FAR Changes The following amendments to the Federal Acquisition Regulation were published in the June 18 Federal Register. Incentives for Use of Performance-Based Contracting for Services (FAR Case 2004-004) This interim rule amends the FAR to implement provisions of the 2004 Defense Authorization Act. Section 1431 enacts governmentwide authority to treat performance-based contracts or task orders for services as commercial items if certain conditions are met, and requires agencies to report on performance-based contracts or task orders awarded using this authority. Section 1433 amends the definition of commercial items to add specific performance-based terminology and to conform to the language added by section 1431. Contracting officers will be able to use FAR Part 12, Acquisition of Commercial Items, and Subpart 37.6, Performance-Based Contracting, for non-commercial services and treat these services as commercial services when specific conditions are met. Agencies will be required to report on performance-based contracts or task orders awarded using this authority. Definitions Clause (FAR Case 2002-013) This final rule revises clarifies the applicability of FAR definitions to solicitation provisions and contract clauses. This final rule amends the FAR to clarify that the Javits-Wagner O’Day program becomes a mandatory source of supplies and services when the supplies or services have been added to the Procurement List maintained by the Committee for Purchase from People Who Are Blind or Severely Disabled. Determining Official for Employment Provision Compliance—Immigration and Nationality Act (INA) (FAR Case 2004-009) This final rule revises the responsibility for determining when a contractor is not in compliance with the Immigration and Nationality Act to include both the Attorney General of the United States and the Secretary of Homeland Security. Federal Supply Schedules Services and Blanket Purchase Agreements (FAR Case 1999-603) See separate story. Designated Countries—New European Communities Member States (FAR Case 2004-008) This final rule implements a determination by the United States Trade Representative under the Trade Agreements Act that suppliers from the 10 new member states of the European Communities (EC) (the European Union) are eligible to participate in U.S. government procurement under the terms and conditions of the World Trade Organization Government Procurement Agreement (WTO GPA). Buy American Act—Nonavailable Articles (FAR Case 2003-007) This final rule adds certain food and textile items to the list of articles not available from domestic sources in sufficient and reasonably available commercial quantities of a satisfactory quality. This case is based on extensive market research by the Defense Logistics Agency. The Buy American Act does not apply to acquisition of these items as end products. Application of Cost Principles and Procedures and Accounting for Unallowable Costs (FAR Case 2002-006) This final rule revises FAR 31.204, Application of principles and procedures, to improve clarity and structure. The case was initiated as a result of comments and recommendations received from industry and Government representatives during a series of public meetings. This rule is of particular interest to contractors and contracting officers who use cost analysis to price contracts and modifications, and who determine or negotiate reasonable costs in accordance with a clause of a contract, e.g., price revision of fixed-price incentive contracts, terminated contracts, or indirect cost rates. Gains and Losses, Maintenance and Repair Costs, and Material Costs (FAR Case 2002-008) This final rule deletes the cost principle at FAR 31.205-24, Maintenance and repair costs, because either Cost Accounting Standards or Generally Accepted Accounting Practices adequately address these costs. The rule also revises the cost principles at FAR 31.205-7, Contingencies; FAR 31.205-26, Material costs; and FAR 31.205-44, Training and education costs, by improving clarity and structure, and removing unnecessary and duplicative language. This rule is of particular interest to contractors and contracting officers who use cost analysis to price contracts and modifications, and who determine or negotiate reasonable costs in accordance with a clause of a contract, e.g., price revision of fixed-price incentive contracts, terminated contracts, or indirect cost rates. The changes were published in Federal Acquisition Circular 2001-24 and are available at www.arnet.gov/far/facframe.html.