FAC 2005-26 Rule Requires Business Operations Certification

The Civilian Agency Acquisition and Defense Acquisition Regulations Councils have published Federal Acquisition Circular 2005-26, which contains one interim rule amending the Federal Acquisition Regulation. The rule (FAR Case 2008-004) implements Section 6 of the Sudan Accountability and Divestment Act of 2007 (PL 110-174), as well as Executive Orders 13310 and 13448. Section 6 of the SADA requires contractors to certify in each contract with an executive agency that they do not conduct certain business operations in Sudan. Comments on the interim rule are due August 11, 2008. For the text of FAC 2005-26, which carries a June 12, 2008, effective date, see ¶70,002.100.

The Councils have added the restrictions to FAR Subpart 25.7, Prohibited Sources. Because the current provisions at FAR 25.701 and FAR 25.702 are related, they have been combined into a single section, with the new restrictions added, as new section FAR 25.702. Also, FAR 25.702-1 provides the statutory definitions of the following terms from the SADA: Appropriate congressional committees; Business operations; Marginalized populations of Sudan; Person; and Restricted business. FAR 25.702-2 and FAR 25.702-3 state the certification requirements and the remedies specified in the Act. FAR 25.702-4 permits the President to waive the certification requirement. Consistent with the structure of FAR Part 25, the prescription for the solicitation provision is provided at FAR 25.1103(d). The new solicitation provision at FAR 52.225-20, Prohibition on Conducting Restricted Business Operations in Sudan --Certification, provides all the required definitions and the condition that, by submission of its offer, the offeror certifies that it does not conduct any restricted business operations in Sudan. If the offeror cannot affirmatively make this certification, then it is not allowed to submit an offer. Pursuant to E.O. 13310, Blocking Property of the Government of Burma and Prohibiting Certain Transactions (68 FR 44853) and E.O. 13448, Blocking Property and Prohibiting Certain Transactions Related to Burma (72 FR 60223), this rule also updates the list of countries from which most imports are prohibited, to reflect Burma as well as Sudan. Corresponding changes have been made to FAR 4.203, FAR 4.1201, FAR 4.1202, FAR 15.102, FAR 52.212-1, FAR 52.212-3, FAR 52.212-5, and FAR 52.225-13.

(The news featured above is a selection from the news covered in the Government Contracts Report Letter, which is published weekly and distributed to subscribers of the Government Contracts Reporter. )