[Federal Register Volume 59, Number 83 (Monday, May 2, 1994)]
[Unknown Section]
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From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-10422]
[[Page Unknown]]
[Federal Register: May 2, 1994]
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NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 1816, 1831, and 1852
Deviation From FAR 31.205-18
AGENCY: Office of Procurement, Procurement Policy Division, National
Aeronautics and Space Administration (NASA).
ACTION: Interim rule.
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SUMMARY: This rule provides a class deviation from the cost principle
on independent research and development (IR&D). This class deviation
will permit the costs of IR&D effort incurred under a cooperative
arrangement with NASA, that otherwise would have been allowed as IR&D
had there been no cooperative arrangement, to be used as the
contractor's contribution under the arrangement and to be recoverable
as indirect costs. The intended effect of this deviation will be to
allow NASA to increase its technology transfer efforts and eliminate
barriers to technology development as recommended by the President's
National Performance Review.
DATES: Effective Date: This regulation is effective May 2, 1994.
Comments: Comments must be received on or before July 1, 1994.
ADDRESSEES: Submit comments to Mr. Joseph Le Cren, Procurement Analyst,
Contract Pricing and Finance Division (Code HC), Office of Procurement,
NASA Headquarters, Washington, DC 20546.
FOR FURTHER INFORMATION CONTACT:
Mr. Joseph Le Cren, (202) 358-0444.
SUPPLEMENTARY INFORMATION:
Background
FAR 31.205-18 precludes the allowability of costs incurred for
independent research and development (IR&D) by contractions in the
performance of cooperative arrangements entered into with NASA on a
cost-sharing basis. This prohibition reflects a policy decision which
NASA wishes to change. NASA proposes a class deviation which would
permit costs contributed by a contractor under a cost-sharing
cooperative arrangement with NASA to be recoverable as indirect costs,
as long as these costs would otherwise have been allowed as IR&D had
there been no cooperative arrangement. The deviation is needed in order
for NASA to increase its technology transfer efforts and to eliminate
barriers to technology development as recommended by the National
Performance Review (NPR). The NPR has recommended that NASA devote 10
to 20 percent of its budget to partnerships with industry. This target
cannot be successfully achieved only through contracts, grants and
cooperative agreements with nonprofit institutions. Cooperative
arrangements with industrial firms or consortia are viewed as the most
streamlined and efficient way to accomplish technology transfer on the
scale envisioned by the NPR. However, this is hindered because private
financing may not be adequate to support the contractor contributions
to cooperative arrangements. A barrier whose elimination could
significantly aid in achieving NASA's technology transfer and
development efforts is the current prohibition at FAR 31.205-18. In
addition to increasing the transfer of technology by NASA, the
deviation will also achieve uniformity and consistency with other
federal agencies in the treatment of similar costs. An example of this
is the Advanced Research Projects Agency which, under the Technology
Reinvestment Projects, has entered into cooperative arrangements which
permit contractors to classify their contribution as IR&D and to
recover those same costs as allowable indirect costs; the same result
NASA wishes to achieve.
This rule is to be effective on an interim basis due to there being
multiple cooperative agreements which would be detrimentally impacted
if the rule were delayed.
Impact
NASA certifies that this regulation will not have a significant
economic impact 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 1816, 1831, and 1852
Government procurement.
Tom Luedtke,
Deputy Associate Administrator for Procurement.
Accordingly, 48 CFR parts 1816, 1831, and 1852 are amended as
follows.
1. The authority citation for 48 CFR parts 1816, 1831 and 1852
continues to read as follows:
Authority: 42 U.S.C. 2473(c)(1).
PART 1816--TYPES OF CONTRACTS
2. Section 1816.307-70 is amended by adding paragraph (h) to read
as follows:
1816.307-70 NASA contract clauses.
* * * * *
(h) The contracting officer shall insert the clause at 1852.216-89
in solicitations and contracts in which the clause at (FAR) 48 CFR
52.216-7 is included and to which (FAR) 48 CFR part 31, subpart 31.2 is
applicable.
PART 1831--CONTRACT COST PRINCIPLES AND PROCEDURES
3. Section 1831.205-18 is added to read as follows:
1831.205-18 Independent research and development and bid and proposal
costs.
A class deviation from (FAR) 48 CFR 31.205-18(e) exists to permit
costs contributed by a contractor under a cooperative arrangement with
NASA to 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.
This deviation does not apply to costs contributed by the
contractor under cost-sharing contracts described in (FAR) 48 CFR
16.303 and 1816.303.
PART 1852--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
4. Section 1852.216-89 is added to read as follows:
1852.216-89 Allowable Cost and Payment.
As prescribed at 1816.307-70(d), insert the following clause:
Allowable Cost and Payment (April 1994)
Allowable costs shall be determined by the contracting officer
in accordance with 1831.205-18 in addition to the provisions of
(FAR) 48 CFR subpart 31.2.
(End of clause)
[FR Doc. 94-10422 Filed 4-29-94; 8:45 am]
BILLING CODE 7510-01-M
