[Federal Register Volume 76, Number 148 (Tuesday, August 2, 2011)]
[Rules and Regulations]
[Pages 46206-46207]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-19105]



48 CFR Part 1816

RIN 2700-AD69

NASA Implementation of Federal Acquisition Regulation (FAR) Award 
Fee Language Revision

AGENCY: National Aeronautics and Space Administration.

ACTION: Final rule.


SUMMARY: NASA has adopted, without change, an interim final rule 
amending the NASA FAR Supplement (NFS) to implement the FAR Award Fee 
revision issued in Federal Acquisition Circular (FAC) 2005-46.

DATES: Effective Date: August 2, 2011.

Procurement, Contract Management Division (Suite 5G86); (202) 358-4483; 
e-mail: [email protected].


A. Background

    An interim rule was published on February 8, 2011 (76 FR 6696) 
implementing Federal Acquisition Circular (FAC) 2005-46 which 
significantly revised FAR Parts 16.305, 16.401, and 16.405-2 by 
incorporating new requirements relative to the use of award fee 
incentives. Specifically, the FAR rule implemented section 814 of the 
John Warner 2007 National Defense Authorization Act (NDAA) and section 
867 of the Duncan Hunter 2009 NDAA and which required agencies to:
    (1) Link award fees to acquisition objectives in the areas of cost, 
schedule, and technical performance;
    (2) Clarify that the base fee may be included in a cost plus award 
fee type contract at the discretion of the contracting officer;
    (3) Prescribe narrative ratings when making a percentage of award 
fee available;
    (4) Prohibit the issuance of award fees for a rating period if the 
contractor's performance is judged to be below satisfactory;
    (5) Conduct an analysis and consider the results of the analysis 
when determining whether to use an award fee type contract or not;
    (6) Include specific content in the award fee plans; and
    (7) Prohibit the rolling over of unearned award fees to subsequent 
rating periods.

NASA received no comments on the interim rule and has adopted the 
interim rule as a final rule without change.

B. Executive Orders 12866 and 13563

    Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess 
all costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). E.O. 
13563 emphasizes the importance of quantifying both costs and benefits, 
of reducing costs, of harmonizing rules, and of promoting flexibility. 
This rule is not a major rule under 5 U.S.C. 804.

C. Regulatory Flexibility Act

    NASA certifies that this final rule will not have a significant 
economic impact on a substantial number of small entities within the 
meaning of the Regulatory Flexibility Act, at 5 U.S.C. 601, et seq.,

[[Page 46207]]

because it merely implements the FAR Award Fee revisions and does not 
impose an economic impact beyond that addressed in the FAC 2005-46 
publication of the FAR final rule.

D. Paperwork Reduction Act

    This final rule does not contain any information collection 
requirements that require the approval of the Office of Management and 
Budget under 44 U.S.C. 3501, et seq. in accordance with the Paperwork 
Reduction Act.

List of Subjects in 48 CFR Part 1816

    Government procurement.

William P. McNally,
Assistant Administrator for Procurement.


    Accordingly, the interim rule amending 48 CFR part 1816 which was 
published at 76 FR 6696 on February 8, 2011, is adopted as a final rule 
without change.

[FR Doc. 2011-19105 Filed 8-1-11; 8:45 am]