[Federal Register Volume 61, Number 246 (Friday, December 20, 1996)]
[Rules and Regulations]
[Pages 67425-67426]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-32012]
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DEPARTMENT OF DEFENSE
48 CFR Parts 46 and 52
[FAC 90-43; FAR Case 92-035; Item XII]
RIN 9000-AG76
Federal Acquisition Regulation; Clause Flowdown
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 to a final rule to amend
the Federal Acquisition Regulation (FAR) to reduce the number of
contract clauses requiring flowdown to subcontractors. 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: February 18, 1997.
FOR FURTHER INFORMATION CONTACT: Mr. Jeremy Olson at (202) 501-3221 in
reference to this FAR case. For general information, contact the FAR
Secretariat, Room 4035, GS Building, Washington, DC 20405 (202) 501-
4755. Please cite FAC 90-43, FAR case 92-035.
SUPPLEMENTARY INFORMATION:
A. Background
The Councils conducted an extensive review of all FAR clauses
requiring flowdown to subcontractors in an effort to eliminate any
unnecessary flowdown requirements. This final rule eliminates the
requirement for flowdown of the clauses at FAR 52.215-26, 52.216-5,
52.216-6, 52.216-16, 52.216-17, 52.222-1, 52.236-21, 52.244-2, 52.246-
23, 52.246-24, and 52.246-25.
A proposed rule was published in the Federal Register on December
27, 1995, at 60 FR 67024. Three sources submitted public comments. All
comments were considered in developing the final rule.
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 elimination of the
mandatory flowdown requirements from the amended FAR clauses does not
eliminate the ability of prime contractors and subcontractors to agree
to similar clauses in appropriate circumstances.
C. Paperwork Reduction Act
The Paperwork Reduction Act does not apply because the changes to
the FAR do not impose any new recordkeeping or information collection
requirements, or collections of information from offerors, 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 Parts 46 and 52
Government procurement.
Dated: December 11, 1996.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.
Therefore, 48 CFR Parts 46 and 52 are amended as set forth below:
1. The authority citation for 48 CFR Parts 46 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 46--QUALITY ASSURANCE
46.806 [Removed]
2. Section 46.806 is removed.
PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
52.215-26 [Amended]
3. Section 52.215-26 is amended by revising the clause date to read
``(FEB 1997)'', and by removing paragraph (d).
4. Section 52.216-5 is amended by revising the introductory
paragraph, the clause date, and paragraph (i) to read as follows:
52.216-5 Price Redetermination--Prospective.
As prescribed in 16.205-4, insert the following clause:
PRICE REDETERMINATION--PROSPECTIVE (FEB 1997)
* * * * *
[[Page 67426]]
(i) Subcontracts. No subcontract placed under this contract may
provide for payment on a cost-plus-a-percentage-of-cost basis.
* * * * *
(End of clause)
5. Section 52.216-6 is amended by revising the clause date and
paragraph (h) to read as follows:
52.216-6 Price Redetermination--Retroactive.
* * * * *
PRICE REDETERMINATION--RETROACTIVE (FEB 1997)
* * * * *
(h) Subcontracts. No subcontract placed under this contract may
provide for payment on a cost-plus-a-percentage-of-cost basis.
* * * * *
(End of clause)
6. Section 52.216-16 is amended by revising the introductory
paragraph, the clause date, and paragraph (h) to read as follows:
52.216-16 Incentive Price Revision--Firm Target.
As prescribed in 16.405(a), insert the following clause:
INCENTIVE PRICE REVISION--FIRM TARGET (FEB 1997)
* * * * *
(h) Subcontracts. No subcontract placed under this contract may
provide for payment on a cost-plus-a-percentage-of-cost basis.
* * * * *
(End of clause)
* * * * *
7. Section 52.216-17 is amended by revising the introductory
paragraph, the clause date, and paragraph (j) to read as follows:
52.216-17 Incentive Price Revision--Successive Targets.
As prescribed in 16.405(b), insert the following clause:
INCENTIVE PRICE REVISION--SUCCESSIVE TARGETS (FEB 1997)
* * * * *
(j) Subcontracts. No subcontract placed under this contract may
provide for payment on a cost-plus-a-percentage-of-cost basis.
* * * * *
(End of clause)
* * * * *
8. Section 52.222-1 is amended by revising the introductory
paragraph and the clause date; by removing the paragraph designation
``(a)''; and by removing paragraph (b). The revised text reads as
follows:
52.222-1 Notice to the Government of Labor Disputes.
As prescribed in 22.103-5(a), insert the following clause:
NOTICE TO THE GOVERNMENT OF LABOR DISPUTES (FEB 1997)
* * * * *
(End of clause)
52.236-21 [Amended]
9. Section 52.236-21 is amended by revising the clause date to read
``(FEB 1997)'', and by removing paragraph (h).
52.244-2 [Amended]
10. Section 52.244-2 is amended by revising the clause date to read
``(FEB 1997)'', by removing paragraph (i); and by redesignating
paragraphs (j) and (k) as (i) and (j), respectively.
52.246-23 [Amended]
11. Section 52.246-23 is amended by revising the clause date to
read ``(FEB 1997)'', and by removing paragraph (d).
52.246-24 [Amended]
12. Section 52.246-24 is amended by revising the clause date to
read ``(FEB 1997)'', and by removing paragraphs (f) and (g).
52.246-25 [Amended]
13. Section 52.246-25 is amended by revising the clause date to
read ``(FEB 1997)'', and by removing paragraph (d).
[FR Doc. 96-32012 Filed 12-19-96; 8:45 am]
BILLING CODE 6820-EP-P
