Federal Acquisition Regulation; TINA Interest Calculations, 39242-39243 [2011-16677]
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Federal Register / Vol. 76, No. 128 / Tuesday, July 5, 2011 / Rules and Regulations
52.223–18 Encouraging Contractor
Policies To Ban Text Messaging While
Driving.
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Encouraging Contractor Policies To Ban
Text Messaging While Driving (AUG
2011)
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(c) The Contractor is encouraged to—
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[FR Doc. 2011–16676 Filed 7–1–11; 8:45 am]
BILLING CODE 6820–EP–P
DEPARTMENT OF DEFENSE
GENERAL SERVICES
ADMINISTRATION
NATIONAL AERONAUTICS AND
SPACE ADMINISTRATION
48 CFR Part 52
[FAC 2005–53; FAR Case 2009–034; Item
VI; Docket 2010–0098, Sequence 1]
RIN 9000–AL73
Federal Acquisition Regulation; TINA
Interest Calculations
Department of Defense (DoD),
General Services Administration (GSA),
and National Aeronautics and Space
Administration (NASA).
ACTION: Final rule.
AGENCIES:
DoD, GSA, and NASA are
issuing a final rule amending the
Federal Acquisition Regulation (FAR) to
revise the FAR clauses on price
reduction for defective pricing to
require compound interest calculations
be applied to Government overpayments
as a result of defective cost or pricing
data.
SUMMARY:
Effective Date: August 4, 2011.
Mr.
Edward N. Chambers, Procurement
Analyst, at (202) 501–3221 for
clarification of content. For information
pertaining to status or publication
schedules, contact the Regulatory
Secretariat at (202) 501–4755. Please
cite FAC 2005–53, FAR Case 2009–034.
SUPPLEMENTARY INFORMATION:
DATES:
FOR FURTHER INFORMATION CONTACT:
mstockstill on DSK4VPTVN1PROD with RULES2
I. Background
On September 14, 2009, the U.S.
Court of Appeals for the Federal Circuit
(CAFC) issued a decision regarding the
method of interest calculation on Cost
Accounting Standards (CAS) cost
impacts (see GATES v. Raytheon Co.,
584 F.3d 1062 (Fed. Cir. 2009)). The
interest on CAS cost impacts is set by
reference in the enabling statute to 26
U.S.C. 6621. The CAFC ruled that the
VerDate Mar<15>2010
20:17 Jul 01, 2011
Jkt 223001
citation led to calculation of the interest
using daily compounding. The Truth in
Negotiation Act (TINA) also references
26 U.S.C. 6621 for interest calculation.
(See 41 U.S.C. 3507 and 10 U.S.C.
2306a).
A proposed rule was published on
September 22, 2010, (75 FR 57719) with
regard to the application of compound
interest calculations to Government
overpayments as a result of defective
cost or pricing data. This rule replaces
the term ‘‘simple interest’’ as the
requirement for calculating interest for
Truth in Negotiations Act cost impacts
with the phrase ‘‘Interest compounded
daily as required by 26 U.S.C. 6622.’’
Thus, compound interest calculations
will be applied to Government
overpayments as a result of defective
cost or pricing data. DoD, GSA, and
NASA received no comments on the
proposed rule.
II. Executive Orders 12866 and 13563
Executive Orders (E.O.s) 12866 and
13563 direct agencies to assess all costs
and benefits of available regulatory
alternatives and, if regulation is
necessary, to select regulatory
approaches that maximize net benefits
(including potential economic,
environmental, public health and safety
effects, distributive impacts, and
equity). E.O. 13563 emphasizes the
importance of quantifying both costs
and benefits, of reducing costs, of
harmonizing rules, and of promoting
flexibility. This is not a significant
regulatory action and, therefore, was not
subject to review under section 6(b) of
E.O. 12866, Regulatory Planning and
Review, dated September 30, 1993. This
rule is not a major rule under 5 U.S.C.
804.
III. Regulatory Flexibility Act
The Department of Defense, the
General Services Administration, and
the National Aeronautics and Space
Administration certify that this final
rule will not 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 the
rule merely clarifies the statutory
method for calculating interest in the
rare instances when a contractor is
found to be in violation of TINA. Since
TINA requirements generally do not
apply to contracts with small entities,
and since the numbers of contractors
found to have submitted defective cost
or pricing data are a minute subset of
contractors to whom TINA applies, the
rule is not expected to apply to a
substantial number of small entities.
Furthermore, the differential in interest
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Fmt 4701
Sfmt 4700
computing methods is not expected to
amount to a significant economic
impact.
IV. Paperwork Reduction Act
The final rule does not contain any
information collection requirements that
require the approval of the Office of
Management and Budget under the
Paperwork Reduction Act (44 U.S.C.
chapter 35).
List of Subjects in 48 CFR Part 52
Government procurement.
Dated: June 28, 2011.
Laura Auletta,
Acting Director, Office of Governmentwide
Acquisition Policy, Office of Acquisition
Policy.
Therefore, DoD, GSA, and NASA
amend 48 CFR part 52 as set forth
below:
PART 52—SOLICITATION PROVISIONS
AND CONTRACT CLAUSES
1. The authority citation for 48 CFR
part 52 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 52.214–27 by
revising the date of the clause and
paragraph (e)(1) to read as follows:
■
52.214–27 Price Reduction for Defective
Certified Cost or Pricing Data—
Modifications—Sealed Bidding.
*
*
*
*
*
Price Reduction for Defective Certified
Cost or Pricing Data—Modifications—
Sealed Bidding (AUG 2011)
*
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(e) * * *
*
*
(1) Interest compounded daily, as required
by 26 U.S.C. 6622, on the amount of such
overpayment to be computed from the date(s)
of overpayment to the Contractor to the date
the Government is repaid by the Contractor
at the applicable underpayment rate effective
for each quarter prescribed by the Secretary
of the Treasury under 26 U.S.C. 6621(a)(2);
and
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3. Amend section 52.215–10 by
revising the date of the clause and
paragraph (d)(1) to read as follows:
■
52.215–10 Price Reduction for Defective
Certified Cost or Pricing Data.
*
*
*
*
*
Price Reduction for Defective Certified
Cost or Pricing Data (AUG 2011)
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(d) * * *
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(1) Interest compounded daily, as required
by 26 U.S.C. 6622, on the amount of such
overpayment to be computed from the date(s)
E:\FR\FM\05JYR2.SGM
05JYR2
39243
Federal Register / Vol. 76, No. 128 / Tuesday, July 5, 2011 / Rules and Regulations
of overpayment to the Contractor to the date
the Government is repaid by the Contractor
at the applicable underpayment rate effective
for each quarter prescribed by the Secretary
of the Treasury under 26 U.S.C. 6621(a)(2);
and
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of the Treasury under 26 U.S.C. 6621(a)(2);
and
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[FR Doc. 2011–16677 Filed 7–1–11; 8:45 am]
BILLING CODE 6820–EP–P
*
DEPARTMENT OF DEFENSE
4. Amend section 52.215–11 by
revising the date of the clause and
paragraph (e)(1) to read as follows:
■
GENERAL SERVICES
ADMINISTRATION
52.215–11 Price Reduction for Defective
Certified Cost or Pricing Data—
Modifications.
NATIONAL AERONAUTICS AND
SPACE ADMINISTRATION
*
48 CFR Chapter 1
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Price Reduction for Defective Certified
Cost or Pricing Data—Modifications
(AUG 2011)
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(e) * * *
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[Docket FAR 2011–0077, Sequence 5]
Federal Acquisition Regulation;
Federal Acquisition Circular 2005–53;
Small Entity Compliance Guide
Department of Defense (DoD),
General Services Administration (GSA),
and National Aeronautics and Space
Administration (NASA).
ACTION: Small Entity Compliance Guide.
AGENCY:
(1) Interest compounded daily, as required
by 26 U.S.C. 6622, on the amount of such
overpayment to be computed from the date(s)
of overpayment to the Contractor to the date
the Government is repaid by the Contractor
at the applicable underpayment rate effective
for each quarter prescribed by the Secretary
This document is issued
under the joint authority of DOD, GSA,
SUMMARY:
and NASA. This Small Entity
Compliance Guide has been prepared in
accordance with section 212 of the
Small Business Regulatory Enforcement
Fairness Act of 1996. It consists of a
summary of rules appearing in Federal
Acquisition Circular (FAC) 2005–53,
which amend the Federal Acquisition
Regulation (FAR). An asterisk (*) next to
a rule indicates that a regulatory
flexibility analysis has been prepared.
Interested parties may obtain further
information regarding these rules by
referring to FAC 2005–53, which
precedes this document. These
documents are also available via the
Internet at https://www.regulations.gov.
For effective dates see separate
documents, which follow.
DATES:
The
analyst whose name appears in the table
below. Please cite FAC 2005–53 and the
specific FAR case number. For
information pertaining to status or
publication schedules, contact the
Regulatory Secretariat at (202) 501–
4755.
FOR FURTHER INFORMATION CONTACT:
SUPPLEMENTARY INFORMATION:
LIST OF RULES IN FAC 2005–53
Item
Subject
I .......
II ......
III .....
IV * ..
V .....
VI ....
Equal Opportunity for Veterans .......................................................................................................................
Unique Procurement Instrument Identifier .......................................................................................................
Uniform Suspension and Debarment Requirement .........................................................................................
Extension of Sunset Date for Protests of Task and Delivery Orders (Interim) ...............................................
Encouraging Contractor Policies To Ban Text Messaging While Driving .......................................................
TINA Interest Calculations ...............................................................................................................................
mstockstill on DSK4VPTVN1PROD with RULES2
Summaries for each FAR rule follow.
For the actual revisions and/or
amendments made by these FAR cases,
refer to the specific item numbers and
subject set forth in the documents
following these item summaries. FAC
2005–53 amends the FAR as specified
below:
Item I—Equal Opportunity for Veterans
(FAR Case 2009–007)
The interim rule, published
September 29, 2010, is adopted as final
with minor changes. A definition from
the clause at FAR 52.222–35 for
‘‘executive and senior management’’ is
added to FAR subpart 22.13. The
interim rule implemented Department
of Labor regulations on equal
opportunity provisions for various
categories of military veterans.
Item II—Unique Procurement
Instrument Identifier (FAR Case 2009–
023)
This final rule amends the FAR to
define the requirement for an agency
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20:17 Jul 01, 2011
Jkt 223001
FAR case
unique procurement instrument
identifier (PIID) and, to extend the
requirement for using PIIDs to
solicitations, contracts, and related
procurement instruments.
This final rule adds two new
definitions at 4.001, revises 4.605(a),
and adds a new FAR subpart 4.16—
Unique Procurement Instrument
Identifiers, to prescribe policies and
procedures for assigning PIIDs. The
Government expects that these changes
will reduce data errors and
interoperability problems across the
Federal Government’s business
processes which were created by
inconsistent and non-unique PIID
assignment and use. These changes will
not impose new requirements on small
businesses, as the rule only addresses
internal Government policy and
procedures.
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Fmt 4701
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2009–007
2009–023
2009–036
2011–015
2009–028
2009–034
Analyst
McFadden.
Morgan.
Jackson.
Lague.
Clark.
Chambers.
Item III—Uniform Suspension and
Debarment Requirement (FAR Case
2009–036)
This rule adopts as final, with minor
changes, an interim rule which
implemented section 815 of the
National Defense Authorization Act for
Fiscal Year 2010, Public Law 111–84.
The law requires that suspension and
debarment requirements flow down to
all subcontracts except contracts for
commercially available off-the-shelf
items, and in the case of commercial
items, first-tier subcontracts only.
This requirement protects the
Government against contracting with
entities at any tier who are debarred,
suspended, or proposed for debarment.
This rule does not have a significant
impact on the Government, contractors,
or any automated systems.
E:\FR\FM\05JYR2.SGM
05JYR2
]]>Agencies
[Federal Register Volume 76, Number 128 (Tuesday, July 5, 2011)]
[Rules and Regulations]
[Pages 39242-39243]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-16677]
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Part 52
[FAC 2005-53; FAR Case 2009-034; Item VI; Docket 2010-0098, Sequence 1]
RIN 9000-AL73
Federal Acquisition Regulation; TINA Interest Calculations
AGENCIES: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: DoD, GSA, and NASA are issuing a final rule amending the
Federal Acquisition Regulation (FAR) to revise the FAR clauses on price
reduction for defective pricing to require compound interest
calculations be applied to Government overpayments as a result of
defective cost or pricing data.
DATES: Effective Date: August 4, 2011.
FOR FURTHER INFORMATION CONTACT: Mr. Edward N. Chambers, Procurement
Analyst, at (202) 501-3221 for clarification of content. For
information pertaining to status or publication schedules, contact the
Regulatory Secretariat at (202) 501-4755. Please cite FAC 2005-53, FAR
Case 2009-034.
SUPPLEMENTARY INFORMATION:
I. Background
On September 14, 2009, the U.S. Court of Appeals for the Federal
Circuit (CAFC) issued a decision regarding the method of interest
calculation on Cost Accounting Standards (CAS) cost impacts (see GATES
v. Raytheon Co., 584 F.3d 1062 (Fed. Cir. 2009)). The interest on CAS
cost impacts is set by reference in the enabling statute to 26 U.S.C.
6621. The CAFC ruled that the citation led to calculation of the
interest using daily compounding. The Truth in Negotiation Act (TINA)
also references 26 U.S.C. 6621 for interest calculation. (See 41 U.S.C.
3507 and 10 U.S.C. 2306a).
A proposed rule was published on September 22, 2010, (75 FR 57719)
with regard to the application of compound interest calculations to
Government overpayments as a result of defective cost or pricing data.
This rule replaces the term ``simple interest'' as the requirement for
calculating interest for Truth in Negotiations Act cost impacts with
the phrase ``Interest compounded daily as required by 26 U.S.C. 6622.''
Thus, compound interest calculations will be applied to Government
overpayments as a result of defective cost or pricing data. DoD, GSA,
and NASA received no comments on the proposed rule.
II. Executive Orders 12866 and 13563
Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess
all costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health and safety effects, distributive impacts, and equity). E.O.
13563 emphasizes the importance of quantifying both costs and benefits,
of reducing costs, of harmonizing rules, and of promoting flexibility.
This is not a significant regulatory action and, therefore, was not
subject to review under section 6(b) of E.O. 12866, Regulatory Planning
and Review, dated September 30, 1993. This rule is not a major rule
under 5 U.S.C. 804.
III. Regulatory Flexibility Act
The Department of Defense, the General Services Administration, and
the National Aeronautics and Space Administration certify that this
final rule will not 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 the rule merely
clarifies the statutory method for calculating interest in the rare
instances when a contractor is found to be in violation of TINA. Since
TINA requirements generally do not apply to contracts with small
entities, and since the numbers of contractors found to have submitted
defective cost or pricing data are a minute subset of contractors to
whom TINA applies, the rule is not expected to apply to a substantial
number of small entities. Furthermore, the differential in interest
computing methods is not expected to amount to a significant economic
impact.
IV. Paperwork Reduction Act
The final rule does not contain any information collection
requirements that require the approval of the Office of Management and
Budget under the Paperwork Reduction Act (44 U.S.C. chapter 35).
List of Subjects in 48 CFR Part 52
Government procurement.
Dated: June 28, 2011.
Laura Auletta,
Acting Director, Office of Governmentwide Acquisition Policy, Office of
Acquisition Policy.
Therefore, DoD, GSA, and NASA amend 48 CFR part 52 as set forth
below:
PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
0
1. The authority citation for 48 CFR part 52 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 52.214-27 by revising the date of the clause and
paragraph (e)(1) to read as follows:
52.214-27 Price Reduction for Defective Certified Cost or Pricing
Data--Modifications--Sealed Bidding.
* * * * *
Price Reduction for Defective Certified Cost or Pricing Data--
Modifications--Sealed Bidding (AUG 2011)
* * * * *
(e) * * *
(1) Interest compounded daily, as required by 26 U.S.C. 6622, on
the amount of such overpayment to be computed from the date(s) of
overpayment to the Contractor to the date the Government is repaid
by the Contractor at the applicable underpayment rate effective for
each quarter prescribed by the Secretary of the Treasury under 26
U.S.C. 6621(a)(2); and
* * * * *
0
3. Amend section 52.215-10 by revising the date of the clause and
paragraph (d)(1) to read as follows:
52.215-10 Price Reduction for Defective Certified Cost or Pricing
Data.
* * * * *
Price Reduction for Defective Certified Cost or Pricing Data (AUG 2011)
* * * * *
(d) * * *
(1) Interest compounded daily, as required by 26 U.S.C. 6622, on
the amount of such overpayment to be computed from the date(s)
[[Page 39243]]
of overpayment to the Contractor to the date the Government is
repaid by the Contractor at the applicable underpayment rate
effective for each quarter prescribed by the Secretary of the
Treasury under 26 U.S.C. 6621(a)(2); and
* * * * *
0
4. Amend section 52.215-11 by revising the date of the clause and
paragraph (e)(1) to read as follows:
52.215-11 Price Reduction for Defective Certified Cost or Pricing
Data--Modifications.
* * * * *
Price Reduction for Defective Certified Cost or Pricing Data--
Modifications (AUG 2011)
* * * * *
(e) * * *
(1) Interest compounded daily, as required by 26 U.S.C. 6622, on
the amount of such overpayment to be computed from the date(s) of
overpayment to the Contractor to the date the Government is repaid
by the Contractor at the applicable underpayment rate effective for
each quarter prescribed by the Secretary of the Treasury under 26
U.S.C. 6621(a)(2); and
* * * * *
[FR Doc. 2011-16677 Filed 7-1-11; 8:45 am]
BILLING CODE 6820-EP-P
