[Federal Register Volume 64, Number 185 (Friday, September 24, 1999)]
[Rules and Regulations]
[Pages 51841-51842]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-24417]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 15 and 37

[FAC 97-14; FAR Case 97-038; Item VIII]
RIN 9000-AI07


Federal Acquisition Regulation; Evaluation of Proposals for 
Professional Services

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 (Councils) have agreed on a final rule 
amending the Federal Acquisition Regulation (FAR) to provide guidance 
on the evaluation of proposals that include uncompensated overtime 
hours.

EFFECTIVE DATE: November 23, 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 Mr. Jeremy F. Olson, Procurement Analyst, at (202) 
501-3221. Please cite FAC 97-14, FAR case 97-038.

SUPPLEMENTARY INFORMATION:

A. Background

    A final rule published as Item VII of Federal Acquisition Circular 
(FAC) 97-01 in the Federal Register on August 22, 1997 (62 FR 44813) 
elevated guidance regarding uncompensated overtime from the Defense 
Federal Acquisition Regulation Supplement (DFARS) Part

[[Page 51842]]

237 to FAR Part 37, and elevated a DFARS solicitation provision to FAR 
52.237-10, Identification of Uncompensated Overtime. However, the FAR 
rule in FAC 97-01 did not address the evaluation of proposals that 
include uncompensated overtime.
    Therefore, a proposed FAR rule was published in the Federal 
Register on August 24, 1998 (63 FR 45112), to add guidance at FAR 
15.305(a)(1) and FAR 37.115-2(c) on the evaluation of proposed 
uncompensated overtime hours. One respondent submitted comments in 
response to the proposed rule. The Councils considered the respondent's 
comments in the development of the final rule and converted the 
proposed rule to a final rule without change.
    This rule was not subject to Office of Management and Budget review 
under Section 6(b) of Executive Order 12866, Regulatory Planning and 
Review, dated September 30, 1993. This rule is not a major rule under 5 
U.S.C. 804.

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 the guidance added to 
FAR Parts 15 and 37 is consistent with the existing policy pertaining 
to uncompensated overtime at FAR 37.115 and 52.237-10.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the changes to 
the FAR do not impose information collection requirements that 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 15 and 37

    Government procurement.

    Dated: September 14, 1999.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.

    Therefore, DoD, GSA, and NASA amend 48 CFR Parts 15 and 37 as set 
forth below:
    1. The authority citation for 48 CFR Parts 15 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 15--CONTRACTING BY NEGOTIATION

    2. In section 15.305, amend paragraph (a)(1) by adding a 
parenthetical as the penultimate sentence to read as follows:


15.305   Proposal evaluation.

    (a) * * *
    (1) * * * (See 37.115 for uncompensated overtime evaluation.) * * *
* * * * *

PART 37--SERVICE CONTRACTING

    3. In section 37.115-2, add paragraph (c) to read as follows:


37.115-2   General policy.

* * * * *
    (c) Contracting officers must ensure that the use of uncompensated 
overtime in contracts to acquire services on the basis of the number of 
hours provided will not degrade the level of technical expertise 
required to fulfill the Government's requirements (see 15.305 for 
competitive negotiations and 15.404-1(d) for cost realism analysis). 
When acquiring these services, contracting officers must conduct a risk 
assessment and evaluate, for award on that basis, any proposals 
received that reflect factors such as:
    (1) Unrealistically low labor rates or other costs that may result 
in quality or service shortfalls; and
    (2) Unbalanced distribution of uncompensated overtime among skill 
levels and its use in key technical positions.

[FR Doc. 99-24417 Filed 9-23-99; 8:45 am]
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