[Federal Register Volume 63, Number 210 (Friday, October 30, 1998)]
[Rules and Regulations]
[Pages 58600-58601]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-28962]


-----------------------------------------------------------------------

DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 32 and 37

[FAC 97-09; FAR Case 97-302; Item VIII]
RIN 9000-AI09


Federal Acquisition Regulation; Service Contracts

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


[[Page 58601]]


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 expand the authority of the 
Department of Defense and the Coast Guard to enter into contracts that 
cross fiscal years.
    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 Mr. Jeremy F. Olson at (202) 501-0692. Please cite FAC 
97-09, FAR case 97-302.

SUPPLEMENTARY INFORMATION:

A. Background

    Section 801 of the National Defense Authorization Act for Fiscal 
Year 1998 (Pub. L. 105-85) amends 10 U.S.C. 2410a to authorize the 
Secretary of Defense, the Secretary of a military department, or the 
Secretary of Transportation with regard to the Coast Guard when not 
operating as a service in the Navy, to enter into a contract for 
procurement of severable services for a period that begins in one 
fiscal year and ends in the next fiscal year.

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 97-09, FAR case 
97-302), 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 32 and 37

    Government procurement.

    Dated: October 22, 1998.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.
    Therefore, 48 CFR Parts 32 and 37 are amended as set forth below:
    1. The authority citation for 48 CFR Parts 32 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 32--CONTRACT FINANCING

    2. Section 32.703-3 is revised to read as follows:


32.703-3  Contracts crossing fiscal years.

    (a) A contract that is funded by annual appropriations may not 
cross fiscal years, except in accordance with statutory authorization 
(e.g., 41 U.S.C. 11a, 31 U.S.C. 1308, 42 U.S.C. 2459a, 42 U.S.C. 3515, 
and paragraph (b) of this subsection), or when the contract calls for 
an end product that cannot feasibly be subdivided for separate 
performance in each fiscal year (e.g., contracts for expert or 
consultant services).
    (b) The head of an executive agency, except NASA, may enter into a 
contract, exercise an option, or place an order under a contract for 
severable services for a period that begins in one fiscal year and ends 
in the next fiscal year if the period of the contract awarded, option 
exercised, or order placed does not exceed one year (10 U.S.C. 2410a 
and 41 U.S.C. 253l). Funds made available for a fiscal year may be 
obligated for the total amount of an action entered into under this 
authority.

PART 37--SERVICE CONTRACTING

    3. Section 37.106 is amended by revising paragraph (b) to read as 
follows:


37.106  Funding and term of service contracts.

* * * * *
    (b) The head of an executive agency, except NASA, may enter into a 
contract, exercise an option, or place an order under a contract for 
severable services for a period that begins in one fiscal year and ends 
in the next fiscal year if the period of the contract awarded, option 
exercised, or order placed does not exceed one year (10 U.S.C. 2410a 
and 41 U.S.C. 253l). Funds made available for a fiscal year may be 
obligated for the total amount of an action entered into under this 
authority.
* * * * *
[FR Doc. 98-28962 Filed 10-29-98; 8:45 am]
BILLING CODE 6820-EP-U