Cost Accounting Standards Board; Contract Clauses, 15939-15942 [E8-5981]
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Federal Register / Vol. 73, No. 59 / Wednesday, March 26, 2008 / Rules and Regulations
final OMB approval, on any information
collection requirements set forth in
rulemaking.
This rule will not impose any
information collection burden or affect
information currently collected by OIG.
IV. Inspection of Public Comments
All comments received before the end
of the comment period are available for
viewing by the public. All comments
will be posted on https://
www.regulations.gov as soon as possible
after they have been received.
Comments received timely will also be
available for public inspection as they
are received at Office of Inspector
General, Department of Health and
Human Services, Cohen Building, 330
Independence Avenue, SW.,
Washington, DC 20201, Monday
through Friday of each week from 8:30
a.m. to 4 p.m. To schedule an
appointment to view public comments,
phone (202) 619–0089.
List of Subjects in 42 CFR Part 1008
Administrative practice and
procedure, Fraud, Grant programs—
health, Health facilities, Health
professions, Medicaid, Medicare,
Penalties.
I Accordingly, 42 CFR chapter V,
subchapter B is mended as set forth
below:
PART 1008—[AMENDED]
1. The authority citation for part 1008
continues to read as follows:
I
Authority: 42 U.S.C. 1320a–7d(b)
2. Section 1008.31 is amended by
revising paragraph (b) to read as follows:
I
§ 1008.31 OIG fees for the cost of advisory
opinions.
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(b) Payment Method. Payment for a
request for an advisory opinion must be
made to the Treasury of the United
States, as directed by OIG.
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I 3. Section 1008.36 is amended by
removing paragraph (b)(6) and
redesignating paragraphs (b)(7) and
(b)(8) as (b)(6) and (b)(7) respectively.
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I 4. Section 1008.43 is amended by
revising paragraph (d) to read as
follows:
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§ 1008.43
opinion.
Issuance of a formal advisory
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(d) After OIG has notified the
requestor of the full amount owed and
OIG has determined that the full
payment of that amount has been
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properly paid by the requestor, OIG will
issue the advisory opinion and
promptly mail it to the requestor by
regular first class U.S. mail.
Dated: January 30, 2008.
Daniel R. Levinson,
Inspector General.
Approved: February 28, 2008.
Michael O. Leavitt, Secretary.
[FR Doc. E8–6164 Filed 3–25–08; 8:45 am]
BILLING CODE 4152–01–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: Final rule.
AGENCY:
SUMMARY: The Cost Accounting
Standards (CAS) Board has adopted,
without change, a final rule 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: Effective Date: April 25, 2008.
FOR FURTHER INFORMATION CONTACT:
Laura Auletta, Manager, Cost
Accounting Standards Board, 725 17th
Street, NW., Room 9013, Washington,
DC 20503 (telephone: 202–395–3256).
Reference CAS–2007–01F.
SUPPLEMENTARY INFORMATION:
A. Background
The CAS Board published a proposed
rule on June 14, 2007 (72 FR 32829) to
provide a clause for use in contracts
with foreign concerns. 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
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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) could not be used for
foreign concerns without modification
by the parties.
This final rule provides 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, this final rule amends
9903.201–4, Contract Clauses, to
include the new clause at (f), Disclosure
and Consistency of Cost Accounting
Practices—Foreign Concerns.
The Board received no public
comments in response to the proposed
rule and has adopted the proposed rule
as a final rule without change.
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. Regulatory Flexibility Act, Unfunded
Mandates Reform Act, Congressional
Review Act, and Executive Orders
12866 and 13132
The Board certifies that this rule will
not have a significant effect on a
substantial number of small entities
within the meaning of the Regulatory
Flexibility Act, 5 U.S.C. 601, et seq.,
because small businesses are exempt
from the application of the Cost
Accounting Standards. For purposes of
the Unfunded Mandates Reform Act of
1995, as well as Executive Orders 12866
and 13132, the final rule will not
significantly or uniquely affect small
governments, does not have federalism
implications, and will not result in
increased expenditures by State, local,
and tribal governments, or by the
private sector, of $100 million or more.
In addition, the Board has determined
that this rule is not economically
significant under the provisions of
Executive Order 12866 or otherwise
subject to Executive Order 12866
review. Finally, the final rule is not a
‘‘major rule’’ under 5 U.S.C. Chapter 8;
the rule will not have any of the effects
set forth in 5 U.S.C. 804(2).
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Federal Register / Vol. 73, No. 59 / Wednesday, March 26, 2008 / Rules and Regulations
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 amended
as set forth below:
I
PART 9903—CONTRACT COVERAGE
1. The authority citation for part 9903
continues to read as follows:
I
Authority: Pub. L. 100–679, 102 Stat. 4056,
41 U.S.C. 422.
Subpart 9903.2—CAS Program
Requirements
2. Section 9903.201–4 is revised to
read as follows:
I
9903.201–4
Contract clauses.
(a) Cost Accounting Standards. (1)
The contracting officer shall insert the
clause set forth below, Cost Accounting
Standards, in negotiated contracts,
unless the contract is exempted (see
9903.201–1), the contract is subject to
modified coverage (see 9903.201–2), or
the clause prescribed in paragraph (e) of
this section is used.
(2) The clause below requires the
contractor to comply with all CAS
specified in part 9904, to disclose actual
cost accounting practices (applicable to
CAS-covered contracts only), and to
follow disclosed and established cost
accounting practices consistently.
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COST ACCOUNTING STANDARDS
(JUNE 2007)
(a) Unless the contract is exempt under
9903.201–1 and 9903.201–2, the provisions
of 9903 are incorporated herein by reference
and the Contractor in connection with this
contract, shall—
(1) (CAS-covered Contracts Only) By
submission of a Disclosure Statement,
disclosed in writing the Contractor’s cost
accounting practices as required by
9903.202–1 through 9903.202–5 including
methods of distinguishing direct costs from
indirect costs and the basis used for
allocating indirect costs. The practices
disclosed for this contract shall be the same
as the practices currently disclosed and
applied on all other contracts and
subcontracts being performed by the
Contractor and which contain a Cost
Accounting Standards (CAS) clause. 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.
(2) Follow consistently the Contractor’s
cost accounting practices in accumulating
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and reporting contract performance cost data
concerning this contract. If any change in
cost accounting practices is made for the
purposes of any contract or subcontract
subject to CAS requirements, the change
must be applied prospectively to this
contract and the Disclosure Statement must
be amended accordingly. If the contract price
or cost allowance of this contract is affected
by such changes, adjustment shall be made
in accordance with subparagraph (a)(4) or
(a)(5) of this clause, as appropriate.
(3) Comply with all CAS, including any
modifications and interpretations indicated
thereto contained in part 9904, in effect on
the date of award of this contract or, if the
Contractor has submitted cost or pricing data,
on the date of final agreement on price as
shown on the Contractor’s signed certificate
of current cost or pricing data. The
Contractor shall also comply with any CAS
(or modifications to CAS) which hereafter
become applicable to a contract or
subcontract of the Contractor. Such
compliance shall be required prospectively
from the date of applicability of such contract
or subcontract.
(4)(i) Agree to an equitable adjustment as
provided in the Changes clause of this
contract if the contract cost is affected by a
change which, pursuant to subparagraph
(a)(3) of this clause, the Contractor is
required to make to the Contractor’s
established cost accounting practices.
(ii) Negotiate with the Contracting Officer
to determine the terms and conditions under
which a change may be made to a cost
accounting practice, other than a change
made under other provisions of subparagraph
(a)(4) of this clause; provided that no
agreement may be made under this provision
that will increase costs paid by the United
States.
(iii) When the parties agree to a change to
a cost accounting practice, other than a
change under subdivision (a)(4)(i) of this
clause, negotiate an equitable adjustment as
provided in the Changes clause of this
contract.
(5) Agree to an adjustment of the contract
price or cost allowance, as appropriate, if the
Contractor or a subcontractor fails to comply
with an applicable Cost Accounting
Standard, or to follow any cost accounting
practice consistently 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. In no case shall
the Government recover costs greater than
the increased cost to the Government, in the
aggregate, on the relevant contracts subject to
the price adjustment, unless the Contractor
made a change in its cost accounting
practices of which it was aware or should
have been aware at the time of price
negotiations and which it failed to disclose
to the Government.
(b) If the parties fail to agree whether the
Contractor or a subcontractor has complied
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with an applicable CAS in part 9904 or a
CAS rule or regulation in part 9903 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, or 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, including the obligation to comply with
all CAS in effect on the subcontractor’s
award date or if the subcontractor has
submitted cost or pricing data, on the date of
final agreement on price as shown on the
subcontractor’s signed Certificate of Current
Cost or Pricing Data. 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. This requirement shall
apply only to negotiated subcontracts in
excess of $650,000, except that 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)
(b) [Reserved]
(c) Disclosure and Consistency of Cost
Accounting Practices. (1) The
contracting officer shall insert the clause
set forth below, Disclosure and
Consistency of Cost Accounting
Practices, in negotiated contracts when
the contract amount is over $650,000
but less than $50 million, and the
offeror certifies it is eligible for and
elects to use modified CAS coverage
(see 9903.201–2, unless the clause
prescribed in paragraph (d) of this
subsection is used).
(2) The clause below requires the
contractor to comply with CAS
9904.401, 9904.402, 9904.405, and
9904.406, to disclose (if it meets certain
requirements) actual cost accounting
practices, and to follow consistently
disclosed and established cost
accounting practices.
DISCLOSURE AND CONSISTENCY OF
COST ACCOUNTING PRACTICES
(JUNE 2007)
(a) The Contractor, in connection with this
contract, shall—
(1) Comply with the requirements of
9904.401, Consistency in Estimating,
Accumulating, and Reporting Costs;
9904.402, Consistency in Allocating Costs
Incurred for the Same Purpose; 9904.405,
Accounting for Unallowable Costs; and
9904.406, Cost Accounting Standard—Cost
Accounting Period, in effect on the date of
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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.
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(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)
(d) [Reserved]
(e) Cost Accounting Standards—
Educational Institutions. (1) The
contracting officer shall insert the clause
set forth below, Cost Accounting
Standards—Educational Institution, in
negotiated contracts awarded to
educational institutions, unless the
contract is exempted (see 9903.201–1),
the contract is to be performed by an
FFRDC (see 9903.201–2(c)(5)), or the
provision at 9903.201–2(c)(6) applies.
(2) The clause below requires the
educational institution to comply with
all CAS specified in part 9905, to
disclose actual cost accounting practices
as required by 9903.202–1(f), and to
follow disclosed and established cost
accounting practices consistently.
COST ACCOUNTING STANDARDS—
EDUCATIONAL INSTITUTIONS (JUNE
2007)
(a) Unless the contract is exempt under
9903.201–1 and 9903.201–2, the provisions
of part 9903 are incorporated herein by
reference and the Contractor in connection
with this contract, shall—
(1) (CAS-covered Contracts Only) If a
business unit of an educational institution
required to submit a Disclosure Statement,
disclose in writing the Contractor’s cost
accounting practices as required by
9903.202–1 through 9903.202–5 including
methods of distinguishing direct costs from
indirect costs and the basis used for
accumulating and allocating indirect costs.
The practices disclosed for this contract shall
be the same as the practices currently
disclosed and applied on all other contracts
and subcontracts being performed by the
Contractor and which contain a Cost
Accounting Standards (CAS) clause. 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.
(2) Follow consistently the Contractor’s
cost accounting practices in accumulating
and reporting contract performance cost data
concerning this contract. If any change in
cost accounting practices is made for the
purposes of any contract or subcontract
subject to CAS requirements, the change
must be applied prospectively to this
contract and the Disclosure Statement, if
required, must be amended accordingly. If an
accounting principle change mandated under
Office of Management and Budget (OMB)
Circular A–21, Cost Principles for
Educational Institutions, requires that a
change in the Contractor’s cost accounting
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15941
practices be made after the date of this
contract award, the change must be applied
prospectively to this contract and the
Disclosure Statement, if required, must be
amended accordingly. If the contract price or
cost allowance of this contract is affected by
such changes, adjustment shall be made in
accordance with subparagraph (a)(4) or (a)(5)
of this clause, as appropriate.
(3) Comply with all CAS, including any
modifications and interpretations indicated
thereto contained in 48 CFR part 9905, in
effect on the date of award of this contract
or, if the Contractor has submitted cost or
pricing data, on the date of final agreement
on price as shown on the Contractor’s signed
certificate of current cost or pricing data. The
Contractor shall also comply with any CAS
(or modifications to CAS) which hereafter
become applicable to a contract or
subcontract of the Contractor. Such
compliance shall be required prospectively
from the date of applicability to such contract
or subcontract.
(4)(i) Agree to an equitable adjustment as
provided in the Changes clause of this
contract if the contract cost is affected by a
change which, pursuant to subparagraph
(a)(3) of this clause, the Contractor is
required to make to the Contractor’s
established cost accounting practices.
(ii) Negotiate with the Contracting Officer
to determine the terms and conditions under
which a change may be made to a cost
accounting practice, other than a change
made under other provisions of subparagraph
(a)(4) of this clause; provided that no
agreement may be made under this provision
that will increase costs paid by the United
States.
(iii) When the parties agree to a change to
a cost accounting practice, other than a
change under subdivision (a)(4)(i) or (a)(4)(iv)
of this clause, negotiate an equitable
adjustment as provided in the Changes clause
of this contract.
(iv) Agree to an equitable adjustment as
provided in the Changes clause of this
contract, if the contract cost is materially
affected by an OMB Circular A–21
accounting principle amendment which, on
becoming effective after the date of contract
award, requires the Contractor to make a
change to the Contractor’s established cost
accounting practices.
(5) Agree to an adjustment of the contract
price or cost allowance, as appropriate, if the
Contractor or a subcontractor fails to comply
with an applicable Cost Accounting
Standard, or to follow any cost accounting
practice consistently 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. In no case shall
the Government recover costs greater than
the increased cost to the Government, in the
aggregate, on the relevant contracts subject to
the price adjustment, unless the Contractor
made a change in its cost accounting
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practices of which it was aware or should
have been aware at the time of price
negotiations and which it failed to disclose
to the Government.
(b) If the parties fail to agree whether the
Contractor or a subcontractor has complied
with an applicable CAS or a CAS rule or
regulation in 9903 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, or 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, including the obligation to comply with
all applicable CAS in effect on the
subcontractor’s award date or if the
subcontractor has submitted cost or pricing
data, on the date of final agreement on price
as shown on the subcontractor’s signed
Certificate of Current Cost or Pricing Data,
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; and
(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)
(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
disclosed and established cost
accounting practices.
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DISCLOSURE AND CONSISTENCY OF
COST ACCOUNTING PRACTICES—
FOREIGN CONCERNS (April 25, 2008)
(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
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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
PO 00000
Frm 00082
Fmt 4700
Sfmt 4700
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. E8–5981 Filed 3–24–08; 8:45 am]
BILLING CODE 3110–01–P
DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric
Administration
50 CFR Part 679
[Docket No. 071106671–8010–02]
RIN 0648–XG62
Fisheries of the Exclusive Economic
Zone Off Alaska; Shallow-Water
Species Fishery by Vessels Using
Trawl Gear in the Gulf of Alaska
National Marine Fisheries
Service (NMFS), National Oceanic and
Atmospheric Administration (NOAA),
Commerce.
ACTION: Temporary rule; modification of
a closure.
AGENCY:
SUMMARY: NMFS is opening directed
fishing for shallow-water species by
vessels using trawl gear in the Gulf of
Alaska (GOA). This action is necessary
to allow the shallow-water species
fishery in the GOA to resume.
DATES: Effective 1200 hrs, Alaska local
time (A.l.t.), March 21, 2008, through
1200 hrs, A.l.t., April 1, 2008.
Comments must be received at the
following address no later than 4:30
p.m., A.l.t., April 7, 2008.
ADDRESSES: Send comments to Sue
Salveson, Assistant Regional
Administrator, Sustainable Fisheries
Division, Alaska Region, NMFS, Attn:
Ellen Sebastian. You may submit
comments, identified by 0648–XG62, by
any one of the following methods:
• Electronic Submissions: Submit all
electronic public comments via the
Federal eRulemaking Portal website at
https://www.regulations.gov;
• Mail: P.O. Box 21668, Juneau, AK
99802;
• Fax: (907) 586–7557; or
• Hand delivery to the Federal
Building: 709 West 9th Street, Room
420A, Juneau, AK.
Instructions: All comments received
are a part of the public record and will
generally be posted to https://
www.regulations.gov without change.
E:\FR\FM\26MRR1.SGM
26MRR1
]]>Agencies
[Federal Register Volume 73, Number 59 (Wednesday, March 26, 2008)]
[Rules and Regulations]
[Pages 15939-15942]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-5981]
=======================================================================
-----------------------------------------------------------------------
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: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Cost Accounting Standards (CAS) Board has adopted, without
change, a final rule 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: Effective Date: April 25, 2008.
FOR FURTHER INFORMATION CONTACT: Laura Auletta, Manager, Cost
Accounting Standards Board, 725 17th Street, NW., Room 9013,
Washington, DC 20503 (telephone: 202-395-3256). Reference CAS-2007-01F.
SUPPLEMENTARY INFORMATION:
A. Background
The CAS Board published a proposed rule on June 14, 2007 (72 FR
32829) to provide a clause for use in contracts with foreign concerns.
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) could not be used for foreign concerns without
modification by the parties.
This final rule provides 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, this final rule amends 9903.201-4, Contract Clauses, to include
the new clause at (f), Disclosure and Consistency of Cost Accounting
Practices--Foreign Concerns.
The Board received no public comments in response to the proposed
rule and has adopted the proposed rule as a final rule without change.
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. Regulatory Flexibility Act, Unfunded Mandates Reform Act,
Congressional Review Act, and Executive Orders 12866 and 13132
The Board certifies that this rule will not have a significant
effect on a substantial number of small entities within the meaning of
the Regulatory Flexibility Act, 5 U.S.C. 601, et seq., because small
businesses are exempt from the application of the Cost Accounting
Standards. For purposes of the Unfunded Mandates Reform Act of 1995, as
well as Executive Orders 12866 and 13132, the final rule will not
significantly or uniquely affect small governments, does not have
federalism implications, and will not result in increased expenditures
by State, local, and tribal governments, or by the private sector, of
$100 million or more. In addition, the Board has determined that this
rule is not economically significant under the provisions of Executive
Order 12866 or otherwise subject to Executive Order 12866 review.
Finally, the final rule is not a ``major rule'' under 5 U.S.C. Chapter
8; the rule will not have any of the effects set forth in 5 U.S.C.
804(2).
[[Page 15940]]
List of Subjects in 48 CFR Part 9903
Government procurement, Cost Accounting Standards.
Paul A. Denett,
Administrator, Office of Federal Procurement Policy.
0
For the reasons set forth in this preamble, Chapter 99 of Title 48 of
the Code of Federal Regulations is amended as set forth below:
PART 9903--CONTRACT COVERAGE
0
1. The authority citation for part 9903 continues to read as follows:
Authority: Pub. L. 100-679, 102 Stat. 4056, 41 U.S.C. 422.
Subpart 9903.2--CAS Program Requirements
0
2. Section 9903.201-4 is revised to read as follows:
9903.201-4 Contract clauses.
(a) Cost Accounting Standards. (1) The contracting officer shall
insert the clause set forth below, Cost Accounting Standards, in
negotiated contracts, unless the contract is exempted (see 9903.201-1),
the contract is subject to modified coverage (see 9903.201-2), or the
clause prescribed in paragraph (e) of this section is used.
(2) The clause below requires the contractor to comply with all CAS
specified in part 9904, to disclose actual cost accounting practices
(applicable to CAS-covered contracts only), and to follow disclosed and
established cost accounting practices consistently.
COST ACCOUNTING STANDARDS (JUNE 2007)
(a) Unless the contract is exempt under 9903.201-1 and 9903.201-
2, the provisions of 9903 are incorporated herein by reference and
the Contractor in connection with this contract, shall--
(1) (CAS-covered Contracts Only) By submission of a Disclosure
Statement, disclosed in writing the Contractor's cost accounting
practices as required by 9903.202-1 through 9903.202-5 including
methods of distinguishing direct costs from indirect costs and the
basis used for allocating indirect costs. The practices disclosed
for this contract shall be the same as the practices currently
disclosed and applied on all other contracts and subcontracts being
performed by the Contractor and which contain a Cost Accounting
Standards (CAS) clause. 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.
(2) Follow consistently the Contractor's cost accounting
practices in accumulating and reporting contract performance cost
data concerning this contract. If any change in cost accounting
practices is made for the purposes of any contract or subcontract
subject to CAS requirements, the change must be applied
prospectively to this contract and the Disclosure Statement must be
amended accordingly. If the contract price or cost allowance of this
contract is affected by such changes, adjustment shall be made in
accordance with subparagraph (a)(4) or (a)(5) of this clause, as
appropriate.
(3) Comply with all CAS, including any modifications and
interpretations indicated thereto contained in part 9904, in effect
on the date of award of this contract or, if the Contractor has
submitted cost or pricing data, on the date of final agreement on
price as shown on the Contractor's signed certificate of current
cost or pricing data. The Contractor shall also comply with any CAS
(or modifications to CAS) which hereafter become applicable to a
contract or subcontract of the Contractor. Such compliance shall be
required prospectively from the date of applicability of such
contract or subcontract.
(4)(i) Agree to an equitable adjustment as provided in the
Changes clause of this contract if the contract cost is affected by
a change which, pursuant to subparagraph (a)(3) of this clause, the
Contractor is required to make to the Contractor's established cost
accounting practices.
(ii) Negotiate with the Contracting Officer to determine the
terms and conditions under which a change may be made to a cost
accounting practice, other than a change made under other provisions
of subparagraph (a)(4) of this clause; provided that no agreement
may be made under this provision that will increase costs paid by
the United States.
(iii) When the parties agree to a change to a cost accounting
practice, other than a change under subdivision (a)(4)(i) of this
clause, negotiate an equitable adjustment as provided in the Changes
clause of this contract.
(5) Agree to an adjustment of the contract price or cost
allowance, as appropriate, if the Contractor or a subcontractor
fails to comply with an applicable Cost Accounting Standard, or to
follow any cost accounting practice consistently 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. In no case shall the Government recover costs greater
than the increased cost to the Government, in the aggregate, on the
relevant contracts subject to the price adjustment, unless the
Contractor made a change in its cost accounting practices of which
it was aware or should have been aware at the time of price
negotiations and which it failed to disclose to the Government.
(b) If the parties fail to agree whether the Contractor or a
subcontractor has complied with an applicable CAS in part 9904 or a
CAS rule or regulation in part 9903 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, or 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, including the obligation to comply with
all CAS in effect on the subcontractor's award date or if the
subcontractor has submitted cost or pricing data, on the date of
final agreement on price as shown on the subcontractor's signed
Certificate of Current Cost or Pricing Data. 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. This requirement
shall apply only to negotiated subcontracts in excess of $650,000,
except that 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)
(b) [Reserved]
(c) Disclosure and Consistency of Cost Accounting Practices. (1)
The contracting officer shall insert the clause set forth below,
Disclosure and Consistency of Cost Accounting Practices, in negotiated
contracts when the contract amount is over $650,000 but less than $50
million, and the offeror certifies it is eligible for and elects to use
modified CAS coverage (see 9903.201-2, unless the clause prescribed in
paragraph (d) of this subsection is used).
(2) The clause below requires the contractor to comply with CAS
9904.401, 9904.402, 9904.405, and 9904.406, to disclose (if it meets
certain requirements) actual cost accounting practices, and to follow
consistently disclosed and established cost accounting practices.
DISCLOSURE AND CONSISTENCY OF COST ACCOUNTING PRACTICES (JUNE 2007)
(a) The Contractor, in connection with this contract, shall--
(1) Comply with the requirements of 9904.401, Consistency in
Estimating, Accumulating, and Reporting Costs; 9904.402, Consistency
in Allocating Costs Incurred for the Same Purpose; 9904.405,
Accounting for Unallowable Costs; and 9904.406, Cost Accounting
Standard--Cost Accounting Period, in effect on the date of
[[Page 15941]]
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)
(d) [Reserved]
(e) Cost Accounting Standards--Educational Institutions. (1) The
contracting officer shall insert the clause set forth below, Cost
Accounting Standards--Educational Institution, in negotiated contracts
awarded to educational institutions, unless the contract is exempted
(see 9903.201-1), the contract is to be performed by an FFRDC (see
9903.201-2(c)(5)), or the provision at 9903.201-2(c)(6) applies.
(2) The clause below requires the educational institution to comply
with all CAS specified in part 9905, to disclose actual cost accounting
practices as required by 9903.202-1(f), and to follow disclosed and
established cost accounting practices consistently.
COST ACCOUNTING STANDARDS--EDUCATIONAL INSTITUTIONS (JUNE 2007)
(a) Unless the contract is exempt under 9903.201-1 and 9903.201-
2, the provisions of part 9903 are incorporated herein by reference
and the Contractor in connection with this contract, shall--
(1) (CAS-covered Contracts Only) If a business unit of an
educational institution required to submit a Disclosure Statement,
disclose in writing the Contractor's cost accounting practices as
required by 9903.202-1 through 9903.202-5 including methods of
distinguishing direct costs from indirect costs and the basis used
for accumulating and allocating indirect costs. The practices
disclosed for this contract shall be the same as the practices
currently disclosed and applied on all other contracts and
subcontracts being performed by the Contractor and which contain a
Cost Accounting Standards (CAS) clause. 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.
(2) Follow consistently the Contractor's cost accounting
practices in accumulating and reporting contract performance cost
data concerning this contract. If any change in cost accounting
practices is made for the purposes of any contract or subcontract
subject to CAS requirements, the change must be applied
prospectively to this contract and the Disclosure Statement, if
required, must be amended accordingly. If an accounting principle
change mandated under Office of Management and Budget (OMB) Circular
A-21, Cost Principles for Educational Institutions, requires that a
change in the Contractor's cost accounting practices be made after
the date of this contract award, the change must be applied
prospectively to this contract and the Disclosure Statement, if
required, must be amended accordingly. If the contract price or cost
allowance of this contract is affected by such changes, adjustment
shall be made in accordance with subparagraph (a)(4) or (a)(5) of
this clause, as appropriate.
(3) Comply with all CAS, including any modifications and
interpretations indicated thereto contained in 48 CFR part 9905, in
effect on the date of award of this contract or, if the Contractor
has submitted cost or pricing data, on the date of final agreement
on price as shown on the Contractor's signed certificate of current
cost or pricing data. The Contractor shall also comply with any CAS
(or modifications to CAS) which hereafter become applicable to a
contract or subcontract of the Contractor. Such compliance shall be
required prospectively from the date of applicability to such
contract or subcontract.
(4)(i) Agree to an equitable adjustment as provided in the
Changes clause of this contract if the contract cost is affected by
a change which, pursuant to subparagraph (a)(3) of this clause, the
Contractor is required to make to the Contractor's established cost
accounting practices.
(ii) Negotiate with the Contracting Officer to determine the
terms and conditions under which a change may be made to a cost
accounting practice, other than a change made under other provisions
of subparagraph (a)(4) of this clause; provided that no agreement
may be made under this provision that will increase costs paid by
the United States.
(iii) When the parties agree to a change to a cost accounting
practice, other than a change under subdivision (a)(4)(i) or
(a)(4)(iv) of this clause, negotiate an equitable adjustment as
provided in the Changes clause of this contract.
(iv) Agree to an equitable adjustment as provided in the Changes
clause of this contract, if the contract cost is materially affected
by an OMB Circular A-21 accounting principle amendment which, on
becoming effective after the date of contract award, requires the
Contractor to make a change to the Contractor's established cost
accounting practices.
(5) Agree to an adjustment of the contract price or cost
allowance, as appropriate, if the Contractor or a subcontractor
fails to comply with an applicable Cost Accounting Standard, or to
follow any cost accounting practice consistently 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. In no case shall the Government recover costs greater
than the increased cost to the Government, in the aggregate, on the
relevant contracts subject to the price adjustment, unless the
Contractor made a change in its cost accounting
[[Page 15942]]
practices of which it was aware or should have been aware at the
time of price negotiations and which it failed to disclose to the
Government.
(b) If the parties fail to agree whether the Contractor or a
subcontractor has complied with an applicable CAS or a CAS rule or
regulation in 9903 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, or 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, including the obligation to comply with
all applicable CAS in effect on the subcontractor's award date or if
the subcontractor has submitted cost or pricing data, on the date of
final agreement on price as shown on the subcontractor's signed
Certificate of Current Cost or Pricing Data, 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; and
(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)
(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 disclosed
and established cost accounting practices.
DISCLOSURE AND CONSISTENCY OF COST ACCOUNTING PRACTICES--FOREIGN
CONCERNS (April 25, 2008)
(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. E8-5981 Filed 3-24-08; 8:45 am]
BILLING CODE 3110-01-P
