[Federal Register: July 3, 2000 (Volume 65, Number 128)]
[Proposed Rules]
[Page 41267-41268]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr03jy00-53]
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Part 15
[FAR Case 2000-300]
RIN 9000-AI83
Federal Acquisition Regulation; Truth in Negotiations Act
Threshold
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 implement the requirements of
10 U.S.C. 2306a(a)(7) and 41 U.S.C. 254b(a)(7). These statutes require
review of the Truth in Negotiations Act threshold every 5 years,
starting October 1, 1995.
DATES: Interested parties should submit comments in writing on or
before September 1, 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.2000-300@gsa.gov
Please submit comments only and cite FAR case 2000-300 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 Mr. Jeremy Olson, at (202) 501-0692. Please cite FAR
case 2000-300.
SUPPLEMENTARY INFORMATION:
A. Background
This proposed rule amends FAR 15.403-4 to implement the
requirements of 10 U.S.C. 2306a(a)(7) and 41 U.S.C. 254b(a)(7). These
statutes require review of the Truth in Negotiations Act threshold
every 5 years, starting October 1, 1995. The proposed increase of
$50,000 is based on escalation of 10.22 percent from 1994 to 2000,
calculated using the gross domestic product deflators from the fiscal
year 2001 budget.
This rule was not subject to Office of Management and Budget 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 most contracts and subcontracts with small entities do not
require the submission of cost or pricing data. 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 Part 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 2000-300), in correspondence.
C. Paperwork Reduction Act
The Paperwork Reduction Act applies; however, the proposed changes
to the FAR do not significantly change the information collection
requirements that have been approved by the Office of Management and
Budget under 44 U.S.C. 3501, et seq., under OMB Clearance Number 9000-
0045.
List of Subjects in 48 CFR Part 15
Government procurement.
Dated: June 26, 2000.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.
Therefore, DoD, GSA, and NASA propose that 48 CFR part 15 be
amended as set forth below:
PART 15--CONTRACTING BY NEGOTIATION
1. The authority citation for 48 CFR part 15 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).
2. Amend section 15.403-4 by revising paragraph (a)(1) to read as
follows:
15.403-4 Requiring cost or pricing data (10 U.S.C. 2306a and 41 U.S.C.
254b).
(a)(1) The contracting officer must obtain cost or pricing data
only if the contracting officer concludes that none of the exceptions
in 15.403-1(b) applies. However, if the contracting officer has
sufficient information available to
[[Page 41268]]
determine price reasonableness, then the contracting officer should
consider requesting a waiver under the exception at 15.403-1(b)(4). The
threshold for obtaining cost or pricing data is $550,000. Unless an
exception applies, cost or pricing data are required before
accomplishing any of the following actions expected to exceed the
current threshold or, for existing contracts, the threshold specified
in the contract:
(i) The award of any negotiated contract (except for undefinitized
actions such as letter contracts).
(ii) The award of a subcontract at any tier, if the contractor and
each higher-tier subcontractor were required to submit cost or pricing
data (but see waivers at 15.403-1(c)(4)).
(iii) The modification of any sealed bid or negotiated contract
(whether or not cost or pricing data were initially required) or any
subcontract covered by paragraph (a)(1)(ii) of this subsection. Price
adjustment amounts must consider both increases and decreases (e.g., a
$200,000 modification resulting from a reduction of $400,000 and an
increase of $200,000 is a pricing adjustment exceeding $550,000). This
requirement does not apply when unrelated and separately priced changes
for which cost or pricing data would not otherwise be required are
included for administrative convenience in the same modification.
Negotiated final pricing actions (such as termination settlements and
total final price agreements for fixed-price incentive and
redeterminable contracts) are contract modifications requiring cost or
pricing data if--
(A) The total final price agreement for such settlements or
agreements exceeds the pertinent threshold set forth at paragraph
(a)(1) of this subsection; or
(B) The partial termination settlement plus the estimate to
complete the continued portion of the contract exceeds the pertinent
threshold set forth at paragraph (a)(1) of this subsection (see
49.105(c)(15)).
* * * * *
[FR Doc. 00-16523 Filed 6-30-00; 8:45 am]
BILLING CODE 6820-EP-U