[Federal Register: September 17, 2008 (Volume 73, Number 181)]
[Rules and Regulations]
[Page 54011-54013]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr17se08-30]
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 30 and 52
[FAC 2005-27; FAR Case 2007-002; Item XI; Docket 2008-0001, Sequence 7]
RIN 9000-AL09
Federal Acquisition Regulation; FAR Case 2007-002, Cost
Accounting Standards (CAS) Administration and Associated Federal
Acquisition Regulation Clauses
AGENCIES: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Interim rule with request for comments.
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SUMMARY: The Civilian Agency Acquisition Council and the Defense
Acquisition Regulations Council (Councils) have agreed on an interim
rule amending the Federal Acquisition Regulation (FAR) to revise the
contract clauses related to the administration of the Cost Accounting
Standards (CAS) to maintain consistency between the FAR and CAS.
DATES: Effective Date: October 17, 2008.
Comment Date: Interested parties should submit written comments to
the FAR Secretariat on or before November 17, 2008 to be considered in
the formulation of a final rule.
ADDRESSES: Submit comments identified by FAC 2005-27, FAR case 2007-
002, by any of the following methods:
Regulations.gov: http://www.regulations.gov. Submit
comments via the Federal eRulemaking portal by inputting ``FAR Case
2007-002'' under the heading ``Comment or Submission''. Select the link
``Send a Comment or Submission'' that corresponds with FAR Case 2007-
002. Follow the instructions provided to complete the ``Public Comment
and Submission Form''. Please include your name, company name (if any),
and ``FAR Case 2007-002'' on your attached document.
Fax: 202-501-4067.
Mail: General Services Administration, Regulatory
Secretariat (VPR), 1800 F Street, NW., Room 4041, ATTN: Laurieann
Duarte, Washington, DC 20405.
Instructions: Please submit comments only and cite FAC 2005-27, FAR
case 2007-002, in all correspondence related
[[Page 54012]]
to this case. All comments received will be posted without change to
http://www.regulations.gov, including any personal and/or business
confidential information provided.
FOR FURTHER INFORMATION CONTACT Mr. Ed Chambers, Procurement Analyst,
at (202) 501-3221 for clarification of content. Please cite FAC 2005-
27, FAR case 2007-002. For information pertaining to status or
publication schedules, contact the FAR Secretariat at (202) 501-4755.
SUPPLEMENTARY INFORMATION:
A. Background
On June 14, 2007, the CAS Board published a final rule (72 FR
32809) revising the contract clauses for CAS administration. The final
rule effected the following changes:
Amended the CAS applicability threshold to be the same as
the threshold for compliance with the Truth in Negotiations Act (TINA)
as required by section 822 of the 2006 National Defense Authorization
Act (Pub. L. 109-163). The TINA threshold is currently $650,000.
Changed the effective dates of 48 CFR 9903.201-3 and 48
CFR 9903.201-4(a), (c), and (e) from April 2000 and June 2000,
respectively, to June 2007.
On June 14, 2000, the CAS Board published a final rule (65 FR
37470) revising the contract clauses for CAS administration. The final
rule effected the following changes:
Specified that the interest rate for overpayments by the
Government under 48 CFR 9903.201-4(a), (c), and (e) shall be computed
at the annual rate established under section 6621(a)(2) of the Internal
Revenue Code of 1986 (26 U.S.C. 6621(a)(2)).
In order to maintain consistency between CAS and FAR in matters
relating to the administration of CAS, the Councils are revising the
FAR as outlined below:
1. FAR 30.201-4(b)(1), the prescription for use of the FAR clause
at 52.230-3, is revised to reflect the amendments promulgated by the
CAS Board on June 14, 2007.
2. FAR 52.230. The following clauses are revised to reflect the
amendments promulgated by the CAS Board on June 14, 2007 and June 14,
2000:
a. FAR 52.230-2, Cost Accounting Standards.
b. FAR 52.230-3, Disclosure and Consistency of Cost Accounting
Practices.
c. FAR 52.230-5, Cost Accounting Standards--Educational
Institution.
3. FAR 52.230-1, Cost Accounting Standards Notices and
Certification, is revised to reflect the amendments promulgated by the
CAS Board on June 14, 2007.
4. FAR 52.230-4, Consistency of Cost Accounting Practices, is
revised to maintain consistency with all other CAS clauses in
specifying the rate to be used to compute interest on overpayments by
the Government.
5. FAR 52.230-3(a)(3)(ii) is revised to correctly reference 48 CFR
9903.201-6(c), Desirable change.
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 interim rule is not expected 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
contracts and subcontracts awarded to small businesses are exempt from
the Cost Accounting Standards. Therefore, an Initial Regulatory
Flexibility Analysis has not been performed. The Councils will consider
comments from small entities concerning the affected FAR Parts 30 and
52 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 2005-27,
FAR case 2007-002), 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.
D. Determination to Issue an Interim Rule
A determination has been made under the authority of the Secretary
of Defense (DoD), the Administrator of General Services (GSA), and the
Administrator of the National Aeronautics and Space Administration
(NASA) that urgent and compelling reasons exist to promulgate this
interim rule without prior opportunity for public comment. This action
is necessary because Federal Acquisition Regulation Part 30, Cost
Accounting Standards, describes policies and procedures for applying
the Cost Accounting Standards Board (CASB) rules and regulations (48
CFR Chapter 99 (FAR Appendix). Without this interim rule, FAR Part 30
is inconsistent with the Cost Accounting Standards that it is to
describe. However, pursuant to Public Law 98-577 and FAR 1.501, the
Councils will consider public comments received in response to this
interim rule in the formation of the final rule.
List of Subjects in 48 CFR Parts 30 and 52
Government procurement.
Dated: September 9, 2008.
Al Matera,
Director, Office of Acquisition Policy.
0
Therefore, DoD, GSA, and NASA amend 48 CFR parts 30 and 52 as set forth
below:
0
1. The authority citation for 48 CFR parts 30 and 52 continues to read
as follows:
Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 42
U.S.C. 2473(c).
PART 30--COST ACCOUNTING STANDARDS ADMINISTRATION
30.201-4 [Amended]
0
2. Amend section 30.201-4 in paragraph (b)(1) by removing ``$500,000''
and adding ``$650,000'' in its place.
PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
52.230-1 [Amended]
0
3. Amend section 52.230-1 by revising the date of the provision to read
``(OCT 2008)'', and by removing from I. Disclosure Statement--Cost
Accounting Practices and Certification, in paragraph (a) ``$500,000''
and adding ``$650,000'' in its place.
52.230-2 [Amended]
0
4. Amend section 52.230-2 by--
0
a. Revising the date of the clause to read ``(OCT 2008)'';
0
b. Removing from paragraph (a)(5) ``6621'' and adding ``6621(a)(2)'' in
its place each time it appears; and
0
c. Removing from paragraph (d) ``$500,000'' and adding ``$650,000'' in
its place.
0
5. Amend section 52.230-3 by--
0
a. Revising the date of the clause;
0
b. Removing from paragraph (a)(3)(ii) ``9903.201-6(b)'' and adding
``9903.201-6(c)'' in its place;
0
c. Revising the second sentence of paragraph (a)(4); and
0
d. Removing from paragraph (d)(2) ``$500,000'' and adding ``$650,000''
in its place.
0
The revised text reads as follows:
52.230-3 Disclosure and Consistency of Cost Accounting Practices.
* * * * *
[[Page 54013]]
DISCLOSURE AND CONSISTENCY OF COST ACCOUNTING PRACTICES (OCT
2008)
(a) * * *
(4) * * * Such adjustment shall provide for recovery of the
increased costs to the United States together with interest thereon
computed at the annual rate established under section 6621(a)(2) of
the Internal Revenue Code of 1986 (26 U.S.C. 6621(a)(2)), from the
time the payment by the United States was made to the time the
adjustment is effected.
* * * * *
52.230-4 [Amended]
0
6. Amend section 52.230-4 by revising the date of the clause date to
read ``(OCT 2008)''; and removing ``6621'' and adding ``6621(a)(2)'' in
its place each time it appears.
52.230-5 [Amended]
0
7. Amend section 52.230-5 by--
0
a. Revising the date of the clause date to read ``(OCT 2008)'';
0
b. Removing from paragraph (a)(5) ``6621'' and adding ``6621(a)(2)'' in
its place each time it appears; and
0
c. Removing from paragraph (d)(2) ``$500,000'' and adding ``$650,000''
in its place.
[FR Doc. E8-21367 Filed 9-16-08; 8:45 am]
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