99-1513. Federal Acquisition Regulation; Cost Accounting Standards Post- Award Notification  

  • [Federal Register Volume 64, Number 15 (Monday, January 25, 1999)]
    [Proposed Rules]
    [Pages 3786-3787]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 99-1513]
    
    
    
    [[Page 3785]]
    
    _______________________________________________________________________
    
    Part III
    
    Department of Defense
    
    General Services Administration
    
    National Aeronautics and Space Administration
    _______________________________________________________________________
    
    
    
    48 CFR Part 52
    
    
    
    Federal Acquisition Regulation; Cost Accounting Standards Post-Award 
    Notification; Proposed Rules
    
    Federal Register / Vol. 64, No. 15 / Monday, January 25, 1999 / 
    Proposed Rules
    
    [[Page 3786]]
    
    
    
    DEPARTMENT OF DEFENSE
    
    GENERAL SERVICES ADMINISTRATION
    
    NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
    
    48 CFR Part 52
    
    [FAR Case 98-003]
    RIN 9000-AI23
    
    
    Federal Acquisition Regulation; Cost Accounting Standards Post-
    Award Notification
    
    AGENCIES: Department of Defense (DoD), General Services Administration 
    (GSA), and National Aeronautics and Space Administration (NASA).
    
    ACTION: Proposed rule.
    
    -----------------------------------------------------------------------
    
    SUMMARY: The Civilian Agency Acquisition Council and the Defense 
    Acquisition Regulations Council are proposing to amend the Federal 
    Acquisition Regulation (FAR) to reduce the subcontractor information 
    that a contractor is required to provide to its cognizant contract 
    administration office (CAO) when requesting the CAO to perform 
    administration for Cost Accounting Standards (CAS) matters.
    
    DATES: Comments should be submitted on or before March 26, 1999 to be 
    considered in the formulation of a final rule.
    
    ADDRESSES: Interested parties should submit written comments to: 
    General Services Administration FAR Secretariat (MVR) Attn: Laurie 
    Duarte 1800 F Street, NW, Room 4035 Washington, DC 20405.
        E-mail comments submitted over Internet should be addressed to: 
    farcase.98-003@gsa.gov.
        Please cite FAR case 98-003 in all correspondence related to this 
    case.
    
    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 FAR case 98-003.
    
    SUPPLEMENTARY INFORMATION:
    
    A. Background
    
        Under 48 CFR 9903.202-8(a), the contractor or higher-tier 
    subcontractor is responsible for administering the CAS requirements 
    contained in its subcontracts. FAR 30.601(b) requires the contractor or 
    subcontractor to transfer this responsibility to the cognizant 
    administrative contracting officer (ACO). The clause at FAR 52.230-6, 
    Administration of Cost Accounting Standards, contains the notification 
    requirement that implements FAR 30.601(b).
        Without this delegation of CAS responsibility from the contractor 
    or subcontractor to the cognizant ACO, the contractor or subcontractor 
    would be required to expend significant resources to oversee the CAS 
    system for each of its subcontractors that are subject to CAS. 
    Accordingly, it is essential that FAR 30.601(b) be retained. Since 
    paragraph (e)(2) of FAR clause 52.230-6 is the only mechanism for 
    notifying the cognizant ACO of the CAS administration delegation, it is 
    essential that this post-award notification requirement also be 
    retained. Although paragraph (e)(2) of FAR clause 52.230-6 should not 
    be deleted in its entirety, this paragraph has been streamlined to 
    include only the information essential to the CAS administration 
    delegation. The coverage currently contained in paragraph (e)(2)(iv) is 
    proposed for deletion because any changes in the subcontractor's cost 
    accounting practices will be reported directly by the subcontractor to 
    the subcontractor's cognizant contract administration office under the 
    applicable subcontractor CAS solicitation clause and/or CAS subcontract 
    clause(s) requirements.
        If respondents are aware of any alternatives for post-award 
    notification that would comply with FAR 30.601(b) but be less 
    burdensome to contractors and subcontractors, they may include their 
    alternatives with public comments on the proposed 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
    
        This proposed rule is not expected to 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 
    contracts and subcontracts with small businesses are exempt from all 
    CAS requirements in accordance with 48 CFR 9903.201-1(b)(3). An Initial 
    Regulatory Flexibility Analysis has, therefore, not been performed. 
    Comments are invited from small businesses and other interested 
    parties. Comments from small entities concerning the affected FAR 
    subpart will be considered in accordance with 5 U.S.C. 610 of the Act. 
    Such comments must be submitted separately and should cite 5 U.S.C. 
    601, et seq. (FAR case 98-003), in correspondence.
    
    C. Paperwork Reduction Act
    
        The Paperwork Reduction Act (44 U.S.C. 3501, et seq.) is deemed to 
    apply because the proposed rule revises existing information collection 
    requirements, resulting in a decrease in the estimated burden. 
    Accordingly, a request for amendment of information collection 
    requirements under approved Office of Management and Budget (OMB) 
    Control Number 9000-0129 will be submitted to OMB under 44 U.S.C. 3501, 
    et seq., at the final rule stage. The proposed rule decreases the 
    collection requirements currently approved under OMB Control Number 
    9000-0129, since the rule deletes the requirement to submit certain 
    information at FAR 52.230-6(e)(2)(iv).
    
    Annual Reporting Burden
    
        Public reporting burden for this collection of information is 
    estimated to average .33 hours per response, including the time for 
    reviewing instruction, searching existing data sources, gathering and 
    maintaining the data needed, and completing and reviewing the 
    collection of information.
        The annual reporting burden is estimated as follows: Estimated 
    number of respondents: 271; Responses per respondent: 2; Average burden 
    per response: 0.33; Total burden hours: 179; Frequency of report: On 
    occasion.
    
    D. Request for Comments Regarding Paperwork Burden
    
        Members of the public are invited to comment on the recordkeeping 
    and information collection requirements and estimates set forth above. 
    Please send comments to: Office of Information and Regulatory Affairs, 
    Office of Management and Budget, Attention: Mr. Peter N. Weiss, FAR 
    Desk Officer, New Executive Office Building, Room 10102, 725 17th 
    Street, NW., Washington, DC 20503.
        Also send a copy of any comments to the FAR Secretariat at the 
    address shown under ADDRESSES. Please cite the corresponding OMB 
    Clearance Number in all correspondence related to the estimate.
    
    List of Subjects in 48 CFR Part 52
    
        Government procurement.
    
        Dated: January 19, 1999.
    Edward C. Loeb,
    Director, Federal Acquisition Policy Division.
    
        Therefore, it is proposed that 48 CFR Part 52 be amended as set 
    forth below:
    
    PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
    
        1. The authority citation for 48 CFR Part 52 continues to read as 
    follows:
    
    
    [[Page 3787]]
    
    
        Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42 
    U.S.C. 2473(c).
    
        2. Section 52.230-6 is amended by revising the date of the clause 
    and paragraph (e) of the clause to read as follows:
    
    
    52.230-6  Administration of Cost Accounting Standards.
    
    * * * * *
    
    Administration of Cost Accounting Standards (Date)
    
    * * * * *
        (e) For all subcontracts subject to the clauses at FAR 52.230-2, 
    52.230-3, or 52.230-5--
        (1) So state in the body of the subcontract, in the letter of 
    award, or in both (self-deleting clauses shall not be used);
        (2) Include the substance of this clause in all negotiated 
    subcontracts; and
        (3) Within 30 days after award of the subcontract, submit the 
    following information to the Contractor's cognizant contract 
    administration office for transmittal to the contract administration 
    office cognizant of the subcontractor's facility:
        (i) Subcontractor's name and subcontract number.
        (ii) Dollar amount and date of award.
        (iii) Name of Contractor making the award.
    * * * * *
    [FR Doc. 99-1513 Filed 1-22-99; 8:45 am]
    BILLING CODE 6820-EP-P
    
    
    

Document Information

Published:
01/25/1999
Department:
National Aeronautics and Space Administration
Entry Type:
Proposed Rule
Action:
Proposed rule.
Document Number:
99-1513
Dates:
Comments should be submitted on or before March 26, 1999 to be considered in the formulation of a final rule.
Pages:
3786-3787 (2 pages)
Docket Numbers:
FAR Case 98-003
RINs:
9000-AI23
PDF File:
99-1513.pdf
CFR: (1)
48 CFR 52