Management and Budget Office 2011 – Federal Register Recent Federal Regulation Documents
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Cost Accounting Standards: Cost Accounting Standards 412 and 413-Cost Accounting Standards Pension Harmonization Rule
The Office of Federal Procurement Policy (OFPP), Cost Accounting Standards Board (Board), is publishing this final rule to revise Cost Accounting Standard (CAS) 412, ``Composition and Measurement of Pension Cost,'' and CAS 413, ``Adjustment and Allocation of Pension Cost.'' This revision will harmonize the measurement and period assignment of the pension cost allocable to Government contracts, and the minimum required contribution under the Employee Retirement Income Security Act of 1974 (ERISA), as amended, as required by the Pension Protection Act (PPA) of 2006. The PPA amended the minimum funding requirements for qualified defined benefit pension plans. The Board issues this final rule to revise CAS 412 and CAS 413 to include the recognition of a ``minimum actuarial liability'' and ``minimum normal cost,'' which are measured on a basis consistent with the liability measurement used to determine the PPA minimum required contribution, and accelerate the recognition of actuarial gains and losses. These and other revisions will better align both the measurement and period assignment of pension cost allocable to a contractor's Government contracts and other final cost objectives in accordance with CAS, and the measurement and period assignment requirements for determining the contractor's minimum pension contribution under the PPA.
Cost Accounting Standards: Change to the CAS Applicability Threshold for the Inflation Adjustment to the Truth in Negotiations Act Threshold
The Office of Federal Procurement Policy (OFPP), Cost Accounting Standards (CAS) Board (Board), has adopted, without change from the interim rule, a final rule revising the threshold for the application of CAS from ``$650,000'' to ``the Truth in Negotiations Act (TINA) threshold, as adjusted for inflation.'' The change is being made because the CAS applicability threshold is statutorily tied to TINA threshold. The TINA threshold for obtaining cost or pricing data was recently adjusted for inflation to $700,000 in the Federal Acquisition Regulation (FAR), as required by the Ronald W. Reagan National Defense Authorization Act for Fiscal Year 2005. Until the interim change for this final rule, the CAS applicability threshold was a stated dollar amount ($650,000) in the Code of Federal Regulations. This wording change effectively revised the CAS threshold to $700,000 and will cause future changes to the CAS applicability threshold to self-execute upon any changes to the TINA threshold as they are implemented in the FAR.
Final Guidance on Appointment of Lobbyists to Federal Boards and Commissions
The Office of Management and Budget (OMB) is issuing final guidance to Executive Departments and agencies concerning the appointment of federally registered lobbyists to boards and commissions. On June 18, 2010, President Obama issued ``Lobbyists on Agency Boards and Commissions,'' a memorandum directing agencies and departments in the Executive Branch not to appoint or re-appoint federally registered lobbyists to advisory committees and other boards and commissions. The Presidential Memorandum further directed the Director of OMB to ``issue proposed guidance to implement this policy to the full extent permitted by law.'' Proposed guidance was posted on November 2, 2010 and the final guidance was formulated after review of the comments received to the proposed guidance. The Presidential Memorandum is available at https://www.whitehouse.gov/the-press-office/ presidential-memorandum-lobbyists-agency-boards-and-commissio ns.
Agency Information Collection Activities: Proposed Collection; Comment Request; the Partnership Fund for Program Integrity Innovation Pilot Idea Template
The Office of Federal Financial Management (OFFM) within the Office of Management and Budget is proposing for approval under the Paperwork Reduction Act (PRA) (44 U.S.C. 3501 et. Seq.) the attached template for pilot idea summaries submitted to the Partnership Fund for Program Integrity Innovation (Partnership Fund). This notice announces that OFFM intends to submit this collection to OMB for approval and solicits comments on specific aspects for the proposed collection. The first notice of this information collection request, as required by the Paperwork Reduction Act, was published in the Federal Register on June 6, 2011 [76 FR 32375]. There were no comments on the first notice. The Partnership Fund seeks to identify pilot projects to improve the service delivery, payment accuracy, and administrative efficiency of state-administered Federal assistance programs, while also reducing access barriers for eligible beneficiaries. The proposed pilot idea summary template is intended for use by those wishing to submit pilot ideas for consideration. It outlines the specific information required by the Partnership Fund to make informed decisions in the pilot selection process. Pilot ideas to advance the Partnership Fund's goals are being solicited from all stakeholders, including the general public. The template is currently in use by Federal agencies based on OMB guidance. If approved under the Paperwork Reduction Act, it will be used to solicit ideas from stakeholders outside the Federal government both as a general template and as an online form for idea solicitations through the Partnership Fund web site, https://www.partner4solutions.gov. Currently, general ideas may be submitted via e-mail to partner4solutions@omb.eop.gov, or through https://www.partner4solutions.gov. The Partnership Fund is funded through FY 2012 and will continue to accept pilot idea proposals on a rolling basis until funding is exhausted. The Partnership Fund must comply with a statutory requirement that all pilot projects, when taken together, be cost neutral.
Cost Accounting Standards: Clarification of the Exemption From Cost Accounting Standards for Firm-Fixed-Price Contracts and Subcontracts Awarded Without Submission of Certified Cost or Pricing Data
The Office of Federal Procurement Policy (OFPP), Cost Accounting Standards (CAS) Board, invites public comments concerning this proposed to clarify the application of the exemption from CAS at 48 CFR 9903.201-1(b)(15) for firm-fixed-price (FFP) contracts and subcontracts awarded on the basis of adequate price competition without submission of cost or pricing data (hereafter referred to as the ``(b)(15) FFP exemption''). The proposed rule will revise the (b)(15) FFP exemption to clarify that the exemption applies to firm-fixed-price contracts and subcontracts awarded on the basis of adequate price competition without submission of certified cost or pricing data.
Federal Regulations; OMB Circulars, OFPP Policy Letters, and CASB Cost Accounting Standards Included in the Semiannual Agenda of Federal Activities
The Office of Management and Budget (OMB) is publishing its semiannual agenda of upcoming activities for Federal regulations, OMB Circulars, Office of Federal Procurement Policy (OFPP) Policy Letters, and Cost Accounting Standards Board (CASB) Cost Accounting Standards. OMB Circulars and OFPP Policy Letters are published in accordance with OMB's internal procedures for implementing Executive Order No. 12866 (October 4, 1993, 58 FR 51735). OMB policy guidelines are issued under authority derived from several sources including: Subtitles I, II, and V of Title 31, United States Code; Executive Order No. 11541; and other specific authority as cited. OMB Circulars and OFPP Policy Letters communicate guidance and instructions of a continuing nature to executive branch agencies. As such, most OMB Circulars and OFPP Policy Letters are not regulations. Nonetheless, because these issuances are typically of public interest, they are generally published in the Federal Register in both proposed (for public comment) and final stages. For this reason, they are presented below in the standard format of ``prerule,'' ``proposed rule,'' and ``final rule'' stages. CASB Cost Accounting Standards are issued under authority derived from 41 U.S.C. 1501. Cost Accounting Standards are rules governing the measurement, assignment, and allocation of costs to contracts with the United States Government. For purposes of this agenda, we have excluded directives that outline procedures to be followed in connection with the President's budget and legislative programs and directives that affect only the internal functions, management, or personnel of Federal agencies.
Publication of the Office of Federal Procurement Policy (OFPP) Policy Letter 11-01, Performance of Inherently Governmental and Critical Functions
The Office of Federal Procurement Policy (OFPP) in the Office of Management and Budget (OMB) is issuing a policy letter to provide to Executive Departments and agencies guidance on managing the performance of inherently governmental and critical functions. The guidance addresses direction to OMB in the Presidential Memorandum on Government Contracting, issued on March 4, 2009, to clarify when governmental outsourcing of services is, and is not, appropriate, consistent with section 321 of the Duncan Hunter National Defense Authorization Act (NDAA) for Fiscal Year 2009 (Pub. L. 110-417). Section 321 requires OMB to: (i) Create a single definition for the term ``inherently governmental function'' that addresses any deficiencies in the existing definitions and reasonably applies to all agencies; (ii) establish criteria to be used by agencies to identify ``critical'' functions and positions that should only be performed by Federal employees; and (iii) provide guidance to improve internal agency management of functions that are inherently governmental or critical. The Presidential Memorandum is available at https://www.whitehouse.gov/thepress office/Memorandum-for-the-Heads-of-Executive-Departments-and- Agencies- Subject-Government/. Section 321 may be found at https://www.dod.gov/ dodgc/olc/docs/2009NDAA_PL110-417.pdf.
Cost Accounting Standards: Accounting for Insurance Costs
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).
Cost Accounting Standards; Allocation of Home Office Expenses to Segments
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.
North American Industry Classification System; Revision for 2012
The North American Industry Classification System (NAICS) is a system for classifying establishments (individual business locations) by type of economic activity. Mexico's Instituto Nacional de Estad[iacute]stica y Geograf[iacute]a (INEGI), Statistics Canada, and the United States Office of Management and Budget (OMB), through its Economic Classification Policy Committee (ECPC), collaborate on NAICS to make the industry statistics produced by the three countries comparable. Under 31 U.S.C. 1104(d) and 44 U.S.C. 3504(e), the Office of Management and Budget is announcing its final decisions for adoption of NAICS revisions for 2012 as recommended by the Economic Classification Policy Committee in OMB's notice for solicitation of comments published in Part IV of the May 12, 2010, Federal Register (75 FR 26856-26869). In the May 12, 2010, notice, OMB's ECPC recommended classification guidance for distribution centers, logistics service providers, sales offices of publishers, and units that outsource physical transformation activities. The ECPC also provided a list of recommended changes to the utilities, construction, manufacturing, wholesale trade, retail trade, and food services and accommodations sectors of NAICS United States for 2012. In response to public comments received on the recommendations, the ECPC withdrew the proposal to split the semiconductor industry into two new industries and OMB is modifying two additional ECPC recommendations to better align with the public comments. More details on these decisions are presented in the SUPPLEMENTARY INFORMATION section below.
Cost Accounting Standards: Elimination of the Exemption From Cost Accounting Standards for Contracts and Subcontracts Executed and Performed Entirely Outside the United States, Its Territories, and Possessions
The Office of Federal Procurement Policy (OFPP), Cost Accounting Standards (CAS) Board, is publishing a final rule to eliminate the exemption from regulations regarding Cost Accounting Standards for contracts executed and performed entirely outside the United States, its territories, and possessions.
United States Government Inter-Agency Anti-Counterfeiting Working Group: Request for Public Comments Regarding Strategy to Eliminate Counterfeit Products from the United States Government Supply Chain
The Federal Government is currently undertaking a significant effort to eliminate counterfeit products from the U.S. Government supply chain. In June 2010, Vice President Biden and White House Intellectual Property Enforcement Coordinator, Victoria Espinel, announced the Joint Strategic Plan on Intellectual Property Enforcement, laying out a coordinated government-wide approach to strengthening intellectual property enforcement and directing the establishment of an inter-agency working group. Recent reports issued by the Department of Commerce and the Government Accountability Office have found that counterfeits have infiltrated many sectors of the U.S. Government supply chain and have the potential to cause serious disruptions in national defense, critical infrastructure and other vital applications. This working group will develop a framework for reducing vulnerability to counterfeits that is flexible enough to accommodate the wide variety of missions across Federal agencies. This cross-functional working group will identify any gaps in legal authority, regulation, policy and guidance that undermine the security of U.S. Government supply chain from counterfeit parts. The working group's examination will include reviewing current industry standards, the ability of prime contractors and their suppliers to authenticate or trace at-risk items to the original manufacturer, government evaluation and detection capabilities and limitations, and contractual enforcement of authenticity.
Audits of States, Local Governments, and Non-Profit Organizations; OMB Circular A-133 Compliance Supplement
This notice announces the availability of the 2011 OMB Circular A-133 Compliance Supplement (Supplement). The notice also offers interested parties an opportunity to comment on the 2011 Supplement. The 2011 Supplement adds nineteen new programs, including five programs added to existing clusters. It deletes two programs and has also been updated for program changes and technical corrections. The two deleted programs are Catalog of Federal Domestic Assistance (CFDA) 84.037, Reading First State Grants, and CFDA 84.938, Hurricane Education Recovery, which are no longer active (i.e., no funds are being spent by recipients), and have been archived in the CFDA. In total, the 2011 Supplement includes 248 individual programs. A list of changes to the 2011 Supplement can be found at Appendix V. It updates Appendix VII that provides an audit alert and compliance requirements regarding the grant programs funded under American Recovery and Reinvestment Act of 2009. Due to its length, the 2011 Supplement is not included in this Notice. See ADDRESSES for information about how to obtain a copy either on line or through the Government Printing Office.
Agency Information Collection Activities: Proposed Collection; Comment Request; The Partnership Fund for Program Integrity Innovation Pilot Idea Template
The Office of Federal Financial Management (OFFM) within OMB is proposing for approval under the Paperwork Reduction Act (PRA) (44 U.S.C. 3501 et seq.) the following template for pilot idea summaries submitted to the Partnership Fund for Program Integrity Innovation (Partnership Fund). This notice announces that OFFM intends to submit this collection to OMB for approval and solicits comments on specific aspects for the proposed collection. The Partnership Fund seeks to identify pilot projects to improve the service delivery, payment accuracy, and administrative efficiency of state-administered Federal assistance programs, while also reducing access barriers for eligible beneficiaries. The proposed pilot idea summary template is intended for use by those wishing to submit pilot ideas for consideration. It outlines the specific information required by the Partnership Fund to make informed decisions in the pilot selection process. Pilot ideas to advance the Partnership Fund's goals are being solicited from all stakeholders, including the general public. The template is currently in use by Federal agencies based on OMB guidance. If approved under the Paperwork Reduction Act, it will be used to solicit ideas from stakeholders outside the Federal government both as a general template and as an online form for idea solicitations through the Partnership Fund Web site, https://www.partner4solutions.gov. Currently, general ideas may be submitted via e-mail to partner4solutions@omb.eop.gov, or through https://www.partner4solutions.gov. The Partnership Fund is funded through FY 2012 and will continue to accept pilot idea proposals on a rolling basis until funding is exhausted. The Partnership Fund must comply with a statutory requirement that all pilot projects, when taken together, be cost neutral.
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