[Federal Register Volume 61, Number 121 (Friday, June 21, 1996)]
[Proposed Rules]
[Page 32312]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-14813]
[[Page 32311]]
_______________________________________________________________________
Part X
Department of Defense
General Services Administration
National Aeronautics and Space Administration
_______________________________________________________________________
48 CFR Part 12
Inapplicability of Cost Accounting Standards to Contracts and
Subcontracts for Commercial Items; Proposed Rule
Federal Register / Vol. 61, No. 121 / Friday, June 21, 1996 /
Proposed Rules
[[Page 32312]]
DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Part 12
[FAR Case 96-310]
RIN 9000-AH01
Federal Acquisition Regulation; Inapplicability of Cost
Accounting Standards to Contracts and Subcontracts for Commercial Items
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 Civilian Agency Acquisition Council and the Defense
Acquisition Regulations Council are proposing to amend the Federal
Acquisition Regulation (FAR) Part 12 to implement Section 4205 of the
fiscal year (FY) 96 National Defense Authorization Act. Section 4205
amends Section 26(f) of the Office of Federal Procurement Policy (OFPP)
Act (41 U.S.C. 422(f)) by exempting contracts and subcontracts for
commercial items from the application of Cost Accounting Standards
(CAS) promulgated under 41 U.S.C. 422. 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 20, 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 96-310 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 96-
310.
SUPPLEMENTARY INFORMATION:
A. Background
This proposed rule amends FAR part 12 to implement Section 4205 of
the FY96 National Defense Authorization Act (Pub. L. 104-106). Section
4205 amends Section 26(f) of the OFPP Act (41 U.S.C. 422(f)), making
the application of CAS to commercial items ``nonmandatory.'' CAS
requirements can still be invoked as a matter of policy by the CAS
Board, pursuant to the authority provided in 41 U.S.C. 422. Any such
guidance would be placed in 48 CFR Chapter 99. Therefore, the new
coverage at FAR 12.214 indicates that CAS generally will not apply to
commercial items unless so indicated at 48 CFR 9903.201. A cross-
reference to FAR 12.214 is added at 12.503(c) and 12.504(c), to further
clarify the effect of Section 4205.
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
contracts and subcontracts with small businesses are exempt from CAS.
An initial regulatory flexibility analysis has therefore not been
performed. Comments are invited from small businesses and other
interested parties. Comments from small entities concerning the
affected FAR subparts will be considered in accordance with Section 610
of the Act. Such comments must be submitted separately and should cite
5 U.S.C. 601, et seq. (FAR case 96-310), in correspondence.
C. Paperwork Reduction Act
The Paperwork Reduction Act does not apply because the proposed
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 Part 12
Government procurement.
Dated: June 6, 1996.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.
Therefore, it is proposed that 48 CFR Part 12 be amended as set
forth below:
PART 12--ACQUISITION OF COMMERCIAL ITEMS
1. The authority citation for 48 CFR Part 12 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 12.214 is added to read as follows:
12.214 Cost Accounting Standards (CAS).
CAS generally will not apply to commercial items. If CAS does apply
pursuant to 48 CFR 9903.201 (appendix B, FAR loose-leaf edition), the
contracting officer shall insert the appropriate provisions and clauses
as prescribed in that section.
3. Section 12.503(c)(3) is revised to read as follows:
12.503 Applicability of certain laws to Executive agency contracts for
the acquisition of commercial items.
* * * * *
(c) * * *
(3) 41 U.S.C. 422, Cost Accounting Standards (48 CFR chapter 99)
(see 12.214).
* * * * *
4. Section 12.504(c)(3) is revised to read as follows:
12.504 Applicability of certain laws to subcontracts for the
acquisition of commercial items.
* * * * *
(c) * * *
(3) 41 U.S.C. 422, Cost Accounting Standards (48 CFR chapter 99)
(see 12.214).
[FR Doc. 96-14813 Filed 6-20-96; 8:45 am]
BILLING CODE 6820-EP-M
