[Federal Register Volume 82, Number 237 (Tuesday, December 12, 2017)]
[Rules and Regulations]
[Pages 58350-58351]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-26712]



48 CFR Parts 604 and 642

[Public Notice 9777]
RIN 1400-AE06

Department of State Acquisition Regulation; Technical Amendment

AGENCY: Department of State.

ACTION: Final rule.


SUMMARY: The Department of State (DOS) is amending the Department of 
State Acquisition Regulation (DOSAR) to add notice that the Department 
has an agreement with the Defense Contract Audit Agency, and to provide 
a procedural correction.

DATES: This final rule is effective on January 11, 2018.

FOR FURTHER INFORMATION CONTACT: Ms. Colleen Kosar, Policy Division, 
Office of the Procurement Executive, A/OPE, 2201 C Street NW, Suite 
1060, State Annex Number 15, Washington, DC 20520. Telephone: 703-516-
1685. email: [email protected].

SUPPLEMENTARY INFORMATION: This document adds a new subpart 642.1, 
including section 642.101(b), to provide notice of the Department's 
agreement with the Defense Contract Audit Agency on the conduct of 
incurred cost audits for the Department's cost-reimbursement contracts. 
In addition, part 604 is amended to specify the office through which 
audits are coordinated, from the Office of the Inspector General to the 
Audit Team in the Office of Acquisitions Management's Quality Assurance 

Regulatory Findings

Administrative Procedure Act

    The Department is publishing this rule as a final rule, as a rule 
of agency procedure or practice.

Regulatory Flexibility, Unfunded Mandates, SBREFA

    The Department of State, in accordance with the Regulatory 
Flexibility Act (5 U.S.C. 605(b)), has reviewed this regulation and, by 
approving it, certifies that this rule will not have a significant 
economic impact on a substantial number of small entities. This 
determination was based on the fact that the amendment in this rule 
will not have any cost or administrative impact on offerors or 
contractors. This rule will not result in the expenditure by State, 
local, and tribal governments, in the aggregate, or by the private 
sector, of $100 million or more in any year and it will not

[[Page 58351]]

significantly or uniquely affect small governments. Therefore, no 
actions were deemed necessary under the provisions of the Unfunded 
Mandates Act of 1995. Finally, this rule is not a major rule as defined 
by the Small Business Regulatory Enforcement Act of 1996 (5 U.S.C. 801 
et seq.).

Executive Orders 12866, 13563 and 13771

    The Department of State does not consider this rule to be an 
``economically significant'' regulatory action under E.O. 12866. The 
Department has reviewed the regulation to ensure its consistency with 
the regulatory philosophy and principles set forth in Executive Orders 
12866 and 13563 and finds that the benefits of updating this rule 
outweigh any costs, which the Department assesses to be minimal. This 
final rule is not subject to the requirements of Executive Order 13771 
because this final rule is related to agency organization, management 
or personnel, and has been determined to be non-significant within the 
meaning of Executive Order 12866.

Executive Orders 13132 and 13175

    This rule will not have substantial direct effects on the States, 
on the relationship between the national government and the States, or 
on the distribution of power and responsibilities among the various 
levels of government. The Department has determined that this 
rulemaking will not have tribal implications, will not impose 
substantial direct compliance costs on Indian tribal governments, and 
will not pre-empt tribal law.

Paperwork Reduction Act

    The rule imposes no new or revised information collections under 
the Paperwork Reduction Act of 1995 (44 U.S.C. Chapter 35).

List of Subjects in 48 CFR Parts 604 and 642

    Government procurement.

    For the reasons stated in the preamble, the Department of State 
amends 48 CFR chapter 6 as follows:

1. The authority citation for 48 CFR parts 604 and 642 continues to 
read as follows:

    Authority: 22 U.S.C. 2651a, 40 U.S.C. 121(c) and 48 CFR chapter 


2. Amend section 604.804-70 by revising the second sentence of 
paragraph (d)(3) to read as follows:

604.804-70   Contract closeout procedures.

* * * * *
    (d) * * *
    (3) * * * Requests for audits, normally by the Defense Contract 
Audit Agency (DCAA) in accordance with the agreement DOS has with DCAA 
to conduct incurred cost audits, shall be submitted through the A/LM/
AQM/BOD/QA Audit Team (see 642.101(b)). * * *
* * * * *


3. Add subpart 642.1, consisting of section 642.101, to read as 

Subpart 642.1--Contract Audit Services

642.101   Contract audit responsibilities.

    (b) The Department has an interagency agreement with the Defense 
Contract Audit Agency (DCAA) to perform incurred cost audits on cost-
reimbursement contracts. DCAA audits are requested through the A/LM/
AQM/BOD/QA Audit Team.

Eric N. Moore,
Procurement Executive (Acting), Department of State.
[FR Doc. 2017-26712 Filed 12-11-17; 8:45 am]