[Federal Register Volume 66, Number 150 (Friday, August 3, 2001)]
[Proposed Rules]
[Pages 40837-40838]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-19451]



[[Page 40837]]

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Part IV





Department of Defense

General Services Administration

National Aeronautics and Space Administration





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48 CFR Part 31



Federal Acquistion Regulation; Signing and Retention of High-Technology 
Workers; Proposed Rule

Federal Register / Vol. 66, No. 150 / Friday, August 3, 2001 / 
Proposed Rules

[[Page 40838]]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Part 31

[FAR Case 2000-014]
RIN 9000-AJ00


Federal Acquisition Regulation; Signing and Retention of High-
Technology Workers

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

ACTION: Withdrawal of proposed rule.

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SUMMARY: The Civilian Agency Acquisition Council and the Defense 
Acquisition Regulations Council (Councils) have agreed to withdraw 
Federal Acquisition Regulation (FAR) case 2000-014, Signing and 
Retention of High-Technology Workers, which was published in the 
Federal Register at 65 FR 82876, December 28, 2000. The rule proposed 
to explicitly make allowable signing and retention bonuses that defense 
contractors often must offer in order to recruit and retain workers 
that have critical technical skills.

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, Procurement Analyst, at (202) 501-
3221. Please cite FAR case 2000-014, withdrawal.

SUPPLEMENTARY INFORMATION:

A. Background:

    The proposed rule which was published in the Federal Register at 65 
FR 82876, December 28, 2000, proposed amending FAR 31.205-34, 
Recruitment costs, to explicitly allow signing bonuses to recruit, as 
well as retention bonuses to retain, employees with critical skills 
(such as scientists and engineers in the software and systems 
integration fields). The Councils viewed this revision as a 
clarification since the FAR currently does not disallow these type of 
expenses. In addition, the rule moved the current limitations on help-
wanted advertising costs from FAR 31.205-34(b) to the paragraph that 
addresses these costs (currently FAR 31.205-34(a)(1)), and made several 
related editorial changes.
    Some of the respondents to the Federal Register notice expressed 
concern that the rule was more restrictive than current FAR provisions, 
may result in decreased use of bonuses, and makes it even more 
difficult for Government contractors to compete with other employers 
for workers with critical technical skills. After review of the public 
comments, the Councils have concluded that the proposed rule is 
unnecessary, since recruitment and retention bonuses are already 
allowable costs on Government contracts, if reasonable and allocable.

List of Subjects in 48 CFR Part 31

    Government procurement.

    Dated: July 30, 2001.
Al Matera,
Director,, Acquisition Policy Division.
[FR Doc. 01-19451 Filed 8-2-01; 8:45 am]
BILLING CODE 6820-EP-P