[Federal Register Volume 61, Number 120 (Thursday, June 20, 1996)]
[Rules and Regulations]
[Page 31658]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-14537]
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DEPARTMENT OF DEFENSE
48 CFR Parts 32 and 52
[FAC 90-39; FAR Case 92-046; Item XXII]
RIN 9000-AF41
Federal Acquisition Regulation; Prompt Payment Overseas
AGENCIES: Department of Defense (DOD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Interim rule adopted as final.
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SUMMARY: The Civilian Agency Acquisition Council and the Defense
Acquisition Regulations Council have agreed to convert the interim rule
published in the Federal Register at 59 FR 11379, March 10, 1994, and
amended by FAR case 94-770 (60 FR 34741, July 3, 1995), to a final
rule. This rule amends the Federal Acquisition Regulation (FAR) to
reflect that the Prompt Payment Act applies to overseas contracts. This
regulatory action was not subject to Office of Management and Budget
review under Executive Order 12866, dated September 30, 1993, and is
not a major rule under 5 U.S.C. 804.
EFFECTIVE DATE: June 20, 1996.
FOR FURTHER INFORMATION CONTACT: Mr. Jeremy F. Olson at (202) 501-3221
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 90-39, FAR case 92-046.
SUPPLEMENTARY INFORMATION:
A. Background
On January 13, 1992, the Armed Services Board of Contract Appeals
(ASBCA), in Held & Francke Baukittengesellschaft (ASBCA Nos. 42463 and
42464), held that FAR 32.901 improperly excluded applicability of the
Prompt Payment Act (31 U.S.C. 3901, et seq.) to contracts awarded to
foreign contractors for work performed outside the United States. As a
result of the ASBCA decision, an interim rule was issued which, in
effect, makes the Government liable for payment of interest and
interest penalties under the Act for contracts with foreign contractors
for work performed or supplies delivered overseas.
Section 32.901 and the clauses at 52.232-25, 52.232-26, and 52.232-
27 were amended by the interim rule to remove the statements that no
interest penalty will be paid on contracts awarded to foreign vendors
outside the United States for work performed outside the United States
and to remove the definition of ``foreign vendor'' from the clauses.
That interim rule, as amended on July 3, 1995, is now converted to a
final rule without further change.
B. Regulatory Flexibility Act
The Department of Defense, the General Services Administration, and
the National Aeronautics and Space Administration certify that this
final rule will not 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 only applies
to contracts with foreign contractors for work performed overseas by
extending the Government's liability to pay interest and penalties
under the Prompt Payment Act to such entities. No comments were
received on the impact of this rule on small entities during the public
comment period.
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.
List of Subjects in 48 CFR Parts 32 and 52
Government procurement.
Interim Rule Adopted as Final Without Change
Accordingly, the interim rule amending CFR Parts 32 and 52, which
was published at 59 FR 11379, March 10, 1994 (FAC 90-20, Item XIII),
and further amended by FAR case 94-770 (60 FR 34741, July 3, 1995), is
adopted as a final rule without further change.
The authority citation for 48 CFR Parts 32 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).
Dated: June 4, 1996.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.
[FR Doc. 96-14537 Filed 6-19-96; 8:45 am]
BILLING CODE 6820-EP-P
