[Federal Register Volume 60, Number 140 (Friday, July 21, 1995)]
[Rules and Regulations]
[Pages 37776-37777]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-17937]



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[[Page 37777]]



DEPARTMENT OF DEFENSE
DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 7, 11, 16, 19, 36, and 41

[FAC 90-30, FAR Case 94-700; Item IV]
RIN 9000-AG25


Federal Acquisition Regulation; Repeal of Requirements 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: Final rule.

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summary: The Federal Acquisition Regulatory Council has agreed to adopt 
the interim rule published in the Federal Register at 59 FR 64784, 
December 15, 1994, as a final rule and to make additional conforming 
amendments. This rule is issued pursuant to the Federal Acquisition 
Streamlining Act of 1994 to amend the Federal Acquisition Regulation 
(FAR) 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 subject to Office of 
Management and Budget review under Executive Order 12866, dated 
September 30, 1993.

effective date: September 19, 1995.

for further information contact:     Ms. Melissa Rider, Contract Award 
Team Leader, at (703) 614-1634 in reference to this FAR case. For 
general information, contract the FAR Secretariat, Room 4037, GS 
Building, Washington, DC 20405 (202) 501-4755. Please cite FAC 90-30, 
FAR case 94-700.

SUPPLEMENTARY INFORMATION:

A. Background

    The Federal Acquisition Streamlining Act (FASA) of 199, Pub. L. 
103-355, provides authorities that streamline the acquisition process 
and minimize burdensome Government-unique requirements. Major changes 
in the acquisition process as a result of FASA 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 (FACNET).
    The interim rule announced FAR revisions developed under FAR case 
94-700, Repeal of Requirements 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. Section 1501 
repealed Section 2301 of Title 10, United States Code. Therefore, the 
interim rule revised the FAR to delete the determination requirements 
which are no longer necessary and to delete references to 10 U.S.C. 
2301. The final rule also amends FAR 16.306(c)(2) to permit contracting 
officers to sign determinations and findings that are still required to 
establish the basis for application of the statutory price or fee 
limitation in cost-plus-fixed-fee contracts.

B. Regulatory Flexibility Act

    The Department of Defense, the General Services Administration, and 
the National Aeronautics and Space Administration certify that this 
final rule will not have a significant economic impact on a substantial 
number of small entities under the Regulatory Flexibility Act, 5 U.S.C. 
601, et seq., because the changes affect only internal Government 
procedures for processing determinations and findings related to cost 
type and incentive contracts.

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.

D. Public Comments

    Six public comments were received in response to the interim rule. 
These comments were considered in the formulation of this final rule.

List of Subjects in 48 CFR Parts 7, 11, 16, 19, 36, and 41

    Government procurement.

    Dated: July 17, 1995.
Capt. Barry L. Cohen, SC, USN,
Project Manager for the Implementation of the Federal Acquisition 
Streamlining Act of 1994.

Interim Rule Adopted as Final

    Accordingly, the interim rule amending 48 CFR parts 7, 11, 16, and 
19, which was published at 59 FR 64784 on December 15, 1994, is adopted 
as a final rule and 48 CFR parts 16, 36, and 41 are amended as follows:

PART 16--TYPES OF CONTRACTS

    1. The authority citation for 48 CFR parts 7, 11, 16, 19, 36, and 
41 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 16.306 is amended by revising paragraph (c)(2) to read 
as follows:

16.306  Cost-plus-fixed-fee Contracts.

* * * * *

    (c) * * *

    (2) The contracting officer has signed a determination and findings 
establishing the basis for application of the statutory price or fee 
limitation (see 15.903(d)).

* * * * *

PART 36--CONSTRUCTION AND ARCHITECT-ENGINEERING CONTRACTS

    3. Section 36.606 is amended in paragraph (a) by revising the last 
sentence to read as follows:

36.606  Negotiations.

    (a) * * * Negotiations shall be conducted in accordance with part 
15 of this chapter, beginning with the most preferred firm in the final 
selection (see 15.903(d)(1)(ii) on fee limitation and the determination 
and findings requirement at 16.306(c)(2) for a cost-plus-fixed-fee 
contract).

* * * * *

PART 41--ACQUISITION OF UTILITY SERVICES

41.103  [Amended]

    4. Section 41.103 is amended in paragraph (a)(2) by removing ``10 
U.S.C. 2301, 2304,'' and inserting in its place ``10 U.S.C. 2304''.


[FR Doc. 95-17937 Filed 7-20-95; 8:45 am]

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