[Federal Register: October 11, 2000 (Volume 65, Number 197)]
[Rules and Regulations]               
[Page 60553]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]

[[Page 60553]]





48 CFR Part 15

[FAC 97-20; FAR Case 2000-300; Item II]
RIN 9000-AI83

Federal Acquisition Regulation; Truth in Negotiations Act 

AGENCIES: Department of Defense (DoD), General Services Administration 
(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Final rule.


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 implement the 
requirements of 10 U.S.C. 2306a(a)(7) and 41 U.S.C. 254b(a)(7). These 
statutes require review of the Truth in Negotiations Act threshold 
every 5 years, starting October 1, 1995.

DATES: Effective Date: October 11, 2000.

Building, Washington, DC, 20405, (202) 501-4755, for information 
pertaining to status or publication schedules. For clarification of 
content, contact Mr. Jeremy Olson at (202) 501-3221. Please cite FAC 
97-20, FAR case 2000-300.


A. Background

    This final rule amends FAR 15.403-4 to implement the requirements 
of 10 U.S.C. 2306a(a)(7) and 41 U.S.C. 254b(a)(7). These statutes 
require review of the Truth in Negotiations Act threshold every 5 
years, starting October 1, 1995. The increase of $50,000 is based on 
escalation of 10.22 percent from 1994 to 2000, calculated using the 
gross domestic product deflators from the fiscal year 2001 budget.
    DoD, GSA, and NASA published a proposed rule in the Federal 
Register at 65 FR 41267, July 3, 2000. Two respondents submitted public 
comments. The Councils considered all public comments in formulation of 
the final rule. This final rule is the same as the proposed rule.
    This is not a significant regulatory action, and therefore, was not 
subject to 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 most contracts and 
subcontracts with small entities do not require the submission of cost 
or pricing data.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the changes do 
not significantly change the existing information collection 
requirements that have been approved by the Office of Management and 
Budget under 44 U.S.C. 3501, et seq., under OMB Clearance Number 9000-

List of Subjects in 48 CFR Part 15

    Government procurement.

    Dated: October 3, 2000.
Al Matera,
Acting Director, Federal Acquisition Policy Division.

    Therefore, DoD, GSA, and NASA amend 48 CFR part 15 as set forth 


    1. The authority citation for 48 CFR part 15 continues to read as 

    Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42 
U.S.C. 2473(c).

    2. Amend section 15.403-4 by revising paragraph (a)(1) to read as 

15.403-4  Requiring cost or pricing data (10 U.S.C. 2306a and 41 U.S.C. 

    (a)(1) The contracting officer must obtain cost or pricing data 
only if the contracting officer concludes that none of the exceptions 
in 15.403-1(b) applies. However, if the contracting officer has 
sufficient information available to determine price reasonableness, 
then the contracting officer should consider requesting a waiver under 
the exception at 15.403-1(b)(4). The threshold for obtaining cost or 
pricing data is $550,000. Unless an exception applies, cost or pricing 
data are required before accomplishing any of the following actions 
expected to exceed the current threshold or, for existing contracts, 
the threshold specified in the contract:
    (i) The award of any negotiated contract (except for undefinitized 
actions such as letter contracts).
    (ii) The award of a subcontract at any tier, if the contractor and 
each higher-tier subcontractor were required to submit cost or pricing 
data (but see waivers at 15.403-1(c)(4)).
    (iii) The modification of any sealed bid or negotiated contract 
(whether or not cost or pricing data were initially required) or any 
subcontract covered by paragraph (a)(1)(ii) of this subsection. Price 
adjustment amounts must consider both increases and decreases (e.g., a 
$200,000 modification resulting from a reduction of $400,000 and an 
increase of $200,000 is a pricing adjustment exceeding $550,000). This 
requirement does not apply when unrelated and separately priced changes 
for which cost or pricing data would not otherwise be required are 
included for administrative convenience in the same modification. 
Negotiated final pricing actions (such as termination settlements and 
total final price agreements for fixed-price incentive and 
redeterminable contracts) are contract modifications requiring cost or 
pricing data if--
    (A) The total final price agreement for such settlements or 
agreements exceeds the pertinent threshold set forth at paragraph 
(a)(1) of this subsection; or (B) The partial termination settlement 
plus the estimate to complete the continued portion of the contract 
exceeds the pertinent threshold set forth at paragraph (a)(1) of this 
subsection (see 49.105(c)(15)).
* * * * *
[FR Doc. 00-25875 Filed 10-10-00; 8:45 am]