Federal Acquisition Circular 01-07



Federal Acquisition Circular (FAC) 2001-07 amends the Federal Acquisition Regulation (FAR) as specified below:

Item I
Preference for Performance-Based Contracting (FAR Case 2000-307)

This final rule converts the interim rule published as Item I of FAC 97-25 at 66 FR 22082, May 2, 2001, to a final rule with an amendment at FAR 7.105. The rule implements Section 821 of the Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001 (Pub. L. 106-398). The rule affects contracting officers that buy services by explicitly establishing a preference for performance-based contracts or task orders. Guidance for performance-based contracting is available at the following websites:


http://oamweb.osec.doc.gov/pbsc/index.html, or


Replacement pages: 7.1-3 and 7.1-4.

Item II
Revisions to Balance of Payments Program (FAR Case 1999-616)

This final rule amends the FAR by removing Subpart 25.3, Balance of Payments Program, and making conforming changes to FAR Parts 13, 25, and 52. This revision will reduce administrative burdens on both the Government and the public. The FAR no longer requires contracting officers to use balance of payments procedures to evaluate foreign offers when acquiring supplies for use outside the United States that are valued at more than $100,000, but not more than $186,000, or when awarding a construction contract to be performed outside the United States and valued at less than $6,909,500. However, the Balance of Payments Program will be continued in the Department of Defense, and a Defense Federal Acquisition Regulation Supplement rule is being processed for this purpose.

Replacement pages: Structure v and vi; 13.3-1 and 13.3-2; TOC 25-1 and 25-2; 25.1-1 thru 25.1-4; 25.3-1 and 25.3-2; 25.4-1 and 25.4-2; 25.5-1 thru 25.5-4; 25.11-1 and 25.11-2; TOC 52-3 and 52-4; 52.2-33 thru 52.2-38; 52.2-129 thru 52.2-144; Matrix 21 thru Matrix 24.

(FAC 2001-07 SUMMARY of ITEMS)