94-8147. Federal Acquisition Regulation; Contractors' Purchasing Systems Reviews and Subcontractor Consent

[Federal Register Volume 59, Number 66 (Wednesday, April 6, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-8147]


[[Page Unknown]]

[Federal Register: April 6, 1994]



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48 CFR Parts 44 and 52

[FAR Case 92-40]

 

Federal Acquisition Regulation; Contractors' Purchasing Systems 
Reviews and Subcontractor Consent

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 amendments to the Federal 
Acquisition Regulation (FAR) to increase certain dollar thresholds 
regarding Contractors' Purchasing Systems Reviews (CPSR's) and 
Subcontractor Consent. These revisions are a result of recommendations 
submitted in response to the FAR Council's request for industry's views 
on the FAR. This regulatory action was not subject to Office of 
Management and Budget review pursuant to Executive Order 12866, dated 
September 30, 1993.

DATES: Comments should be submitted on or before June 6, 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 20405.
    Please cite FAR case 92-40 in all correspondence related to this 
case.

FOR FURTHER INFORMATION CONTACT:
Ms. Linda Klein 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 FAR case 92-
40.

SUPPLEMENTARY INFORMATION:

A. Background

    We raised the threshold for performing CPSR's from $10 million to 
$25 million to recognize the effects of inflation on this threshold 
which had not been changed since 1980. The $25 million threshold will 
reduce administrative burden on both the Government and contractors by 
reducing the number of reviews performed annually and focuses the 
Government's attention on large dollar procurement systems.
    We raised the $10,000 threshold stated in the clause at 52.244-
2(a)(4) to $25,000 for notification to the contracting officer on 
proposed subcontracts involving fabrication, purchase, rental, 
installation, or other acquisition of special test equipment or any 
items of facilities to recognize the increased costs of this type of 
equipment and the effects of inflation.
    We also raised the threshold in the clause at 52.244-2(b)(1) 
requiring additional information on certain subcontracts from $10,000 
to $25,000. This increase recognizes rising hourly wage rates and 
contract costs.

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 
reduces burden on contractors by reducing surveillance and by 
increasing dollar thresholds at which contractors are required to 
provide notification of intent to subcontract. 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 5 U.S.C. 610. Such comments must be submitted 
separately and should cite 5 U.S.C. 601, et seq. (FAR case 92-40), in 
correspondence.

C. Paperwork Reduction Act

    The Paperwork Reduction Act (Pub. L. 96-511) is deemed to apply 
because the proposed rule contains information collection requirements. 
Accordingly, a request for approval of a new information collection 
requirement concerning Contractors' Purchasing Systems Reviews and 
Subcontractor Consent is being submitted to the Office of Management 
and Budget under 44 U.S.C. 3501, et seq. Public comments concerning 
this request are invited through a notice document in this Federal 
Register issue.

List of Subjects in 48 CFR Parts 44 and 52

    Government procurement.

    Dated: March 28, 1994.
Albert A. Vicchiolla,
Director, Office of Federal Acquisition Policy.

    Therefore, it is proposed that 48 CFR parts 44 and 52 be amended as 
set forth below:
    1. The authority citation for 48 CFR parts 44 and 52 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).

PART 44--SUBCONTRACTING POLICIES AND PROCEDURES


44.302  [Amended]

    2. Section 44.302 is amended in the first and fourth sentences of 
paragraph (a) by removing the amount ``$10 million'' and inserting 
``$25 million''.
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PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES


52.244-2  [Amended]

    3. Section 52.244-2 is amended in the clause heading by revising 
the date to read ``(DATE)''; in paragraphs (a)(4) and (b)(1) of the 
clause by removing the amount ``$10,000'' and inserting ``$25,000''.
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[FR Doc. 94-8147 Filed 4-5-94; 8:45 am]
BILLING CODE 6820-34-M