[Federal Register Volume 61, Number 120 (Thursday, June 20, 1996)]
[Rules and Regulations]
[Pages 31621-31622]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-14522]



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DEPARTMENT OF DEFENSE
48 CFR Parts 16, 42, and 52

[FAC 90-39; FAR Case 94-011; Item VII]
RIN 9000-AG92


Federal Acquisition Regulation; Predetermined Indirect Cost Rates

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 
Acquisition Regulations Council have agreed on a final rule to amend 
the Federal Acquisition Regulation (FAR) to implement revisions to OMB 
Circular A-21 that permit predetermined indirect cost rates for 
educational institutions to be established for periods of up to four 
years. This regulatory action was not subject to Office of Management 
and Budget review under Executive Order 12866, dated September 30, 
1993, and is not a major rule under 5 U.S.C. 804.

EFFECTIVE DATE: August 19, 1996.

FOR FURTHER INFORMATION CONTACT: Mr. Ralph De Stefano 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 FAC 90-39, FAR case 94-011.

SUPPLEMENTARY INFORMATION:

A. Background

    On July 26, 1993, the Office of Management and Budget published 
revisions to OMB Circular A-21 (58 FR 39996) which include an increase 
in the period of time for which predetermined indirect cost rates for 
educational institutions may be applicable. The FAR is amended to 
permit use of predetermined indirect cost rates for educational 
institutions for periods of up to four years, in accordance with OMB 
circular A-21.

B. Regulatory Flexibility Act

    This final rule does not constitute a significant FAR revision 
within the meaning of FAR 1.501 and Public Law 98-577, and publication 
for public comment is not required. Therefore, the Regulatory 
Flexibility Act does not apply. However, comments from small entities 
concerning the affected FAR subparts will be considered in accordance 
with 5 U.S.C. 610. Such comments must be submitted separately and cite 
5 U.S.C. 601, et seq. (FAC 90-39, FAR case 94-011), in correspondence.

C. Paperwork Reduction Act

    The final rule does not impose any additional information 
collection requirements which require the approval of the Office of 
Management and Budget under 44 U.S.C. 3501, et seq. However, a request 
for approval of an extension of the existing information collection 
requirement concerning 9000-0069, Indirect Cost Rates, is being 
submitted to the Office of Management and Budget under 44 U.S.C. 3501, 
et seq.

List of Subjects in 48 CFR Parts 16, 42, and 52

    Government procurement.


[[Page 31622]]


    Dated: June 4, 1996.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.

    Therefore, 48 CFR Parts 16, 42, and 52 are amended as set forth 
below:
    1. The authority citation for 48 CFR Parts 16, 42, 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 16--TYPES OF CONTRACTS

    2. Section 16.307 is amended by adding a sentence to the end of 
paragraph (i) to read as follows:


16.307  Contract clauses.

* * * * *
    (i) * * * If the contract is a facilities contract, modify 
paragraph (c) by deleting the words ``Subpart 31.1'' and substituting 
for them ``section 31.106.''

PART 42--CONTRACT ADMINISTRATION

    3. Section 42.705-3 is amended by revising paragraphs (b)(4)(i) and 
(b)(6) to read as follows:


42.705-3  Educational institutions.

* * * * *
    (b) * * *
    (4)(i) If predetermined rates are to be used and no rates have been 
previously established for the institution's current fiscal year, the 
agency shall obtain from the institution a proposal for predetermined 
rates.
* * * * *
    (6) Predetermined indirect cost rates shall be applicable for a 
period of not more than four years. The agency shall obtain the 
contractor's proposal for new predetermined rates sufficiently in 
advance so that the new rates, based on current data, may be promptly 
negotiated near the beginning of the new fiscal year or other period 
agreed to by the parties (see paragraphs (b) and (d) of the clause at 
52.216-15, Predetermined Indirect Cost Rates).
* * * * *

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

    4. Section 52.216-15 is amended by revising the introductory text 
and date of the clause; in the first sentence of paragraph (b) by 
removing the comma after the word ``year'' and adding ``(or other 
period specified in the Schedule),''; in the second sentence by 
revising the word ``rate'' to read ``rates'' and removing the period at 
the end of the sentence and inserting in its place ``or other period 
specified in the Schedule.''; in the third sentence by revising the 
word ``Negotiations'' to read ``Negotiation''; revising paragraph 
(d)(3); and in paragraph (g) by inserting after the word ``year'' the 
parenthetical ``(or other period specified in the Schedule)''. The 
revised text read as follows:


52.216-15  Predetermined Indirect Cost Rates.

    As prescribed in 16.307(i), insert the following clause:

PREDETERMINED INDIRECT COST RATES (AUG 1996)

* * * * *
    (d) * * *
    (3) the period for which the rates apply, and
* * * * *
[FR Doc. 96-14522 Filed 6-19-96; 8:45 am]
BILLING CODE 6820-EP-P