Federal Acquisition Regulation; FAR Case 2009-026, Compensation for Personal Services, 34285-34286 [2010-14181]

Download as PDF Federal Register / Vol. 75, No. 115 / Wednesday, June 16, 2010 / Rules and Regulations (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 48 CFR 9903.201–2 is subject to other types of CAS coverage, the substance of the applicable clause prescribed in FAR 30.201–4 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 48 CFR 9903.201–1. (End of clause) ■ 4. Amend section 52.230–6 by revising the date of the clause; the second sentence of the introductory text of paragraph (b); the first sentence of paragraph (b)(3); the introductory text of paragraph (b)(4); paragraph (k)(1); the introductory text of paragraph (l); and paragraph (n) to read as follows: [FR Doc. 2010–14175 Filed 6–15–10; 8:45 am] 52.230–6 Administration of Cost Accounting Standards. * * * * paragraph (a)(5) of the clause at FAR 52.230–2 and FAR 52.230–5; or by paragraph (a)(4) of the clauses at FAR 52.230–3 and FAR 52.230–4)— * * * * * (k) * * * (1) Contract modifications to reflect adjustments required in accordance with paragraph (a)(4)(ii) or (a)(5) of the clauses at FAR 52.230–2 and 52.230–5; or with paragraph (a)(3)(i) or (a)(4) of the clauses at FAR 52.230–3 and FAR 52.230–4; and * * * * * (l) For all subcontracts subject to the clauses at FAR 52.230–2, 52.230–3, 52.230–4, or 52.230–5— * * * * * (n) For subcontracts containing the clause or substance of the clause at FAR 52.230–2, FAR 52.230–3, FAR 52.230–4, or FAR 52.230–5, require the subcontractor to comply with all Standards in effect on the date of award or of final agreement on price, as shown on the subcontractor’s signed Certificate of Current Cost or Pricing Data, whichever is earlier. BILLING CODE 6820–EP–S * DEPARTMENT OF DEFENSE * sroberts on DSKD5P82C1PROD with RULES ADMINISTRATION OF COST ACCOUNTING STANDARDS (JUN 2010) GENERAL SERVICES ADMINISTRATION * * * * (b) * * * If a change in cost accounting practice is implemented without submitting the notice required by this paragraph, the CFAO may determine the change to be a failure to follow paragraph (a)(2) of the clause at FAR 52.230–2, Cost Accounting Standards; paragraph (a)(4) of the clause at FAR 52.230–3, Disclosure and Consistency of Cost Accounting Practices; paragraph (a)(4) of the clause at FAR 52.230–4, Disclosure and Consistency of Cost Accounting Practices—Foreign Concerns; or paragraph (a)(2) of the clause at FAR 52.230–5, Cost Accounting Standards—Educational Institution. * * * * * (3) For any change in cost accounting practices proposed in accordance with paragraph (a)(4)(ii) or (iii) of the clauses at FAR 52.230–2 and FAR 52.230–5; or with paragraph (a)(3) of the clauses at FAR 52.230–3 and FAR 52.230–4, submit a description of the change not less than 60 days (or such other date as may be mutually agreed to by the CFAO and the Contractor) before implementation of the change. * * * (4) Submit a description of the change necessary to correct a failure to comply with an applicable CAS or to follow a disclosed practice (as contemplated by VerDate Mar<15>2010 16:33 Jun 15, 2010 Jkt 220001 NATIONAL AERONAUTICS AND SPACE ADMINISTRATION 48 CFR Part 31 [FAC 2005–42; FAR Case 2009–026; Item X; Docket 2010–0088, Sequence 1] RIN 9000–AL54 Federal Acquisition Regulation; FAR Case 2009–026, Compensation for Personal Services Department of Defense (DoD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA). ACTION: Interim rule with request for comments. AGENCIES: SUMMARY: The Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council (Councils) are issuing an interim rule amending the FAR to align the FAR with the revised Cost Accounting Standards (CAS) Board standards 412, ‘‘Cost Accounting Standard for composition and measurement of pension cost;’’ and 415, ‘‘Accounting for the cost of deferred compensation.’’ DATES: Effective Date: June 16, 2010. PO 00000 Frm 00031 Fmt 4701 Sfmt 4700 34285 Comment Date: Interested parties should submit written comments to the Regulatory Secretariat on or before August 16, 2010 to be considered in the formulation of a final rule. ADDRESSES: Submit comments identified by FAC 2005–42, FAR Case 2009–026, by any of the following methods: • Regulations.gov: http:// www.regulations.gov.Submit comments via the Federal eRulemaking portal by inputting ‘‘FAR Case 2009–026’’ under the heading ‘‘Enter Keyword or ID’’ and selecting ‘‘Search’’. Select the link ‘‘Submit a Comment’’ that corresponds with ‘‘FAR Case 2009–026’’. Follow the instructions provided at the ‘‘Submit a Comment’’ screen. Please include your name, company name (if any), and ‘‘FAR Case 2009–026’’ on your attached document. • Fax: 202–501–4067. • Mail: General Services Administration, Regulatory Secretariat (MVCB), 1800 F Street, NW., Room 4041, ATTN: Hada Flowers, Washington, DC 20405. Instructions: Please submit comments only and cite FAC 2005–42, FAR Case 2009–026, 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: For clarification of content, contact Mr. Edward N. Chambers, Procurement Analyst, at (202) 501–3221. For information pertaining to status or publication schedules, contact the Regulatory Secretariat at (202) 501– 4755. Please cite FAC 2005–42, FAR Case 2009–026. SUPPLEMENTARY INFORMATION: A. Background The CAS Board published a final rule in the Federal Register at 73 FR 23961 on May 1, 2008, to amend CAS 412, ‘‘Cost Accounting Standard for composition and measurement of pension cost,’’ and CAS 415, ‘‘Accounting for the cost of deferred compensation.’’ The CAS Board specified that the accounting of Employee Stock Ownership Plan (ESOP) costs, regardless of type, would be covered by the provisions of CAS 415 only and not by CAS 412. The CAS Board also provided criteria in CAS 415 for measuring ESOP costs and assigning these costs to cost accounting periods.In order to maintain consistency between CAS and FAR in matters relating to the administration of CAS, the Councils are amending the FAR as follows: E:\FR\FM\16JNR3.SGM 16JNR3 34286 Federal Register / Vol. 75, No. 115 / Wednesday, June 16, 2010 / Rules and Regulations sroberts on DSKD5P82C1PROD with RULES 1. FAR 31.205–6(q)(2)(i) is deleted in its entirety to reflect the amendments promulgated by the CAS Board on May 1, 2008. 2. FAR 31.205–6(q)(2)(ii) through (vi) are redesignated as paragraphs FAR 31.205–6(q)(2)(i) through (v) due to the deletion of the existing FAR 31.205– 6(q)(2)(i). 3. Redesignated FAR 31.205–6(q)(2)(i) is revised to reflect the amendments promulgated by the CAS Board on May 1, 2008. 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. Regulatory Flexibility Act The Councils do not expect this interim 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 affected small businesses are currently required to comply with CAS 412 and CAS 415. While small businesses are otherwise not subject to CAS, they are subject to selected standards for the purpose of determining allowability of costs under Government contracts. Among these standards are CAS 412 and CAS 415 as set forth in FAR 31.205– 6(q). For small businesses currently using CAS 415, there will be no increase in cost or effort. For small businesses that must change from CAS 412 to CAS 415, the possible change from measuring costs in accordance with CAS 412 to CAS 415 would result, at most, in a negligible increase in administrative burden because of the similarities between CAS 412 and 415. The potential increase of administrative effort, albeit minor, will be offset by the uniformity and consistency in accounting for deferred compensation costs achieved by this rule that will benefit all entities by reducing their administrative burden. Therefore, an Initial Regulatory Flexibility Analysis has not been performed. The Councils invite comments from small business concerns and other interested parties on the expected impact of this rule on small entities. The Councils will also consider comments from small entities concerning the existing regulations in FAR part 31 affected by this rule in accordance with 5 U.S.C. 610. Interested parties must submit such comments separately and should cite 5 U.S.C. 610 (FAC 2005–42, FAR Case 2009–026) in all correspondence. VerDate Mar<15>2010 16:33 Jun 15, 2010 Jkt 220001 C. Paperwork Reduction Act DEPARTMENT OF DEFENSE The Paperwork Reduction Act does not apply because the 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. chapter 35, et seq. GENERAL SERVICES ADMINISTRATION D. Determination to Issue an Interim Rule [FAC 2005–42; FAR Case 2009–018; Item XI; Docket 2010–0082, Sequence 1] A determination has been made under the authority of the Secretary of Defense, the Administrator of General Services, and the Administrator of the National Aeronautics and Space Administration that urgent and compelling reasons exist to promulgate this interim rule without prior opportunity for public comment. This action is necessary because this rule implements a final rule promulgated by the CAS Board, which went into effect on June 2, 2008. Further, the CAS Board rule already gone through the public rulemaking process. However, pursuant to Public Law 98–577 and FAR 1.5013(b), the Councils will consider public comments received in response to this interim rule in the formation of the final rule. RIN 9000–AL53 List of Subjects in 48 CFR Part 31 Government procurement. Dated: June 2, 2010. Edward Loeb, Acting Director, Acquisition Policy Division. Therefore, DoD, GSA, and NASA amend 48 CFR part 31 as set forth below: ■ PART 31—CONTRACT COST PRINCIPLES AND PROCEDURES 1. The authority citation for 48 CFR part 31 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). 2. Amend section 31.205–6 by removing paragraph (q)(2)(i); redesignating paragraphs (q)(2)(ii) through (q)(2)(vi) as paragraphs (q)(2)(i) through (q)(2)(v), respectively; and revising the newly redesignated (q)(2)(i) to read as follows: ■ 31.205–6 Compensation for personal services. * * * * * (q) * * * (2) * * * (i) The contractor measures, assigns, and allocates costs in accordance with 48 CFR 9904.415. * * * * * [FR Doc. 2010–14181 Filed 6–15–10; 8:45 am] BILLING CODE 6820–EP–S PO 00000 Frm 00032 Fmt 4701 Sfmt 4700 NATIONAL AERONAUTICS AND SPACE ADMINISTRATION 48 CFR Parts 52 and 53 Federal Acquisition Regulation; FAR Case 2009–018, Payrolls and Basic Records AGENCIES: Department of Defense (DoD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA). ACTION: Interim rule with request for comments. SUMMARY: The Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council (Councils) are issuing an interim rule amending the Federal Acquisition Regulation (FAR) to revise the FAR clause, Payrolls and Basic Records. This revision implements a Department of Labor rule to protect the privacy of workers. Effective Date: June 16, 2010. Comment Date: Interested parties should submit written comments to the Regulatory Secretariat on or before August 16, 2010 to be considered in the formulation of a final rule. ADDRESSES: Submit comments identified by FAC 2005–42, FAR Case 2009–018, by any of the following methods: • Regulations.gov: http:// www.regulations.gov. Submit comments via the Federal eRulemaking portal by inputting ‘‘FAR Case 2009–018’’ under the heading ‘‘Enter Keyword or ID’’ and selecting ‘‘Search’’. Select the link ‘‘Submit a Comment’’ that corresponds with ‘‘FAR Case 2009–018’’. Follow the instructions provided at the ‘‘Submit a Comment’’ screen. Please include your name, company name (if any), and ‘‘FAR Case 2009–018’’ on your attached document. • Fax: 202–501–4067. • Mail: General Services Administration, Regulatory Secretariat (MVCB), 1800 F Street, NW., Room 4041, ATTN: Hada Flowers, Washington, DC 20405. Instructions: Please submit comments only and cite FAC 2005–42, FAR Case 2009–018, in all correspondence related to this case. All comments received will be posted without change to http:// DATES: E:\FR\FM\16JNR3.SGM 16JNR3

Agencies

[Federal Register Volume 75, Number 115 (Wednesday, June 16, 2010)]
[Rules and Regulations]
[Pages 34285-34286]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-14181]


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

DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Part 31

[FAC 2005-42; FAR Case 2009-026; Item X; Docket 2010-0088, Sequence 1]
RIN 9000-AL54


Federal Acquisition Regulation; FAR Case 2009-026, Compensation 
for Personal Services

AGENCIES: Department of Defense (DoD), General Services Administration 
(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Interim rule with request for comments.

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

SUMMARY: The Civilian Agency Acquisition Council and the Defense 
Acquisition Regulations Council (Councils) are issuing an interim rule 
amending the FAR to align the FAR with the revised Cost Accounting 
Standards (CAS) Board standards 412, ``Cost Accounting Standard for 
composition and measurement of pension cost;'' and 415, ``Accounting 
for the cost of deferred compensation.''

DATES: Effective Date: June 16, 2010.
    Comment Date: Interested parties should submit written comments to 
the Regulatory Secretariat on or before August 16, 2010 to be 
considered in the formulation of a final rule.

ADDRESSES: Submit comments identified by FAC 2005-42, FAR Case 2009-
026, by any of the following methods:
     Regulations.gov: http://www.regulations.gov.Submit 
comments via the Federal eRulemaking portal by inputting ``FAR Case 
2009-026'' under the heading ``Enter Keyword or ID'' and selecting 
``Search''. Select the link ``Submit a Comment'' that corresponds with 
``FAR Case 2009-026''. Follow the instructions provided at the ``Submit 
a Comment'' screen. Please include your name, company name (if any), 
and ``FAR Case 2009-026'' on your attached document.
     Fax: 202-501-4067.
     Mail: General Services Administration, Regulatory 
Secretariat (MVCB), 1800 F Street, NW., Room 4041, ATTN: Hada Flowers, 
Washington, DC 20405.
    Instructions: Please submit comments only and cite FAC 2005-42, FAR 
Case 2009-026, 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: For clarification of content, contact 
Mr. Edward N. Chambers, Procurement Analyst, at (202) 501-3221. For 
information pertaining to status or publication schedules, contact the 
Regulatory Secretariat at (202) 501-4755. Please cite FAC 2005-42, FAR 
Case 2009-026.

SUPPLEMENTARY INFORMATION:

A. Background

    The CAS Board published a final rule in the Federal Register at 73 
FR 23961 on May 1, 2008, to amend CAS 412, ``Cost Accounting Standard 
for composition and measurement of pension cost,'' and CAS 415, 
``Accounting for the cost of deferred compensation.'' The CAS Board 
specified that the accounting of Employee Stock Ownership Plan (ESOP) 
costs, regardless of type, would be covered by the provisions of CAS 
415 only and not by CAS 412. The CAS Board also provided criteria in 
CAS 415 for measuring ESOP costs and assigning these costs to cost 
accounting periods.In order to maintain consistency between CAS and FAR 
in matters relating to the administration of CAS, the Councils are 
amending the FAR as follows:

[[Page 34286]]

    1. FAR 31.205-6(q)(2)(i) is deleted in its entirety to reflect the 
amendments promulgated by the CAS Board on May 1, 2008.
    2. FAR 31.205-6(q)(2)(ii) through (vi) are redesignated as 
paragraphs FAR 31.205-6(q)(2)(i) through (v) due to the deletion of the 
existing FAR 31.205-6(q)(2)(i).
    3. Redesignated FAR 31.205-6(q)(2)(i) is revised to reflect the 
amendments promulgated by the CAS Board on May 1, 2008.
    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. Regulatory Flexibility Act

    The Councils do not expect this interim 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 affected small businesses are currently required to comply with 
CAS 412 and CAS 415. While small businesses are otherwise not subject 
to CAS, they are subject to selected standards for the purpose of 
determining allowability of costs under Government contracts. Among 
these standards are CAS 412 and CAS 415 as set forth in FAR 31.205-
6(q). For small businesses currently using CAS 415, there will be no 
increase in cost or effort. For small businesses that must change from 
CAS 412 to CAS 415, the possible change from measuring costs in 
accordance with CAS 412 to CAS 415 would result, at most, in a 
negligible increase in administrative burden because of the 
similarities between CAS 412 and 415. The potential increase of 
administrative effort, albeit minor, will be offset by the uniformity 
and consistency in accounting for deferred compensation costs achieved 
by this rule that will benefit all entities by reducing their 
administrative burden. Therefore, an Initial Regulatory Flexibility 
Analysis has not been performed. The Councils invite comments from 
small business concerns and other interested parties on the expected 
impact of this rule on small entities.
    The Councils will also consider comments from small entities 
concerning the existing regulations in FAR part 31 affected by this 
rule in accordance with 5 U.S.C. 610. Interested parties must submit 
such comments separately and should cite 5 U.S.C. 610 (FAC 2005-42, FAR 
Case 2009-026) in all correspondence.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the 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. 
chapter 35, et seq.

D. Determination to Issue an Interim Rule

    A determination has been made under the authority of the Secretary 
of Defense, the Administrator of General Services, and the 
Administrator of the National Aeronautics and Space Administration that 
urgent and compelling reasons exist to promulgate this interim rule 
without prior opportunity for public comment. This action is necessary 
because this rule implements a final rule promulgated by the CAS Board, 
which went into effect on June 2, 2008. Further, the CAS Board rule 
already gone through the public rulemaking process. However, pursuant 
to Public Law 98-577 and FAR 1.501-3(b), the Councils will consider 
public comments received in response to this interim rule in the 
formation of the final rule.

List of Subjects in 48 CFR Part 31

    Government procurement.

    Dated: June 2, 2010.
Edward Loeb,
Acting Director, Acquisition Policy Division.

0
Therefore, DoD, GSA, and NASA amend 48 CFR part 31 as set forth below:

PART 31--CONTRACT COST PRINCIPLES AND PROCEDURES

0
1. The authority citation for 48 CFR part 31 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).

0
2. Amend section 31.205-6 by removing paragraph (q)(2)(i); 
redesignating paragraphs (q)(2)(ii) through (q)(2)(vi) as paragraphs 
(q)(2)(i) through (q)(2)(v), respectively; and revising the newly 
redesignated (q)(2)(i) to read as follows:


31.205-6  Compensation for personal services.

* * * * *
    (q) * * *
    (2) * * *
    (i) The contractor measures, assigns, and allocates costs in 
accordance with 48 CFR 9904.415.
* * * * *
[FR Doc. 2010-14181 Filed 6-15-10; 8:45 am]
BILLING CODE 6820-EP-S