[Federal Register Volume 61, Number 120 (Thursday, June 20, 1996)]
[Rules and Regulations]
[Pages 31656-31657]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-14535]
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DEPARTMENT OF DEFENSE
48 CFR Part 31
[FAC 90-39; FAR Case 93-006; Item XX]
RIN 9000-AF98
Federal Acquisition Regulation; Legislative Lobbying Costs
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) cost principles concerning
lobbying costs. 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. Jeremy F. Olson at (202) 501-3221
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 93-006.
SUPPLEMENTARY INFORMATION:
A. Background
This FAR case was opened to address issues raised by the Office of
Management and Budget SWAT team concerning the requirement to maintain
records which are in addition to normal records maintained to record
lobbying costs under FAR 31.205-22(f). The FAR rule deletes 31.205-
22(f) because it conflicts with the recordkeeping requirements in
31.201-6(c), 31.205-22(e), and Cost Accounting Standards (CAS) 405,
Accounting for Unallowable Costs (48 CFR 9904.405-50(a)). In addition,
the Councils believe that 31.205-22(f) is inconsistent with the clause
at 52.203-12, Limitation on Payments to Influence Certain Federal
Transactions, which requires contractors to disclose lobbying
activities. The reporting of such activities must necessarily be based
upon certain contractor records which support the disclosures. The rule
also removes the prohibition against reimbursing executive lobbying
costs at 31.205-50 and adds it to the list of specifically unallowable
lobbying costs at 31.205-22(a). A proposed rule was published in the
Federal Register at 59 FR 47776 on September 16, 1994. After evaluation
of public comments, the Councils agreed to convert the proposed rule to
a final rule without further change.
B. 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 revisions clarify a
condition of allowability for contractors who wish to be reimbursed
under Government contracts. The revisions eliminate a subsection which
may be misinterpreted in its application and more accurately describe
the subject matter of the cost principle. Further, most contracts
awarded to small entities are awarded on a competitive, fixed-price
basis and the cost principles do not apply. No comments were received
on the impact of this rule on small entities during the public comment
period.
C. Paperwork Reduction Act
The Paperwork Reduction Act does not apply because the changes to
the FAR do not impose recordkeeping or information collection
requirements, or collections of information from offerors,
[[Page 31657]]
contractors, or members of the public which require the approval of the
Office of Management and Budget under 44 U.S.C. 3501, et seq.
List of Subjects in 48 CFR Part 31
Government procurement.
Dated: June 4, 1996.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.
Therefore, 48 CFR Part 31 is amended as set forth below:
PART 31--CONTRACT COST PRINCIPLES AND PROCEDURES
1. The authority citation for 48 CFR Part 31 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).
2. Section 31.205-22 is amended by revising the section heading; at
the end of paragraph (a)(4) by removing the word ``or''; at the end of
paragraph (a)(5) by removing the period and inserting ``;or''; by
adding paragraph (a)(6); and by removing paragraph (f) and
redesignating paragraph (g) as (f) to read as follows:
31.205-22 Lobbying and political activity costs.
(a) * * *
(6) Costs incurred in attempting to improperly influence (see
3.401), either directly or indirectly, an employee or officer of the
Executive branch of the Federal Government to give consideration to or
act regarding a regulatory or contract matter.
* * * * *
31.205-50 [Reserved]
3. Section 31.205-50 is removed and reserved.
[FR Doc. 96-14535 Filed 6-19-96; 8:45 am]
BILLING CODE 6820-EP-P
