[Federal Register Volume 64, Number 247 (Monday, December 27, 1999)]
[Rules and Regulations]
[Pages 72444-72445]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-33433]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 4 and 42

[FAC 97-15; FAR Case 99-015; Item IV]
RIN 9000-AI56


Federal Acquisition Regulation; Deobligation Authority

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 establish 
deobligation of excess funds as one of the contract administration 
functions normally delegated to the contract administration office.

DATES: Effective Date: February 25, 2000.
    Applicability Date: The FAR, as amended by this rule, is applicable 
to solicitations issued on or after February 25, 2000.

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 97-15, FAR case 99-015.

SUPPLEMENTARY INFORMATION:

A. Background

    This final rule implements a recommendation of the Contract 
Closeout Working Integrated Process Team chartered by the Deputy 
Secretary of Defense under the Defense Reform Initiative Directive #32.
    The rule revises FAR 4.804-5 and 42.302 to establish deobligation 
of excess funds as one of the contract administration functions 
normally delegated to the contract administration office. In addition, 
the rule includes editorial revisions for plain language purposes.
    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 final rule does not constitute a significant FAR revision 
within the meaning of FAR 1.501 and Public Law 98-577, and publication 
for public comments is not required. However, the Councils will 
consider comments from small entities concerning the affected FAR 
subparts in accordance with 5 U.S.C. 610. Interested parties must 
submit such comments separately and should cite 5 U.S.C. 601, et seq. 
(FAC 97-15, FAR case 99-015), in correspondence.

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.

[[Page 72445]]

List of Subjects in 48 CFR Parts 4 and 42:

    Government procurement.

    Dated: December 20, 1999.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.

    Therefore, DoD, GSA, and NASA amend 48 CFR parts 4 and 42 as set 
forth below:
    1. The authority citation for 48 CFR parts 4 and 42 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 4--ADMINISTRATIVE MATTERS

    2. In section 4.804-5, revise the section heading, the introductory 
text of paragraph (a), and paragraph (a)(15); and amend the 
introductory text of paragraphs (b) and (c) by removing ``shall'' and 
inserting ``must'' in its place. The revised text reads as follows:


4.804-5  Procedures for closing out contract files.

    (a) The contract administration office is responsible for 
initiating (automated or manual) administrative closeout of the 
contract after receiving evidence of its physical completion. At the 
outset of this process, the contract administration office must review 
the contract funds status and notify the contracting office of any 
excess funds the contract administration office might deobligate. When 
complete, the administrative closeout procedures must ensure that
* * * * *
    (15) Contract funds review is completed and excess funds 
deobligated.
* * * * *

PART 42--CONTRACT ADMINISTRATION AND AUDIT SERVICES

    3. In section 42.302, revise the introductory text of paragraph 
(a); and add paragraph (a)(70) to read as follows:


42.302  Contract administration functions.

    (a) The contracting officer normally delegates the following 
contract administration functions to a CAO. The contracting officer may 
retain any of these functions, except those in paragraphs (a)(5), 
(a)(9), and (a)(11) of this section, unless the cognizant Federal 
agency (see 42.001) has designated the contracting officer to perform 
these functions.
* * * * *
    (70) Deobligate excess funds after final price determination.
* * * * *
[FR Doc. 99-33433 Filed 12-23-99; 8:45 am]
BILLING CODE 6820-EP-P