[Federal Register Volume 61, Number 83 (Monday, April 29, 1996)]
[Rules and Regulations]
[Pages 18915-18916]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-10428]
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DEPARTMENT OF DEFENSE
48 CFR Part 43
[FAC 90-38; FAR Case 94-723; Item I]
RIN 9000-AG90
Federal Acquisition Regulation; Modification of Existing
Contracts
AGENCIES: Department of Defense (DOD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Interim rule.
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SUMMARY: This interim rule is issued pursuant to the Federal
Acquisition Streamlining Act of 1994 (FASA) (Public Law 103-355) to
amend the Federal Acquisition Regulation (FAR). It implements Section
10002 of FASA which authorizes regulations to provide for modification
of existing contracts without requiring consideration, upon request of
the contractor, to incorporate changes authorized by FASA. This
regulatory action was subject to Office of Management and Budget review
under Executive Order 12866, dated September 30, 1993. It is not a
major rule under 5 U.S.C. 804.
DATES: Effective Date: April 29, 1996.
Comment Date: Comments should be submitted to the FAR Secretariat
at the address shown below on or before June 28, 1996 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, Attn: Ms. Beverly Fayson, Washington, DC 20405.
Please cite FAC 90-38, FAR case 94-723, in all correspondence
related to this case.
FOR FURTHER INFORMATION CONTACT: Mr. Al Winston at (703) 602-2119 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 FAC 90-38, FAR case 94-723.
SUPPLEMENTARY INFORMATION:
A. Background
Section 10002 of FASA states that regulations implementing FASA may
provide for modification of existing contracts without consideration,
upon request of the contractor, to incorporate changes authorized by
FASA. Section 10002 also states that nothing in FASA requires the
renegotiation or modification of existing contracts to incorporate
changes authorized by FASA. The interim rule adopts the policy of
encouraging, but not requiring, appropriate modifications without
consideration, upon the request of the contractor. If the contracting
officer determines that modification of an existing contract is
appropriate to incorporate changes authorized by FASA, the modification
should insert the current version of the applicable FAR clauses.
B. Regulatory Flexibility Act
The changes may 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 it will require
contractors seeking to amend existing contracts to so notify the
contracting officer. An Initial Regulatory Flexibility Analysis (IRFA)
has been prepared. A copy of the IRFA may be obtained from the FAR
Secretariat. Comments are invited. Comments from small entities
concerning the affected FAR subparts 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 90-38, FAR case 94-723), 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 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.
D. Determination To Issue an Interim Rule
A determination has been made under the authority of the Secretary
of Defense (DOD), the Administrator of General Services (GSA), and the
Administrator of the National Aeronautics and Space Administration
(NASA) that compelling reasons exist to promulgate this interim rule
without prior opportunity for public comment. This action is necessary
because immediate implementation as an interim rule will provide
significant benefits to industry and the Government. Section 10002 of
FASA, authorizes contracting officers, if requested by the prime
contractor to modify contracts without requiring consideration, to
incorporate changes authorized by FASA. The regulatory implementation
of FASA has been a success for both industry and the Government.
Implementation of FASA Section 10002 as an interim rule will enable
industry and the Government to gain immediate benefits, including the
potential reduction of procurement costs. The interim rule authorizes
the adoption of any of the FASA rules that will benefit the contracting
parties. The interim rule should involve no substantial risk to
industry, since contractors must affirmatively request adoption of the
FASA rules to an existing contract. It has been through the process of
the consideration and adoption of the FAR rules to implement FASA, that
the potential benefits from this interim rule became apparent. However,
pursuant to Public Law 98-577 and FAR 1.501, public comments received
in response to this interim rule will be considered in the formulation
of the final rule.
List of Subjects in 48 CFR Part 43
Government procurement.
Dated: April 18, 1996.
Edward C. Loeb,
Deputy Project Manager for Implementation of the Federal Acquisition
Streamlining Act of 1994.
Therefore, 48 CFR Part 43 is amended as set forth below:
PART 43--CONTRACT MODIFICATIONS
1. The authority citation for 48 CFR Part 43 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 43.102 is amended by adding paragraph (c) to read as
follows:
43.102 Policy.
* * * * *
(c) The Federal Acquisition Streamlining Act of 1994, Public Law
103-355 (FASA), authorizes, but does not require, contracting officers,
if requested by the prime contractor, to
[[Page 18916]]
modify contracts without requiring consideration to incorporate changes
authorized by FASA amendments into existing contracts. Contracting
officers are encouraged, if appropriate, to modify contracts without
requiring consideration to incorporate these new policies. The contract
modification should be accomplished by inserting into the contract, as
a minimum, the current version of the applicable FAR clauses.
[FR Doc. 96-10428 Filed 4-26-96; 8:45 am]
BILLING CODE 6820-EP-P
