[Federal Register Volume 65, Number 80 (Tuesday, April 25, 2000)]
[Rules and Regulations]
[Pages 24320-24321]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-10132]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 12, 13, and 15

[FAC 97-17; FAR Case 1998-300 (98-300); Item II]
RIN 9000-AI45


Federal Acquisition Regulation; Determination of Price 
Reasonableness and Commerciality

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

ACTION: Final rule.

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[[Page 24321]]

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 implement Sections 
803 and 808 of the Strom Thurmond National Defense Authorization Act 
for Fiscal Year 1999 (Pub. L. 105-261).

DATES: Effective Date: April 25, 2000.
    Applicability Date: The FAR, as amended by this rule, is applicable 
to solicitations issued on or after April 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 Mr. Jeremy Olson at (202) 501-0692. Please cite FAC 
97-17, FAR case 1998-300.

SUPPLEMENTARY INFORMATION:

A. Background

    The Councils initiated this case to implement Sections 803 and 808 
of the Strom Thurmond National Defense Authorization Act for Fiscal 
Year 1999 (Pub. L. 105-261) as follows:
    (a) Section 803 of Public Law 105-261. (1) Paragraphs (a)(2)(A) 
through (a)(2)(C) of Section 803 of Pub. L. 105-261 require that the 
FAR provide specific guidance concerning--
    (i) The appropriate application and precedence of various price 
analysis tools;
    (ii) The circumstances under which contracting officers should 
require offerors of exempt commercial items to provide information 
other than cost or pricing data; and
    (iii) The role and responsibility of support organizations in 
determining price reasonableness.
    (2) Paragraph (a)(2)(D) of Section 803 is not implemented under 
this case.
    (b) Section 808 of Public Law 105-261. Section 808 of Public Law 
105-261 requires amending the FAR to--
    (1) Clarify procedures associated with obtaining information other 
than cost or pricing data;
    (2) Establish that offerors who fail to comply with requirements to 
provide the information shall be ineligible for award; and
    (3) Establish exceptions, as appropriate.
    The Councils published an interim rule in the Federal Register on 
September 24, 1999 (64 FR 51828). Five respondents submitted comments 
in response to the interim rule. The Councils considered all comments 
in the development of the final rule.
    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 prepared a Final Regulatory Flexibility Analysis 
(FRFA) consistent with 5 U.S.C. 604. Interested parties may obtain a 
copy of the FRFA from the FAR Secretariat. The FRFA is summarized as 
follows:

    The primary objective of this rule is to provide guidance on 
determining price reasonableness and commerciality, and to specify 
that offerors failing to comply with a requirement to provide 
certain information other than cost or pricing data are ineligible 
for award. There were no issues raised by the public in response to 
the Initial Regulatory Flexibility Analysis. The rule will apply to 
all offerors, large or small, that respond to solicitations for 
commercial items for which information other than cost or pricing 
data is required. Few, if any, offerors are expected to fail to 
comply with the requirements to provide information other than cost 
or pricing data. The rule does not impose any new reporting or 
recordkeeping requirements. There are no significant alternatives to 
the rule that would accomplish the stated objectives yet further 
reduce impact on small entities. The rule includes only FAR text 
revisions required to implement the statute cited herein.

    The FAR Secretariat has submitted a copy of the FRFA to the Chief 
Counsel for Advocacy of the Small Business Administration.

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 12, 13, and 15

    Government procurement.

    Dated: April 13, 2000.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.

Interim Rule Adopted as Final With Change

    Accordingly, DoD, GSA, and NASA adopt the interim rule amending 48 
CFR parts 12, 13, and 15, which was published in the Federal Register 
on September 24, 1999 (64 FR 51828), as a final rule with the following 
change:

PART 15--CONTRACTING BY NEGOTIATION

    1. The authority citation for 48 CFR parts 12, 13, and 15 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).


15.403-3  [Amended]

    2. Amend section 15.403-3 at the end of paragraph (c)(1) by 
removing ``(see 15.403-3(a)(1))'' and adding ``(see 15.404-1)'' in its 
place.

[FR Doc. 00-10132 Filed 4-24-00; 8:45 am]
BILLING CODE 6820-EP-P