[Federal Register Volume 61, Number 18 (Friday, January 26, 1996)]
[Rules and Regulations]
[Pages 2634-2635]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-1021]



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DEPARTMENT OF DEFENSE
DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Part 15

[FAC 90-37; FAR Case 92-002; Item VII]
RIN 9000-AF74


Federal Acquisition Regulation; Subcontract Proposal Audits

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 

[[Page 2635]]
Acquisition Regulations Council have agreed on a final rule to amend 
the Federal Acquisition Regulation (FAR) to add two additional examples 
of when field pricing support audits of subcontract proposals may be 
appropriate. This regulatory action was not subject to Office of 
Management and Budget review under Executive Order 12866, dated 
September 30, 1993.

EFFECTIVE DATE: March 26, 1996.

FOR FURTHER INFORMATION CONTACT:
Mr. Jeremy 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 FAC 90-37, 
FAR case 92-002.

SUPPLEMENTARY INFORMATION:

A. Background

    An amendment to the FAR was published in the Federal Register at 59 
FR 14457, March 28, 1994, as a proposed rule with a request for 
comments. Three responses were received. Each supported the proposed 
rule.

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 most contracts awarded to small entities are 
awarded on a competitive, fixed-price basis and certified cost or 
pricing data and field pricing support are not required.

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 Part 15

    Government procurement.

    Dated: January 11, 1996.
Edward C. Loeb,
Acting Director, Office of Federal Acquisition Policy.

    Therefore, 48 CFR Part 15 is amended as set forth below:

PART 15--CONTRACTING BY NEGOTIATION
    1. The authority citation for 48 CFR Part 15 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 15.806-3 is amended in paragraph (a)(3) by removing 
``or''; in paragraph (a)(4) by removing the period and inserting a 
semicolon; and by adding paragraphs (a) (5) and (6) to read as follows:
15.806-3  Field pricing reports.

    (a) * * *
    (5) The contractor or higher tier subcontractor has been cited for 
having significant estimating system deficiencies in the area of 
subcontract pricing, especially the failure to perform adequate cost 
analyses of proposed subcontract costs or to perform subcontract 
analyses prior to negotiation of the prime contract with the 
Government; or
    (6) A lower tier subcontractor has been cited as having significant 
estimating system deficiencies.
* * * * *
[FR Doc. 96-1021 Filed 1-25-96; 8:45 am]
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