[Federal Register Volume 59, Number 59 (Monday, March 28, 1994)]
[Unknown Section]
[Page ]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-6891]


[Federal Register: March 28, 1994]


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DEPARTMENT OF DEFENSE
48 CFR Part 52

[FAR Case 91-71]


Federal Acquisition Regulation; Administration of Cost Accounting 
Standards

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

ACTION: Proposed rule.

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SUMMARY: The Civilian Agency Acquisition Council and the Defense 
Acquisition Regulations Council are proposing an amendment to the 
Federal Acquisition Regulation (FAR) to require contractors, who issue 
subcontracts covered by Cost Accounting Standards, to send subcontract 
award information not only to the contractor's contract administration 
office (CAO) but also to the CAO cognizant of the subcontractor's 
facility. This regulatory action was not subject to Office of 
Management and Budget review pursuant to Executive Order No. 12866 
dated September 30, 1993.

DATES: Comments should be submitted on or before May 27, 1994, to be 
considered in the formulation of a final rule.

ADDRESSES: Interested parties should submit written comments to: 
General Services Administration, FAR Secretariat (VRS), 18th & F 
Streets NW., room 4035, Attn: Ms. Beverly Fayson, Washington, DC 20405.
    Please cite FAR case 91-71 in all correspondence related to this 
case.

FOR FURTHER INFORMATION CONTACT: Mr. Jeremy F. Olson at (202) 501-3221 
in reference to this FAR case. For general information, contact the FAR 
Secretariat, room 4037, GS Building, Washington, DC 20405 (202) 501-
4755. Please cite FAR case 91-71.

SUPPLEMENTARY INFORMATION:

A. Background

    The clause at 52.230-5, Administration of Cost Accounting 
Standards, currently requires contractors to send information to the 
prime contractor's CAO, who forwards it on to the CAO cognizant of the 
subcontractor. Since the prime contractor's CAO does not change, 
modify, or add to the information, but just sends it on to the CAO 
cognizant of the subcontractor, it is more efficient for contractors to 
send it direct. The contractor's CAO should also have the information 
and, therefore, the requirement to send the information to the 
contractor's cognizant CAO has not been deleted.

B. Regulatory Flexibility Act

    The proposed rule is not expected to have a significant economic 
impact on a substantial number of small entities within the meaning of 
the Regulatory Flexibility Act, 5 U.S.C. 601, et seq., because small 
businesses are exempt from Cost Accounting Standards requirements. An 
Initial Regulatory Flexibility Analysis has, therefore, not been 
performed. Comments are invited from small businesses and other 
interested parties. Comments from small entities concerning the 
affected FAR subpart will also be considered in accordance with section 
610 of the Act. Such comments must be submitted separately and cite 5 
U.S.C. 601, et seq. (FAR case 91-71), in correspondence.

C. Paperwork Reduction Act

    The Paperwork Reduction Act (Pub. L. 96-511) is deemed to apply 
because the proposed rule contains information collection requirements. 
Accordingly, a request for approval of an amended information 
collection requirement (9000-0129) concerning Cost Accounting Standards 
has been submitted to the Office of Management and Budget under 44 
U.S.C. 3501, et seq. Public comments concerning this request are 
invited through a Federal Register notice appearing in this issue.

List of Subjects in 48 CFR Part 52

    Government procurement.

    Dated: March 18, 1994.
Albert A. Vicchiolla,
Director, Office of Federal Acquisition Policy.

    Therefore, it is proposed that 48 CFR part 52 be amended as set 
forth below:

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

    1. The authority citation for 48 CFR part 52 continues to read as 
follows:

    Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42 
U.S.C. 2473(c).

    2. Section 52.230-5 is amended by revising the introductory text of 
subparagraph (e)(2) to read as follows:


52.230-5  Administration of Cost Accounting Standards.

* * * * *
    (e) * * *
    (2) Include the substance of this clause in all negotiated 
subcontracts. In addition, within 30 days after award of the 
subcontract, submit the following information to the Contractor's 
cognizant contract administration office and to the contract 
administration office cognizant of the subcontractor's facility 
(whose name and address is found on the subcontractor's Cost 
Accounting Standards Notices and Certification, FAR 52.230-1).
* * * * *
[FR Doc. 94-6891 Filed 3-25-94; 8:45 am]
BILLING CODE 6820-34-M