[Federal Register Volume 59, Number 59 (Monday, March 28, 1994)]
[Unknown Section]
[Page ]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-6897]
[Federal Register: March 28, 1994]
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DEPARTMENT OF DEFENSE
48 CFR Part 45
[FAR Case 91-83]
Federal Acquisition Regulation; Government Property
AGENCIES: Department of Defense (DOD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Proposed rule.
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SUMMARY: The Civilian Agency Acquisition Council and the Defense
Acquisition Regulations Council are proposing to amend the Federal
Acquisition Regulation (FAR) to emphasize the Government's policy on
providing facilities to contractors, to clarify the exceptions to this
policy and the procedures for authorizing the exceptions, and to remove
unnecessary and duplicative language. The purpose in emphasizing the
Government's current policy is to reduce the amount of Government
facilities provided to contractors. This regulatory action was not
subject to Office of Management and Budget review pursuant to Executive
Order No. 12866 dated September 30, 1993.
DATES: Comments should be submitted to the FAR Secretariat at the
address shown below on or before May 27, 1994 to be considered in the
formulation of a final rule.
ADDRESSES: Interested parties should submit written comments to:
General Services Administration, FAR Secretariat (VRS), 18th & F
Streets, NW., room 4037, Washington, DC 20450.
Please cite FAR case 91-83 in all correspondence related to this
case.
FOR FURTHER INFORMATION CONTACT:
Ms. Linda Klein at (202) 501-3775 in reference to this FAR case. For
general information, contact the FAR Secretariat, room 4037, GS
Building, Washington, DC 20405 (202) 501-4755. Please cite FAR case 91-
83.
SUPPLEMENTARY INFORMATION:
A. Background
FAR 45.302 currently states that contractors shall furnish all
facilities, with certain exceptions, in performing Government
contracts. Despite this policy statement, recent oversight reviews have
been critical of the amount of Government facilities in the hands of
contractors. The Councils reviewed the language at 45.302 and revised
it to clarify current policy and remove unnecessary and duplicative
language.
B. Regulatory Flexibility Act
The proposed rule is not expected to 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 the rule
is a recasting of existing policy and does not include any substantive
changes. An Initial Regulatory Flexibility Analysis has, therefore, not
been performed. Comments from small entities concerning the affected
FAR subpart will be considered in accordance with section 610 of the
Act. Such comments must be submitted separately and should cite 5
U.S.C. 601, et seq., (FAR case 91-83), in correspondence.
C. Paperwork Reduction Act
The Paperwork Reduction Act does not apply because the proposed
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 45
Government procurement.
Dated: March 18, 1994.
Albert A. Vicchiolla,
Director, Office of Federal Acquisition Policy.
Therefore, it is proposed that 48 CFR part 45 be amended as set
forth below:
PART 45--GOVERNMENT PROPERTY
1. The authority citation for 48 CFR part 45 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 45.302-1 is revised to read as follows:
45.302-1 Policy.
(a) Contractors shall provide all facilities required for
performing Government contracts except that agencies may provide
facilities--
(1) For use in a Government-owned, contractor-operated industrial
plant operated on a cost-plus-fee basis;
(2) For support of industrial preparedness programs;
(3) For use in performing a contract on a Government installation;
(4) As components of special tooling or special test equipment
acquired or fabricated at Government expense subsequent to approval by
the contracting officer;
(5) When the facilities are only available from Government sources;
(6) As otherwise authorized by law; or
(7) When the agency head or designee issues a Determination and
Finding (see subpart 1.7) that the contract cannot be fulfilled by any
other practical means or that it is in the public interest to provide
the facilities.
(i) Mere assertion by a contractor that it is unable to provide
facilities is not, in itself, sufficient to justify approval. The
determination shall include findings that the contractor sought private
financing of the facilities but it was not available or that private
financing is determined not advantageous to the Government. If the
contractor's inability to provide facilities is due to insufficient
lead time, the Government may furnish existing facilities until the
contractor's facilities can be installed.
(ii) The original determination and the contractor's written
statement asserting inability to obtain nongovernment facilities, if
applicable, shall be included in the contract file.
(iii) Government facilities with a unit cost of less than $10,000
shall not be provided to contractors under the exception in
subparagraph (a)(7) unless the contractor is a nonprofit institution of
higher education or other nonprofit organization whose primary purpose
is the conduct of scientific research.
(b) Even when one of the exceptions in subparagraphs (a)(1) through
(a)(7) of this section applies, agencies shall not--
(1) Provide new facilities to contractors unless existing
Government-owned facilities are either inadequate or cannot be
economically furnished;
(2) Use research and development funds to provide contractors with
new construction or improvements of general utility, unless authorized
by law; or
(3) Provide facilities to contractors solely for nongovernment use,
unless authorized by law.
(c) The applicability of the exceptions in subparagraphs (a)(1)
through (a)(6) of this section shall be documented in the contract file
by a Determination and Findings signed by the contracting officer.
(d) Government facilities provided to contractors shall be
individually identified in the solicitation and the contract.
[FR Doc. 94-6897 Filed 3-25-94; 8:45 am]
BILLING CODE 6820-34-M
