[Federal Register Volume 59, Number 240 (Thursday, December 15, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-30604]


[[Page Unknown]]

[Federal Register: December 15, 1994]


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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 7, 11, 16, and 19
[FAC 90-24; FAR Case 94-700; Item I]
RIN 9000-AG25
 

Federal Acquisition Regulation; Repeal of Requirement for 
Secretarial/Agency Head Determinations Regarding Use of Cost Type or 
Incentive Contracts
AGENCIES: Department of Defense (DOD), General Services Administration 
(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Interim rule with request for comment.

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SUMMARY: This interim rule is issued pursuant to the Federal 
Acquisition Streamlining Act of 1994 to delete the requirement for a 
``determination and findings'' before using a cost type or incentive 
contract and to delete references to 10 U.S.C. 2301. This regulatory 
action was not subject to Office of Management and Budget review under 
Executive Order 12866, dated September 30, 1993.

DATES: Effective Date: December 15, 1994.
    Comment Date: Comments should be submitted to the FAR Secretariat 
at the address shown below 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, Attn: Ms. Beverly Fayson, Washington, DC 20405.
Please cite FAC 90-24, FAR case 94-700 in all correspondence related to 
this case.

FOR FURTHER INFORMATION CONTACT: Ms. Melissa Rider, Contract Award Team 
Leader, at (703) 614-1634 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 FAC 90-24, FAR case 
94-700.

SUPPLEMENTARY INFORMATION:

A. Background

    The Federal Acquisition Streamlining Act of 1994 (the Act), 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 the 
Act's 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.
    This notice announces proposed FAR revisions developed under FAR 
case 94-700, Repeal of Requirement for Secretarial/Agency Head 
Determinations Regarding Use of Cost Type or Incentive Contracts. 
Sections 1021 and 1071 repealed the requirement for a determination 
regarding use of a cost type or incentive contract. Therefore, the FAR 
at 16.301-3, 16.403, 16.403-1, and 16.403-2 has been amended to delete 
the requirement. Section 1501 repealed Section 2301 of Title 10, United 
States Code. The references to 10 U.S.C. 2301 at FAR 7.102, 11.002 and 
19.000 have been deleted.
    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 94-700) because of the clarity and non-controversial 
nature of the rule. 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, above) on or 
before January 17, 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 interim rule is not expected to have 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 it 
affects internal operating procedures of the Federal Government. An 
Initial Regulatory Flexibility Analysis has, therefore, not been 
performed. Comments from small entities concerning the affected FAR 
Subparts will also be considered in accordance with 5 U.S.C. 610. Such 
comments must be submitted separately and cite 5 U.S.C. 601, et seq. 
(FAC 90-24, FAR case 94-700) in correspondence.

C. Paperwork Reduction Act

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

D. Determination To Issue an Interim Rule

    A determination has been made under the authority of the Secretary 
of Defense (DOD), the Administrator of General Services (GSA), and the 
Administrator of the National Aeronautics and Space Administration 
(NASA) that, pursuant to 41 U.S.C. 418b, urgent and compelling reasons 
exist to promulgate this interim rule without prior opportunity for 
public comment. The Federal Acquisition Streamling Act provided that 
sections 1021, 1071, and 1501 are effective upon enactment. However, 
public comments received in response to this interim rule will be 
considered in formulating the final rule. This rule is necessary to 
implement Sections 1021 and 1071 of the Federal Acquisition 
Streamlining Act of 1994 (Pub. L. 103-355) which repealed the 
requirement for a determination regarding use of a cost type or 
incentive contract.

List of Subjects in 48 CFR Parts 7, 11, 16, and 19

    Government procurement.

    Dated: December 8, 1994.
Edward Loeb,
Deputy Project Manager for the Implementation of the Federal 
Acquisition Streamlining Act of 1994.

    Therefore, 48 CFR Parts 7, 11, 16, and 19 are amended as set forth 
below:
    1. The authority citation for 48 CFR Parts 7, 11, 16, and 19 
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).

PART 7--ACQUISITION PLANNING


7.102  [Amended]

    2. Section 7.102 is amended by removing from the second 
parenthetical ``10 U.S.C. 2301(a)(5) and''.
* * * * *

PART 11--ACQUISITION AND DISTRIBUTION OF COMMERCIAL PRODUCTS


11.002  Policy.

    3. Section 11.002 is amended by removing the last sentence.

PART 16--TYPES OF CONTRACTS


16.301-3  [Amended]

    4. Section 16.301-3 is amended by removing from the end of 
paragraph (b) ``and'' and inserting it at the end of paragraph (a); by 
removing the semicolon from the end of paragraph (b) and inserting a 
period in its place; and by removing paragraph (c) and redesignating 
paragraph (d) as (c).


16.403  [Amended]

    5. Section 16.403 is amended by removing paragraph (c) and 
redesignating paragraph (d) as (c).


16.403-1 and 16.403-2  [Amended]

    6. Sections 16.403-1 and 16.403-2 are both amended at the end of 
paragraph (c)(1) by adding the word ``and'' after the semicolon; at the 
end of paragraph (c)(2) by removing ``; and'' and inserting a period; 
and by removing paragraph (c)(3).

PART 19--SMALL BUSINESS AND SMALL DISADVANTAGED BUSINESS CONCERNS


19.000  [Amended]

    7. Section 19.000 is amended in the introductory text of paragraph 
(a) by removing the parenthetical ``(10 U.S.C. 2301, et seq.)'' and 
inserting ``(10 U.S.C. 2302, et seq.)''.
[FR Doc. 94-30604 Filed 12-13-94; 10:44 am]
BILLING CODE 6820-34-P