[Federal Register Volume 59, Number 233 (Tuesday, December 6, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-29878]


[[Page Unknown]]

[Federal Register: December 6, 1994]


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DEPARTMENT OF DEFENSE

48 CFR Part 242

 

Defense Federal Acquisition Regulation Supplement; Personal 
Services Compensation

AGENCY: Department of Defense (DoD).

ACTION: Proposed rule with request for comments.

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SUMMARY: The Department of Defense is proposing to amend the Defense 
Federal Acquisition Regulation Supplement to establish a dollar 
threshold for DoD contractors for application of the FAR requirements 
for contractor compensation system reviews.

DATES: Comments on the proposed rule should be submitted in writing at 
the address shown below on or before February 6, 1995, to be considered 
in the formulation of a final rule.

ADDRESSES: Interested parties should submit written comments to: 
Defense Acquisition Regulations Council, ATTN: Mr. Eric R. Mens, 
PDUSD(A&T)DP/DAR, IMD 3D139, 3062 Defense Pentagon, Washington, DC 
20301-3062. Telefax number (703) 602-0350. Please cite DAR Case 91-085D 
in all correspondence.

FOR FURTHER INFORMATION CONTACT: Mr. Eric R. Mens, (703) 602-0131.

SUPPLEMENTARY INFORMATION: 

A. Background

    This proposed DFARS rule supplements a proposed FAR rule concerning 
the allowability of personal services compensation costs which was 
published in the Federal Register for public comment on October 11, 
1994 (59 FR 51399). The proposed DFARS rule would limit the FAR 
compensation system review procedures to DoD prime contractors or 
subcontractors which have received awards totaling $50 million or more 
in the previous fiscal year and for which cost or pricing data was 
submitted.

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. An Initial 
Regulatory Flexibility Analysis has, therefore, not been performed. 
Comments from small entities concerning the affected DFARS subpart will 
be considered in accordance with Section 610 of the Act. Such comments 
must be submitted separately and cite DAR Case 91-085D in 
correspondence.

C. Paperwork Reduction Act

    The Paperwork Reduction Act (Pub. L. 96-511) does not apply because 
the proposed rule does not impose any additional reporting or 
recordkeeping requirements which require the approval of OMB under 44 
U.S.C. 3501 et seq.

List of Subjects in 48 CFR Part 242

    Government procurement.
Claudia L. Naugle,
Deputy Director, Defense Acquisition Regulations Council.

    Therefore, it is proposed that 48 CFR Part 242 be amended as 
follows:

PART 242--CONTRACT

ADMINISTRATION

    1. The authority citation for 48 CFR Part 242 continues to read as 
follows:

    Authority: 41 U.S.C. 421 and 48 CFR Chapter 1.
    2. Subpart 242.13 is added to read as follows:

Subpart 242.13--Contractor Compensation Systems

Sec.
242.1303  Applicability.

Subpart 242.13--Contractor Compensation Systems

242.1303  Applicability.
    (a) The review procedures at FAR 42.1306 apply only to DoD 
contractors which in their preceding fiscal year received Government 
prime contracts or subcontracts totaling $50 million or more for which 
cost or pricing data was submitted.
[FR Doc. 94-29878 Filed 12-5-94; 8:45 am]
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