[Federal Register: April 25, 2000 (Volume 65, Number 80)]
[Rules and Regulations]
[Page 24320-24321]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr25ap00-12]
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 12, 13, and 15
[FAC 97-17; FAR Case 1998-300 (98-300); Item II]
RIN 9000-AI45
Federal Acquisition Regulation; Determination of Price
Reasonableness and Commerciality
AGENCIES: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Final rule.
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[[Page 24321]]
SUMMARY: The Civilian Agency Acquisition Council and the Defense
Acquisition Regulations Council (Councils) have agreed on a final rule
amending the Federal Acquisition Regulation (FAR) to implement Sections
803 and 808 of the Strom Thurmond National Defense Authorization Act
for Fiscal Year 1999 (Pub. L. 105-261).
DATES: Effective Date: April 25, 2000.
Applicability Date: The FAR, as amended by this rule, is applicable
to solicitations issued on or after April 25, 2000.
FOR FURTHER INFORMATION CONTACT: The FAR Secretariat, Room 4035, GS
Building, Washington, DC, 20405, (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 FAC
97-17, FAR case 1998-300.
SUPPLEMENTARY INFORMATION:
A. Background
The Councils initiated this case to implement Sections 803 and 808
of the Strom Thurmond National Defense Authorization Act for Fiscal
Year 1999 (Pub. L. 105-261) as follows:
(a) Section 803 of Public Law 105-261. (1) Paragraphs (a)(2)(A)
through (a)(2)(C) of Section 803 of Pub. L. 105-261 require that the
FAR provide specific guidance concerning--
(i) The appropriate application and precedence of various price
analysis tools;
(ii) The circumstances under which contracting officers should
require offerors of exempt commercial items to provide information
other than cost or pricing data; and
(iii) The role and responsibility of support organizations in
determining price reasonableness.
(2) Paragraph (a)(2)(D) of Section 803 is not implemented under
this case.
(b) Section 808 of Public Law 105-261. Section 808 of Public Law
105-261 requires amending the FAR to--
(1) Clarify procedures associated with obtaining information other
than cost or pricing data;
(2) Establish that offerors who fail to comply with requirements to
provide the information shall be ineligible for award; and
(3) Establish exceptions, as appropriate.
The Councils published an interim rule in the Federal Register on
September 24, 1999 (64 FR 51828). Five respondents submitted comments
in response to the interim rule. The Councils considered all comments
in the development of the final rule.
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 prepared a Final Regulatory Flexibility Analysis
(FRFA) consistent with 5 U.S.C. 604. Interested parties may obtain a
copy of the FRFA from the FAR Secretariat. The FRFA is summarized as
follows:
The primary objective of this rule is to provide guidance on
determining price reasonableness and commerciality, and to specify
that offerors failing to comply with a requirement to provide
certain information other than cost or pricing data are ineligible
for award. There were no issues raised by the public in response to
the Initial Regulatory Flexibility Analysis. The rule will apply to
all offerors, large or small, that respond to solicitations for
commercial items for which information other than cost or pricing
data is required. Few, if any, offerors are expected to fail to
comply with the requirements to provide information other than cost
or pricing data. The rule does not impose any new reporting or
recordkeeping requirements. There are no significant alternatives to
the rule that would accomplish the stated objectives yet further
reduce impact on small entities. The rule includes only FAR text
revisions required to implement the statute cited herein.
The FAR Secretariat has submitted a copy of the FRFA to the Chief
Counsel for Advocacy of the Small Business Administration.
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.
3501, et seq.
List of Subjects in 48 CFR Parts 12, 13, and 15
Government procurement.
Dated: April 13, 2000.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.
Interim Rule Adopted as Final With Change
Accordingly, DoD, GSA, and NASA adopt the interim rule amending 48
CFR parts 12, 13, and 15, which was published in the Federal Register
on September 24, 1999 (64 FR 51828), as a final rule with the following
change:
PART 15--CONTRACTING BY NEGOTIATION
1. The authority citation for 48 CFR parts 12, 13, and 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).
15.403-3 [Amended]
2. Amend section 15.403-3 at the end of paragraph (c)(1) by
removing ``(see 15.403-3(a)(1))'' and adding ``(see 15.404-1)'' in its
place.
[FR Doc. 00-10132 Filed 4-24-00; 8:45 am]
BILLING CODE 6820-EP-P