[Federal Register Volume 63, Number 119 (Monday, June 22, 1998)] [Rules and Regulations] [Page 34073] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 98-16115] [[Page 34073]] ----------------------------------------------------------------------- DEPARTMENT OF DEFENSE GENERAL SERVICES ADMINISTRATION NATIONAL AERONAUTICS AND SPACE ADMINISTRATION 48 CFR Part 16 [FAC 97-05; FAR Case 97-042; Item IV] RIN 9000-AI01 Federal Acquisition Regulation; Limits on Fee for Cost-Plus- Incentive-Fee and Cost-Plus-Award-Fee Contracts AGENCIES: Department of Defense (DoD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA). ACTION: Final rule. ----------------------------------------------------------------------- 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 clarify fee limitations pertaining to cost-reimbursement contracts. 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: August 21, 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 Mr. Ralph DeStefano, Procurement Analyst, at (202) 501-1758. Please cite FAC 97-05, FAR case 97-042. SUPPLEMENTARY INFORMATION: A. Background This final rule amends FAR Part 16 to clarify fee limitations pertaining to cost-reimbursement contracts. Federal Acquisition Circular 97-02, FAR Part 15 Rewrite, published as a final rule on September 30, 1997 (62 FR 51224), eliminated non-statutory fee limitations for cost-plus-incentive-fee and cost-plus-award-fee contracts. This final rule makes conforming amendments to FAR Part 16. B. Regulatory Flexibility Act The final rule does not constitute a significant FAR revision within the meaning of FAR 1.501 and Pub. L. 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 97-05, FAR case 97-042), 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 16 Government procurement. Dated: June 11, 1998. Edward C. Loeb, Director, Federal Acquisition Policy Division. Therefore, 48 CFR Part 16 is amended as set forth below: PART 16--TYPES OF CONTRACTS 1. The authority citation for 48 CFR Part 16 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). 16.301-3 [Amended] 2. Section 16.301-3 is amended by removing paragraph (a)(3). 3. Section 16.306 is amended by revising paragraph (c) to read as follows: 16.306 Cost-plus-fixed-fee contracts. * * * * * (c) Limitations. No cost-plus-fixed-fee contract shall be awarded unless the contracting officer complies with all limitations in 15.404- 4(c)(4)(i) and 16.301-3. * * * * * 16.405-2 [Amended] 4. Section 16.405-2 is amended at the end of paragraph (c)(1) by adding ``and''; by removing paragraph (c)(2) and redesignating paragraph (c)(3) as (c)(2). [FR Doc. 98-16115 Filed 6-19-98; 8:45 am] BILLING CODE 6820-EP-P