[Federal Register Volume 61, Number 120 (Thursday, June 20, 1996)]
[Proposed Rules]
[Page 31800]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-14840]




[[Page 31799]]


_______________________________________________________________________

Part X

Department of the Defense

General Services Administration

National Aeronautics and Space Administration
_______________________________________________________________________



48 CFR Part 31



Federal Acquisition Regulations; Foreign Selling Costs; Proposed Rule

  Federal Register / Vol. 61, No. 120 / Thursday, June 20, 1996 / 
Proposed Rules  

[[Page 31800]]



DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Part 31

[FAR Case 95-021]
RIN 9000-AH04


Federal Acquisition Regulation; Foreign Selling Costs

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 Department of Defense, General Services Administration and 
National Aeronautics and Space Administration are considering 
increasing the threshold for application of the foreign selling costs 
allowability ceiling from $2.5 million to $5.0 million. This regulatory 
action was not subject to Office of Management and Budget review under 
Executive Order 12866, dated September 30, 1993. This is not a major 
rule under 5 U.S.C. 804.

DATES: Comments should be submitted on or before August 19, 1996 to be 
considered in the formulation of a final rule.

ADDRESSES: Interested parties should submit written comments to: -
General Services Administration, FAR Secretariat (MVRS), 18th & F 
Streets, NW, Room 4037, Washington, DC 20405.
    Please cite FAR case 95-021 in all correspondence related to this 
case.

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 FAR case 95-021.

SUPPLEMENTARY INFORMATION:

A. Background

    The proposed FAR rule would revise FAR 31.205-38(c)(2)(ii) by 
increasing the threshold for applicability of the foreign selling costs 
allowability ceiling from $2.5 million to $5.0 million. The proposed 
rule also would revise FAR 31.205-38(c)(2)(iii) by deleting obsolete 
language. This action is being proposed in an effort to reduce 
contractors' administrative burden.

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 entities are awarded on a competitive, 
fixed-price basis and the cost principles do not apply. The cost 
principles only apply to contracts for which cost or pricing data has 
been submitted. 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 95-021), 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 Part 31

    Government procurement.

    Dated: June 6, 1996.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.

    Therefore, it is proposed that 48 CFR Part 31 be amended as set 
forth below:

PART 31--CONTRACT COST PRINCIPLES AND PROCEDURES

    1. The authority citation for 48 CFR Part 31 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).


31.205-38  [Amended]

    2. Section 31.205-38(c)(2)(i) is amended by removing the semicolon 
at the end and inserting '', and'' in its place; in (c)(2)(ii) by 
removing ``$2,500,000'' and inserting ``$5,000,000'' in its place, by 
removing the semicolon at the end and inserting a period in its place; 
and by removing paragraph (c)(2)(iii).

[FR Doc. 96-14840 Filed 6-19-96; 8:45 am]
BILLING CODE 6820-EP-P