Federal Register / Vol. 65, No. 128 / Monday, July 3, 2000 / Proposed Rules 41267

removing ‘‘shall’’ and adding ‘‘must’’ in

its place; and revising paragraph (a)(4)

to read as follows:

44.202–2 Considerations.

(a) * * *

(4) Has the contractor complied with

the prime contract requirements

regarding—

(i) Small business subcontracting,

including, if applicable, its plan for

subcontracting with small, small

disadvantaged and women-owned small

business concerns (see part 19); and

(ii) Purchase from nonprofit agencies

designated by the Committee for

Purchase From People Who Are Blind

or Severely Disabled (Javits-WagnerO’Day Act (JWOD) (41 U.S.C. 48)) (see

part 8)?

* * * * *

PART 52—SOLICITATION PROVISIONS

AND CONTRACT CLAUSES

5. In section 52.208–9, revise the

section and clause headings, paragraphs

(a) and (b), and the second sentence in

paragraph (c) to read as follows:

52.208–9 Contractor Use of Mandatory

Sources of Supply or Services.

* * * * *

Contractor Use of Mandatory Sources of

Supply or Services (Date)

(a) Certain supplies or services to be

provided under this contract for use by the

Government are required by law to be

obtained from the Committee for Purchase

From People Who Are Blind or Severely

Disabled (the Committee) under the JavitsWagner-O’Day Act (JWOD) (41 U.S.C. 48).

Additionally, certain of these supplies are

available from the Defense Logistics Agency

(DLA), the General Services Administration

(GSA), or the Department of Veterans Affairs

(VA). The Contractor shall obtain mandatory

supplies or services to be provided for

Government use under this contract from the

specific sources indicated in the contract

schedule.

(b) The Contractor shall immediately notify

the Contracting Officer if a mandatory source

is unable to provide the supplies or services

by the time required, or if the quality of

supplies or services provided by the

mandatory source is unsatisfactory. The

Contractor shall not purchase the supplies or

services from other sources until the

Contracting Officer has notified the

Contractor that the Committee or a JWOD

central nonprofit agency has authorized

purchase from other sources.

(c) * * * For mandatory supplies or

services that are not available from DLA/

GSA/VA, price and delivery information is

available from the appropriate central

nonprofit agency. * * *

* * * * *

(End of clause)

[FR Doc. 00–16454 Filed 6–30–00; 8:45 am]

BILLING CODE 6820–EP–U

DEPARTMENT OF DEFENSE

GENERAL SERVICES

ADMINISTRATION

NATIONAL AERONAUTICS AND

SPACE ADMINISTRATION

48 CFR Part 15

[FAR Case 2000–300]

RIN 9000–AI83

Federal Acquisition Regulation; Truth

in Negotiations Act Threshold

AGENCIES: Department of Defense (DoD),

General Services Administration (GSA),

and National Aeronautics and Space

Administration (NASA).

ACTION: Proposed rule.

SUMMARY: The Civilian Agency

Acquisition Council and the Defense

Acquisition Regulations Council

(Councils) are proposing to amend the

Federal Acquisition Regulation (FAR) to

implement the requirements of 10

U.S.C. 2306a(a)(7) and 41 U.S.C.

254b(a)(7). These statutes require review

of the Truth in Negotiations Act

threshold every 5 years, starting October

1, 1995.

DATES: Interested parties should submit

comments in writing on or before

September 1, 2000, to be considered in

the formulation of a final rule.

ADDRESSES: Submit written comments

to: General Services Administration,

FAR Secretariat (MVRS), 1800 F Street,

NW, Room 4035, ATTN: Laurie Duarte,

Washington, DC 20405. Submit

electronic comments via the Internet to:

farcase.2000–300@gsa.gov

Please submit comments only and cite

FAR case 2000–300 in all

correspondence related to this case.

FOR FURTHER INFORMATION CONTACT: The

FAR Secretariat, Room 4035, GS

Building, Washington, DC, 20405, at

(202) 501–4755 for information

pertaining to status or publication

schedules. For clarification of content,

contact Mr. Jeremy Olson, at (202) 501–

0692. Please cite FAR case 2000–300.

SUPPLEMENTARY INFORMATION:

A. Background

This proposed rule amends FAR

15.403–4 to implement the requirements

of 10 U.S.C. 2306a(a)(7) and 41 U.S.C.

254b(a)(7). These statutes require review

of the Truth in Negotiations Act

threshold every 5 years, starting October

1, 1995. The proposed increase of

$50,000 is based on escalation of 10.22

percent from 1994 to 2000, calculated

using the gross domestic product

deflators from the fiscal year 2001

budget.

This rule was not subject to Office of

Management and Budget 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. Regulatory Flexibility Act

The Councils do 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 most

contracts and subcontracts with small

entities do not require the submission of

cost or pricing data. An Initial

Regulatory Flexibility Analysis has,

therefore, not been performed. We invite

comments from small businesses and

other interested parties. The Councils

will consider comments from small

entities concerning the affected FAR

Part in accordance with 5 U.S.C. 610.

Interested parties must submit such

comments separately and should cite 5

U.S.C. 601, et seq. (FAR case 2000–300),

in correspondence.

C. Paperwork Reduction Act

The Paperwork Reduction Act

applies; however, the proposed changes

to the FAR do not significantly change

the information collection requirements

that have been approved by the Office

of Management and Budget under 44

U.S.C. 3501, et seq., under OMB

Clearance Number 9000–0045.

List of Subjects in 48 CFR Part 15

Government procurement.

Dated: June 26, 2000.

Edward C. Loeb,

Director, Federal Acquisition Policy Division.

Therefore, DoD, GSA, and NASA

propose that 48 CFR part 15 be amended

as set forth below:

PART 15—CONTRACTING BY

NEGOTIATION

1. The authority citation for 48 CFR

part 15 continues to read as follows:

Authority: 40 U.S.C. 486(c); 10 U.S.C.

chapter 137; and 42 U.S.C. 2473(c).

2. Amend section 15.403–4 by

revising paragraph (a)(1) to read as

follows:

15.403–4 Requiring cost or pricing data

(10 U.S.C. 2306a and 41 U.S.C. 254b).

(a)(1) The contracting officer must

obtain cost or pricing data only if the

contracting officer concludes that none

of the exceptions in 15.403–1(b) applies.

However, if the contracting officer has

sufficient information available to

41268 Federal Register / Vol. 65, No. 128 / Monday, July 3, 2000 / Proposed Rules

determine price reasonableness, then

the contracting officer should consider

requesting a waiver under the exception

at 15.403–1(b)(4). The threshold for

obtaining cost or pricing data is

$550,000. Unless an exception applies,

cost or pricing data are required before

accomplishing any of the following

actions expected to exceed the current

threshold or, for existing contracts, the

threshold specified in the contract:

(i) The award of any negotiated

contract (except for undefinitized

actions such as letter contracts).

(ii) The award of a subcontract at any

tier, if the contractor and each highertier subcontractor were required to

submit cost or pricing data (but see

waivers at 15.403–1(c)(4)).

(iii) The modification of any sealed

bid or negotiated contract (whether or

not cost or pricing data were initially

required) or any subcontract covered by

paragraph (a)(1)(ii) of this subsection.

Price adjustment amounts must

consider both increases and decreases

(e.g., a $200,000 modification resulting

from a reduction of $400,000 and an

increase of $200,000 is a pricing

adjustment exceeding $550,000). This

requirement does not apply when

unrelated and separately priced changes

for which cost or pricing data would not

otherwise be required are included for

administrative convenience in the same

modification. Negotiated final pricing

actions (such as termination settlements

and total final price agreements for

fixed-price incentive and

redeterminable contracts) are contract

modifications requiring cost or pricing

data if—

(A) The total final price agreement for

such settlements or agreements exceeds

the pertinent threshold set forth at

paragraph (a)(1) of this subsection; or

(B) The partial termination settlement

plus the estimate to complete the

continued portion of the contract

exceeds the pertinent threshold set forth

at paragraph (a)(1) of this subsection

(see 49.105(c)(15)).

* * * * *

[FR Doc. 00–16523 Filed 6–30–00; 8:45 am]

BILLING CODE 6820–EP–U