Federal Acquisition Regulation: Audit of Settlement Proposals, 63158-63159 [2016-22070]

Download as PDF 63158 Federal Register / Vol. 81, No. 178 / Wednesday, September 14, 2016 / Proposed Rules second-round allocations to new units (or ultimately for allocation to existing units). Objections should be strictly limited to whether EPA has correctly identified the new units eligible for second-round 2016 NUSA allocations of CSAPR NOX Ozone Season allowances according to the criteria described above and should be emailed to the address identified in ADDRESSES. Objections must include: (1) Precise identification of the specific data the commenter believes are inaccurate, (2) new proposed data upon which the commenter believes EPA should rely instead, and (3) the reasons why EPA should rely on the commenter’s proposed data and not the data referenced in this notice. Authority: 40 CFR 97.511(b). Dated: September 7, 2016. Reid P. Harvey, Director, Clean Air Markets Division, Office of Atmospheric Programs, Office of Air and Radiation. [FR Doc. 2016–22090 Filed 9–13–16; 8:45 am] BILLING CODE 6560–50–P ENVIRONMENTAL PROTECTION AGENCY 40 CFR Part 131 [EPA–HQ–OW–2015–0392; FRL–9952–39– OW] RIN 2040–AF61 Water Quality Standards; Establishment of Revised Numeric Criteria for Selenium for the San Francisco Bay and Delta, State of California; Extension of Public Comment Period Environmental Protection Agency (EPA). ACTION: Proposed rule; extension of comment period. AGENCY: The Environmental Protection Agency (EPA) is extending the comment period for the proposed rule, ‘‘Water Quality Standards; Establishment of Revised Numeric Criteria for Selenium for the San Francisco Bay and Delta, State of California.’’ In response to stakeholder requests, EPA is extending the comment period for an additional 45 days, from September 13, 2016, to October 28, 2016. DATES: The comment period for the proposed rule that published on July 15, 2016 (81 FR 46030) has been extended. Comments must be received on or before October 28, 2016. ADDRESSES: Submit your comments, identified by Docket ID No. EPA–HQ– asabaliauskas on DSK3SPTVN1PROD with PROPOSALS SUMMARY: VerDate Sep<11>2014 20:52 Sep 13, 2016 Jkt 238001 OW–2015–0392, to the Federal eRulemaking Portal: http:// www.regulations.gov. Follow the online instructions for submitting comments. Once submitted, comments cannot be edited or removed from Regulations.gov. EPA may publish any comment received to its public docket. Do not submit electronically any information you consider to be Confidential Business Information (CBI) or other information whose disclosure is restricted by statute. Multimedia submissions (audio, video, etc.) must be accompanied by a written comment. The written comment is considered the official comment and should include discussion of all points you wish to make. EPA will generally not consider comments or comment contents located outside of the primary submission (i.e., on the web, cloud, or other file sharing system). For additional submission methods, the full EPA public comment policy, information about CBI or multimedia submissions, and general guidance on making effective comments, please visit http://www2.epa.gov/dockets/ commenting-epa-dockets. FOR FURTHER INFORMATION CONTACT: Julianne McLaughlin, Office of Water, Standards and Health Protection Division (4305T), U.S. Environmental Protection Agency, 1200 Pennsylvania Avenue NW., Washington, DC 20460; telephone number: (202) 566–2542; email address: Mclaughlin.Julianne@ epa.gov; or Diane E. Fleck, P.E., Esq., Water Division (WTR–2–1), U.S. Environmental Protection Agency Region 9, 75 Hawthorne Street, San Francisco, CA 94105; telephone number (415) 972–3527; email address: Fleck.Diane@EPA.gov. SUPPLEMENTARY INFORMATION: On July 15, 2016, EPA published the proposed rule, ‘‘Water Quality Standards; Establishment of Revised Numeric Criteria for Selenium for the San Francisco Bay and Delta, State of California’’ in the Federal Register (81 FR 46030). EPA proposes to revise the current federal Clean Water Act selenium water quality criteria applicable to the San Francisco Bay and Delta to ensure that the criteria are set at levels that protect aquatic life and aquatic-dependent wildlife, including federally listed threatened and endangered species. The original deadline to submit comments on the proposed rule was September 13, 2016. This action extends the comment period for 45 days. Written comments must now be received on or before October 28, 2016. For more information on this proposed rule, please visit https:// PO 00000 Frm 00010 Fmt 4702 Sfmt 4702 epa.gov/wqs-tech/water-qualitystandards-establishment-revisednumeric-criteria-selenium-sanfrancisco-bay. Dated: September 7, 2016. Michael H. Shapiro, Deputy Assistant Administrator, Office of Water. [FR Doc. 2016–22087 Filed 9–13–16; 8:45 am] BILLING CODE 6560–50–P DEPARTMENT OF DEFENSE GENERAL SERVICES ADMINISTRATION NATIONAL AERONAUTICS AND SPACE ADMINISTRATION 48 CFR Part 49 [FAR Case 2015–039; Docket No. 2015– 0039, Sequence No. 1] RIN 9000–AN26 Federal Acquisition Regulation: Audit of Settlement Proposals Department of Defense (DoD), General Services Administration (GSA), and the National Aeronautics and Space Administration (NASA). ACTION: Proposed rule. AGENCY: DoD, GSA, and NASA are proposing to amend the Federal Acquisition Regulation (FAR) to raise the dollar threshold requirement for the audit of prime contract settlement proposals and subcontract settlements from $100,000 to $750,000. DATES: Interested parties should submit written comments to the Regulatory Secretariat Division at one of the addresses shown below on or before November 14, 2016 to be considered in the formation of the final rule. ADDRESSES: Submit comments in response to FAR case 2015–039 by any of the following methods: • Regulations.gov: http:// www.regulations.gov. Submit comments via the Federal eRulemaking portal by searching for ‘‘FAR Case 2015–039’’. Select the link ‘‘Comment Now’’ that corresponds with ‘‘FAR Case 2015– 039.’’ Follow the instructions provided on the screen. Please include your name, company name (if any), and ‘‘FAR Case 2015–039’’ on your attached document. • Mail: General Services Administration, Regulatory Secretariat Division (MVCB), ATTN: Ms. Flowers, 1800 F Street NW., 2nd Floor, Washington, DC 20405. Instructions: Please submit comments only and cite FAR Case 2015–039, in all SUMMARY: E:\FR\FM\14SEP1.SGM 14SEP1 Federal Register / Vol. 81, No. 178 / Wednesday, September 14, 2016 / Proposed Rules 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. To confirm receipt of your comment(s), please check www.regulations.gov, approximately two to three days after submission to verify posting (except allow 30 days for posting of comments submitted by mail). FOR FURTHER INFORMATION CONTACT: Ms. Kathlyn Hopkins, Procurement Analyst, at 202–969–7226 for clarification of content. For information pertaining to status or publication schedules, contact the Regulatory Secretariat Division at 202–501–4755. Please cite FAR Case 2015–039. SUPPLEMENTARY INFORMATION: 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. I. Background Of all contracts awarded to small businesses in a typical year, the number terminated and subject to FAR part 49 procedures is less than one-fifth of one percent. Moreover, since the rule raises the audit threshold, even fewer small businesses will be subject to audits of their termination settlement proposals. DOD, GSA, and NASA are proposing to amend FAR 49.107 to increase the dollar threshold for the audit of prime contract settlement proposals and subcontract settlements, submitted in the event of contract termination. The threshold is increased from $100,000 to align with the threshold in FAR 15.403– 4(a)(1) for obtaining certified cost or pricing data, which is currently $750,000. Other than the dollar amount, there will be no link between the requirements for certified cost or pricing data and the audit threshold for termination settlement proposals. The proposed amendment will help alleviate contract close-out backlogs and enable contracting officers to more quickly deobligate excess funds from terminated contracts. Under FAR 49.001, a ‘‘settlement proposal’’ is a proposal for effecting settlement of a contract terminated in whole or in part, submitted by a contractor or subcontractor in the form, and supported by the data, required by FAR part 49. Termination clauses and other contract clauses authorize contracting officers to terminate contracts for convenience or for default, and to enter into settlement agreements. asabaliauskas on DSK3SPTVN1PROD with PROPOSALS 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 VerDate Sep<11>2014 20:52 Sep 13, 2016 Jkt 238001 III. Regulatory Flexibility Act DoD, GSA, and NASA do not expect this 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 the rule raises the threshold for audit requirements, thus reducing burdens on all types of businesses. However, an Initial Regulatory Flexibility Analysis (IRFA) has been performed and it is summarized as follows: The Regulatory Secretariat Division has submitted a copy of the IRFA to the Chief Counsel for Advocacy of the Small Business Administration. A copy of the IRFA may be obtained from the Regulatory Secretariat Division. DoD, GSA, and NASA invite comments from small business concerns and other interested parties on the expected impact of this proposed rule on small entities. DoD, GSA, and NASA will also consider comments from small entities concerning the existing regulations in subparts affected by the proposed rule consistent with 5 U.S.C. 610. Interested parties must submit such comments separately and should cite 5 U.S.C. 610 (FAR Case 2015–039), in correspondence. IV. Paperwork Reduction Act The 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 49 Government procurement. Dated: September 9, 2016. William F. Clark, Director, Office of Government-wide Acquisition Policy, Office of Acquisition Policy, Office of Government-wide Policy. Therefore, DoD, GSA, and NASA are proposing to amend 48 CFR part 49 as set forth below: PO 00000 Frm 00011 Fmt 4702 Sfmt 9990 63159 PART 49—TERMINATION OF CONTRACTS 1. The authority citation for 48 CFR part 49 continues to read as follows: ■ Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 51 U.S.C. 20113. 2. Amend section 16.505 by revising paragraphs (a) and (b) to read as follows: ■ 49.107 Audit of prime contract settlement proposals and subcontract settlements. (a) The TCO shall refer each prime contractor settlement proposal valued at or above the threshold for obtaining certified cost or pricing data set forth in FAR 15.403–4(a)(1) to the appropriate audit agency for review and recommendations. The TCO may submit settlement proposals of less than the threshold for obtaining certified cost or pricing data to the audit agency. Referrals shall indicate any specific information or data that the TCO considers relevant and shall include facts and circumstances that will assist the audit agency in performing its function. The audit agency shall develop requested information and may make any further accounting reviews it considers appropriate. After its review, the audit agency shall submit written comments and recommendations to the TCO. When a formal examination of settlement proposals valued under the threshold for obtaining certified cost or pricing data is not warranted, the TCO will perform or have performed a desk review and include a written summary of the review in the termination case file. (b) The TCO shall refer subcontract settlements received for approval or ratification to the appropriate audit agency for review and recommendations when: (1) The amount exceeds the threshold for obtaining certified cost or pricing data; or (2) The TCO determines that a complete or partial accounting review is advisable. The audit agency shall submit written comments and recommendations to the TCO. The review by the audit agency does not relieve the prime contractor or higher tier subcontractor of the responsibility for performing an accounting review. * * * * * [FR Doc. 2016–22070 Filed 9–13–16; 8:45 am] BILLING CODE 6820–EP–P E:\FR\FM\14SEP1.SGM 14SEP1

Agencies

[Federal Register Volume 81, Number 178 (Wednesday, September 14, 2016)]
[Proposed Rules]
[Pages 63158-63159]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-22070]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Part 49

[FAR Case 2015-039; Docket No. 2015-0039, Sequence No. 1]
RIN 9000-AN26


Federal Acquisition Regulation: Audit of Settlement Proposals

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

ACTION: Proposed rule.

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

SUMMARY: DoD, GSA, and NASA are proposing to amend the Federal 
Acquisition Regulation (FAR) to raise the dollar threshold requirement 
for the audit of prime contract settlement proposals and subcontract 
settlements from $100,000 to $750,000.

DATES: Interested parties should submit written comments to the 
Regulatory Secretariat Division at one of the addresses shown below on 
or before November 14, 2016 to be considered in the formation of the 
final rule.

ADDRESSES: Submit comments in response to FAR case 2015-039 by any of 
the following methods:
     Regulations.gov: http://www.regulations.gov. Submit 
comments via the Federal eRulemaking portal by searching for ``FAR Case 
2015-039''. Select the link ``Comment Now'' that corresponds with ``FAR 
Case 2015-039.'' Follow the instructions provided on the screen. Please 
include your name, company name (if any), and ``FAR Case 2015-039'' on 
your attached document.
     Mail: General Services Administration, Regulatory 
Secretariat Division (MVCB), ATTN: Ms. Flowers, 1800 F Street NW., 2nd 
Floor, Washington, DC 20405.

Instructions: Please submit comments only and cite FAR Case 2015-039, 
in all

[[Page 63159]]

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. To confirm 
receipt of your comment(s), please check www.regulations.gov, 
approximately two to three days after submission to verify posting 
(except allow 30 days for posting of comments submitted by mail).

FOR FURTHER INFORMATION CONTACT: Ms. Kathlyn Hopkins, Procurement 
Analyst, at 202-969-7226 for clarification of content. For information 
pertaining to status or publication schedules, contact the Regulatory 
Secretariat Division at 202-501-4755. Please cite FAR Case 2015-039.

SUPPLEMENTARY INFORMATION: 

I. Background

    DOD, GSA, and NASA are proposing to amend FAR 49.107 to increase 
the dollar threshold for the audit of prime contract settlement 
proposals and subcontract settlements, submitted in the event of 
contract termination. The threshold is increased from $100,000 to align 
with the threshold in FAR 15.403-4(a)(1) for obtaining certified cost 
or pricing data, which is currently $750,000. Other than the dollar 
amount, there will be no link between the requirements for certified 
cost or pricing data and the audit threshold for termination settlement 
proposals.
    The proposed amendment will help alleviate contract close-out 
backlogs and enable contracting officers to more quickly deobligate 
excess funds from terminated contracts.
    Under FAR 49.001, a ``settlement proposal'' is a proposal for 
effecting settlement of a contract terminated in whole or in part, 
submitted by a contractor or subcontractor in the form, and supported 
by the data, required by FAR part 49. Termination clauses and other 
contract clauses authorize contracting officers to terminate contracts 
for convenience or for default, and to enter into settlement 
agreements.

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

    DoD, GSA, and NASA do not expect this 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 
the rule raises the threshold for audit requirements, thus reducing 
burdens on all types of businesses. However, an Initial Regulatory 
Flexibility Analysis (IRFA) has been performed and it is summarized as 
follows:

    Of all contracts awarded to small businesses in a typical year, 
the number terminated and subject to FAR part 49 procedures is less 
than one-fifth of one percent. Moreover, since the rule raises the 
audit threshold, even fewer small businesses will be subject to 
audits of their termination settlement proposals.

    The Regulatory Secretariat Division has submitted a copy of the 
IRFA to the Chief Counsel for Advocacy of the Small Business 
Administration. A copy of the IRFA may be obtained from the Regulatory 
Secretariat Division. DoD, GSA, and NASA invite comments from small 
business concerns and other interested parties on the expected impact 
of this proposed rule on small entities.
    DoD, GSA, and NASA will also consider comments from small entities 
concerning the existing regulations in subparts affected by the 
proposed rule consistent with 5 U.S.C. 610. Interested parties must 
submit such comments separately and should cite 5 U.S.C. 610 (FAR Case 
2015-039), in correspondence.

IV. Paperwork Reduction Act

    The 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 49

    Government procurement.

    Dated: September 9, 2016.
William F. Clark,
Director, Office of Government-wide Acquisition Policy, Office of 
Acquisition Policy, Office of Government-wide Policy.

    Therefore, DoD, GSA, and NASA are proposing to amend 48 CFR part 49 
as set forth below:

PART 49--TERMINATION OF CONTRACTS

0
1. The authority citation for 48 CFR part 49 continues to read as 
follows:


    Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 51 
U.S.C. 20113.

0
2. Amend section 16.505 by revising paragraphs (a) and (b) to read as 
follows:


49.107  Audit of prime contract settlement proposals and subcontract 
settlements.

    (a) The TCO shall refer each prime contractor settlement proposal 
valued at or above the threshold for obtaining certified cost or 
pricing data set forth in FAR 15.403-4(a)(1) to the appropriate audit 
agency for review and recommendations. The TCO may submit settlement 
proposals of less than the threshold for obtaining certified cost or 
pricing data to the audit agency. Referrals shall indicate any specific 
information or data that the TCO considers relevant and shall include 
facts and circumstances that will assist the audit agency in performing 
its function. The audit agency shall develop requested information and 
may make any further accounting reviews it considers appropriate. After 
its review, the audit agency shall submit written comments and 
recommendations to the TCO. When a formal examination of settlement 
proposals valued under the threshold for obtaining certified cost or 
pricing data is not warranted, the TCO will perform or have performed a 
desk review and include a written summary of the review in the 
termination case file.
    (b) The TCO shall refer subcontract settlements received for 
approval or ratification to the appropriate audit agency for review and 
recommendations when:
    (1) The amount exceeds the threshold for obtaining certified cost 
or pricing data; or
    (2) The TCO determines that a complete or partial accounting review 
is advisable. The audit agency shall submit written comments and 
recommendations to the TCO. The review by the audit agency does not 
relieve the prime contractor or higher tier subcontractor of the 
responsibility for performing an accounting review.
* * * * *
[FR Doc. 2016-22070 Filed 9-13-16; 8:45 am]
BILLING CODE 6820-EP-P