Federal Acquisition Regulation; FAR Case 2005-027, FAR Part 30-CAS Administration, 58336-58338 [06-8425]
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58336
Federal Register / Vol. 71, No. 191 / Tuesday, October 3, 2006 / Proposed Rules
Unfunded Mandates Reform Act
The Unfunded Mandates Reform Act
of 1995 (2 U.S.C. 1531–1538) requires
Federal agencies to assess the effects of
their discretionary regulatory actions. In
particular, the Act addresses actions
that may result in the expenditure by a
State, local, or tribal government, in the
aggregate, or by the private sector of
$100,000,000 or more in any one year.
Though this proposed rule will not
result in such an expenditure, we do
discuss the effects of this rule elsewhere
in this preamble.
Taking of Private Property
This proposed rule would not affect a
taking of private property or otherwise
have taking implications under
Executive Order 12630, Governmental
Actions and Interference with
Constitutionally Protected Property
Rights.
Civil Justice Reform
This proposed rule meets applicable
standards in sections 3(a) and 3(b)(2) of
Executive Order 12988, Civil Justice
Reform, to minimize litigation,
eliminate ambiguity, and reduce
burden.
Protection of Children
We have analyzed this proposed rule
under Executive Order 13045,
Protection of Children from
Environmental Health Risks and Safety
Risks. This rule is not an economically
significant rule and would not create an
environmental risk to health or risk to
safety that might disproportionately
affect children.
ycherry on PROD1PC64 with PROPOSALS
Indian Tribal Governments
This proposed rule does not have
tribal implications under Executive
Order 13175, Consultation and
Coordination with Indian Tribal
Governments, because it would 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.
Energy Effects
We have analyzed this proposed rule
under Executive Order 13211, Actions
Concerning Regulations That
Significantly Affect Energy Supply,
Distribution, or Use. We have
determined that it is not a ‘‘significant
energy action’’ under that order because
it is not a ‘‘significant regulatory action’’
under Executive Order 12866 and is not
likely to have a significant adverse effect
on the supply, distribution, or use of
energy. The Administrator of the Office
VerDate Aug<31>2005
15:42 Oct 02, 2006
Jkt 211001
of Information and Regulatory Affairs
has not designated it as a significant
energy action. Therefore, it does not
require a Statement of Energy Effects
under Executive Order 13211.
Authority: 33 U.S.C. 499; Department of
Homeland Security Delegation No. 0170.1; 33
CFR 1.05–1(g); section 117.255 also issued
under the authority of Pub. L. 102–587, 106
Stat. 5039.
Technical Standards
2. Revise § 117.287(b–1) and add (c) to
read as follows:
The National Technology Transfer
and Advancement Act (NTTAA) (15
U.S.C. 272 note) directs agencies to use
voluntary consensus standards in their
regulatory activities unless the agency
provides Congress, through the Office of
Management and Budget, with an
explanation of why using these
standards would be inconsistent with
applicable law or otherwise impractical.
Voluntary consensus standards are
technical standards (e.g., specifications
of materials, performance, design, or
operation; test methods; sampling
procedures; and related management
systems practices) that are developed or
adopted by voluntary consensus
standards bodies.
This proposed rule does not use
technical standards. Therefore, we did
not consider the use of voluntary
consensus standards.
Environment
We have analyzed this proposed rule
under Commandant Instruction
M16475.lD, and Department of
Homeland Security Management
Directive 5100.1, which guides the
Coast Guard in complying with the
National Environmental Policy Act of
1969 (NEPA) (42 U.S.C. 4321–4370f),
and have made a preliminary
determination that there are no factors
in this case that would limit the use of
a categorical exclusion under section
2.B.2 of the Instruction. Therefore, we
believe that this rule should be
categorically excluded, under figure 2–
1, paragraph (32)(e), of the Instruction,
from further environmental
documentation. Under figure 2–1,
paragraph (32)(e), of the Instruction, an
‘‘Environmental Analysis Check List’’
and a ‘‘Categorical Exclusion
Determination’’ are not required for this
rule. However, comments on this
section will be considered before the
final rule.
List of Subjects in 33 CFR Part 117
Bridges.
For the reasons discussed in the
preamble, the Coast Guard proposes to
amend 33 CFR part 117 as follows:
PART 117—DRAWBRIDGE
OPERATION REGULATIONS
1. The authority citation for part 117
continues to read as follows:
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§ 117.287
Gulf Intracoastal Waterway.
*
*
*
*
*
(b–1) Stickney Point (SR 72) Bridge,
mile 68.6. The draw need only open on
the hour, 20-minutes after the hour, and
40-minutes after the hour, from 6 a.m.
to 10 p.m., Monday through Friday,
except Federal holidays.
(c) The draw of the Siesta Drive
Bridge, mile 71.6 at Sarasota, Florida
shall open on signal, except that from 7
a.m. to 6 p.m., Monday through Friday,
except Federal holidays, the draw need
open only on the hour, twenty minutes
past the hour and forty minutes past the
hour. On weekends and Federal
holidays, from 11 a.m. to 6 p.m., the
draw need open only on the hour,
twenty minutes past the hour and forty
minutes past the hour.
*
*
*
*
*
Dated: September 21, 2006.
J. A. Watson,
Captain, U.S. Coast Guard, Commander,
Seventh Coast Guard District Acting.
[FR Doc. E6–16285 Filed 10–2–06; 8:45 am]
BILLING CODE 4910–15–P
DEPARTMENT OF DEFENSE
GENERAL SERVICES
ADMINISTRATION
NATIONAL AERONAUTICS AND
SPACE ADMINISTRATION
48 CFR Part 30
[FAR Case 2005–027; Docket 2006–0020;
Sequence 9]
RIN 9000–AK60
Federal Acquisition Regulation; FAR
Case 2005–027, FAR Part 30—CAS
Administration
Department of Defense (DoD),
General Services Administration (GSA),
and National Aeronautics and Space
Administration (NASA).
ACTION: Proposed rule.
AGENCIES:
SUMMARY: The Civilian Agency
Acquisition Council and the Defense
Acquisition Regulations Council
(Councils) are proposing to amend the
Federal Acquisition Regulation (FAR) to
implement recommendations to change
the regulations related to the
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03OCP1
Federal Register / Vol. 71, No. 191 / Tuesday, October 3, 2006 / Proposed Rules
administration of the Cost Accounting
Standards (CAS).
DATES: Interested parties should submit
written comments to the FAR
Secretariat on or before December 4,
2006 to be considered in the
formulation of a final rule.
Submit comments
identified by FAR case 2005–027 by any
of the following methods:
• Federal eRulemaking Portal:
https://www.regulations.gov. Search
for any document by first selecting the
proper document types and selecting
‘‘Federal Acquisition Regulation’’ as the
agency of choice. At the ‘‘Keyword’’
prompt, type in the FAR case number
(for example, FAR Case 2006–001) and
click on the ‘‘Submit’’ button. You may
also search for any document by
clicking on the ‘‘Advanced search/
document search’’ tab at the top of the
screen, selecting from the agency field
‘‘Federal Acquisition Regulation’’, and
typing the FAR case number in the
keyword field. Select the ‘‘Submit’’
button.
• Fax: 202–501–4067.
• Mail: General Services
Administration, Regulatory Secretariat
(VIR), 1800 F Street, NW, Room 4035,
ATTN: Laurieann Duarte, Washington,
DC 20405.
Instructions: Please submit comments
only and cite FAR case 2005–027 in all
correspondence related to this case. All
comments received will be posted
without change to https://
www.regulations.gov, including any
personal and/or business confidential
information provided.
FOR FURTHER INFORMATION CONTACT For
clarification of content, contact Mr.
Jeremy Olson, at (202) 501–3221. For
information pertaining to status or
publication schedules, contact the FAR
Secretariat at (202) 501–4755. Please
cite FAR case 2005–027.
SUPPLEMENTARY INFORMATION:
ADDRESSES:
ycherry on PROD1PC64 with PROPOSALS
A. Background
On March 9, 2005, the Councils
issued a final rule (FAR case 1999–025)
revising FAR Part 30, ‘‘CAS
Administration’’ which significantly
streamlined the process for submitting,
negotiating, and resolving cost impacts
resulting from a change in cost
accounting practice or noncompliance
with stated practices. Subsequent to
this, a number of recommended changes
to FAR Part 30 have been submitted by
both government and industry
representatives. These
recommendations have been evaluated
and, where warranted, changes are
being proposed herein.
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15:42 Oct 02, 2006
Jkt 211001
B. Discussion
The Councils are proposing to revise
the following FAR provisions:
1. FAR 30.001 includes minor
changes to the definitions of a number
of terms. Related changes are made to
the FAR clause at 52.230–6(a). These
changes are made to ensure that each
term is consistently defined in both
locations.
2. FAR 30.601(c) is added to require
that the cognizant Federal agency
official (CFAO) request and consider the
advice of the auditor, as appropriate,
when administering the Cost
Accounting Standards. As a result, the
phrase ‘‘with the assistance of the
auditor’’ is deleted from several other
sections of FAR Part 30.
3. FAR 30.602(d) is revised to include
references to FAR 30.603, 30.604, and
30.605.
4. FAR 30.604(g) and 30.605(f) are
revised to specify that the CFAO must
evaluate the Detailed Cost Impact (DCI)
proposal for cost accounting practice
changes or noncompliances when a
contractor is required to submit a DCI.
5. FAR 30.604(h)(4) is revised to
indicate that the Changes clause is to be
used to negotiate equitable adjustments
related to required or desirable changes.
6. 30.605(h)(6) is added (and the
current (h)(6) is redesignated as (h)(7))
to specify that the cost impact of a
noncompliance that affects both cost
estimating and cost accumulation shall
be determined by combining the
separate cost impacts of both the cost
estimating and cost accumulation
noncompliances.
Two other related issues were
considered by the Councils no changes
will be made in response to those
recommendations. These include the
following:
Issue: The Councils were informed of
a concern about precluding contract
awards when a contractor has submitted
a revised Disclosure Statement, but that
Disclosure Statement has not yet been
determined adequate by the contracting
officer.
Councils’ Position: The Councils
believe that the regulations currently
provide adequate flexibility to address
any such circumstances that may arise,
including the waiver authority
contained in the CAS/FAR.
Furthermore, to date the Councils are
unaware of any instances in which
awards have been delayed pending
determinations about the adequacy and/
or compliance of revised Disclosure
Statements.
Issue: Currently, FAR 30.606(a)
prohibits combining the cost impacts of
two unilateral accounting changes
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58337
unless they both result in increased
costs. The Councils were informed that
such a rule may reduce contracting
officer flexibility and may be contrary to
established practices.
Councils’ Position: FAR 30.606(a) is
consistent with current statutory
requirements which do not permit the
combining of cost impacts for two or
more unilateral changes. The Councils
note that the contracting officer in such
cases should separately determine
whether each change is desirable, based
on the criteria in FAR Part 30. Should
the contracting officer determine that
certain of the changes are desirable, the
contracting officer would then have the
authority to combine the cost impacts of
those changes in determining the
amount of the equitable adjustment
resulting from the desirable changes.
This is not a significant regulatory
action and, therefore, was not subject to
review under Section 6(b) of Executive
Order 12866, Regulatory Planning and
Review, dated September 30, 1993. This
rule is not a major rule under 5 U.S.C.
804.
C. Regulatory Flexibility Act
The Councils do not expect this
proposed rule to have a significant
economic impact on a substantial
number of small entities within the
meaning of the Regulatory Flexibility
Act, 5 U.S.C. 601, et seq., because
contracts and subcontracts awarded to
small businesses are exempt from the
Cost Accounting Standards. An Initial
Regulatory Flexibility Analysis has,
therefore, not been performed. We invite
comments from small businesses and
other interested parties. The Councils
will consider comments from small
entities concerning the affected FAR
Part 30 in accordance with 5 U.S.C. 610.
Interested parties must submit such
comments separately and should cite 5
U.S.C. 601, et seq. (FAR case 2005–027),
in correspondence.
D. Paperwork Reduction Act
The Paperwork Reduction Act does
not apply because the proposed changes
to the FAR do not impose information
collection requirements that require the
approval of the Office of Management
and Budget under 44 U.S.C. 3501, et
seq.
List of Subjects in 48 CFR Part 30
Government procurement.
Dated: September 22, 2006.
Ralph De Stefano,
Director, Contract Policy Division.
Therefore, DoD, GSA, and NASA
propose amending 48 CFR part 30 as set
forth below:
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03OCP1
58338
Federal Register / Vol. 71, No. 191 / Tuesday, October 3, 2006 / Proposed Rules
30.604 Processing changes to disclosed
or established cost accounting practices.
1. The authority citation for 48 CFR
part 30 continues to read as follows:
Authority: 40 U.S.C. 121(c); 10 U.S.C.
chapter 137; and 42 U.S.C. 2473(c).
2. Amend section 30.001 by—
a. Adding to the definition ‘‘Cognizant
Federal agency official (CFAO)’’ ‘‘the ’’
following ‘‘administer’’;
b. Removing from the definition
‘‘Desirable change’’ ‘‘unilateral’’ and
adding ‘‘compliant’’ in its place; and
c. Revising paragraph (1) of the
definition ‘‘Required change’’ to read as
follows:
30.001
Definitions.
*
*
*
*
*
Required change means—
(1) A change in cost accounting
practice that a contractor is required to
make in order to comply with
applicable Standards, modifications or
interpretations thereto, that
subsequently becomes applicable to an
existing CAS-covered contract or
subcontract due to the receipt of another
CAS-covered contract or subcontract; or
*
*
*
*
*
3. Amend section 30.601 by removing
from paragraph (b) ‘‘52.230–6(b)’’ and
adding ‘‘52.230–6(l)’’ in its place; and
by adding paragraph (c) to read as
follows:
30.601
Responsibility.
*
*
*
*
*
(c) In performing CAS administration,
the CFAO shall request and consider the
advice of the auditor as appropriate (see
also 1.602–2).
4. Amend section 30.602 by revising
paragraph (d) to read as follows:
30.602
Materiality.
ycherry on PROD1PC64 with PROPOSALS
*
*
*
*
*
(d) For required, unilateral, and
desirable changes, and CAS
noncompliances, when the amount
involved is material, the CFAO shall
follow the applicable provisions in
30.603, 30.604, 30.605, and 30.606.
5. Amend section 30.604 by—
a. Removing from the introductory
text of paragraphs (b) and (f) ‘‘, with the
assistance of the auditor,’’;
b. Revising the introductory text of
paragraph (g);
c. Revising the introductory text of
paragraph (h)(4) and removing
paragraphs (h)(4)(i) and (h)(4)(ii); and
d. Removing from paragraph (i)(1)
‘‘With the assistance of the auditor,
estimate’’ and adding ‘‘Estimate’’ in its
place.
The revised text reads as follows:
VerDate Aug<31>2005
15:42 Oct 02, 2006
Jkt 211001
ADMINISTRATION OF COST
ACCOUNTING STANDARDS (DATE)
*
PART 30—COST ACCOUNTING
STANDARDS ADMINISTRATION
*
*
*
*
*
(g) Detailed cost-impact proposal. If
the contractor is required to submit a
DCI proposal, the CFAO shall promptly
evaluate the DCI proposal and follow
the procedures at 30.606 to negotiate
and resolve the cost impact. The DCI
proposal—
*
*
*
*
*
(h) * * *
(4) For required or desirable changes,
negotiate an equitable adjustment as
provided in the Changes clause of the
contract.
*
*
*
*
*
6. Amend section 30.605 by—
a. Removing from the introductory
text of paragraph (c)(2) ‘‘, with the
assistance of the auditor,’’;
b. Revising the introductory text of
paragraph (f); and
c. Redesignating paragraph (h)(6) as
(h)(7) and adding a newly designated
paragraph (h)(6).
The revised text reads as follows:
*
*
*
*
(a) * * *
Flexibly-priced contracts and
subcontracts means—
(1) Fixed-price contracts and
subcontracts described at 16.203–
1(a)(2), 16.204, 16.205, and 16.206;
*
*
*
*
*
Required change means—
(1) A change in cost accounting
practice that a Contractor is required to
make in order to comply with
applicable Standards, modifications or
interpretations thereto, that
subsequently become applicable to
existing CAS-covered contracts or
subcontracts due to the receipt of
another CAS-covered contract or
subcontract; or
*
*
*
*
*
(End of clause)
30.605
DEPARTMENT OF DEFENSE
Processing noncompliances.
*
*
*
*
*
(f) Detailed cost-impact proposal. If
the contractor is required to submit a
DCI proposal, the CFAO shall promptly
evaluate the DCI proposal and follow
the procedures at 30.606 to negotiate
and resolve the cost impact. The DCI
proposal—
*
*
*
*
*
(h) * * *
(6) The cost impact of each
noncompliance that affects both cost
estimating and cost accumulation shall
be determined by combining the cost
impacts in paragraphs (h)(3), (h)(4), and
(h)(5) of this section; and
*
*
*
*
*
PART 52—SOLICITATIONS
PROVISIONS AND CONTRACT
CLAUSES
7. Amend section 52.230–6 by—
a. Revising the date of the clause;
b. Removing from the definition
‘‘Fixed-price contracts and
subcontracts’’ the word ‘‘FAR’’ each
time it appears (4 times);
c. Amending the definition ‘‘Flexiblypriced contracts and subcontracts’’ by
revising paragraph (1); and by removing
from paragraphs (2) through (5) the
word ‘‘FAR’’; and
d. Revising paragraph (1) of the
definition ‘‘required change’’.
The revised text reads as follows:
52.230–6 Administration of Cost
Accounting Standards.
*
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*
Frm 00031
*
Fmt 4702
*
Sfmt 4702
[FR Doc. 06–8425 Filed 10–2–06; 8:45 am]
BILLING CODE 6820–EP–S
GENERAL SERVICES
ADMINISTRATION
NATIONAL AERONAUTICS AND
SPACE ADMINISTRATION
48 CFR Parts 30 and 52
[FAR Case 2006–004; Docket 2006–0020;
Sequence 10]
RIN 9000–AK58
Federal Acquisition Regulation; FAR
Case 2006–004, FAR Part 30 - CAS
Administration
Department of Defense (DoD),
General Services Administration (GSA),
and National Aeronautics and Space
Administration (NASA).
ACTION: Proposed rule.
AGENCIES:
SUMMARY: The Civilian Agency
Acquisition Council and the Defense
Acquisition Regulations Council
(Councils) are proposing to amend the
Federal Acquisition Regulation (FAR) to
implement recommendations to revise
the regulations related to the
administration of the Cost Accounting
Standards (CAS).
DATES: Interested parties should submit
written comments to the FAR
Secretariat on or before December 4,
2006 to be considered in the
formulation of a final rule.
ADDRESSES: Submit comments
identified by FAR case 2006–004 by any
of the following methods:
E:\FR\FM\03OCP1.SGM
03OCP1
]]>Agencies
[Federal Register Volume 71, Number 191 (Tuesday, October 3, 2006)]
[Proposed Rules]
[Pages 58336-58338]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 06-8425]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Part 30
[FAR Case 2005-027; Docket 2006-0020; Sequence 9]
RIN 9000-AK60
Federal Acquisition Regulation; FAR Case 2005-027, FAR Part 30--
CAS Administration
AGENCIES: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: The Civilian Agency Acquisition Council and the Defense
Acquisition Regulations Council (Councils) are proposing to amend the
Federal Acquisition Regulation (FAR) to implement recommendations to
change the regulations related to the
[[Page 58337]]
administration of the Cost Accounting Standards (CAS).
DATES: Interested parties should submit written comments to the FAR
Secretariat on or before December 4, 2006 to be considered in the
formulation of a final rule.
ADDRESSES: Submit comments identified by FAR case 2005-027 by any of
the following methods:
Federal eRulemaking Portal:
https://www.regulations.gov. Search for any document by first
selecting the proper document types and selecting ``Federal Acquisition
Regulation'' as the agency of choice. At the ``Keyword'' prompt, type
in the FAR case number (for example, FAR Case 2006-001) and click on
the ``Submit'' button. You may also search for any document by clicking
on the ``Advanced search/document search'' tab at the top of the
screen, selecting from the agency field ``Federal Acquisition
Regulation'', and typing the FAR case number in the keyword field.
Select the ``Submit'' button.
Fax: 202-501-4067.
Mail: General Services Administration, Regulatory
Secretariat (VIR), 1800 F Street, NW, Room 4035, ATTN: Laurieann
Duarte, Washington, DC 20405.
Instructions: Please submit comments only and cite FAR case 2005-
027 in all correspondence related to this case. All comments received
will be posted without change to https://www.regulations.gov, including
any personal and/or business confidential information provided.
FOR FURTHER INFORMATION CONTACT For clarification of content, contact
Mr. Jeremy Olson, at (202) 501-3221. For information pertaining to
status or publication schedules, contact the FAR Secretariat at (202)
501-4755. Please cite FAR case 2005-027.
SUPPLEMENTARY INFORMATION:
A. Background
On March 9, 2005, the Councils issued a final rule (FAR case 1999-
025) revising FAR Part 30, ``CAS Administration'' which significantly
streamlined the process for submitting, negotiating, and resolving cost
impacts resulting from a change in cost accounting practice or
noncompliance with stated practices. Subsequent to this, a number of
recommended changes to FAR Part 30 have been submitted by both
government and industry representatives. These recommendations have
been evaluated and, where warranted, changes are being proposed herein.
B. Discussion
The Councils are proposing to revise the following FAR provisions:
1. FAR 30.001 includes minor changes to the definitions of a number
of terms. Related changes are made to the FAR clause at 52.230-6(a).
These changes are made to ensure that each term is consistently defined
in both locations.
2. FAR 30.601(c) is added to require that the cognizant Federal
agency official (CFAO) request and consider the advice of the auditor,
as appropriate, when administering the Cost Accounting Standards. As a
result, the phrase ``with the assistance of the auditor'' is deleted
from several other sections of FAR Part 30.
3. FAR 30.602(d) is revised to include references to FAR 30.603,
30.604, and 30.605.
4. FAR 30.604(g) and 30.605(f) are revised to specify that the CFAO
must evaluate the Detailed Cost Impact (DCI) proposal for cost
accounting practice changes or noncompliances when a contractor is
required to submit a DCI.
5. FAR 30.604(h)(4) is revised to indicate that the Changes clause
is to be used to negotiate equitable adjustments related to required or
desirable changes.
6. 30.605(h)(6) is added (and the current (h)(6) is redesignated as
(h)(7)) to specify that the cost impact of a noncompliance that affects
both cost estimating and cost accumulation shall be determined by
combining the separate cost impacts of both the cost estimating and
cost accumulation noncompliances.
Two other related issues were considered by the Councils no changes
will be made in response to those recommendations. These include the
following:
Issue: The Councils were informed of a concern about precluding
contract awards when a contractor has submitted a revised Disclosure
Statement, but that Disclosure Statement has not yet been determined
adequate by the contracting officer.
Councils' Position: The Councils believe that the regulations
currently provide adequate flexibility to address any such
circumstances that may arise, including the waiver authority contained
in the CAS/FAR. Furthermore, to date the Councils are unaware of any
instances in which awards have been delayed pending determinations
about the adequacy and/or compliance of revised Disclosure Statements.
Issue: Currently, FAR 30.606(a) prohibits combining the cost
impacts of two unilateral accounting changes unless they both result in
increased costs. The Councils were informed that such a rule may reduce
contracting officer flexibility and may be contrary to established
practices.
Councils' Position: FAR 30.606(a) is consistent with current
statutory requirements which do not permit the combining of cost
impacts for two or more unilateral changes. The Councils note that the
contracting officer in such cases should separately determine whether
each change is desirable, based on the criteria in FAR Part 30. Should
the contracting officer determine that certain of the changes are
desirable, the contracting officer would then have the authority to
combine the cost impacts of those changes in determining the amount of
the equitable adjustment resulting from the desirable changes.
This is not a significant regulatory action and, therefore, was not
subject to review under Section 6(b) of Executive Order 12866,
Regulatory Planning and Review, dated September 30, 1993. This rule is
not a major rule under 5 U.S.C. 804.
C. Regulatory Flexibility Act
The Councils do not expect this proposed rule to have a significant
economic impact on a substantial number of small entities within the
meaning of the Regulatory Flexibility Act, 5 U.S.C. 601, et seq.,
because contracts and subcontracts awarded to small businesses are
exempt from the Cost Accounting Standards. An Initial Regulatory
Flexibility Analysis has, therefore, not been performed. We invite
comments from small businesses and other interested parties. The
Councils will consider comments from small entities concerning the
affected FAR Part 30 in accordance with 5 U.S.C. 610. Interested
parties must submit such comments separately and should cite 5 U.S.C.
601, et seq. (FAR case 2005-027), in correspondence.
D. Paperwork Reduction Act
The Paperwork Reduction Act does not apply because the proposed
changes to the FAR do not impose information collection requirements
that require the approval of the Office of Management and Budget under
44 U.S.C. 3501, et seq.
List of Subjects in 48 CFR Part 30
Government procurement.
Dated: September 22, 2006.
Ralph De Stefano,
Director, Contract Policy Division.
Therefore, DoD, GSA, and NASA propose amending 48 CFR part 30 as
set forth below:
[[Page 58338]]
PART 30--COST ACCOUNTING STANDARDS ADMINISTRATION
1. The authority citation for 48 CFR part 30 continues to read as
follows:
Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 42
U.S.C. 2473(c).
2. Amend section 30.001 by--
a. Adding to the definition ``Cognizant Federal agency official
(CFAO)'' ``the '' following ``administer'';
b. Removing from the definition ``Desirable change'' ``unilateral''
and adding ``compliant'' in its place; and
c. Revising paragraph (1) of the definition ``Required change'' to
read as follows:
30.001 Definitions.
* * * * *
Required change means--
(1) A change in cost accounting practice that a contractor is
required to make in order to comply with applicable Standards,
modifications or interpretations thereto, that subsequently becomes
applicable to an existing CAS-covered contract or subcontract due to
the receipt of another CAS-covered contract or subcontract; or
* * * * *
3. Amend section 30.601 by removing from paragraph (b) ``52.230-
6(b)'' and adding ``52.230-6(l)'' in its place; and by adding paragraph
(c) to read as follows:
30.601 Responsibility.
* * * * *
(c) In performing CAS administration, the CFAO shall request and
consider the advice of the auditor as appropriate (see also 1.602-2).
4. Amend section 30.602 by revising paragraph (d) to read as
follows:
30.602 Materiality.
* * * * *
(d) For required, unilateral, and desirable changes, and CAS
noncompliances, when the amount involved is material, the CFAO shall
follow the applicable provisions in 30.603, 30.604, 30.605, and 30.606.
5. Amend section 30.604 by--
a. Removing from the introductory text of paragraphs (b) and (f)
``, with the assistance of the auditor,'';
b. Revising the introductory text of paragraph (g);
c. Revising the introductory text of paragraph (h)(4) and removing
paragraphs (h)(4)(i) and (h)(4)(ii); and
d. Removing from paragraph (i)(1) ``With the assistance of the
auditor, estimate'' and adding ``Estimate'' in its place.
The revised text reads as follows:
30.604 Processing changes to disclosed or established cost accounting
practices.
* * * * *
(g) Detailed cost-impact proposal. If the contractor is required to
submit a DCI proposal, the CFAO shall promptly evaluate the DCI
proposal and follow the procedures at 30.606 to negotiate and resolve
the cost impact. The DCI proposal--
* * * * *
(h) * * *
(4) For required or desirable changes, negotiate an equitable
adjustment as provided in the Changes clause of the contract.
* * * * *
6. Amend section 30.605 by--
a. Removing from the introductory text of paragraph (c)(2) ``, with
the assistance of the auditor,'';
b. Revising the introductory text of paragraph (f); and
c. Redesignating paragraph (h)(6) as (h)(7) and adding a newly
designated paragraph (h)(6).
The revised text reads as follows:
30.605 Processing noncompliances.
* * * * *
(f) Detailed cost-impact proposal. If the contractor is required to
submit a DCI proposal, the CFAO shall promptly evaluate the DCI
proposal and follow the procedures at 30.606 to negotiate and resolve
the cost impact. The DCI proposal--
* * * * *
(h) * * *
(6) The cost impact of each noncompliance that affects both cost
estimating and cost accumulation shall be determined by combining the
cost impacts in paragraphs (h)(3), (h)(4), and (h)(5) of this section;
and
* * * * *
PART 52--SOLICITATIONS PROVISIONS AND CONTRACT CLAUSES
7. Amend section 52.230-6 by--
a. Revising the date of the clause;
b. Removing from the definition ``Fixed-price contracts and
subcontracts'' the word ``FAR'' each time it appears (4 times);
c. Amending the definition ``Flexibly-priced contracts and
subcontracts'' by revising paragraph (1); and by removing from
paragraphs (2) through (5) the word ``FAR''; and
d. Revising paragraph (1) of the definition ``required change''.
The revised text reads as follows:
52.230-6 Administration of Cost Accounting Standards.
* * * * *
ADMINISTRATION OF COST ACCOUNTING STANDARDS (DATE)
* * * * *
(a) * * *
Flexibly-priced contracts and subcontracts means--
(1) Fixed-price contracts and subcontracts described at 16.203-
1(a)(2), 16.204, 16.205, and 16.206;
* * * * *
Required change means--
(1) A change in cost accounting practice that a Contractor is
required to make in order to comply with applicable Standards,
modifications or interpretations thereto, that subsequently become
applicable to existing CAS-covered contracts or subcontracts due to the
receipt of another CAS-covered contract or subcontract; or
* * * * *
(End of clause)
[FR Doc. 06-8425 Filed 10-2-06; 8:45 am]
BILLING CODE 6820-EP-S
