[Federal Register Volume 59, Number 230 (Thursday, December 1, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-29420]


[[Page Unknown]]

[Federal Register: December 1, 1994]


_______________________________________________________________________

Part VI

Department of Defense

General Services Administration

National Aeronautics and Space Administration
_______________________________________________________________________



48 CFR Parts 49 and 52




Federal Acquisition Regulation; Termination Inventory Schedules; 
Proposed Rules
DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION-

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 49 and 52

[FAR Case 94-3]
RIN 9000-AG13

 
Federal Acquisition Regulation; Termination Inventory Schedules

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

ACTION: Proposed rule.

-----------------------------------------------------------------------

SUMMARY: The Civilian Agency Acquisition Council and the Defense 
Acquisition Regulations Council are proposing changes concerning 
termination of contracts to preclude excessive delays in processing 
terminations for the convenience of the Government. The proposed change 
will require contractors to prepare and submit termination inventory 
schedules within 120 days from the effective date of termination, 
unless otherwise extended by the Termination Contracting Officer (TCO). 
This will enable the TCO to initiate early inventory screening and 
final disposition, thereby substantially reducing the time required to 
achieve termination settlement.

DATES: Comments should be submitted on or before January 30, 1995, 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 94-3 in all correspondence related to this 
case.

FOR FURTHER INFORMATION CONTACT: Ms. Linda Klein at (202) 501-3775 in 
reference to this FAR case. For general information, contact the FAR 
Secretariat, Room 4037, GS Building, Washington, DC 20405, Telephone: 
(202) 501-4755. Please cite FAR case 94-3.

SUPPLEMENTARY INFORMATION:

A. Background

    When inventory schedules required for contracts terminated for the 
convenience of the Government are not submitted in a timely manner by 
the terminated contractors, unnecessary delays are experienced both in 
effecting redistribution and disposal of the termination inventory and 
in reaching final settlement of those contracts. DOD's Inspector 
General has recommended the imposition of a new contractor requirement 
to submit inventory schedules within 120 days, unless an extension is 
justified.

B. Regulatory Flexibility Act

    The proposed changes are 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 the 
change will require contractors to prepare and submit termination 
inventory schedules within 120 days from the effective date of 
termination, unless otherwise extended by the Termination Contracting 
Officer. Only the timing of the submission of the inventory schedule 
has changed; the requirement to submit a schedule is a long-standing 
one. Due to the length of time currently required to settle 
terminations, it is anticipated that the proposed expedited procedure 
will lessen any adverse financial impact generally experienced by small 
and medium sized firms.
    An Initial Regulatory Flexibility Analysis (IRFA) has been prepared 
and will be provided to the Chief Counsel for Advocacy for the Small 
Business Administration. A copy of the IRFA may be obtained from the 
FAR Secretariat. Comments are invited. Comments from small entities 
concerning the affected FAR subpart will be considered in accordance 
with 5 U.S.C. 610. Such comments must be submitted separately and 
should cite 5 U.S.C. 601, et seq. (FAR case 94-3), 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. Only the 
timing of the submission of the inventory schedule is changed; the 
requirement to submit a schedule is a long-standing one.

List of Subjects in 48 CFR Parts 49 and 52

    Government procurement.

    Dated: November 18, 1994.
Albert A. Vicciolla,
Director, Office of Federal Acquisition Policy.

    Therefore, it is proposed that 48 CFR Parts 49 and 52 be amended as 
set forth below:

PART 49--TERMINATION OF CONTRACTS

    1. The authority citation for 48 CFR Parts 49 and 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).


49.105  [Amended]

    2. Section 49.105(c)(13) is amended by adding ``(see 49.206-3 and 
49.303-2)'' to the end of the sentence.
    3. Section 49.206-3 is added to read as follows:


49.206-3  Submission of inventory schedules.

    Subject to the provisions of the termination clause and whenever 
termination inventory is involved, the contractor shall submit complete 
inventory schedules, to the TCO, reflecting inventory that is allocable 
to the terminated portion of the contract. The inventory schedules must 
be submitted within 120 days from the effective date of termination 
unless otherwise extended by the TCO based on a written justification 
to support the extension. The inventory schedules must be prepared on 
the forms prescribed in 49.602-2 and in accordance with 45.605-5.
    4. Sections 49.303-2, 49.303-3, and 49.303-4 are redesignated as 
49.303-3, 49.303-4, and 49.303-5, respectively, and a new section 
49.303-2 is added to read as follows:


49.303-2  Submission of inventory schedules.

    Subject to the provisions of the termination clause and whenever 
termination inventory is involved, the contractor shall submit complete 
inventory schedules, to the TCO, reflecting inventory that is allocable 
to the terminated portion of the contract. The inventory schedules must 
be submitted within 120 days from the effective date of termination 
unless otherwise extended by the TCO based on a written justification 
to support the extension. The inventory schedules must be prepared on 
the forms prescribed in 49.602-2 and in accordance with 45.606-5.

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

    5. Section 52.249-2 is amended in the clause by:
    (a) Revising the clause date;
    (b) Redesignating paragraphs (d) through (m) as (e) through (n), 
respectively; and
    (c) Adding a new paragraph (d) to read as follows:


52.249-2  Termination for Convenience of the Government (Fixed-Price).

* * * * *

TERMINATION FOR CONVENIENCE OF THE GOVERNMENT (FIXED-PRICE) (XXX 1994)

* * * * *
    (d) The Contractor shall submit complete termination inventory 
schedules no later than 120 days from the effective date of 
termination, unless extended in writing by the Contracting Officer 
upon written request of the Contractor within this 120 day period.
* * * * *
    6. Section 52.249-3 is amended in the clause by:
    (a) Revising the clause date;
    (b) Redesignating paragraphs (d) through (m) as (e) through (n), 
respectively; and
    (c) Adding a new paragraph (d) to read as follows:


52.249-3  Termination for Convenience of the Government (Dismantling, 
Demolition, or Removal of Improvements).

* * * * *

TERMINATION FOR CONVENIENCE OF THE GOVERNMENT (DISMANTLING, DEMOLITION, 
OR REMOVAL OF IMPROVEMENTS) (XXX 1994)

* * * * *
    (d) The Contractor shall submit complete termination inventory 
schedules no later than 120 days from the effective date of 
termination, unless extended in writing by the Contracting Officer 
upon written request of the Contractor within this 120 day period.
* * * * *
    7. Section 52.249-5 is amended in the clause by:
    (a) Revising the clause date;
    (b) Redesignating paragraphs (c) through (g) as (d) through (h), 
respectively; and
    (c) Adding a new paragraph (c) to read as follows:



52.249-5  Termination for Convenience of the Government (Educational 
and Other Nonprofit Institutions).

* * * * *

TERMINATION FOR CONVENIENCE OF THE GOVERNMENT (EDUCATIONAL AND OTHER 
NONPROFIT INSTITUTIONS) (XXX 1994)

* * * * *
    (c) The Contractor shall submit complete termination inventory 
schedules no later than 120 days from the effective date of 
termination, unless extended in writing by the Contracting Officer 
upon written request of the Contractor within this 120 day period.
* * * * *
    8. Section 52.249-6 is amended in the clause by:
    (a) Revising the clause date;
    (b) Redesignating paragraphs (e) through (m) as (f) through (n), 
respectively; and
    (c) Adding a new paragraph (e) to read as follows:


52.249-6  Termination (Cost-Reimbursement).

* * * * *

TERMINATION (COST-REIMBURSEMENT) (XXX 1994)

* * * * *
    (e) The Contractor shall submit complete termination inventory 
schedules no later than 120 days from the effective date of 
termination, unless extended in writing by the Contracting Officer 
upon written request of the Contractor within this 120 day period.
* * * * *
    9. Section 52.249-11 is amended in the clause by:
    (a) Revising the clause date;
    (b) Redesignating paragraphs (d) through (k) as (e) through (l), 
respectively; and
    (c) Adding a new paragraph (d) to read as follows:


52.249-11  Termination of Work (Consolidated Facilities or Facilities 
Acquisition).

* * * * *

TERMINATION OF WORK (CONSOLIDATED FACILITIES OR FACILITIES ACQUISITION) 
(XXX 1994)

* * * * *
    (d) The Contractor shall submit complete termination inventory 
schedules no later than 120 days from the effective date of 
termination, unless extended in writing by the Contracting Officer 
upon written request of the Contractor within this 120 day period.
* * * * *
    10. In addition to the amendments set forth above, newly-
redesignated paragraphs in sections 52.249-2, 52.249-3, 52.249-5, 
52.249-6, and 52.249-11 are further amended by updating the internal 
references and dates as follows:

                                                                                                                
                  SECTION                                 REMOVE                             INSERT             
                                                                                                                
52.249-2(f);                                                                                                    
    first sentence........................  ``(d)''                            ``(e)''                          
    third sentence........................  ``(e)''                            ``(f)''                          
                                            ``(f)''                            ``(g)''                          
                                            ``(f)(3)''                         ``(g)(3)''                       
    fourth sentence.......................  ``(f)''                            ``(g)''                          
52.249-2(g)-..............................  ``(e)''                            ``(f)''                          
52.249-2(g)(2)(i).........................  ``(f)(l)''                         ``(g)(l)''                       
52.249-2(h)-..............................  ``(f)''                            ``(g)''                          
52.249-2(j);                                                                                                    
    first sentence........................  ``(d), (f), or (k)''               ``(e), (g), or (l)''             
                                            ``(d) or (k)''                     ``(e) or (l)''                   
    second sentence.......................  ``(d), (f), or (k)''               ``(e), (g), or (l)''             
52.249-2, Alternate I                                                                                           
    introductory paragraph................  ``(APR 1984)''                     ``(XXX 1994)''                   
    (twice)...............................  ``(f)''                            ``(g)''                          
    paragraph (f)                                                                                               
      designation.........................  ``(f)''                            ``(g)''                          
      introductory paragraph..............  ``(e)''                            ``(f)''                          
52.249-2, Alternate II....................  ``(APR 1984)''                     ``(XXX 1994)''                   
                                            ``(l)(2)''-                        ``(m)(2)''                       
52.249-2, Alternate III...................  ``(APR 1984)''                     ``(XXX 1994)''                   
    first sentence (twice)................  ``(f)''                            ``(g)''                          
    second sentence.......................  ``(l)(2)''                         ``(m)(2)''                       
    paragraph (f)                                                                                               
      designation-........................  ``(f)''                            ``(g)''                          
      introductory paragraph..............  ``(e)''                            ``(f)''                          
52.249-3(f);..............................                                                                      
    first sentence........................  ``(d)''                            ``(e)''                          
    third sentence........................  ``(e)''                            ``(f)''                          
                                            ``(f)''                            ``(g)''                          
    fifth sentence........................  ``(f)''                            ``(g)''                          
52.249-3(g)-..............................  ``(e)''                            ``(f)''                          
52.249-3(h)-..............................  ``(f)''                            ``(g)''                          
52.249-3(j);                                                                                                    
    first sentence........................  ``(d), (f), or (k)''               ``(e), (g), or (l)''             
                                            ``(d) or (k)''                     ``(e) or (l)''                   
    second sentence.......................  ``(d), (f), or (k)''               ``(e), (g), or (l)               
52.249-3, Alternate I.....................  ``(APR 1984)''                     ``(XXX 1994)''                   
                                            ``(l)(2)''-                        ``(m)(2)''                       
52.249-5(e)-..............................  ``(c)''                            ``(d)''                          
52.249-5(h)-..............................  ``(c)''                            ``(d)''                          
52.249-6(g)-..............................  ``(e)''                            ``(f)''                          
52.249-6(h)(5)............................  ``(g)(4)''-                        ``(h)(4)''                       
52.249-6(j)-                                                                                                    
    first sentence........................  ``(c) or (g)''                     ``(f) or (h),-                   
                                            ``(k)''                            ``(l)''                          
                                            ``(e)''-                           ``(f)''                          
    second sentence.......................  ``(c), (g), or (k)''               ``(f), (h), or (l)''             
52.249-6, Alternate I,....................  ``(APR 1984)''                     (XXX 1994)''                     
                                            ``(g)(4)''                         ``(h)(4)''                       
    introductory paragraph                                                                                      
    (twice) and subparagraph                                                                                    
    designation (once)                                                                                          
52.249-6, Alternate II....................  ``(APR 1984)''                     ``(XXX 1994)''                   
                                            ``(l)(2)''                         ``(m)(2)''                       
52.249-6, Alternate III                                                                                         
    introductory paragraph................  ``(APR 1984)''                     ``(XXX 1994)''                   
    (twice)...............................  ``(g)(4)''                         ``(h)(4)''                       
    (once)................................  ``(l)(2)''-                        ``(m)(2)''                       
    subparagraph designation..............  ``(g)(4)''                         ``(h)(4)''                       
52.249-6, Alternate IV                                                                                          
    introductory paragraph................  ``(APR 1984)''                     ``(XXX 1994)''                   
    (twice)...............................  ``(g) and (k)''                    ``(h) and (l)''                  
    subparagraph designation..............  ``(g)''                            ``(h)''                          
52.249-6, Alternate V                                                                                           
    introductory paragraph................  ``(APR 1984)''                     ``(XXX 1994)''                   
    (twice)...............................  ``(g) and (k)''                    ``(h) and (l)''                  
    (once)................................  ``(l)(2)''-                        ``(m)(2)''                       
    subparagraph designation..............  ``(g)''                            ``(h)''                          
    subparagraph designation..............  ``(k)''-                           ``(l)''                          
52.249-11(f)..............................  ``(d)''                            ``(e)''                          
52.249-11(i)                                                                                                    
    first sentence........................  ``(d) or (f)''                     ``(e) or (g)''                   
                                            ``(d)                              ``(e)''                          
    second sentence.......................  ``(d) or (f)''                     ``(e) or (g)''                   
52.249-11, Alternate I....................  ``(APR 1984)''                     ``(XXX 1994)''                   
                                            ``(j)(2)''                         ``(k)(2)''                       
                                                                                                                

[FR Doc. 94-29420 Filed 11-30-94; 8:45 am]
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