[Federal Register Volume 62, Number 163 (Friday, August 22, 1997)]
[Rules and Regulations]
[Pages 44828-44829]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-21500]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Part 31

[FAC 97-01; FAR Case 96-003; Item XV]
RIN 9000-AH35


Federal Acquisition Regulation; Local Government Lobbying Costs

AGENCIES: Department of Defense (DoD), General Services Administration 
(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Interim rule adopted as final.

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SUMMARY: The Civilian Agency Acquisition Council and the Defense 
Acquisition Regulations Council have agreed to convert the interim rule 
published as Item XI of Federal Acquisition Circular 90-43 on December 
20, 1996, to a final rule without change. The rule amends the Federal 
Acquisition Regulation (FAR) to make allowable the costs of any 
lobbying activities to influence local legislation in order to directly 
reduce contract cost, or to avoid material impairment of the 
contractor's authority to perform the contract. 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.

DATES: Effective October 21, 1997.

FOR FURTHER INFORMATION CONTACT: The FAR Secretariat, Room 4035, GS 
Building, Washington, DC 20405 (202) 501-4755 for information 
pertaining to status or publication schedules. For clarification of 
content, contact Ms.

[[Page 44829]]

Linda Nelson, Procurement Analyst, at (202) 501-1900. Please cite FAC 
97-01, FAR case 96-003.

SUPPLEMENTARY INFORMATION:

A. Background

    An interim rule was published on December 20, 1996 (61 FR 67424). 
The interim rule revised the cost principle at FAR 31.205-22, Lobbying 
and political activity costs, to provide an additional exemption from 
the provisions which make lobbying costs unallowable. This exemption 
makes allowable the costs of any lobbying activities to influence local 
legislation in order to directly reduce contract cost, or to avoid 
material impairment of the contractor's authority to perform the 
contract. The interim rule is converted to a final rule without change.
    Public comments were received from one source. The comments were 
considered in developing the final rule.

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 most contracts awarded 
to small entities use simplified acquisition procedures or are awarded 
on a competitive fixed-price basis, and do not require application of 
the cost principle contained in this rule.

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 31

    Government procurement.

Interim Rule Adopted as Final Without Change

    Accordingly, the interim rule amending 48 CFR Part 31, which was 
published at 61 FR 67424, December 20, 1996, is hereby adopted as final 
without change.

    Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42 
U.S.C. 2473(c).

    Dated: August 7, 1997.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.
[FR Doc. 97-21500 Filed 8-21-97; 8:45 am]
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