Office of Federal Procurement Policy; Cost Accounting Standards Board; CAS Exemption for Contracts Executed and Performed Entirely Outside the United States, Its Territories, and Possessions, 53977-53979 [05-17949]
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Federal Register / Vol. 70, No. 176 / Tuesday, September 13, 2005 / Proposed Rules
B. What Is the Regulatory History of the
Nevada SIP?
The State of Nevada first submitted an
applicable SIP in January 1972, portions
of which EPA approved pursuant to
CAA § 110(c) on May 31, 1972 at 37 FR
10842. The SIP included various
sections of the NAC and the Nevada
Revised Statutes. Nevada subsequently
adopted and submitted many revisions
to these requirements, some of which
EPA approved on January 9, 1978 at 43
FR 1342, July 10, 1980 at 45 FR 46284,
August 27, 1981 at 46 FR 43142, and
June 18, 1982 at 47 FR 26387. Since
1982, EPA has approved very few
revisions to Nevada’s applicable SIP
despite numerous changes that have
been adopted locally.
C. What Is the Purpose of This Proposed
Rule?
The purpose of this proposal is to
bring the applicable SIP up to date. The
regulations we are proposing to approve
today address a few of the provisions
contained in the February 2005
submittal concerning definitions, sulfur
emission controls, and various burning
regulations.
II. EPA’s Evaluation and Action
A. How Is EPA Evaluating the
Regulations?
Generally, SIP regulations in
attainment areas must be enforceable
(see section 110(a) of the Act) and must
not relax existing requirements (see
sections 110(l) and 193). Guidance and
policy documents that we used to help
evaluate enforceability include the
following:
1. ‘‘Issues Relating to VOC Regulation
Cutpoints, Deficiencies, and
Deviations,’’ EPA, May 25, 1988 (the
Bluebook).
2. ‘‘Guidance Document for Correcting
Common VOC & Other Rule
Deficiencies,’’ EPA Region 9, August 21,
2001 (the Little Bluebook).
B. Do the Regulations Meet the
Evaluation Criteria?
We believe these regulations are
consistent with the relevant policy and
guidance regarding enforceability and
SIP relaxations. The TSD has more
information on our evaluation.
C. Public Comment and Final Action.
Because EPA believes the submitted
regulations fulfill all relevant
requirements, we are proposing to fully
approve them as described in section
110(k)(3) of the Act. We will accept
comments from the public on this
proposal for the next 30 days. Unless we
receive convincing new information
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15:33 Sep 12, 2005
Jkt 205001
during the comment period, we intend
to publish a final approval action that
will incorporate these regulations into
the federally enforceable SIP.
III. Statutory and Executive Order
Reviews
Under Executive Order 12866 (58 FR
51735, October 4, 1993), this proposed
action is not a ‘‘significant regulatory
action’’ and therefore is not subject to
review by the Office of Management and
Budget. For this reason, this action is
also not subject to Executive Order
13211, ‘‘Actions Concerning Regulations
That Significantly Affect Energy Supply,
Distribution, or Use’’ (66 FR 28355, May
22, 2001). This proposed action merely
proposes to approve state law as
meeting Federal requirements and
imposes no additional requirements
beyond those imposed by state law.
Accordingly, the Administrator certifies
that this proposed rule will not have a
significant economic impact on a
substantial number of small entities
under the Regulatory Flexibility Act (5
U.S.C. 601 et seq.). Because this rule
proposes to approve pre-existing
requirements under state law and does
not impose any additional enforceable
duty beyond that required by state law,
it does not contain any unfunded
mandate or significantly or uniquely
affect small governments, as described
in the Unfunded Mandates Reform Act
of 1995 (Pub. L. 104–4).
This proposed rule also does not have
tribal implications because it will not
have a substantial direct effect on one or
more Indian tribes, on the relationship
between the Federal Government and
Indian tribes, or on the distribution of
power and responsibilities between the
Federal Government and Indian tribes,
as specified by Executive Order 13175
(65 FR 67249, November 9, 2000). This
action also does not have Federalism
implications because it does 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, as specified in
Executive Order 13132 (64 FR 43255,
August 10, 1999). This action merely
proposes to approve a state rule
implementing a Federal standard, and
does not alter the relationship or the
distribution of power and
responsibilities established in the Clean
Air Act. This proposed rule also is not
subject to Executive Order 13045
‘‘Protection of Children from
Environmental Health Risks and Safety
Risks’’ (62 FR 19885, April 23, 1997),
because it is not economically
significant.
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53977
In reviewing SIP submissions, EPA’s
role is to approve state choices,
provided that they meet the criteria of
the Clean Air Act. In this context, in the
absence of a prior existing requirement
for the State to use voluntary consensus
standards (VCS), EPA has no authority
to disapprove a SIP submission for
failure to use VCS. It would thus be
inconsistent with applicable law for
EPA, when it reviews a SIP submission,
to use VCS in place of a SIP submission
that otherwise satisfies the provisions of
the Clean Air Act. Thus, the
requirements of section 12(d) of the
National Technology Transfer and
Advancement Act of 1995 (15 U.S.C.
272 note) do not apply. This proposed
rule does not impose an information
collection burden under the provisions
of the Paperwork Reduction Act of 1995
(44 U.S.C. 3501 et seq.).
List of Subjects in 40 CFR Part 52
Environmental protection, Air
pollution control, Intergovernmental
relations, Reporting and recordkeeping
requirements, Sulfur oxide.
Authority: 42 U.S.C. 7401 et seq.
Dated: August 31, 2005.
Laura Yoshii,
Acting Regional Administrator, Region IX.
[FR Doc. 05–18092 Filed 9–12–05; 8:45 am]
BILLING CODE 6560–50–P
OFFICE OF MANAGEMENT AND
BUDGET
48 CFR Part 9904
Office of Federal Procurement Policy;
Cost Accounting Standards Board;
CAS Exemption for Contracts
Executed and Performed Entirely
Outside the United States, Its
Territories, and Possessions
Cost Accounting Standards
Board, Office of Federal Procurement
Policy, OMB.
ACTION: Staff Discussion Paper (SDP);
request for comments.
AGENCY:
SUMMARY: The Cost Accounting
Standards (CAS) Board, Office of
Federal Procurement Policy, invites
public comments on the staff discussion
paper regarding a provision that
provides an exemption from CAS for
contracts that are executed and
performed entirely outside the United
States, its territories, and possessions.
DATES: Comments must be in writing
and must be received by November 14,
2005.
ADDRESSES: Due to delays in OMB’s
receipt and processing of mail,
E:\FR\FM\13SEP1.SGM
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53978
Federal Register / Vol. 70, No. 176 / Tuesday, September 13, 2005 / Proposed Rules
respondents are strongly encouraged to
submit comments electronically to
ensure timely receipt. Electronic
comments may be submitted to
casb2@omb.eop.gov. Please put the full
body of your comments in the text of the
electronic message and also as an
attachment readable in either MS Word
or Corel WordPerfect. Please include
your name, title, organization, postal
address, telephone number, and e-mail
address in the text of the message.
Comments may also be submitted via
facsimile to (202) 395–5105.
FOR FURTHER INFORMATION CONTACT:
David Capitano, Cost Accounting
Standards Board (telephone: 703–847–
7486).
SUPPLEMENTARY INFORMATION:
A. Regulatory Process
The Board’s rules, regulations and
Standards are codified at 48 CFR
Chapter 99. The Office of Federal
Procurement Policy Act, 41 U.S.C.
422(g)(1), requires the Board, prior to
the establishment of any new or revised
Cost Accounting Standard (CAS), to
complete a prescribed rulemaking
process. The process generally consists
of the following four steps:
1. Consult with interested persons
concerning the advantages,
disadvantages and improvements
anticipated in the pricing and
administration of government contracts
as a result of the adoption of a proposed
Standard (e.g., promulgation of a Staff
Discussion Paper.)
2. Promulgate an Advance Notice of
Proposed Rulemaking (ANPRM).
3. Promulgate a Notice of Proposed
Rulemaking (NPRM).
4. Promulgate a Final Rule.
This Staff Discussion Paper (SDP) is
issued by the Board as step one of the
four-step process. The Board notes that
the exemption at 48 CFR 9903.201–
1(b)(14) is not subject to the four-step
process required by 41 U.S.C. 422(g)(1)
because it is not a standard. Thus, there
is no requirement for the Board to
follow the four-step process for this
promulgation. Nevertheless, the Board
believes following the four-step process
is beneficial for this issue. However, the
issuance of this SDP is not intended to
establish any precedence for use of the
four-step process in promulgating CAS
rules and regulations other than
standards.
B. Background and Summary
The Office of Federal Procurement
Policy, Cost Accounting Standards
Board, is releasing a SDP regarding the
exemption at 48 CFR 9903.201–1(b)(14).
The purpose of the SDP is to solicit
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15:33 Sep 12, 2005
Jkt 205001
public views with respect to the Board’s
consideration of whether the exemption
at 48 CFR 9903.201–1(b)(14) should be
revised or eliminated. Respondents are
encouraged to identify and comment on
any issues not addressed in this SDP
that they believe are important to the
subject. This SDP reflects research
accomplished to date by the staff of the
Cost Accounting Standards Board in the
respective subject area.
C. Public Comments
Interested persons are invited to
participate by submitting data, views or
arguments with respect to this SDP,
including but not limited to the
questions listed in the SDP. All
comments must be in writing or by Email, and submitted to the mailing or Email addresses indicated in the
ADDRESSES section.
David H. Safavian,
Chair, Cost Accounting Standards Board.
Cost Accounting Standards Board Staff
Discussion Paper (SDP)
48 CFR 9903.201–1(b)(14)
Exemption for Contracts Entirely
Executed and Performed Outside the
United States
Background
Purpose
48 CFR 9903.201–1(b) provides a list
of categories of contracts and
subcontracts that are exempt from all
CAS requirements (CAS exemptions).
Paragraph (14) of this provision
provides an exemption for ‘‘Contracts
and subcontracts to be executed and
performed entirely outside the United
States, its territories, and possessions.’’
The purpose of this SDP is to explore
whether this exemption should be
revised or eliminated.
History of Exemption
The original CAS Board (the Board)
was established by Section 2168 of the
Defense Production Act of 1950 (DPA).
Section 2163 of the DPA, entitled
‘‘Territorial Application of Act,’’
provided that Sections 2061 through
2170 of the act ‘‘shall be applicable to
the United States, its territories and
possessions, and the District of
Columbia’’ (United States). Since the
provisions of the DPA were applicable
only within the United States, the CAS
Board’s rules, regulations and standards
were also applicable only within the
United States.
On May 29, 1973, Mr. Van Cleve,
General Counsel to the CAS Board,
wrote to Mr. Jack Kendig, DCAA,
reiterating the Board’s lack of authority
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Fmt 4702
Sfmt 4702
over contracts executed and performed
entirely outside the United States. These
comments were made during the CAS
Board’s early deliberations of what
contracts were, or were not, under its
purview:
‘‘As you are aware, the CASB has
previously recognized that its authorizing
legislation is a part of Defense Production
Act and that pertinent provisions of that Act
apply to the activities of the Board. We
consider that the above provision [Section
713 of the Act] does exclude from the Board’s
jurisdiction any contracts which are executed
and performed in their entirety outside of the
United States, its territories and possessions.
To the extent the Board has dealt with
foreign contracts, it has been assumed that
either the document was executed in the
United States or that some part of
performance occurred within the United
States which would, of course, bring the
contract within the scope of the Board’s
authority.’’ [Reference added for clarification]
On June 29, 1973, the Deputy
Assistant Secretary of Defense for
Procurement advised the CAS Board
that based on Mr. Van Cleve’s May 29,
1973 opinion, DOD was revising ASPR
3–1204 (Contract Clauses) to add
contracts and subcontracts executed and
performed entirely outside the United
States to the list of exclusions from
CAS. On September 24, 1973, Defense
Procurement Circular No. 115 amended
ASPR 3–1204 to provide for this CAS
exclusion. As amended, ASPR 3–1204
read as follows:
3–1204 Contract Clause. The Cost
Accounting Standards clause set forth in 7–
104.83 shall be inserted in all negotiated
contracts exceeding $100,000, except when
the price is based on established catalog or
market prices of commercial items sold in
substantial quantities to the general public or
is set by law or regulation. In addition to the
foregoing exceptions, the clause shall not be
included in the following contracts:
*
*
*
*
*
(vi) contracts which are executed and
performed in their entirety outside the
United States, its territories and possessions.
In 1980, the CAS Board ceased to
exist under the DPA. CAS
administration was undertaken by the
Department of Defense until the CAS
Board was re-established in 1988 under
the Office of Federal Procurement
Policy (OFPP) Act.
In 1991, the new CAS Board decided
to review the exemption from CAS for
contracts and subcontracts executed and
performed entirely outside the United
States, its territories and possessions at
FAR 30.201–1(14). The exemption was
retained and incorporated in the current
CAS Board’s recodified rules and
regulations at 48 CFR 9903.201–1(b)(14)
on April 17, 1992 (57 FR 14148).
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Federal Register / Vol. 70, No. 176 / Tuesday, September 13, 2005 / Proposed Rules
Key Questions for Consideration
The CAS Board is soliciting
comments on this issue from interested
parties. In particular, the Board is
interested in comments related to the
following issues:
1. Any statute that would require the
CAS Board to retain this exemption. If
any such statute exists, provide the
specific statute and language that
contain this requirement.
2. How this exemption does or does
not promote the CAS Board’s primary
objective of achieving ‘‘(1) an increased
degree of uniformity in cost accounting
practices among Government
contractors in like circumstances, and
(2) consistency in cost accounting
practices in like circumstances by
individual government contractor over
periods of time.’’
3. The significance of the location of
contract execution to CAS applicability.
4. The significance of the location of
contract performance to CAS
applicability.
5. The advantages and disadvantages
of exempting contracts and subcontracts
from CAS that are executed and
performed entirely outside the U.S.
6. Contracting situations in which the
exemption has historically been
utilized.
[FR Doc. 05–17949 Filed 9–12–05; 8:45 am]
BILLING CODE 3110–01–P
DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric
Administration
50 CFR Parts 600 and 622
[Docket No. 050729208–5208–01; I.D.
060805B]
RIN 0648–AP51
Fisheries of the Caribbean, Gulf of
Mexico, and South Atlantic;
Comprehensive Amendment to the
Fishery Management Plans of the U.S.
Caribbean
National Marine Fisheries
Service (NMFS), National Oceanic and
Atmospheric Administration (NOAA),
Commerce.
ACTION: Proposed rule; request for
comments.
AGENCY:
SUMMARY: NMFS issues this proposed
rule to implement a comprehensive
amendment prepared by the Caribbean
Fishery Management Council (Council)
to amend its Reef Fish, Spiny Lobster,
Queen Conch, and Coral Fishery
Management Plans (FMPs). The
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15:33 Sep 12, 2005
Jkt 205001
comprehensive amendment is designed
to ensure the FMPs are fully compliant
with the provisions of the MagnusonStevens Fishery Conservation and
Management Act (Magnuson-Stevens
Act). This proposed rule would redefine
the fishery management units for the
FMPs; establish seasonal closures;
impose gear restrictions and
requirements; revise requirements for
marking pots and traps; and prohibit the
filleting of fish at sea. In addition, the
comprehensive amendment would
establish biological reference points and
stock status criteria; establish rebuilding
schedules and strategies to end
overfishing and rebuild overfished
stocks; provide for standardized
collection of bycatch data; minimize
bycatch and bycatch mortality to the
extent practicable; designate essential
fish habitat (EFH) and EFH habitat areas
of particular concern (HAPCs); and
minimize adverse impacts on such
habitat to the extent practicable. The
intended effect of this proposed rule is
to achieve optimum yield in the
fisheries and provide social and
economic benefits associated with
maintaining healthy stocks.
DATES: Comments must be received no
later than 5 p.m., eastern time, on
September 28, 2005.
ADDRESSES: You may submit comments
on the proposed rule by any of the
following methods:
• E-mail: 0648–
AP51.Proposed@noaa.gov. Include in
the subject line of the e-mail comment
the following document identifier 0648–
AP51.
• Federal e-Rulemaking Portal: https://
www.regulations.gov. Follow the
instructions for submitting comments.
• Mail: Steve Branstetter, NMFS,
Southeast Regional Office, 263 13th
Avenue South, St. Petersburg, FL 33701.
• Fax: 727–824–5308, Attention: Steve
Branstetter.
Copies of documents supporting this
action may be obtained by contacting
the NMFS Southeast Regional Office at
the above address.
FOR FURTHER INFORMATION CONTACT:
Steve Branstetter, 727–824–5305; fax
727–824–5308; e-mail
Steve.Branstetter@noaa.gov.
SUPPLEMENTARY INFORMATION: The
fisheries for spiny lobster, queen conch,
reef fish, and corals and reef-associated
invertebrates in the exclusive economic
zone (EEZ) off Puerto Rico and of the
U.S. Virgin Islands are managed under
the respective fishery management
plans prepared by the Council. These
fishery management plans are
implemented under the authority of the
Magnuson-Stevens Act by regulations at
PO 00000
Frm 00007
Fmt 4702
Sfmt 4702
53979
50 CFR part 622. This proposed rule
would implement Amendment 2 to the
FMP for the Spiny Lobster Fishery,
Amendment 1 to the FMP for Queen
Conch Resources, Amendment 3 to the
FMP for the Reef Fish Fishery, and
Amendment 2 to the FMP for the Corals
and Reef Associated Plants and
Invertebrates of Puerto Rico and the U.S.
Virgin Islands, known collectively as
the Comprehensive Amendment to the
FMPs of the Caribbean.
Background
A notice of availability for the
comprehensive amendment was
published in the Federal Register on
June 16, 2005 (70 FR 35053). This
proposed rule and the comprehensive
amendment are intended to address
various requirements set forth in the
Magnuson-Stevens Act: (1) Assess and
specify the present and probable future
condition of, and the maximum
sustainable yield and optimum yield
from, fisheries; (2) specify objective and
measurable criteria for identifying when
a fishery is overfished; (3) end
overfishing and rebuild overfished
stocks, and prevent overfishing in
fisheries that are identified as
approaching an overfished condition;
(4) establish a standardized reporting
methodology to assess the amount and
type of bycatch occurring in the fishery
and implement conservation and
management measures that minimize
bycatch and bycatch mortality to the
extent practicable; and (5) identify,
describe, and designate EFH and EFHHAPCs for managed stocks, minimize to
the extent practicable adverse effects on
such habitat caused by fishing, and
identify other actions to encourage the
conservation and enhancement of such
habitat.
Provisions of This Proposed Rule
Revision of Fishery Management Units
(FMUs)
This proposed rule would redefine
the FMUs in all the Council FMPs.
FMUs define the specific species that
are to be the target of conservation and
management.
The proposed rule would remove
from the respective FMUs, species
found predominantly in the waters of
Puerto Rico or the U.S. Virgin Islands
(rather than in Federal waters). In
addition, those species for which data
are inadequate to establish a need for
conservation and management,
biological reference points, or stock
status determination criteria would
remain in the FMUs for data collection
purposes but would not be subject to
Federal regulation at this time. When
E:\FR\FM\13SEP1.SGM
13SEP1
]]>Agencies
[Federal Register Volume 70, Number 176 (Tuesday, September 13, 2005)]
[Proposed Rules]
[Pages 53977-53979]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-17949]
=======================================================================
-----------------------------------------------------------------------
OFFICE OF MANAGEMENT AND BUDGET
48 CFR Part 9904
Office of Federal Procurement Policy; Cost Accounting Standards
Board; CAS Exemption for Contracts Executed and Performed Entirely
Outside the United States, Its Territories, and Possessions
AGENCY: Cost Accounting Standards Board, Office of Federal Procurement
Policy, OMB.
ACTION: Staff Discussion Paper (SDP); request for comments.
-----------------------------------------------------------------------
SUMMARY: The Cost Accounting Standards (CAS) Board, Office of Federal
Procurement Policy, invites public comments on the staff discussion
paper regarding a provision that provides an exemption from CAS for
contracts that are executed and performed entirely outside the United
States, its territories, and possessions.
DATES: Comments must be in writing and must be received by November 14,
2005.
ADDRESSES: Due to delays in OMB's receipt and processing of mail,
[[Page 53978]]
respondents are strongly encouraged to submit comments electronically
to ensure timely receipt. Electronic comments may be submitted to
casb2@omb.eop.gov. Please put the full body of your comments in the
text of the electronic message and also as an attachment readable in
either MS Word or Corel WordPerfect. Please include your name, title,
organization, postal address, telephone number, and e-mail address in
the text of the message. Comments may also be submitted via facsimile
to (202) 395-5105.
FOR FURTHER INFORMATION CONTACT: David Capitano, Cost Accounting
Standards Board (telephone: 703-847-7486).
SUPPLEMENTARY INFORMATION:
A. Regulatory Process
The Board's rules, regulations and Standards are codified at 48 CFR
Chapter 99. The Office of Federal Procurement Policy Act, 41 U.S.C.
422(g)(1), requires the Board, prior to the establishment of any new or
revised Cost Accounting Standard (CAS), to complete a prescribed
rulemaking process. The process generally consists of the following
four steps:
1. Consult with interested persons concerning the advantages,
disadvantages and improvements anticipated in the pricing and
administration of government contracts as a result of the adoption of a
proposed Standard (e.g., promulgation of a Staff Discussion Paper.)
2. Promulgate an Advance Notice of Proposed Rulemaking (ANPRM).
3. Promulgate a Notice of Proposed Rulemaking (NPRM).
4. Promulgate a Final Rule.
This Staff Discussion Paper (SDP) is issued by the Board as step
one of the four-step process. The Board notes that the exemption at 48
CFR 9903.201-1(b)(14) is not subject to the four-step process required
by 41 U.S.C. 422(g)(1) because it is not a standard. Thus, there is no
requirement for the Board to follow the four-step process for this
promulgation. Nevertheless, the Board believes following the four-step
process is beneficial for this issue. However, the issuance of this SDP
is not intended to establish any precedence for use of the four-step
process in promulgating CAS rules and regulations other than standards.
B. Background and Summary
The Office of Federal Procurement Policy, Cost Accounting Standards
Board, is releasing a SDP regarding the exemption at 48 CFR 9903.201-
1(b)(14). The purpose of the SDP is to solicit public views with
respect to the Board's consideration of whether the exemption at 48 CFR
9903.201-1(b)(14) should be revised or eliminated. Respondents are
encouraged to identify and comment on any issues not addressed in this
SDP that they believe are important to the subject. This SDP reflects
research accomplished to date by the staff of the Cost Accounting
Standards Board in the respective subject area.
C. Public Comments
Interested persons are invited to participate by submitting data,
views or arguments with respect to this SDP, including but not limited
to the questions listed in the SDP. All comments must be in writing or
by E-mail, and submitted to the mailing or E-mail addresses indicated
in the ADDRESSES section.
David H. Safavian,
Chair, Cost Accounting Standards Board.
Cost Accounting Standards Board Staff Discussion Paper (SDP)
48 CFR 9903.201-1(b)(14)
Exemption for Contracts Entirely Executed and Performed Outside the
United States
Background
Purpose
48 CFR 9903.201-1(b) provides a list of categories of contracts and
subcontracts that are exempt from all CAS requirements (CAS
exemptions). Paragraph (14) of this provision provides an exemption for
``Contracts and subcontracts to be executed and performed entirely
outside the United States, its territories, and possessions.'' The
purpose of this SDP is to explore whether this exemption should be
revised or eliminated.
History of Exemption
The original CAS Board (the Board) was established by Section 2168
of the Defense Production Act of 1950 (DPA). Section 2163 of the DPA,
entitled ``Territorial Application of Act,'' provided that Sections
2061 through 2170 of the act ``shall be applicable to the United
States, its territories and possessions, and the District of Columbia''
(United States). Since the provisions of the DPA were applicable only
within the United States, the CAS Board's rules, regulations and
standards were also applicable only within the United States.
On May 29, 1973, Mr. Van Cleve, General Counsel to the CAS Board,
wrote to Mr. Jack Kendig, DCAA, reiterating the Board's lack of
authority over contracts executed and performed entirely outside the
United States. These comments were made during the CAS Board's early
deliberations of what contracts were, or were not, under its purview:
``As you are aware, the CASB has previously recognized that its
authorizing legislation is a part of Defense Production Act and that
pertinent provisions of that Act apply to the activities of the
Board. We consider that the above provision [Section 713 of the Act]
does exclude from the Board's jurisdiction any contracts which are
executed and performed in their entirety outside of the United
States, its territories and possessions.
To the extent the Board has dealt with foreign contracts, it has
been assumed that either the document was executed in the United
States or that some part of performance occurred within the United
States which would, of course, bring the contract within the scope
of the Board's authority.'' [Reference added for clarification]
On June 29, 1973, the Deputy Assistant Secretary of Defense for
Procurement advised the CAS Board that based on Mr. Van Cleve's May 29,
1973 opinion, DOD was revising ASPR 3-1204 (Contract Clauses) to add
contracts and subcontracts executed and performed entirely outside the
United States to the list of exclusions from CAS. On September 24,
1973, Defense Procurement Circular No. 115 amended ASPR 3-1204 to
provide for this CAS exclusion. As amended, ASPR 3-1204 read as
follows:
3-1204 Contract Clause. The Cost Accounting Standards clause set
forth in 7-104.83 shall be inserted in all negotiated contracts
exceeding $100,000, except when the price is based on established
catalog or market prices of commercial items sold in substantial
quantities to the general public or is set by law or regulation. In
addition to the foregoing exceptions, the clause shall not be
included in the following contracts:
* * * * *
(vi) contracts which are executed and performed in their
entirety outside the United States, its territories and possessions.
In 1980, the CAS Board ceased to exist under the DPA. CAS
administration was undertaken by the Department of Defense until the
CAS Board was re-established in 1988 under the Office of Federal
Procurement Policy (OFPP) Act.
In 1991, the new CAS Board decided to review the exemption from CAS
for contracts and subcontracts executed and performed entirely outside
the United States, its territories and possessions at FAR 30.201-1(14).
The exemption was retained and incorporated in the current CAS Board's
recodified rules and regulations at 48 CFR 9903.201-1(b)(14) on April
17, 1992 (57 FR 14148).
[[Page 53979]]
Key Questions for Consideration
The CAS Board is soliciting comments on this issue from interested
parties. In particular, the Board is interested in comments related to
the following issues:
1. Any statute that would require the CAS Board to retain this
exemption. If any such statute exists, provide the specific statute and
language that contain this requirement.
2. How this exemption does or does not promote the CAS Board's
primary objective of achieving ``(1) an increased degree of uniformity
in cost accounting practices among Government contractors in like
circumstances, and (2) consistency in cost accounting practices in like
circumstances by individual government contractor over periods of
time.''
3. The significance of the location of contract execution to CAS
applicability.
4. The significance of the location of contract performance to CAS
applicability.
5. The advantages and disadvantages of exempting contracts and
subcontracts from CAS that are executed and performed entirely outside
the U.S.
6. Contracting situations in which the exemption has historically
been utilized.
[FR Doc. 05-17949 Filed 9-12-05; 8:45 am]
BILLING CODE 3110-01-P
