[Federal Register Volume 70, Number 98 (Monday, May 23, 2005)]
[Rules and Regulations]
[Pages 29457-29458]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-9847]
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OFFICE OF MANAGEMENT AND BUDGET
Office of Federal Procurement Policy
48 CFR Part 9903
Cost Accounting Standards Board; Applicability of Cost Accounting
Standards Coverage
AGENCY: Cost Accounting Standards Board, Office of Federal Procurement
Policy, OMB.
ACTION: Interim rule with request for comment.
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SUMMARY: The Cost Accounting Standards (CAS) Board is revising the
criteria applicable to United Kingdom (UK) contractors for filing a
Disclosure Statement, Form No. CASB DS-1. This rulemaking is authorized
pursuant to section 26 of the Office of Federal Procurement Policy Act.
The Board is promulgating this interim rule in order to comply with a
specific request by the UK Ministry of Defence to simplify the
compliance process with CAS Board disclosure requirements for UK
contractors.
DATES: Effective Date: This rule is effective May 23, 2005.
Comment Date: Comments upon this interim rule must be in writing
and must be received by July 22, 2005.
ADDRESSES: Comments should be addressed to Dr. Rein Abel, Director of
Research, Cost Accounting Standards Board, Office of Federal
Procurement Policy, 725 17th Street, NW., Room 9013, Washington, DC
20503. Comments should be faxed to Rein Abel, at 202-395-5105.
FOR FURTHER INFORMATION CONTACT: Rein Abel, Director of Research, Cost
Accounting Standards Board (telephone: 202-395-3254).
SUPPLEMENTARY INFORMATION:
A. Background
Unlike certain other foreign contractors (e.g., German and
Canadian), UK contractors currently have to file a regular CAS Board
Disclosure Statement (DS-1) in accordance with CAS regulations. The UK
Ministry of Defence initially approached the Board with a request to
use the corresponding UK form ``Questionnaire on Method of Allocation
of Costs'' (QMAC), in lieu of the DS-1. After a review of the content
of the QMAC, the UK and U.S. representatives agreed that it did not
have the same scope as the DS-1. Therefore, it was agreed that to cover
the gap in the coverage a ``Supplemental QMAC'' was needed.
The CAS Board has approved a Supplemental QMAC that is acceptable
to the UK Ministry of Defence, and the CAS Board has received a request
from the UK Ministry of Defence to allow UK contractors to submit their
basic QMAC, together with the Supplemental QMAC, in lieu of the DS-1.
At its meeting on February 23, 2005, the Board agreed to this change in
the CAS requirements so that UK contractors with CAS-covered contracts
will be allowed to file the UK QMAC together with its Supplement in
lieu of the DS-1 required of U.S. contractors.
The Board believes that an interim rule with request for comment is
an appropriate mode for the promulgation of this rule. It is based on a
request by the UK Ministry of Defense for a specific action regarding
the CAS disclosure statement to be used by the UK defense contractors.
The Board believes that its response to this request as incorporated in
this rule is straight forward and, in essence, non controversial.
Therefore, the Board believes that in this instance the Board's usual
``four step'' promulgation process is not necessary or appropriate.
To effect this change, the interim rule includes the following
revisions:
(1) The deletion of 9903.201-1(b)(12) (all foreign contractors,
including UK contractors, are subject to the requirements at 9903.201-
1(b)(4));
(2) The deletion of 9903.201-4(d); and
(3) An amendment to 9903.202-1(e) to add the U.K. to the list of
the countries whose contractors may file a disclosure form adopted by
an agency of their own Government in lieu of the DS-1.
B. Paperwork Reduction Act
The Paperwork Reduction Act, Public Law 96-511, does not apply to
this rulemaking, because this rule imposes no paperwork burden on
offerors, affected contractors and subcontractors, or members of the
public which require the approval of OMB under 44 U.S.C. 3501, et seq.
C. Executive Order 12866 and the Regulatory Flexibility Act
The economic impact of this rule on contractors and subcontractors
is expected to be minor. As a result, the Board has determined that
this interim rule will not result in the promulgation of a ``major
rule'' under the provisions of Executive Order 12866, and that a
[[Page 29458]]
regulatory impact analysis will not be required. Furthermore, this rule
will not have a significant impact on a substantial number of small
businesses because small businesses are exempt from the application of
the Cost Accounting Standards. Therefore, this rule does not require a
regulatory flexibility analysis under the Regulatory Flexibility Act of
1980.
D. Public Comments
Interested persons are invited to participate by submitting data,
views or arguments with respect to this interim rule. All comments must
be in writing and submitted to the address indicated in the ADDRESSES
section.
List of Subjects in 48 CFR Part 9903
Accounting, Government procurement.
David H. Safavian,
Chair, Cost Accounting Standards Board.
0
For the reasons set forth in this preamble, chapter 99 of title 48 of
the Code of Federal Regulations is amended as set forth below:
PART 9903--CONTRACT COVERAGE
Subpart 9903.2--CAS Program Requirements
9903.201-1 [Amended]
0
1. Section 9903.201-1 is amended by removing and reserving paragraph
(b)(12).
9903.201-4 [Amended]
0
2. Section 9903.201-4 is amended by removing and reserving paragraph
(d).
0
3. Section 9903.202-1 is amended by revising paragraph (e) to read as
follows:
9903.202-1 General requirements.
* * * * *
(e) Foreign contractors and subcontractors who are required to
submit a Disclosure Statement may, in lieu of filing a Form No CASB-DS-
1, make disclosure by using a disclosure form prescribed by an agency
of its Government, provided that the Cost Accounting Standards Board
determines that the information disclosed by that means will satisfy
the objectives of Public Law 100-679. The use of alternative forms has
been approved for the contractors of the following countries:
(1) Canada.
(2) Federal Republic of Germany.
(3) United Kingdom.
* * * * *
[FR Doc. 05-9847 Filed 5-20-05; 8:45 am]
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