[Federal Register Volume 59, Number 239 (Wednesday, December 14, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-30698]


[[Page Unknown]]

[Federal Register: December 14, 1994]


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Part V

Department of Defense

General Services Administration

National Aeronautics and Space Administration
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48 CFR Part 31



Federal Acquisition Regulation (FAR): Travel Costs; Proposed Rule
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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Part 31

[FAR Case 94-753]
RIN 9000-AG27

 

Federal Acquisition Regulation; Travel 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: This proposed rule is issued pursuant to the Federal 
Acquisition Streamlining Act of 1994, Public Law 103-355 (the Act). The 
Federal Acquisition Regulatory Council is considering amending the 
Federal Acquisition Regulation (FAR) as a result of changes to 41 
U.S.C. 22 by Section 2191 of the Act. This regulatory action was not 
subject to Office of Management and Budget review under Executive Order 
12866, dated September 30, 1993.

DATES: Comments should be submitted on or before February 13, 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 94-753 in all correspondence related to this 
case.

FOR FURTHER INFORMATION CONTACT: Mr. Clarence Belton at (703) 602-2357 
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 94-753.

SUPPLEMENTARY INFORMATION:

A. Background

    The Federal Acquisition Streamlining Act of 1994, Pub. L. 103-355, 
provides authorities that streamline the acquisition process and 
minimize burdensome government-unique requirements. Major changes that 
can be expected in the acquisition process as a result of Federal 
Acquisition Streamlining Act implementation include changes in the 
areas of Commercial Item Acquisition, Simplified Acquisition 
Procedures, the Truth in Negotiations Act, and introduction of the 
Federal Acquisition Computer Network. In order to promptly achieve the 
benefits of the provisions of the Act, the Government is issuing 
implementing regulations on an expedited basis. We believe prompt 
publication of proposed rules provides the public the opportunity to 
participate more fully in the process of developing regulations.-
    This notice announces FAR revisions developed under FAR case 94-
753. The recommended revisions to the cost principle, FAR 31.205-46, 
are proposed as a result of Section 2191 of the Federal Acquisition 
Streamlining Act of 1994, which repealed Section 24 of the Office of 
Federal Procurement Policy (OFPP) Act (41 U.S.C. 420). Generally, 
Section 24 of the OFPP Act required that costs incurred by contractor 
personnel for travel be considered reasonable and allowable only to the 
extent that they did not exceed the maximum per diem rates permitted by 
the Federal Travel Regulation (FTR) or the Joint Travel Regulations 
(JTR).
    Simply returning to the prior standard of reasonableness could 
create severe administrative burdens for both the contractor and the 
Government and could lead to Government reimbursement of excessive 
costs. However, it is recognized that industry has valid concerns 
regarding travel costs, such as separate accounting systems for 
Government versus commercial work and the unavailability of Government 
rates at certain locations.
    Accordingly, it is recommended that the FTR/JTR rates be used as a 
baseline from which both the contractor and the Government can proceed. 
However, the proposed rule would permit contractors to propose 
alternative rates to those prescribed in the FTR/JTR.-
    The FAR Council is interested in an exchange of ideas and opinions 
with respect to the regulatory implementation of the Act. For that 
reason, the FAR Council is conducting a series of public meetings. 
However, the FAR Council has not scheduled a public meeting on this 
rule (FAR case 94-753). If the public believes such a meeting is needed 
with respect to this rule, a letter requesting a public meeting and 
outlining the nature of the requested meeting shall be submitted to and 
received by the FAR Secretariat (see ADDRESSES caption) on or before 
January 13, 1995.-
    The FAR Council will consider such requests in determining whether 
a public meeting on this rule should be scheduled.

B. Regulatory Flexibility Act

    This 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 businesses are awarded through sealed 
bidding on a firm fixed price basis. The cost principles apply only 
where contracts are based on cost or pricing data; accordingly, no 
Initial Regulatory Flexibility Analysis has been performed. Comments 
from small entities concerning the affected FAR subpart will 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 94-753), 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: December 8, 1994.

Capt. Barry L. Cohen, SC, USN,
Project Manager for the Implementation of the Federal Acquisition 
Streamlining Act of 1994.

    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 31.205-46 is amended in the introductory text of 
paragraph (a)(2) by removing ``paragraph (a)(3)'' and inserting in its 
place ``paragraphs (a)(3) and (a)(7)''; and adding (a)(7) to read as 
follows:


31.205-46  Travel costs.-

    (a) * * *
    (7) Contractors may propose an alternative set of maximum per diem 
rates to replace the rates prescribed by subparagraph (a)(2) of this 
subsection. The contracting officer may approve alternative rates if 
the contractor demonstrates that the alternative rates are reasonable, 
are derived from the contractor's normal travel cost reimbursement 
system, and do not exceed amounts normally paid under that system. In 
order to be allowable, the alternative rates must be approved prior to 
the incurrence of the travel costs.
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[FR Doc. 94-30698 Filed 12-13-94; 8:45 am]
BILLING CODE 6820-34-D