[Federal Register Volume 63, Number 35 (Monday, February 23, 1998)]
[Rules and Regulations]
[Pages 9060-9061]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-4302]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 30 and 52

[FAC 97-04; FAR Case 97-025; Item XI]
RIN 9000-AH88


Federal Acquisition Regulation; Administrative Changes to Cost 
Accounting Standards (CAS) Applicability

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 conform to changes made to 
the Cost Accounting Standards (CAS) Board rules and regulations. 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.

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 97-025.

SUPPLEMENTARY INFORMATION:

A. Background

    On July 29, 1996, the CAS Board published an interim rule, 
Applicability of CAS Coverage, in the Federal Register (61 FR 39360). 
The CAS rule implemented Section 4205 of Public Law 104-106, the 
Clinger-Cohen Act of 1996, by revising the criteria for application of 
CAS to negotiated Federal contracts. The interim rule revised the 
solicitation provision at 48 CFR 9903.201-3, Cost Accounting Standards 
Notices and Certifications, and the contract clause at 48 CFR 9903.201-
4, Cost Accounting Standards--Educational Institutions, to reflect 
these changes.
    This final FAR rule amends Part 52 to conform the solicitation 
provision at FAR 52.230-1, Cost Accounting Standards Notices and 
Certification, and the contract clause at FAR 52.230-5, Cost Accounting 
Standards--Educational Institution, to the corresponding CAS Board 
contract clauses at 48 CFR 9903.201-3 and 9903.201-4. In addition, FAR 
30.101, CAS, is amended to reflect the current contents of the CAS 
Board regulations.

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 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 
97-025), 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 Parts 30 and 52

    Government procurement.

    Dated: February 13, 1998.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.

    Therefore, 48 CFR Parts 30 and 52 are amended as set forth below:
    1. The authority citation for 48 CFR Parts 30 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 30--COST ACCOUNTING STANDARDS ADMINISTRATION

    2. Section 30.101 is amended by revising paragraph (c) to read as 
follows:


30.101  Cost Accounting Standards.

* * * * *
    (c) The appendix to the FAR loose-leaf edition contains--
    (1) Cost Accounting Standards and Cost Accounting Standards Board 
Rules and Regulations Recodified by the Cost

[[Page 9061]]

Accounting Standards Board at 48 CFR Chapter 99; and
    (2) The following preambles:
    (i) Part I--Preambles to the Cost Accounting Standards Published by 
the Cost Accounting Standards Board.
    (ii) Part II--Preambles to the Related Rules and Regulations 
Published by the Cost Accounting Standards Board.
    (iii) Part III--Preambles Published under the FAR System.
* * * * *

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

    3. Section 52.230-1 is amended by revising the provision date and 
paragraph (a) to read as follows:


52.230-1  Cost Accounting Standards Notices and Certification.

* * * * *

Cost Accounting Standards Notices and Certification (Apr 1998)

* * * * *
    (a) Any contract in excess of $500,000 resulting from this 
solicitation will be subject to the requirements of the Cost 
Accounting Standards Board (48 CFR Chapter 99), except for those 
contracts which are exempt as specified in 48 CFR 9903.201-1.
* * * * *
    4. Section 52.230-5 is amended by revising the clause date and 
paragraphs (d)(1) and (d)(2); and by adding (d)(3) to read as follows:


52.230-5  Cost Accounting Standards--Educational Institution.

* * * * *

Cost Accounting Standards--Educational Institution (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 48 CFR 
9903.201-4 shall be inserted;
    (2) This requirement shall apply only to negotiated subcontracts 
in excess of $500,000; and
    (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. 98-4302 Filed 2-20-98; 8:45 am]
BILLING CODE 6820-EP-P