[Federal Register: September 11, 2000 (Volume 65, Number 176)]
[Proposed Rules]
[Page 54940-54941]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr11se00-35]
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 2, 31, and 35
[FAR Case 2000-401]
RIN 9000-AI91
Federal Acquisition Regulation; Definitions of ``Applied
Research'' and ``Development''
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 move the definitions of
``Applied Research'' and ``Development'' from separate areas of the FAR
into the same FAR section pertaining to definitions.
DATES: Interested parties should submit comments in writing on or
before November 13, 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.2000-401@gsa.gov
Please submit comments only and cite FAR case 2000-401 in all
correspondence related to this case.
FOR FURTHER INFORMATION CONTACT: The FAR Secretariat, Room 4035, GS
Building, Washington, DC, 20405, at (202) 501-4755 for information
pertaining to status or publication schedules. For clarification of
content, contact Ralph De Stefano, Procurement Analyst, at (202) 501-
1757. Please cite FAR case 2000-401.
SUPPLEMENTARY INFORMATION:
A. Background
This rule amends FAR Subpart 2.1 to consolidate the definitions of
``Applied Research'' and ``Development'' found in 31.205-18 and 35.001
into the definitions section at FAR 2.101 and makes editorial changes
for clarity. The Councils' amendments are intended to reorganize,
simplify, and clarify FAR language. The Councils do not intend any
substantive changes to the FAR by these amendments.
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 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, while we have made changes in accordance with plain language
guidelines, we have not substantively changed procedures for award and
administration of contracts. Therefore, we have not prepared an Initial
Regulatory Flexibility Analysis. We invite comments from small
businesses and other interested parties. We will consider comments from
small entities concerning the affected FAR parts 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 2000-401), in
correspondence.
C. Paperwork Reduction Act
The Paperwork Reduction Act does not apply because the proposed
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. 3501, et seq.
List of Subjects in 48 CFR Parts 2, 31, and 35
Government procurement.
Dated: September 5, 2000.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.
Therefore, DoD, GSA, and NASA propose that 48 CFR parts 2, 31, and
35 be amended as set forth below:
1. The authority citation for 48 CFR parts 2, 31, and 35 continues
to read as follows:
Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42
U.S.C. 2473(c).
PART 2--DEFINITIONS OF WORDS AND TERMS
2. Amend section 2.101 by adding the definitions ``Applied
research'' and ``Development'' to read as follows:
2.101 Definitions.
* * * * *
Applied research--(1) Means effort that--
(i) Normally follows basic research, but may not be severable from
the related basic research;
(ii) Attempts to determine and exploit the potential of scientific
discoveries or
[[Page 54941]]
improvements in technology, materials, processes, methods, devices, or
techniques; and
(iii) Attempts to advance the state of the art.
(2) Does not include efforts whose principle aim is design,
development, or test of specific items or services to be considered for
sale.
* * * * *
Development--(1) Means the systematic use, under whatever name, of
scientific and technical knowledge in the design, development, test, or
evaluation of a potential new product or service (or of an improvement
in an existing product or service) for the purpose of meeting specific
performance requirements or objectives.
(2) Includes the functions of design engineering, prototyping, and
engineering testing, but does not include--
(i) Subcontracted technical effort that is for the sole purpose of
developing an additional source for an existing product; or
(ii) Development effort for manufacturing or production materials,
systems, processes, methods, equipment, tools, and techniques not
intended for sale.
* * * * *
PART 31--CONTRACT COST PRINCIPLES AND PROCEDURES
3. Amend section 31.205-18 by revising paragraph (a), removing the
definitions ``Applied research'' and ``Development'' and removing ``as
used in this subsection'' from the definitions of ``Basic research'',
``Bid and proposal (B&P) costs'', ``Company'', ``Independent research
and development (IR&D)'', and ``Systems and other concept formulation
studies''. The revised text reads as follows:
31.205-18 Independent research and development and bid and proposal
costs.
(a) Definitions. As used in this subsection--
* * * * *
4. Revise paragraph (b)(1) of section 31.205-25 to read as follows:
31.205-25 Manufacturing and production engineering costs.
* * * * *
(b) * * *
(1) Basic research and applied research efforts related to new
technology, materials, systems, processes, methods, equipment, tools
and techniques. Such technical effort is governed by 31.205-18,
Independent research and development and bid and proposal costs; and
* * * * *
PART 35--RESEARCH AND DEVELOPMENT CONTRACTING
35.001 [Amended]
5. Amend section 35.001 by removing the definitions ``Applied
research'' and ``Development''.
[FR Doc. 00-23120 Filed 9-8-00; 8:45 am]
BILLING CODE 6820-EP-P