Federal Register, Volume 59 Issue 179 (Friday, September 16, 1994)

[Federal Register Volume 59, Number 179 (Friday, September 16, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-23025]


[[Page Unknown]]

[Federal Register: September 16, 1994]


_______________________________________________________________________

Part VI

Department of Defense

General Services
Administration

National Aeronautics and
Space Administration
_______________________________________________________________________



48 CFR Part 31



Federal Acquisition Regulations;



Legislative Lobbying Costs, Travel Costs



and Records Retention; Proposed Rule



48 CFR 45



Federal Acquisition Regulation;



Government Property; Withdrawal of



Proposed Rule
DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Part 31

[FAR Case 93-6]

 

Federal Acquisition Regulation; Legislative Lobbying Costs

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 changes to amend the 
Federal Acqusition Regulation (FAR) cost principles concerning lobbying 
costs. This regulatory action was subject to Office of Management and 
Budget (OMB) review pursuant to Executive Order No. 12866 dated 
September 30, 1993.

DATES: Comments should be submitted on or before November 15, 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 4037, Washington, DC 20405. Please cite FAR case 93-6 
in all correspondence related to this case.

FOR FURTHER INFORMATION CONTACT:Mr. Jeremy Olson at (202) 501-3221 in 
reference to this FAR case. For general information, contract the FAR 
Secretariat, Room 4037, GS Building, Washington, DC 20405 (202) 501-
4755. Please cite FAR case 93-6.

SUPPLEMENTARY INFORMATION:

A. Background

    This FAR case was opened to address issues raised by the OMB SWAT 
Team concerning the requirement to maintain records which are in 
addition to normal records maintained to record lobbying costs under 
FAR 31.205-22(f). The proposed FAR rule would delete 31.205-22(f) 
because it conflicts with the recordkeeping requirements in 31.201-
6(c), 31.205-22(e), and Cost Accounting Standards (CAS) 405, Accounting 
for Unallowable Costs (48 CFR 9904.405-50(a)). In addition, the 
Councils believe that 31.205-22(f) is inconsistent with the clause at 
52.203-12, Limitation on Payments to Influence Certain Federal 
Transactions, which requires contractors to disclose lobbying 
activities. The reporting of such activities must necessarily be based 
upon certain contractor records which support the disclosures. The 
proposed rule also removes the prohibition against reimbursing 
executive lobbying costs at 31.205-50 and adds it to the list of 
specifically unallowable lobbying costs at 31.205-22(a).

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 most 
contracts awarded to small entities are awarded on a competitive, 
fixed-price basis and the cost principles do not apply. The cost 
principles apply only to contracts for which cost or pricing data has 
been submitted. 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 5 U.S.C. 610 of the Act. Such comments must be 
submitted separately and should cite 5 U.S.C. 601, et seq. (FAR case 
93-6), in correspondence.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the proposed 
changes to the FAR do not impose recordkeeping or information 
collection requirements, or collections of information from offerors, 
contractors, or members of the public which require the approval of the 
Office of Management and Budget under 44 U.S.C. 3501, et seq.

List of Subjects in 48 CFR Part 31

    Government procurement.

    Dated: September 13, 1994.
Albert A.Vicchiolla,
Director, Office of Federal Acquisition Policy.

    Therefore, it is proposed that 48 CFR part 31 be amended as set 
forth below:

PART 31--CONTRACT COST PRINCIPLES AND PROCEDURES

    1. The authority citation for 48 CFR part 31 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 31.205-22 is amended by revising the section heading; at 
the end of paragraph (a)(4) by removing the word ``or''; at the end of 
paragraph (a)(5) by removing the period and inserting ``; or''; by 
adding paragraph (a)(6); and by removing paragraph (f) and 
redesignating paragraph (g) as (f) to read as follows:


31.205-22  Lobbying and political activity costs.

    (a) * * *
    (6) Costs incurred in attempting to improperly influence (see FAR 
3.401), either directly or indirectly, an employee or officer of the 
executive branch of the Federal Government to give consideration or to 
act regarding a regulatory or contract matter.
* * * * *


31.205-50  [Removed and reserved]

    3. Section 31.205-50 is removed and reserved.

[FR Doc. 94-23025 Filed 9-15-94; 8:45 am]
BILLING CODE 6820-34-M