[Federal Register Volume 63, Number 68 (Thursday, April 9, 1998)]
[Rules and Regulations]
[Pages 17339-17340]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-9431]
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NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 1843 and 1852
Suitable Adjustments Under Contracts for Construction,
Dismantling, Demolishing, or Removing Improvements
AGENCY: Office of Procurement, Contract Management Division, National
Aeronautics and Space Administration (NASA).
ACTION: Final rule.
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SUMMARY: This document amends NASA's Federal Acquisition Regulation
Supplement (NFS) to set forth an agency-wide clause that may be used
for equitable adjustments under contracts for construction,
dismantling, demolishing, or removing improvements that are
contemplated to be fixed-price and exceed the simplified acquisition
threshold.
EFFECTIVE DATE: April 9, 1998.
FOR FURTHER INFORMATION CONTACT: Mr. Joseph Le Cren, Telephone:
(202) 358-0444.
SUPPLEMENTARY INFORMATION:
Background
On December 8, 1997, a proposed rule to amend the NFS to establish
an agency-wide clause to handle equitable adjustments under fixed-price
contracts in excess of the simplified acquisition threshold for
construction, dismantling, demolishing, or removing improvements was
published in the Federal Register (62 FR 64545-64546) for comment.
Comments were submitted by only one commenter who took exception to
several aspects of the proposed rule. The comments were reviewed and
considered; however, no changes were made to the proposed rule as a
result of them.
Impact
NASA certifies that this proposed regulation will not have a
significant economic effect on a substantial number of small entities
under the Regulatory Flexibility Act (5 U.S.C. 601 et. seq.). This rule
does not impose any reporting or record keeping requirements subject to
the Paperwork Reduction Act.
List of Subjects in 48 CFR Parts 1843 and 1852
Government procurement.
Tom Luedtke,
Deputy Associate Administrator for Procurement.
Accordingly, 48 CFR 1843 and 1852 are amended as follows:
1. The authority citation for 48 CFR Parts 1843 and 1852 continues
to read as follows:
Authority: 42 U.S.C. 2743(c)(1).
PART 1843--CONTRACT MODIFICATIONS
1843.205-70 [Amended]
2. In section 1843.205-70, the heading is revised, paragraphs (a),
(b), and (c) are redesignated as (a)(1), (2), and (3), and a new
paragraph (b) is added to read as follows:
1843.205-70 NASA contract clauses.
* * * * *
(b) The contracting officer may insert a clause substantially as
stated at 1852.243-72, Equitable Adjustments, in solicitations and
contracts for--
(1) Dismantling, demolishing, or removing improvements; or
(2) Construction, when the contract amount is expected to exceed
the simplified acquisition threshold and a fixed-price contract is
contemplated.
PART 1852--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
1852.243-70 [Amended]
3. In section 1852.243-70, introductory text, the prescription
``1843.205-70(a)'' is revised to read ``1843.205-70(a)(1)''.
4. In Alternate I to section 1852.243-70, the prescription
``1843.205-70(b)'' is revised to read ``1843.205-70(a)(2).
5. In Alternate II to section 1852.243-70, the prescription
``1843.205-70(c)'' is revised to read ``1843.205-70(a)(3)''.
6. Section 1852.243-72 is added to read as follows:
1852.243-72 Equitable Adjustments.
As prescribed in 1843.205-70(b), insert the following clause.
Equitable Adjustments April 1998
(a) The provisions of all other clauses contained in this
contract which provide for an equitable adjustment, including those
clauses incorporated by reference with the exception of the
``Suspension of Work'' clause (FAR 52.242-14), are supplemented as
follows:
Upon written request, the Contractor shall submit a proposal for
review by the Government. The proposal shall be submitted to the
contracting officer within the time limit indicated in the request
or any extension thereto subsequently granted. The proposal shall
provide an itemized breakdown of all increases and decreases in the
contract for the Contractor and each subcontractor in at least the
following detail: material quantities and costs; direct labor hours
and rates for each trade; the associated FICA, FUTA, SUTA, and
Workmen's Compensation Insurance; and equipment hours and rates.
(b) The overhead percentage cited below shall be considered to
include all indirect costs including, but not limited to, field and
office supervisors and assistants, incidental job burdens, small
tools, and general overhead allocations. ``Commission'' is defined
as profit on work performed by others. The percentages for overhead,
profit, and commission are negotiable according to the nature,
extent, and complexity of the work involved, but in no case shall
they exceed the following ceilings:
[[Page 17340]]
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Overhead Profit
(percent) (percent) Commission
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To Contractor on work performed by other than its own forces............. ----- ----- 10
To first tier subcontractor on work performed by its subcontractors...... ----- ----- 10
To Contractor and/or subcontractors on work performed with their own
forces.................................................................. 10 10 -----
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(c) Not more than four percentages for overhead, profit, and
commission shall be allowed regardless of the number of
subcontractor tiers.
(d) The Contractor or subcontractor shall not be allowed
overhead or commission on the overhead, profit, and/or commission
received by its subcontractors.
(e) Equitable adjustments for deleted work shall include
credits, limited to the same percentages for overhead, profit, and
commission in paragraph (b) of this clause.
(f) On proposals covering both increases and decreases in the
amount of the contract, the application of the overhead, profit, and
commission shall be on the net change in direct costs for the
Contractor or the subcontractor performing the work.
(g) After receipt of the Contractor's proposal, the contracting
officer shall act within a reasonable period, provided that when the
necessity to proceed with a change does not permit time to properly
check the proposal, or in the event of a failure to reach an
agreement on a proposal, the contracting officer may order the
Contractor to proceed on the basis of the price being determined at
the earliest practicable date. In such a case, the price shall not
be more than the increase or less than the decrease proposed.
(End of clause)
[FR Doc. 98-9431 Filed 4-8-98; 8:45 am]
BILLING CODE 7510-01-U
