[Federal Register Volume 64, Number 42 (Thursday, March 4, 1999)]
[Rules and Regulations]
[Page 10547]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-5209]
[[Page 10547]]
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Part 31
[FAC 97-11; FAR Case 98-001; Item VII]
RIN 9000-AI06
Federal Acquisition Regulation; Recruitment Costs Principle
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 amending
the Federal Acquisition Regulation (FAR) to revise the ``recruitment
costs'' and the ``public relations and advertising cost'' cost
principles for streamlining purposes.
EFFECTIVE DATE: May 3, 1999.
FOR FURTHER INFORMATION CONTACT: The FAR Secretariat, Room 4035, GS
Building, Washington, DC, 20405, (202) 501-4755, for information
pertaining to status or publication schedules. For clarification of
content, contact Ms. Linda Nelson, Procurement Analyst, at (202) 501-
1900. Please cite FAC 97-11, FAR case 98-001.
SUPPLEMENTARY INFORMATION:
A. Background
A proposed FAR rule was published in the Federal Register on August
12, 1998 (63 FR 43238). The final rule differs from the proposed rule
by deleting the following phrase from FAR 31.205-34(a): ``and provided
that the size of the staff recruited and maintained is in keeping with
the workload requirements.'' This phrase is unnecessary as the
criteria, including reasonableness, discussed in FAR part 31 are
sufficient to govern the acceptability of this type of cost.
Public comments were received from six sources. All comments were
considered in developing the final rule.
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.
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 most contracts awarded
to small entities use simplified acquisition procedures or are awarded
on a competitive, fixed-price basis, and do not require application of
the cost principles contained in this rule.
C. Paperwork Reduction Act
The Paperwork Reduction Act does not apply because the changes to
the FAR do not impose information collection requirements that 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: February 25, 1999.
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 31.205-1 is amended by revising paragraph (d) to read as
follows:
31.205-1 Public relations and advertising costs.
* * * * *
(d) The only allowable advertising costs are those that are--
(1) Specifically required by contract, or that arise from
requirements of Government contracts, and that are exclusively for--
(i) Acquiring scarce items for contract performance; or
(ii) Disposing of scrap or surplus materials acquired for contract
performance;
(2) Costs of activities to promote sales of products normally sold
to the U.S. Government, including trade shows, which contain a
significant effort to promote exports from the United States. Such
costs are allowable, notwithstanding paragraphs (f)(1), (f)(3),
(f)(4)(ii), and (f)(5) of this subsection. However, such costs do not
include the costs of memorabilia (e.g., models, gifts, and souvenirs),
alcoholic beverages, entertainment, and physical facilities that are
used primarily for entertainment rather than product promotion; or
(3) Allowable in accordance with 31.205-34.
* * * * *
3. Section 31.205-34 is amended by revising paragraph (a)
introductory text; by revising paragraph (b); and by removing paragraph
(c) to read as follows:
31.205-34 Recruitment costs.
(a) Subject to paragraph (b) of this subsection, the following
costs are allowable:
* * * * *
(b) Help-wanted advertising costs are unallowable if the
advertising--
(1) Does not describe specific positions or classes of positions;
or
(2) Includes material that is not relevant for recruitment
purposes, such as extensive illustrations or descriptions of the
company's products or capabilities.
[FR Doc. 99-5209 Filed 3-3-99; 8:45 am]
BILLING CODE 6820-EP-P
