[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]]

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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.

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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 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