[Federal Register Volume 64, Number 15 (Monday, January 25, 1999)]
[Proposed Rules]
[Pages 3786-3787]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-1513]



[[Page 3785]]

_______________________________________________________________________

Part III

Department of Defense

General Services Administration

National Aeronautics and Space Administration
_______________________________________________________________________



48 CFR Part 52



Federal Acquisition Regulation; Cost Accounting Standards Post-Award 
Notification; Proposed Rules

  Federal Register / Vol. 64, No. 15 / Monday, January 25, 1999 / 
Proposed Rules  

[[Page 3786]]



DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Part 52

[FAR Case 98-003]
RIN 9000-AI23


Federal Acquisition Regulation; Cost Accounting Standards Post-
Award Notification

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 reduce the subcontractor information 
that a contractor is required to provide to its cognizant contract 
administration office (CAO) when requesting the CAO to perform 
administration for Cost Accounting Standards (CAS) matters.

DATES: Comments should be submitted on or before March 26, 1999 to be 
considered in the formulation of a final rule.

ADDRESSES: Interested parties should submit written comments to: 
General Services Administration FAR Secretariat (MVR) Attn: Laurie 
Duarte 1800 F Street, NW, Room 4035 Washington, DC 20405.
    E-mail comments submitted over Internet should be addressed to: 
[email protected].
    Please cite FAR case 98-003 in all correspondence related to this 
case.

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 FAR case 98-003.

SUPPLEMENTARY INFORMATION:

A. Background

    Under 48 CFR 9903.202-8(a), the contractor or higher-tier 
subcontractor is responsible for administering the CAS requirements 
contained in its subcontracts. FAR 30.601(b) requires the contractor or 
subcontractor to transfer this responsibility to the cognizant 
administrative contracting officer (ACO). The clause at FAR 52.230-6, 
Administration of Cost Accounting Standards, contains the notification 
requirement that implements FAR 30.601(b).
    Without this delegation of CAS responsibility from the contractor 
or subcontractor to the cognizant ACO, the contractor or subcontractor 
would be required to expend significant resources to oversee the CAS 
system for each of its subcontractors that are subject to CAS. 
Accordingly, it is essential that FAR 30.601(b) be retained. Since 
paragraph (e)(2) of FAR clause 52.230-6 is the only mechanism for 
notifying the cognizant ACO of the CAS administration delegation, it is 
essential that this post-award notification requirement also be 
retained. Although paragraph (e)(2) of FAR clause 52.230-6 should not 
be deleted in its entirety, this paragraph has been streamlined to 
include only the information essential to the CAS administration 
delegation. The coverage currently contained in paragraph (e)(2)(iv) is 
proposed for deletion because any changes in the subcontractor's cost 
accounting practices will be reported directly by the subcontractor to 
the subcontractor's cognizant contract administration office under the 
applicable subcontractor CAS solicitation clause and/or CAS subcontract 
clause(s) requirements.
    If respondents are aware of any alternatives for post-award 
notification that would comply with FAR 30.601(b) but be less 
burdensome to contractors and subcontractors, they may include their 
alternatives with public comments on the proposed 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

    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 
contracts and subcontracts with small businesses are exempt from all 
CAS requirements in accordance with 48 CFR 9903.201-1(b)(3). An Initial 
Regulatory Flexibility Analysis has, therefore, not been performed. 
Comments are invited from small businesses and other interested 
parties. Comments from small entities concerning the affected FAR 
subpart 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 98-003), in correspondence.

C. Paperwork Reduction Act

    The Paperwork Reduction Act (44 U.S.C. 3501, et seq.) is deemed to 
apply because the proposed rule revises existing information collection 
requirements, resulting in a decrease in the estimated burden. 
Accordingly, a request for amendment of information collection 
requirements under approved Office of Management and Budget (OMB) 
Control Number 9000-0129 will be submitted to OMB under 44 U.S.C. 3501, 
et seq., at the final rule stage. The proposed rule decreases the 
collection requirements currently approved under OMB Control Number 
9000-0129, since the rule deletes the requirement to submit certain 
information at FAR 52.230-6(e)(2)(iv).

Annual Reporting Burden

    Public reporting burden for this collection of information is 
estimated to average .33 hours per response, including the time for 
reviewing instruction, searching existing data sources, gathering and 
maintaining the data needed, and completing and reviewing the 
collection of information.
    The annual reporting burden is estimated as follows: Estimated 
number of respondents: 271; Responses per respondent: 2; Average burden 
per response: 0.33; Total burden hours: 179; Frequency of report: On 
occasion.

D. Request for Comments Regarding Paperwork Burden

    Members of the public are invited to comment on the recordkeeping 
and information collection requirements and estimates set forth above. 
Please send comments to: Office of Information and Regulatory Affairs, 
Office of Management and Budget, Attention: Mr. Peter N. Weiss, FAR 
Desk Officer, New Executive Office Building, Room 10102, 725 17th 
Street, NW., Washington, DC 20503.
    Also send a copy of any comments to the FAR Secretariat at the 
address shown under ADDRESSES. Please cite the corresponding OMB 
Clearance Number in all correspondence related to the estimate.

List of Subjects in 48 CFR Part 52

    Government procurement.

    Dated: January 19, 1999.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.

    Therefore, it is proposed that 48 CFR Part 52 be amended as set 
forth below:

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

    1. The authority citation for 48 CFR Part 52 continues to read as 
follows:


[[Page 3787]]


    Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42 
U.S.C. 2473(c).

    2. Section 52.230-6 is amended by revising the date of the clause 
and paragraph (e) of the clause to read as follows:


52.230-6  Administration of Cost Accounting Standards.

* * * * *

Administration of Cost Accounting Standards (Date)

* * * * *
    (e) For all subcontracts subject to the clauses at FAR 52.230-2, 
52.230-3, or 52.230-5--
    (1) So state in the body of the subcontract, in the letter of 
award, or in both (self-deleting clauses shall not be used);
    (2) Include the substance of this clause in all negotiated 
subcontracts; and
    (3) Within 30 days after award of the subcontract, submit the 
following information to the Contractor's cognizant contract 
administration office for transmittal to the contract administration 
office cognizant of the subcontractor's facility:
    (i) Subcontractor's name and subcontract number.
    (ii) Dollar amount and date of award.
    (iii) Name of Contractor making the award.
* * * * *
[FR Doc. 99-1513 Filed 1-22-99; 8:45 am]
BILLING CODE 6820-EP-P