federal Register form guides.

1.105-3 Copies.

Copies of the FAR in Federal Register, loose-leaf, CD-ROM, and CFR form may be purchased from the—

Superintendent of Documents Government Printing Office (GPO) Washington, DC 20402.

1.106 OMB approval under the Paperwork Reduction

Act.

The Paperwork Reduction Act of 1980 (44 U.S.C. chapter

35) imposes a requirement on Federal agencies to obtain approval from the Office of Management and Budget (OMB) before collecting information from 10 or more members of the public. The information collection and recordkeeping require-ments contained in this regulation have been approved by the OMB. The following OMB control numbers apply:

Part

Subpart Section Subsection

25.108-2

FAR segment OMB Control Number

3.103 9000-0018

3.11 9000-0183

4.102 9000-0033

4.5 9000-0137

4.605 9000-0145

4.607 9000-0145

4.7 9000-0034

4.9 9000-0097

4.14 9000-0177

4.17 9000-0179

5.405 9000-0036

7.2 9000-0082

8.5 9000-0113

9.1 9000-0011

9.2 9000-0083

14.201 9000-0034 14.202-4 9000-0040 14.202-5 9000-0039

14.205 9000-0037

14.407 9000-0038

1.106 FEDERAL ACQUISITION REGULATION

FAC 2005–101 OCTOBER 26, 2018

1.1-4

14.5 9000-0041

15.2 9000-0037

15.209 9000-0034

15.4 9000-0013 15.404-1(f) 9000-0080 15.407-2 9000-0078

15.408 9000-0115

19.7 9000-0192, 9000-0006 and 9000-0007

22.103 9000-0065

22.5 9000-0175

22.8 1250-0003

22.11 9000-0066

22.12 1235-0007 and

1235-0025

22.14 1250-0005

22.16 1215-0004

22.17 9000-0188

23.602 9000-0107

24.3 9000-0182

25.302 9000-0184

27.2 9000-0096

27.3 9000-0095

27.4 9000-0090

28.1 9000-0045

28.2 9000-0045

29.304 9000-0059

30.6 9000-0129 31.205-46 9000-0079 31.205-46(a)(3) 9000-0088

32.000 9000-0138

32.1 9000-0070 and

9000-0138

32.2 9000-0138

32.4 9000-0073

32.5 9000-0010 and

9000-0138

32.7 9000-0074

32.9 9000-0102

32.10 9000-0138 33 9000-0035 36.213-2 9000-0037

36.603 9000-0157 41.202(c) 9000-0125

42.7 9000-0013

42.12 9000-0076

42.13 9000-0076

42.15 9000-0142

44.305 9000-0132 45 9000-0075 46 9000-0077

FAR segment OMB Control Number

47 9000-0061

47.208 9000-0056 48 9000-0027 49 9000-0028 50 9000-0029

51.1 9000-0031

51.2 9000-0032 52.203-2 9000-0018 52.203-7 9000-0091 52.203-13 9000-0164 52.203-16 9000-0183 52.204-3 9000-0097 52.204-6 9000-0145 52.204-7 9000-0159 52.204-10 9000-0177 52.204-12 9000-0145 52.204-13 9000-0159 52.204-14 9000-0179 52.204-15 9000-0179 52.204-16 9000-0185 52.204-17 9000-0185 52.204-18 9000-0185 52.204-20 9000-0189 52.204-23 9000-0197 52.207-3 9000-0114 52.207-4 9000-0082 52.208-8 9000-0113 52.208-9 9000-0113 52.209-1 9000-0083 52.209-1(b) 9000-0020 52.209-1(c) 9000-0083 52.207-2 9000-0190 52.209-5 9000-0094 52.209-6 9000-0094 52.209-7 9000-0174 52.209-9 9000-0174 52.209-10 9000-0190 52.209-11 9000-0193 52.209-12 9000-0193 52.209-13 9000-0198 52.211-7 9000-0153 52.211-8 9000-0043 52.211-9 9000-0043

52.212-3 9000-0136 52.212-3(h) 9000-0094

52.212-5 9000-0034 52.214-14 9000-0047 52.214-15 9000-0044 52.214-16 9000-0044 52.214-21 9000-0039

FAR segment OMB Control Number

SUBPART 2.1—DEFINITIONS 2.101

(FAC 2005–101)

2.1-13 “Overtime premium” means the difference between the contractor’s regular rate of pay to an employee for the shift involved and the higher rate paid for overtime. It does not include shift premium, i.e., the difference between the con-tractor's regular rate of pay to an employee and the higher rate paid for extra-pay-shift work.

“Ozone-depleting substance” means any substance the Environmental Protection Agency designates in 40 CFR part 82 as—

(1) Class I, including, but not limited to, chlorofluoro-carbons, halons, carbon tetrachloride, and methyl chloroform;

or

(2) Class II, including, but not limited to, hydrochlorofluorocarbons.

“Partial termination” means the termination of a part, but not all, of the work that has not been completed and accepted under a contract.

“Past performance” means an offeror’s or contractor’s per-formance on active and physically completed contracts (see 4.804-4).

“Performance-based acquisition (PBA)” means an acqui-sition structured around the results to be achieved as opposed to the manner by which the work is to be performed.

“Performance Work Statement (PWS)” means a statement of work for performance-based acquisitions that describes the required results in clear, specific and objective terms with measurable outcomes.

“Personal property” means property of any kind or interest in it except real property, records of the Federal Government, and naval vessels of the following categories:

(1) Battleships;

(2) Cruisers;

(3) Aircraft carriers;

(4) Destroyers; and

(5) Submarines.

“Personal services contract” means a contract that, by its express terms or as administered, makes the contractor per-sonnel appear to be, in effect, Government employees (see 37.104).

“Plant clearance officer” means an authorized representa-tive of the contracting officer, appointed in accordance with agency procedures, responsible for screening, redistributing, and disposing of contractor inventory from a contractor’s plant or work site. The term “Contractor’s plant” includes, but is not limited to, Government-owned contractor-operated plants, Federal installations, and Federal and non-Federal industrial operations, as may be required under the scope of the contract.

“Pollution prevention” means any practice that— (1)(i) Reduces the amount of any hazardous substance, pollutant, or contaminant entering any waste stream or other-wise released into the environment (including fugitive emis-sions) prior to recycling, treatment, or disposal; and

(ii) Reduces the hazards to public health and the environment associated with the release of such substances, pollutants, and contaminants;

(2) Reduces or eliminates the creation of pollutants through increased efficiency in the use of raw materials, energy, water, or other resources; or

(3) Protects natural resources by conservation.

“Power of attorney” means the authority given one person or corporation to act for and obligate another, as specified in the instrument creating the power; in corporate suretyship, an instrument under seal that appoints an attorney-in-fact to act in behalf of a surety company in signing bonds (see also “attorney-in-fact” at 28.001).

“Preaward survey” means an evaluation of a prospective contractor’s capability to perform a proposed contract.

“Preponderance of the evidence” means proof by informa-tion that, compared with that opposing it, leads to the conclu-sion that the fact at issue is more probably true than not.

“Pricing” means the process of establishing a reasonable amount or amounts to be paid for supplies or services.

“Principal” means an officer, director, owner, partner, or a person having primary management or supervisory responsi-bilities within a business entity (e.g., general manager; plant manager; head of a division or business segment; and similar positions).

“Procurement” (see “acquisition”).

“Procuring activity” means a component of an executive agency having a significant acquisition function and desig-nated as such by the head of the agency. Unless agency regu-lations specify otherwise, the term “procuring activity” is synonymous with “contracting activity.”

“Products” has the same meaning as “supplies.”

“Projected average loss” means the estimated long-term average loss per period for periods of comparable exposure to risk of loss.

“Proper invoice” means an invoice that meets the mini-mum standards specified in 32.905(b).

“Purchase order,” when issued by the Government, means an offer by the Government to buy supplies or services, including construction and research and development, upon specified terms and conditions, using simplified acquisition procedures.

“Qualification requirement” means a Government require-ment for testing or other quality assurance demonstration that must be completed before award of a contract.

“Qualified products list (QPL)” means a list of products that have been examined, tested, and have satisfied all appli-cable qualification requirements.

“Receiving report” means written evidence that indicates Government acceptance of supplies delivered or services per-formed (see subpart 46.6). Receiving reports must meet the requirements of 32.905(c).

“Recovered material” means waste materials and by-prod-ucts recovered or diverted from solid waste, but the term does not include those materials and by-products generated from,

2.101 FEDERAL ACQUISITION REGULATION

2.1-14 and commonly reused within, an original manufacturing pro-cess. For use in subpart 11.3 for paper and paper products, see the definition at 11.301.

“Registered in the System for Award Management (SAM)” means that—

(1) The Contractor has entered all mandatory informa-tion, including the unique entity identifier and the Electronic Funds Transfer indicator (if applicable), the Commercial and Government Entity (CAGE) code, as well as data required by the Federal Funding Accountability and Transparency Act of 2006 (see subpart 4.14), into SAM;

(2) The Contractor has completed the Core, Assertions, Representations and Certifications, and Points of Contact sec-tions of the registration in SAM;

(3) The Government has validated all mandatory data fields, to include validation of the Taxpayer Identification Number (TIN) with the Internal Revenue Service (IRS). The contractor will be required to provide consent for TIN valida-tion to the Government as a part of the SAM registration pro-cess; and

(4) The Government has marked the record Active.

“Renewable energy” means energy produced by solar, wind, geothermal, biomass, landfill gas, ocean (including tidal, wave, current, and thermal), municipal solid waste, or new hydroelectric generation capacity achieved from increased efficiency or additions of new capacity at an exist-ing hydroelectric project (Energy Policy Act of 2005, 42 U.S.C. 15852).

“Renewable energy technology” means—

(1) Technologies that use renewable energy to provide light, heat, cooling, or mechanical or electrical energy for use in facilities or other activities; or

(2) The use of integrated whole-building designs that rely upon renewable energy resources, including passive solar design.

“Requesting agency” means the agency that has the requirement for an interagency acquisition.

“Residual value” means the proceeds, less removal and disposal costs, if any, realized upon disposition of a tangible capital asset. It usually is measured by the net proceeds from the sale or other disposition of the asset, or its fair value if the asset is traded in on another asset. The estimated residual value is a current forecast of the residual value.

“Responsible audit agency” means the agency that is responsible for performing all required contract audit services at a business unit.

“Responsible prospective contractor” means a contractor that meets the standards in 9.104.

“Scrap” means personal property that has no value except its basic metallic, mineral, or organic content.

“Segment” means one of two or more divisions, product departments, plants, or other subdivisions of an organization reporting directly to a home office, usually identified with responsibility for profit and/or producing a product or service.

The term includes—

(1) Government-owned contractor-operated (GOCO) facilities; and

(2) Joint ventures and subsidiaries (domestic and for-eign) in which the organization has—

(i) A majority ownership; or

(ii) Less than a majority ownership, but over which it exercises control.

“Self-insurance” means the assumption or retention of the risk of loss by the contractor, whether voluntarily or involun-tarily. Self-insurance includes the deductible portion of pur-chased insurance.

“Senior procurement executive” means the individual appointed pursuant to 41 U.S.C. 1702(c) who is responsible for management direction of the acquisition system of the executive agency, including implementation of the unique acquisition policies, regulations, and standards of the execu-tive agency.

“Service-disabled veteran-owned small business concern”—

(1) Means a small business concern—

(i) Not less than 51 percent of which is owned by one or more service-disabled veterans or, in the case of any pub-licly owned business, not less than 51 percent of the stock of which is owned by one or more service-disabled veterans; and

(ii) The management and daily business operations of which are controlled by one or more service-disabled vet-erans or, in the case of a service-disabled veteran with perma-nent and severe disability, the spouse or permanent caregiver of such veteran.

(2) Service-disabled veteran means a veteran, as defined in 38 U.S.C. 101(2), with a disability that is service-connected, as defined in 38 U.S.C. 101(16).

“Servicing agency” means the agency that will conduct an assisted acquisition on behalf of the requesting agency.

“Shall” means the imperative.

“Shipment” means freight transported or to be transported.

“Shop drawings” means drawings submitted by the con-struction contractor or a subcontractor at any tier or required under a construction contract, showing in detail either or both of the following:

(1) The proposed fabrication and assembly of structural elements.

(2) The installation (i.e., form, fit, and attachment details) of materials or equipment.

“Should” means an expected course of action or policy that is to be followed unless inappropriate for a particular circumstance.

“Signature” or “signed” means the discrete, verifiable symbol of an individual that, when affixed to a writing with the knowledge and consent of the individual, indicates a pres-ent intention to authenticate the writing. This includes elec-tronic symbols.

“Simplified acquisition procedures” means the methods prescribed in part 13 for making purchases of supplies or ser-vices.

SUBPART 4.6—CONTRACT REPORTING 4.604

4.6-1

Subpart 4.6—Contract Reporting

4.600 Scope of subpart.

This subpart prescribes uniform reporting requirements for the Federal Procurement Data System (FPDS).

4.601 Definitions.

As used in this subpart— “Contract action” means any oral or written action that results in the purchase, rent, or lease of supplies or equipment, services, or construction using appropriated dollars over the micro-purchase threshold, or modifications to these actions regardless of dollar value. Contract action does not include grants, cooperative agreements, other transactions, real prop-erty leases, requisitions from Federal stock, training authori-zations, or other non-FAR based transactions.

“Contract action report (CAR)” means contract action data required to be entered into the Federal Procurement Data System (FPDS).

“Definitive contract” means any contract that must be reported to FPDS other than an indefinite delivery vehicle.

This definition is only for FPDS, and is not intended to apply to Part 16.

“Entitlement program” means a Federal program that guarantees a certain level of benefits to persons or other enti-ties who meet requirements set by law, such as Social Secu-rity, farm price supports, or unemployment benefits.

“Generic entity identifier” means a number or other iden-tifier assigned to a category of vendors and not specific to any individual or entity.

“Indefinite delivery vehicle (IDV)” means an indefinite delivery contract or agreement that has one or more of the fol-lowing clauses:

(1) 52.216-18, Ordering.

(2) 52.216-19, Order Limitations.

(3) 52.216-20, Definite Quantity.

(4) 52.216-21, Requirements.

(5) 52.216-22, Indefinite Quantity.

(6) Any other clause allowing ordering.

4.602 General.

(a) The FPDS provides a comprehensive web-based tool for agencies to report contract actions. The resulting data pro-vides—

(1) A basis for recurring and special reports to the Pres-ident, the Congress, the Government Accountability Office, Federal executive agencies, and the general public;

(2) A means of measuring and assessing the effect of Federal contracting on the Nation's economy and the extent to which small, veteran-owned small, service-disabled veteran-owned small, HUBZone small, small disadvantaged, women-owned small business concerns, and AbilityOne nonprofit agencies operating under 41 U.S.C. chapter 85, Committee for Purchase from People Who Are Blind or Severely Disabled, are sharing in Federal contracts;

(3) A means of measuring and assessing the effect of Federal contracting for promoting sustainable technologies, materials, products, and high-performance sustainable build-ings. This is accomplished by collecting and reporting agency data on sustainable acquisition, including types of products purchased, the purchase costs, and the exceptions used for other than sustainable acquisition; and

(4) A means of measuring and assessing the effect of other policy and management initiatives (e.g., performance based acquisitions and competition).

(b) FPDS does not provide reports for certain acquisition information used in the award of a contract action (e.g., sub-contracting data, funding data, or accounting data).

(c) The FPDS Web site, https://www.fpds.gov, provides instructions for submitting data. It also provides—

(1) A complete list of departments, agencies, and other entities that submit data to the FPDS;

(2) Technical and end-user guidance;

(3) A computer-based tutorial; and

(4) Information concerning reports not generated in

FPDS.

4.603 Policy.

(a) In accordance with the Federal Funding Accountability and Transparency Act of 2006 (Pub. L. 109-282), all unclas-sified Federal award data must be publicly accessible.

(b) Executive agencies shall use FPDS to maintain publicly available information about all unclassified contract actions exceeding the micro-purchase threshold, and any modifica-tions to those actions that change previously reported contract action report data, regardless of dollar value.

(c) Agencies awarding assisted acquisitions or direct acquisitions must report these actions and identify the Pro-gram/Funding Agency and Office Codes from the applicable agency codes maintained by each agency at FPDS. These codes represent the agency and office that has provided the predominant amount of funding for the contract action. For assisted acquisitions, the requesting agency will receive socioeconomic credit for meeting agency small business goals, where applicable. Requesting agencies shall provide the appropriate agency/bureau component code as part of the written interagency agreement between the requesting and servicing agencies (see 17.502-1(b)(1)).

(d) Agencies awarding contract actions with a mix of appropriated and non-appropriated funding shall only report the full appropriated portion of the contract action in FPDS.

4.604 Responsibilities.

(a) The Senior Procurement Executive in coordination with the head of the contracting activity is responsible for developing and monitoring a process to ensure timely and accurate reporting of contractual actions to FPDS.

(b)(1) The responsibility for the completion and accuracy of the individual contract action report (CAR) resides with the

4.605 FEDERAL ACQUISITION REGULATION

4.6-2 contracting officer who awarded the contract action. CARs in a draft or error status in FPDS are not considered complete.

(2) The CAR must be confirmed for accuracy by the contracting officer prior to release of the contract award. The CAR must then be completed in FPDS within three business days after contract award.

(3) For any action awarded in accordance with FAR 6.302-2 or pursuant to any of the authorities listed at FAR sub-part 18.2, the CAR must be completed in FPDS within 30 days after contract award.

(4) When the contracting office receives written notifi-cation that a contractor has changed its size status in accor-dance with the clause at 52.219-28, Post-Award Small Business Program Rerepresentation, the contracting officer shall update the size status in FPDS within 30 days after receipt of contractor’s notification of rerepresentation.

(5) If after award of a contract, the contracting officer receives written notification of SBA’s final decision on a pro-test concerning a size determination, the contracting officer shall update FPDS to reflect the final decision.

(c) The chief acquisition officer of each agency required to report its contract actions must submit to the General Services Administration (GSA), in accordance with FPDS guidance, within 120 days after the end of each fiscal year, an annual cer-tification of whether, and to what degree, agency CAR data for the preceding fiscal year is complete and accurate.

4.605 Procedures.

(a) Procurement Instrument Identifier (PIID). Agencies shall have in place a process that ensures that each PIID reported to FPDS is unique Governmentwide, for all solicita-tions, contracts, blanket purchase agreements, basic agree-ments, basic ordering agreements, or orders in accordance with 4.1601 to 4.1603, and will remain so for at least 20 years from the date of contract award. Other pertinent PIID instruc-tions for FPDS reporting can be found at https:// www.fpds.gov.

(b) Unique entity identifier. The contracting officer shall identify and report a unique entity identifier for the successful offeror on a contract action. The unique entity identifier shall correspond to the successful offeror’s name and address as stated in the offer and resultant contract, and as registered in the System for Award Management in accordance with the provision at 52.204-7, System for Award Management. The contracting officer shall ask the offeror to provide its unique entity identifier by using either the provision at 52.204-6, Unique Entity Identifier, the provision at 52.204-7, System for Award Management, or the provision at 52.212-1, Instruc-tions to Offerors-Commercial Items. (For a discussion of the Commercial and Government Entity (CAGE) Code, which is a different identifier, see subpart 4.18.)

(c) Generic entity identifier. (1) The use of a generic entity identifier should be limited, and only used in the situations described in paragraph (c)(2) of this section. Use of a generic entity identifier does not supersede the requirements of pro-visions 52.204-6, Unique Entity Identifier or 52.204-7, Sys-tem for Award Management (if present in the solicitation) for the contractor to have a unique entity identifier assigned.

(2) Authorized generic entity identifiers, maintained by the Integrated Award Environment (IAE) program office (http://www.gsa.gov/portal/content/105036), may be used to report contracts in lieu of the contractor’s actual unique entity identifier only for—

(i) Contract actions valued at or below $30,000 that are awarded to a contractor that is—

(A) A student;

(B) A dependent of either a veteran, foreign ser-vice officer, or military member assigned outside the United States and its outlying areas (as defined in 2.101); or

(C) Located outside the United States and its out-lying areas for work to be performed outside the United States and its outlying areas and the contractor does not otherwise have a unique entity identifier;

(ii) Contracts valued above $30,000 awarded to indi-viduals located outside the United States and its outlying areas for work to be performed outside the United States and its out-lying areas; or

(iii) Contracts when specific public identification of the contracted party could endanger the mission, contractor, or recipients of the acquired goods or services. The contracting officer must include a written determination in the contract file of a decision applicable to authority under this paragraph (c)(2)(iii).

(d) American Recovery and Reinvestment Act actions. The contracting officer, when entering data in FPDS, shall use the instructions at https://www.fpds.gov to identify any action funded in whole or in part by the American Recovery and Reinvestment Act of 2009 (Pub. L. 111-5).

(e) Office Codes. Agencies shall by March 31, 2016–

(1) Use the Activity Address Code (AAC), as defined in

2.101, assigned to the issuing contracting office as the con-tracting office code, and

(2) Use the AAC assigned to the program/funding office providing the predominance of funding for the contract action as the program/funding office code.

4.606 Reporting Data.

(a) Actions required to be reported to FPDS.(1) As a min-imum, agencies must report the following contract actions over the micro-purchase threshold, regardless of solicitation process used, and agencies must report any modification to these contract actions that change previously reported con-tract action data, regardless of dollar value:

(i) Definitive contracts, including purchase orders and imprest fund buys over the micro-purchase threshold awarded by a contracting officer.

(ii) Indefinite delivery vehicle (identified as an “IDV” in FPDS). Examples of IDVs include the following:

(A) Task and Delivery Order Contracts (see subpart 16.5), including—

SUBPART 4.11—SYSTEM FOR AWARD MANAGEMENT 4.1102

4.11-1 Subpart 4.11—System for Award Management

4.1100 Scope.

This subpart prescribes policies and procedures for requir-ing contractor registration in the System for Award Manage-ment (SAM) to—

(a) Increase visibility of vendor sources (including their geographical locations) for specific supplies and services; and

(b) Establish a common source of vendor data for the Government.

4.1101 Definition.

As used in this subpart— “Agreement” means basic agreement, basic ordering agreement, or blanket purchase agreement.

4.1102 Policy.

(a) Offerors and quoters are required to be registered in

SAM at the time an offer or quotation is submitted in order to comply with the annual representations and certifications requirements except for—

(1) Purchases under the micro-purchase threshold that use a Governmentwide commercial purchase card as both the purchasing and payment mechanism, as opposed to using the purchase card for payment only;

(2) Classified contracts (see 2.101) when registration in SAM, or use of SAM data, could compromise the safeguard-ing of classified information or national security;

(3) Contracts awarded by—

(i) Deployed contracting officers in the course of military operations, including, but not limited to, contingency operations as defined in 10 U.S.C. 101(a)(13) or humanitar-ian or peacekeeping operations as defined in 10 U.S.C. 2302(8);

(ii) Contracting officers located outside the United States and its outlying areas, as defined in 2.101, for work to be performed in support of diplomatic or developmental oper-ations, including those performed in support of foreign assis-tance programs overseas, in an area that has been designated by the Department of State as a danger pay post (see http:// aoprals.state.gov/Web920/danger_pay_all.asp); or

(iii) Contracting officers in the conduct of emer-gency operations, such as responses to natural or environmen-tal disasters or national or civil emergencies, e.g., Robert T.

Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121);

(4) Contracts with individuals for performance outside the United States and its outlying areas;

(5) Contracts awarded without providing for full and open competition due to unusual or compelling urgency (see 6.302-2);

(6) Contract actions at or below $30,000 awarded to for-eign vendors for work performed outside the United States, if it is impractical to obtain SAM registration; and

(7) Micro-purchases that do not use the electronic funds transfer (EFT) method for payment and are not required to be reported (see subpart 4.6).

(b) If practical, the contracting officer shall modify the contract or agreement awarded under paragraph (a)(3) of this section to require SAM registration.

(c) Contracting officers shall use the legal business name or “doing business as” name and physical address from the contractor’s SAM registration for the provided unique entity identifier to identify the contractor in section A of the contract schedule, similar sections of non-uniform contract formats and agreements, and all corresponding forms and data exchanges. Contracting officers shall make no changes to the data retrieved from SAM.

(d) (1) (i) If a contractor has legally changed its business name or “doing business as” name (whichever is shown on the contract), or has transferred the assets used in performing the contract, but has not completed the necessary requirements regarding novation and change-of-name agreements in subpart 42.12, the contractor is required to provide the responsible contracting officer a minimum of one business day’s written notification of its intention to change the name in SAM, comply with the requirements of subpart 42.12, and agree in writing to the timeline and procedures specified by the responsible contracting officer. Along with the notifica-tion, the contractor is required to provide the contracting offi-cer sufficient documentation to support the legally changed name.

(ii) If the contractor fails to comply with the require-ments of paragraph (d)(1)(i) of the clause at 52.204-13, Sys-tem for Award Management Maintenance, or fails to perform the agreement at 52.204-13, paragraph (d)(1)(i)(C), and, in the absence of a properly executed novation or change-of-name agreement, the SAM information that shows the contractor to be other than the contractor indicated in the contract will be considered to be incorrect information within the meaning of the “Suspension of Payment” paragraph of the EFT clause of the contract.

(2) The contractor shall not change the name or address for electronic funds transfer payments (EFT) or manual pay-ments, as appropriate, in the SAM record to reflect an assignee for the purpose of assignment of claims (see subpart 32.8, Assignment of Claims).

(3) Assignees shall be separately registered in SAM.

Information provided to the contractor’s SAM record that indicates payments, including those made by EFT, to an ulti-mate recipient other than that contractor will be considered to be incorrect information within the meaning of the “Suspen-sion of payment” paragraph of the EFT clause of the contract.

4.1103 FEDERAL ACQUISITION REGULATION

4.11-2

4.1103 Procedures.

(a) Unless the acquisition is exempt under 4.1102(a), the contracting officer—

(1) Shall verify that the offeror or quoter is registered in

SAM (see paragraph (b) of this section) at the time an offer or quotation is submitted;

(2) Should use the unique entity identifier to verify SAM registration–

(i) Via https://www.sam.gov; or

(ii) As otherwise provided by agency procedures; or

(3) Need not verify SAM registration before placing an order or call if the contract or agreement includes the provi-sion at 52.204-7, System for Award Management, or the clause at 52.212-4, Contract Terms and Conditions-Commer-cial Items, or a similar agency clause, except when use of the Governmentwide commercial purchase card is contemplated as a method of payment. (See 32.1108(b)(2).)

(b) If the contract action is being awarded in accordance with 4.1102(a)(5), the contractor is required to be registered in SAM within 30 days after contract award, or at least three days prior to submission of the first invoice, whichever occurs first.

(c) Agencies shall protect against improper disclosure of information contained in SAM.

(d) The contracting officer shall, on contractual documents transmitted to the payment office, provide the unique entity identifier, or, if applicable, the Electronic Funds Transfer indi-cator, in accordance with agency procedures.

4.1104 Disaster Response Registry.

Contracting officers shall consult the Disaster Response Registry via https://www.sam.gov, Search Records, Advanced Search, Disaster Response Registry Search when contracting for debris removal, distribution of supplies, recon-struction, and other disaster or emergency relief activities inside the United States and outlying areas. (See 26.205).

4.1105 Solicitation provision and contract clauses.

(a)(1) Insert the provision at 52.204-7, System for Award Management, in all solicitations except when the conditions in 4.1102(a) apply.

(2) Insert the provision at 52.204-7, System for Award Management, with its Alternate I when the solicitation is anticipated to be awarded in accordance with 4.1102(a)(5).

(b) Insert the clause at 52.204-13, System for Award Man-agement Maintenance, in solicitations that contain the provi-sion at 52.204-7, and resulting contracts.

SUBPART 4.12—REPRESENTATIONS AND CERTIFICATIONS 4.1202

4.12-1 Subpart 4.12—Representations and Certifications

4.1200 Scope.

This subpart prescribes policies and procedures for requir-ing submission and maintenance of representations and certi-fications via the System for Award Management (SAM) to—

(a) Eliminate the administrative burden for contractors of submitting the same information to various contracting offices;

(b) Establish a common source for this information to pro-curement offices across the Government; and

(c) Incorporate by reference the contractor’s representa-tions and certifications in the awarded contract.

4.1201 Policy.

(a) Offerors and quoters are required to complete electronic annual representations and certifications in SAM accessed via https://www.sam.gov as a part of required registration (see

FAR 4.1102).

(b)(1) All registrants are required to review and update the representations and certifications submitted to SAM as nec-essary, but at least annually, to ensure they are kept current, accurate, and complete. The representations and certifications are effective until one year from date of submission or update to SAM.

(2) A contractors that represented itself as a small busi-ness prior to award of a contract must update the representa-tions and certifications in SAM in accordance with 52.219-28.

A contractor that represented itself as other than small busi-ness before contract award and qualifies as a small business may update its representations and certifications in SAM in accordance with 52.219-28.

(c) Data in SAM is archived and is electronically retriev-able. Therefore, when a prospective contractor has completed representations and certifications electronically in SAM, the contracting officer must reference the date of SAM verifica-tion in the contract file to satisfy contract file documentation requirements of 4.803(a)(11). However, if an offeror identi-fies changes to SAM data pursuant to the FAR provisions at 52.204-8(d) or 52.212-3(b), the contracting officer must include a copy of the changes in the contract file.

(d) The contracting officer shall incorporate the represen-tations and certifications by reference in the contract (see 52.204-19, or for acquisitions of commercial items see 52.212-4(v)).

4.1202 Solicitation provision and contract clause.

(a) Insert the provision at 52.204-8, Annual Representa-tions and Certifications, in solicitations, except for commer-cial item solicitations issued under FAR part 12. The contracting officer shall check the applicable provisions at 52.204-8(c)(2). When the provision at 52.204-7, System for

Award Management, is included in the solicitation, do not sep-arately include the following representations and certifica-tions:

(1) 52.203-2, Certificate of Independent Price Determination.

(2) 52.203-11, Certification and Disclosure Regarding Payments to Influence Certain Federal Transactions.

(3) 52.203-18, Prohibition on Contracting with Entities that Require Certain Internal Confidentiality Agreements or Statements-Representation.

(4) 52.204-3, Taxpayer Identification.

(5) 52.204-5, Women-Owned Business (Other Than

Small Business).

(6) 52.204-17, Ownership or Control of Offeror.

(7) 52.204-20, Predecessor of Offeror.

(8) 52.209-2, Prohibition on Contracting with Inverted

Domestic Corporations—Representation.

(9) 52.209-5, Certification Regarding Responsibility

Matters.

(10) 52.209-11, Representation by Corporations

Regarding Delinquent Tax Liability or a Felony Conviction under any Federal Law.

(11) 52.214-14, Place of Performance—Sealed Bid-ding.

(12) 52.215-6, Place of Performance.

(13) 52.219-1, Small Business Program Representa-tions (Basic & Alternate I).

(14) 52.219-2, Equal Low Bids.

(15) [Reserved]

(16) 52.222-18, Certification Regarding Knowledge of

Child Labor for Listed End Products.

(17) 52.222-22, Previous Contracts and Compliance

Reports.

(18) 52.222-25, Affirmative Action Compliance.

(19) 52.222-38, Compliance with Veterans’ Employ-ment Reporting Requirements.

(20) 52.222-48, Exemption from Application of the

Service Contract Labor Standards to Contracts for Mainte-nance, Calibration, or Repair of Certain Equipment–Certifi-cation.

(21) 52.222-52, Exemption from Application of the Service Contract Labor Standards to Contracts for Certain Services—Certification.

(22) 52.223-1, Biobased Product Certification.

(23) 52.223-4, Recovered Material Certification.

(24) 52.223-9, Estimate of Percentage of Recovered

Material Content for EPA-Designated Items (Alternate I only).

(25) 52.223-22, Public Disclosure of Greenhouse Gas Emissions and Reduction Goals-Representation.

(26) 52.225-2, Buy American Certificate.

4.1202 FEDERAL ACQUISITION REGULATION

FAC 2005-101)

4.12-2 (

(27) 52.225-4, Buy American—Free Trade Agree-ments—Israeli Trade Act Certificate (Basic, Alternates I, II, and III).

(28) 52.225-6, Trade Agreements Certificate.

(29) 52.225-20, Prohibition on Conducting Restricted

Business Operations in Sudan—Certification.

(30) 52.225-25, Prohibition on Contracting with Enti-ties Engaging in Certain Activities or Transactions Relating to Iran-Representation and Certifications.

(31) 52.226-2, Historically Black College or University and Minority Institution Representation.

(32) 52.227-6, Royalty Information (Basic & Alternate I).

(33) 52.227-15, Representation of Limited Rights Data and Restricted Computer Software.

(b) The contracting officer shall insert the clause at 52.204-19, Incorporation by Reference of Representations and Certifications, in solicitations and contracts.

SUBPART 7.1—ACQUISITION PLANS 7.103

7.1-1

7.000 Scope of part.

This part prescribes policies and procedures for—

(a) Developing acquisition plans;

(b) Determining whether to use commercial or Govern-ment resources for acquisition of supplies or services;

(c) Deciding whether it is more economical to lease equip-ment rather than purchase it; and

(d) Determining whether functions are inherently governmental.

Subpart 7.1—Acquisition Plans

7.101 Definitions.

As used in this subpart— “Acquisition streamlining” means any effort that results in more efficient and effective use of resources to design and develop, or produce quality systems. This includes ensuring that only necessary and cost-effective requirements are included, at the most appropriate time in the acquisition cycle, in solicitations and resulting contracts for the design, devel-opment, and production of new systems, or for modifications to existing systems that involve redesign of systems or subsystems.

“Life-cycle cost” means the total cost to the Government of acquiring, operating, supporting, and (if applicable) dispos-ing of the items being acquired.

“Order” means an order placed under a—

(1) Federal Supply Schedule contract; or

(2) Task-order contract or delivery-order contract awarded by another agency, (i.e., Governmentwide acquisi-tion contract or multi-agency contract).

“Planner” means the designated person or office responsi-ble for developing and maintaining a written plan, or for the planning function in those acquisitions not requiring a written plan.

7.102 Policy.

(a) Agencies shall perform acquisition planning and con-duct market research (see part 10) for all acquisitions in order to promote and provide for—

(1) Acquisition of commercial items or, to the extent that commercial items suitable to meet the agency’s needs are not available, nondevelopmental items, to the maximum extent practicable (10 U.S.C. 2377 and 41 U.S.C. 3307); and

(2) Full and open competition (see part 6) or, when full and open competition is not required in accordance with part 6, to obtain competition to the maximum extent practica-ble, with due regard to the nature of the supplies or services to be acquired (10 U.S.C. 2305(a)(1)(A) and 41 U.S.C.

3306a)(1)).

(3) Selection of appropriate contract type in accordance with part 16; and

(4) Appropriate consideration of the use of pre-existing contracts, including interagency and intra-agency contracts, to fulfill the requirement, before awarding new contracts. (See

8.002 through 8.004 and subpart 17.5).

(b) This planning shall integrate the efforts of all personnel responsible for significant aspects of the acquisition. The pur-pose of this planning is to ensure that the Government meets its needs in the most effective, economical, and timely man-ner. Agencies that have a detailed acquisition planning system in place that generally meets the requirements of 7.104 and

7.105 need not revise their system to specifically meet all of these requirements.

7.103 Agency-head responsibilities.

The agency head or a designee shall prescribe procedures for—

(a) Promoting and providing for full and open competition

(see part 6) or, when full and open competition is not required in accordance with part 6, for obtaining competition to the maximum extent practicable, with due regard to the nature of the supplies and services to be acquired (10 U.S.C. 2305(a)(1)(A) and 41 U.S.C. 3306(a)(1)).

(b) Encouraging offerors to supply commercial items, or to the extent that commercial items suitable to meet the agency needs are not available, nondevelopmental items in response to agency solicitations (10 U.S.C. 2377 and 41 U.S.C. 3307);

and

(c) Ensuring that acquisition planners address the require-ment to specify needs, develop specifications, and to solicit offers in such a manner to promote and provide for full and open competition with due regard to the nature of the supplies and services to be acquired (10 U.S.C. 2305(a)(1)(A) and 41 U.S.C. 3306(a)(1)). (See part 6 and 10.002.)

(d) Ensuring that acquisition planners document the file to support the selection of the contract type in accordance with subpart 16.1.

(e) Establishing criteria and thresholds at which increas-ingly greater detail and formality in the planning process is required as the acquisition becomes more complex and costly, including for cost-reimbursement and other high-risk con-tracts (e.g., other than firm-fixed-price contracts) requiring a written acquisition plan.