[Federal Register Volume 59, Number 26 (Tuesday, February 8, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-2626]


[[Page Unknown]]

[Federal Register: February 8, 1994]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 15, 31, 42, 46, and 52

[FAR Cases 89-14, 89-21, 89-31, 89-61, 91-17, and 91-67]

 

Federal Acquisition Regulation, Withdrawal of Proposals

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

ACTION: Proposed rules; withdrawal.

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SUMMARY: The Department of Defense, General Services Administration, 
and National Aeronautics and Space Administration have decided to 
withdraw six proposed rules. These rules appeared between 1989 and 1992 
and have subsequently been determined to be unnecessary, incorporated 
into other rules, or need further review.

FOR FURTHER INFORMATION CONTACT:Ms. Beverly Fayson, FAR Secretariat, 
room 4037, GS Building, Washington, DC 20405 (202) 501-4755.

SUPPLEMENTARY INFORMATION:

FAR Case 89-14, Indirect Cost Rate Agreements

    The proposed rule, published March 7, 1989, in the Federal Register 
(54 FR 10133), is hereby withdrawn. The rule proposed changes to 
Federal Acquisition Regulation (FAR) 15.804-4(i), 42.705-1, 42.705-2, 
and the clause 52.216-13 to clarify the requirement for certification 
under the Truth-in-Negotiations Act for final indirect cost rate 
agreements. The rule subsequently was determined to be unnecessary.

FAR Case 89-21, Inspection for Commercial, Off-the-Shelf Supplies

    The proposed rule revising FAR 46.202-1, 46.301, and 46.302 
published April 20, 1989, in the Federal Register (54 FR 16094), is 
hereby withdrawn.
    Withdrawal is considered necessary because the subject matter 
associated with this case has been incorporated with a case which 
proposes changes to part 46, including inspection of commercial 
supplies.

FAR Case 89-11, Title to Property Under the Progress Payments Clause

    The proposed rule, published May 1, 1989, in the Federal Register 
(54 FR 18631), is hereby withdrawn, as agreed upon by the Civilian 
Agency Acquisition Council and the Defense Acquisition Regulations 
Council. The proposed FAR clarifications published for public comment 
have been determined to be unnecessary because the current FAR 
adequately covers the issues addressed by the proposed rule.
    The rule proposed a change to the progress payments clause at FAR 
52.232-16. The councils published the proposed rule to assist in 
assessing whether the FAR should be revised to emphasize that it is and 
always has been the intent of the FAR that the interest taken by the 
Government in property covered by the clause is title in the form of 
ownership, and not a mere lien. The Councils have determined that there 
is no need to clarify the intent of the FAR. Contracts containing the 
Progress Payments clause clearly reflect the intention of the parties 
to grant title to the property to the Government and not grant merely a 
lien.

FAR Case 89-61, Noncommercial Cost Principles

    The proposed rule, published July 28, 1989, in the Federal Register 
(54 FR 31480), is hereby withdrawn. The rule proposed revising FAR 
subparts 31.3, 31.6, and 31.7 to set forth a new rule on the 
allowability of costs incurred under Federal contracts with educational 
institutions, state and local governments, federally recognized Indian 
tribal governments, and nonprofit organizations. The statutory 
prohibitions at 10 U.S.C. 2324(e) on allowable costs under defense 
contracts have been published in the Defense Federal Acquisition 
Regulation Supplement and FAR coverage is not necessary. Civilian 
agency contracts that are awarded to these noncommercial entities rely 
on the cost principles promulgated by the Office of Management and 
Budget.

FAR Case 91-17, Contractor Acquisition of Automatic Data Processing 
Equipment

    The proposed rule, published May 3, 1991, in the Federal Register 
(56 FR 20507), is hereby withdrawn. This rule proposed raising two 
dollar thresholds in FAR 31.205-2 from $500,000 to $1,000,000. The 
first threshold (31.205-2(b)(2)(iii)(B)) pertains to the initial 
decision to lease automatic data processing equipment (ADPE), which 
requires contracting officer's approval. The second threshold (31.205-
2(d)(3)) pertains to a contractor requirement to furnish data 
supporting the annual justification for retaining or changing existing 
ADPE capability and the need to continue leasing. Revising the 
thresholds in FAR 31.205-2 will be considered further as a part of a 
comprehensive review of the cost principle.

FAR Case 91-67, Employee Stock Ownership Plans

    The proposals rule, published February 4, 1992, in the Federal 
Register (57 FR 4181), is hereby withdrawn. The Councils published the 
proposed rule to clarify that the cost principle at FAR 31.205-6(j)(8), 
Employee stock ownership plans, applies to all employee stock ownership 
plans (ESOPs) regardless of whether or not an ESOP meets the definition 
of ``pension plan'' in FAR 31.205-6(j)(1) (i.e., provides a benefit 
payable for life). After consideration of public comments and further 
examination of the issues involved, the Councils determined that the 
proposed rule fails to adequately address major issues associated with 
the allowability of costs for ESOPs. The Councils plan to address these 
issues in a future proposed rule.

List of Subjects in 48 CFR Parts 15, 31, 42, 46, and 52

    Government procurement.

    Dated: November 9, 1993.
Albert A. Vicchiolla,
Director.
[FR Doc. 94-2626 Filed 2-7-94; 8:45 am]
BILLING CODE 6820-34-M