[Federal Register Volume 83, Number 121 (Friday, June 22, 2018)]
[Rules and Regulations]
[Pages 29040-29041]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-13463]



48 CFR Parts 1843 and 1852

RIN 2700-AE44

NASA Federal Acquisition Regulation Supplement: Removal of 
Reference to the Shared Savings Policy and Associated Clause (NFS Case 

AGENCY: National Aeronautics and Space Administration.

ACTION: Direct final rule.


SUMMARY: NASA is issuing a final rule to amend the NASA Federal 
Acquisition Regulation (FAR) Supplement (NFS) to remove reference to 
the Shared Savings policy and associated clause.

DATES: This final rule is effective August 21, 2018. Comments due on or 
before July 23, 2018. If adverse comments are received, NASA will 
publish a timely withdrawal of the rule in the Federal Register.

ADDRESSES: Submit comments identified by NFS Case 2018-N008, using any 
of the following methods:
    [cir] Federal eRulemaking Portal: http://www.regulations.gov. 
Submit comments via the Federal eRulemaking portal by searching for 
``NFS Case 2018-N008''. Select the link ``Comment Now'' that 
corresponds with ``NFS Case 2018-N008''. Follow the instructions 
provided on the screen. Please include your name, company name (if 
any), and ``NFS Case 2018-N008'' on any uploaded files.''
    [cir] Email: [email protected]. Include ``NFS Case 2018-
N008'' in the subject line of the message.

Office of Procurement, Contract and Grant Policy Division, Suite 5H35, 
300 E. Street SW, Washington, DC 20456-0001. Telephone 202-358-0447.


I. Background

    NFS subpart 1843.71, Shared Savings, and associated clause 
1852.243-71, Shared Savings, were added to the NFS in 1997. The intent 
of the clause was to provide an incentive for contractors to identify 
and implement significant cost reduction programs. In return, they 
would be eligible for a share of the realized savings which resulted 
from those cost-cutting projects once they were approved by the 
contracting officer. Pursuant to Executive Order 13563, Improving 
Regulation and Regulatory Review, and Executive Order 13777, Enforcing 
the Regulatory Reform Agenda, NASA is continually reviewing existing 
regulations with the objective of reducing or removing any unnecessary, 
outdated and burdensome requirements that have outlived their intended 
purpose, NFS 1843.71, Shared Savings, and associated clause 1852.243-
71, Shared Savings were reviewed and recommended for removal from the 
NFS since they are duplicative of the FAR part 48, Value Engineering 
Change Proposal (VECP) program and associated clauses implemented under 
OMB Circular A-131, Value Engineering. The FAR VECP clauses provide the 

[[Page 29041]]

incentive to contactors as the NFS Shared Savings clause.
    NASA does not anticipate opposition to the changes or significant 
adverse comments. However, if the Agency receives significant adverse 
comment, it will withdraw this final rule by publishing a document in 
the Federal Register. A significant adverse comment is one that 
explains: (1) Why the final rule is inappropriate, including challenges 
to the rule's underlying premise or approach; or (2) why the final rule 
will be ineffective or unacceptable without change. In determining 
whether a comment necessitates withdrawal of this final rule, NASA will 
consider whether it warrants a substantive response in a notice and 
comment process.

II. Publication of This Final Rule for Public Comment Is Not Required 
by Statute

    Publication of proposed regulations, 41 U.S.C. 1707, is the statute 
which applies to the publication of the Federal Acquisition Regulation 
(FAR). Paragraph (a)(1) of the statute requires that a procurement 
policy, regulation, procedure or form (including an amendment or 
modification thereof) must be published for public comment if it 
relates to the expenditure of appropriated funds, and has either a 
significant effect beyond the internal operating procedures of the 
agency issuing the policy, regulation, procedure or form, or has a 
significant cost or administrative impact on contractors or offerors. 
This final rule is not required to be published for public comment 
because it makes nonsubstantive changes to Agency regulations that has 
minimal impact on contractors or offerors as there are value 
engineering proposal clauses prescribed in FAR part 48 that may be 
utilized in lieu of the NFS clause. The rule merely removes from the 
NFS policy and an associated clause that is outdated and redundant to 
policy that is already provided for in the FAR.

III. 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 is not a significant regulatory action and, therefore, was not 
subject to review under section 6(b) of E.O. 12866, Regulatory Planning 
and Review, dated September 30, 1993. This rule is not a major rule 
under 5 U.S.C. 804.

IV. Executive Order 13371

    This rule is not subject to Executive Order (E.O.) 13771, Reducing 
Regulation and Controlling Regulatory Costs, because this rule is not a 
significant regulatory action under E.O. 12866.

V. Regulatory Flexibility Act

    The Regulatory Flexibility Act does not apply to this rule because 
this final rule does not constitute a significant NFS revision within 
the meaning of FAR 1.501-1 and 41 U.S.C. 1707 and therefore does not 
require publication for public comment.

VI. Paperwork Reduction Act

    The rule does not contain any 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).

List of Subjects in 48 CFR Parts 1843 and 1852

    Government procurement.

Geoffrey Sage,
NASA FAR Supplement Manager.

    Accordingly, 48 CFR parts 1843 and 1852 are amended as follows:

1. The authority citation for parts 1843 and 1852 continues to read as 

    Authority: 51 U.S.C. 20113(a) and 48 CFR chapter 1.


Subpart 1843.71 [Removed]

2. Remove subpart 1843.71, consisting of sections 1843.7101 and 


1852.243-71   [Removed and Reserved]

3. Remove and reserve 1852.243-71.

[FR Doc. 2018-13463 Filed 6-21-18; 8:45 am]