[Federal Register Volume 63, Number 243 (Friday, December 18, 1998)]
[Rules and Regulations]
[Pages 70290-70291]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-33520]
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Part 48
[FAC 97-10; FAR Case 96-011; Item VIII]
RIN 9000-AH37
Federal Acquisition Regulation; No-Cost Value Engineering Change
Proposals
AGENCIES: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Interim rule adopted as final without change.
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SUMMARY: The Civilian Agency Acquisition Council and the Defense
Acquisition Regulations Council have agreed to convert the interim rule
published as Item X of Federal Acquisition Circular 97-05 at 63 FR
34078, June 22, 1998, to a final rule without change. The rule amends
the Federal Acquisition Regulation (FAR) to clarify that no-cost value
engineering change proposals (VECPs) may be used when, in the
contracting officer's judgment, reliance on other VECP approaches
likely would not be more cost-effective, and the no-cost settlement
would provide adequate consideration to the Government.
EFFECTIVE DATE: December 18, 1998.
FOR FURTHER INFORMATION CONTACT: The FAR Secretariat, Room 4035, GS
[[Page 70291]]
Building, Washington, DC 20405, (202) 501-4755, for information
pertaining to status or publication schedules. For clarification of
content, contact Ms. Linda Klein, Procurement Analyst, at (202) 501-
3775. Please cite FAC 97-10, FAR case 96-011.
SUPPLEMENTARY INFORMATION:
A. Background
An interim rule was published at 63 FR 34078, June 22, 1998, to
clarify that the no-cost VECP guidance at FAR 48.104-3 permits the use
of no-cost settlements when the contracting officer has balanced the
administrative costs of negotiating a settlement against the
anticipated savings; and when, in the contracting officer's judgment,
reliance on other VECP approaches likely would not be more cost-
effective, and the no-cost settlement would provide adequate
consideration to the Government. The no-cost VECP alternative was not
intended for use when significant cost savings are anticipated on the
instant contract.
No public comments were received in response to the interim FAR
rule. Therefore, the interim FAR rule is being converted to a final
rule without change.
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 Regulatory Flexibility Act, 5 U.S.C. 601 et seq. applies to
this final rule. A Final Regulatory Flexibility Analysis (FRFA) has
been performed and is summarized as follows:
This rule clarifies that the guidance at FAR 48.104-3, Sharing
alternatives--no-cost settlement method, permits use of no-cost VECP
settlements when the contracting officer has balanced the
administrative costs of negotiating a settlement against the
anticipated savings; and, in the contracting officer's judgment,
reliance on other VECP approaches likely would not be more cost-
effective, and the no-cost settlement would provide adequate
consideration to the Government. The no-cost VECP alternative was
not intended for use when significant cost savings are anticipated
on the instant contract.
The FRFA has been provided to the Chief Counsel for Advocacy of the
Small Business Administration. A copy of the FRFA may be obtained from
the FAR Secretariat.
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 Part 48
Government procurement.
Dated: December 14, 1998.
Ralph DeStefano,
Acting Director, Federal Acquisition Policy Division.
Interim Rule Adopted as Final Without Change
Accordingly, the interim rule amending 48 CFR Part 48, which was
published at 63 FR 34078, June 22, 1998, is adopted as a final rule
without change.
Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42
U.S.C. 2473(c).
[FR Doc. 98-33520 Filed 12-16-98; 8:45 am]
BILLING CODE 6820-EP-P
