[Federal Register Volume 62, Number 163 (Friday, August 22, 1997)]
[Rules and Regulations]
[Pages 44830-44831]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-22075]
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Part 43
[FAC 97-01; FAR Case 96-606; Item XVIII]
RIN 9000-AH44
Federal Acquisition Regulation; Modification of Existing
Contracts Under FASA and FARA
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 adopt as final, the
interim rule published as Item VIII of Federal Acquisition Circular 90-
44 on December 31, 1996. The rule amends the Federal Acquisition
Regulation (FAR) to implement subsection 10002(e) of the Federal
Acquisition Streamlining Act of 1994 and subsections 4402 (d) and (e)
of the Clinger-Cohen Act of 1996. The rule authorizes, but does not
require, contracting officers, if requested by the contractor, to
modify existing
[[Page 44831]]
contracts without requiring consideration to incorporate changes
authorized by the Acts. 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 Mr. Ralph De Stefano, Procurement Analyst, at (202)
501-1758. Please cite FAC 97-01, FAR case 96-606.
SUPPLEMENTARY INFORMATION:
A. Background
Subsection 10002(e) of the Federal Acquisition Streamlining Act of
1994 (Public Law 103-355) (FASA) and subsection 4402(d) of the Clinger-
Cohen Act of 1996 (Public Law 104-106) (Clinger-Cohen) allow
regulations implementing the Acts to provide for modification of an
existing contract without consideration upon the request of the
contractor. Subsection 10002(e) of FASA and subsection 4402(e) of
Clinger-Cohen provide that, except as specifically provided in these
Acts, nothing in the Acts shall be construed to require the
renegotiation or modification of contracts in existence on the date of
the enactment of the Acts. The rule adopts the policy of encouraging,
but not requiring, appropriate modifications without consideration,
upon the request of the contractor. If the contracting officer
determines that modification of an existing contract is appropriate to
incorporate changes authorized by these Acts, the modification should
insert the current version of the applicable FAR clauses into the
contract.
No comments were received in response to the FASA interim rule
published in the Federal Register at 61 FR 18915, April 29, 1996, and
the Clinger-Cohen interim rule published in the Federal Register at 61
FR 69297, December 31, 1996.
B. Regulatory Flexibility Act
The final rule may 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 it enables
industry and the Government to gain significant benefits, including the
potential reduction of contract costs, by authorizing the incorporation
into existing contracts any of the Federal Acquisition Streamlining Act
and/or Clinger-Cohen Act changes that will benefit the contracting
parties. A Final Regulatory Flexibility Analysis (FRFA) has been
prepared and will be provided to the Chief Counsel for Advocacy of the
Small Business Administration. A copy of the FRFA may be obtained from
the FAR Secretariat. The FRFA is summarized as follows:
There were no public comments received in response to the
Initial Regulatory Flexibility Analysis. The rule will apply to all
large and small entities that currently have a Government contract.
Most likely, contractors will not request modification of contracts
under $25,000, because the usually short period of performance under
these contracts will discourage modification. The number of active
contracts over $25,000 held by small entities at any point in time
or the total in any one fiscal year is not readily available from
the Federal Procurement Report, Fiscal Year 1996 through Fourth
Quarter. However, in fiscal year 1996, small entities were awarded
approximately 37,192 contracts over $25,000. The number of contract
modifications requested by small entities to incorporate Federal
Acquisition Streamlining Act and/or the Clinger-Cohen Act changes
depends on whether they determine that modifications to their
specific contracts will be advantageous. The rule imposes no new
reporting, recordkeeping, or other compliance requirements. This
rule is the only practical alternative to implement subsection
10002(e) of the Federal Acquisition Streamlining Act and subsections
4402 (d) and (e) of the Clinger-Cohen Act.
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 43
Government procurement.
Interim Rule Adopted as Final Without Change
Accordingly, the interim rule amending 48 CFR Part 43, which was
published at 61 FR 69297, December 31, 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 14, 1997.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.
[FR Doc. 97-22075 Filed 8-21-97; 8:45 am]
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