[Federal Register: June 16, 2010 (Volume 75, Number 115)]
[Rules and Regulations]               
[Page 34285-34286]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]





48 CFR Part 31

[FAC 2005-42; FAR Case 2009-026; Item X; Docket 2010-0088, Sequence 1]
RIN 9000-AL54

Federal Acquisition Regulation; FAR Case 2009-026, Compensation 
for Personal Services

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

ACTION: Interim rule with request for comments.


SUMMARY: The Civilian Agency Acquisition Council and the Defense 
Acquisition Regulations Council (Councils) are issuing an interim rule 
amending the FAR to align the FAR with the revised Cost Accounting 
Standards (CAS) Board standards 412, ``Cost Accounting Standard for 
composition and measurement of pension cost;'' and 415, ``Accounting 
for the cost of deferred compensation.''

DATES: Effective Date: June 16, 2010.
    Comment Date: Interested parties should submit written comments to 
the Regulatory Secretariat on or before August 16, 2010 to be 
considered in the formulation of a final rule.

ADDRESSES: Submit comments identified by FAC 2005-42, FAR Case 2009-
026, by any of the following methods:
     Regulations.gov: http://www.regulations.gov.Submit 
comments via the Federal eRulemaking portal by inputting ``FAR Case 
2009-026'' under the heading ``Enter Keyword or ID'' and selecting 
``Search''. Select the link ``Submit a Comment'' that corresponds with 
``FAR Case 2009-026''. Follow the instructions provided at the ``Submit 
a Comment'' screen. Please include your name, company name (if any), 
and ``FAR Case 2009-026'' on your attached document.
     Fax: 202-501-4067.
     Mail: General Services Administration, Regulatory 
Secretariat (MVCB), 1800 F Street, NW., Room 4041, ATTN: Hada Flowers, 
Washington, DC 20405.
    Instructions: Please submit comments only and cite FAC 2005-42, FAR 
Case 2009-026, in all correspondence related to this case. All comments 
received will be posted without change to http://www.regulations.gov, 
including any personal and/or business confidential information 

FOR FURTHER INFORMATION CONTACT: For clarification of content, contact 
Mr. Edward N. Chambers, Procurement Analyst, at (202) 501-3221. For 
information pertaining to status or publication schedules, contact the 
Regulatory Secretariat at (202) 501-4755. Please cite FAC 2005-42, FAR 
Case 2009-026.


A. Background

    The CAS Board published a final rule in the Federal Register at 73 
FR 23961 on May 1, 2008, to amend CAS 412, ``Cost Accounting Standard 
for composition and measurement of pension cost,'' and CAS 415, 
``Accounting for the cost of deferred compensation.'' The CAS Board 
specified that the accounting of Employee Stock Ownership Plan (ESOP) 
costs, regardless of type, would be covered by the provisions of CAS 
415 only and not by CAS 412. The CAS Board also provided criteria in 
CAS 415 for measuring ESOP costs and assigning these costs to cost 
accounting periods.In order to maintain consistency between CAS and FAR 
in matters relating to the administration of CAS, the Councils are 
amending the FAR as follows:

[[Page 34286]]

    1. FAR 31.205-6(q)(2)(i) is deleted in its entirety to reflect the 
amendments promulgated by the CAS Board on May 1, 2008.
    2. FAR 31.205-6(q)(2)(ii) through (vi) are redesignated as 
paragraphs FAR 31.205-6(q)(2)(i) through (v) due to the deletion of the 
existing FAR 31.205-6(q)(2)(i).
    3. Redesignated FAR 31.205-6(q)(2)(i) is revised to reflect the 
amendments promulgated by the CAS Board on May 1, 2008.
    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 Councils do not expect this interim 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 affected small businesses are currently required to comply with 
CAS 412 and CAS 415. While small businesses are otherwise not subject 
to CAS, they are subject to selected standards for the purpose of 
determining allowability of costs under Government contracts. Among 
these standards are CAS 412 and CAS 415 as set forth in FAR 31.205-
6(q). For small businesses currently using CAS 415, there will be no 
increase in cost or effort. For small businesses that must change from 
CAS 412 to CAS 415, the possible change from measuring costs in 
accordance with CAS 412 to CAS 415 would result, at most, in a 
negligible increase in administrative burden because of the 
similarities between CAS 412 and 415. The potential increase of 
administrative effort, albeit minor, will be offset by the uniformity 
and consistency in accounting for deferred compensation costs achieved 
by this rule that will benefit all entities by reducing their 
administrative burden. Therefore, an Initial Regulatory Flexibility 
Analysis has not been performed. The Councils invite comments from 
small business concerns and other interested parties on the expected 
impact of this rule on small entities.
    The Councils will also consider comments from small entities 
concerning the existing regulations in FAR part 31 affected by this 
rule in accordance with 5 U.S.C. 610. Interested parties must submit 
such comments separately and should cite 5 U.S.C. 610 (FAC 2005-42, FAR 
Case 2009-026) in all correspondence.

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. 
chapter 35, et seq.

D. Determination to Issue an Interim Rule

    A determination has been made under the authority of the Secretary 
of Defense, the Administrator of General Services, and the 
Administrator of the National Aeronautics and Space Administration that 
urgent and compelling reasons exist to promulgate this interim rule 
without prior opportunity for public comment. This action is necessary 
because this rule implements a final rule promulgated by the CAS Board, 
which went into effect on June 2, 2008. Further, the CAS Board rule 
already gone through the public rulemaking process. However, pursuant 
to Public Law 98-577 and FAR 1.501-3(b), the Councils will consider 
public comments received in response to this interim rule in the 
formation of the final rule.

List of Subjects in 48 CFR Part 31

    Government procurement.

    Dated: June 2, 2010.
Edward Loeb,
Acting Director, Acquisition Policy Division.

Therefore, DoD, GSA, and NASA amend 48 CFR part 31 as set forth below:


1. The authority citation for 48 CFR part 31 continues to read as 

    Authority:  40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 42 
U.S.C. 2473(c).

2. Amend section 31.205-6 by removing paragraph (q)(2)(i); 
redesignating paragraphs (q)(2)(ii) through (q)(2)(vi) as paragraphs 
(q)(2)(i) through (q)(2)(v), respectively; and revising the newly 
redesignated (q)(2)(i) to read as follows:

31.205-6  Compensation for personal services.

* * * * *
    (q) * * *
    (2) * * *
    (i) The contractor measures, assigns, and allocates costs in 
accordance with 48 CFR 9904.415.
* * * * *
[FR Doc. 2010-14181 Filed 6-15-10; 8:45 am]