Cost Accounting Standards Board; Contract Clauses, 32829-32830 [E7-11332]

Download as PDF Federal Register / Vol. 72, No. 114 / Thursday, June 14, 2007 / Proposed Rules List of Subjects in 26 CFR Part 1 Income taxes, Reporting and recordkeeping requirements. Proposed Amendments to the Regulations Accordingly, 26 CFR part 1 is proposed to be amended as follows: PART 1—INCOME TAXES Paragraph 1. The authority citation for part 1 is amended by adding an entry in numerical order to read as follows: Authority: 26 U.S.C. 7805 * * * Section 1.382–7 is also issued under 26 U.S.C. 382(m). * * * Par. 2. Section 1.382–7 is added to read as follows: § 1.382–7 Built-in gains and losses. [The text of this proposed section is the same as the text of § 1.382–7T(a) through (b)(1) published elsewhere in this issue of the Federal Register]. Kevin M. Brown, Deputy Commissioner for Services and Enforcement. [FR Doc. E7–11444 Filed 6–13–07; 8:45 am] BILLING CODE 4830–01–P OFFICE OF MANAGEMENT AND BUDGET Office of Federal Procurement Policy 48 CFR Part 9903 Cost Accounting Standards Board; Contract Clauses Cost Accounting Standards Board, Office of Federal Procurement Policy, OMB. ACTION: Proposed rule with request for comment. AGENCY: SUMMARY: The Cost Accounting Standards (CAS) Board is proposing to add a clause for inclusion in CAScovered contracts and subcontracts awarded to foreign concerns. The Board is taking this action to provide a standard clause for use by Government and contractor personnel in applying the CAS requirements to contracts and subcontracts awarded to foreign concerns. Interested parties should submit comments in writing on or before August 13, 2007. ADDRESSES: Due to delays in OMB’s receipt and processing of mail, respondents are strongly encouraged to submit comments electronically to ensure timely receipt. Comments should indicate case number CAS–2007–01N. jlentini on PROD1PC65 with PROPOSALS DATES: VerDate Aug<31>2005 16:03 Jun 13, 2007 Jkt 211001 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, Corel WordPerfect, or as a pdf. 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. If you must submit via regular mail, please do so at Office of Federal Procurement Policy, 725 17th Street, NW., Room 9013, Washington, DC 20503, ATTN: Laura Auletta. FOR FURTHER INFORMATION CONTACT: Laura Auletta, Manager, Cost Accounting Standards Board, 725 17th Street, NW., Room 9013, Washington, DC 20503 (telephone: 202–395–3256). SUPPLEMENTARY INFORMATION: A. Background Prior to November 4, 1993, modified CAS coverage required a contractor to comply with only CAS 401 and CAS 402. Similarly, 9903.201–1(b)(4) required that foreign concerns comply with only CAS 401 and 402. Thus, prior to November 4, 1993, the contract clause at 9903.201–4(c) was used for both contracts with modified coverage and contracts with foreign concerns. However, on November 4, 1993, the Board revised the definition of modified coverage to include CAS 405 and 406, so that modified coverage currently includes CAS 401, 402, 405, and 406 (see 9903.201–2(b)). In conjunction with the revised definition of modified coverage, the Board also amended the clause at 9903.201–4(c) to include CAS 405 and 406. However, the Board did not change the requirement that foreign concerns comply with only CAS 401 and 402. As a result, the contract clause at 9903.201–4(c) can no longer be used for foreign concerns without modification by the parties. The Board has developed a clause for use in contracts with foreign concerns that will not require modification. Except that it includes only CAS 401 and 402, this clause is identical to the clause currently applicable to contracts subject to modified coverage. To effect this change, the proposed rule would amend 9903.201–4, Contract Clauses, to include the new clause at (f), Disclosure and Consistency of Cost Accounting Practices—Foreign Concerns. B. Paperwork Reduction Act The Paperwork Reduction Act, Public Law 96–511, does not apply to this rulemaking, because this rule imposes no paperwork burden on offerors, PO 00000 Frm 00014 Fmt 4702 Sfmt 4702 32829 affected contractors and subcontractors, or members of the public which requires the approval of OMB under 44 U.S.C. 3501, et seq. C. Executive Order 12866 and the Regulatory Flexibility Act The economic impact of this rule on contractors and subcontractors is expected to be minor. As a result, the Board has determined this rule is not significant under the provisions of Executive Order 12866, and that a regulatory impact analysis will not be required. Furthermore, this rule will not have a significant impact on a substantial number of small businesses because small businesses are exempt from the application of the Cost Accounting Standards. Therefore, this rule does not require a regulatory flexibility analysis under the Regulatory Flexibility Act, 5 U.S.C. 601, et seq. D. Public Comments Interested persons are invited to participate by submitting data, views or arguments with respect to this proposed rule. All comments must be in writing and submitted to the address indicated in the ADDRESSES section. List of Subjects in 48 CFR Part 9903 Government procurement, Cost Accounting Standards. Paul A. Denett, Administrator, Office of Federal Procurement Policy. For the reasons set forth in this preamble, Chapter 99 of Title 48 of the Code of Federal Regulations is proposed to be amended as set forth below: PART 9903—CONTRACT COVERAGE 1. Section 9903.201–4 is proposed to be amended by adding a new paragraph (f). The proposed paragraph will read as follows: 9903.201–4 * Contract Clauses. * * * * (f) Disclosure and Consistency of Cost Accounting Practices—Foreign Concerns. (1) The contracting officer shall insert the clause set forth below, Disclosure and Consistency of Cost Accounting Practices—Foreign Concerns, in negotiated contracts when the contract is with a foreign concern and the contract is not otherwise exempt under 9903.201–1 (see 9903.201–2(e)). (2) The clause below requires the contractor to comply with 9904.401 and 9904.402, to disclose (if it meets certain requirements) actual cost accounting practices, and to follow consistently E:\FR\FM\14JNP1.SGM 14JNP1 32830 Federal Register / Vol. 72, No. 114 / Thursday, June 14, 2007 / Proposed Rules jlentini on PROD1PC65 with PROPOSALS disclosed and established cost accounting practices. Disclosure and Consistency of Cost Accounting Practices—Foreign Concerns (DATE) (a) The Contractor, in connection with this contract, shall— (1) Comply with the requirements of 9904.401, Consistency in Estimating, Accumulating, and Reporting Costs; and 9904.402, Consistency in Allocating Costs Incurred for the Same Purpose, in effect on the date of award of this contract, as indicated in Part 9904. (2) (CAS-covered Contracts Only) If it is a business unit of a company required to submit a Disclosure Statement, disclose in writing its cost accounting practices as required by 9903.202–1 through 9903.202–5. If the Contractor has notified the Contracting Officer that the Disclosure Statement contains trade secrets and commercial or financial information which is privileged and confidential, the Disclosure Statement shall be protected and shall not be released outside of the Government. (3)(i) Follow consistently the Contractor’s cost accounting practices. A change to such practices may be proposed, however, by either the Government or the Contractor, and the Contractor agrees to negotiate with the Contracting Officer the terms and conditions under which a change may be made. After the terms and conditions under which the change is to be made have been agreed to, the change must be applied prospectively to this contract, and the Disclosure Statement, if affected, must be amended accordingly. (ii) The Contractor shall, when the parties agree to a change to a cost accounting practice and the Contracting Officer has made the finding required in 9903.201–6(c) that the change is desirable and not detrimental to the interests of the Government, negotiate an equitable adjustment as provided in the Changes clause of this contract. In the absence of the required finding, no agreement may be made under this contract clause that will increase costs paid by the United States. (4) Agree to an adjustment of the contract price or cost allowance, as appropriate, if the Contractor or a subcontractor fails to comply with the applicable CAS or to follow any cost accounting practice, and such failure results in any increased costs paid by the United States. Such adjustment shall provide for recovery of the increased costs to the United States, together with interest thereon computed at the annual rate established under section 6621(a)(2) of the Internal Revenue Code of 1986 (26 U.S.C. 6621(a)(2)) for such period, VerDate Aug<31>2005 16:03 Jun 13, 2007 Jkt 211001 from the time the payment by the United States was made to the time the adjustment is effected. (b) If the parties fail to agree whether the Contractor has complied with an applicable CAS rule, or regulation as specified in Parts 9903 and 9904 and as to any cost adjustment demanded by the United States, such failure to agree will constitute a dispute under the Contract Disputes Act (41 U.S.C. 601). (c) The Contractor shall permit any authorized representatives of the Government to examine and make copies of any documents, papers, and records relating to compliance with the requirements of this clause. (d) The Contractor shall include in all negotiated subcontracts, which the Contractor enters into, the substance of this clause, except paragraph (b), and shall require such inclusion in all other subcontracts of any tier, except that— (1) If the subcontract is awarded to a business unit which pursuant to 9903.201–2 is subject to other types of CAS coverage, the substance of the applicable clause set forth in 9903.201– 4 shall be inserted. (2) This requirement shall apply only to negotiated subcontracts in excess of $650,000. (3) The requirement shall not apply to negotiated subcontracts otherwise exempt from the requirement to include a CAS clause as specified in 9903.201– 1. (End of Clause) [FR Doc. E7–11332 Filed 6–13–07; 8:45 am] BILLING CODE 3110–01–P DEPARTMENT OF COMMERCE National Oceanic and Atmospheric Administration 50 CFR Part 697 [Docket No. 070516106–7106–01; I.D. 041907A] RIN 0648–AV44 Atlantic Coastal Fisheries Cooperative Management Act Provisions; Weakfish Fishery National Marine Fisheries Service (NMFS), National Oceanic and Atmospheric Administration (NOAA), Commerce. ACTION: Proposed rule; request for comments. AGENCY: SUMMARY: NMFS proposes to decrease the incidental catch allowance for weakfish caught in the Exclusive Economic Zone (EEZ) from 300 lb (135 PO 00000 Frm 00015 Fmt 4702 Sfmt 4702 kg) to no more than 150 lb (67 kg) per day or trip, whichever is longer in duration. The intent of this proposed rule is to modify regulations for the Atlantic coast stock of weakfish to be more compatible with the Atlantic States Marine Fisheries Commission’s (Commission) Interstate Fishery Management Plan (ISFMP) for weakfish, as set forth in the Atlantic Coastal Fisheries Cooperative Management Act (Atlantic Coastal Act). DATES: Written comments must be received on or before July 16, 2007. ADDRESSES: You may submit comments by any of the following methods: • E-Mail: Weakfish.150@noaa.gov. Include in the subject line the following identifier: ‘‘Comments on Weakfish Bycatch 150.’’ • Federal e-rulemaking portal: http:/ www.regulations.gov • Mail: Chris Moore, Chief, Partnerships and Communications Division (SF8), Office of Sustainable Fisheries, National Marine Fisheries Service, 1315 East-West Highway, Suite 13317, Silver Spring, MD 20910. Mark the outside of the envelope: ‘‘Comments on Weakfish Bycatch 150 Proposed Rule.’’ • Fax: (301) 713–0596 FOR FURTHER INFORMATION CONTACT: Tom Meyer, 301–713–2334. SUPPLEMENTARY INFORMATION: Background NMFS is proposing to modify weakfish conservation measures in the EEZ under the authority of the Atlantic Coastal Fisheries Cooperative Management Act (Atlantic Coastal Act), 16 U.S.C. 5103, which states that, in the absence of an approved and implemented Fishery Management Plan under the Magnuson-Stevens Fishery Conservation and Management Act (Magnuson-Stevens Act) (16 U.S.C. 1801 et seq.) and, after consultation with the appropriate Fishery Management Council(s), the Secretary of Commerce (Secretary) may implement regulations to govern fishing in the EEZ, i.e., from 3 to 200 nm offshore. These regulations must be (1) compatible with the effective implementation of an ISFMP developed by the Commission, and (2) consistent with the national standards set forth in section 301 of the Magnuson-Stevens Act. On February 1, 2007, the Commission’s Weakfish Management Board (Board) approved Addendum II to Amendment 4 to the ISFMP for Weakfish. Under the Addendum, the states of Massachusetts through North Carolina will be required to implement a six fish creel limit at their current size E:\FR\FM\14JNP1.SGM 14JNP1

Agencies

[Federal Register Volume 72, Number 114 (Thursday, June 14, 2007)]
[Proposed Rules]
[Pages 32829-32830]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-11332]


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OFFICE OF MANAGEMENT AND BUDGET

Office of Federal Procurement Policy

48 CFR Part 9903


Cost Accounting Standards Board; Contract Clauses

AGENCY: Cost Accounting Standards Board, Office of Federal Procurement 
Policy, OMB.

ACTION: Proposed rule with request for comment.

-----------------------------------------------------------------------

SUMMARY: The Cost Accounting Standards (CAS) Board is proposing to add 
a clause for inclusion in CAS-covered contracts and subcontracts 
awarded to foreign concerns. The Board is taking this action to provide 
a standard clause for use by Government and contractor personnel in 
applying the CAS requirements to contracts and subcontracts awarded to 
foreign concerns.

DATES: Interested parties should submit comments in writing on or 
before August 13, 2007.

ADDRESSES: Due to delays in OMB's receipt and processing of mail, 
respondents are strongly encouraged to submit comments electronically 
to ensure timely receipt. Comments should indicate case number CAS-
2007-01N. 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, Corel 
WordPerfect, or as a pdf. 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. If you must submit via regular mail, please do so at 
Office of Federal Procurement Policy, 725 17th Street, NW., Room 9013, 
Washington, DC 20503, ATTN: Laura Auletta.

FOR FURTHER INFORMATION CONTACT: Laura Auletta, Manager, Cost 
Accounting Standards Board, 725 17th Street, NW., Room 9013, 
Washington, DC 20503 (telephone: 202-395-3256).

SUPPLEMENTARY INFORMATION: 

A. Background

    Prior to November 4, 1993, modified CAS coverage required a 
contractor to comply with only CAS 401 and CAS 402. Similarly, 
9903.201-1(b)(4) required that foreign concerns comply with only CAS 
401 and 402. Thus, prior to November 4, 1993, the contract clause at 
9903.201-4(c) was used for both contracts with modified coverage and 
contracts with foreign concerns.
    However, on November 4, 1993, the Board revised the definition of 
modified coverage to include CAS 405 and 406, so that modified coverage 
currently includes CAS 401, 402, 405, and 406 (see 9903.201-2(b)). In 
conjunction with the revised definition of modified coverage, the Board 
also amended the clause at 9903.201-4(c) to include CAS 405 and 406. 
However, the Board did not change the requirement that foreign concerns 
comply with only CAS 401 and 402. As a result, the contract clause at 
9903.201-4(c) can no longer be used for foreign concerns without 
modification by the parties.
    The Board has developed a clause for use in contracts with foreign 
concerns that will not require modification. Except that it includes 
only CAS 401 and 402, this clause is identical to the clause currently 
applicable to contracts subject to modified coverage. To effect this 
change, the proposed rule would amend 9903.201-4, Contract Clauses, to 
include the new clause at (f), Disclosure and Consistency of Cost 
Accounting Practices--Foreign Concerns.

B. Paperwork Reduction Act

    The Paperwork Reduction Act, Public Law 96-511, does not apply to 
this rulemaking, because this rule imposes no paperwork burden on 
offerors, affected contractors and subcontractors, or members of the 
public which requires the approval of OMB under 44 U.S.C. 3501, et seq.

C. Executive Order 12866 and the Regulatory Flexibility Act

    The economic impact of this rule on contractors and subcontractors 
is expected to be minor. As a result, the Board has determined this 
rule is not significant under the provisions of Executive Order 12866, 
and that a regulatory impact analysis will not be required. 
Furthermore, this rule will not have a significant impact on a 
substantial number of small businesses because small businesses are 
exempt from the application of the Cost Accounting Standards. 
Therefore, this rule does not require a regulatory flexibility analysis 
under the Regulatory Flexibility Act, 5 U.S.C. 601, et seq.

D. Public Comments

    Interested persons are invited to participate by submitting data, 
views or arguments with respect to this proposed rule. All comments 
must be in writing and submitted to the address indicated in the 
ADDRESSES section.

List of Subjects in 48 CFR Part 9903

    Government procurement, Cost Accounting Standards.

Paul A. Denett,
Administrator, Office of Federal Procurement Policy.

    For the reasons set forth in this preamble, Chapter 99 of Title 48 
of the Code of Federal Regulations is proposed to be amended as set 
forth below:

PART 9903--CONTRACT COVERAGE

    1. Section 9903.201-4 is proposed to be amended by adding a new 
paragraph (f). The proposed paragraph will read as follows:


9903.201-4  Contract Clauses.

* * * * *
    (f) Disclosure and Consistency of Cost Accounting Practices--
Foreign Concerns.
    (1) The contracting officer shall insert the clause set forth 
below, Disclosure and Consistency of Cost Accounting Practices--Foreign 
Concerns, in negotiated contracts when the contract is with a foreign 
concern and the contract is not otherwise exempt under 9903.201-1 (see 
9903.201-2(e)).
    (2) The clause below requires the contractor to comply with 
9904.401 and 9904.402, to disclose (if it meets certain requirements) 
actual cost accounting practices, and to follow consistently

[[Page 32830]]

disclosed and established cost accounting practices.
Disclosure and Consistency of Cost Accounting Practices--Foreign 
Concerns (DATE)
    (a) The Contractor, in connection with this contract, shall--
    (1) Comply with the requirements of 9904.401, Consistency in 
Estimating, Accumulating, and Reporting Costs; and 9904.402, 
Consistency in Allocating Costs Incurred for the Same Purpose, in 
effect on the date of award of this contract, as indicated in Part 
9904.
    (2) (CAS-covered Contracts Only) If it is a business unit of a 
company required to submit a Disclosure Statement, disclose in writing 
its cost accounting practices as required by 9903.202-1 through 
9903.202-5. If the Contractor has notified the Contracting Officer that 
the Disclosure Statement contains trade secrets and commercial or 
financial information which is privileged and confidential, the 
Disclosure Statement shall be protected and shall not be released 
outside of the Government.
    (3)(i) Follow consistently the Contractor's cost accounting 
practices. A change to such practices may be proposed, however, by 
either the Government or the Contractor, and the Contractor agrees to 
negotiate with the Contracting Officer the terms and conditions under 
which a change may be made. After the terms and conditions under which 
the change is to be made have been agreed to, the change must be 
applied prospectively to this contract, and the Disclosure Statement, 
if affected, must be amended accordingly.
    (ii) The Contractor shall, when the parties agree to a change to a 
cost accounting practice and the Contracting Officer has made the 
finding required in 9903.201-6(c) that the change is desirable and not 
detrimental to the interests of the Government, negotiate an equitable 
adjustment as provided in the Changes clause of this contract. In the 
absence of the required finding, no agreement may be made under this 
contract clause that will increase costs paid by the United States.
    (4) Agree to an adjustment of the contract price or cost allowance, 
as appropriate, if the Contractor or a subcontractor fails to comply 
with the applicable CAS or to follow any cost accounting practice, and 
such failure results in any increased costs paid by the United States. 
Such adjustment shall provide for recovery of the increased costs to 
the United States, together with interest thereon computed at the 
annual rate established under section 6621(a)(2) of the Internal 
Revenue Code of 1986 (26 U.S.C. 6621(a)(2)) for such period, from the 
time the payment by the United States was made to the time the 
adjustment is effected.
    (b) If the parties fail to agree whether the Contractor has 
complied with an applicable CAS rule, or regulation as specified in 
Parts 9903 and 9904 and as to any cost adjustment demanded by the 
United States, such failure to agree will constitute a dispute under 
the Contract Disputes Act (41 U.S.C. 601).
    (c) The Contractor shall permit any authorized representatives of 
the Government to examine and make copies of any documents, papers, and 
records relating to compliance with the requirements of this clause.
    (d) The Contractor shall include in all negotiated subcontracts, 
which the Contractor enters into, the substance of this clause, except 
paragraph (b), and shall require such inclusion in all other 
subcontracts of any tier, except that--
    (1) If the subcontract is awarded to a business unit which pursuant 
to 9903.201-2 is subject to other types of CAS coverage, the substance 
of the applicable clause set forth in 9903.201-4 shall be inserted.
    (2) This requirement shall apply only to negotiated subcontracts in 
excess of $650,000.
    (3) The requirement shall not apply to negotiated subcontracts 
otherwise exempt from the requirement to include a CAS clause as 
specified in 9903.201-1.


(End of Clause)

[FR Doc. E7-11332 Filed 6-13-07; 8:45 am]
BILLING CODE 3110-01-P

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