Federal Acquisition Regulation; FAR Case 2005-032, Contractor’s Request for Progress Payments, 19035-19039 [E8-7293]
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Federal Register / Vol. 73, No. 68 / Tuesday, April 8, 2008 / Proposed Rules
Branch, Air, Pesticides and Toxics
Management Division, U.S.
Environmental Protection Agency,
Region 4, 61 Forsyth Street, SW.,
Atlanta, Georgia 30303–8960. The
telephone numbers are (404) 562–9140
and (404) 562–9025 respectively. Ms.
Nacosta Ward can be reached via
electronic mail at
ward.nacosta@epa.gov Ms. Amanetta
Wood can be reached via electronic mail
at wood.amanetta@epa.gov.
SUPPLEMENTARY INFORMATION: For
additional information see the direct
final rule which is published in the
Rules Section of this Federal Register.
Dated: March 27, 2008.
J.I. Palmer, Jr.,
Regional Administrator, Region 4.
[FR Doc. E8–7187 Filed 4–7–08; 8:45 am]
BILLING CODE 6560–50–P
ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Part 62
[EPA–R03–OAR–2008–MD–0209; FRL–
8552–6]
Approval and Promulgation of State
Air Quality Plans for Designated
Facilities and Pollutants; State of
Maryland; Control of Large Municipal
Waste Combustor (LMWC) Emissions
From Existing Facilities
Environmental Protection
Agency (EPA).
ACTION: Proposed rule.
ebenthall on PRODPC61 with PROPOSALS
AGENCY:
SUMMARY: EPA proposes to approve the
Maryland Department of the
Environment (MDE) large municipal
waste combustor plan (the plan)
revision for implementing Clean Air Act
(the Act) emission guideline (EG)
amendments promulgated by EPA on
May 10, 2006. The plan revision
establishes revised emission limits,
monitoring, and recordkeeping
requirements for existing LMWC units
with a unit capacity greater than 250
tons per day (TPD). An existing LMWC
unit is one for which construction
commenced on or before September 20,
1994. In the Final Rules section of this
Federal Register, EPA is approving the
State’s 111(d)/129 plan revision
submittal as a direct final rule without
prior proposal because the Agency
views this as a noncontroversial
submittal and anticipates no adverse
comments. A detailed description for
the approval is set forth in the direct
final rule. If no adverse comments are
received in response to this action, no
further activity is contemplated. If EPA
VerDate Aug<31>2005
15:21 Apr 07, 2008
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receives adverse comments, the direct
final rule will be withdrawn and all
public comments received will be
addressed in a subsequent final rule
based on this proposed rule. EPA will
not institute a second comment period.
Any parties interested in commenting
on this action should do so at this time.
DATES: Comments must be received in
writing by May 8, 2008.
ADDRESSES: Submit your comments,
identified by Docket ID Number EPA–
R03–OAR–2008–MD–0209 by one of the
following methods:
A. https://www.regulations.gov. Follow
the on-line instructions for submitting
comments.
B. E-mail: https://
wilkie.walter@epa.gov.
C. Mail: EPA—R03–OAR–2008–MD–
0209, Walter Wilkie, Chief, Air Quality
Analysis Branch, Mailcode 3AP22, U.S.
Environmental Protection Agency,
Region III, 1650 Arch Street,
Philadelphia, Pennsylvania 19103.
D. Hand Delivery: At the previouslylisted EPA Region III address. Such
deliveries are only accepted during the
Docket’s normal hours of operation, and
special arrangements should be made
for deliveries of boxed information.
Instructions: Direct your comments to
Docket ID No. EPA–R03–OAR–2008–
MD–0209. EPA’s policy is that all
comments received will be included in
the public docket without change, and
may be made available online at
https://www.regulations.gov, including
any personal information provided,
unless the comment includes
information claimed to be Confidential
Business Information (CBI) or other
information whose disclosure is
restricted by statute. Do not submit
information that you consider to be CBI
or otherwise protected through https://
www.regulations.gov or e-mail. The
https://www.regulations.gov Web site is
an ‘‘anonymous access’’ system, which
means EPA will not know your identity
or contact information unless you
provide it in the body of your comment.
If you send an e-mail comment directly
to EPA without going through https://
www.regulations.gov, your e-mail
address will be automatically captured
and included as part of the comment
that is placed in the public docket and
made available on the Internet. If you
submit an electronic comment, EPA
recommends that you include your
name and other contact information in
the body of your comment and with any
disk or CD–ROM you submit. If EPA
cannot read your comment due to
technical difficulties and cannot contact
you for clarification, EPA may not be
able to consider your comment.
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19035
Electronic files should avoid the use of
special characters, any form of
encryption, and be free of any defects or
viruses.
Docket: All documents in the
electronic docket are listed in the
https://www.regulations.gov index.
Although listed in the index, some
information is not publicly available,
i.e., CBI or other information whose
disclosure is restricted by statute.
Certain other material, such as
copyrighted material, is not placed on
the Internet and will be publicly
available only in hard copy form.
Publicly available docket materials are
available either electronically in https://
www.regulations.gov or in hard copy
during normal business hours at the Air
Protection Division, U.S. Environmental
Protection Agency, Region III, 1650
Arch Street, Philadelphia, Pennsylvania
19103. Copies of the State submittal are
available at the Maryland Department of
the Environment, 1800 Washington
Boulevard, Suite 705, Baltimore,
Maryland 21230.
FOR FURTHER INFORMATION CONTACT:
James B. Topsale, P.E., at (215) 814–
2190, or by e-mail at
topsale.jim@epa.gov.
SUPPLEMENTARY INFORMATION: For
further information, please see the
information provided in the direct final
action, with the same title, that is
located in the ‘‘Rules and Regulations’’
section for this Federal Register
publication.
Dated: March 31, 2008.
Donald S. Welsh,
Regional Administrator, Region III.
[FR Doc. E8–7345 Filed 4–7–08; 8:45 am]
BILLING CODE 6560–50–P
DEPARTMENT OF DEFENSE
GENERAL SERVICES
ADMINISTRATION
NATIONAL AERONAUTICS AND
SPACE ADMINISTRATION
48 CFR Parts 32, 43, 52, and 53
[FAR Case 2005–032; Docket 2008–0002;
Sequence 4]
RIN: 9000–AI47
Federal Acquisition Regulation; FAR
Case 2005–032, Contractor’s Request
for Progress Payments
Department of Defense (DoD),
General Services Administration (GSA),
and National Aeronautics and Space
Administration (NASA).
ACTION: Proposed rule.
AGENCIES:
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Federal Register / Vol. 73, No. 68 / Tuesday, April 8, 2008 / Proposed Rules
ebenthall on PRODPC61 with PROPOSALS
SUMMARY: The Civilian Agency
Acquisition Council and the Defense
Acquisition Regulations Council
(Councils) are proposing to amend the
Federal Acquisition Regulation (FAR) to
implement recommendations to
improve the regulations at FAR 32.001,
32.5, and 52.232–16 related to requests
for progress payments and the Standard
Form (SF) 1443, Contractor’s Request for
Progress Payments form used to request
those progress payments.
DATES: Interested parties should submit
written comments to the FAR
Secretariat on or before June 9, 2008 to
be considered in the formulation of a
final rule.
ADDRESSES: Submit comments
identified by FAR Case 2005–032 by any
of the following methods:
• Regulations.gov: https://
www.regulations.gov. Submit comments
via the Federal eRulemaking portal by
inputting ‘‘FAR Case 2005–032’’ under
the heading ‘‘Comment or Submission’’.
Select the link ‘‘Send a Comment or
Submission’’ that corresponds with FAR
Case 2005–032. Follow the instructions
provided to complete the ‘‘Public
Comment and Submission Form’’.
Please include your name, company
name (if any), and ‘‘FAR Case 2005–
032’’ on your attached document.
• Fax: 202–501–4067.
• Mail: General Services
Administration, Regulatory Secretariat
(VPR), 1800 F Street, NW, Room 4035,
ATTN: Diedra Wingate, Washington, DC
20405.
Instructions: Please submit comments
only and cite FAR case 2005–032 in all
correspondence related to this case. All
comments received will be posted
without change to https://
www.regulations.gov, including any
personal and/or business confidential
information provided.
FOR FURTHER INFORMATION CONTACT Ms.
Meredith Murphy, Procurement
Analyst, at (202) 208–6925 for
clarification of content. For information
pertaining to status or publication
schedules, contact the FAR Secretariat
at (202) 501–4755. Please cite FAR case
2005–032.
SUPPLEMENTARY INFORMATION:
A. Background
The proposed changes to FAR 32.001,
32.501–3, 32.503–6, 52.232–16 and the
SF 1443, Contractor’s Request for
Progress Payments are to (1) address
revisions to the paid cost rule, and (2)
simplify the form and related
regulations, and instructions to improve
clarity. These proposed changes
originated as a part of a review of the
SF 1443 and related regulations by the
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15:21 Apr 07, 2008
Jkt 214001
Department of Defense (DoD). As a part
of this review, the DoD requested input
from both Department contracting
professionals and the general public (see
Federal Register 69 FR 67899, dated
November 22, 2004). The
recommendations resulting from that
effort were considered in developing the
proposed rule language reported herein.
This is not a significant regulatory
action and, therefore, was not subject to
review under Section 6(b) of Executive
Order 12866, Regulatory Planning and
Review, dated September 30, 1993. This
rule is not a major rule under 5 U.S.C.
804.
B. Discussion
The Councils are revising the
following FAR provisions:
1. FAR 32.001 is revised to add a
definition for the term ‘‘Liquidate.’’ This
proposed change is made to ensure that
all parties understand what is meant by
this term which is used frequently
throughout FAR Part 32.
2. FAR 32.501–3(a)(1) is revised to
ensure that the term ‘‘contract price’’ is
used consistently in 32.501–3 and the
SF 1443. This change is proposed to
clarify that ‘‘contract price’’ includes the
total amount to be paid for complete
performance of the contract, to include
the not-to-exceed amounts on unpriced
modifications. Related changes are
proposed to the instructions for Item 5
of the SF 1443.
3. FAR 32.503–1 is deleted, in its
entirety. The language requiring the
contractor to use the SF 1443 to request
progress payments is moved to 52.232–
16(g)(3). This change is made to move
the requirement to use the form into the
contract clause. New language is added
allowing electronic submission of the
SF 1443.
4. FAR 32.503–6(f) and (g), and
52.232–16(a)(9) and (c)(5) are revised to
clarify the computation of the loss ratio.
5. FAR 52.232–16(g)(2) is added to
require that contractors use current
estimates to complete when preparing
the SF 1443. Related changes are
proposed for the SF 1443 Line 12b and
related instructions.
6. Various other changes to the SF
1443 and related instructions are also
proposed:
(a) Line 4 ‘‘Contract Number’’ is
changed to require that the contractor
include the Delivery or Task Order
number, if applicable, so that the paying
office can associate the SF 1443 with the
correct order.
(b) Lines 9—11 are revised to reflect
changes made to the ‘‘paid cost rule’’ in
an earlier Final Rule.
(c) Line 14 is revised to make the
language on the form consist with that
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of 52.232–16. A related change is also
made to Line 20.
(d) Line 23 is revised to clarify that
the amount on this line is the dollars
that have been liquidated as well as the
dollars to be liquidated.
(e) Minor editorial changes are
proposed for various portions of the SF
1443 and related instructions.
C. Regulatory Flexibility Act
The Councils do not expect this
proposed rule to have a significant
economic impact on a substantial
number of small entities within the
meaning of the Regulatory Flexibility
Act, 5 U.S.C. 601, et seq., because this
proposed rule will not change the rules
for buying or add a new information
collection requirement. It will not have
a significant economic impact to
simplify the SF 1443 and related
regulations and instructions. Further,
most contracts awarded to small entities
use the simplified acquisition
procedures or are awarded on a
competitive, fixed-price basis; neither of
these requires the completion of the SF
1443. An Initial Regulatory Flexibility
Analysis has, therefore, not been
performed. We invite comments from
small businesses and other interested
parties. The Councils will consider
comments from small entities
concerning the affected FAR Part 32, 43,
52, and 53 in accordance with 5 U.S.C.
610. Interested parties must submit such
comments separately and should cite 5
U.S.C. 601, et seq. (FAR case 2005–032),
in correspondence.
D. Paperwork Reduction Act
The Paperwork Reduction Act does
not apply because the proposed changes
to the FAR do not impose information
collection requirements that require the
approval of the Office of Management
and Budget under 44 U.S.C. 3501, et
seq.
List of Subjects in 48 CFR Parts 32, 43,
52, and 53
Government procurement.
Dated: April 1, 2008.
Al Matera,
Director, Office of Acquisition Policy.
Therefore, DoD, GSA, and NASA
propose amending 48 CFR parts 32, 43,
52, and 53 as set forth below:
1. The authority citation for 48 CFR
parts 32, 43, 52, and 53 continues to
read as follows:
Authority: 40 U.S.C. 121(c); 10 U.S.C.
chapter 137; and 42 U.S.C. 2473(c).
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PART 32—CONTRACT FINANCING
2. Amend Section 32.001 by adding,
in alphabetical order, the definition
‘‘Liquidate’’ to read as follows:
32.001
Definitions.
*
*
*
*
*
Liquidate means to decrease a
payment for an accepted supply item or
service under a contract for the purpose
of recouping financing payments
previously paid to the contractor.
*
*
*
*
*
3. Amend section 32.501–3 by
revising paragraphs (a)(1) and (a)(3) to
read as follows:
32.501–3
Contract price.
(a) * * *
(1) Under firm-fixed price contracts,
the contract price is the current amount
fixed by the contract plus the not-toexceed amount for any unpriced
modifications.
*
*
*
*
*
(3) Under a fixed-price incentive
contract, the contract price is the target
price plus the not-to-exceed amount of
unpriced modifications. However, if the
contractor’s properly incurred costs
exceed the target price, the contracting
officer may provisionally increase the
price up to the ceiling or maximum
price.
*
*
*
*
*
32.503–1
[Reserved]
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(a) * * *
(3) In all cases, the contracting officer
shall—
(i) Act fairly and reasonably.
(ii) Base decisions on substantial
evidence.
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43.102
[Amended]
6. Amend section 43.102 by removing
from paragraph (b) the word
‘‘maximum’’ and adding the word
‘‘ceiling’’ in its place.
7. Amend section 52.232–16 by
revising the date of the clause; by
adding paragraph (a)(9); and by revising
paragraphs (c)(5) and (g) to read as
follows:
32.503–6 Suspension or reduction of
payments.
15:21 Apr 07, 2008
PART 43—CONTRACT
MODIFICATIONS
PART 52—SOLICITATION PROVISIONS
AND CONTRACT CLAUSES
4. Remove and reserve section
32.503–1.
5. Amend section 32.503–6 by
revising paragraphs (a)(3), (f), and
(g)(1)(i) to read as follows:
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(iii) Document the contract file.
Findings made under paragraph (c) of
the Progress Payments clause shall be in
writing.
*
*
*
*
*
(f) Fair value of undelivered work.
Progress payments must be
commensurate with the fair value of
work accomplished in accordance with
contract requirements. The contracting
officer must adjust progress payments
when necessary to ensure that the fair
value of undelivered work equals or
exceeds the amount of unliquidated
progress payments. On loss contracts
contracts, the application of a loss ratio
as provided at paragraph (g) of this
section constitutes this adjustment.
(g) * * *
(1) * * *
(i) Revise the current contract price
used in progress payment computations
(the current ceiling price under fixedprice incentive contracts) to include the
not-to-exceed amount for any pending
change orders and unpriced orders.
*
*
*
*
*
52.232–16
*
Progress Payments.
*
*
*
*
PROGRESS PAYMENTS (DATE)
(a) * * *
(9) The costs applicable to items delivered,
invoiced, and accepted shall not include
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costs in excess of the contract price of the
items.
*
*
*
*
*
(c) * * *
(5) The fair value of the undelivered work
is less than the amount of unliquidated
progress payments for that work.
*
*
*
*
*
(g) Reports, forms, and access to records.
(1) The Contractor shall promptly furnish
reports, certificates, financial statements, and
other pertinent information (including
estimates to complete) reasonably requested
by the Contracting Officer for the
administration of this clause. Also, the
Contractor shall give the Government
reasonable opportunity to examine and verify
the Contractor’s books, records, and
accounts.
(2) The Contractor shall furnish estimates
to complete that have been developed or
updated within six months of the date of the
progress payment request. The estimates to
complete shall represent the Contractor’s best
estimate of total costs to complete all
remaining contract work required under the
contract. The estimates shall include
sufficient detail to permit Government
verification.
(3) Each Contractor request for progress
payment shall:
(i) Be submitted on Standard Form 1443,
Contractor’s Request for Progress Payment, or
the electronic equivalent as required by
agency regulations, in accordance with the
form instructions and the contract terms; and
(ii) Include any additional supporting
documentation requested by the Contracting
Officer.
*
*
*
*
*
PART 53—FORMS
53.232
[Amended]
8. Amend section 53.232 by removing
‘‘(10/82)’’ and adding ‘‘(Date)’’ in its
place; and by removing ‘‘, as specified
in 32.503.1’’.
9. Revise section 53.301–1443 to read
as follows:
53.301–1443 Contractor’s Request for
Progress Payments and Related
Instructions.
BILLING CODE 6820–EP–S
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BILLING CODE 6820–EP–S
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Federal Register / Vol. 73, No. 68 / Tuesday, April 8, 2008 / Proposed Rules
]]>Agencies
[Federal Register Volume 73, Number 68 (Tuesday, April 8, 2008)]
[Proposed Rules]
[Pages 19035-19039]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-7293]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 32, 43, 52, and 53
[FAR Case 2005-032; Docket 2008-0002; Sequence 4]
RIN: 9000-AI47
Federal Acquisition Regulation; FAR Case 2005-032, Contractor's
Request for Progress Payments
AGENCIES: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Proposed rule.
-----------------------------------------------------------------------
[[Page 19036]]
SUMMARY: The Civilian Agency Acquisition Council and the Defense
Acquisition Regulations Council (Councils) are proposing to amend the
Federal Acquisition Regulation (FAR) to implement recommendations to
improve the regulations at FAR 32.001, 32.5, and 52.232-16 related to
requests for progress payments and the Standard Form (SF) 1443,
Contractor's Request for Progress Payments form used to request those
progress payments.
DATES: Interested parties should submit written comments to the FAR
Secretariat on or before June 9, 2008 to be considered in the
formulation of a final rule.
ADDRESSES: Submit comments identified by FAR Case 2005-032 by any of
the following methods:
Regulations.gov: https://www.regulations.gov. Submit
comments via the Federal eRulemaking portal by inputting ``FAR Case
2005-032'' under the heading ``Comment or Submission''. Select the link
``Send a Comment or Submission'' that corresponds with FAR Case 2005-
032. Follow the instructions provided to complete the ``Public Comment
and Submission Form''. Please include your name, company name (if any),
and ``FAR Case 2005-032'' on your attached document.
Fax: 202-501-4067.
Mail: General Services Administration, Regulatory
Secretariat (VPR), 1800 F Street, NW, Room 4035, ATTN: Diedra Wingate,
Washington, DC 20405.
Instructions: Please submit comments only and cite FAR case 2005-
032 in all correspondence related to this case. All comments received
will be posted without change to https://www.regulations.gov, including
any personal and/or business confidential information provided.
FOR FURTHER INFORMATION CONTACT Ms. Meredith Murphy, Procurement
Analyst, at (202) 208-6925 for clarification of content. For
information pertaining to status or publication schedules, contact the
FAR Secretariat at (202) 501-4755. Please cite FAR case 2005-032.
SUPPLEMENTARY INFORMATION:
A. Background
The proposed changes to FAR 32.001, 32.501-3, 32.503-6, 52.232-16
and the SF 1443, Contractor's Request for Progress Payments are to (1)
address revisions to the paid cost rule, and (2) simplify the form and
related regulations, and instructions to improve clarity. These
proposed changes originated as a part of a review of the SF 1443 and
related regulations by the Department of Defense (DoD). As a part of
this review, the DoD requested input from both Department contracting
professionals and the general public (see Federal Register 69 FR 67899,
dated November 22, 2004). The recommendations resulting from that
effort were considered in developing the proposed rule language
reported herein.
This is not a significant regulatory action and, therefore, was not
subject to review under Section 6(b) of Executive Order 12866,
Regulatory Planning and Review, dated September 30, 1993. This rule is
not a major rule under 5 U.S.C. 804.
B. Discussion
The Councils are revising the following FAR provisions:
1. FAR 32.001 is revised to add a definition for the term
``Liquidate.'' This proposed change is made to ensure that all parties
understand what is meant by this term which is used frequently
throughout FAR Part 32.
2. FAR 32.501-3(a)(1) is revised to ensure that the term ``contract
price'' is used consistently in 32.501-3 and the SF 1443. This change
is proposed to clarify that ``contract price'' includes the total
amount to be paid for complete performance of the contract, to include
the not-to-exceed amounts on unpriced modifications. Related changes
are proposed to the instructions for Item 5 of the SF 1443.
3. FAR 32.503-1 is deleted, in its entirety. The language requiring
the contractor to use the SF 1443 to request progress payments is moved
to 52.232-16(g)(3). This change is made to move the requirement to use
the form into the contract clause. New language is added allowing
electronic submission of the SF 1443.
4. FAR 32.503-6(f) and (g), and 52.232-16(a)(9) and (c)(5) are
revised to clarify the computation of the loss ratio.
5. FAR 52.232-16(g)(2) is added to require that contractors use
current estimates to complete when preparing the SF 1443. Related
changes are proposed for the SF 1443 Line 12b and related instructions.
6. Various other changes to the SF 1443 and related instructions
are also proposed:
(a) Line 4 ``Contract Number'' is changed to require that the
contractor include the Delivery or Task Order number, if applicable, so
that the paying office can associate the SF 1443 with the correct
order.
(b) Lines 9--11 are revised to reflect changes made to the ``paid
cost rule'' in an earlier Final Rule.
(c) Line 14 is revised to make the language on the form consist
with that of 52.232-16. A related change is also made to Line 20.
(d) Line 23 is revised to clarify that the amount on this line is
the dollars that have been liquidated as well as the dollars to be
liquidated.
(e) Minor editorial changes are proposed for various portions of
the SF 1443 and related instructions.
C. Regulatory Flexibility Act
The Councils do not expect this proposed rule to have a significant
economic impact on a substantial number of small entities within the
meaning of the Regulatory Flexibility Act, 5 U.S.C. 601, et seq.,
because this proposed rule will not change the rules for buying or add
a new information collection requirement. It will not have a
significant economic impact to simplify the SF 1443 and related
regulations and instructions. Further, most contracts awarded to small
entities use the simplified acquisition procedures or are awarded on a
competitive, fixed-price basis; neither of these requires the
completion of the SF 1443. An Initial Regulatory Flexibility Analysis
has, therefore, not been performed. We invite comments from small
businesses and other interested parties. The Councils will consider
comments from small entities concerning the affected FAR Part 32, 43,
52, and 53 in accordance with 5 U.S.C. 610. Interested parties must
submit such comments separately and should cite 5 U.S.C. 601, et seq.
(FAR case 2005-032), in correspondence.
D. Paperwork Reduction Act
The Paperwork Reduction Act does not apply because the proposed
changes to the FAR do not impose information collection requirements
that require the approval of the Office of Management and Budget under
44 U.S.C. 3501, et seq.
List of Subjects in 48 CFR Parts 32, 43, 52, and 53
Government procurement.
Dated: April 1, 2008.
Al Matera,
Director, Office of Acquisition Policy.
Therefore, DoD, GSA, and NASA propose amending 48 CFR parts 32, 43,
52, and 53 as set forth below:
1. The authority citation for 48 CFR parts 32, 43, 52, and 53
continues to read as follows:
Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 42
U.S.C. 2473(c).
[[Page 19037]]
PART 32--CONTRACT FINANCING
2. Amend Section 32.001 by adding, in alphabetical order, the
definition ``Liquidate'' to read as follows:
32.001 Definitions.
* * * * *
Liquidate means to decrease a payment for an accepted supply item
or service under a contract for the purpose of recouping financing
payments previously paid to the contractor.
* * * * *
3. Amend section 32.501-3 by revising paragraphs (a)(1) and (a)(3)
to read as follows:
32.501-3 Contract price.
(a) * * *
(1) Under firm-fixed price contracts, the contract price is the
current amount fixed by the contract plus the not-to-exceed amount for
any unpriced modifications.
* * * * *
(3) Under a fixed-price incentive contract, the contract price is
the target price plus the not-to-exceed amount of unpriced
modifications. However, if the contractor's properly incurred costs
exceed the target price, the contracting officer may provisionally
increase the price up to the ceiling or maximum price.
* * * * *
32.503-1 [Reserved]
4. Remove and reserve section 32.503-1.
5. Amend section 32.503-6 by revising paragraphs (a)(3), (f), and
(g)(1)(i) to read as follows:
32.503-6 Suspension or reduction of payments.
(a) * * *
(3) In all cases, the contracting officer shall--
(i) Act fairly and reasonably.
(ii) Base decisions on substantial evidence.
(iii) Document the contract file. Findings made under paragraph (c)
of the Progress Payments clause shall be in writing.
* * * * *
(f) Fair value of undelivered work. Progress payments must be
commensurate with the fair value of work accomplished in accordance
with contract requirements. The contracting officer must adjust
progress payments when necessary to ensure that the fair value of
undelivered work equals or exceeds the amount of unliquidated progress
payments. On loss contracts contracts, the application of a loss ratio
as provided at paragraph (g) of this section constitutes this
adjustment.
(g) * * *
(1) * * *
(i) Revise the current contract price used in progress payment
computations (the current ceiling price under fixed-price incentive
contracts) to include the not-to-exceed amount for any pending change
orders and unpriced orders.
* * * * *
PART 43--CONTRACT MODIFICATIONS
43.102 [Amended]
6. Amend section 43.102 by removing from paragraph (b) the word
``maximum'' and adding the word ``ceiling'' in its place.
PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
7. Amend section 52.232-16 by revising the date of the clause; by
adding paragraph (a)(9); and by revising paragraphs (c)(5) and (g) to
read as follows:
52.232-16 Progress Payments.
* * * * *
PROGRESS PAYMENTS (DATE)
(a) * * *
(9) The costs applicable to items delivered, invoiced, and
accepted shall not include costs in excess of the contract price of
the items.
* * * * *
(c) * * *
(5) The fair value of the undelivered work is less than the
amount of unliquidated progress payments for that work.
* * * * *
(g) Reports, forms, and access to records. (1) The Contractor
shall promptly furnish reports, certificates, financial statements,
and other pertinent information (including estimates to complete)
reasonably requested by the Contracting Officer for the
administration of this clause. Also, the Contractor shall give the
Government reasonable opportunity to examine and verify the
Contractor's books, records, and accounts.
(2) The Contractor shall furnish estimates to complete that have
been developed or updated within six months of the date of the
progress payment request. The estimates to complete shall represent
the Contractor's best estimate of total costs to complete all
remaining contract work required under the contract. The estimates
shall include sufficient detail to permit Government verification.
(3) Each Contractor request for progress payment shall:
(i) Be submitted on Standard Form 1443, Contractor's Request for
Progress Payment, or the electronic equivalent as required by agency
regulations, in accordance with the form instructions and the
contract terms; and
(ii) Include any additional supporting documentation requested
by the Contracting Officer.
* * * * *
PART 53--FORMS
53.232 [Amended]
8. Amend section 53.232 by removing ``(10/82)'' and adding
``(Date)'' in its place; and by removing ``, as specified in
32.503.1''.
9. Revise section 53.301-1443 to read as follows:
53.301-1443 Contractor's Request for Progress Payments and Related
Instructions.
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[FR Doc. E8-7293 Filed 4-7-08; 8:45 am]
BILLING CODE 6820-EP-S
