[Federal Register Volume 65, Number 15 (Monday, January 24, 2000)]
[Unknown Section]
[Page 3762]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-1589]



[[Page 3761]]

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

Part II





Department of Defense





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





General Services Administration





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





National Aeronautics and Space Administration





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



48 CFR Parts 43 and 52



Federal Acquisition Regulation; Time-and-Materials or Labor-Hours; 
Proposed Rule

  Federal Register / Vol. 65, No. 15 / Monday, January 24, 2000 / 
Proposals  

[[Page 3762]]



DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 43 and 52

[FAR Case 1999-606]
RIN 9000-AI65


Federal Acquisition Regulation; Time-and-Materials or Labor-Hours

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

ACTION: Proposed rule.

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

SUMMARY: The Civilian Agency Acquisition Council and the Defense 
Acquisition Regulations Council (Councils) are proposing to amend the 
Federal Acquisition Regulation (FAR) to clarify the requirements 
regarding changes to time-and-materials and labor-hour contracts.

DATES: Interested parties should submit comments in writing on or 
before March 24, 2000 to be considered in the formulation of a final 
rule.

ADDRESSES: Submit written comments to: General Services Administration, 
FAR Secretariat (MVRS), 1800 F Street, NW, Room 4035, ATTN: Laurie 
Duarte, Washington, DC 20405.
    Submit e-mail comments via the Internet to:
    [email protected].

    Please submit comments only and cite FAR case 1999-606 in all 
correspondence related to this case.

FOR FURTHER INFORMATION CONTACT: The FAR Secretariat, Room 4035, GS 
Building, Washington, DC 20405, at (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 FAR case 1999-606.

SUPPLEMENTARY INFORMATION:

A. Background

    This proposed rule amends the FAR to conform the guidance in the 
clause at FAR 52.243-3, Changes--Time-and-Materials or Labor-Hours, 
with the guidance in Alternate II of the clause at FAR 52.243-1, 
Changes--Fixed Price, because most of the work performed under time-
and-materials or labor-hour contracts involves services.
    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 Councils do not expect this proposed rule 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 contractors are entitled to an equitable adjustment to contract 
terms and conditions if a change order is issued under the Changes 
clause of the contract. Therefore, we have not prepared an Initial 
Regulatory Flexibility Analysis. Comments are invited from small 
businesses and other interested parties. 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. (FAR case 
1999-606), in correspondence.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the proposed 
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 43 and 52

    Government procurement.

    Dated: January 18, 2000.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.
    Therefore, DoD, GSA, and NASA propose that 48 CFR parts 43 and 52 
be amended as set forth below:
    1. The authority citation for 48 CFR parts 43 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 43--CONTRACT MODIFICATIONS

    2. Amend section 43.205 by revising paragraph (c) to read as 
follows:


43.205  Contract clauses.

* * * * *
    (c) Insert the clause at 52.243-3, Changes--Time-and-Materials or 
Labor-Hours, in solicitations and contracts when a time-and-materials 
or labor-hour contract is contemplated. The contracting officer may 
vary the 30-day period in paragraph (c) of the clause according to 
agency procedures.
* * * * *

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

    3. Amend section 52.243-3 by--
    a. Revising the introductory text;
    b. Revising the date of the clause;
    c. Revising paragraph (a) of the clause;
    d. In the introductory text of paragraph (b) and in paragraph 
(b)(4) by removing ``shall'' and adding ``will'' in their place;
    e. In the first sentence of paragraph (c) by removing ``must'' and 
adding ``shall'' in its place; and
    f. Revising paragraph (d). The revised text reads as follows:


52.243-3  Changes--Time-and-Materials or Labor-Hours.

    As prescribed in 43.205(c), insert the following clause:

Changes--Time-and-Materials or Labor-Hours (Date)

    (a) The Contracting Officer may at any time, by written order, 
and without notice to the sureties, if any, make changes within the 
general scope of this contract in any one or more of the following:
    (1) Description of services to be performed.
    (2) Time of performance (i.e., hours of the day, days of the 
week, etc.).
    (3) Place of performance of the services.
    (4) Drawings, designs, or specifications when the supplies to be 
furnished are to be specially manufactured for the Government in 
accordance with the drawings, designs, or specifications.
    (5) Method of shipment or packing of supplies.
    (6) Place of delivery.
    (7) Amount of Government-furnished property.
* * * * *
    (d) Failure to agree to any adjustment will be a dispute under 
the Disputes clause. However, nothing in this clause excuses the 
Contractor from proceeding with the contract as changed. (End of 
clause)
[FR Doc. 00-1589 Filed 1-21-00; 8:45 am]
BILLING CODE 6820-EP-P