Federal Acquisition Regulation; FAR Case 2005-032, Contractor’s Request for Progress Payments, 19035-19039 [E8-7293]

Download as PDF 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2005 15:21 Apr 07, 2008 Jkt 214001 receives adverse comments, the direct final rule will be withdrawn and all public comments received will be addressed in a subsequent final rule based on this proposed rule.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. http://www.regulations.gov. Follow the on-line instructions for submitting comments. B. E-mail: http:// 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 http://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 http:// www.regulations.gov or e-mail. The http://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 http:// 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. PO 00000 Frm 00021 Fmt 4702 Sfmt 4702 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 http://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 http:// 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: E:\FR\FM\08APP1.SGM 08APP1 19036 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: http:// 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 http:// 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 VerDate Aug<31>2005 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 PO 00000 Frm 00022 Fmt 4702 Sfmt 4702 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). E:\FR\FM\08APP1.SGM 08APP1 19037 Federal Register / Vol. 73, No. 68 / Tuesday, April 8, 2008 / Proposed Rules 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] ebenthall on PRODPC61 with PROPOSALS (a) * * * (3) In all cases, the contracting officer shall— (i) Act fairly and reasonably. (ii) Base decisions on substantial evidence. Jkt 214001 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: VerDate Aug<31>2005 (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 PO 00000 Frm 00023 Fmt 4702 Sfmt 4702 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 E:\FR\FM\08APP1.SGM 08APP1 VerDate Aug<31>2005 Federal Register / Vol. 73, No. 68 / Tuesday, April 8, 2008 / Proposed Rules 15:21 Apr 07, 2008 Jkt 214001 PO 00000 Frm 00024 Fmt 4702 Sfmt 4725 E:\FR\FM\08APP1.SGM 08APP1 EP08AP08.007</GPH> ebenthall on PRODPC61 with PROPOSALS 19038 19039 [FR Doc. E8–7293 Filed 4–7–08; 8:45 am] BILLING CODE 6820–EP–S VerDate Aug<31>2005 16:09 Apr 07, 2008 Jkt 214001 PO 00000 Frm 00025 Fmt 4702 Sfmt 4702 E:\FR\FM\08APP1.SGM 08APP1 EP08AP08.008</GPH> ebenthall on PRODPC61 with PROPOSALS 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]


=======================================================================
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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: http://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 http://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.

BILLING CODE 6820-EP-S

[[Page 19038]]

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[FR Doc. E8-7293 Filed 4-7-08; 8:45 am]
BILLING CODE 6820-EP-S