[Federal Register: October 3, 2006 (Volume 71, Number 191)]
[Proposed Rules]
[Page 58338-58340]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr03oc06-33]
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 30 and 52
[FAR Case 2006-004; Docket 2006-0020; Sequence 10]
RIN 9000-AK58
Federal Acquisition Regulation; FAR Case 2006-004, FAR Part 30 -
CAS Administration
AGENCIES: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Proposed rule.
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SUMMARY: The Civilian Agency Acquisition Council and the Defense
Acquisition Regulations Council (Councils) are proposing to amend the
Federal Acquisition Regulation (FAR) to implement recommendations to
revise the regulations related to the administration of the Cost
Accounting Standards (CAS).
DATES: Interested parties should submit written comments to the FAR
Secretariat on or before December 4, 2006 to be considered in the
formulation of a final rule.
ADDRESSES: Submit comments identified by FAR case 2006-004 by any of
the following methods:
[[Page 58339]]
Federal eRulemaking Portal: http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&log=linklog&to=http://www.regulations.gov.
Search for any document by first selecting the proper document types
and selecting ``Federal Acquisition Regulation'' as the agency of
choice. At the ``Keyword'' prompt, type in the FAR case number (for
example, FAR Case 2006-001) and click on the ``Submit'' button. You may
also search for any document by clicking on the ``Advanced search/
document search'' tab at the top of the screen, selecting from the
agency field ``Federal Acquisition Regulation'', and typing the FAR
case number in the keyword field. Select the ``Submit'' button.
Fax: 202-501-4067.
Mail: General Services Administration, Regulatory
Secretariat (VIR), 1800 F Street, NW, Room 4035, ATTN: Laurieann
Duarte, Washington, DC 20405.
Instructions: Please submit comments only and cite FAR case 2006-
004 in all correspondence related to this case. All comments received
will be posted without change to http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&log=linklog&to=http://www.regulations.gov, including
any personal and/or business confidential information provided.
FOR FURTHER INFORMATION CONTACT: For clarification of content, contact
Jeremy Olson, at (202) 501-3221. For information pertaining to status
or publication schedules, contact the FAR Secretariat at (202) 501-
4755. Please cite FAR case 2006-004.
SUPPLEMENTARY INFORMATION:
A. Background
On May 23, 2005, the Cost Accounting Standards Board published an
interim rule in the Federal Register at 70 FR 29457 revising the
applicability of CAS to U.K. contracts and subcontracts. The interim
rule effected three changes in this regard:
Amendment of 48 CFR 9903.202-1(e) to add the U.K. to the
list of countries whose contractors may file a disclosure form adopted
by an agency of their own government in lieu of the CASB-DS-1. As a
result, U.K. contractors are permitted to file the U.K. ``Questionnaire
on Method of Allocation of Costs'' and ``Supplemental QMAC.''
Deletion of the CAS exemption at 48 CFR 9902.201-1(b)(12).
Henceforth, all foreign contracts and subcontracts, including U.K.
contracts and subcontracts, are subject to the requirements at 48 CFR
9903.201-1(b)(4) and must comply with CAS 401 and 402.
Deletion of 48 CFR 9903.201-4(d), Consistency in Cost
Accounting Practices. This contract clause is no longer appropriate for
inclusion in contracts with U.K. concerns.
In order to retain consistency between CAS and FAR in matters
relating to the administration of CAS, the Councils are proposing FAR
revisions as outlined below:
1. FAR 30.201-4(c), Consistency in Cost Accounting Practices. This
part is renamed as Disclosure and Consistency of Cost Accounting
Practices for Contracts Awarded to Foreign Concerns. It is also being
revised to delete the language related to contracts awarded to United
Kingdom contracts and to add language that addresses contracts subject
to CAS 401 and 402 under 48 CFR 9903.201-(1)(b)(4).
2. FAR 52.230-4, Consistency in Cost Accounting Practices. The
clause is renamed as Disclosure and Consistency of Cost Accounting
Practices for Contracts Awarded to Foreign Concerns. The clause is also
revised to specify that it applies to contracts awarded to foreign
concerns who are subject to CAS 401 and 402.
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 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 contracts and subcontracts awarded to small businesses are
exempt from the Cost Accounting Standards. 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 Parts 30 and 52 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 2006-004), 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 30 and 52
Government procurement.
Dated: September 26, 2006.
Ralph De Stefano
Director, Contract Policy Division.
Therefore, DoD, GSA, and NASA propose amending 48 CFR parts 30 and
52 as set forth below:
1. The authority citation for 48 CFR parts 30 and 52 continues to
read as follows:
Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 42
U.S.C. 2473(c).
PART 30--COST ACCOUNTING STANDARDS ADMINISTRATION
2. Amend section 30.201-4 by revising paragraph (c) to read as
follows:
30.201-4 Contract clauses.
* * * * *
(c) Disclosure and Consistency of Cost Accounting Practices for
Contracts Awarded to Foreign Concerns. The contracting officer shall
insert the clause at FAR 52.230-4, Disclosure and Consistency of Cost
Accounting Practices for Contracts Awarded to Foreign Concerns, in
negotiated contracts that are subject to CAS 401 and 402 under 48 CFR
9903.201-1(b)(4).
* * * * *
PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
3. Amend section 52.230-4 by revising the section and clause
headings and the clause to read as follows:
52.230-4 Disclosure and Consistency of Cost Accounting Practices for
Contracts Awarded to Foreign Concerns.
* * * * *
DISCLOSURE AND CONSISTENCY OF COST ACCOUNTING PRACTICES FOR
CONTRACTS AWARDED TO FOREIGN CONCERNS (DATE)
The Contractor agrees that it will consistently follow the cost
accounting practices disclosed on FORM CASB DS-1 or other disclosure
form as permitted by 48 CFR 9903.202-1(e) in estimating,
accumulating, and reporting costs under this contract, and comply
with the requirements of CAS 401, Consistency in Estimating,
Accumulating, and Reporting Costs, and CAS 402, Consistency in
Allocating Costs Incurred for the Same Purpose. In the event the
Contractor fails to follow such practices, or comply consistently
with CAS 401 and 402, it agrees that the contract price shall be
adjusted, together with interest, if such failure results in
increased cost paid by the U.S. Government. Interest shall be
computed at the annual rate of interest established under section
6621 of the Internal Revenue Code of 1986 (26 U.S.C. 6621) from the
time payment by the Government was made to the time adjustment is
effected. The Contractor agrees that the Disclosure Statement or
other form permitted, pursuant to 48 CFR 9903.202-1(e) shall be
available for inspection and use by authorized
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representatives of the United States Government.
(End of clause)
[FR Doc. 06-8413 Filed 10-2-06; 8:45 am]
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