[Federal Register Volume 62, Number 163 (Friday, August 22, 1997)]
[Rules and Regulations]
[Page 44829]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-21501]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Part 36

[FAC 97-01; FAR Case 97-005; Item XVI]
RIN 9000-AH63


Federal Acquisition Regulation; Independent Government Estimates-
Construction

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 increase the threshold for 
a mandatory independent Government estimate of construction costs and 
architect-engineer costs from $25,000 to $100,000. 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 Mr. Jack O'Neill, Procurement Analyst, at (202) 501-
3856. Please cite FAC 97-01, FAR case 97-005.

SUPPLEMENTARY INFORMATION:

A. Background

    This final rule amends FAR 36.203(a) and 36.605(a) to raise the 
threshold for a mandatory independent Government estimate of 
construction costs and architect-engineer costs from $25,000 to 
$100,000. The benefits of an independent Government estimate do not 
warrant the high cost of such effort to cover the small risk associated 
with modifications under $100,000. The change will reduce costs and 
streamline the acquisition procedures, permitting improved utilization 
of resources.

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 comment is not required. 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 97-01, FAR case 97-005), 
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 36

    Government procurement.

    Dated: August 7, 1997.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.

    Therefore, 48 CFR Part 36 is amended as set forth below:

PART 36--CONSTRUCTION AND ARCHITECT-ENGINEER CONTRACTS

    1. The authority citation for 48 CFR Part 36 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).


36.203  [Amended]

    2. Section 36.203 is amended in paragraph (a) by removing 
``$25,000'' and inserting ``$100,000'' in its place each time it 
appears.


36.605  [Amended]

    3. Section 36.605 is amended in paragraph (a) by removing 
``$25,000'' and inserting ``$100,000'' in its place.

[FR Doc. 97-21501 Filed 8-21-97; 8:45 am]
BILLING CODE 6820-EP-U