Fiscal Year 2019 FAR Reissue

GSA (General Services Administration) has reissued the Federal Acquisition Regulations (FAR) as the FY (fiscal year) 2019 version. The previous reissue was in fiscal year 2005 and since then, has been amended 101 times - FAC (Federal Acquisition Circular) 2005-01 through 2005-101.

Periodically the FAR is reissued because of administrative necessity. Although reissues do not alter the language of the FAR, they do contain administrative updates to improve the user experience (its hard to type that with a straight face) and increase accessibility.

A few notes about the reissue.

• Future Federal Acquisition Circulars (FAC) will be renumbered so that the next issued FAC will be FAC 2019-01. This reissue will replace the prior numbering system which used FACs 2--5-01 through FAC 2005-101. Because of the reniumbering, the Foreword section of the FAR will be updated to reflect the current FAC number.
• The FAR looseleaf package will no longer be offered. Instead, a list of sections affected by each FAC will be included on the FAR website.
• The matrix will continue to be available in the PdF version of the FAR. However, the FAR website is promising to release a new "smart matrix" which will include a filterable clause matris, file saving options, improved search capabilities, as well as hyperlinked clauses, provisions and prescriptions to the current version of FAR.
• The FAR will be available in a number of formats including HTML, XML, Word, and PDF.
• FAR proposed rule publications that are open for comments are available at https://acquisition.gov/requesting_comments.
• The Federal Alert Notices (FAN) are available at https://acquisition.gov/fan_list. FANs were established by the Office of Federal Procurement POlicy (OFPP) in 2012 to help improve awareness of the regulatory changes.

Don't forget that there is a mobile version of FAR as well making it accessible on all devices (including smart phones). Instructions for downloading FAR to your device of choice can be found here.

Only One New Procurement Rule Published in 2017

How many new rules were published in the FAR in 2017?

One. It rescinded a previous rule - see Fair Pay and Safe Workplaces.

The President ordered agencies to rescind two old rules for every new one. Guess they couldn't find any old rules to eliminate.

FAR is Now Available for Kindle - Free

The FAR (Federal Acquisition Regulations) is now available for free in the Amazon Kindle Bookstore. With this version, you can highlight text, bookmark sections, and send quotes by email - features you're already familiar with if you use Kindle.

Now we can't say that this book will be something you want to read at bedtime (typical time to read: 92 hours and 49 minutes, 3,728 pages) and most people don't carry around a dedicated Kindle reader. But it might be handy to have as a reference tool - especially if you have Kindle on your smartphone. The version available for download is current through FAC (Federal Acquisition Circular) 2005-95 (January 19, 2017).

One thing that makes the Kindle version efficient is its integrated hyperlinks. For example, if you're reviewing the compensation cost principle to see if excise taxes on pension plan asset reversions or withdrawals are allowable, the cost principle refers you to another FAR section which, at a touch, will take you there.

The Kindle FAR can be accessed here.

If you need more detailed instructions including how to download the Kindle reader onto your smartphone, click here.

Note, FAR has been available in the Apple iBook format for some time. If interested in that format, click here to download it for free from the Apple Store.

New Electronic Format for FAR Available for Free Download

If you have an iPhone or or an iPad or if you have iTunes on your computer, you can now download a free copy of the FAR (Federal Acquisition Regulations) to read (oh boy!) or reference. GSA (General Services Administration) released an iBook version of FAR last week. If you have an Android device or use Kindle, you will have to wait a little while longer. Those versions are coming, GSA promised.

The chief advantage of an iBook is its availability even when you are not wired to the internet or do not have wireless service. The Government's Contingency Contracting Corps who travel to disaster areas around the world to lead emergency response and rescue missions can now have FAR at their fingertips (assuming that they at least have a power source for charging their devices). Besides these "first responders", some agencies have employees in remote areas that do not have access to the internet. The Agriculture Department for example has many such employees.

The FAR iBook has the same functionality that is built into every iBook. Readers can perform searches, write notes, and highlight or save the sections they use most often.

Regulations change quite often so how will the FAR maintain it currency, once installed? iBook owners will receive a notification each time there's an update and new editions will automatically download the next time the particular device connects to the Internet.

The FAR iBook is free and can be downloaded here.

By the way, FAR has, for many years, been available as a .PDF file. It's huge and difficult to search or navigate but its also free and doesn't require "iBooks" to use. Download the .PDF file here.

New and Improved FAR Regulations

The FAR Councils unloaded a gaggle of interim and final regulations today.

We have discussed most of these changes on these pages including the prohibition on contracting with income tax deadbeats, prohibitions on discriminating against sexual orientation or gender identity, minimum wage for employees of federal contractors, and whistleblower protections for contractor employees.

Specifically, the new rules cover the following:

Prohibition on contracting with corporations with delinquent taxes or a felony conviction. This interim rule prohibits the Federal Government from entering into contracts with corporations having a delinquent federal tax liability or a felony conviction under any federal law, unless an agency has considered suspension or debarment of the corporation and has made a determination that this further action is not necessary to protect the Government's interests.

Prohibition on discrimination based on sexual orientation and gender identity. This finalizes an interim rule from April of this year.

Contractor reporting of veterans' employment. This is an interim rule that requires contractors (and subcontractors) to annually report the number of employees who belong to the categories of veterans protected under VEVRAA (Vietnam Era Veterans' Readjustment Assistance Act).

Enhancing contractor whistleblower protections. This is a final rule replacing an interim rule from 2013. Unless Congress intervenes, the rule expires in 2017.

Retention periods for contract files. This is a final rule that generally reduces the time period for retaining contract files. Contractors seeking FOIA information or records under discovery may have to act quicker.

Establishing minimum wage for contractors. This is a final rule replaceing an interim rule from 2014. The minimum wage for contracts awarded after January 1, 2015 is $10.10 per hour. The rule provides for adjustments based on changes in specified indices.

Who Writes the FAR?

Often, when we report on a new FAR proposal or final regulation, we use the term "FAR Councils" when describing the source of the change. For example, we might state, "Last week, the FAR Councils published a proposed revision to ....". Well, the FAR councils are made up of real individuals working at various Federal agencies. There are two councils.

Revisions to the Federal Acquisition Regulations (FAR) are prepared and issued through the coordinated action of two councils; the Defense Acquisition Regulations Council (DAR Council) and the Civilian Agency Acquisition Council (CAA Council).

Members of these councils represent their agencies on a full time basis. They are preemptively selected for their superior qualifications in terms of acquisition experience and demonstrated professional expertise.

The chairperson of the CAA Council (Civilian Council) is a representative of the General Services Administration (GSA). Other members include representatives from Agriculture, Commerce, Energy, Health and Human Services, Homeland Security, Interior, Labor, State, Transportation, Treasury, EPA, Social Security, SBA and Veterans Affairs. Currently there are 19 members including the Chair.

The Director of the DAR Council is appointed by the Secretary of Defense. Members include representatives of the military departments, the Defense Logistics Agency (DLA), the Defense Contract Management Agency (DCMA) and NASA. Currently there are 14 members on the DAR Council including the Director.

The responsibility for processing revisions to the FAR is apportioned by the two councils so that each council has cognizance over specified parts or sub-parts. Each council shall be responsible for agreeing on all revisions with the other council. If agreement cannot be reached, the issues are elevated up the chain until agreement is reached.

The councils are supported by the FAR Secretariat. The GSA is responsible for establishing and operating the FAR Secretariat, to print, publish, and distribute the FAR through the Code of Federal Regulations system. Additionally, the FAR Secretariat provides the two councils with centralized services for

1. keeping a synopsis of current FAR cases and their status
2. maintaining official files
3. assisting parties interested in reviewing the files on completed cases, and
4. performing miscellaneous administrative tasks pertaining to the maintenance of the FAR.

One can imagine that there is a lot of coordination involved in bringing a regulation to publication. Between the two councils, there are 31 members representing a variety of organizations and interests that must eventually agree on concept and wording. Some changes take a long time to resolve. The oldest open FAR case is from 2010 which is attempting to implement a 2009 Executive Order (EO). Some of the changes are directed by Statute as when Congress sets caps on compensation levels. Some changes originate at the grass-roots level where acquisition professionals see a need and propose a change.

2014 Version of the FAR Cost Principles Guide

The FAR (Federal Acquisition Regulation) Cost Principles Guide has now been updated through FAC (Federal Acquisition Circular) 2005-76 (September 2014) and is available for download here. The previous update was January 2013 (through FAC 2005-65).

The FAR Cost Principles Guide traces all the changes to FAR cost principles since the inception of the FAR system in 1984. It is useful for determining the precise cost principle in effect at the time a particular contract was awarded. While some cost principles have not changed in the ensuing years (e.g. bad debt expense, alcoholic beverages) most have undergone some form of revision and some have even been eliminated (ADP equipment). The Compensation cost principle (FAR 31.205-6), for example, has been revised 39 times. Six of those changes were effective in 2013 and 2014. By contrast, FAR 31.205-51, Cost of Alcoholic Beverages, has never changed since its first introduction in 1986.

The Government's contract auditors are busy clearing up its backlog of old incurred cost submissions. These audits, going back to 2006 in some cases (and perhaps earlier), must evaluate costs based on the cost principles in effect during that year or, in some cases, when the contract was awarded. Any challenges to claimed costs must cite not only the correct cost principle, but the correct version of that cost principle. This guide will help ensure accuracy on everyone's part.

Thanks to a reader who alerted us that the "Guide" had been recently updated.

New Version of the FAR Cost Principles Guide Has Been Published

Note: For an update of this posting, click here.

The FAR (Federal Acquisition Regulation) Cost Principles Guide has now been updated through FAC (Federal Acquisition Circular) 2005-65 (January 2013) and is available for download here. The previous update was June 2011 through FAC 2005-52.

The FAR Cost Principles Guide traces all the changes to FAR cost principles since the inception of the FAR system in 1984. It is useful for determining the precise cost principle in effect at the time a particular contract was awarded. While some cost principles have not changed in the ensuing years (e.g. bad debt expense, alcoholic beverages) most have undergone some form of revision and some have even been eliminated (ADP equipment). The Compensation cost principle (FAR 31.205-6), for example, has been revised 33 times.

The Government is now clearing out its backlog of old incurred cost submissions. These audits, going back to 2004 (and perhaps earlier), must evaluate costs based on the cost principles in effect during that year or, in some cases, when the contract was awarded. Any challenges to claimed costs must cite the correct cost principle version.

Acquisition Related Thresholds Due to Increase

On February 4, 2010, the FAR Councils published a proposal to increase many acquisition related dollar thresholds. The National Defense Authorization Act from 2005 requires an adjustment every five years of acquisition-related thresholds for inflation using the Comsumer Price Index for all urban consumers. The last imflation adjustment was in 2005.

An acquisition-related threshold is a threshold that is specified in law, executive order, or regulation as a factor in defining the scope of the applicability of a policy, procedure, requirement, or restriction provided in that law, executive order or regulation. Examples of thresholds that are not viewed as acquisition-related are those relating to claims, penalties, withholding, payments, required levels of insurance, small business size standards, liquidated damages, etc.

This proposed rule affects thresholds in dozens of FAR sections - to numerous to include here. However, changes to the heavily-used thresholds include:

• The micro-purchase base threshold of $3 thousand will not change.
• The simplified acquisition thresholde will be raised from $100 thousand to $150 thousand.
• The FedBizOpps preaward and post-award notices remain at $25 thousand because of trade agreements.
• Commercial items test proram ceiling will be raised from $5.5 million to $6.5 million.
• The cost and pricing dta threshold will be raised from $650 thousand to $700 thousand.

To view all current FAR thresholds, click here. This reference should update once this is published as a final rule.