[Federal Register: June 11, 2002 (Volume 67, Number 112)]
[Proposed Rules]               
[Page 40135-40136]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]

[[Page 40135]]


Part VII

Department of Defense

General Services Administration

National Aeronautics and Space Administration


48 CFR Part 31

Federal Acquisition Regulation; Training and Education Cost Principle; 
Amendment; Proposed Rule

[[Page 40136]]





48 CFR Part 31

[FAR Case 2001-021]
RIN 9000-AJ38

Federal Acquisition Regulation; Training and Education Cost 
Principle; Amendment

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

ACTION: Amendment of a proposed rule with request for comments.


SUMMARY: The Civilian Agency Acquisition Council and the Defense 
Acquisition Regulations Council (Councils) are correcting an error in 
the supplementary information of the proposed rule published in the 
Federal Register on May 15, 2002, at 67 FR 34810. That proposed rule 
would amend the Federal Acquisition Regulation (FAR) ``Training and 
Education Costs'' cost principle.

DATES: Interested parties should submit comments on the proposed rule 
in writing on or before July 15, 2002, to be considered in the 
formulation of a final rule.

ADDRESSES: Submit written comments to: General Services Administration, 
FAR Secretariat (MVP), 1800 F Street, NW, Room 4035, ATTN: Laurie 
Duarte, Washington, DC 20405.
    Submit electronic comments via the Internet to: farcase.2001-
    Please submit comments only and cite FAR case 2001-021 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) 501-3221. Please cite FAR 
case 2001-021.

SUPPLEMENTARY INFORMATION: On May 15, 2002, the Councils published a 
proposed amendment to the Federal Acquisition Regulation (FAR) 
``Training and Education Costs'' cost principle, set forth at FAR 
31.205-44. The ``Background'' discussion of the SUPPLEMENTARY 
INFORMATION section of the Federal Register notice published with the 
proposed rule mistakenly stated that the proposed amendments would 
eliminate the job relationship requirement from this cost principle 
(see 67 FR 34810). Although the Councils considered eliminating this 
requirement from the cost principle, this change was not adopted. The 
current policy which requires a relationship between the education and 
work is retained in the proposed amendments.
    Accordingly, the Background discussion in the preamble of the 
Federal Register notice published on May 15, 2002, is corrected to read 
as follows:

A. Background

    Currently, FAR 31.205-44, Training and education costs, is somewhat 
restrictive in that the cost principle differentiates between vocation 
training, part-time college level education, full-time education, and 
specialized programs with numerous specific limitations on the 
allowability of costs associated with each of these categories. 
Historically, most of these specific allowability limitations were 
intended to reflect industry practices, e.g., the 156 hours per year 
limit on compensation for part-time college level education, the 2-year 
limitation on full-time graduate education, and the 16 weeks per year 
limit for specialized programs.
    The proposed rule makes the costs associated with training and 
education generally allowable, subject to five public policy exceptions 
that are retained from the current cost principle. Except for these 
five expressly unallowable cost exceptions, the reasonableness of 
specific contractor training and education costs can best be assessed 
by reference to FAR 31.201-3, Determining reasonableness.

    Dated: June 6, 2002.
Al Matera,
Director, Acquisition Policy Division.
[FR Doc. 02-14644 Filed 6-10-02; 8:45 am]