[Federal Register Volume 61, Number 176 (Tuesday, September 10, 1996)]
[Proposed Rules]
[Page 47798]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-23030]



[[Page 47797]]


_______________________________________________________________________

Part IV

Department of Defense

General Services Administration

National Aeronautics and Space Administration
_______________________________________________________________________



Federal Acquisition Regulation; Performance-Based Payments; Proposed 
Rule

  Federal Register / Vol. 61, No. 176 / Tuesday, September 10, 1996 / 
Proposed Rules  

[[Page 47798]]



DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Part 52

[FAR Case 96-005]
RIN 9000-AH22


Federal Acquisition Regulation; Performance-Based Payments

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 Civilian Agency Acquisition Council and the Defense 
Acquisition Regulations Council are proposing to amend the Federal 
Acquisition Regulation (FAR) to address residual material and certain 
liability provisions at 52.232-32, Performance-Based Payments. 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 November 12, 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 96-005 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 96-005.

SUPPLEMENTARY INFORMATION:

A. Background

    The current FAR clause 52.232-32, Performance-Based Payments, 
addresses a method of contract financing, and was implemented in 
Federal Acquisition Circular 90-33, dated September 26, 1995, effective 
as of October 1, 1995. Paragraph (f), Title, of the clause was intended 
to be functionally equivalent to paragraph (d) of 52.232-16, Progress 
Payments, which is another type of contract financing. However, the 
topics of title to residual material and liability for government-
furnished property acquired under the contract, addressed in 52.232-
16(d)(6) and (7) of the Progress Payments clause, were inadvertently 
omitted from the Performance-Based Payments clause. This rule proposes 
to amend FAR 52.232-32 by adding paragraphs (f)(6) and (7) to address 
these topics.

B. Regulatory Flexibility Act

    The proposed changes are 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 performance based payments are rare. 
An Initial Regulatory Flexibility Analysis has, therefore, not been 
performed. Comments from small entities concerning the affected FAR 
section 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 96-005) 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 52

    Government procurement.

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

    Therefore, it is proposed that 48 CFR Part 52 be amended as set 
forth below:

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

    1. The authority citation for 48 CFR Part 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).

    2. Section 52.232-32 is amended by revising the clause date; 
redesignating the heading of paragraph (f)(1) as the heading of 
paragraph (f), and adding new paragraphs (f)(6) and (7) to read as 
follows:


52.232-32  Performance-Based Payments.

* * * * *

PERFORMANCE-BASED PAYMENTS (DATE)

* * * * *
    (f) Title. (1) * * *
* * * * *
    (6) When the Contractor completes all of the obligations under this 
contract, including liquidation of all performance-based payments, 
title shall vest in the Contractor for all property (or the proceeds 
thereof) not--
    (i) Delivered to, and accepted by, the Government under this 
contract; or
    (ii) Incorporated in supplies delivered to, and accepted by, the 
Government under this contract and to which title is vested in the 
Government under this clause.
    (7) The terms of this contract concerning liability for Government-
furnished property shall not apply to property to which the Government 
acquired title solely under this clause.
* * * * *
[FR Doc. 96-23030 Filed 9-9-96; 8:45 am]
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