[Federal Register Volume 60, Number 142 (Tuesday, July 25, 1995)]
[Proposed Rules]
[Pages 38196-38197]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-18160]
[[Page 38195]]
_______________________________________________________________________
Part IV
Department of Defense
General Services Administration
National Aeronautics and Space Administration
_______________________________________________________________________
48 CFR Parts 42 and 52
Federal Acquisition Regulation: Quick Contract Closeout Procedures;
Proposed Rule
Federal Register / Vol. 60, No. 142 / Tuesday, July 25, 1995 /
Proposed Rules
[[Page 38196]]
DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 42 and 52
[FAR Case 95-9]
RIN 9000-AG57
Federal Acquisition Regulation; Quick Contract Closeout
Procedures
AGENCIES: Department of Defense (DOD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: The Civilian Agency Acquisition Council and the Defense
Acquisition Regulations Council are proposing to amend the Federal
Acquisition Regulation (FAR) to ensure maximum use of the quick-
closeout procedure.
This regulatory action was not subject to Office of Management and
Budget review under Executive Order 12866, dated September 30, 1993.
DATES: Comments should be submitted on or before September 25, 1995 to
be considered in the formulation of a final rule.
ADDRESSES: Interested parties should submit written comments to:
General Services Administration, FAR Secretariat (VRS), 18th & F
Streets NW., Room 4037, Washington, DC 20405.
Please cite FAR case 95-9 in all correspondence related to this
case.
FOR FURTHER INFORMATION CONTACT: Ms. Linda Klein at (202) 501-3775 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 95-9.
SUPPLEMENTARY INFORMATION:
A. Background
In response to the recommendation of an Interagency Process Action
Team sponsored by the Air Force, this proposed rule amends FAR 42.708,
Quick-closeout procedure, the clause at 52.216-7, Allowable Cost and
Payment, and the clause at 52.216-13, Allowable Cost and Payment--
Facilities, to ease the restrictions and maximize the use of the quick-
closeout procedure. The Councils propose to (1) revise FAR 42.708(a) by
substituting the word ``shall'' for ``may''; (2) raise the threshold in
FAR 42.708(a)(2)(i) for total unsettled indirect costs allocable to any
one contract from $500,000 to $1 million; and (3) to revise FAR
42.708(a)(2)(ii) to permit the contracting officer to waive the 15
percent restriction based upon a risk assessment that considers
contractor's accounting, estimating, and purchasing systems; other
concerns of the cognizant contract auditors; and any other pertinent
information. Paragraph (f) of the clause at 52.216-7 and paragraph (e)
of the clause at 52.216-13 have also been revised to be consistent with
the revisions to 42.708 as outlined above.
B. Regulatory Flexibility Act
The 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 nearly
all contracts awarded to small business are awarded on the basis of a
firm fixed price and settlement of indirect cost rates prior to
contract closeout is therefore not an issue. 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 5 U.S.C. 601, et seq. (FAR case
95-9), 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 Parts 42 and 52
Government procurement.
Dated: July 19, 1995.
C. Allen Olson,
Director, Office of Federal Acquisition Policy.
Therefore, it is proposed that 48 CFR parts 42 and 52 be amended as
set forth below:
1. The authority citation for 48 CFR parts 42 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).
PART 42--CONTRACT ADMINISTRATION
2. Section 42.708 is amended in the introductory text of paragraph
(a) by removing ``may'' and inserting ``shall''; and by revising
paragraph (a)(2) (i) and (ii) to read as follows:
42.708 Quick-closeout procedures.
(a) * * *
(2) * * *
(1) The total unsettled indirect cost to be allocated to any one
contract does not exceed $1,000,000; and
(ii) Unless otherwise provided in agency procedures, the cumulative
unsettled indirect costs to be allocated to one or more contracts in a
single fiscal year do not exceed 15 percent of the estimated, total
unsettled indirect costs allocable to cost-type contracts for that
fiscal year. The contracting officer may waive the 15 percent
restriction based upon risk assessment that considers contractor's
accounting, estimating, and purchasing systems; other concerns of the
cognizant contract auditors; and any other pertinent information; and
* * * * *
PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
3. Section 52.216-7 is amended by revising the date in the clause
heading; by revising paragraph (f); and by removing ``(R 7-203.4(a)
1978 SEP)'' ``(R 7-203.4(b) 1979 MAR)'', ``(R 7-203.4(c)(4)(iv))'',
``(R 7-402.3 (a) and(c)(5)(iii)'', ``(R 7-605.5)'', ``(R 7-1909.4)'',
``(R 1-7.202-4)'', ``(R 1-7.203-9)'', ``(R 1-3.704-1 and -2)'', ``(R 1-
7.402-3 (a) and (b) (1) and (3))'', and ``(R 1-7.403-9)'' following
``(End of clause)'' to read as follows:
52.216-7 Allowable Cost and Payment.
* * * * *
ALLOWABLE COST AND PAYMENT (DATE)
* * * * *
(f) Quick-closeout procedures. Quick closeout procedures are
applicable when the conditions in FAR 42.708(a) are satisfied.
* * * * *
4. Section 52.216-13 is amended by revising the introductory
paragraph, the date in the clause heading, and paragraph (e); and by
removing ``(R 7-702.10 1978 AUG)'' following ``(End of clause)'' to
read as follows:
52.216-13 Allowable Cost and Payment--Facilities.
As prescribed in 16.307(g), insert the following clause:
ALLOWABLE COST AND PAYMENT--FACILITIES (DATE)
* * * * *
[[Page 38197]]
(e) Quick-closeout procedures. Quick closeout procedures are
applicable when the conditions in FAR 42.708(a) are satisfied.
* * * * *
[FR Doc. 95-18160 Filed 7-24-95; 8:45 am]
BILLING CODE 6820-EP-M
