[Federal Register: December 18, 2001 (Volume 66, Number 243)]
[Rules and Regulations]
[Page 65369-65370]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr18de01-18]
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Part 15
[FAC 2001-02; FAR Case 2000-017; Item VI]
RIN 9000-AJ25
Federal Acquisition Regulation; Definition of Subcontract in FAR
Subpart 15.4
AGENCIES: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Final rule.
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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 exclude section
15.407-2 from application of the expanded definition of ``subcontract''
at FAR 15.401.
DATES: Effective Date: February 19, 2002.
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
2001-02, FAR case 2000-017.
SUPPLEMENTARY INFORMATION:
A. Background
This final rule excludes section 15.407-2 from application of the
expanded definition of ``subcontract'' at FAR 15.401. This definition
of ``subcontract'' is derived from the Truth in Negotiations Act (10
U.S.C. 2306a(h)(2) and 41 U.S.C. 254b(h)(2)). Prior to the rewrite of
Part 15, this definition applied only to Subpart 15.8, Price
Negotiation, and did not apply to Subpart 15.7, Make-or-Buy Programs,
or Subpart 15.9, Profit. The rewrite combined these three subparts into
the new Subpart 15.4, Contract Pricing. However, application of the
expanded definition creates a conflict with the definitions of ``buy
item'' and ``make item'' in section 15.407-2, Make-or-buy programs. As
defined in section 15.407-2, ``buy item'' means an item or work effort
to be produced or performed by a subcontractor. ``Make item'' means an
item or work effort to be produced or performed by the prime contractor
or its affiliates, subsidiaries, or divisions. In this context, a
transfer of commercial items between divisions, subsidiaries, or
affiliates of a contractor is not considered to be a ``subcontract.''
This is not a significant regulatory action and, therefore, 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 final rule does not constitute a significant FAR revision
within the meaning of FAR 1.501 and Public Law 98-577, and publication
for public comment is not required.
However, the Councils will consider comments from small entities
concerning the affected FAR part 15 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. (FAC 2001-02, FAR case 2000-017), in
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.
3501, et seq.
List of Subjects in 48 CFR Part 15
Government procurement.
Dated: December 5, 2001.
Al Matera,
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).
15.401 [Amended]
2. Amend section 15.401 in the definition of ``Subcontract'' by
adding the parenthetical ``(except as used in
[[Page 65370]]
15.407-2)'' following the word ``Subcontract''.
[FR Doc. 01-30543 Filed 12-17-01; 8:45 am]
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