[Federal Register Volume 85, Number 88 (Wednesday, May 6, 2020)]
[Rules and Regulations]
[Pages 27102-27103]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-07112]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Chapter 1

[Docket No. FAR-2020-0051, Sequence No. 2]


Federal Acquisition Regulation; Federal Acquisition Circular 
2020-06; Small Entity Compliance Guide

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

ACTION: Small Entity Compliance Guide.

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SUMMARY: This document is issued under the joint authority of DOD, GSA, 
and NASA. This Small Entity Compliance Guide has been prepared in 
accordance with section 212 of the Small Business Regulatory 
Enforcement Fairness Act of 1996. It consists of a summary of the rules 
appearing in Federal Acquisition Circular (FAC) 2020-06, which amends 
the Federal Acquisition Regulation (FAR). An asterisk (*) next to a 
rule indicates that a regulatory flexibility analysis has been 
prepared. Interested parties may obtain further information regarding 
these rules by referring to FAC 2020-06, which precedes this document. 
These documents are also available via the internet at http://www.regulations.gov.

DATES: May 6, 2020.

ADDRESSES: The FAC, including the SECG, is available via the internet 
at http://www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: For clarification of content, contact 
the analyst whose name appears in the table below. Please cite FAC 
2020-06 and the FAR Case number. For information pertaining to status 
or publication schedules, contact the Regulatory Secretariat Division 
at 202-501-4755.

                       Rule Listed in FAC 2020-06
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   Item            Subject             FAR Case            Analyst
------------------------------------------------------------------------
I........  Revocation of Executive        2020-001  Delgado.
            Order on
            Nondisplacement of
            Qualified Workers.
\*\II....  Applicability of               2018-007  Delgado.
            Inflation Adjustments
            of Acquisition-Related
            Thresholds.
\*\III...  Tax on Certain Foreign         2016-013  Delgado.
            Procurement.
IV.......  Technical Amendments...
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SUPPLEMENTARY INFORMATION: Summaries for each FAR rule follow. For the 
actual revisions and/or amendments made by these FAR rules, refer to 
the specific item numbers and subjects set forth in the documents 
following these item summaries. FAC 2020-06 amends the FAR as follows:

Item I--Revocation of Executive Order on Nondisplacement of Qualified 
Workers (FAR Case 2020-001)

    This final rule removes subpart 22.12, entitled ``Nondisplacement 
of Qualified Workers Under Service Contracts'', and a related contract 
clause, from the FAR. The final rule applies to service contracts which 
succeed a contract for performance by service employees of the same or 
similar work at the same location. It removes a requirement for service 
contractors and their subcontractors to offer employees of the 
predecessor contractor and its subcontractors a right of first refusal 
of employment for positions for which they are qualified. It implements 
Executive Order 13897 of October 31, 2019, Improving Federal Contractor 
Operations by Revoking Executive Order 13495. This final rule will not 
have a significant impact on service contractors and their 
subcontractors. However, as a result of eliminating the language in FAR 
subpart 22.12, there will be fewer requirements imposed on contractors 
to keep records demonstrating compliance on successor contractors.

Item II--Applicability of Inflation Adjustments of Acquisition-Related 
Thresholds (FAR Case 2018-007)

    This final rule makes inflation adjustments of statutory 
acquisition-related thresholds under 41 U.S.C. 1908 applicable to 
existing contracts and subcontracts in effect on the date of the 
adjustment. It implements section 821 of the National Defense 
Authorization Act for Fiscal Year 2018.
    This final rule will not have a significant economic impact on a 
substantial number of small entities.

Item III--Tax on Certain Foreign Procurement (FAR Case 2016-013)

    This final rule withholds a 2 percent tax on contract payments made 
by the United States (U.S.) Government to foreign persons pursuant to 
certain contracts. This rule applies to Federal

[[Page 27103]]

Government contracts for goods or services that are awarded to foreign 
persons. It implements the Department of the Treasury final regulations 
published in the Federal Register at 81 FR 55133 on August 18, 2016, 
under section 5000C of the Internal Revenue Code relating to the 2 
percent tax on payments made by the U.S. Government to foreign entities 
pursuant to certain contracts.
    This final rule will not have a significant economic impact on a 
substantial number of small entities.

Item IV--Technical Amendments

    Editorial changes are made at FAR 4.1102, 19.102, 25.301-1, 25.301-
4, 52.219-28, 52.223-15, and 52.225-19.

William F. Clark,
Director, Office of Government-wide Acquisition Policy, Office of 
Acquisition Policy, Office of Government-wide Policy.
[FR Doc. 2020-07112 Filed 5-5-20; 8:45 am]
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