[Federal Register Volume 77, Number 91 (Thursday, May 10, 2012)]
[Rules and Regulations]
[Pages 27550-27551]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-11151]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 30 and 52

[FAC 2005-59; FAR Case 2012-003; Item III; Docket 2012-0003, Sequence 
1]
RIN 9000-AM25


Federal Acquisition Regulation; Revision of Cost Accounting 
Standards Threshold

AGENCY: Department of Defense (DoD), General Services Administration 
(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Final rule.

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SUMMARY: DoD, GSA, and NASA are issuing a final rule amending the 
Federal Acquisition Regulation (FAR) to revise the threshold for 
applicability of cost accounting standards in order to implement a 
recent rule of the Cost Accounting Standards Board and statutory 
requirements.

DATES: Effective Date: May 10, 2012.

FOR FURTHER INFORMATION CONTACT: Mr. Edward N. Chambers, Procurement 
Analyst, at 202-501-3221 for clarification of content. For information 
pertaining to status or publication schedules, contact the Regulatory

[[Page 27551]]

Secretariat at 202-501-4755. Please cite FAC 2005-59, FAR Case 2012-
003.

SUPPLEMENTARY INFORMATION:

I. Background

    The Cost Accounting Standards (CAS) Board published a final rule in 
the Federal Register at 76 FR 79545, on December 22, 2011, which 
revised the threshold for the application of CAS from ``$650,000'' to 
``the Truth in Negotiations Act (TINA) threshold, as adjusted for 
inflation (41 U.S.C. 1908 and 41 U.S.C. 1502(b)(1)(B))'' in the CAS 
provisions and clauses at 48 CFR parts 9901 and 9903. The TINA 
threshold is adjusted every 5 years for inflation, as required by 41 
U.S.C. 1908. Title 41 U.S.C. 1502(b)(1)(B) ties the CAS applicability 
threshold to the dollar value of the TINA threshold (currently 
$700,000). The FAR cites the TINA threshold at FAR 15.403-4(a)(1).

II. Discussion and Analysis

    This final rule revises the CAS applicability threshold from 
$650,000 to $700,000 at FAR 30.201-4 and the CAS clauses in the FAR at 
52.230-1 through 50.230-5. The FAR replaced ``$650,000'' with 
``$700,000'' rather than the phrase ``the Truth in Negotiations Act 
(TINA) threshold, as adjusted for inflation (41 U.S.C. 1908 and 41 
U.S.C. 1502(b)(1)(B))'' (the phrase used by the CAS Board in its rule) 
as applicable. The FAR made this change from the CAS Board's rule for 
improved clarity of FAR 30.201-4 and the CAS clauses in the FAR--
stating the specific dollar value of the TINA threshold, rather than a 
reference to the TINA threshold as was done in the CAS Board's final 
rule. In so doing, no further action will be required by the CAS Board 
to implement further adjustments for inflation in the future as 
permitted by the CAS Board's rule; the CAS applicability thresholds in 
the FAR will be revised every 5 years in the future, whenever the TINA 
threshold is revised in the FAR as part of the statutory revision of 
the acquisition thresholds.

Publication of This Final Rule for Public Comment Is Not Required by 
Statute

    ``Publication of proposed regulations,'' 41 U.S.C. 1707, is the 
statute which applies to the publication of the FAR. Paragraph (a)(1) 
of the statute requires that a procurement policy, regulation, 
procedure or form (including an amendment or modification thereof) must 
be published for public comment if it relates to the expenditure of 
appropriated funds, and has either a significant effect beyond the 
internal operating procedures of the agency issuing the policy, 
regulation, procedure or form, or has a significant cost or 
administrative impact on contractors or offerors. This final rule is 
not required to be published for public comment, because it recognizes 
actions taken by the Cost Accounting Standards Board that have already 
been published for public comment; the changes in this rule are made to 
conform the FAR to the CAS Board final rule published in the Federal 
Register at 76 FR 79545, on December 22, 2011.

III. Executive Orders 12866 and 13563

    Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess 
all costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). E.O. 
13563 emphasizes the importance of quantifying both costs and benefits, 
of reducing costs, of harmonizing rules, and of promoting flexibility. 
This is not a significant regulatory action and, therefore, was not 
subject to review under section 6(b) of E.O. 12866, Regulatory Planning 
and Review, dated September 30, 1993. This rule is not a major rule 
under 5 U.S.C. 804.

IV. Regulatory Flexibility Act

    The Regulatory Flexibility Act does not apply to this rule because 
this final rule does not constitute a significant FAR revision within 
the meaning of FAR 1.501-1 and 41 U.S.C. 1707 and does not require 
publication for public comment.

V. Paperwork Reduction Act

    This rule does not contain any information collection requirements 
that require the approval of the Office of Management and Budget under 
the Paperwork Reduction Act (44 U.S.C. chapter 35).

List of Subjects in 48 CFR Parts 30 and 52

    Government procurement.

    Dated: May 3, 2012.
Laura Auletta,
Director, Office of Governmentwide Acquisition Policy, Office of 
Acquisition Policy, Office of Governmentwide Policy.
    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 by removing from paragraph (b)(1) 
``$650,000'' and adding ``$700,000'' 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 
``(MAY 2012)''; and removing from paragraph (a) of the Disclosure 
Statement I ``$650,000'' and adding ``$700,000'' in its place.


52.230-2  [Amended]

0
4. Amend section 52.230-2 by revising the date of the clause to read 
``(MAY 2012)''; and removing from paragraph (d) ``$650,000'' and adding 
``$700,000'' in its place.


52.230-3  [Amended]

0
5. Amend section 52.230-3 by revising the date of the clause to read 
``(MAY 2012)''; and removing from paragraph (d)(2) ``$650,000'' and 
adding ``$700,000'' in its place.


52.230-4  [Amended]

0
6. Amend section 52.230-4 by revising the date of the clause to read 
``(MAY 2012)''; and removing from paragraph (d)(2) ``$650,000'' and 
adding ``$700,000'' in its place.


52.230-5  [Amended]

0
7. Amend section 52.230-5 by revising the date of the clause to read 
``(MAY 2012)''; and removing from paragraph (d)(2) ``$650,000'' and 
adding ``$700,000'' in its place.

[FR Doc. 2012-11151 Filed 5-9-12; 8:45 am]
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