[Federal Register Volume 63, Number 35 (Monday, February 23, 1998)]
[Rules and Regulations]
[Pages 9053-9054]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-4296]
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 12 and 52
[FAC 97-04; FAR Case 97-020; Item V]
RIN 9000-AH89
Federal Acquisition Regulation; Applicability of Cost Accounting
Standards (CAS) Coverage
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 revise the criteria for
application of Cost Accounting Standards (CAS) to negotiated Government
contracts. This regulatory action was not subject to Office of
Management and Budget (OMB) review under Executive Order 12866, dated
September 30, 1993, and is not a major rule under 5 U.S.C. 804.
EFFECTIVE DATE: April 24, 1998.
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. Linda Nelson, Procurement Analyst, at (202) 501-
1900. Please cite FAC 97-04, FAR case 97-020.
SUPPLEMENTARY INFORMATION:
A. Background
On June 6, 1997, the CAS Board published a final rule,
Applicability of CAS Coverage, in the Federal Register (62 FR 31294).
The CAS rule implemented Section 4205 of Public Law 104-106, the
Clinger-Cohen Act, by exempting contracts and subcontracts for the
acquisition of commercial items from CAS requirements when these
contracts and subcontracts are firm-
[[Page 9054]]
fixed-price or fixed-price with economic price adjustment (provided
that the price adjustment is not based on actual costs incurred).
This final rule amends FAR Subpart 12.2, Special Requirements for
the Acquisition of Commercial Items, and the clauses at 52.230-2, Cost
Accounting Standards, and 52.230-3, Disclosure and Consistency of Cost
Accounting Practices, to conform the FAR to the revised CAS.
B. Regulatory Flexibility Act
This 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 comments is not required. However, comments from small
entities concerning the affected FAR subparts will be considered in
accordance with 5 U.S.C. 610. Such comments must be submitted
separately and should cite 5 U.S.C. 601, et seq. (FAC 97-04, FAR case
97-020), 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 OMB under 44
U.S.C. 3501, et seq.
List of Subjects in 48 CFR Parts 12 and 52
Government procurement.
Dated: February 13, 1998.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.
Therefore, 48 CFR Parts 12 and 52 are amended as set forth below:
1. The authority citation for 48 CFR Parts 12 and 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).
PART 12--ACQUISITION OF COMMERCIAL ITEMS
2. Section 12.214 is revised to read as follows:
12.214 Cost Accounting Standards.
Cost Accounting Standards (CAS) do not apply to contracts and
subcontracts for the acquisition of commercial items when these
contracts and subcontracts are firm-fixed-price or fixed-price with
economic price adjustment (provided that the price adjustment is not
based on actual costs incurred). See 48 CFR 30.201-1 for CAS
applicability to fixed-price with economic price adjustment contracts
and subcontracts for commercial items when the price adjustment is
based on actual costs incurred. When CAS applies, the contracting
officer shall insert the appropriate provisions and clauses as
prescribed in 48 CFR 30.201.
PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
3. Section 52.230-2 is amended by revising the clause date and
paragraph (d) to read as follows:
52.230-2 Cost Accounting Standards.
* * * * *
Cost Accounting Standards (Apr 1998)
* * * * *
(d) The Contractor shall include in all negotiated subcontracts
which the Contractor enters into, the substance of this clause, except
paragraph (b), and shall require such inclusion in all other
subcontracts, of any tier, including the obligation to comply with all
CAS in effect on the subcontractor's award date or if the subcontractor
has submitted cost or pricing data, on the date of final agreement on
price as shown on the subcontractor's signed Certificate of Current
Cost or Pricing Data. If the subcontract is awarded to a business unit
which pursuant to 48 CFR 9903.201-2 is subject to other types of CAS
coverage, the substance of the applicable clause set forth in
subsection 30.201-4 of the Federal Acquisition Regulation shall be
inserted. This requirement shall apply only to negotiated subcontracts
in excess of $500,000, except that the requirement shall not apply to
negotiated subcontracts otherwise exempt from the requirement to
include a CAS clause as specified in 48 CFR 9903.201-1.
(End of clause)
4. Section 52.230-3 is amended by revising the clause date and
paragraphs (d)(1), (2) and (3) to read as follows:
52.230-3 Disclosure and Consistency of Cost Accounting Practices.
* * * * *
Disclosure and Consistency of Cost Accounting Practices (Apr 1998)
* * * * *
(d) * * *
(1) If the subcontract is awarded to a business unit which
pursuant to 48 CFR 9903.201-2 is subject to other types of CAS
coverage, the substance of the applicable clause set forth in
subsection 30.201-4 of the Federal Acquisition Regulation shall be
inserted.
(2) This requirement shall apply only to negotiated subcontracts
in excess of $500,000.
(3) The requirement shall not apply to negotiated subcontracts
otherwise exempt from the requirement to include a CAS clause as
specified in 48 CFR 9903.201-1.
(End of clause)
[FR Doc. 98-4296 Filed 2-20-98; 8:45 am]
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