[Federal Register Volume 61, Number 120 (Thursday, June 20, 1996)]
[Proposed Rules]
[Page 31796]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-14841]



      

[[Page 31795]]


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Part VIII

Department of the Defense

General Services Administration

National Aeronautics and Space Administration
_______________________________________________________________________



48 CFR Part 31



Federal Acquisition Regulation; Independent Research and Development/
Bid and Proposal in Cooperative Arrangements; Proposed Rule

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

[[Page 31796]]



DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Part 31

[FAR Case 95-024]
RIN 9000-AH03


Federal Acquisition Regulation; Independent Research and 
Development/Bid and Proposal in Cooperative Arrangements

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 proposing to 
amend Federal Acquisition Regulation (FAR) Part 31 to permit contractor 
contributions of independent research and development (IR&D) costs 
under NASA cooperative arrangements to be treated as allowable indirect 
costs. 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 95-024 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 95-024.

SUPPLEMENTARY INFORMATION:

A. Background

    NASA published a class deviation (interim rule) in the May 2, 1994, 
Federal Register (59 FR 22521) with the final rule published in the 
September 8, 1994, Federal Register (59 FR 46359). The class deviation 
eliminates the prohibition at FAR 31.205-18(e) against treatment of 
contractor IR&D contributions under NASA cooperative arrangements as 
allowable indirect costs. This proposed FAR rule would eliminate the 
need for the NASA class deviation.

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 
FAR case 95-024 in correspondence.

C. Paperwork Reduction Act-

    The Paperwork Reduction Act (Pub. L. 96-511) does not apply because 
the proposed rule does 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).

    2. Section 31.205-18(e) is revised to read as follows:


31.205-18  Independent research and development and bid and proposal 
costs.

* * * * *-
    (e) Cooperative arrangements. IR&D costs may be incurred by 
contractors working jointly with one or more non-Federal entities 
pursuant to a cooperative arrangement (for example, joint ventures, 
limited partnerships, teaming arrangements, and collaboration and 
consortium arrangements). IR&D costs may also include costs contributed 
by contractors in performing cooperative research and development 
agreements, or similar arrangements, entered into under
    (1) Section 12 of the Stevenson-Wydler Technology Transfer Act of 
1980 (15 U.S.C. 3710(a));
    (2) Sections 203(c) (5) and (6) of the National Aeronautics and 
Space Act of 1958, as amended (42 U.S.C. 2473(c) (5) and (6));
    (3) 10 U.S.C. 2371 for the Defense Advanced Research Projects 
Agency, or
    (4) Other equivalent authority. IR&D costs incurred by a contractor 
pursuant to these types of cooperative arrangements should be 
considered as allowable IR&D costs if the work performed would have 
been allowed as contractor IR&D had there been no cooperative 
arrangement.

[FR Doc. 96-14841 Filed 6-19-96; 8:45 am]
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