[Federal Register Volume 62, Number 51 (Monday, March 17, 1997)]
[Rules and Regulations]
[Pages 12704-12705]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-6318]
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Part 31
[FAC 90-46; FAR Case 95-024; Item IX]
RIN 9000-AH03
Federal Acquisition Regulation; Independent Research and
Development/Bid and Proposal Costs in Cooperative Arrangements
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) to permit contractor
contributions of independent research and development (IR&D) costs
under NASA cooperative arrangements to be treated as allowable indirect
costs. 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 DATES: Effective May 16, 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 90-46, FAR case 95-024.
SUPPLEMENTARY INFORMATION:
A. Background
NASA published a class deviation (final rule) in the Federal
Register at 59 FR 46359, September 8, 1994. The class deviation
eliminates the prohibition at FAR 31.205-18(e) against treatment of
contractor IR&D contributions under NASA cooperative arrangements as
allowable indirect costs. This final rule eliminates the need for the
NASA class deviation.
A proposed rule was published in the Federal Register at 61 FR
31796, June 20, 1996. Two sources submitted public comments. All
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 FAR cost principles. In addition, this rule affects only those
entities that perform independent research and development effort under
NASA cooperative arrangements.
[[Page 12705]]
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 31
Government procurement.
Dated: March 7, 1997.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.
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).
2. Section 31.205-18(e) is revised to read as follows:
31.205-18 Independent research and development and bid and proposal
costs.
* * * * *
(e) Cooperative arrangements. (1) IR&D costs may be incurred by
contractors working jointly with one or more non-Federal entities
pursuant to a cooperative arrangement (for example, joint ventures,
limited partnerships, teaming arrangements, and collaboration and
consortium arrangements). IR&D costs also may include costs contributed
by contractors in performing cooperative research and development
agreements, or similar arrangements, entered into under--
(i) Section 12 of the Stevenson-Wydler Technology Transfer Act of
1980 (15 U.S.C. 3710(a));
(ii) Sections 203(c) (5) and (6) of the National Aeronautics and
Space Act of 1958, as amended (42 U.S.C. 2473(c) (5) and (6));
(iii) 10 U.S.C. 2371 for the Defense Advanced Research Projects
Agency; or
(iv) Other equivalent authority.
(2) IR&D costs incurred by a contractor pursuant to these types of
cooperative arrangements should be considered as allowable IR&D costs
if the work performed would have been allowed as contractor IR&D had
there been no cooperative arrangement.
[FR Doc. 97-6318 Filed 3-14-97; 8:45 am]
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