[Federal Register Volume 61, Number 120 (Thursday, June 20, 1996)]
[Proposed Rules]
[Page 31796]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-14841]
[[Page 31795]]
_______________________________________________________________________
Part VIII
Department of the Defense
General Services Administration
National Aeronautics and Space Administration
_______________________________________________________________________
48 CFR Part 31
Federal Acquisition Regulation; Independent Research and Development/
Bid and Proposal in Cooperative Arrangements; Proposed Rule
Federal Register / Vol. 61, No. 120 / Thursday, June 20, 1996 /
Proposed Rules
[[Page 31796]]
DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Part 31
[FAR Case 95-024]
RIN 9000-AH03
Federal Acquisition Regulation; Independent Research and
Development/Bid and Proposal in Cooperative Arrangements
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 Department of Defense, General Services Administration,
and National Aeronautics and Space Administration are proposing to
amend Federal Acquisition Regulation (FAR) Part 31 to permit contractor
contributions of independent research and development (IR&D) costs
under NASA cooperative arrangements to be treated as allowable indirect
costs. This regulatory action was not subject to Office of Management
and Budget review under Executive Order 12866, dated September 30,
1993. This is not a major rule under 5 U.S.C. 804.
DATES: Comments should be submitted on or before August 19, 1996 to be
considered in the formulation of a final rule.
ADDRESSES: Interested parties should submit written comments to:
General Services Administration, FAR Secretariat (MVRS), 18th & F
Streets, NW, Room 4037, Washington, DC 20405.
Please cite FAR case 95-024 in all correspondence related to this
case.
FOR FURTHER INFORMATION CONTACT: Mr. Jeremy 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 FAR case 95-024.
SUPPLEMENTARY INFORMATION:
A. Background
NASA published a class deviation (interim rule) in the May 2, 1994,
Federal Register (59 FR 22521) with the final rule published in the
September 8, 1994, Federal Register (59 FR 46359). The class deviation
eliminates the prohibition at FAR 31.205-18(e) against treatment of
contractor IR&D contributions under NASA cooperative arrangements as
allowable indirect costs. This proposed FAR rule would eliminate the
need for the NASA class deviation.
B. Regulatory Flexibility Act
This 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 most
contracts awarded to small entities are awarded on a competitive fixed-
price basis, and the cost principles do not apply. The cost principles
only apply to contracts for which cost or pricing data has been
submitted. 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
of the Act. Such comments must be submitted separately and should cite
FAR case 95-024 in correspondence.
C. Paperwork Reduction Act-
The Paperwork Reduction Act (Pub. L. 96-511) does not apply because
the proposed rule does 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 Part 31
Government procurement.
Dated: June 6, 1996.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.
Therefore, it is proposed that 48 CFR Part 31 be amended as set
forth below:
PART 31--CONTRACT COST PRINCIPLES AND PROCEDURES
1. The authority citation for 48 CFR Part 31 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).
2. Section 31.205-18(e) is revised to read as follows:
31.205-18 Independent research and development and bid and proposal
costs.
* * * * *-
(e) Cooperative arrangements. IR&D costs may be incurred by
contractors working jointly with one or more non-Federal entities
pursuant to a cooperative arrangement (for example, joint ventures,
limited partnerships, teaming arrangements, and collaboration and
consortium arrangements). IR&D costs may also include costs contributed
by contractors in performing cooperative research and development
agreements, or similar arrangements, entered into under
(1) Section 12 of the Stevenson-Wydler Technology Transfer Act of
1980 (15 U.S.C. 3710(a));
(2) Sections 203(c) (5) and (6) of the National Aeronautics and
Space Act of 1958, as amended (42 U.S.C. 2473(c) (5) and (6));
(3) 10 U.S.C. 2371 for the Defense Advanced Research Projects
Agency, or
(4) Other equivalent authority. IR&D costs incurred by a contractor
pursuant to these types of cooperative arrangements should 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.
[FR Doc. 96-14841 Filed 6-19-96; 8:45 am]
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