[Federal Register Volume 61, Number 120 (Thursday, June 20, 1996)]
[Rules and Regulations]
[Pages 31621-31622]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-14522]
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DEPARTMENT OF DEFENSE
48 CFR Parts 16, 42, and 52
[FAC 90-39; FAR Case 94-011; Item VII]
RIN 9000-AG92
Federal Acquisition Regulation; Predetermined Indirect Cost Rates
AGENCIES: Department of Defense (DOD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Final rule.
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SUMMARY: The Civilian Agency Acquisition Council and the Defense
Acquisition Regulations Council have agreed on a final rule to amend
the Federal Acquisition Regulation (FAR) to implement revisions to OMB
Circular A-21 that permit predetermined indirect cost rates for
educational institutions to be established for periods of up to four
years. This regulatory action was not subject to Office of Management
and Budget review under Executive Order 12866, dated September 30,
1993, and is not a major rule under 5 U.S.C. 804.
EFFECTIVE DATE: August 19, 1996.
FOR FURTHER INFORMATION CONTACT: Mr. Ralph De Stefano at (202) 501-1758
in reference to this FAR case. For general information, contact the FAR
Secretariat, Room 4037, GS Building, Washington, DC 20405 (202) 501-
4755. Please cite FAC 90-39, FAR case 94-011.
SUPPLEMENTARY INFORMATION:
A. Background
On July 26, 1993, the Office of Management and Budget published
revisions to OMB Circular A-21 (58 FR 39996) which include an increase
in the period of time for which predetermined indirect cost rates for
educational institutions may be applicable. The FAR is amended to
permit use of predetermined indirect cost rates for educational
institutions for periods of up to four years, in accordance with OMB
circular A-21.
B. Regulatory Flexibility Act
This final rule does not constitute a significant FAR revision
within the meaning of FAR 1.501 and Public Law 98-577, and publication
for public comment is not required. Therefore, the Regulatory
Flexibility Act does not apply. However, comments from small entities
concerning the affected FAR subparts will be considered in accordance
with 5 U.S.C. 610. Such comments must be submitted separately and cite
5 U.S.C. 601, et seq. (FAC 90-39, FAR case 94-011), in correspondence.
C. Paperwork Reduction Act
The final rule does not impose any additional information
collection requirements which require the approval of the Office of
Management and Budget under 44 U.S.C. 3501, et seq. However, a request
for approval of an extension of the existing information collection
requirement concerning 9000-0069, Indirect Cost Rates, is being
submitted to the Office of Management and Budget under 44 U.S.C. 3501,
et seq.
List of Subjects in 48 CFR Parts 16, 42, and 52
Government procurement.
[[Page 31622]]
Dated: June 4, 1996.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.
Therefore, 48 CFR Parts 16, 42, and 52 are amended as set forth
below:
1. The authority citation for 48 CFR Parts 16, 42, and 52 continues
to read as follows:
Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42
U.S.C. 2473(c).
PART 16--TYPES OF CONTRACTS
2. Section 16.307 is amended by adding a sentence to the end of
paragraph (i) to read as follows:
16.307 Contract clauses.
* * * * *
(i) * * * If the contract is a facilities contract, modify
paragraph (c) by deleting the words ``Subpart 31.1'' and substituting
for them ``section 31.106.''
PART 42--CONTRACT ADMINISTRATION
3. Section 42.705-3 is amended by revising paragraphs (b)(4)(i) and
(b)(6) to read as follows:
42.705-3 Educational institutions.
* * * * *
(b) * * *
(4)(i) If predetermined rates are to be used and no rates have been
previously established for the institution's current fiscal year, the
agency shall obtain from the institution a proposal for predetermined
rates.
* * * * *
(6) Predetermined indirect cost rates shall be applicable for a
period of not more than four years. The agency shall obtain the
contractor's proposal for new predetermined rates sufficiently in
advance so that the new rates, based on current data, may be promptly
negotiated near the beginning of the new fiscal year or other period
agreed to by the parties (see paragraphs (b) and (d) of the clause at
52.216-15, Predetermined Indirect Cost Rates).
* * * * *
PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
4. Section 52.216-15 is amended by revising the introductory text
and date of the clause; in the first sentence of paragraph (b) by
removing the comma after the word ``year'' and adding ``(or other
period specified in the Schedule),''; in the second sentence by
revising the word ``rate'' to read ``rates'' and removing the period at
the end of the sentence and inserting in its place ``or other period
specified in the Schedule.''; in the third sentence by revising the
word ``Negotiations'' to read ``Negotiation''; revising paragraph
(d)(3); and in paragraph (g) by inserting after the word ``year'' the
parenthetical ``(or other period specified in the Schedule)''. The
revised text read as follows:
52.216-15 Predetermined Indirect Cost Rates.
As prescribed in 16.307(i), insert the following clause:
PREDETERMINED INDIRECT COST RATES (AUG 1996)
* * * * *
(d) * * *
(3) the period for which the rates apply, and
* * * * *
[FR Doc. 96-14522 Filed 6-19-96; 8:45 am]
BILLING CODE 6820-EP-P
