[Federal Register Volume 59, Number 179 (Friday, September 16, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-23027]
[[Page Unknown]]
[Federal Register: September 16, 1994]
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DEPARTMENT OF DEFENSE
48 CFR Part 31
[FAR Case 93-20]
Federal Acquisition Regulation; Records Retention
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 changes to the Federal
Acquisition Regulation (FAR) to explicitly state that contractors must
maintain adequate cost records in order to be reimbursed for all
claimed costs. This regulatory action was subject to Office of
Management and Budget (OMB) review pursuant to Executive Order 12866
dated September 30, 1993.
DATES: Comments should be submitted on or before November 15, 1994 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 93-
20 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 93-
20.
SUPPLEMENTARY INFORMATION:
A. Background
The guidance for determining cost allowability at FAR 31.201-2
currently does not explicitly state that contractors must maintain
adequate cost records in order to be reimbursed for all claimed costs
nor does it specifically state that the contracting officer has the
authority to disallow costs which are determined to be inadequately
supported. This requirement and authority have, heretofore, been
considered to be implicit in the cost principles. However, the Councils
are proposing that the FAR explicitly address these issues because the
Office of Federal Procurement Policy SWAT Team on Civilian Agency
Contracting in its report of December 3, 1992, ``Improving Contracting
Practices and Management Controls on Cost-Type Federal Contracts,''
found that agencies are having difficulty because the FAR is silent on
these issues. A new paragraph (d) is proposed for FAR 31.201-2 to
explicitly state that costs claimed for reimbursement must be
adequately supported and that the contracting officer may disallow
costs which are inadequately supported.
B. Regulatory Flexibility Act
This proposed rule clarifies a condition of cost allowability for
contractors who wish to be reimbursed under Government contracts
subject to FAR 31.2. The Regulatory Flexibility Act, 5 U.S.C. 601, et
seq., applies but the rule is not expected to have a significant
economic impact on a substantial number of small entities because most
contracts awarded to small entities are awarded on a competitive,
fixed-price basis and the cost principles do not apply. 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 93-20), 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 31
Government procurement.
Dated: September 13, 1994.
Albert A. Vicchiolla,
Director, Office of Federal Acquisition Policy.
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 31.201-2 is amended by adding paragraph (d) to read as
follows:
31.201-2 Determining allowability.
* * * * *
(d) A contractor is responsible for accounting for costs
appropriately and for maintaining records, including supporting
documentation, adequate to demonstrate that costs claimed have been
incurred, are allocable to the contract, and comply with applicable
cost principles in this subpart and agency supplements. The contracting
officer may disallow all or part of a claimed cost which is
inadequately supported.
[FR Doc. 94-23027 Filed 9-15-94; 8:45 am]
BILLING CODE 6820-34-M
