[Federal Register Volume 69, Number 117 (Friday, June 18, 2004)]
[Rules and Regulations]
[Pages 34241-34242]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-13625]
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Part 31
[FAC 2001-24; FAR Case 2002-006; Item VIII]
RIN 9000-AJ65
Federal Acquisition Regulation; Application of Cost Principles
and Procedures and Accounting for Unallowable Costs
AGENCIES: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Final rule.
-----------------------------------------------------------------------
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 revise FAR 31.204,
Application of principles and procedures, to improve clarity and
structure.
DATES: Effective Date: July 19, 2004.
FOR FURTHER INFORMATION CONTACT: The FAR Secretariat at (202) 501-4755
for information pertaining to status or publication schedules. For
clarification of content, contact Mr. Edward Loeb, Policy Advisor, at
(202) 501-0650. Please cite FAC 2001-24, FAR case 2002-006.
SUPPLEMENTARY INFORMATION:
A. Background
DoD, GSA, and NASA published a proposed rule in the Federal
Register at (68 FR 28108) on May 22, 2003, with request for comments.
The rule proposed to amend FAR 31.204, Application of principles and
procedures, and FAR 31.201-6, Accounting for unallowable costs. Nine
respondents submitted comments; however, no comments related to FAR
31.204. Therefore, the Councils concluded that the proposed rule should
be converted to a final rule without changes.
[[Page 34242]]
The proposed FAR rule also included proposed revisions to FAR
31.201-6, Accounting for unallowable costs. Due to significant changes
made as a result of public comments received, the Councils have decided
that the proposed revisions to FAR 31.201-6 will be published as a
second proposed rule in a Federal Register notice under new FAR case
2004-006.
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. Public Comments
There were no public comments received on section 31.204.
C. Regulatory Flexibility Act
The Department of Defense, the General Services Administration, and
the National Aeronautics and Space Administration certify that this
final rule will not 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 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 principles and procedures discussed in this rule. For FY 2003,
only 2.4 % of all contract actions were cost contracts awarded to small
business.
D. 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 31
Government procurement.
Dated: June 10, 2004.
Ralph J. De Stefano,
Acting Director, Acquisition Policy Division.
0
Therefore, DoD, GSA, and NASA amend 48 CFR part 31 as set forth below:
PART 31--CONTRACT COST PRINCIPLES AND PROCEDURES
0
1. The authority citation for 48 CFR part 31 is revised to read as
follows:
Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 42
U.S.C. 2473(c).
0
2. Amend section 31.204 in the first sentence of paragraph (a) by
removing ``shall be allowed'' and adding ``are allowable'' in its
place; by revising paragraph (b); and by redesignating paragraph (c) as
paragraph (d) and adding a new paragraph (c) to read as follows:
31.204 Application of principles and procedures.
* * * * *
(b)(1) For the following subcontract types, costs incurred as
reimbursements or payments to a subcontractor are allowable to the
extent the reimbursements or payments are for costs incurred by the
subcontractor that are consistent with this part:
(i) Cost-reimbursement.
(ii) Fixed-price incentive.
(iii) Price redeterminable (i.e., fixed-price contracts with
prospective price redetermination and fixed-ceiling-price contracts
with retroactive price redetermination).
(2) The requirements of paragraph (b)(1) of this section apply to
any tier above the first firm-fixed-price subcontract or fixed-price
subcontract with economic price adjustment provisions.
(c) Costs incurred as payments under firm-fixed-price subcontracts
or fixed-price subcontracts with economic price adjustment provisions
or modifications thereto, for which subcontract cost analysis was
performed are allowable if the price was negotiated in accordance with
31.102.
* * * * *
[FR Doc. 04-13625 Filed 6-17-04; 8:45 am]
BILLING CODE 6820-EP-P