Cost Accounting Standards; Allocation of Home Office Expenses to Segments, 53377-53378 [2011-21897]
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Federal Register / Vol. 76, No. 166 / Friday, August 26, 2011 / Proposed Rules
encourage reclamation in a way that
does not result in increased risk to
human health and the environment
from discarded hazardous secondary
material. Several requests were received
from potential commentors, to extend
the comment period. EPA is hereby
extending the comment period, which
was set to end on September 20, 2011,
to October 20, 2011.
To submit comments, or access the
docket, please follow the detailed
instructions as provided under
ADDRESSES. If you have questions,
consult the individuals listed under FOR
FURTHER INFORMATION CONTACT.
Dated: August 22, 2011.
Suzanne Rudzinski,
Director, Office of Resource Conservation and
Recovery, Office of Solid Waste and
Emergency Response.
[FR Doc. 2011–21931 Filed 8–25–11; 8:45 am]
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DEPARTMENT OF HEALTH AND
HUMAN SERVICES
42 CFR Part 5
Negotiated Rulemaking Committee on
Designation of Medically Underserved
Populations and Health Professional
Shortage Areas; Notice of Meeting
Health Resources and Services
Administration, HHS.
ACTION: Negotiated Rulemaking
Committee meeting.
AGENCY:
In accordance with section
10(a)(2) of the Federal Advisory
Committee Act (Pub. L. 92–463), notice
is hereby given of the following meeting
of the Negotiated Rulemaking
Committee on Designation of Medically
Underserved Populations and Health
Professional Shortage Areas.
DATES: Meeting will be held on
September 15, 2011, 12 p.m.–5 p.m.
ADDRESSES: Webinar format.
FOR FURTHER INFORMATION CONTACT: For
more information, please contact
LaCrystal McNair, Center for Healthcare
Workforce Analysis, Bureau of Health
Professions, Health Resources and
Services Administration, Room 9–49,
Parklawn Building, 5600 Fishers Lane,
Rockville, Maryland 20857, Telephone
(301) 443–3578, E-mail:
lmcnair@hrsa.gov. Information can also
be found at the following Web site:
https://www.hrsa.gov/
advisorycommittees/shortage/.
SUPPLEMENTARY INFORMATION:
Status: The meeting will be open to
the public.
Purpose: The purpose of the
Negotiated Rulemaking Committee on
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SUMMARY:
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Designation of Medically Underserved
Populations and Health Professional
Shortage Areas is to establish criteria
and a comprehensive methodology for
designation of Medically Underserved
Populations (MUPs) and Primary Care
Health Professional Shortage Areas
(HPSAs), using a Negotiated
Rulemaking (NR) process. It is hoped
that use of the NR process will yield a
consensus among technical experts and
stakeholders on a new rule for
designation of MUPs and Primary Care
HPSAs, which would be published as
an Interim Final Rule in accordance
with Section 5602 of the Affordable
Care Act, Public Law 111–148.
Agenda: The meeting will include a
discussion of various components of a
possible methodology for identifying
areas of shortage and underservice,
based on the recommendations of the
Committee in the previous meeting. The
agenda will be available on the
Committee’s Web site (https://
www.hrsa.gov/advisorycommittees/
shortage/) one day prior to the meeting.
Agenda items are subject to change as
priorities dictate.
For members of the public interested
in participating in the webinar, please
contact LaCrystal McNair by e-mail at
lmcnair@hrsa.gov. Requests to attend
can be made up to two days prior to the
meeting. Participants will receive an email response containing the link to the
webinar. Requests to provide written
comments should be sent to LaCrystal
McNair by e-mail at least 10 days prior
to the meeting. Members of the public
will have the opportunity to provide
written comments before and after the
meeting.
The Committee is working under tight
timeframes to meet the reporting
requirement in the Affordable Care Act.
Due to the complexity of the issue, the
Committee has been granted additional
time to meet its final report deadline. As
a result, meetings were added to the
Committee schedule. The logistical
challenges of expanding the meeting
schedule hindered an earlier
publication of this meeting notice.
Dated: August 22, 2011.
Reva Harris,
Acting Director, Division of Policy and
Information Coordination.
[FR Doc. 2011–21883 Filed 8–25–11; 8:45 am]
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53377
OFFICE OF MANAGEMENT AND
BUDGET
Office of Federal Procurement Policy
48 CFR Part 9904
Cost Accounting Standards; Allocation
of Home Office Expenses to Segments
Office of Management and
Budget (OMB), Office of Federal
Procurement Policy (OFPP), Cost
Accounting Standards Board (Board).
ACTION: Notice of Discontinuation of
Rulemaking.
AGENCY:
The Office of Federal
Procurement Policy (OFPP), Cost
Accounting Standards (CAS) Board, is
providing public notification of the
decision to discontinue the rulemaking
in the review of the CAS 403 thresholds
at 48 CFR 9904.403–40(c)(2) that require
use of the three factor formula described
at 48 CFR 9904.403–50(c)(1) for
allocating residual home office
expenses.
FOR FURTHER INFORMATION CONTACT:
Raymond J.M. Wong, Director, Cost
Accounting Standards Board (telephone:
202–395–6805; e-mail:
Raymond_wong@omb.eop.gov).
SUPPLEMENTARY INFORMATION:
SUMMARY:
A. Regulatory Process
Rules, Regulations and Standards
issued by the Cost Accounting
Standards (Board) are codified at 48
CFR chapter 99. The Office of Federal
Procurement Policy Act, at 41 U.S.C.
1502(c) [formerly, 41 U.S.C. 422(g)],
requires the Board, prior to the
establishment of any new or revised
Cost Accounting Standard, to complete
a prescribed rulemaking process. The
process generally consists of four steps.
The CAS Board has completed step
one of the statutory rulemaking process,
which required the Board to consult
with interested persons concerning the
advantages, disadvantages, and
improvements anticipated in the pricing
and administration of Government
contracts as a result of the adoption of
a proposed Standard. This notice
announces the discontinuation of the
rulemaking after completing step one of
the four-step process in accordance with
the requirements at 41 U.S.C. 1502(c).
B. Background and Summary
The CAS Board opened a review of
the CAS 403 operating revenue
thresholds at the urging of interested
parties, an industry group and a Federal
agency. They recommended revisions to
the CAS operating revenue thresholds
for determining whether a contractor is
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26AUP1
53378
Federal Register / Vol. 76, No. 166 / Friday, August 26, 2011 / Proposed Rules
required to use the three factor formula
to allocate residual home office
expenses to the segments. To update the
thresholds to reflect the changed
economic and business environment
since they were initially established, the
parties took different approaches to
revising the thresholds. One party
advocated that the operating revenue
thresholds be raised by 400 percent to
reflect the changes in the consumer
price index (CPI) from 1973 to 2003.
The other party urged the Board to
conduct a Staff Study, similar to that
performed by the Board to establish the
current thresholds. On February 13,
2008, the CAS Board published a Staff
Discussion Paper (SDP) on the
Allocation of Home Office Expenses to
Segments as the first step in its review
to determine whether the current CAS
403 thresholds should be revised (73 FR
8260).
D. Conclusion
After reviewing the comments and
regulatory history of CAS 403, the CAS
Board believes that it would be prudent
to discontinue the review of the CAS
403 three factor formula operating
revenue thresholds at this time. No
evidence has been presented to the
Board that the current thresholds are
creating an inequity, or that adjusting
the thresholds would substantially
change the outcome, i.e., the pool of
contractors required to use the three
factor formula to allocate residual home
office expenses to the segments would
not change significantly. The Board will
revisit the issue in the future if
circumstances warrant doing so.
Daniel I. Gordon,
Chair, Cost Accounting Standards Board.
[FR Doc. 2011–21897 Filed 8–25–11; 8:45 am]
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C. Public Comments
Three respondents submitted
comments in response to the SDP. Two
respondents supported a comprehensive
study to determine the appropriate
operating revenue thresholds at 48 CFR
9904.403–40(c)(2) for the application of
the three factor formula described at 48
CFR 9904.403–50(c)(1), while another
respondent supported adjusting the
current thresholds by the change in the
CPI. The arguments for the
comprehensive study included the
development of objective data to
understand the impact of adjusting the
operating revenue thresholds upon
contractors subject to the three factor
formula, and the possibility to measure
the relationship of residual expenses to
operating revenue for a representative
contractor population. An impediment
to conducting the comprehensive study
is the time and effort required to
compile and evaluate the data. In
support of adjusting the current
operating revenue thresholds by the
change in the CPI, a respondent argued
that the CPI is readily available and an
independent, objective measure, while
the Staff Study will require significant
time and effort to accomplish without
any certainty that the results would
materially differ or be demonstrably
superior to a CPI indexing approach.
The other respondents noted that
increasing the current thresholds by the
change in the CPI was arbitrary and
would risk exposing the acquisition
community to the same underlying
conditions which caused the CAS Board
to promulgate CAS 403 originally.
Response: The CAS Board noted the
arguments provided by the respondents.
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15:45 Aug 25, 2011
Jkt 223001
OFFICE OF MANAGEMENT AND
BUDGET
Office of Federal Procurement Policy
48 CFR Part 9904
Cost Accounting Standards:
Accounting for Insurance Costs
Cost Accounting Standards
Board (Board), Office of Federal
Procurement Policy (OFPP), Office of
Management and Budget (OMB).
ACTION: Notice of Discontinuation of
Rulemaking.
AGENCY:
The Office of Federal
Procurement Policy (OFPP), Cost
Accounting Standards (CAS) Board, is
providing public notification of the
decision to discontinue the rulemaking
on the development of an amendment to
Cost Accounting Standard (CAS) 416
regarding the use of the term
‘‘catastrophic losses’’ at 48 CFR
9904.416–50(b)(1).
FOR FURTHER INFORMATION CONTACT: Eric
Shipley, Project Director, Cost
Accounting Standards Board (telephone:
410–786–6381).
SUPPLEMENTARY INFORMATION:
SUMMARY:
A. Regulatory Process
Rules, Regulations and Standards
issued by the Cost Accounting
Standards Board (Board) are codified at
48 CFR chapter 99. The Office of
Federal Procurement Policy Act, at 41
U.S.C. 1502(c) [formerly, 41 U.S.C.
422(g)], requires the Board, prior to the
establishment of any new or revised
Cost Accounting Standard, to complete
PO 00000
Frm 00035
Fmt 4702
Sfmt 4702
a prescribed rulemaking process. The
process generally consists of four steps.
The Board has already completed step
one of the statutory rulemaking process,
which requires the Board to consult
with interested persons concerning the
advantages, disadvantages, and
improvements anticipated in the pricing
and administration of government
contracts as a result of the adoption of
a proposed Standard. This notice
announces the discontinuation of the
rulemaking after completing step one of
the four-step process in accordance with
the requirements at 41 U.S.C. 1502(c).
B. Background and Summary
Prior Promulgations
In a letter dated September 26, 2000,
the Office of the Under Secretary of
Defense for Acquisition, Technology
and Logistics requested that the Board
consider whether the word
‘‘catastrophic’’ in the term ‘‘catastrophic
losses’’ should be replaced with a term
such as ‘‘significant’’ or ‘‘very large’’ in
9904.416–50(b)(1) in order to (a) more
closely align the Standard with what
was intended by its original
promulgators and (b) eliminate any
confusion between 9904.416–50(b)(1)
and FAR 31.205–19, Insurance cost. At
its May 13, 2005 meeting, the CAS
Board directed the staff to begin work
on a Staff Discussion Paper (SDP). On
January 26, 2006, the Board published
the SDP, ‘‘Accounting for Insurance
Costs’’ (71 FR 4335) which in particular,
addressed the use of the term
‘‘catastrophic losses’’ in CAS 416.
Public Comments
The Board received public comments
from two respondents to the SDP. One
respondent was concerned whether the
term ‘‘catastrophic losses’’ is intended
to create a classification of event
characterized by rare occurrence and
significant loss, or whether it is only the
magnitude of a given loss that is
defining as ‘‘catastrophic.’’ This
respondent believed that self-insurance
should be an acceptable method to
cover catastrophic losses, such as
earthquakes and wind damage, as well
as ‘‘other significant and non-recurring
losses such as unusually large medical
claims, major fires, or other losses that
are significantly higher than might
normally be expected.’’ A primary
concern was that ‘‘the FAR, however,
does not definitively address their
allowability and CAS is unclear how
costs for such significant actual self
insured losses are to be measured and
reflected in projected annual average
losses.’’
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]]>Agencies
[Federal Register Volume 76, Number 166 (Friday, August 26, 2011)]
[Proposed Rules]
[Pages 53377-53378]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-21897]
=======================================================================
-----------------------------------------------------------------------
OFFICE OF MANAGEMENT AND BUDGET
Office of Federal Procurement Policy
48 CFR Part 9904
Cost Accounting Standards; Allocation of Home Office Expenses to
Segments
AGENCY: Office of Management and Budget (OMB), Office of Federal
Procurement Policy (OFPP), Cost Accounting Standards Board (Board).
ACTION: Notice of Discontinuation of Rulemaking.
-----------------------------------------------------------------------
SUMMARY: The Office of Federal Procurement Policy (OFPP), Cost
Accounting Standards (CAS) Board, is providing public notification of
the decision to discontinue the rulemaking in the review of the CAS 403
thresholds at 48 CFR 9904.403-40(c)(2) that require use of the three
factor formula described at 48 CFR 9904.403-50(c)(1) for allocating
residual home office expenses.
FOR FURTHER INFORMATION CONTACT: Raymond J.M. Wong, Director, Cost
Accounting Standards Board (telephone: 202-395-6805; e-mail: Raymond_wong@omb.eop.gov).
SUPPLEMENTARY INFORMATION:
A. Regulatory Process
Rules, Regulations and Standards issued by the Cost Accounting
Standards (Board) are codified at 48 CFR chapter 99. The Office of
Federal Procurement Policy Act, at 41 U.S.C. 1502(c) [formerly, 41
U.S.C. 422(g)], requires the Board, prior to the establishment of any
new or revised Cost Accounting Standard, to complete a prescribed
rulemaking process. The process generally consists of four steps.
The CAS Board has completed step one of the statutory rulemaking
process, which required the Board to consult with interested persons
concerning the advantages, disadvantages, and improvements anticipated
in the pricing and administration of Government contracts as a result
of the adoption of a proposed Standard. This notice announces the
discontinuation of the rulemaking after completing step one of the
four-step process in accordance with the requirements at 41 U.S.C.
1502(c).
B. Background and Summary
The CAS Board opened a review of the CAS 403 operating revenue
thresholds at the urging of interested parties, an industry group and a
Federal agency. They recommended revisions to the CAS operating revenue
thresholds for determining whether a contractor is
[[Page 53378]]
required to use the three factor formula to allocate residual home
office expenses to the segments. To update the thresholds to reflect
the changed economic and business environment since they were initially
established, the parties took different approaches to revising the
thresholds. One party advocated that the operating revenue thresholds
be raised by 400 percent to reflect the changes in the consumer price
index (CPI) from 1973 to 2003. The other party urged the Board to
conduct a Staff Study, similar to that performed by the Board to
establish the current thresholds. On February 13, 2008, the CAS Board
published a Staff Discussion Paper (SDP) on the Allocation of Home
Office Expenses to Segments as the first step in its review to
determine whether the current CAS 403 thresholds should be revised (73
FR 8260).
C. Public Comments
Three respondents submitted comments in response to the SDP. Two
respondents supported a comprehensive study to determine the
appropriate operating revenue thresholds at 48 CFR 9904.403-40(c)(2)
for the application of the three factor formula described at 48 CFR
9904.403-50(c)(1), while another respondent supported adjusting the
current thresholds by the change in the CPI. The arguments for the
comprehensive study included the development of objective data to
understand the impact of adjusting the operating revenue thresholds
upon contractors subject to the three factor formula, and the
possibility to measure the relationship of residual expenses to
operating revenue for a representative contractor population. An
impediment to conducting the comprehensive study is the time and effort
required to compile and evaluate the data. In support of adjusting the
current operating revenue thresholds by the change in the CPI, a
respondent argued that the CPI is readily available and an independent,
objective measure, while the Staff Study will require significant time
and effort to accomplish without any certainty that the results would
materially differ or be demonstrably superior to a CPI indexing
approach. The other respondents noted that increasing the current
thresholds by the change in the CPI was arbitrary and would risk
exposing the acquisition community to the same underlying conditions
which caused the CAS Board to promulgate CAS 403 originally.
Response: The CAS Board noted the arguments provided by the
respondents.
D. Conclusion
After reviewing the comments and regulatory history of CAS 403, the
CAS Board believes that it would be prudent to discontinue the review
of the CAS 403 three factor formula operating revenue thresholds at
this time. No evidence has been presented to the Board that the current
thresholds are creating an inequity, or that adjusting the thresholds
would substantially change the outcome, i.e., the pool of contractors
required to use the three factor formula to allocate residual home
office expenses to the segments would not change significantly. The
Board will revisit the issue in the future if circumstances warrant
doing so.
Daniel I. Gordon,
Chair, Cost Accounting Standards Board.
[FR Doc. 2011-21897 Filed 8-25-11; 8:45 am]
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