[Federal Register Volume 60, Number 218 (Monday, November 13, 1995)]
[Proposed Rules]
[Pages 57140-57141]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-27742]




[[Page 57139]]

_______________________________________________________________________

Part VI

Department of Defense

General Services Administration

National Aeronautics and Space Administration
_______________________________________________________________________



48 CFR Part 1 et al.



Federal Acquisition Regulation: Contingent Fee Representation; Proposed 
Rule

  Federal Register / Vol. 60, No. 218 / Monday, November 13, 1995 / 
Proposed Rules  

[[Page 57140]]


DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 1, 3, 4, 13, 31, 52, and 53

[FAR Case 93-009]


Federal Acquisition Regulation; Contingent Fee Representation

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

ACTION: Proposed rule.

-----------------------------------------------------------------------

SUMMARY: The Civilian Agency Acquisition Council and the Defense 
Acquisition Regulations Council are proposing revising the Federal 
Acquisition Regulation (FAR) to delete the provision requiring an 
offeror to provide a contingent fee representation and agreement and to 
submit a statement of contingent or other fees. Also, the proposed rule 
rescinds the information collection requirement under Office of 
Management and Budget (OMB) Clearance Number 9000-0003, Contingent Fee 
Representation. 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 January 12, 1996, 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 93-009 in all correspondence related to this 
case.

FOR FURTHER INFORMATION CONTACT:
Mr. Ralph DeStefano at (202) 501-1758 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 
93-009.

SUPPLEMENTARY INFORMATION: 

A. Background

    FAR 3.404(b) requires the contracting officer to insert the 
provision at 52.203-4, Contingent Fee Representation and Agreement, in 
all solicitations, with five exceptions. The provision requires 
offerors to provide a contingent fee representation as requested by the 
contracting officer. When the representation is answered affirmatively, 
the offeror must also provide a complete Standard Form (SF) 119, 
Statement of Contingent or Other Fees or a signed statement indicating 
the SF 119 was previously submitted to the same contracting office. The 
proposed rule revises FAR 3.404 to remove the solicitation provision 
and removes the accompanying subparts 3.406, 3.407, and 3.408 which 
deal with the SF 119. FAR 3.409 and 3.410 have been renumbered.

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. There is a slight 
beneficial impact on small entities since offerors will no longer be 
required to provide contingent fee representations and agreements or to 
submit statements of contingent or other fees. The contingent fee 
underlining policy still remains in place. 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-
009), in correspondence.

C. Paperwork Reduction Act

    The Paperwork Reduction Act (Pub. L. 104-13) 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 Parts 1, 3, 4, 13, 31, 52, and 53

    Government procurement.

    Dated: November 3, 1995.
C. Allen Olson,
Director, Office of Federal Acquisition Policy.

    Therefore, it is proposed that 48 CFR Parts 1, 3, 4, 13, 31, 52, 
and 53 be amended as set forth below:

PART 1--FEDERAL ACQUISITION REGULATIONS SYSTEM

    1. The authority citation for 48 CFR Parts 1, 3, 4, 13, 31, 52, and 
53 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).


1.106   [Amended]

    2. Section 1.106 is amended in the list of ``FAR Segments'' and 
``OMB Control Numbers'' following the introductory text by removing 
``52.203-4'' and ``9000-0003'', and ``SF 119'' and ``9000-0003''.

PART 3--IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF 
INTEREST

    3. Section 3.404 is revised to read as follows:


3.404   Contract clause.

    The contracting officer shall insert the clause at 52.203-5, 
Covenant Against Contingent Fees, in all solicitations and contracts 
exceeding the simplified acquisition threshold in part 13 other than 
those for commercial items (see parts 2 and 12).


3.405 through 3.408-2   [Removed]

    4. Sections 3.405 through 3.408-2 are removed.


3.409 and 3.410   [Redesignated as 3.405 and 3.406]

    5. 3.409 and 3.410 are redesignated as 3.405 and 3.406.
    6. The newly designated 3.406 is amended by revising the first 
sentence to read as follows:


3.406   Records.

    For enforcement purposes, agencies shall preserve any specific 
evidence of one or more violations of 3.405(a), together or with all 
other pertinent data, including a record of actions taken. * * *

PART 4--ADMINISTRATIVE MATTERS

    7. Section 4.803 is amended by revising (a)(11) to read as follows:


4.803   Contents of contract files.

* * * * *
    (a) * * *
    (11) Contractor's certifications and representations.
* * * * *

PART 13--SIMPLIFIED ACQUISITION PROCEDURES


13.111   [Amended]

    8. Section 13.111 is amended by removing paragraph (c) and 
redesignating paragraphs (d) through (j) as (c) through (i).

PART 31--CONTRACT COST PRINCIPLES AND PROCEDURES


31.205-38   [Amended]

    9. Section 31.205-38 is amended at the end of paragraph (f) by 
removing the parenthetical ``(see 3.408-2)''.

[[Page 57141]]


PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES


52.203-4   [Reserved]

    10. Section 52.203-4 is removed and reserved.


52.203-5   [Amended]

    11. Section 53.203-5 is amended in the introductory paragraph by 
removing ``3.404(c)'' and inserting ``3.404''.

PART 53--FORMS


53.203   [Amended]

    12. Section 53.203 is amended by removing paragraph (a) and the 
designation of paragraph (b).


53.301-119   [Removed]

    13. Section 53.301-119 is removed.

[FR Doc. 95-27742 Filed 11-9-95; 8:45 am]
BILLING CODE 6820-EP-M