[Federal Register Volume 63, Number 210 (Friday, October 30, 1998)]
[Rules and Regulations]
[Page 58599]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-28960]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Part 31

[FAC 97-09; FAR Case 97-036; Item VI]
RIN 9000-AH95


Federal Acquisition Regulation; Civil Defense Costs

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 delete the civil defense 
cost principle. 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: December 29, 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 97-09, FAR case 97-036.

SUPPLEMENTARY INFORMATION:

A. Background

    A proposed rule was published in the Federal Register on March 20, 
1998 (63 FR 13771). The proposed rule deleted the cost principle at FAR 
31.205-5, Civil defense costs. With the end of the Cold War, the 
special guidance provided in this cost principle is no longer deemed 
necessary. The acceptability of this type of costs will remain governed 
by the allocability, allowability, and reasonableness criteria 
discussed in FAR Part 31. The proposed rule is converted to a final 
rule without change.
    One comment was received in response to the proposed rule. This 
comment was considered in the development of the final rule.

B. Regulatory Flexibility Act

    The Department of Defense, the General Services Administration, and 
the National Aeronautics and Space Administration certify that this 
final rule will not 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 most contracts awarded 
to small entities use simplified acquisition procedures or are awarded 
on a competitive, fixed-price basis, and do not require application of 
the FAR cost principles.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the change to 
the FAR does 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 31

    Government procurement.

    Dated: October 22, 1998.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.

    Therefore, 48 CFR Part 31 is amended as set forth below:

PART 31--CONTRACT COST PRINCIPLES AND PROCEDURES

    1. The authority citation for 48 CFR Part 31 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).

31.205-5  [Removed and Reserved]

    2. Section 31.205-5 is removed and reserved.

[FR Doc. 98-28960 Filed 10-29-98; 8:45 am]
BILLING CODE 6820-EP-U