Defense Federal Acquisition Regulation Supplement; Labor Reimbursement on DoD Non-Commercial Time-and-Materials and Labor-Hour Contracts (DFARS Case 2006-D030), 74469-74471 [06-9602]
Download as PDF
Federal Register / Vol. 71, No. 238 / Tuesday, December 12, 2006 / Rules and Regulations
taxable income for 2005 with respect to N,
neither A nor B may reduce taxable income
with respect to N for 2006.
Example 3. Unmarried roommates and colessees C and D provide housing to eight
Hurricane Katrina displaced individuals
during 2005. Under paragraphs (a) and
(c)(1)(i)(A) of this section, C and D each may
reduce taxable income by $2,000 on their
2005 income tax returns.
Example 4. (i) H and W are married to each
other and provide housing to a Hurricane
Katrina displaced individual, O, in 2005. H
and W file their 2005 income tax return
married filing jointly. Under paragraphs (a)
and (c)(4) of this section, H and W may
reduce taxable income by $500 on their 2005
income tax return with respect to O.
(ii) In 2006, H and W provide housing to
O and to another Hurricane Katrina displaced
individual, P. H and W file their 2006 income
tax return married filing separately. Because
H and W reduced their 2005 taxable income
with respect to O, under paragraph (c)(3) of
this section, neither H nor W may reduce
taxable income on their 2006 income tax
return with respect to O. Under paragraphs
(a) and (c)(4) of this section, either H or W,
but not both, may reduce taxable income by
$500 on his or her 2006 income tax return
with respect to P.
(g) Effective date. This section applies
for taxable years beginning after
December 31, 2004, and before January
1, 2007, and ending on or after
December 11, 2006.
Approved: December 1, 2006.
Linda M. Kroening,
Acting Deputy Commissioner for Services and
Enforcement.
Eric Solomon,
Acting Deputy Assistant Secretary of the
Treasury (Tax Policy).
[FR Doc. E6–21031 Filed 12–11–06; 8:45 am]
BILLING CODE 4830–01–P
FEDERAL COMMUNICATIONS
COMMISSION
47 CFR Part 64
[CG Docket No. 02–386; FCC 05–29]
Rules and Regulations Implementing
Minimum Customer Account Record
Exchange Obligations on All Local and
Interexchange Carriers
Federal Communications
Commission.
ACTION: Final rule; announcement of
effective date.
AGENCY:
In this document, the
Commission re-publishes its
announcement that the Office of
Management and Budget (OMB)
approved for three years the information
collection requirements contained in the
Rules and Regulations Implementing
Minimum Customer Account Record
jlentini on PROD1PC65 with RULES
SUMMARY:
VerDate Aug<31>2005
17:58 Dec 11, 2006
Jkt 211001
Exchange Obligations on All Local and
Interexchange Carriers, Report and
Order and Further Notice of Proposed
Rulemaking on August 30, 2005. On
September 21, 2005, the Commission
published an announcement of the
effective date of the rules published at
70 FR 32258. This document announces
the effective date of corrected rules
published at 70 FR 54300.
DATES: The corrected rules for § 64.4002
published at 70 FR 54300, September
14, 2005, are effective December 12,
2006.
FOR FURTHER INFORMATION CONTACT: Lisa
Boehley, Policy Division, Consumer &
Governmental Affairs Bureau, at (202)
418–2512.
SUPPLEMENTARY INFORMATION: This
document announces that OMB
approved for three years the information
collection requirements contained in
Rules and Regulations Implementing
Minimum Customer Account Record
Exchange Obligations on All Local and
Interexchange Carriers, Report and
Order and Further Notice of Proposed
Rulemaking, FCC 05–29 published at 70
FR 54300, September 14, 2005. The
information collections were approved
by OMB on August 30, 2005. OMB
Control Number 3060–1084. The
Commission publishes this notice of the
effective date of the corrected rules. If
you have any comments on the burden
estimates listed below, or how we can
improve the collections and reduce any
burdens caused thereby, please write to
Leslie F. Smith, Federal
Communications Commission, Room 1–
A804, 445 12th Street, SW.,
Washington, DC 20554. Please include
the OMB Control Number 3060–1084, in
your correspondence. We will also
accept your comments regarding the
Paperwork Reduction Act aspects of the
collections via the Internet, if you send
them to Leslie.Smith@fcc.gov or you
may call (202) 418–0217.
To request materials in accessible
formats for people with disabilities
(Braille, large print, electronic files,
audio format), send an e-mail to
fcc504@fcc.gov or call the Consumer &
Governmental Affairs Bureau at (202)
418–0530 (voice), (202) 418–0432
(TTY).
Synopsis
As required by the Paperwork
Reduction Act of 1995 (44 U.S.C. 3507),
the FCC notified the public that it
received approval from OMB on August
30, 2005, for the collections of
information contained in the
Commission’s Rules and Regulations
Implementing Minimum Customer
Account Record Exchange Obligations
PO 00000
Frm 00015
Fmt 4700
Sfmt 4700
74469
on All Local and Interexchange Carriers,
Report and Order and Further Notice of
Proposed Rulemaking. On September
21, 2005, the Commission published an
announcement of the effective date of
the rules published at 70 FR 32258. The
rules became effective on September 21,
2005. This document announces the
effective date of the rules published at
70 FR 53400, which contained minor
corrections to the rules published at 70
FR 32258. The total annual reporting
burden associated with these collections
of information, including the time for
gathering and maintaining the
collections of information, is estimated
to be: 1,778 respondents, a total annual
hourly burden of 44,576 hours, and
$1,114,400 in total annual costs. Under
5 CFR part 1320, an agency may not
conduct or sponsor a collection of
information unless it displays a current
valid OMB Control Number. No person
shall be subject to any penalty for failing
to comply with a collection of
information subject to the Paperwork
Reduction Act that does not display a
valid OMB Control Number. The
foregoing notice is required by the
Paperwork Reduction Act of 1995,
Public Law 104–13, October 1, 1995, 44
U.S.C. 3507.
List of Subjects in 47 CFR Part 64
Reporting and recordkeeping
requirements, Telecommunications,
Telephone.
Federal Communications Commission.
Marlene H. Dortch,
Secretary.
[FR Doc. E6–20909 Filed 12–11–06; 8:45 am]
BILLING CODE 6712–01–P
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations
System
48 CFR Parts 216 and 252
RIN 0750–AF44
Defense Federal Acquisition
Regulation Supplement; Labor
Reimbursement on DoD NonCommercial Time-and-Materials and
Labor-Hour Contracts (DFARS Case
2006–D030)
Defense Acquisition
Regulations System, Department of
Defense (DoD).
ACTION: Interim rule with request for
comments.
AGENCY:
SUMMARY: DoD has issued an interim
rule amending the Defense Federal
Acquisition Regulation Supplement
E:\FR\FM\12DER1.SGM
12DER1
74470
Federal Register / Vol. 71, No. 238 / Tuesday, December 12, 2006 / Rules and Regulations
jlentini on PROD1PC65 with RULES
(DFARS) to provide policy for
reimbursing labor costs on
competitively awarded DoD noncommercial time-and-materials and
labor-hour contracts.
DATES: Effective Date: February 12,
2007.
Comment Date: Comments on the
interim rule should be submitted to the
address shown below on or before
February 12, 2007, to be considered in
the formation of the final rule.
ADDRESSES: You may submit comments,
identified by DFARS Case 2006–D030,
using any of the following methods:
• Federal eRulemaking Portal: https://
www.regulations.gov. Follow the
instructions for submitting comments.
• E-mail: dfars@osd.mil. Include
DFARS Case 2006–D030 in the subject
line of the message.
• Fax: (703) 602–0350.
• Mail: Defense Acquisition
Regulations System, Attn: Ms. Robin
Schulze, OUSD (AT&L) DPAP (DARS),
IMD 3C132, 3062 Defense Pentagon,
Washington, DC 20301–3062.
• Hand Delivery/Courier: Defense
Acquisition Regulations System, Crystal
Square 4, Suite 200A, 241 18th Street,
Arlington, VA 22202–3402.
Comments received generally will be
posted without change to https://
www.regulations.gov, including any
personal information provided.
FOR FURTHER INFORMATION CONTACT: Ms.
Robin Schulze, (703) 602–0326.
SUPPLEMENTARY INFORMATION:
the three options at the agency level.
DoD believes it is in the best interests
of the Department to select, and make
mandatory, the option requiring
separate fixed hourly rates that include
profit for each category of labor
performed by the contractor and each
subcontractor, and for each category of
labor transferred between divisions,
subsidiaries, or affiliates of the
contractor under a common control. The
reasons for selection of this option
include—
(1) The relatively large dollar value of
many DoD non-commercial time-andmaterials and labor-hour contracts;
(2) The significant oversight and
legislative initiatives that have focused
on DoD in recent years; and
(3) The preponderance of DoD noncommercial time-and-materials and
labor-hour contracts performed by
traditional DoD contractors and
subcontractors, who already have the
necessary mechanisms in place to
establish separate fixed hourly rates for
each performing entity without
significant administrative burden.
This rule was not subject to Office of
Management and Budget review under
Executive Order 12866, dated
September 30, 1993. In accordance with
established rulemaking procedures, DoD
will coordinate with the Office of
Management and Budget regarding
public comments received in response
to this interim rule prior to the issuance
of a final rule.
A. Background
This interim DFARS rule supplements
the final Federal Acquisition Regulation
(FAR) rule published in Federal
Acquisition Circular 2005–15, under
FAR Case 2004–015. The FAR rule
clarifies payment procedures for noncommercial time-and-materials and
labor-hour contracts, and prescribes the
following three options for establishing
fixed hourly rates on competitively
awarded non-commercial time-andmaterials and labor-hour contracts:
(1) Separate rates that include profit
for each category of labor performed by
the contractor and each subcontractor,
and for each category of labor
transferred between divisions,
subsidiaries, or affiliates of the
contractor under a common control.
(2) Blended rates that include profit
for each category of labor performed by
the contractor and its subcontractors,
and labor transferred between divisions,
subsidiaries, or affiliates of the
contractor under a common control.
(3) Any combination of separate and
blended rates for each category of labor.
The FAR rule also authorizes agencies
to select, and make mandatory, one of
B. Regulatory Flexibility Act
This rule may impact a substantial
number of small entities within the
meaning of the Regulatory Flexibility
Act, 5 U.S.C. 601, et seq. DoD has
prepared an initial regulatory flexibility
analysis, which is summarized as
follows:
The objective of the rule is to select
the FAR option for establishing labor
rates that is the most suitable for DoD
competitively awarded, non-commercial
time-and-materials and labor-hour
contracts. The legal basis for the rule is
41 U.S.C. 421. The rule will apply to all
entities interested in receiving DoD
competitively awarded non-commercial
time-and-materials and labor-hour
contracts. The impact on small entities
is unknown at this time. DoD believes
that, for non-commercial time-andmaterials and labor-hour contracts, it is
in the best interests of the Department
to require use of the FAR option that
provides for the establishment of
separate fixed hourly rates for each
category of labor performed by the
contractor and each subcontractor, and
for each category of labor transferred
between divisions, subsidiaries, or
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17:58 Dec 11, 2006
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PO 00000
Frm 00016
Fmt 4700
Sfmt 4700
affiliates of the contractor under a
common control.
A copy of the analysis may be
obtained from the point of contact
specified herein. DoD invites comments
from small businesses and other
interested parties. DoD also will
consider comments from small entities
concerning the affected DFARS subparts
in accordance with 5 U.S.C. 610. Such
comments should be submitted
separately and should cite DFARS Case
2006–D030.
C. Paperwork Reduction Act
The Paperwork Reduction Act does
not apply, because the rule does not
impose any information collection
requirements that require the approval
of the Office of Management and Budget
under 44 U.S.C. 3501, et seq.
D. Determination To Issue an Interim
Rule
A determination has been made under
the authority of the Secretary of Defense
that urgent and compelling reasons exist
to publish an interim rule prior to
affording the public an opportunity to
comment. This interim rule provides
policy for reimbursing labor costs on
competitively awarded DoD noncommercial time-and-materials and
labor-hour contracts. DoD believes it is
in the best interests of the Department
to require the establishment of separate
fixed hourly rates for each category of
labor performed by the contractor and
each subcontractor, and for each
category of labor transferred between
divisions, subsidiaries, or affiliates of
the contractor under a common control.
The reasons for this decision include—
(1) The relatively large dollar value of
many DoD non-commercial time-andmaterials and labor-hour contracts;
(2) The significant oversight and
legislative initiatives that have focused
on DoD in recent years; and
(3) The preponderance of DoD noncommercial time-and-materials and
labor-hour contracts performed by
traditional DoD contractors and
subcontractors, who already have the
necessary mechanisms in place to
establish separate fixed hourly rates for
each performing entity without
significant administrative burden.
Comments received in response to
this interim rule will be considered in
the formation of the final rule.
E:\FR\FM\12DER1.SGM
12DER1
Federal Register / Vol. 71, No. 238 / Tuesday, December 12, 2006 / Rules and Regulations
List of Subjects in 48 CFR Parts 216 and
252
Government procurement.
Michele P. Peterson,
Editor, Defense Acquisition Regulations
System.
Therefore, 48 CFR parts 216 and 252
are amended as follows:
I 1. The authority citation for 48 CFR
parts 216 and 252 continues to read as
follows:
Authority: 41 U.S.C. 421 and 48 CFR
Chapter 1.
2. Section 216.601 is added to read as
follows:
I
Time-and-materials contracts.
(e) Solicitation provisions. Use the
provision at FAR 52.216–29, Time-andMaterials/Labor-Hour Proposal
Requirements—Non-Commercial Item
Acquisition with Adequate Price
Competition, with 252.216–7002,
Alternate A, in solicitations
contemplating the use of a time-andmaterials or labor-hour contract type for
non-commercial items if the price is
expected to be based on adequate
competition.
PART 252—SOLICITATION
PROVISIONS AND CONTRACT
CLAUSES
3. Section 252.216–7002 is added to
read as follows:
I
252.216–7002 Alternate A, Time-andMaterials/Labor-Hour Proposal
Requirements—Non-Commercial Item
Acquisition with Adequate Price
Competition.
jlentini on PROD1PC65 with RULES
As prescribed in 216.601(e), substitute
the following paragraph (c) for
paragraph (c) of the provision at FAR
52.216–29:
ALTERNATE A, TIME-ANDMATERIALS/LABOR-HOUR
PROPOSAL REQUIREMENTS—NONCOMMERCIAL ITEM ACQUISITION
WITH ADEQUATE PRICE
COMPETITION (FEB. 2007)
(c) The offeror must establish fixed
hourly rates using separate rates for
each category of labor to be performed
by each subcontractor and for each
category of labor to be performed by the
offeror, and for each category of labor to
be transferred between divisions,
subsidiaries, or affiliates of the offeror
under a common control.
BILLING CODE 5001–08–P
VerDate Aug<31>2005
17:58 Dec 11, 2006
Jkt 211001
[Docket No. 051128313–6029–02; I.D.
120406C ]
Fisheries of the Northeastern United
States; Atlantic Bluefish Fishery;
Commercial Quota Harvested for New
York
National Marine Fisheries
Service (NMFS), National Oceanic and
Atmospheric Administration (NOAA),
Commerce.
ACTION: Closure of commercial fishery.
AGENCY:
PART 216—TYPES OF CONTRACTS
[FR Doc. 06–9602 Filed 12–6–06; 9:16 am]
National Oceanic and Atmospheric
Administration
50 CFR Part 648
I
216.601
DEPARTMENT OF COMMERCE
SUMMARY: NMFS announces that the
Atlantic bluefish commercial quota
available to New York has been
harvested. Vessels issued a commercial
Federal fisheries permit for the Atlantic
bluefish fishery may not land bluefish
in New York for the remainder of
calendar year 2006, unless additional
quota becomes available through a
transfer. Regulations governing the
Atlantic bluefish fishery require
publication of this notification to advise
New York that the quota has been
harvested and to advise vessel permit
holders and dealer permit holders that
no commercial quota is available for
landing bluefish in New York.
DATES: Effective 0001 hours, December
12, 2006, through 2400 hours, December
31, 2006.
FOR FURTHER INFORMATION CONTACT:
Douglas Potts, Fishery Management
Specialist, (978) 281–9341.
SUPPLEMENTARY INFORMATION:
Regulations governing the Atlantic
bluefish fishery are found at 50 CFR part
648. The regulations require annual
specification of a commercial quota that
is apportioned on a percentage basis
among the coastal states from Florida
through Maine. The process to set the
annual commercial quota and the
percent allocated to each state is
described in § 648.160.
The initial coast wide commercial
quota for Atlantic bluefish for the 2006
calendar year was set equal to 4,215,802
lb (1,912 mt) (71 FR 9472, February 24,
2006). The initial commercial quota was
adjusted by transferring 3,865,294 lb
(1,753 mt) from the recreational
allocation, resulting in a total
commercial quota of 8,081,096 lb (3,666
mt). The percent allocated to vessels
landing bluefish in New York is 10.3851
percent, resulting in an initial
PO 00000
Frm 00017
Fmt 4700
Sfmt 4700
74471
commercial quota of 839,230 lb (380,672
kg). The 2006 allocation was reduced to
775,526 lb (351,773 kg) (71 FR 27977,
May 15, 2006) due to research set-aside
and a quota overage in 2005. New York
received transfers of commercial
bluefish quota from Virginia (71 FR
42315, July 26, 2006) and Florida (71 FR
51531, August 30, 2006), which resulted
in a 2006 allocation of 1,025,526 lb
(465,171 kg).
Section 648.161(b) requires the
Administrator, Northeast Region, NMFS
(Regional Administrator) to monitor
state commercial quotas and to
determine when a state’s commercial
quota has been harvested. NMFS then
publishes a notification in the Federal
Register to advise the state and to notify
Federal vessel and dealer permit holders
that, effective upon a specific date, the
state’s commercial quota has been
harvested and no commercial quota is
available for landing bluefish in that
state. The Regional Administrator has
determined, based upon dealer reports
and other available information, that
New York has harvested its quota for
2006.
The regulations at § 648.4(b) provide
that Federal permit holders agree, as a
condition of the permit, not to land
bluefish in any state that the Regional
Administrator has determined no longer
has commercial quota available.
Therefore, effective 0001 hours,
December 12, 2006, further landings of
bluefish in New York by vessels holding
Atlantic bluefish commercial Federal
fisheries permits are prohibited for the
remainder of the 2006 calendar year,
unless additional quota becomes
available through a transfer and is
announced in the Federal Register.
Effective 0001 hours, December 12,
2006, federally permitted dealers are
also notified that they may not purchase
bluefish from federally permitted
vessels that land in New York for the
remainder of the calendar year, or until
additional quota becomes available
through a transfer.
Classification
This action is required by 50 CFR part
648 and is exempt from review under
Executive Order 12866.
Authority: 16 U.S.C. 1801 et seq.
Dated: December 5, 2006.
James P. Burgess,
Acting Director, Office of Sustainable
Fisheries, National Marine Fisheries Service.
[FR Doc. 06–9624 Filed 12–6–06; 3:08 pm]
BILLING CODE 3510–22–S
E:\FR\FM\12DER1.SGM
12DER1
Agencies
[Federal Register Volume 71, Number 238 (Tuesday, December 12, 2006)]
[Rules and Regulations]
[Pages 74469-74471]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 06-9602]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System
48 CFR Parts 216 and 252
RIN 0750-AF44
Defense Federal Acquisition Regulation Supplement; Labor
Reimbursement on DoD Non-Commercial Time-and-Materials and Labor-Hour
Contracts (DFARS Case 2006-D030)
AGENCY: Defense Acquisition Regulations System, Department of Defense
(DoD).
ACTION: Interim rule with request for comments.
-----------------------------------------------------------------------
SUMMARY: DoD has issued an interim rule amending the Defense Federal
Acquisition Regulation Supplement
[[Page 74470]]
(DFARS) to provide policy for reimbursing labor costs on competitively
awarded DoD non-commercial time-and-materials and labor-hour contracts.
DATES: Effective Date: February 12, 2007.
Comment Date: Comments on the interim rule should be submitted to
the address shown below on or before February 12, 2007, to be
considered in the formation of the final rule.
ADDRESSES: You may submit comments, identified by DFARS Case 2006-D030,
using any of the following methods:
Federal eRulemaking Portal: https://www.regulations.gov.
Follow the instructions for submitting comments.
E-mail: dfars@osd.mil. Include DFARS Case 2006-D030 in the
subject line of the message.
Fax: (703) 602-0350.
Mail: Defense Acquisition Regulations System, Attn: Ms.
Robin Schulze, OUSD (AT&L) DPAP (DARS), IMD 3C132, 3062 Defense
Pentagon, Washington, DC 20301-3062.
Hand Delivery/Courier: Defense Acquisition Regulations
System, Crystal Square 4, Suite 200A, 241 18th Street, Arlington, VA
22202-3402.
Comments received generally will be posted without change to http:/
/www.regulations.gov, including any personal information provided.
FOR FURTHER INFORMATION CONTACT: Ms. Robin Schulze, (703) 602-0326.
SUPPLEMENTARY INFORMATION:
A. Background
This interim DFARS rule supplements the final Federal Acquisition
Regulation (FAR) rule published in Federal Acquisition Circular 2005-
15, under FAR Case 2004-015. The FAR rule clarifies payment procedures
for non-commercial time-and-materials and labor-hour contracts, and
prescribes the following three options for establishing fixed hourly
rates on competitively awarded non-commercial time-and-materials and
labor-hour contracts:
(1) Separate rates that include profit for each category of labor
performed by the contractor and each subcontractor, and for each
category of labor transferred between divisions, subsidiaries, or
affiliates of the contractor under a common control.
(2) Blended rates that include profit for each category of labor
performed by the contractor and its subcontractors, and labor
transferred between divisions, subsidiaries, or affiliates of the
contractor under a common control.
(3) Any combination of separate and blended rates for each category
of labor.
The FAR rule also authorizes agencies to select, and make
mandatory, one of the three options at the agency level. DoD believes
it is in the best interests of the Department to select, and make
mandatory, the option requiring separate fixed hourly rates that
include profit for each category of labor performed by the contractor
and each subcontractor, and for each category of labor transferred
between divisions, subsidiaries, or affiliates of the contractor under
a common control. The reasons for selection of this option include--
(1) The relatively large dollar value of many DoD non-commercial
time-and-materials and labor-hour contracts;
(2) The significant oversight and legislative initiatives that have
focused on DoD in recent years; and
(3) The preponderance of DoD non-commercial time-and-materials and
labor-hour contracts performed by traditional DoD contractors and
subcontractors, who already have the necessary mechanisms in place to
establish separate fixed hourly rates for each performing entity
without significant administrative burden.
This rule was not subject to Office of Management and Budget review
under Executive Order 12866, dated September 30, 1993. In accordance
with established rulemaking procedures, DoD will coordinate with the
Office of Management and Budget regarding public comments received in
response to this interim rule prior to the issuance of a final rule.
B. Regulatory Flexibility Act
This rule may impact a substantial number of small entities within
the meaning of the Regulatory Flexibility Act, 5 U.S.C. 601, et seq.
DoD has prepared an initial regulatory flexibility analysis, which is
summarized as follows:
The objective of the rule is to select the FAR option for
establishing labor rates that is the most suitable for DoD
competitively awarded, non-commercial time-and-materials and labor-hour
contracts. The legal basis for the rule is 41 U.S.C. 421. The rule will
apply to all entities interested in receiving DoD competitively awarded
non-commercial time-and-materials and labor-hour contracts. The impact
on small entities is unknown at this time. DoD believes that, for non-
commercial time-and-materials and labor-hour contracts, it is in the
best interests of the Department to require use of the FAR option that
provides for the establishment of separate fixed hourly rates for each
category of labor performed by the contractor and each subcontractor,
and for each category of labor transferred between divisions,
subsidiaries, or affiliates of the contractor under a common control.
A copy of the analysis may be obtained from the point of contact
specified herein. DoD invites comments from small businesses and other
interested parties. DoD also will consider comments from small entities
concerning the affected DFARS subparts in accordance with 5 U.S.C. 610.
Such comments should be submitted separately and should cite DFARS Case
2006-D030.
C. Paperwork Reduction Act
The Paperwork Reduction Act does not apply, because the rule does
not impose any information collection requirements that require the
approval of the Office of Management and Budget under 44 U.S.C. 3501,
et seq.
D. Determination To Issue an Interim Rule
A determination has been made under the authority of the Secretary
of Defense that urgent and compelling reasons exist to publish an
interim rule prior to affording the public an opportunity to comment.
This interim rule provides policy for reimbursing labor costs on
competitively awarded DoD non-commercial time-and-materials and labor-
hour contracts. DoD believes it is in the best interests of the
Department to require the establishment of separate fixed hourly rates
for each category of labor performed by the contractor and each
subcontractor, and for each category of labor transferred between
divisions, subsidiaries, or affiliates of the contractor under a common
control. The reasons for this decision include--
(1) The relatively large dollar value of many DoD non-commercial
time-and-materials and labor-hour contracts;
(2) The significant oversight and legislative initiatives that have
focused on DoD in recent years; and
(3) The preponderance of DoD non-commercial time-and-materials and
labor-hour contracts performed by traditional DoD contractors and
subcontractors, who already have the necessary mechanisms in place to
establish separate fixed hourly rates for each performing entity
without significant administrative burden.
Comments received in response to this interim rule will be
considered in the formation of the final rule.
[[Page 74471]]
List of Subjects in 48 CFR Parts 216 and 252
Government procurement.
Michele P. Peterson,
Editor, Defense Acquisition Regulations System.
0
Therefore, 48 CFR parts 216 and 252 are amended as follows:
0
1. The authority citation for 48 CFR parts 216 and 252 continues to
read as follows:
Authority: 41 U.S.C. 421 and 48 CFR Chapter 1.
PART 216--TYPES OF CONTRACTS
0
2. Section 216.601 is added to read as follows:
216.601 Time-and-materials contracts.
(e) Solicitation provisions. Use the provision at FAR 52.216-29,
Time-and-Materials/Labor-Hour Proposal Requirements--Non-Commercial
Item Acquisition with Adequate Price Competition, with 252.216-7002,
Alternate A, in solicitations contemplating the use of a time-and-
materials or labor-hour contract type for non-commercial items if the
price is expected to be based on adequate competition.
PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
0
3. Section 252.216-7002 is added to read as follows:
252.216-7002 Alternate A, Time-and-Materials/Labor-Hour Proposal
Requirements--Non-Commercial Item Acquisition with Adequate Price
Competition.
As prescribed in 216.601(e), substitute the following paragraph (c)
for paragraph (c) of the provision at FAR 52.216-29:
ALTERNATE A, TIME-AND-MATERIALS/LABOR-HOUR PROPOSAL REQUIREMENTS--NON-
COMMERCIAL ITEM ACQUISITION WITH ADEQUATE PRICE COMPETITION (FEB. 2007)
(c) The offeror must establish fixed hourly rates using separate
rates for each category of labor to be performed by each subcontractor
and for each category of labor to be performed by the offeror, and for
each category of labor to be transferred between divisions,
subsidiaries, or affiliates of the offeror under a common control.
[FR Doc. 06-9602 Filed 12-6-06; 9:16 am]
BILLING CODE 5001-08-P