[Federal Register Volume 78, Number 123 (Wednesday, June 26, 2013)]
[Rules and Regulations]
[Pages 38533-38534]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-15211]
[[Page 38533]]
Vol. 78
Wednesday,
No. 123
June 26, 2013
Part IV
Department of Defense
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General Services Administration
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National Aeronautics and Space Administration
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48 CFR Chapter 1
Federal Acquisition Regulations; Final Rules and Proposed Rule
Federal Register / Vol. 78 , No. 123 / Wednesday, June 26, 2013 /
Rules and Regulations
[[Page 38534]]
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Chapter 1
[Docket FAR 2013-0076, Sequence 4]
Federal Acquisition Regulation; Federal Acquisition Circular
2005-68; Introduction
AGENCY: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Summary presentation of an interim rule.
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SUMMARY: This document summarizes the Federal Acquisition Regulation
(FAR) rule agreed to by the Civilian Agency Acquisition Council and the
Defense Acquisition Regulations Council (Councils) in this Federal
Acquisition Circular (FAC) 2005-68. A companion document, the Small
Entity Compliance Guide (SECG), follows this FAC. The FAC, including
the SECG, is available via the Internet at http://www.regulations.gov.
DATES: For effective dates and comment dates see separate documents,
which follow.
FOR FURTHER INFORMATION CONTACT: The analyst whose name appears in the
table below in relation to the FAR case. Please cite FAC 2005-68 and
the specific FAR case number. For information pertaining to status or
publication schedules, contact the Regulatory Secretariat at 202-501-
4755.
Rule Listed in FAC 2005-68
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Subject FAR Case Analyst
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Expansion of Applicability of the 2012-017 Chambers.
Senior Executive Compensation
Benchmark (Interim).
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@@SUPPLEMENTARY INFORMATION: Summary for the FAR rule follow. For the
actual revisions and/or amendments made by this FAR case, refer to the
specific item number and subject set forth in the document following
this item summary. FAC 2005-68 amends the FAR as specified below:
Expansion of Applicability of the Senior Executive Compensation
Benchmark (FAR Case 2012-017) (Interim)
This interim rule amends the FAR to implement the statutorily-
expanded reach of the limitation on the allowability of compensation
costs for certain contractor personnel. This limitation on the
allowability of compensation costs is an amount set annually by the
Office of Federal Procurement Policy. Prior to the enactment of section
803 of the National Defense Authorization Act for Fiscal Year 2012
(Pub. L. 112-81), this limitation applied to a contractor's five most
highly compensated employees in management positions at each home
office and each segment of the contractor, with respect to all
contracts subject to the FAR cost principles with all Federal agencies.
In section 803, Congress expanded the application of the limitation so
that it applies to all contractor employees, rather than just the top
five executives in the case of contracts covered by Title 10 of the
United States Code. Moreover, Congress in section 803(c)(2) stated that
this expanded reach ``shall apply with respect to costs of compensation
incurred after January 1, 2012, under contracts entered into before,
on, or after the date of the enactment of this Act'' (the date of
enactment was December 31, 2011). Section 803(c)(1) also provided that
this change shall be implemented in the FAR.
This interim rule implements section 803 and provides that for DoD,
NASA, and Coast Guard contracts, the compensation limitation applies to
all contractor employees, rather than just the top five executives. For
contracts with agencies other than DoD, NASA, and the Coast Guard, the
reach of the limitation was not changed by section 803 and therefore
will continue to be a contractor's five most highly compensated
employees in management positions at each home office and each segment
of the contractor.
An analysis of data in the Federal Procurement Data System (FPDS)
revealed that most contracts awarded to small entities use simplified
acquisition procedures or are awarded on a competitive, fixed-price
basis, and do not require application of the cost principle contained
in this rule.
Section 803 is being implemented in the FAR through two
rulemakings. In accordance with section 803, this interim rule applies
to the compensation costs of all contractor employees incurred after
January 1, 2012, on all DoD, NASA, and Coast Guard contracts awarded on
or after December 31, 2011. Concurrently, DoD, GSA, and NASA are
issuing a proposed rule (FAR Case 2012-025) to solicit comments on the
application of the requirements of section 803 to DoD, NASA, and Coast
Guard contracts entered into before December 31, 2011.
Dated: June 10, 2013.
Laura Auletta,
Director, Office of Governmentwide Acquisition Policy, Office of
Acquisition Policy, Office of Governmentwide Policy.
Federal Acquisition Circular (FAC) 2005-68 is issued under the
authority of the Secretary of Defense, the Administrator of General
Services, and the Administrator for the National Aeronautics and Space
Administration.
Unless otherwise specified, all Federal Acquisition Regulation
(FAR) and other directive material contained in FAC 2005-68 is
effective June 26, 2013.
Dated: June 17, 2013.
Richard Ginman,
Director, Defense Procurement and Acquisition Policy.
Dated: June 10, 2013.
Laura Auletta,
Acting Senior Procurement Executive, Office of Acquisition Policy, U.S.
General Services Administration.
Dated: June 13, 2013.
Ronald A. Poussard,
Director, Contract Management Division, Office of Procurement, National
Aeronautics and Space Administration.
[FR Doc. 2013-15211 Filed 6-25-13; 8:45 am]
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