[Federal Register Volume 61, Number 246 (Friday, December 20, 1996)]
[Rules and Regulations]
[Page 67418]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-32004]
[[Page 67418]]
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DEPARTMENT OF DEFENSE
48 CFR Part 12
[FAC 90-43; FAR Case 96-310; Item IV]
RIN 9000-AH01
Federal Acquisition Regulation; Inapplicability of Cost
Accounting Standards to Contracts and Subcontracts for Commercial Items
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) to implement Section 4205 of
the Clinger-Cohen Act of 1996 (Public Law 104-106) (formerly the
Federal Acquisition Reform Act (FARA)). Section 4205 amends Section
26(f) of the Office of Federal Procurement Policy (OFPP) Act (41 U.S.C.
422(f)) by noting the current applicability of Cost Accounting
Standards (CAS) to contracts and subcontracts for commercial items.
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: January 1, 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 96-310.
SUPPLEMENTARY INFORMATION:
A. Background
This final rule amends FAR Part 12 to implement Section 4205 of the
Clinger-Cohen Act of 1996 (Public Law 104-106). Section 4205 amends
Section 26(f) of the OFPP Act (41 U.S.C. 422(f)), making the
application of CAS to commercial items ``nonmandatory''. Therefore, the
new coverage at FAR 12.214 indicates that CAS generally will not apply
to commercial items unless so indicated at 48 CFR 9903.201. A cross-
reference to FAR 12.214 is added at 12.503(c) and 12.504(c), to further
clarify the effect of Section 4205.
A proposed rule was published in the Federal Register on June 21,
1996 (61 FR 32312). Three sources submitted comments in response to the
proposed rule. All comments were considered in the development of 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 contracts and
subcontracts with small businesses are exempt from Cost Accounting
Standards requirements.
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 12
Government procurement.
Dated: December 11, 1996.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.
Therefore, 48 CFR Part 12 is amended as set forth below:
PART 12--ACQUISITION OF COMMERCIAL ITEMS
1. The authority citation for 48 CFR Part 12 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 12.214 is added to read as follows:
12.214 Cost Accounting Standards.
Cost Accounting Standards (CAS) generally will not apply to
commercial items. If CAS does apply pursuant to 48 CFR 9903.201 (FAR
Appendix B), the contracting officer shall insert the appropriate
provisions and clauses as prescribed in that section.
3. Section 12.503(c)(3) is revised to read as follows:
12.503 Applicability of certain laws to Executive agency contracts for
the acquisition of commercial items.
* * * * *
(c) * * *
(3) 41 U.S.C. 422, Cost Accounting Standards (48 CFR chapter 99)
(see 12.214).
* * * * *
4. Section 12.504(c)(3) is revised to read as follows:
12.504 Applicability of certain laws to subcontracts for the
acquisition of commercial items.
* * * * *
(c) * * *
(3) 41 U.S.C. 422, Cost Accounting Standards (48 CFR chapter 99)
(see 12.214).
[FR Doc. 96-32004 Filed 12-19-96; 8:45 am]
BILLING CODE 6820-EP-P
