3762 Federal Register / Vol. 65, No. 15 / Monday, January 24, 2000 / Proposals

DEPARTMENT OF DEFENSE

GENERAL SERVICES

ADMINISTRATION

NATIONAL AERONAUTICS AND

SPACE ADMINISTRATION

48 CFR Parts 43 and 52

[FAR Case 1999–606]

RIN 9000–AI65

Federal Acquisition Regulation; Timeand-Materials or Labor-Hours

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

clarify the requirements regarding

changes to time-and-materials and

labor-hour contracts.

DATES: Interested parties should submit

comments in writing on or before March

24, 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 e-mail comments via the

Internet to:

farcase.1999l606@gsa.gov.

Please submit comments only and cite

FAR case 1999–606 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 Ms. Linda Klein, Procurement

Analyst, at (202) 501–3775. Please cite

FAR case 1999–606.

SUPPLEMENTARY INFORMATION:

A. Background

This proposed rule amends the FAR

to conform the guidance in the clause at

FAR 52.243–3, Changes—Time-andMaterials or Labor-Hours, with the

guidance in Alternate II of the clause at

FAR 52.243–1, Changes—Fixed Price,

because most of the work performed

under time-and-materials or labor-hour

contracts involves services.

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

contractors are entitled to an equitable

adjustment to contract terms and

conditions if a change order is issued

under the Changes clause of the

contract. Therefore, we have not

prepared an Initial Regulatory

Flexibility Analysis. Comments are

invited from small businesses and other

interested parties. The Councils will

consider comments from small entities

concerning the affected FAR subparts 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 1999–606), in

correspondence.

C. Paperwork Reduction Act

The Paperwork Reduction Act does

not apply because the proposed changes

to the FAR do not impose information

collection requirements that require the

approval of the Office of Management

and Budget under 44 U.S.C. 3501, et

seq.

List of Subjects in 48 CFR Parts 43 and

52

Government procurement.

Dated: January 18, 2000.

Edward C. Loeb,

Director, Federal Acquisition Policy Division.

Therefore, DoD, GSA, and NASA

propose that 48 CFR parts 43 and 52 be

amended as set forth below:

1. The authority citation for 48 CFR

parts 43 and 52 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).

PART 43—CONTRACT

MODIFICATIONS

2. Amend section 43.205 by revising

paragraph (c) to read as follows:

43.205 Contract clauses.

* * * * *

(c) Insert the clause at 52.243–3,

Changes—Time-and-Materials or LaborHours, in solicitations and contracts

when a time-and-materials or labor-hour

contract is contemplated. The

contracting officer may vary the 30-day

period in paragraph (c) of the clause

according to agency procedures.

* * * * *

PART 52—SOLICITATION PROVISIONS

AND CONTRACT CLAUSES

3. Amend section 52.243–3 by—

a. Revising the introductory text;

b. Revising the date of the clause;

c. Revising paragraph (a) of the clause;

d. In the introductory text of

paragraph (b) and in paragraph (b)(4) by

removing ‘‘shall’’ and adding ‘‘will’’ in

their place;

e. In the first sentence of paragraph (c)

by removing ‘‘must’’ and adding ‘‘shall’’

in its place; and

f. Revising paragraph (d). The revised

text reads as follows:

52.243–3 Changes—Time-and-Materials or

Labor-Hours.

As prescribed in 43.205(c), insert the

following clause:

Changes—Time-and-Materials or LaborHours (Date)

(a) The Contracting Officer may at any

time, by written order, and without notice to

the sureties, if any, make changes within the

general scope of this contract in any one or

more of the following:

(1) Description of services to be performed.

(2) Time of performance (i.e., hours of the

day, days of the week, etc.).

(3) Place of performance of the services.

(4) Drawings, designs, or specifications

when the supplies to be furnished are to be

specially manufactured for the Government

in accordance with the drawings, designs, or

specifications.

(5) Method of shipment or packing of

supplies.

(6) Place of delivery.

(7) Amount of Government-furnished

property.

* * * * *

(d) Failure to agree to any adjustment will

be a dispute under the Disputes clause.

However, nothing in this clause excuses the

Contractor from proceeding with the contract

as changed. (End of clause)

[FR Doc. 00–1589 Filed 1–21–00; 8:45 am]

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