[Federal Register: July 3, 2000 (Volume 65, Number 128)]
[Proposed Rules]               
[Page 41267-41268]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]





48 CFR Part 15

[FAR Case 2000-300]
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: Proposed rule.


SUMMARY: The Civilian Agency Acquisition Council and the Defense 
Acquisition Regulations Council (Councils) are proposing to amend 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: Interested parties should submit comments in writing on or 
before September 1, 2000, to be considered in the formulation of a 
final rule.

ADDRESSES: Submit written comments to: General Services Administration, 
FAR Secretariat (MVRS), 1800 F Street, NW, Room 4035, ATTN: Laurie 
Duarte, Washington, DC 20405. Submit electronic comments via the 
Internet to: farcase.2000-300@gsa.gov
    Please submit comments only and cite FAR case 2000-300 in all 
correspondence related to this case.

Building, Washington, DC, 20405, at (202) 501-4755 for information 
pertaining to status or publication schedules. For clarification of 
content, contact Mr. Jeremy Olson, at (202) 501-0692. Please cite FAR 
case 2000-300.


A. Background

    This proposed 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 proposed 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.
    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 Councils do not expect this proposed rule to 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. An Initial Regulatory 
Flexibility Analysis has, therefore, not been performed. We invite 
comments from small businesses and other interested parties. The 
Councils will consider comments from small entities concerning the 
affected FAR Part in accordance with 5 U.S.C. 610. Interested parties 
must submit such comments separately and should cite 5 U.S.C. 601, et 
seq. (FAR case 2000-300), in correspondence.

C. Paperwork Reduction Act

    The Paperwork Reduction Act applies; however, the proposed changes 
to the FAR do not significantly change the 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: June 26, 2000.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.
    Therefore, DoD, GSA, and NASA propose that 48 CFR part 15 be 
amended as set forth below:


    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

[[Page 41268]]

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 
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[FR Doc. 00-16523 Filed 6-30-00; 8:45 am]