[Federal Register Volume 83, Number 40 (Wednesday, February 28, 2018)]
[Rules and Regulations]
[Pages 8634-8635]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-04101]
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OFFICE OF MANAGEMENT AND BUDGET
Office of Federal Procurement Policy
48 CFR Part 9903
Cost Accounting Standards: Clarification of the Exemption From
Cost Accounting Standards for Firm-Fixed-Price Contracts and
Subcontracts Awarded Without Submission of Certified Cost or Pricing
Data
AGENCY: Office of Management and Budget, Office of Federal Procurement
Policy, Cost Accounting Standards Board.
ACTION: Final rule.
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SUMMARY: The Office of Federal Procurement Policy (OFPP), Cost
Accounting Standards (CAS) Board, is publishing, without change from
the proposed rule, a final rule revising the exemption from CAS for
firm-fixed-price (FFP) contracts and subcontracts awarded on the basis
of adequate price competition without submission of cost or pricing
data. This final rule clarifies that the exemption applies to FFP
contracts and subcontracts awarded on the basis of adequate price
competition without submission of certified cost or pricing data.
DATES: Effective date: March 30, 2018.
FOR FURTHER INFORMATION CONTACT: Ida Pham, Acting Staff Director, Cost
Accounting Standards Board (telephone: 202-881-9062; email:
[email protected]).
SUPPLEMENTARY INFORMATION:
A. Regulatory Process--Changes to 48 CFR Part 9903
The CAS Board's regulations and Standards are codified at 48 CFR
chapter 99. This final rule amends of a CAS Board regulation other than
a Standard, and as such is not subject to the statutorily prescribed
rulemaking process for the promulgation of a Standard at 41 U.S.C.
1502(c) [formerly, 41 U.S.C. 422(g)].
B. Background and Summary
In October 2011, the CASB issued a proposed rule to clarify the CAS
exemption provided by 48 CFR 9903.201-1(b)(15) (76 FR 61660). Since
2000, this provision has provided an exemption from CAS for FFP
contracts and subcontracts awarded on the basis of adequate price
competition without submission of cost or pricing data. In proposing to
add the word ``certified'' before ``cost or pricing data,'' the Board
explained that at the time the CAS rule was promulgated in 2000, the
term cost or pricing data was understood to mean certified cost or
pricing data. However, as a result of changes made to the Federal
Acquisition Regulation in 2010 by the Civilian Agency Acquisition
Council and the Defense Acquisition Regulations Council, the term could
also be read to mean cost or pricing data without the certification.
The Board sought to avoid confusion and provide clarity to the
government contractor community on its original intent, which was to
implement section 802 of the NDAA for FY 2000 (Pub. L. 106-65). Section
802 adopted the recommendation of the Cost Accounting Standards Board
Review Panel, which stated that when certified cost or pricing data
were not obtained for FFP contracts and subcontracts, the safeguards
provided by CAS were likewise not necessary. For additional background
on the proposed rule, go to (76 FR 61660).
Two comments were received in response to the proposed rule, both
of which expressed support for the proposed change. Accordingly, the
CAS Board is adopting and finalizing the proposed rule without change.
C. Paperwork Reduction Act
The Paperwork Reduction Act (44 U.S.C. Chapter 35, Subchapter I)
does not apply to this rulemaking, because this rule imposes no
additional paperwork burden on offerors, affected contractors and
subcontractors, or members of the public which requires the approval of
OMB under 44 U.S.C. 3501, et seq. The purpose of this rule is to
clarify the implementation of the ``Streamlined Applicability of Cost
Accounting Standards'' at Section 802 of National Defense Authorization
Act for Fiscal Year 2000. The records required by this final rule are
those normally maintained by contractors and subcontractors who claim
reimbursement of costs under Government contracts.
D. Executive Orders 12866 and 13771, the Congressional Review Act, and
the Regulatory Flexibility Act
This rule serves to clarify the elimination of certain
administrative requirements associated with the application and
administration of the Cost Accounting Standards by covered Government
contractors and subcontractors, consistent with the provisions of
``Streamlined Applicability of Cost Accounting Standards'' at Section
802 of National Defense Authorization Act for Fiscal Year 2000. In
addition, because the final rule will achieve greater consistency
between the CAS and the FAR, the rule promotes simplification for
contractors. The economic impact on contractors and subcontractors is,
therefore, expected to be minor. As a result, the CAS Board has
determined that this final rule will not result in the promulgation of
an ``economically significant rule'' under the provisions of Executive
Order 12866, that a regulatory impact analysis is not required, and the
requirements of E.O. 13771, Reducing Regulation and Controlling
Regulatory Costs, do not apply. For the same reason, this final rule is
not a ``major rule'' under the Congressional Review Act, 5 U.S.C.
Chapter 8. Finally, this final rule does not have a significant effect
on a substantial number of small entities because small businesses are
exempt from the application of the Cost
[[Page 8635]]
Accounting Standards. Therefore, this final rule does not require a
regulatory flexibility analysis under the Regulatory Flexibility Act of
1980, 5 U.S.C. Chapter 6.
List of Subjects in 48 CFR Part 9903
Cost accounting standards, Government procurement.
Lesley A. Field,
Acting Chair, Cost Accounting Standards Board.
For the reasons set forth in this preamble, chapter 99 of title 48
of the Code of Federal Regulations is amended as set forth below:
PART 9903--CONTRACT COVERAGE
0
1. The authority citation for part 9903 continues to read as follows:
Authority: Public Law 111-350, 124 Stat. 3677, 41 U.S.C. 1502.
Subpart 9903.2--CAS Program Requirements
0
2. Section 9903.201-1 is amended by revising paragraph (b)(15) to read
as follows:
9903.201-1 CAS applicability.
* * * * *
(b) * * *
(15) Firm-fixed-price contracts or subcontracts awarded on the
basis of adequate price competition without submission of certified
cost or pricing data.
[FR Doc. 2018-04101 Filed 2-27-18; 8:45 am]
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