[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. ----------------------------------------------------------------------- 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] BILLING CODE 6820-EP-U