[Federal Register Volume 62, Number 173 (Monday, September 8, 1997)]
[Rules and Regulations]
[Pages 47154-47155]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-23657]


-----------------------------------------------------------------------

DEPARTMENT OF DEFENSE

48 CFR Part 231

[DFARS Case 95-D714]


Defense Federal Acquisition Regulation Supplement; Cost 
Principles

AGENCY: Department of Defense (DoD).

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: The Director of Defense Procurement has issued a final rule 
amending the Defense Federal Acquisition Regulation Supplement (DRARS) 
to implement provisions of the Federal Acquisition Streamlining Act of 
1994 pertaining to legislative lobbying costs.

EFFECTIVE DATES: September 8, 1997.

FOR FURTHER INFORMATION CONTACT:
Ms. Sandra G. Haberlin, PDUSD (A&T) DP (DAR), IMD 3D139, 3062 Defense 
Pentagon, Washington, DC 20301-3062. Telephone (703) 602-0131; telefax 
(703) 602-0350. Please cite DFARS Case 95-D714.

SUPPLEMENTARY INFORMATION: 

A. Background

    This final rule implements Section 7202 of the Federal Acquisition 
Streamlining Act of 1994 (Pub. L. 103-355). Section 7202 prohibits the 
expenditure of funds to assist any DoD contractor in preparing any 
material, report, list, or analysis, with respect to the actual or 
projected economic or employment impact in a particular State or 
congressional district of an

[[Page 47155]]

acquisition program for which all research, development, testing, and 
evaluation has not been completed.
    A proposed rule was published on October 13, 1995 (60 FR 53320). No 
public comments were received. The final rule differs from the proposed 
rule by changing the statutory citation at 231.205-22 (a), 231.303(4), 
231.603(2), and 231.703(2) from ``10 U.S.C. 2247'' to ``10 U.S.C. 
2249.'' 10 U.S.C. 2247 was redesignated as 10 U.S.C. 2249 by Section 
4321 of the National Defense Authorization Act for Fiscal Year 1996 
(Public Law 104-106).

B. Regulatory Flexibility Act

    The Department of Defense certifies 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 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 this final rule 
does not impose any reporting or recordkeeping requirements that 
require Office of Management and Budget approval under 44 U.S.C. 3501, 
et seq.

List of Subjects in 48 CFR Part 231

    Government procurement.
Michele P. Peterson,
Executive Editor, Defense Acquisition Regulations Council.

    Therefore, 48 CFR Part 231 is amended as follows:
    1. The authority citation for 48 CFR Part 231 continues to read as 
follows:

    Authority: 41 U.S.C. 421 and 48 CFR Chapter 1.

PART 231--CONTRACT COST PRINCIPLES AND PROCEDURES

    2. Section 231.205-22 is revised to read as follows:


231.205-22  Legislative lobbying costs.

    (a) Preparing any material, report, list, or analysis on the actual 
or projected economic or employment impact in a particular State or 
congressional district of an acquisition program for which all 
research, development, testing, and evaluation has not been completed 
(10 U.S.C. 2249).
    3. Section 231.303 is amended by adding paragraph (4) to read as 
follows:


231.303  Requirements.

* * * * *
    (4) Under 10 U.S.C. 2249, the costs cited in 231.205-22(a) are 
unallowable.
    4. Section 231.603 is amended by designating the existing text as 
paragraph (1), and by adding paragraph (2) to read as follows:


231.603  Requirements.

* * * * *
    (2) Under 10 U.S.C. 2249, the costs cited in 231.205-22(a) are 
unallowable.
    5. Section 231.703 is amended by designating the existing text as 
paragraph (1), and by adding paragraph (2) to read as follows:


231.703  Requirements.

* * * * *
    (2) Under 10 U.S.C. 2249, the costs cited in 231.205-22(a) are 
unallowable.

[FR Doc. 97-23657 Filed 9-5-97; 8:45 am]
BILLING CODE 5000-04-M