[Federal Register Volume 59, Number 163 (Wednesday, August 24, 1994)] [Unknown Section] [Page 0] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 94-20726] [[Page Unknown]] [Federal Register: August 24, 1994] ======================================================================= ----------------------------------------------------------------------- DEPARTMENT OF DEFENSE GENERAL SERVICES ADMINISTRATION NATIONAL AERONAUTICS AND SPACE ADMINISTRATION 48 CFR Part 48 [FAR Cases 89-88] Federal Acquisition Regulation; Allowability of Value Engineering Costs; Withdrawal of Proposed Rule AGENCY: Department of Defense (DOD), General Service Administration (GSA), and National Aeronautics and Space Administration (NASA). ACTION: Proposed rule; withdrawal. ----------------------------------------------------------------------- SUMMARY: The Department of Defense, General Services Administration, and National Aeronautics and Space Administration have decided to withdraw a proposed rule, FAR case 89-88, Allowability of Value Engineering Costs. This rule was initially published in the Federal Register on January 4, 1990 (55 FR 416), and republished on December 14, 1992 (57 FR 59274). The case proposed a revision which specifies that under the incentive approach in value engineering, the contractor develops and submits value engineering change proposals (VECP's) and shares in the savings of any that are accepted. The contract provides for payment of implementation costs if a VECP is accepted. The development costs for accepted and unaccepted VECP's shall be accumulated by value engineering project and charged indirectly if otherwise allowable in accordance with Part 31. The republication resulted in the receipt of 30 responses. The substantive comments ranged from acceptance of the rule with modification to strong recommendations that the rule not be adopted. Primary concerns included--the source of funding for the payment of development costs of unaccepted VECP's, the documentation and justification required for such payments, and the administrative impact on the Government from a potential increase in VECP submissions. As a result of discussions with interested industry representatives and the nature of the comments received, a decision was made to withdraw the proposed rule. FOR FURTHER INFORMATION CONTACT: Ms. Beverly Fayson, FAR Secretariat, Room 4037, GS Building, Washington, DC 20405 (202) 501-4755. List of Subjects in 48 CFR Part 48 Government procurement. Dated: August 18, 1994. Harry S. Rosinski, Acting Director, Office of Federal Acquisition Policy. [FR Doc. 94-20726 Filed 8-23-94; 8:45 am] BILLING CODE 6820-34-M