[Federal Register Volume 60, Number 117 (Monday, June 19, 1995)]
[Proposed Rules]
[Pages 31935-31936]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-14832]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 4, 12, 14, 15, 16, 31, 33, 36, 45, 46, 49, 52, and 53
[FAR Case 94-721]
RIN 9000-AG30
Federal Acquisition Regulation; Truth in Negotiations Act and
Related Changes
AGENCIES: Department of Defense (DOD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
[[Page 31936]] ACTION: Extension of comment period and notice of public
meeting.
-----------------------------------------------------------------------
SUMMARY: This public notice is issued to familiarize the public with
the status of the rulemaking effort on FAR Case 94-721, Truth in
Negotiations Act and Related Changes (TINA), which implements the
Federal Acquisition Streamlining Act of 1994 (FASA), to extend the
period for public comment, and to provide notice of a public meeting.
The TINA drafting team has made some refinements to the proposed rule
that was published in the January 6, 1995, Federal Register. The
revised coverage has been mailed to the public commenters on FAR Case
94-721 and copies may be obtained by other interested parties.
DATES: Comment Date: Comments should be submitted to the FAR
Secretariat at the address shown below on or before July 19, 1995.
Meeting Date: The meeting will be held at 2:00 p.m. on July 7,
1995.
ADDRESSES: A copy of the revised coverage may be obtained by calling
the FAR Secretariat at 202-501-4755. Interested parties should submit
written comments to: General Services Administration, FAR Secretariat
(VRS), 18th & F Streets, NW, Room 4037, Washington, DC 20405.
The public meeting will be held at: General Services
Administration, National Capital Region Auditorium, 7th & D Streets,
SW, Washington, DC 20407. Please cite FAR case 94-721 in all
correspondence related to this case.
FOR FURTHER INFORMATION CONTACT:
Mr. Al Winston, Truth in Negotiations Act (TINA) Team Leader, at (703)
602-2119 in reference to this FAR case. For general information,
contact the FAR Secretariat, Room 4037, GSA Building, Washington, DC
20405 (202) 501-4755. Please cite FAR case 94-721.
SUPPLEMENTARY INFORMATION:
A. Background
On January 6, 1995, a proposed rule was published in the Federal
Register (60 FR 2282). The proposed rule afforded the public a 60 day
comment period. During that time, 40 organizations submitted more than
213 comments. A public meeting was also held on this rule on February
13, 1995. Based upon comments received, the TINA drafting team refined
the coverage. Accordingly, a copy of revised coverage has been mailed
to previous public commenters on FAR Case 94-721. The purpose of this
notice is to advise the public generally of the availability of the
revised coverage and enable other interested parties to obtain a copy
by contacting the FAR Secretariat.
B. Case Summary
FAR case 94-721 implements Sections 1201 through 1210 and Sections
1251 and 1252 of FASA. Highlights include making TINA requirements for
civilian agencies substantially the same as those for the Department of
Defense (increasing the threshold for submission of ``cost or pricing
data'' to $500,000 and adding penalties for defective pricing).
Provisions are also included that increase the threshold for cost or
pricing data submission every 5 years beginning October 1, 1995. New
exceptions are added to the requirement for the submission of ``cost or
pricing data'' for commercial items; approval levels for waivers are
changed, and prohibitions are placed on acquiring ``cost or pricing
data'' when an exception applies. The coverage includes a clear
explanation of adequate price competition as required by the Act.
Also, FAR coverage has been included that addresses (1)
``information other than cost or pricing data'', (2) exemptions based
on established catalog or market price, (3) inter-divisional transfers
of commercial items at price, and (4) price competition when only one
offer has been received.
The FAR language primarily modifies FAR Part 15, together with
associated Part 52 clauses and Part 53 forms. However, some coverage
addresses contract clauses where threshold changes are made in Part 14
pertaining to sealed bid contracting, and in Part 31 where the cost
principle on material costs has been amended to address inter-
divisional transfers of commercial items at price. Additional
miscellaneous changes in Parts 4, 12, 15, 16, 31, 33, 36, 45, 46, 49,
and 53 have also been included.
When a final rule is promulgated, it will also supersede the
earlier FAR case 94-720 that was previously published as an interim
rule in Federal Acquisition Circular (FAC) 90-22. FAR case 94-720
provided for an immediate increase of the threshold for ``cost or
pricing data'' submission by contractors to civilian agencies to
$500,000. FAC 90-22 (FAR case 94-720) also removed the certification
requirement of commercial pricing for parts or components for
contractors doing business with civilian agencies.
C. Summary of Changes
The following are highlights of changes that have been made to the
proposed rule as a result of the written comments received during the
comment period and other issues that were raised at the public hearing
held on 13 February 1995:
The coverage has been edited to improve readability.
The hierarchical policy at FAR 15.802 has been clarified
to ensure that it is consistent with TINA and FASA.
Regulatory guidance implementing the catalog or market
price exception to TINA has incorporated more flexible procedures (See
FAR 52.215-41).
--The Standard Form (SF) 1412 is eliminated.
--Relational tests have been eliminated.
--Disclosure of lowest prices is no longer mandated.
--TINA-based postaward audit access is no longer required.
--Expanded guidance is provided on what constitutes substantial sales.
--Requirement for offerors to account for ``end users'' when addressing
sales to the general public has been eliminated.
--Reference to GSA certifications for granting a prior exemption under
FAR 15.804-1(c)(1)(ii)(B) is removed.
Flexibility in requesting an exception to TINA is improved
via a generic provision at FAR 52.215-41 that provides broad guidelines
on the type of data that would be needed to qualify for a TINA
exception.
A ``Commercial Item'' definition cross-reference is given.
A definition of ``cost realism'' has been added.
Additional data requirements have been removed for
qualification under the commercial item exception created by FASA
(rebates, credits, warranties, and sales to resellers).
Expanded guidance is provided on effective dates for
certification of cost or pricing data.
E. Presentations at the Public Meeting
To allow the public to present its views on the refinements to this
proposed rule, a public meeting will be held at the GSA National
Capital Region Auditorium on July 7, 1995. Persons or organizations
wishing to make presentations will be allowed 10 minutes to present
their views, provided they notify the FAR Secretariat at (202) 501-4745
and provide an advance copy of their remarks not later than July 5,
1995.
Dated: June 13, 1995.
Edward C. Loeb,
Deputy Project Manager for the Implementation of the Federal
Acquisition Streamlining Act.
[FR Doc. 95-14832 Filed 6-16-95; 8:45 am]
BILLING CODE 6820-JC-M
