98-7710. Defense Federal Acquisition Regulation Supplement; Limitation on Allowability of Compensation for Certain Contractor Personnel

[Federal Register Volume 63, Number 58 (Thursday, March 26, 1998)]
[Rules and Regulations]
[Pages 14640-14641]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-7710]


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DEPARTMENT OF DEFENSE

48 CFR Part 231

[DFARS Case 97-D320]


Defense Federal Acquisition Regulation Supplement; Limitation on 
Allowability of Compensation for Certain Contractor Personnel

AGENCY: Department of Defense (DoD).

ACTION: Final rule.

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SUMMARY: The Director of Defense Procurement has issued a final rule

[[Page 14641]]

amending the Defense Federal Acquisition Regulation Supplement (DFARS) 
to remove certain limitations on individual compensation costs for 
contractor personnel, as a result of changes made to the Federal 
Acquisition Regulation in Federal Acquisition Circular 97-04 on 
February 23, 1998.

EFFECTIVE DATE: March 26, 1998.

FOR FURTHER INFORMATION CONTACT:
Ms. Sandra G. Haberlin, PDUSD (A&T) DP (DAR), IMD 3D139, 3062 Defense 
Pentagon, Washington, DC 20301-3062. Telephone [phone]; telefax 
[phone]. Please cite DFARS Case 97-D320.

SUPPLEMENTARY INFORMATION: 

A. Background

    This final rule amends DFARS Part 231 to remove certain limitations 
on individual compensation costs for contractor personnel. Section 
31.205-6, paragraph (p), of the Federal Acquisition Regulation, as 
amended by Item XIII of Federal Acquisition Circular 97-04 (63 FR 9066, 
February 23, 1998), contains the sole statutory limitation on allowable 
senior executive compensation costs incurred after January 1, 1998, 
under new or previously existing contracts.

B. Regulatory Flexibility Act

    The final rule does not constitute a significant revision within 
the meaning of FAR 1.501 and Pub. L. 98-577, and publication for public 
comment is not required. However, comments from small entities 
concerning the affected DFARS subparts will be considered in accordance 
with 5 U.S.C. 610. Such comments should cite DFARS Case 97-D320 in 
correspondence.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the final rule 
does not impose any information collection requirements that require 
Office of Management and Budget approval under 44 U.S.C. 3501, et seq.

List of Subjects in 48 CFR Part 231

    Government procurement.
Michele P. Peterson,
Executive Editor, Defense Acquisition Regulations Council.

    Therefore, 48 CFR Part 231 is amended as follows:
    1. The authority citation for 48 CFR Part 231 continues to read as 
follows:

    Authority: 41 U.S.C. 421 and 48 CFR Chapter 1.

PART 231--CONTRACT COST PRINCIPLES AND PROCEDURES


231.205-6   [Amended]

    2. Section 231.205-6 is amended by removing paragraphs (a)(2)(i)(A) 
through (a)(2)(ii)(B).


231.303   [Amended]

    3. Section 231.303 is amended by removing paragraph (3), and by 
redesignating paragraph (4) as paragraph (3).


231.603   [Amended]

    4. Section 231.603 is amended by removing paragraph (1), and by 
removing the paragraph (2) designation.


231.703   [Amended]

    5. Section 231.703 is amended by removing paragraph (1), and by 
removing the paragraph (2) designation.

[FR Doc. 98-7710 Filed 3-25-98; 8:45 am]
BILLING CODE 5000-04-M