[Federal Register Volume 76, Number 41 (Wednesday, March 2, 2011)]
[Proposed Rules]
[Pages 11414-11415]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-4528]


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DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Part 231


Defense Federal Acquisition Regulation Supplement; Independent 
Research and Development Technical Descriptions (DFARS Case 2010-D011)

AGENCY: Defense Acquisition Regulations System, Department of Defense 
(DoD).

ACTION: Proposed rule.

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SUMMARY: DoD is proposing to amend the Defense Federal Acquisition 
Regulation Supplement (DFARS) to require contractors to report 
independent research and development (IR&D) projects generating annual 
costs in excess of $50,000.

DATES: Comments on the proposed rule should be submitted in writing to 
the address shown below on or before May 2, 2011, to be considered in 
the formation of the final rule.

ADDRESSES: You may submit comments, identified by DFARS Case 2010-D011, 
using any of the following methods:
    Regulations.gov: http://www.regulations.gov.
    Submit comments via the Federal eRulemaking portal by inputting 
``DFARS Case 2010-D011'' under the heading ``Enter keyword or ID'' and 
selecting ``Search.'' Select the link ``Submit a Comment'' that 
corresponds with ``DFARS Case 2010-D011.'' Follow the instructions 
provided at the ``Submit a Comment'' screen. Please include your name, 
company name (if any), and ``DFARS Case 2010-D011'' on your attached 
document. Follow the instructions for submitting comments.
    E-mail: [email protected]. Include DFARS Case 2010-D011 in the subject 
line of the message.
    Fax: 703-602-0350.
    Mail: Defense Acquisition Regulations System, Attn: Mr. Mark 
Gomersall, OUSD (AT&L) DPAP (DARS), Room 3B855, 3060 Defense Pentagon, 
Washington, DC 20301-3060.
    Comments received generally will be posted without change to http://www.regulations.gov, including any personal information provided. To 
confirm receipt of your comment(s), please check http://www.regulations.gov approximately two to three days after submission to 
verify posting (except allow 30 days for posting of comments submitted 
by mail).

FOR FURTHER INFORMATION CONTACT: Mr. Mark Gomersall, 703-602-0302.

SUPPLEMENTARY INFORMATION:

I. Background

    This proposed rule revises requirements for reporting IR&D projects 
that generate annual costs in excess of $50,000 to the Defense 
Technical Information Center (DTIC). Beginning in the 1990s, DoD 
reduced its technical exchanges with industry, in part to ensure 
independence of IR&D. The result has been a loss of linkage between 
funding and technological purpose. The reporting requirements, as 
mandated by 10 U.S.C. 2372, will provide in-process information from 
DoD-sponsored IR&D projects to increase effectiveness by providing 
visibility into the technical content of industry IR&D activities to 
meet DoD needs and promote the technical prowess of the industry. 
Without the collection of this information, DoD will be unable to 
maximize the value of the IR&D funds the Department disburses without 
infringing on the independence of contractors to choose which 
technologies to pursue in IR&D programs.

II. Executive Order 12866, Regulatory Planning and Review

    This rule has been determined to be a significant regulatory action 
and therefore is 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.

III. Regulatory Flexibility Act

    DoD has prepared an initial regulatory flexibility analysis 
consistent with 5 U.S.C. 603. A copy of the analysis may be obtained 
from the point of contact specified herein. The analysis is summarized 
as follows:
    DoD does 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 reporting the IR&D projects utilizing the DTIC on-line input 
form does not require contractors to expend significant effort or cost. 
Furthermore, the threshold for reporting annual IR&D costs in excess of 
$50,000, as set forth in the rule, ensures that the IR&D project 
reporting requirements will not apply to a significant number of small 
entities.
    At this time, DoD is unable to estimate the number of small 
entities to which this rule will apply. Therefore, DoD invites comments 
from small business concerns and other interested parties on the 
expected impact of this rule on small entities.
    DoD will also consider comments from small entities concerning the 
existing regulations in subparts affected by this rule in accordance 
with 5 U.S.C. 610. Interested parties must submit such comments 
separately and should cite 5 U.S.C. 610 (DFARS Case 2010-D011) in 
correspondence.

IV. Paperwork Reduction Act

    The proposed rule contains new information collection requirements 
that require the approval of the Office of Management and Budget under 
the Paperwork Reduction Act (44 U.S.C. chapter 35). DoD invites public 
comments on the following aspects of the proposed rule: (a) Whether the 
proposed collection of information is necessary for the proper 
performance of the functions of DoD, including whether the information 
will have practical utility; (b) the accuracy of the estimate of the 
burden of the proposed information collection; (c) ways to enhance the 
quality, utility, and clarity of the information to be collected; and 
(d) ways to minimize the burden of the information collection on 
respondents, including the use of automated collection techniques or 
other forms of information technology. The following is a summary of 
the information collection requirement.
    Title: Defense Federal Acquisition Regulation Supplement (DFARS) 
Part 231, Contract Cost Principles and Procedures.
    Type of Request: New collection.
    Number of Respondents: 700.
    Responses per Respondent: 38.5.
    Annual Responses: 26,950.

[[Page 11415]]

    Average Burden per Response: 0.5 hours.
    Annual Burden Hours: 13,475.
    Needs and Uses: This information collection requires contractors to 
report IR&D projects generating annual costs in excess of $50,000. The 
information will provide in-process information from DoD-sponsored IR&D 
projects to increase the effectiveness by providing visibility into the 
technical content of industry IR&D activities to meet DoD needs. 
Without the collection of this information, DoD will be unable to 
maximize the value of the IR&D funds that it disburses without 
infringing on the independence of a contractor to choose which 
technologies to pursue in its independent research and development 
program.
    Affected Public: Businesses or other for-profit and not-for-profit 
institutions.
    Frequency: On occasion.
    Written comments and recommendations on the proposed information 
collection should be sent to Ms. Jasmeet Seehra at the Office of 
Management and Budget, Desk Officer for DoD, Room 10236, New Executive 
Office Building, Washington, DC 20503, or e-mail [email protected], with a copy to the Defense Acquisition Regulations 
System, Attn: Mr. Mark Goemrsall, OUSD (AT&L) DPAP (DARS), Room 3B855, 
3060 Defense Pentagon, Washington, DC 20301-3060. Comments can be 
received from 30 to 60 days after the date of this notice, but comments 
to OMB will be most useful if received by OMB within 30 days after the 
date of this notice.
    To request more information on this proposed information collection 
or to obtain a copy of the proposal and associated collection 
instruments, please write to the Defense Acquisition Regulations 
System, Attn: Mr. Mark Gomersall, OUSD (AT&L) DPAP (DARS), Room 3B855, 
3060 Defense Pentagon, Washington, DC 20301-3060, or e-mail 
[email protected]. Include DFARS Case 2010-D011 in the subject line of the 
message.

List of Subjects in 48 CFR Part 231

    Government procurement.

Ynette R. Shelkin,
Editor, Defense Acquisition Regulations System.
    Therefore, 48 CFR part 231 is proposed to be amended as follows:

PART 231--CONTRACT COST PRINCIPLES AND PROCEDURES

    1. The authority citation for 48 CFR part 231 continues to read as 
follows:

    Authority:  41 U.S.C. 1303 and 48 CFR chapter 1.

    2. Amend section 231.205-18 by adding paragraph (c)(iii)(C) and 
revising the introductory text of paragraph (c)(iv) to read as follows:


231.205-18  Independent research and development and bid and proposal 
costs.

* * * * *
    (c) * * *
    (iii) * * *
    (C) For a contractor's annual IR&D costs in excess of $50,000 to be 
allowable, the IR&D projects generating the costs must be reported to 
the Defense Technical Information Center (DTIC) using the DTIC's on-
line input form and instructions. The inputs must be updated at least 
annually and when the project is completed. Copies of the input and 
updates must be made available for review by the cognizant 
administrative contracting officer (ACO) and the cognizant Defense 
Contract Audit Agency auditor to support the allowability of the costs.
    (iv) For major contractors, the cognizant ACO or corporate ACO 
shall--
* * * * *
[FR Doc. 2011-4528 Filed 3-1-11; 8:45 am]
BILLING CODE 5001-08-P