[Federal Register Volume 64, Number 185 (Friday, September 24, 1999)]
[Rules and Regulations]
[Pages 51844-51845]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-24421]


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

DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 36, 44, 49, and 52

[FAC 97-14; FAR Case 97-043; Item XII]
RIN 9000-AI22


Federal Acquisition Regulation; Cost-Reimbursement Architect-
Engineer Contracts

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

ACTION: Final rule.

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

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

[[Page 51845]]

on the applicability of certain clauses to cost-reimbursement 
architect-engineer (A-E) contracts.

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. Jack O'Neill, Procurement Analyst, at (202) 501-
3856. Please cite FAC 97-14, FAR case 97-043.

SUPPLEMENTARY INFORMATION:

A. Background

    The Councils published a proposed rule in the Federal Register at 
63 FR 71710, December 29, 1998, with comments requested by March 1, 
1999. Only one respondent submitted comments, and those comments were 
not substantive. This final rule is unchanged from the proposed rule. 
The rule amends the prescriptions for use of the following FAR clauses 
to include cost-reimbursement architect-engineer services contracts:

52.236-24  Work Oversight in Architect-Engineer Contracts
52.236-25  Requirements for Registration of Designers
52.244-4  Subcontractors and Outside Associates and Consultants 
(Architect-Engineer Services)
52.249-6  Termination (Cost-Reimbursement)

    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 rule only corrects 
certain clause prescriptions, and this correction will not bring about 
any increased costs to be borne by the contractor.

C. Paperwork Reduction Act

    The Paperwork Reduction Act (Pub. L. 104-13) applies because the 
final rule requires use of the clause at FAR 52.249-6, Termination 
(Cost-Reimbursement), in cost-reimbursement contracts for architect-
engineer services. The information collection requirements relating to 
termination clauses are approved and covered by OMB Control No. 9000-
0028.

List of Subjects in 48 CFR Parts 36, 44, 49, and 52

    Government procurement.

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

    Therefore, DoD, GSA, and NASA amend 48 CFR Parts 36, 44, 49, and 52 
as set forth below:
    1. The authority citation for 48 CFR Parts 36, 44, 49, and 52 
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 36--CONSTRUCTION AND ARCHITECT-ENGINEER CONTRACTS


36.609-3  [Amended]

    2. In section 36.609-3, remove ``fixed-price'' and add ``all'' in 
its place.


36.609-4  [Amended]

    3. In section 36.609-4, remove ``fixed-price''.

PART 44--SUBCONTRACTING POLICIES AND PROCEDURES


44.204  [Amended]

    4. In section 44.204, amend paragraph (b) by removing the words 
``fixed-price''.

PART 49--TERMINATION OF CONTRACTS

    5. In section 49.503, revise paragraphs (a)(1) and (b) to read as 
follows:


49.503   Termination for convenience of the Government and default.

    (a) Cost-reimbursement contracts--(1) General use. Insert the 
clause at 52.249-6, Termination (Cost-Reimbursement), in solicitations 
and contracts when a cost-reimbursement contract is contemplated, 
except contracts for research and development with an educational or 
nonprofit institution on a no-fee basis.
* * * * *
    (b) Insert the clause at 52.249-7, Termination (Fixed-Price 
Architect-Engineer), in solicitations and contracts for architect-
engineer services, when a fixed-price contract is contemplated.
* * * * *

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

    6. In section 52.236-25, revise the introductory text of the clause 
to read as follows:


52.236-25  Requirements for Registration of Designers.

    As prescribed in 36.609-4, insert the following clause:
* * * * *
[FR Doc. 99-24421 Filed 9-23-99; 8:45 am]
BILLING CODE 6820-EP-P