94-4393. Federal Acquisition Regulation; Independent Research and Development and Bid and Proposal Costs

[Federal Register Volume 59, Number 47 (Thursday, March 10, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-4393]


[[Page Unknown]]

[Federal Register: March 10, 1994]


-----------------------------------------------------------------------


DEPARTMENT OF DEFENSE
48 CFR Part 31

[FAC 90-20; FAR Case 93-302; Item XII]
RIN 9000-AF42

 

Federal Acquisition Regulation; Independent Research and 
Development and Bid and Proposal Costs

AGENCIES: Department of Defense (DOD), General Services Administration 
(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Final rule.

-----------------------------------------------------------------------

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) by inserting a date certain 
with regard to waiving the limitation on the maximum allowable amount 
of independent research and development and bid and proposal costs for 
a major contractor in order to ensure that the amount determined to be 
allowable for such contractor is at least equal to what would have been 
allowed prior to the enactment of the National Defense Authorization 
Act for Fiscal Years 1992 and 1993.

EFFECTIVE DATE: May 9, 1994.

FOR FURTHER INFORMATION CONTACT:
Mr. Jeremy Olson at [phone] in reference to this FAR case. For 
general information, contact the FAR Secretariat, room 4037, GS 
Building, Washington, DC 20405 [phone]. Please cite FAC 90-20, 
FAR Case 93-302.

SUPPLEMENTARY INFORMATION: 

A. Background

    This rule implements section 1052 of the National Defense 
Authorization Act for Fiscal Year 1993 (Public Law 102-484) which 
amended 10 U.S.C. 2372(e)(1) concerning waiver of the limitation on 
total maximum allowable amount of independent research and development 
and bid and proposal (IR&D/B&P) costs. Section 2372(e)(1) of title 10 
was originally added by section 802 of the National Defense 
Authorization Act for Fiscal Years 1992 and 1993 (Public Law 102-190), 
which was enacted December 5, 1991. Section 1052 then amended 10 U.S.C. 
2372(e)(1) by removing the phrase that begins with ``on the day 
before'' and ends at the semicolon, and inserted, in lieu thereof, the 
phrase ``on December 4, 1991.''
    The rule inserts a date certain with regard to the FAR provision 
for waiving the limitation on the maximum allowable amount of IR&D/B&P 
costs for a major contractor in order to ensure that the amount 
determined to be allowable for such contractor is at least equal to 
what would have been allowed prior to the enactment of Public Law 102-
190 on December 5, 1991. The phrase ``prior to the enactment of Public 
Law 102-190'' is removed from FAR 31.205-18(c)(2)(iii) (A) and replaced 
with the phrase ``on December 4, 1991.''

B. Regulatory Flexibility Act

    The final rule does not constitute a significant FAR revision 
within the meaning of FAR 1.501 and Public Law 98-577, and publication 
for comments is not required. Therefore, the Regulatory Flexibility act 
does not apply. However, comments from small entities concerning the 
affected subpart will be considered in accordance with 5 U.S.C. 610. 
Such comments must be submitted separately and cite 5 U.S.C. 601, et 
seq. (FAC 90-20, FAR case 93-302), in correspondence.

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 collection of information from offerors, contractors, 
or members of the public which require the approval of OMB under 44 
U.S.C. 3501, et seq.

List of Subjects in 48 CFR Part 31

    Government procurement.

    Dated: February 15, 1994.
Albert A. Vicchiolla,
Director, Office of Federal Acquisition Policy.

    Therefore, 48 CFR part 31 is amended as set forth below:

PART 31--CONTRACT COST PRINCIPLES AND PROCEDURES

    1. The authority citation for 48 CFR part 31 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).


31.205-18  [Amended]

    2. Section 31.205-18(c)(2)(iii)(A) is amended by removing the words 
``prior to enactment of Public Law 102-190'' and inserting in its place 
``on December 4, 1991''.

[FR Doc. 94-4393 Filed 3-9-94; 8:45 am]
BILLING CODE 6820-34-M