[Federal Register: February 8, 2002 (Volume 67, Number 27)]
[Rules and Regulations]
[Page 6115]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr08fe02-17]
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Part 15
[FAC 2001-04; FAR Case 2001-013;
Item III]
RIN 9000-AJ29
Federal Acquisition Regulation; Notification of Noncompliance
With Cost Accounting Standards
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 remove the
requirement for a contractor to notify the contracting officer when
there is a cost accounting standard (CAS) noncompliance that has an
immaterial cost impact.
DATES: Effective Date: February 20, 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
2001-04, FAR case 2001-013.
SUPPLEMENTARY INFORMATION:
A. Background
Contracting officers may require submission of cost or pricing data
in the format indicated in Table 15-2, Instructions for Submitting
Cost/Price Proposals When Cost or Pricing Data are Required, which is
included in FAR 15.408, Solicitation provisions and contract clauses.
This Table requires contractors to state whether they have been
notified that they are or may be in noncompliance with the CAS. When
there is a noncompliance and the cognizant Federal agency official
determines the noncompliance has an immaterial cost impact, it is not
necessary for the contractor to notify the contracting officer because
the noncompliance will not impact the contract price. If the
noncompliance is not corrected and it subsequently results in
materially increased costs to the Government, the provisions of the
applicable CAS clauses will continue to be enforced. Since the
notification requirement is an inefficient use of resources and may
cause an unnecessary delay, this rule deletes it.
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
This 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 comments 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 2001-04, FAR case 2001-013), 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: February 1, 2002.
Al Matera,
Director, Acquisition Policy Division.
Therefore, DoD, GSA, and NASA amend 48 CFR part 15 as set forth
below:
1. The authority citation for 48 CFR part 15 continues to read as
follows:
PART 15--CONTRACTING BY NEGOTIATION
Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42
U.S.C. 2473(c).
2. In section 15.408, amend Table 15-2, which follows paragraph
(m)(4), by revising paragraph A.(8) of the General Instructions to read
as follows:
15.408 Solicitation provisions and contract clauses.
* * * * *
Table 15-2--Instructions for Submitting Cost/Price Proposals When
Cost or Pricing Data are Required
* * * * *
I. General Instructions
A. * * *
(8) Whether your organization is subject to cost accounting
standards; whether your organization has submitted a CASB Disclosure
Statement, and if it has been determined adequate; whether you have
been notified that you are or may be in noncompliance with your
Disclosure Statement or CAS (other than a noncompliance that the
cognizant Federal agency official has determined to have an immaterial
cost impact), and, if yes, an explanation; whether any aspect of this
proposal is inconsistent with your disclosed practices or applicable
CAS, and, if so, an explanation; and whether the proposal is consistent
with your established estimating and accounting principles and
procedures and FAR Part 31, Cost Principles, and, if not, an
explanation;
* * * * *
[FR Doc. 02-2915 Filed 2-7-02; 8:45 am]
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