[Federal Register Volume 60, Number 161 (Monday, August 21, 1995)]
[Proposed Rules]
[Page 43508]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-20612]



      

[[Page 43507]]

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Part III

Department of Defense

General Services Administration

National Aeronautics and Space Administration
_______________________________________________________________________



48 CFR Part 31



Federal Acquisition Regulation; Bid and Proposal Costs Definition; 
Business Meals: Proposed Rules

  Federal Register / Vol. 60, No. 161 / Monday, August 21, 1995 / 
Proposed Rules  

[[Page 43508]]


DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Part 31

[FAR Case 93-18]
RIN 9000-AG58


Federal Acquisition Regulation; Definition of Bid and Proposal 
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: The Civilian Agency Acquisition Council and the Defense 
Acquisition Regulations Council are proposing changes to the Federal 
Acquisition Regulation (FAR) by revising the definition of bid and 
proposal (B&P) costs to clarify that B&P costs related to all types of 
funding instruments (e.g., contracts, grants, cooperative agreements, 
and other similar types of agreements) are allowable costs. 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 October 20, 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 93-18 in all correspondence related to this 
case.

FOR FURTHER INFORMATION CONTACT:
Jeremy F. Olson at (202) 501-3221 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 93-
18.

SUPPLEMENTARY INFORMATION: 

A. Background

    The proposed FAR rule would revise the definition of bid and 
proposal (B&P) costs at FAR 31.205-18(a) to clarify that B&P costs 
related to all types of funding instruments (e.g., contracts, grants, 
cooperative agreements, and other similar types of agreements) are 
allowable costs. The definition currently does not address proposal 
costs associated with grants or cooperative agreements. This change was 
requested by the Director of Defense Procurement to address an issue 
which arose under a competition being conducted by the Advanced 
Research Projects Agency (ARPA) and to make the cost principle 
compatible with the definition of B&P costs in Cost Accounting Standard 
420 (4 CFR 9904.420-30).
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 entities are awarded on a competitive, 
fixed-price basis and the cost principles do not apply. The cost 
principles apply only to contracts for which cost or pricing data has 
been submitted. An Initial Regulatory Flexibility Analysis has, 
therefore, not 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 93-18), 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: August 15, 1995.
C. Allen Olson,
Director, Office of Federal Acquisition Policy.

    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 31.205-18 is amended in paragraph (a) by revising the 
definition of Bid and proposal (B&P) costs to read as follows:


31.205-18  Independent research and development and bid and proposal 
costs.

* * * * *
    Bid and proposal (B&P) costs, as used in this subsection, means the 
costs incurred in preparing, submitting, and supporting bids and 
proposals (whether or not solicited) on potential Government or non-
Government contracts, grants, cooperative agreements, or other 
transactions (coordinated research, consortia, and other similar types 
of agreements). The term does not include the costs of effort sponsored 
by a grant, cooperative agreement, or other transaction, or required in 
the performance of a contract.
* * * * *
[FR Doc. 95-20612 Filed 8-18-95; 8:45 am]
BILLING CODE 6820-EP-M