[Federal Register Volume 63, Number 243 (Friday, December 18, 1998)]
[Rules and Regulations]
[Page 70290]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-33519]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Part 46

[FAC 97-10; FAR Case 97-027; Item VII]
RIN 9000-AH94


Federal Acquisition Regulation; Mandatory Government Source 
Inspection

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 facilitate the elimination 
of unnecessary requirements for Government contract quality assurance 
at source. This rule deletes the mandatory requirement for Government 
contract quality assurance at source on all contracts that include a 
higher-level contract quality requirement, and for supplies requiring 
inspection that are destined for overseas shipment.

EFFECTIVE DATE: February 16, 1999.

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 Klein, Procurement Analyst, at (202) 501-
3775. Please cite FAC 97-10, FAR case 97-027.

SUPPLEMENTARY INFORMATION:

A. Background

    This final rule amends FAR 46.402 to eliminate unnecessary 
requirements for Government contract quality assurance at source. The 
rule eliminates mandatory Government source inspection under contracts 
that contain higher-level quality requirements or that cover supplies 
to be shipped overseas.
    A proposed rule was published in the Federal Register at 63 FR 
13770, March 20, 1998. Nine respondents submitted comments on the 
proposed rule. All comments were considered in the development of the 
final rule.
    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.

B. Regulatory Flexibility Act

    A Final Regulatory Flexibility Analysis (FRFA) has been prepared 
and submitted to the Chief Counsel for Advocacy of the Small Business 
Administration. The analysis is summarized as follows:

    No public comments were received in response to the Initial 
Regulatory Flexibility Analysis.
    We expect both large and small entities to experience a 
reduction in the administrative burden by eliminating unnecessary 
Government source inspection under contracts that contain higher-
level quality requirements or that cover supplies to be shipped 
overseas. DoD and civilian agencies administer the contracts of 
approximately 20,289 large businesses and 51,691 small entities. 
Approximately 20 percent have contracts that contain the clause at 
FAR 52.246-11, Higher level Contract Quality Requirement (Government 
Specification).
    There are no reporting, recordkeeping, or other compliance 
requirements likely to result from the rule.
    No significant negative economic impacts of the rule were 
identified during our analysis or during the public comment period. 
The rule is expected to reduce costs and administrative burdens for 
both contractors and the Government.
    We expect these revisions to contribute to an efficient and 
effective acquisition process. We initially considered making all of 
the requirements at FAR 46.402 discretionary but decided that this 
would be premature since a Defense Contract Management Command 
process action team reviewing source inspection and acceptance 
policies has not completed its review and made its final 
recommendations.

    A copy of the FRFA may be obtained from the FAR Secretariat.

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 46

    Government procurement.

    Dated: December 14, 1998.
Ralph DeStefano,
Acting Director, Federal Acquisition Policy Division.

    Therefore, 48 CFR Part 46 is amended as set forth below:

PART 46--QUALITY ASSURANCE

    1. The authority citation for 48 CFR Part 46 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).


46.402  [Amended]

    2. Section 46.402 is amended--
    a. By removing paragraphs (e) and (g);
    b. By redesignating paragraphs (f) and (h) as (e) and (f), 
respectively; and
    c. In the newly designated paragraph (e) by adding ``or'' at the 
end of the paragraph.

[FR Doc. 98-33519 Filed 12-16-98; 8:45 am]
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