Eight new rules amending the FAR were published October 1 as Federal Acquisition Circular 2001-16.  Significant amendments include:

Mandatory CCR.  The FAR has been amended to require contractors to register in the Central Contractor Registration (CCR) database prior to award of any contract, basic agreement, basic ordering agreement or blanket purchase order.  The final rule also requires COs to modify existing contracts whose performance extends beyond December 31, 2003 to require contractors to register in the CCR database by that date.

FedBizOpps Named as GPE for Procurement Opportunities.  The FAR has been amended in a final rule designating Federal Business Opportunities (www.FedBizOpps.gov) as the single Government-wide point of entry (GPE) for electronic public access to procurement actions exceeding $25,000.  References to the old preferred Federal Acquisition Computer Network (FACNET), which was intended as the GPE before the web was widely used, has been eliminated.

Notification of Overpayment.  Effective October 31. the FAR requires contractors to notify the CO if the government overpays the contractor when making an invoice payment or a contract financing payment under both commercial item and non-commercial item contracts.  The rule also requires the CO to “promptly” provide instructions to the contractor regarding “timely disposition of the overpayment.”

Increased Thresholds for Simplified Acquisitions for Homeland Security Purchases.  The simplified acquisition threshold for purchases under the Homeland Security Act (e.g. supplies and services used to facilitate defense against terrorism or nuclear, biological, chemical or radiological attack) has been increased from the normal threshold of $100,000 to $200,000 ($300,000 for contracts performed outside of the U.S.).  In addition, the micro-purchase threshold has been increased from $2,500 to $7,500.  The change also allows agencies to treat acquisitions covered by the new Act as commercial items.

Economic Planning, Employee Morale and Travel Cost Principles.   The final rules amend three cost principles – FAR 31.205-12, economic planning costs; FAR 31.205-13, employee morale, health, welfare, food service and dormitory costs and; FAR 31.205-46, travel costs – to restructure the paragraphs and remove unnecessary duplicative language.  There have been no changes to the allowability of costs (Fed. Reg. 56,668).

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