[Federal Register Volume 61, Number 18 (Friday, January 26, 1996)]
[Rules and Regulations]
[Pages 2633-2634]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-1019]
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 15 and 52
[FAC 90-37; FAR Case 92-010; Item V]
RIN 9000-AF77
Federal Acquisition Regulation; Nonprofit Institutions Clause
Prescription
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). These changes revise the
prescriptions for use of the clauses, Termination of Defined Benefit
Pension Plans and Reversion or Adjustment of Plans for Postretirment
Benefits Other Than Pensions (PRB), and also clarifies the language of
the clauses. This regulatory action was not subject to Office of
Management and Budget review under Executive Order 12866, dated
September 30, 1993.
EFFECTIVE DATE: March 26, 1996.
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 4037, GS
Building, Washington, DC 20405 (202) 501-4755. Please cite FAC 90-37,
FAR case 92-010.
SUPPLEMENTARY INFORMATION:
A. Background
The wording of the prescriptions at 15.804-8(e) and (f) currently
implies that the clauses at 52.215-27, Termination of Defined Benefit
Pension Plans, and 52.215-39, Reversion or Adjustment of Plans for
Postretirement Benefits Other Than Pensions, should also be used in
solicitions and contracts with noncommercial organizations. The clauses
refer to the cost principles applicable to commercial organizations in
FAR subpart 31.2, whereas OMB Circulars A-21, A-87 and A-122 contain
the cost principles governing contracts with noncommercial
organizations. In addition, the prescriptions currently contain
dissimilar criteria concerning the use of the clauses in preaward or
postaward cost situations. The revisions to the prescriptions at
15.804-8(e) and (f) correct these inconsistencies and clarify when the
clauses at 52.215-27 and 52.215-39 should be used. Additional revisions
to the clauses clarify the requirements specified in them. A proposed
rule was published in the Federal Register at 59 FR 16389, April 6,
1994. Three public comments were received. No changes were made as a
result of those comments.
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 under the Regulatory Flexibility Act, 5 U.S.C.
601, et seq., because most contracts awarded to small businesses are
awarded on a competitive, fixed-price basis and the cost principles do
not apply. It is estimated that the number of contract actions awarded
to small businesses which require the submission of cost or pricing
data average less than 1 percent of the total number of small business
actions.
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, 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 15 and 52
Government procurement.
Dated: January 11, 1996.
Edward C. Loeb,
Acting Director, Office of Federal Acquisition Policy.
Therefore, 48 CFR Parts 15 and 52 are amended as set forth below:
1. The authority citation for 48 CFR Parts 15 and 52 continue 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 15--CONTRACTING BY NEGOTIATION
2. Section 15.804-8 is amended by revising paragraphs (e) and (f);
and in paragraph (g) by removing the word ``certified''. The revised
text reads as follows:
15.804-8 Contract clauses and solicitation provisions.
* * * * *
(e) Termination of defined benefit pension plans. The contracting
officer shall insert the clause at 52.215-27, Termination of Defined
Benefit Pension Plans, in solicitations and contracts for which it is
anticipated that cost or pricing data will be required or for which any
preaward or postaward cost determinations will be subject to part 31.
(f) Postretirement benefit funds. The contracting officer shall
insert the clause at 52.215-39, Reversion or Adjustment of Plans for
Postretirement Benefits Other Than Pensions (PRB), in solicitations and
contracts for which it is anticipated that cost or pricing data will be
required or for which any preaward or postaward cost determination will
be subject to part 31.
* * * * *
[[Page 2634]]
PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
3. Section 52.215-27 is amended by revising the clause to read as
follows:
52.215-27 Termination of Defined Benefit Pension Plans.
* * * * *
Termination of Defined Benefit Pension Plans (Mar 1996)
The Contractor shall promptly notify the Contracting Officer in
writing when it determines that it will terminate a defined benefit
pension plan or otherwise recapture such pension fund assets. If
pension fund assets revert to the Contractor or are constructively
received by it under a termination or otherwise, the Contractor
shall make a refund or gift a credit to the Government for its
equitable share of the gross amount withdrawn. The Government's
equitable share shall reflect the Government's participation in
pension costs through those contracts for which cost or pricing data
(see 15.804 of the Federal Acquisition Regulation (FAR)) were
submitted or which are subject to FAR Part 31. The Contractor shall
include the substance of this clause in all subcontracts under this
contract which meets the applicability requirements of FAR 15.804-
8(e).
(End of clause)
4. Section 52.215-39 is amended by revising the clause to read as
follows:
52.215-39 Reversion or Adjustment of Plans for Postretirement Benefits
Other Than Pensions (PRB).
* * * * *
Reversion or Adjustment of Plans for Postretirement Benefits Other Than
Pensions (PRB) (Mar 1996)
The Contractor shall promptly notify the Contracting Officer in
writing when it determines that it will terminate or reduce a PRB
plan. If PRB fund assets revert, or inure, to the Contractor or are
constructively received by it under a plan termination, reduction,
or otherwise, the Contractor shall make a refund or give a credit to
the Government for its equitable share of any amount of previously
funded PRB costs which revert or inure to the Contractor. Such
equitable share shall reflect the Government's previous
participation in PRB costs through those contracts for which cost or
pricing data (see 15.804 of the Federal Acquisition Regulation
(FAR)) were submitted or which are subject to FAR Part 31. The
Contractor shall include the substance of this clause in all
subcontracts under this contract which meet the applicability
requirements of FAR 15.804-8(f).
(End of clause)
[FR Doc. 96-1019 Filed 1-25-96; 8:45 am]
BILLING CODE 6820-EP-M
