[Federal Register Volume 63, Number 163 (Monday, August 24, 1998)]
[Proposed Rules]
[Page 45112]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-22594]



[[Page 45111]]

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Part II

Department of Defense

General Services Administration

National Aeronautics and Space Administration
_______________________________________________________________________



48 CFR Parts 15 and 37



Federal Acquisition Regulation; Evaluation of Proposals for 
Professional Services; Proposed Rule

  Federal Register / Vol. 63, No. 163 / Monday, August 24, 1998 / 
Proposed Rules  

[[Page 45112]]



DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 15 and 37

[FAR Case 97-038]
RIN 9000-AI07


Federal Acquisition Regulation; Evaluation of Proposals for 
Professional Services

AGENCIES: Department of Defense (DOD), General Services Administration 
(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Proposed rule.

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SUMMARY: The Civilian Agency Acquisition Council and the Defense 
Acquisition Regulations Council are proposing to amend the Federal 
Acquisition Regulation (FAR) to provide guidance on the evaluation of 
proposals that include uncompensated overtime hours. 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.

DATES: Comments should be submitted on or before October 23, 1998 to be 
considered in the formulation of a final rule.

ADDRESSES: Interested parties should submit written comments to: 
General Services Administration, FAR Secretariat (MVR), 1800 F Street, 
NW, Room 4035, Attn: Ms. Laurie Duarte, Washington, DC 20405.
    E-mail comments submitted over Internet should be addressed to: 
[email protected]. Please cite FAR case 97-038 in all 
correspondence related to this case.

FOR FURTHER INFORMATION CONTACT: The FAR Secretariat (MVR), Room 4035, 
1800 F Street, NW, Washington, DC 20405, (202) 501-4755, for 
information pertaining to status or publication schedules. For 
clarification of content, contact Mr. Jeremy F. Olson at (202) 501-
0692. Please cite FAR case 97-038.

SUPPLEMENTARY INFORMATION:

A. Background

    This proposed rule amends FAR Parts 15 and 37 to provide guidance 
on use of the provision at 52.237-10, Identification of Uncompensated 
Overtime. Item VII of Federal Acquisition Circular (FAC) 97-01 (62 FR 
44813, August 22, 1997) elevated guidance regarding uncompensated 
overtime from Part 237 of the Defense Federal Acquisition Regulation 
Supplement (DFARS) to FAR Part 37, and elevated a DFARS solicitation 
provision to FAR 52.237-10. However, no information regarding the 
evaluation of proposals that include uncompensated overtime was added 
to FAR Part 15 by FAC 97-01. This proposed rule adds guidance at FAR 
15.305 and 37.115 to address the evaluation of proposed uncompensated 
overtime hours.

B. Regulatory Flexibility Act

    This proposed rule is not expected to 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 the 
guidance proposed for inclusion in FAR Parts 15 and 37 is consistent 
with the existing policy pertaining to uncompensated overtime at FAR 
37.115 and 52.237-10. An Initial Regulatory Flexibility Analysis has, 
therefore, not been performed. Comments from small entities concerning 
the affected FAR subparts will be considered in accordance with 5 
U.S.C. 610 of the Act. Such comments must be submitted separately and 
should cite 5 U.S.C. 601, et seq. (FAR case 97-038), in correspondence.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the proposed 
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 15 and 37

    Government procurement.

    Dated: August 18, 1998.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.

    Therefore, it is proposed that 48 CFR Parts 15 and 37 be amended as 
set forth below:
    1. The authority citation for 48 CFR Parts 15 and 37 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 15--CONTRACTING BY NEGOTIATION

    2. Section 15.305 is amended in paragraph (a)(1) by adding a 
parenthetical as the penultimate sentence to read as follows:


Sec. 15.305  Proposal evaluation.

    (a) * * *
    (1) * * * (See 37.115 for uncompensated overtime evaluation.) * * *
* * * * *

PART 37--SERVICE CONTRACTING

    3. Section 37.115-2 is amended by adding paragraph (c) to read as 
follows:


Sec. 37.115-2  General policy.

* * * * *
    (c) Contracting officers shall ensure that the use of uncompensated 
overtime in contracts to acquire services on the basis of the number of 
hours provided will not degrade the level of technical expertise 
required to fulfill the [Government's requirements (see 15.305 for 
competitive negotiations and 15.404-1(d) for cost realism analysis). 
[When acquiring these services, contracting officers shall conduct a 
risk assessment and evaluate, for award on that basis, any proposals 
received that reflect factors such as--
    (1) Unrealistically low labor rates or other costs that may result 
in quality or service shortfalls; and
    (2) Unbalanced distribution of uncompensated overtime among skill 
levels and its use in key technical positions.

[FR Doc. 98-22594 Filed 8-21-98; 8:45 am]
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