[Federal Register Volume 62, Number 163 (Friday, August 22, 1997)]
[Rules and Regulations]
[Pages 44828-44829]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-21500]
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Part 31
[FAC 97-01; FAR Case 96-003; Item XV]
RIN 9000-AH35
Federal Acquisition Regulation; Local Government Lobbying Costs
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 as Item XI of Federal Acquisition Circular 90-43 on December
20, 1996, to a final rule without change. The rule amends the Federal
Acquisition Regulation (FAR) to make allowable the costs of any
lobbying activities to influence local legislation in order to directly
reduce contract cost, or to avoid material impairment of the
contractor's authority to perform the contract. 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.
DATES: Effective October 21, 1997.
FOR FURTHER INFORMATION CONTACT: The FAR Secretariat, Room 4035, GS
Building, Washington, DC 20405 (202) 501-4755 for information
pertaining to status or publication schedules. For clarification of
content, contact Ms.
[[Page 44829]]
Linda Nelson, Procurement Analyst, at (202) 501-1900. Please cite FAC
97-01, FAR case 96-003.
SUPPLEMENTARY INFORMATION:
A. Background
An interim rule was published on December 20, 1996 (61 FR 67424).
The interim rule revised the cost principle at FAR 31.205-22, Lobbying
and political activity costs, to provide an additional exemption from
the provisions which make lobbying costs unallowable. This exemption
makes allowable the costs of any lobbying activities to influence local
legislation in order to directly reduce contract cost, or to avoid
material impairment of the contractor's authority to perform the
contract. The interim rule is converted to a final rule without change.
Public comments were received from one source. The comments were
considered in developing the final rule.
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 most contracts awarded
to small entities use simplified acquisition procedures or are awarded
on a competitive fixed-price basis, and do not require application of
the cost principle contained in this rule.
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 Part 31
Government procurement.
Interim Rule Adopted as Final Without Change
Accordingly, the interim rule amending 48 CFR Part 31, which was
published at 61 FR 67424, December 20, 1996, is hereby adopted as final
without change.
Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42
U.S.C. 2473(c).
Dated: August 7, 1997.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.
[FR Doc. 97-21500 Filed 8-21-97; 8:45 am]
BILLING CODE 6820-EP-U
