[Federal Register: October 11, 2000 (Volume 65, Number 197)]
[Rules and Regulations]
[Page 60553]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr11oc00-23]
[[Page 60553]]
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Part 15
[FAC 97-20; FAR Case 2000-300; Item II]
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: Final rule.
-----------------------------------------------------------------------
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 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: Effective Date: October 11, 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) 501-3221. Please cite FAC
97-20, FAR case 2000-300.
SUPPLEMENTARY INFORMATION:
A. Background
This final 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 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.
DoD, GSA, and NASA published a proposed rule in the Federal
Register at 65 FR 41267, July 3, 2000. Two respondents submitted public
comments. The Councils considered all public comments in formulation of
the final rule. This final rule is the same as the proposed rule.
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 Department of Defense, the General Services Administration, and
the National Aeronautics and Space Administration certify that this
final rule will not 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.
C. Paperwork Reduction Act
The Paperwork Reduction Act does not apply because the changes do
not significantly change the existing 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: October 3, 2000.
Al Matera,
Acting Director, Federal Acquisition Policy Division.
Therefore, DoD, GSA, and NASA amend 48 CFR part 15 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 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. 00-25875 Filed 10-10-00; 8:45 am]
BILLING CODE 6820-EP-P