[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]
[DOCID:fr16jn10-26]
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
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.
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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
provided.
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.
SUPPLEMENTARY INFORMATION:
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.
0
Therefore, DoD, GSA, and NASA amend 48 CFR part 31 as set forth below:
PART 31--CONTRACT COST PRINCIPLES AND PROCEDURES
0
1. The authority citation for 48 CFR part 31 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).
0
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]
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