[Federal Register Volume 67, Number 27 (Friday, February 8, 2002)]
[Rules and Regulations]
[Page 6115]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-2915]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Part 15

[FAC 2001-04; FAR Case 2001-013; 
Item III]
RIN 9000-AJ29


Federal Acquisition Regulation; Notification of Noncompliance 
With Cost Accounting Standards

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 remove the 
requirement for a contractor to notify the contracting officer when 
there is a cost accounting standard (CAS) noncompliance that has an 
immaterial cost impact.

DATES: Effective Date: February 20, 2002.

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) 501-3221. Please cite FAC 
2001-04, FAR case 2001-013.

SUPPLEMENTARY INFORMATION:

A. Background

    Contracting officers may require submission of cost or pricing data 
in the format indicated in Table 15-2, Instructions for Submitting 
Cost/Price Proposals When Cost or Pricing Data are Required, which is 
included in FAR 15.408, Solicitation provisions and contract clauses. 
This Table requires contractors to state whether they have been 
notified that they are or may be in noncompliance with the CAS. When 
there is a noncompliance and the cognizant Federal agency official 
determines the noncompliance has an immaterial cost impact, it is not 
necessary for the contractor to notify the contracting officer because 
the noncompliance will not impact the contract price. If the 
noncompliance is not corrected and it subsequently results in 
materially increased costs to the Government, the provisions of the 
applicable CAS clauses will continue to be enforced. Since the 
notification requirement is an inefficient use of resources and may 
cause an unnecessary delay, this rule deletes it.
    This is not a significant regulatory action, and therefore, was not 
subject to 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

    This 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 Part 15 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 2001-04, FAR case 2001-013), 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.

List of Subjects in 48 CFR Part 15

    Government procurement.

    Dated: February 1, 2002.
Al Matera,
Director, Acquisition Policy Division.
    Therefore, DoD, GSA, and NASA amend 48 CFR part 15 as set forth 
below:

    1. The authority citation for 48 CFR part 15 continues to read as 
follows:

PART 15--CONTRACTING BY NEGOTIATION

    Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42 
U.S.C. 2473(c).

    2. In section 15.408, amend Table 15-2, which follows paragraph 
(m)(4), by revising paragraph A.(8) of the General Instructions to read 
as follows:


15.408  Solicitation provisions and contract clauses.

* * * * *

Table 15-2--Instructions for Submitting Cost/Price Proposals When 
Cost or Pricing Data are Required

* * * * *

I. General Instructions

    A. * * *
    (8) Whether your organization is subject to cost accounting 
standards; whether your organization has submitted a CASB Disclosure 
Statement, and if it has been determined adequate; whether you have 
been notified that you are or may be in noncompliance with your 
Disclosure Statement or CAS (other than a noncompliance that the 
cognizant Federal agency official has determined to have an immaterial 
cost impact), and, if yes, an explanation; whether any aspect of this 
proposal is inconsistent with your disclosed practices or applicable 
CAS, and, if so, an explanation; and whether the proposal is consistent 
with your established estimating and accounting principles and 
procedures and FAR Part 31, Cost Principles, and, if not, an 
explanation;
* * * * *
[FR Doc. 02-2915 Filed 2-7-02; 8:45 am]
BILLING CODE 6820-EP-P