[Federal Register Volume 61, Number 145 (Friday, July 26, 1996)]
[Rules and Regulations]
[Pages 39220-39221]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-18511]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Part 48

[FAC 90-40; FAR Case 96-315; Item XIV]
RIN 9000-AH12


Federal Acquisition Regulation; Value Engineering

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 revise the definition of 
value engineering and to require agencies to establish and maintain 
cost-effective value engineering procedures and processes. 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 26, 1996.

FOR FURTHER INFORMATION CONTACT: Mr. Peter O'Such (202) 501-1759 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 96-315.

SUPPLEMENTARY INFORMATION:

A. Background

    This final rule implements Section 4306 of the Federal Acquisition 
Reform Act of 1996 (Pub. L. 104-106). Section 4306 adds Section 36 to 
the Office of Federal Procurement Policy Act (41 U.S.C. 401, et seq.) 
to define value engineering and to establish Federal procurement policy 
that each agency shall establish and maintain cost-effective value 
engineering procedures and processes.

B. Regulatory Flexibility Act

    The 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 comments is not required. Therefore, the Regulatory 
Flexibility Act does not apply. However, comments from small entities 
concerning the affected FAR subpart 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 90-40, FAR case 96-315), in correspondence.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the 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 48

    Government procurement.

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

    Therefore, 48 CFR Part 48 is amended as set forth below:

PART 48--VALUE ENGINEERING

    1. The authority citation for 48 CFR Part 48 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 48.001 is amended by revising the definition ``Value 
engineering'' to read as follows:


48.001  Definitions.

* * * * *
    Value engineering, as used in this part, means an analysis of the 
functions of a program, project, system, product, item of equipment, 
building, facility, service, or supply of an executive agency, 
performed by qualified agency or contractor personnel, directed at 
improving performance, reliability, quality, safety, and life-cycle 
costs (Section 36 of the Office of Federal Procurement Policy Act, 41 
U.S.C. 401, et seq.).
* * * * *
    3. Section 48.102 is amended in paragraph (a) by adding a new first 
sentence to read as follows:

[[Page 39221]]

48.102  Policies.

    (a) As required by Section 36 of the Office of Federal Procurement 
Policy Act (41 U.S.C. 401, et seq.), agencies shall establish and 
maintain cost-effective value engineering procedures and processes. * * 
*
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[FR Doc. 96-18511 Filed 7-25-96; 8:45 am]
BILLING CODE 6820-EP-P