[Federal Register Volume 64, Number 185 (Friday, September 24, 1999)]
[Rules and Regulations]
[Pages 51841-51842]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-24417]
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 15 and 37
[FAC 97-14; FAR Case 97-038; Item VIII]
RIN 9000-AI07
Federal Acquisition Regulation; Evaluation of Proposals for
Professional Services
AGENCIES: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Final rule.
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SUMMARY: The Civilian Agency Acquisition Council and the Defense
Acquisition Regulations Council (Councils) have agreed on a final rule
amending the Federal Acquisition Regulation (FAR) to provide guidance
on the evaluation of proposals that include uncompensated overtime
hours.
EFFECTIVE DATE: November 23, 1999.
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. Jeremy F. Olson, Procurement Analyst, at (202)
501-3221. Please cite FAC 97-14, FAR case 97-038.
SUPPLEMENTARY INFORMATION:
A. Background
A final rule published as Item VII of Federal Acquisition Circular
(FAC) 97-01 in the Federal Register on August 22, 1997 (62 FR 44813)
elevated guidance regarding uncompensated overtime from the Defense
Federal Acquisition Regulation Supplement (DFARS) Part
[[Page 51842]]
237 to FAR Part 37, and elevated a DFARS solicitation provision to FAR
52.237-10, Identification of Uncompensated Overtime. However, the FAR
rule in FAC 97-01 did not address the evaluation of proposals that
include uncompensated overtime.
Therefore, a proposed FAR rule was published in the Federal
Register on August 24, 1998 (63 FR 45112), to add guidance at FAR
15.305(a)(1) and FAR 37.115-2(c) on the evaluation of proposed
uncompensated overtime hours. One respondent submitted comments in
response to the proposed rule. The Councils considered the respondent's
comments in the development of the final rule and converted the
proposed rule to a final rule without change.
This rule was not subject to Office of Management and Budget review
under Section 6(b) of Executive Order 12866, Regulatory Planning and
Review, dated September 30, 1993. This rule is not a major rule under 5
U.S.C. 804.
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 the guidance added to
FAR Parts 15 and 37 is consistent with the existing policy pertaining
to uncompensated overtime at FAR 37.115 and 52.237-10.
C. Paperwork Reduction Act
The Paperwork Reduction Act does not apply because the changes to
the FAR do not impose information collection requirements that 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 15 and 37
Government procurement.
Dated: September 14, 1999.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.
Therefore, DoD, GSA, and NASA amend 48 CFR Parts 15 and 37 as set
forth below:
1. The authority citation for 48 CFR Parts 15 and 37 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 15--CONTRACTING BY NEGOTIATION
2. In section 15.305, amend paragraph (a)(1) by adding a
parenthetical as the penultimate sentence to read as follows:
15.305 Proposal evaluation.
(a) * * *
(1) * * * (See 37.115 for uncompensated overtime evaluation.) * * *
* * * * *
PART 37--SERVICE CONTRACTING
3. In section 37.115-2, add paragraph (c) to read as follows:
37.115-2 General policy.
* * * * *
(c) Contracting officers must ensure that the use of uncompensated
overtime in contracts to acquire services on the basis of the number of
hours provided will not degrade the level of technical expertise
required to fulfill the Government's requirements (see 15.305 for
competitive negotiations and 15.404-1(d) for cost realism analysis).
When acquiring these services, contracting officers must conduct a risk
assessment and evaluate, for award on that basis, any proposals
received that reflect factors such as:
(1) Unrealistically low labor rates or other costs that may result
in quality or service shortfalls; and
(2) Unbalanced distribution of uncompensated overtime among skill
levels and its use in key technical positions.
[FR Doc. 99-24417 Filed 9-23-99; 8:45 am]
BILLING CODE 6820-EP-P
