[Federal Register Volume 75, Number 226 (Wednesday, November 24, 2010)]
[Rules and Regulations]
[Pages 71564-71565]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-29494]
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DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System
48 CFR Part 242
RIN 0750-AG77
Defense Federal Acquisition Regulation Supplement; Contractor
Insurance/Pension Review (DFARS Case 2009-D025)
AGENCY: Defense Acquisition Regulations System, Department of Defense
(DoD).
ACTION: Final rule.
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SUMMARY: The Department of Defense (DoD) is issuing a final rule to
remove and relocate the requirements for conducting a Contractor
Insurance/Pension Review from Procedures, Guidance, and Information
(PGI) to the Defense Federal Acquisition Regulation Supplement (DFARS).
DATES: Effective Date: November 24, 2010.
FOR FURTHER INFORMATION CONTACT: Ms. Mary Overstreet, 703-602-0311.
SUPPLEMENTARY INFORMATION:
I. Background
This final rule relocates requirements for Contractor Insurance/
Pension Review to DFARS 242.7302 from PGI 242.7302.
DoD published a proposed rule at 75 FR 33237 on June 11, 2010, and
the public comment period closed on August 10, 2010. No public comments
were received. Therefore, DoD is making no changes to the final rule.
II. Executive Order 12866
This rule was not subject to Office of Management and Budget review
under Executive Order 12866, dated September 30, 1993. This rule is not
a major rule under 5 U.S.C. 804.
III. Regulatory Flexibility Act
DoD certifies 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. The
rule is consistent with existing policy that a CIPR is only required
for those contractors that have $50 million in qualifying sales to the
Government. The rule merely relocates the requirements for CIPR from
the PGI to the DFARS.
IV. Paperwork Reduction Act
The Paperwork Reduction Act (Pub. L. 96-511) applies because
information collection requirements in the proposed rule at DFARS
subpart 242.73 are currently approved under Office of Management and
Budget Control Number 0704-0250. Relocating the requirement has no
impact on the information collection requirement.
List of Subjects in 48 CFR Part 242
Government procurement.
Ynette R. Shelkin,
Editor, Defense Acquisition Regulations System.
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Therefore, 48 CFR part 242 is amended as follows:
PART 242--CONTRACT ADMINISTRATION AND AUDIT SERVICES
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1. The authority citation for 48 CFR part 242 continues to read as
follows:
[[Page 71565]]
Authority: 41 U.S.C. 421 and 48 CFR chapter 1.
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2. Revise section 242.7302 to read as follows:
242.7302 Requirements.
(a)(1) An in-depth CIPR as described at DFARS 242.7301(a)(1) shall
be conducted only when--
(i) A contractor has $50 million of qualifying sales to the
Government during the contractor's preceding fiscal year; and
(ii) The ACO, with advice from DCMA insurance/pension specialists
and DCAA auditors, determines a CIPR is needed based on a risk
assessment of the contractor's past experience and current
vulnerability.
(2) Qualifying sales are sales for which cost or pricing data were
required under 10 U.S.C. 2306a, as implemented in FAR 15.403, or that
are contracts priced on other than a firm-fixed-price or fixed-price
with economic price adjustment basis. Sales include prime contracts,
subcontracts, and modifications to such contracts and subcontracts.
(b) A special CIPR that concentrates on specific areas of a
contractor's insurance programs, pension plans, or other deferred
compensation plans shall be performed for a contractor (including, but
not limited to, a contractor meeting the requirements in paragraph (a)
of this section) when any of the following circumstances exists, but
only if the circumstance(s) may result in a material impact on
Government contract costs:
(1) Information reveals a deficiency in the contractor's insurance/
pension program.
(2) The contractor proposes or implements changes in its insurance,
pension, or deferred compensation plans.
[FR Doc. 2010-29494 Filed 11-23-10; 8:45 am]
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