[Federal Register Volume 62, Number 236 (Tuesday, December 9, 1997)]
[Rules and Regulations]
[Pages 64931-64932]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-31821]
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 31 and 42
[FAC 97-03; FAR Case 95-032; Item VIII]
RIN 9000-AH37
Federal Acquisition Regulation; Independent Research and
Development/Bid and Proposal Costs for Fiscal Year 1996 and Beyond
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) allowable cost criteria for
Independent Research and Development (IR&D)/Bid and Proposal (B&P)
costs for fiscal year 1996 and beyond, by removing the requirements to
calculate or negotiate a ceiling for IR&D/B&P costs. In addition, the
final rule clarifies that costs incurred in preparing, submitting, and
supporting offers on potential cooperative arrangements are allowable
to the extent they are allocable, reasonable, and not otherwise
unallowable. 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: February 9, 1998.
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 97-03, FAR case 95-032.
SUPPLEMENTARY INFORMATION:
A. Background
A proposed rule was published on November 14, 1996 (61 FR 58452).
The final rule differs from the proposed rule by revising the last
sentence at FAR 31.205-18(e) for clarification and by deleting ``and
B&P'' from the heading at 31.205-18(d) to better convey the subject
matter of the paragraph.
Public comments were received from four sources. The comments were
considered in developing 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 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 principle contained in this rule.
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 31 and 42
Government procurement.
Dated: December 1, 1997.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.
Therefore, 48 CFR Parts 31 and 42 are amended as set forth below:
1. The authority citation for 48 CFR Parts 31 and 42 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).
[[Page 64932]]
PART 31--CONTRACT COST PRINCIPLES AND PROCEDURES
2. Section 31.205-18 is amended in paragraph (a) by removing
definitions for ``Contractor'', ``Covered contract'', ``Covered
segment'', and ``Major contractor''; by revising paragraph (c) and the
heading of paragraph (d); and adding paragraph (e)(3) to read as
follows:
31.205-18 Independent research and development and bid and proposal
costs.
* * * * *
(c) Allowability. Except as provided in paragraphs (d) and (e) of
this subsection, or as provided in agency regulations, costs for IR&D
and B&P are allowable as indirect expenses on contracts to the extent
that those costs are allocable and reasonable.
(d) Deferred IR&D costs.* * *
* * * * *
(e) * * *
(3) Costs incurred in preparing, submitting, and supporting offers
on potential cooperative arrangements are allowable to the extent they
are allocable, reasonable, and not otherwise unallowable.
PART 42--CONTRACT ADMINISTRATION
Subpart 42.10 [Reserved]
3. Subpart 42.10 is removed and reserved.
[FR Doc. 97-31821 Filed 12-8-97; 8:45 am]
BILLING CODE 6820-EP-P
