[Federal Register Volume 60, Number 248 (Wednesday, December 27, 1995)]
[Proposed Rules]
[Pages 67024-67025]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-31204]




[[Page 67023]]

_______________________________________________________________________

Part II

Department of Defense

General Services Administration

National Aeronautics and Space Administration
_______________________________________________________________________



48 CFR Parts 46 and 52



Federal Acquisition Regulation: Clause Flowdown; Proposed Rule

  Federal Register / Vol. 60, No. 248 / Wednesday, December 27, 1995 / 
Proposed Rules   

[[Page 67024]]


DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 46 and 52

[FAR Case 92-035]
RIN 9000-AG76


Federal Acquisition Regulation; Clause Flowdown

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 (Councils) are proposing to amend the 
Federal Acquisition Regulation (FAR) to reduce the number of contract 
clauses requiring flowdown to subcontractors. 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 February 26, 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 92-035 in all correspondence related to this 
case.

FOR FURTHER INFORMATION CONTACT: Mr. Harry Rosinski at (202) 501-0692 
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 92-035.

SUPPLEMENTARY INFORMATION:

A. Background

    The Councils conducted an extensive review of all FAR clauses 
requiring flowdown to subcontractors in an effort to eliminate any 
unnecessary flowdown requirements. As a result, the Councils are 
proposing to eliminate requirements for flowdown of the clauses at FAR 
52.215-26, 52.216-5, 52.216-6, 52.216-16, 52.216-17, 52.222-1, 52.236-
21, 52.244-2(i), 52.246-23, 52.246-24, and 52.246-25.

B. Regulatory Flexibility Act

    The proposed changes may 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 it will 
reduce administrative burden for Government contractors and their 
subcontractors. An Initial Regulatory Flexibility Analysis (IRFA) has 
been prepared and will be provided to the Chief Counsel for Advocacy 
for the Small Business Administration. A copy of the IRFA may be 
obtained from the FAR Secretariat. Comments are invited. 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. (FAR case 92-035), 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 Parts 46 and 52

    Government procurement.

    Dated: December 18, 1995.
Edward C. Loeb,
 Acting Director, Office of Federal Acquisition Policy.

    Therefore, it is proposed that 48 CFR parts 46 and 52 be amended as 
set forth below:
    1. The authority citation for 48 CFR parts 46 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 46--QUALITY ASSURANCE


46.806  [Removed]

    2. Section 46.806 is removed.

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES


52.215-26  [Amended]

    3. Section 52.215-26 is amended by revising the date of the clause 
to read ``(DATE)'' and by removing paragraph (d).
    4. 52.216-5 is amended by revising the introductory paragraph, the 
date of the clause, and paragraph (i) to read as follows:


52.216-5  Price Redetermination--Prospective.

    As prescribed in 16.205-4, insert the following clause:

PRICE REDETERMINATION--PROSPECTIVE (DATE)

* * * * *
    (i) Subcontracts. No subcontract placed under this contract may 
provide for payment on a cost-plus-a-percentage-of-cost basis.
* * * * *
(End of clause)

    5. Section 52.216-6 is amended by revising the introductory text, 
the date of the clause, and paragraph (h) to read as follows:


52.216-6  Price Redetermination--Retroactive.

    As prescribed in 16.206-4, insert the following clause:

PRICE REDETERMINATION--RETROACTIVE (DATE)

* * * * *
    (h) Subcontracts. No subcontract placed under this contract may 
provide for payment on a cost-plus-a-percentage-of-cost basis.
* * * * *
(End of clause)

    6. Section 52.216-16 is amended by revising the introductory 
paragraph, the date of the clause, and paragraph (h) to read as 
follows:


52.216-16  Incentive Price Revision--Firm Target.

    As prescribed in 16.405(a), insert the following clause:

INCENTIVE PRICE REVISION--FIRM TARGET (DATE)

* * * * *
    (h) Subcontracts. No subcontract placed under this contract may 
provide for payment on a cost-plus-a-percentage-of-cost basis.
* * * * *
(End of clause)
* * * * *
    7. Section 52.216-17 is amended by revising the introductory 
paragraph, the date of the clause, and paragraph (j) to read as 
follows:


52.216-17  Incentive Price Revision--Successive Targets.

    As prescribed in 16.405(b), insert the following clause:

INCENTIVE PRICE REVISION--SUCCESSIVE TARGETS (DATE)

* * * * *
    (j) Subcontracts. No subcontract placed under this contract may 
provide for payment on a cost-plus-a-percentage-of-cost basis.
* * * * *
(End of clause)
* * * * *
    8. Section 52.222-1 is amended by revising the introductory 
paragraph and the date of the clause; by removing the paragraph 
designation ``(a)'' in paragraph (a); and by removing paragraph (b). 
The revised text reads as follows: 

[[Page 67025]]



52.222-1  Notice to the Government of Labor Disputes.

    As prescribed in 22.103-5(a), insert the following clause:

NOTICE TO THE GOVERNMENT OF LABOR DISPUTES (DATE)

* * * * *
(End of clause)


52.236-21  [Amended]

    9. Section 52.236-21 is amended by revising the date of the clause 
to read ``(DATE)'' and by removing paragraph (h).


52.244-2  [Amended]

    10. Section 52.244-2 is amended by removing and reserving paragraph 
(i).


52.246-23  [Amended]

    11. Section 52.246-23 is amended by revising the date of the clause 
to read ``(DATE)'' and by removing paragraph (d).


52.246-24  [Amended]

    12. Section 52.246-24 is amended by revising the date of the clause 
to read ``(DATE)'' and by removing paragraphs (f) and (g).


52.246-25  [Amended]

    13. Section 52.246-25 is amended by revising the date of the clause 
to read ``(DATE)'' and by removing paragraph (d).

[FR Doc. 95-31204 Filed 12-26-95; 8:45 am]
BILLING CODE 6820-EP-P