[Federal Register Volume 76, Number 41 (Wednesday, March 2, 2011)]
[Proposed Rules]
[Pages 11414-11415]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-4528]
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DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System
48 CFR Part 231
Defense Federal Acquisition Regulation Supplement; Independent
Research and Development Technical Descriptions (DFARS Case 2010-D011)
AGENCY: Defense Acquisition Regulations System, Department of Defense
(DoD).
ACTION: Proposed rule.
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SUMMARY: DoD is proposing to amend the Defense Federal Acquisition
Regulation Supplement (DFARS) to require contractors to report
independent research and development (IR&D) projects generating annual
costs in excess of $50,000.
DATES: Comments on the proposed rule should be submitted in writing to
the address shown below on or before May 2, 2011, to be considered in
the formation of the final rule.
ADDRESSES: You may submit comments, identified by DFARS Case 2010-D011,
using any of the following methods:
Regulations.gov: http://www.regulations.gov.
Submit comments via the Federal eRulemaking portal by inputting
``DFARS Case 2010-D011'' under the heading ``Enter keyword or ID'' and
selecting ``Search.'' Select the link ``Submit a Comment'' that
corresponds with ``DFARS Case 2010-D011.'' Follow the instructions
provided at the ``Submit a Comment'' screen. Please include your name,
company name (if any), and ``DFARS Case 2010-D011'' on your attached
document. Follow the instructions for submitting comments.
E-mail: [email protected]. Include DFARS Case 2010-D011 in the subject
line of the message.
Fax: 703-602-0350.
Mail: Defense Acquisition Regulations System, Attn: Mr. Mark
Gomersall, OUSD (AT&L) DPAP (DARS), Room 3B855, 3060 Defense Pentagon,
Washington, DC 20301-3060.
Comments received generally will be posted without change to http://www.regulations.gov, including any personal information provided. To
confirm receipt of your comment(s), please check http://www.regulations.gov approximately two to three days after submission to
verify posting (except allow 30 days for posting of comments submitted
by mail).
FOR FURTHER INFORMATION CONTACT: Mr. Mark Gomersall, 703-602-0302.
SUPPLEMENTARY INFORMATION:
I. Background
This proposed rule revises requirements for reporting IR&D projects
that generate annual costs in excess of $50,000 to the Defense
Technical Information Center (DTIC). Beginning in the 1990s, DoD
reduced its technical exchanges with industry, in part to ensure
independence of IR&D. The result has been a loss of linkage between
funding and technological purpose. The reporting requirements, as
mandated by 10 U.S.C. 2372, will provide in-process information from
DoD-sponsored IR&D projects to increase effectiveness by providing
visibility into the technical content of industry IR&D activities to
meet DoD needs and promote the technical prowess of the industry.
Without the collection of this information, DoD will be unable to
maximize the value of the IR&D funds the Department disburses without
infringing on the independence of contractors to choose which
technologies to pursue in IR&D programs.
II. Executive Order 12866, Regulatory Planning and Review
This rule has been determined to be a significant regulatory action
and therefore is 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.
III. Regulatory Flexibility Act
DoD has prepared an initial regulatory flexibility analysis
consistent with 5 U.S.C. 603. A copy of the analysis may be obtained
from the point of contact specified herein. The analysis is summarized
as follows:
DoD does not expect this proposed rule to 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 reporting the IR&D projects utilizing the DTIC on-line input
form does not require contractors to expend significant effort or cost.
Furthermore, the threshold for reporting annual IR&D costs in excess of
$50,000, as set forth in the rule, ensures that the IR&D project
reporting requirements will not apply to a significant number of small
entities.
At this time, DoD is unable to estimate the number of small
entities to which this rule will apply. Therefore, DoD invites comments
from small business concerns and other interested parties on the
expected impact of this rule on small entities.
DoD will also consider comments from small entities concerning the
existing regulations in subparts affected by this rule in accordance
with 5 U.S.C. 610. Interested parties must submit such comments
separately and should cite 5 U.S.C. 610 (DFARS Case 2010-D011) in
correspondence.
IV. Paperwork Reduction Act
The proposed rule contains new information collection requirements
that require the approval of the Office of Management and Budget under
the Paperwork Reduction Act (44 U.S.C. chapter 35). DoD invites public
comments on the following aspects of the proposed rule: (a) Whether the
proposed collection of information is necessary for the proper
performance of the functions of DoD, including whether the information
will have practical utility; (b) the accuracy of the estimate of the
burden of the proposed information collection; (c) ways to enhance the
quality, utility, and clarity of the information to be collected; and
(d) ways to minimize the burden of the information collection on
respondents, including the use of automated collection techniques or
other forms of information technology. The following is a summary of
the information collection requirement.
Title: Defense Federal Acquisition Regulation Supplement (DFARS)
Part 231, Contract Cost Principles and Procedures.
Type of Request: New collection.
Number of Respondents: 700.
Responses per Respondent: 38.5.
Annual Responses: 26,950.
[[Page 11415]]
Average Burden per Response: 0.5 hours.
Annual Burden Hours: 13,475.
Needs and Uses: This information collection requires contractors to
report IR&D projects generating annual costs in excess of $50,000. The
information will provide in-process information from DoD-sponsored IR&D
projects to increase the effectiveness by providing visibility into the
technical content of industry IR&D activities to meet DoD needs.
Without the collection of this information, DoD will be unable to
maximize the value of the IR&D funds that it disburses without
infringing on the independence of a contractor to choose which
technologies to pursue in its independent research and development
program.
Affected Public: Businesses or other for-profit and not-for-profit
institutions.
Frequency: On occasion.
Written comments and recommendations on the proposed information
collection should be sent to Ms. Jasmeet Seehra at the Office of
Management and Budget, Desk Officer for DoD, Room 10236, New Executive
Office Building, Washington, DC 20503, or e-mail [email protected], with a copy to the Defense Acquisition Regulations
System, Attn: Mr. Mark Goemrsall, OUSD (AT&L) DPAP (DARS), Room 3B855,
3060 Defense Pentagon, Washington, DC 20301-3060. Comments can be
received from 30 to 60 days after the date of this notice, but comments
to OMB will be most useful if received by OMB within 30 days after the
date of this notice.
To request more information on this proposed information collection
or to obtain a copy of the proposal and associated collection
instruments, please write to the Defense Acquisition Regulations
System, Attn: Mr. Mark Gomersall, OUSD (AT&L) DPAP (DARS), Room 3B855,
3060 Defense Pentagon, Washington, DC 20301-3060, or e-mail
[email protected]. Include DFARS Case 2010-D011 in the subject line of the
message.
List of Subjects in 48 CFR Part 231
Government procurement.
Ynette R. Shelkin,
Editor, Defense Acquisition Regulations System.
Therefore, 48 CFR part 231 is proposed to be amended as follows:
PART 231--CONTRACT COST PRINCIPLES AND PROCEDURES
1. The authority citation for 48 CFR part 231 continues to read as
follows:
Authority: 41 U.S.C. 1303 and 48 CFR chapter 1.
2. Amend section 231.205-18 by adding paragraph (c)(iii)(C) and
revising the introductory text of paragraph (c)(iv) to read as follows:
231.205-18 Independent research and development and bid and proposal
costs.
* * * * *
(c) * * *
(iii) * * *
(C) For a contractor's annual IR&D costs in excess of $50,000 to be
allowable, the IR&D projects generating the costs must be reported to
the Defense Technical Information Center (DTIC) using the DTIC's on-
line input form and instructions. The inputs must be updated at least
annually and when the project is completed. Copies of the input and
updates must be made available for review by the cognizant
administrative contracting officer (ACO) and the cognizant Defense
Contract Audit Agency auditor to support the allowability of the costs.
(iv) For major contractors, the cognizant ACO or corporate ACO
shall--
* * * * *
[FR Doc. 2011-4528 Filed 3-1-11; 8:45 am]
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