[Federal Register Volume 61, Number 145 (Friday, July 26, 1996)]
[Rules and Regulations]
[Pages 39188-39189]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-18498]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 1, 3, 4, 13, 31, 52, and 53

[FAC 90-40; FAR Case 93-009; Item I]
RIN 9000-AG83


Federal Acquisition Regulation; Contingent Fee Representation

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 amending 
the Federal Acquisition Regulation (FAR) to delete the provision 
requiring an offeror to provide a contingent fee representation and 
agreement and to submit a statement of contingent or other fees. 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: September 24, 1996.

FOR FURTHER INFORMATION CONTACT: Mr. Ralph DeStefano 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 90-40, FAR case 93-009.

SUPPLEMENTARY INFORMATION:

A. Background

    FAR 3.404(b) requires the contracting officer to insert the 
provision at 52.203-4, Contingent Fee Representation and Agreement, in 
all solicitations, with six exceptions. The provision requires offerors 
to provide a contingent fee representation as requested by the 
contracting officer. When the representation is answered affirmatively, 
the offeror must also provide a completed Standard Form (SF) 119, 
Statement of Contingent or Other Fees, or a signed statement indicating 
the SF 119 was previously submitted to the same contracting office. A 
proposed rule was published in the Federal Register at 60 FR 57140, 
November 13, 1995. This final rule revises FAR 3.404 to remove the 
requirement for the solicitation provision and removes the accompanying 
sections 3.405 through 3.408 which deal with the SF 119. FAR 3.409 and 
3.410 have been renumbered.

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 within the meaning of the Regulatory 
Flexibility Act, 5 U.S.C. 601, et seq., because there is a slight 
beneficial impact on small entities since offerors will no longer be 
required to provide contingent fee representations and agreements or to 
submit statements of contingent or other fees. However, the underlying 
policy pertaining to contingent fee arrangements has not changed.

C. Paperwork Reduction Act

    The Paperwork Reduction Act (Pub. L. 96-511) is deemed to apply 
because the final rule eliminates a previously approved information 
collection requirement under Office of Management and Budget (OMB) 
number 9000-0003, Statement of Contingent or Other Fees (SF 119). 
Accordingly, a request for elimination of the information collection 
requirement is being submitted to OMB.

List of Subjects in 48 CFR Parts 1, 3, 4, 13, 31, 52, and 53

    Government procurement.

    Dated: July 16, 1996.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.

    Therefore, 48 CFR Parts 1, 3, 4, 13, 31, 52, and 53 are amended as 
set forth below:-
    1. The authority citation for 48 CFR Parts 1, 3, 4, 13, 31, 52, and 
53 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 1--FEDERAL ACQUISITION REGULATIONS SYSTEM


1.106  [Amended]-

    2. Section 1.106 is amended in the list of ``FAR Segments'' and 
``OMB Control Numbers'' following the introductory text by removing 
``52.203-4'' and ``9000-0003'', and ``SF 119'' and ``9000-0003''.

PART 3--IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF 
INTEREST-

    3. Section 3.404 is revised to read as follows:


3.404  Contract clause.-

    The contracting officer shall insert the clause at 52.203-5, 
Covenant Against Contingent Fees, in all solicitations and contracts 
exceeding the simplified acquisition threshold, other than those for 
commercial items (see parts 2 and 12).


3.405 through 3.408-2  [Removed]-

    4. Sections 3.405 through 3.408-2 are removed.


3.409 and 3.410  [Redesignated as 3.405 and 3.406]-

    5. Sections 3.409 and 3.410 are redesignated as 3.405 and 3.406.-
    6. The newly designated 3.406 is amended by revising the first 
sentence to read as follows:


3.406  Records.-

    For enforcement purposes, agencies shall preserve any specific 
evidence of one or more of the violations in 3.405(a), together with 
all other pertinent data, including a record of actions taken. * * *

PART 4--ADMINISTRATIVE MATTERS-

    7. Section 4.803 is amended by revising paragraph (a)(11) to read 
as follows:


4.803  Contents of contract files.

* * * * *-
    (a) * * *-
    (11) Contractor's certifications and representatives.
* * * * *

PART 13--SIMPLIFIED ACQUISITION PROCEDURES


13.111  [Amended]-

    8. Section 13.111 is amended by removing paragraph (c) and 
redesignating paragraphs (d) through (j) as (c) through (i).

[[Page 39189]]

PART 31--CONTRACT COST PRINCIPLES AND PROCEDURES


31.205-38  [Amended]-

    9. Section 31.205-38 is amended at the end of paragraph (f) by 
removing the parenthetical ``(see 3.408-2)''.

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES


52.203-4  [Reserved]-

    10. Section 52.203-4 is removed and reserved.


52.203-5  [Amended]-

    11. Section 52.203-5 is amended in the introductory paragraph by 
removing ``3.404(c)'' and inserting ``3.404''.

PART 53--FORMS


53.203  [Amended]-

    12. Section 53.203 is amended by removing paragraph (a) and the 
designation of paragraph (b).


53.301-119  [Removed]-

    13. Section 53.301-119 is removed.

[FR Doc. 96-18498 Filed 7-25-96; 8:45 am]
BILLING CODE 6820-EP-P