[Federal Register Volume 61, Number 62 (Friday, March 29, 1996)]
[Proposed Rules]
[Page 14216]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-7687]
[[Page 14215]]
_______________________________________________________________________
Part III
Department of Defense
General Services Administration
National Aeronautics and Space Administration
_______________________________________________________________________
48 CFR Part 31
Federal Acquisition Regulation; Contractor Overhead Certification;
Proposed Rule
Federal Register / Vol. 61, No. 62 / Friday, March 29, 1996 /
Proposed Rules
[[Page 14216]]
DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Part 31
[FAR Case 92-613]
RIN 9000-AG85
Federal Acquisition Regulation; Contractor Overhead Certification
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 (CAAC) and the Defense
Acquisition Regulations Council (DARC) are considering revisions to the
Federal Acquisition Regulation to clarify the allowability of certain
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 May 28, 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 92-613 in all correspondence related to this
case.
FOR FURTHER INFORMATION CONTACT: Mr. 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; telephone:
(202) 501-4755. Please cite FAR case 92-613.
SUPPLEMENTARY INFORMATION:
A. Background
The General Accounting Office (GAO), in its report GAO/NSIAD-93-79,
``CONTRACT PRICING: Unallowable Costs Charged to Defense Contracts,''
dated November 20, 1992, reported many instances where contractors had
proposed costs for gifts and entertainment that appeared to be
questionable. Some of those costs appeared to be unallowable under the
existing cost principles and others, while not specifically
unallowable, appeared to be unreasonable. GAO recommended that FAR
31.205-1, 31-205-13, and 31.205-14 be revised to eliminate confusion as
to which cost principle was controlling. The December 1992 OMB SWAT
summary report on civilian agency contracting practices also
recommended these cost principles be made more explicit.
This proposed rule removes from paragraph (f)(5) of the cost
principle at FAR 31.205-1, Public relations and advertising costs, the
parenthetical reference to other cost principles to eliminate any
confusion as to which cost principle governs. Other recommendations
made by GAO and the OMB SWAT concerning further revisions to the cost
principles have now been overtaken by the implementation of the Federal
Acquisition Streamlining Act of 1994 (FASA), Public Law 103-355. These
include revisions to FAR 31.205-13 and 31.205-14, which were published
as final in the Federal Register at 60 FR 42648, August 16, 1995, under
FAR Case 94-750, Entertainment, Gift, and Recreation Costs for
Contractor Employees. FAR Case 94-750 implements section 2192 of FASA.
Revisions to FAR Parts 42 and 52, requiring contractors to certify that
indirect cost rate proposals do not contain unallowable costs, were
published as a final rule in the Federal Register at 60 FR 42663,
August 16, 1995, under FAR Case 94-752, Contractor Overhead
Certification, which implements section 2151 of FASA.
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 businesses are awarded through sealed
bidding on a firm fixed-price basis. The cost principles apply only
where contracts are based on cost or pricing data. 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 section 610 of the Act. Such comments
must be submitted separately and should cite 5 U.S.C. 601, et seq.,
(FAR case 92-613), 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. 5 CFR
1320.7(j)(1) provides an exclusion for certifications when they entail
no burden other than necessary to identify the respondent, the date,
the respondent's address and the nature of the instrument.
List of Subjects in 48 CFR Part 31
Government procurement.
Dated: March 25, 1996.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.
Therefore, it is proposed that 48 CFR part 31 be amended as set
forth below:
1. The authority citation for 48 CFR part 31 continues to read as
follows:
PART 31--CONTRACT COST PRINCIPLES AND PROCEDURES
Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42
U.S.C. 2473(c).
31.205-1 [Amended]
2. Section 31.205-1(f)(5) is amended by removing the parenthetical.
[FR Doc. 96-7687 Filed 3-28-96; 8:45 am]
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