[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]
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