[Federal Register Volume 71, Number 12 (Thursday, January 19, 2006)]
[Rules and Regulations]
[Pages 3015-3016]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 06-459]
=======================================================================
-----------------------------------------------------------------------
OFFICE OF PERSONNEL MANAGEMENT
48 CFR Parts 1631, 1644 and 1652
RIN 3206-AJ20
Federal Employees Health Benefits Acquisition Regulation:
Technical Amendments
AGENCY: Office of Personnel Management.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Office of Personnel Management (OPM) is issuing this final
regulation to make minor technical amendments to the Federal Employees
Health Benefits Acquisition Regulation (FEHBAR).
DATES: Effective February 21, 2006.
ADDRESSES: This document is available for viewing at http://www.regulations.gov and at the U.S. Office of Personnel Management,
1900 E Street, NW., Washington, DC 20415.
FOR FURTHER INFORMATION CONTACT: Michael Kaszynski, Policy Analyst, at
202-606-0004 or e-mail [email protected].
SUPPLEMENTARY INFORMATION: The primary purpose of this rulemaking is to
make technical amendments to the large provider regulation which was
published on June 1, 2005. We are changing certain contract provision
effective dates. We have eliminated the reference to the Truth in
Negotiations Act in FEHBAR 1652.204-74. We have revised FEHBAR 1644.170
to show that carriers must follow commercially reasonable procurement
procedures that comply, when required, with the Federal Acquisition
Regulations' policies and procedures relating to competition and
contract pricing for the acquisition of both commercial and
noncommercial items. The intent of the clause is to require carriers to
abide by FAR competition and contract pricing policies when they
subcontract so that the carrier will be able to provide the Contracting
officer with information sufficient to enable the Contracting officer
to effectively carry out his or her duties under the FAR and the FEHBAR
when he or she evaluates subcontracts and determines whether to
consent. The regulation also clarifies that carriers should ensure that
the public accounting firms with which they contract for audits of FEHB
accounts are registered with the Public Company Accounting Oversight
Board (PCAOB).
Collection of Information Requirement
This rulemaking makes minor technical amendments to the Federal
Employees Health Benefits Acquisition Regulations. The rule does not
impose information collection and recordkeeping requirements that meet
the definition of the Paperwork Reduction Act of 1995's term
``collection of information'' which means obtaining, causing to be
obtained, soliciting, or requiring the disclosure to third parties or
the public, of facts or opinions by or for an agency, regardless of
form or format, calling for either answers to identical questions posed
to, or identical reporting or recordkeeping requirements imposed on ten
or more persons, other than agencies, instrumentalities, or employees
of the United States; or answers to questions posed to agencies,
instrumentalities, or employees of the United States which are to be
used for general statistical purposes. Consequently, it need not be
reviewed by the Office of Management and Budget under the authority of
the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.).
Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA) requires agencies to analyze
options for regulatory relief of small businesses. For purposes of the
RFA, small entities include small businesses, nonprofit organizations,
and government agencies with revenues of $11.5 million or less in any
one year. This rulemaking affects FEHB Program carriers and their
contractual arrangements which exceed the dollar threshold. Therefore,
I certify that this regulation will not have a significant economic
impact on a substantial number of small entities.
Regulatory Impact Analysis
We have examined the impact of this final rule as required by
Executive Order 12866 (September 1993, Regulatory Planning and Review),
the RFA (September 16, 1980, Pub. L. 96-354), section 1102(b) of the
Social Security Act, the Unfunded Mandates Reform Act of 1995, (Pub. L.
104-4), and Executive Order 13132. Executive Order 12866 (as amended by
Executive Order 13258, which merely assigns responsibility of duties)
directs 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). A regulatory impact analysis (RIA) must be
prepared for major rules with economically significant effects ($100
million or more in any one year). This rule is not considered a major
rule, as defined in title 5, United States Code, Section 804(2),
because we estimate its impact will only affect FEHB carriers and some
of their contractual arrangements. Any resulting economic impact would
not be expected to exceed the dollar threshold.
Executive Order 12866, Regulatory Review
This rule has been reviewed by the Office of Management and Budget
in accordance with Executive Order 12866.
List of Subjects in 48 CFR Parts 1631, 1644 and 1652
Government employees, Government procurement, Health insurance,
Reporting and recordkeeping requirements.
U.S. Office of Personnel Management.
Linda M. Springer,
Director.
0
Accordingly, OPM is amending chapter 16 of title 48, CFR, as follows:
CHAPTER 16--OFFICE OF PERSONNEL MANAGEMENT FEDERAL EMPLOYEES HEALTH
BENEFITS ACQUISITION REGULATION
0
1. The authority citation for 48 CFR parts 1631, 1644 and 1652
continues to read as follows:
Authority: 5 U.S.C. 8913; 40 U.S.C. 486(c); 48 CFR 1.301.
Subchapter E--General Contracting Requirements
PART 1631--CONTRACT COST PRINCIPLES AND PROCEDURES
Subpart 1631.2--Contracts With Commercial Organizations
0
2. A new 1631.205-82 is added to subpart 1631.2 to read as follows:
1631.205-82 Audits.
Carriers should ensure that the public accounting firms with which
they contract for audits of FEHB accounts are registered with the
Public Company Accounting Oversight Board (PCAOB).
[[Page 3016]]
Subchapter G--Contract Management
PART 1644--SUBCONTRACTING POLICIES AND PROCEDURES
Subpart 1644.1--General
0
3. Paragraph (a) of section 1644.170 is revised to read as follows:
1644.170 Policy for FEHB Program subcontracting.
(a) General policy. Carriers must follow commercially reasonable
procurement procedures that comply, when required, with the Federal
Acquisition Regulations (FAR) policies and procedures relating to
competition and contract pricing for the acquisition of both commercial
and noncommercial items.
* * * * *
Subchapter H--Clauses and Forms
PART 1652--CONTRACT CLAUSES
Subpart 1652.2--Texts of FEHB Clauses
0
4. The clause heading and the last sentence in clause 1652.204-70 is
amended to read as follows.
1652.204-70 Contractor records retention.
* * * * *
Contractor Records Retention (JUL 2005)
* * * * *
* * * This clause is effective prospectively as of the 2005
contract year.
(End of Clause)
0
5. Section 1652.204-74(a)(1) and the heading of the clause are revised
to read as follows:
1652.204-74 Large Provider Agreements.
* * * * *
Large Provider Agreements (OCT 2005)
(a) Notification and Information Requirements. (1) The
experience-rated Carrier must provide notice to the contracting
officer of its intent to enter into or to make a significant
modification of a Large Provider Agreement:
(i) Not less than 60 days before entering into any Large
Provider Agreement; and
(ii) Not less than 60 days before exercising a renewal or other
option, or significant modification to a Large Provider Agreement,
when such action would result in total costs to the FEHB Program of
an additional 20 percent or more above the existing contract.
However, if a carrier is exercising a simple renewal or other option
contemplated by a Large Provider Agreement that OPM previously
reviewed, and there are no significant changes, then a statement to
the effect that the renewal or other option is being exercised along
with the dollar amount is sufficient notice.
* * * * *
0
6. The clause heading in 1652.222-70 is revised to read as follows.
* * * * *
1652.222-70 Notice of Significant Events.
* * * * *
Notice of Significant Events (JUL 2005)
* * * * *
0
7. The clause heading in 1652.244-70 is revised to read as follows.
1652.244-70 Subcontracts.
* * * * *
Subcontracts (JUL 2005)
* * * * *
0
8. The clause heading in 1652.246-70 is revised to read as follows.
1652.246-70 FEHB Inspection.
* * * * *
FEHB Inspection (JUL 2005)
* * * * *
[FR Doc. 06-459 Filed 1-18-06; 8:45 am]
BILLING CODE 6325-39-P