Contracting officers are no longer required to withhold 5% of the payments due under a time and materials contract, unless it is necessary to protect the government’s interest.

Under a final rule adopted by the Federal Acquisition Regulation councils, the contracting officer will have discretion to decide whether the money should be withheld.

“Normally there should not be a need to withhold payments when dealing with contractual release requirements in a timely manner,” the councils said.

The rule, effective July 27, is FAR case 2004-003.

Other FAR changes:

*A final rule sets new standards for determining rent when a contractor uses government property. The rule, effective July 27, is FAR case 2002-015.

*An interim rule requires prime contractors to verify that a HUBZone subcontractor is certified in the program. The interim rule, effective July 27, is FAR case 2005-009. Comments are due by Sept. 26.

*An interim rule changes to the FAR definition of “information technology’’ as required by the 2004 Consolidated Appropriations Act. The rule is FAR case 2004-030. Comments are due by Sept. 26.

*A proposed rule would add policy regarding notification of potential safety issues under DOD contracts. The proposed rule contains a contract clause requiring contractors to promptly notify the government of any nonconformance or deficiency that could impact item safety. Comments on the proposal, DFARS Case 2004-D008, are due by Sept. 30.

The Senate has passed legislation that would authorize continued funding for eleven women’s business centers that are scheduled to close at the end of the fiscal year.

Senate Small Business Committee Chair Olympia Snowe (R-ME) and the committee’s ranking Democrat, John Kerry (MA), cosponsored the bill. It now goes to the House, where no vote has been scheduled.

Kerry said the eleven centers, known as sustainability centers, were the first to receive grants under the Women’s Business Center Sustainability pilot program enacted by Congress in 1999. Their funding is due to expire Sept. 30, but the bill would extend it for one year.

“This is only a temporary fix, but I will continue to fight to ensure this proven and effective program is made permanent, putting the Women’s Business Center program on sound footing for the future,” Kerry said in a statement. The Bush administration wants to end federal funding for centers that have been open more than five years.

The eleven centers are in: Oakland and Ukiah, CA.; Denver; Boston; Augusta, ME; Ann Arbor, MI; Fosston, MN; Las Cruces, NM; Medford, OR; Philadelphia; and Milwaukee.

President Bush announced he will nominate Terry Neese, co-founder and president of Women Impacting Public Policy, to be director of the U.S. Mint.

Neese founded Terry Neese Personnel Service in Oklahoma City in 1975. She was an unsuccessful candidate for lieutenant governor of Oklahoma in 1990.

She and Barbara Kasoff founded Women Impacting Public Policy four years ago as a national bipartisan organization advocating for women in business.

The Cost Accounting Standards Board plans to amend the Cost Accounting Standards to address issues concerning the recognition of the costs of Employee Stock Ownership Plans under government cost-based contracts and subcontracts. These proposed amendments provide criteria for measuring the costs of ESOPs and their assignment to cost accounting periods.

The notice is CASB Docket No. 00-03A in the July 22 Federal Register. Comments are due by Sept. 20.