[Federal Register Volume 59, Number 248 (Wednesday, December 28, 1994)]
[Unknown Section]
[Page ]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-30640]


[Federal Register: December 28, 1994]


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DEPARTMENT OF DEFENSE
DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 44 and 52

[FAC 90-23; FAR Case 91-68; Item XXIX]
RIN 9000-AF63


Federal Acquisition Regulation; Consent to Subcontract

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

ACTION: Final rule.

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SUMMARY: The Civilian Agency Acquisition Council and the Defense 
Acquisition Regulations Council have agreed on a final rule to revise 
the Federal Acquisition Regulation (FAR) to eliminate the exception for 
contracting officer consent for major systems and subsystems. Instead, 
contracting officers are allowed to specify in the contract schedule 
all subcontracts for major systems, subsystems, or components needing 
special surveillance, for which consent to subcontract must be obtained 
by the prime contractor. This regulatory action was not subject to 
Office of Management and Budget review under Executive Order 12866, 
dated September 30, 1993.

EFFECTIVE DATE: February 27, 1995.

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 4035, GS Building, Washington, DC 20405 (202) 501-
4755. Please cite FAC 90-23, FAR case 91-68.

SUPPLEMENTARY INFORMATION:

A. Background

    The councils have agreed that there is a need to revise the FAR to 
allow the Government to take maximum advantage of the ``systems'' 
approach, i.e., by applying the ``systems'' approach to ``consent to 
subcontract'' requirements with respect to major systems, subsystems 
and components. The revised coverage will allow the Government to rely 
on the contractor's approved purchasing system to control routine 
procurements.

B. Regulatory Flexibility Act

    This final rule does not constitute a significant FAR revision 
within the meaning of FAR 1.501 and Public Law 98-577, because the 
addition of the word ``critical'' in the text at FAR 44.201 narrows the 
field of major systems items involved as well as the number of small 
businesses who may be involved with major systems items. This small 
business involvement is expected to be minimal. Therefore, publication 
for public comment is not required and the Regulatory Flexibility Act 
does not apply. However, 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. (FAC 90-23, FAR case 91-68), 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 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 Parts 44 and 52

    Government procurement.

    Dated: December 7, 1994.
Albert A. Vicchiolla,
Director, Office of Federal Acquisition Policy.

    Therefore, 48 CFR parts 44 and 52 are amended as set forth below:
    1. The authority citation for 48 CFR parts 44 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).

PART 44--SUBCONTRACTING POLICIES AND PROCEDURES

    2. Section 44.201-1 is amended by revising paragraph (b) to read as 
follows:


44.201-1   Fixed-price prime contracts.

* * * * *
    (b) If the contractor has an approved purchasing system--
    (1) Consent to subcontracts is not required under other fixed-price 
prime contracts (but see paragraph (b)(2) of this section); and
    (2) Consent is required for subcontracts identified in the 
subcontracts clause of the contract. These can be subcontracts for 
critical systems, subsystems, or components, or other subcontracts 
selected by the contracting officer as needing special surveillance. 
Subcontracts may be identified by subcontract number or by class of 
items (e.g., subcontracts for engines on a prime contract for 
airframes).
* * * * *
    3. Section 44.201-2 is amended by revising paragraph (c) and 
removing paragraph (d) to read as follows:


44.201-2   Cost-reimbursement and letter prime contracts.

* * * * *
    (c) If the contractor has an approved purchasing system--
    (1) Consent is not required for the subcontracts identified in 
paragraph (b) of this section (but see paragraph (c)(2) of this 
section). However, advance notification is still required by 10 U.S.C. 
2306(e) or 41 U.S.C. 254(b); and
    (2) Consent is required for subcontracts identified in the 
subcontracts clause of the contract. These can be subcontracts for 
critical systems, subsystems, or components, or other subcontracts 
selected by the contracting officer as needing special surveillance. 
Subcontracts may be identified by subcontract number or by class of 
items (e.g., subcontracts for engines on a prime contract for 
airframes).
    4. Section 44.204 is amended by revising paragraph (a)(3) to read 
as follows:


44.204   Contract clauses.

    (a) * * *
    (3) If the contracting officer elects to delete the requirement for 
advance notification of, or consent to, any subcontracts that were 
evaluated during negotiations, the contracting officer shall use the 
clause with its Alternate I.
* * * * *


44.205   [Removed]

    5. Section 44.205 is removed.

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

    6. Section 52.244-1 is amended by revising the date of the clause 
to read ``(FEB 1995)'' and paragraph (e) to read as follows:


52.244-1   Subcontracts (Fixed-Price Contracts).

* * * * *

Subcontracts (Fixed-Price Contracts) (Feb. 1995)

* * * * *
    (e) Even if the Contractor's purchasing system has been approved, 
the Contractor shall obtain the Contracting Officer's written consent 
before placing subcontracts identified below:
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* * * * *
    7. Section 52.244-2 is amended by revising the date of the clause 
to read ``(FEB 1995)'' and paragraphs (d) and (e) to read as follows:


52.244-2   Subcontracts (Cost-Reimbursement and Letter Contracts).

* * * * *

Subcontracts (Cost-Reimbursement and Letter Contracts) (Feb. 1995)

* * * * *
    (d) If the Contractor has an approved purchasing system and the 
subcontract is within the scope of such approval, the Contractor may 
enter into the subcontracts described in subparagraphs (a)(1) and 
(a)(2) of this clause without the consent of the Contracting Officer.
    (e) Even if the Contractor's purchasing system has been approved, 
the Contractor shall obtain the Contracting Officer's written consent 
before placing subcontracts identified below:
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[FR Doc. 94-30640 Filed 12-27-94; 8:45 am]
BILLING CODE 6820-34-P