4332 Federal Register / Vol. 71, No. 17 / Thursday, January 26, 2006 / Proposed Rules 

DEPARTMENT OF DEFENSE 

Office of the Secretary 

32 CFR Part 204 

[DoD–2006–OS–0005] 

RIN 0790–AH93 

User Charges 

AGENCY: Department of Defense. 

ACTION: Proposed rule. 

SUMMARY: The Department of Defense is 

revising 32 CFR Part 204 to better align 

it with OMB Circular A–25, ‘‘User 

Charges.’’ This part provides guidelines 

to establish appropriate charges for 

authorized services supplied by 

Department of Defense organizations 

when such services provide special 

benefits to an identifiable recipient 

beyond those that accrue to the general 

public. 

DATES: Comments must be received by 

March 27, 2006. 

ADDRESSES: You may submit comments, 

identified by docket number and or RIN 

number and title, by any of the 

following methods: 

• Federal eRulemaking Portal: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments. 

• Mail: Federal Docket Management 

System Office, 1160 Defense Pentagon, 

Washington, DC 20301–1160. 

Instructions: All submissions received 

must include the agency name and 

docket number or Regulatory 

Information Number (RIN) for this 

Federal Register document. The general 

policy for comments and other 

submissions from members of the public 

is to make these submissions available 

for public viewing on the Internet at 

http://regulations.gov as they are 

received without change, including any 

personal identifiers or contact 

information. 

FOR FURTHER INFORMATION CONTACT: Mr. 

T. Summers, 706–697–3193. 

SUPPLEMENTARY INFORMATION: 

Executive Order 12866, ‘‘Regulatory 

Planning and Review’’

It has been determined that 32 Code 

of Federal Regulations (CFR) Part 204 is 

not a significant regulatory action. The 

rule does not: 

(1) Have an annual effect to the 

economy of $100 million or more or 

adversely affect, in a material way, the 

economy; a section of the economy; 

productivity; competition; jobs; the 

environment; public health or safety; or 

State, local, or tribal governments or 

communities; 

(2) Create a serious inconsistency or 

otherwise interfere with an action taken 

or planned by another Agency; 

(3) Materially alter the budgetary 

impact of entitlements, grants, user fees, 

or loan programs, or the rights and 

obligations of recipients thereof; or 

(4) Raise novel legal or policy issues 

arising out of legal mandates, the 

President’s priorities, or the principles 

set forth in this Executive Order. 

Unfunded Mandates Reform Act (Sec. 

202, Pub. L. 104–4) 

It has been certified that this rule does 

not contain a Federal mandate that may 

result in the expenditure by State, local 

and tribal governments, in aggregate, or 

by the private sector, of $100 million or 

more in any one year. 

Public Law 96–354, ‘‘Regulatory 

Flexibility Act’’ (5 U.S.C. 601) 

It has been certified that 32 CFR part 

204 is not subject to the Regulatory 

flexibility Act (5 U.S.C. 601) because it 

would not, if promulgated, have a 

significant economic impact on a 

substantial number of small entities. 

The rule being promulgated provides 

guidelines to establish appropriate 

charges for authorized services supplied 

by Department of Defense organizations 

when such services provide special 

benefits to an identifiable recipient 

beyond those that accrue to the general 

public. 

Public Law 96–511, ‘‘Paperwork 

Reduction Act’’ (44 U.S.C. Chapter 35) 

It has been certified that 32 CFR Part 

204 does not impose any reporting or 

recordkeeping requirements under the 

Paperwork Reduction Act of 1995. 

Executive Order 13132, ‘‘Federalism’’

It has been certified that this rule does 

not have federalism implications, as set 

forth in Executive Order 13132. This 

rule does not have substantial direct 

effects on: 

(1) The States; 

(2) The relationship between the 

National Government and the States; or 

(3) The distribution of power and 

responsibilities among the various 

levels of government. 

List of Subjects in 32 CFR Part 204 

Accounting, Armed forces, 

Government property. 

Accordingly, 32 CFR Part 204 is 

proposed to be revised to read as 

follows: 

PART 204—USER CHARGES 

Sec. 

204.1 Purpose. 

204.2 Applicability. 

204.3 Policy and procedures. 

204.4 Responsiblities. 

204.5 Charges and fees. 

204.6 Collections. 

204.7 Legislative proposals. 

204.8 Benefits for which no charge shall be 

made. 

Authority: 31 U.S.C. 9701. 

§ 204.1 Purpose. 

This part implements the Department 

of Defense (DoD) program under Title 

31, United States Code, section 9701 

and Office of Management and Budget 

(OMB) Circular No. A–25, ‘‘User 

Charges,’’ to establish appropriate 

charges for authorized services supplied 

by DoD organizations. 

§ 204.2 Applicability. 

This part applies to the Office of the 

Secretary of Defense, the Military 

Departments, the Chairman of the Joint 

Chiefs of Staff, the Combatant 

Commands, and the Defense Agencies 

(hereafter referred to collectively as 

‘‘Dod Components’’). None of the 

provisions in this part should be 

construed as giving authority for the 

sale or lease of property, or the 

rendering of special services. Actions to 

convey such special benefits must be 

authorized by separate authority. This 

user charge policy is applicable except 

when other statutes or directives 

specifically direct other practices or 

procedures. 

§ 204.3 Policy and procedures. 

(a) General. It is DoD policy not to 

compete unfairly with available 

commercial facilities in providing 

special services or in the sale or lease of 

property to private parties and agencies 

outside the Federal Government. 

However, when a service (or privilege) 

provides special benefits to an 

identifiable recipient, beyond those that 

accrue to the general public, a charge 

shall be imposed (to recover the full cost 

to the Federal Government for providing 

the special benefit, or the market price), 

except as otherwise approved by the 

Under Secretary of Defense 

(Comptroller) and authorized by the 

Director of the OMB. A special benefit 

will be considered to accrue, and a user 

charge shall be imposed, when a 

Government service: 

(1) Enables the beneficiary to obtain 

more immediate or substantial gain or 

values (which may or may not be 

measurable in monetary terms) than 

those which accrue to the general 

public; or 

(2) Provides business stability or 

contributes to public confidence in the 

business activity of the beneficiary (e.g., 

insuring deposits in commercial banks), 

or 


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1Copies may be obtained at http://www.dtic.mil/ 

whs/directives/. 

2See footnote 1 to § 204.3(c)(1)(ii). 

3See footnote 1 to § 204.3(c)(1)(ii). 

4See footnote 1 to § 204.3(c)(1)(ii). 

5See footnote 1 to § 204.3(c)(1)(ii). 

6See footnote 1 to § 204.3(c)(1)(ii). 

7See footnote 1 to § 204.3(c)(1)(ii). 

8See footnote 1 to § 204.3(c)(1)(ii). 

(3) Is performed at the request of or 

for the convenience of the recipient, and 

is beyond the services regularly received 

by other members of the same industry 

or group or by the general public (e.g., 

receiving a passport, visa, airman’s 

certificate, or a Custom’s inspection 

after regular duty hours). 

(b) Costing. (1) Except as provided in 

§ 204.3(c) and § 204.8, a user charge 

shall be imposed to recover the full cost 

to the Federal Government of providing 

the service, resource, or good when the 

Government is acting in its capacity as 

sovereign. 

(2) User charges shall be based on 

market prices (as defined in 

§ 204.5(a)(4)) when the Government is 

not acting in its capacity as sovereign 

and is leasing or selling goods or 

resources, or is providing a service (e.g., 

leasing space in federally owned 

buildings). Under these business-type 

conditions, user charges need not be 

limited to the recovery of full cost and 

may yield net revenues. 

(3) User charges will be collected in 

advance of, or simultaneously with, the 

rendering of services unless 

appropriations and authority are 

provided in advance to allow 

reimbursable services. 

(4) Whenever possible, charges should 

be set as rates rather than fixed dollar 

amounts in order to adjust for changes 

in costs to the Government or changes 

in market prices of the good, resource, 

or service provided. 

(c) Exclusions (1) The provisions of 

this part to not apply when other 

statutes or DoD issuances require 

different practices or procedures, such 

as for: 

(i) Morale, welfare, and recreation 

services to military personnel and 

civilian employees of the Department of 

Defense and other services provided 

according to § 204.8. 

(ii) Sale or disposal of surplus 

property under approved programs 

(Chapter 5 of DoD 7000.14–R1). 

(iii) Services furnished the general 

public relating to, or in furtherance of, 

the Armed Forces recruiting program. 

(iv) Services furnished to 

representatives of the public 

information media in the interest of 

public understanding of the Armed 

Forces. 

(v) Armed Forces participation in 

public events. Charges for such 

participation are governed by the 

provisions of DoD Instruction 5410.19.2

(vi) Records made available to the 

public, under the Freedom of 

Information Act, pursuant to DoD 

Directive 5400.7.3 Charges for such 

record searches and copies of records 

are governed by Chapter 6 of DoD 

5400.7d–R.4

(vii) Services furnished to nonFederal audio-visual media. Charges for 

such services are governed by the 

provisions of DoD Instruction 5410.15.5

(viii) Government-developed 

computer programs released to nonFederal customers. Charges for software 

packages are governed by DoD 

Instruction 7930.2.6

(ix) Pricing of performance by DoD 

Working Capital Fund activities which 

shall be according to Volume 11B of 

DoD 7000.14–R. 

(x) Foreign Military Sales of Defense 

articles and services which shall be 

according to Volume 15 of DoD 

7000.14–R. 

(xi) Records made available to Privacy 

Act requesters shall be according to DoD 

Directive 5400.11 7 and DoD 5400.11–

R.8

(2) User charges may be waived by the 

Head of a DoD Component when: 

(i) Furnishing of their service without 

charge is an appropriate courtesy to a 

foreign government or international 

organization, or comparable fees are set 

on a reciprocal basis with a foreign 

country. 

(ii) The Director of the OMB has 

approved a request for an exception. 

Such exceptions may be recommended 

when: 

(A) The cost of collecting the fees 

would represent an unduly large part of 

the receipts from the activity; or 

(B) Any other conditions exists that, 

in the opinion of the Head of the DoD 

Component of his designee, justifies the 

exception. 

§ 204.4 Responsibilities. 

(a) The USD(C) shall develop and 

monitor policies governing user charges. 

(b) The Heads of the DoD 

Components, or designees, shall: 

(1) Identify each service or activity 

that may properly be the subject of a 

user charge under this part. 

(2) Determine the extent of the special 

benefit provided. 

(3) Apply the principles specified in 

§ 204.5(a) in determining full cost or 

market price. 

(4) Review the user charges 

biennially, to include: 

(i) Assurance that existing charges are 

adjusted to reflect unanticipated 

changes in costs or market values; and 

(ii) A review of all other programs to 

determine whether fees should be 

assessed for Government services or the 

user of Government goods or services. 

DoD Components should discuss the 

results of the annual review of user fees 

and any resultant proposals in the Chief 

Financial Officers Annual Report 

required by the Chief Financial Officers 

Act of 1990. 

(5) Initiate exception actions outlined 

in § 204.3(c)(2). All such actions shall be 

coordinated with the USD(C) prior to 

forwarding to the OMB. 

(i) Exceptions granted under 

§ 204.3(c)(2)(i) shall be renewed every 

four years to ensure that conditions 

warrant their continuation. 

(ii) Exceptions granted under 

§ 204.3(c)(2)(ii) shall be resubmitted for 

approval to the OMB every 4 years 

when conditions warrant their 

continuation. 

(6) Maintain readily accessible 

records of: 

(i) The services or activities covered 

by this part. 

(ii) The extent of special services 

provided. 

(iii) The exceptions to the general 

policy of this part. 

(iv) The information used to establish 

charges and the specific methods used 

in their determination. 

(v) The collections from each user 

charge imposed. 

(7) Maintain adequate records of the 

information used to establish charges 

and provide them upon request to OMB 

for the evaluation of the schedules and 

provide data on user charges to OMB 

according to the requirements in 

Circular No. A–11. 

(8) Develop legislative proposals as 

outlined in § 204.7 when they are 

statutory prohibitions or limitations on 

the assessment of user charges. 

§ 204.5 Charges and fees. 

(a) General. (1) All charges and fees 

shall be based on total cost to the U.S. 

Government or market price, whichever 

applies. 

(2) ‘‘Full cost’’ includes all direct and 

indirect costs associated with providing 

a good, resource, or service. These costs 

are outlined in Volume 11A, Chapter 1, 

paragraph 010203 of DoD 7000.14–R). 

(3) Full cost shall be determined or 

estimated from the best available 

records, and new cost accounting 

systems shall not be established solely 

for this purpose. 

(4) ‘‘Market price’’ means the price for 

a good, resource, or service that is based 

on competition in open markets, and 


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9See footnote 1 to § 204.3(c)(1)(ii). 

creates neither a shortage nor a surplus 

of the good, resource, or service. 

(i) When a substantial competitive 

demand exists for a good, resource, or 

service, its market price will be 

determined using commercial practices, 

for example: 

(A) By competitive bidding; or 

(B) By reference to prevailing prices 

in competitive markets for goods 

resources, or services that are the same 

or similar to those provided by the 

Government (e.g., campsites or grazing 

lands in the general vicinity of private 

ones) with adjustments as appropriate 

that reflect demand, level of service, and 

quality of the good or service. 

(ii) In the absence of substantial 

competitive demand, market price will 

be determined by taking into account 

the prevailing prices for goods 

resources, or services that are the same 

or substantially similar to those 

provided by the Government, and then 

adjusting the supply made available 

and/or price of the good, resource, or 

service so that there will be nether a 

shortage nor a surplus (e.g., campsites in 

remote areas). 

(5) Charges and fees established in 

advance of performance shall be based 

on the estimated cost of performance 

Projected amounts shall be reviewed 

biennially or whenever significant 

changes in cost or value occur. 

(6) Management controls (see DoD 

Directive 5010.38 9) must be established 

to ensure that charges and fees are 

developed and adjusted, using current, 

accurate, and complete data, to provide 

reimbursement conforming to statutory 

requirements. These controls also must 

ensure compliance with cash 

management and debt collection 

policies according to Volume 5 of DoD 

7000.14–R. 

(b) Information resources. These 

charges for services provided by data 

processing activities shall be 

determined by using the costs 

accumulated pursuant to requirements 

in OMB Circular A–130, ‘‘Management 

of Federal Information Resources.’’

(c) User fees for recurring services 

shall be established in advance, when 

feasible. 

(d) Lease or sale of property. Charges 

for lease or sale of property shall be 

based on the following: 

(1) Leases of military equipment or 

real estate. (i) In cases involving the 

lease or rental of military equipment, 

when there is no commercial 

counterpart, the charge will be based on 

the procedures attached in Volume 11A, 

Chapter 1, paragraph 010203.I of DoD 

7000.14–R. The current interest rate in 

OMB Circular A–94 will be used in the 

computation of interest on investment 

in assets. In determining the value, 

consideration may be given to the 

responsibility of the lessee to assume 

the risk of loss or damage to the 

property and to held the government 

harmless against claims or liabilities by 

the lessee or third parties. 

(ii) In cases involving real estate 

outgrants the consideration for a lease 

shall be determined by appraisal of fair 

market rental value according to 10 

U.S.C. 2667. 

(2) Sale of property. When there is 

legal authority to sell property to the 

public, the selling price of the property 

and related accessorial and 

administrative costs shall be computed 

according to Volume 11A, Chapter 1 of 

DoD 7000.14–R. 

§ 204.6 Collections. 

(a) Collections of charges and fees will 

be made in advance or simultaneously 

with the rendering of service unless 

appropriations and authority allow 

otherwise. The policies in this part, 

Volume 5 of DoD 7000.14–R, and DoD 

Directive 5010.38, shall be used in 

accounting, controlling, and managing 

cash and debt collections. 

(b) Unless a statute provides 

otherwise, user charge collections will 

be credited to the general fund of the 

Treasury as miscellaneous receipts, as 

required by 31 U.S.C. 3302. 

§ 204.7 Legislative proposals. 

(a) Legislative proposals that allow 

the DoD Component to retain 

collections may be appropriate when a 

fee is levied in order to finance a service 

that is intended to be provided on a 

substantially self-sustaining basis and 

thus is dependent upon adequate 

collections. 

(1) The authority to use fees credited 

to an appropriation is generally subject 

to limits set in annual appropriations 

language. However, it may be 

appropriate to request exemption from 

annual appropriations control, if a 

provision of the service is dependent on 

demand that is irregular or 

unpredictable (e.g., a fee to reimburse an 

agency for the cost of overtime pay of 

inspectors for services performed after 

regular duty hours). 

(2) Legislative proposals that permit 

fees to be credited to accounts shall be 

consistent with the full-cost recovery 

guidelines contained in this part. Any 

fees in excess of full cost recovery and 

any increase in fees to recover the 

portion of retirement costs which 

recoups all (funded or unfunded) 

accrual costs not covered by employee 

contributions are to be credited to the 

general fund of the Treasury as 

miscellaneous receipts. 

(b) Where the retention of the 

collections is appropriate, the DoD 

Components(s) concerned may submit 

appropriate legislative proposals under 

applicable legislative procedures 

included in OMB Circular A–19. These 

procedures may be obtained from the 

Office of Legislative Counsel, General 

Counsel, 1600 Defense Pentagon, 

Washington, DC 20301–1600. Proposals 

to remove user fee restrictions or retain 

collections shall: 

(1) Define in general terms the 

services for which charges will be 

assessed and the pricing mechanism 

that will be used. 

(2) Specify whether fees will be 

collected in advance of, or 

simultaneously with, the provision of 

service unless appropriations and 

authority are provided in advance to 

allow reimbursable services. 

(3) Specify where collections will be 

credited. Legislative proposals should 

not normally specify precise charges. 

The user charge schedule should be set 

by regulation to allow for the 

administrative updating of fees to reflect 

changing costs and market values. 

§ 204.8 Benefits for which no charge shall 

be made. 

(a) Documents and information 

requested by members of the Armed 

Forces when the documents or 

information requested is required by 

such personnel in their capacity as 

Service members. 

(b) Documents and information 

requested by members of the Armed 

Forces who are in a casualty status, or 

requested by their next of kin or legal 

representative. 

(c) The provisions of the address of 

record of a member or former member 

of the Armed Forces when the address 

is readily available through a directory 

(locator) service, and when the address 

is requested by a member of the Armed 

Forces or by a relative or a legal 

representative of a member of the 

Armed Forces, or when the address of 

record is requested by any source for the 

purpose of paying monies or forwarding 

property to a member or former member 

of the Armed Forces. 

(d) Services requested by, or on behalf 

of, a member or former member of the 

Armed Forces and civilian personnel of 

the Department of Defense (where 

applicable) or, if deceased, his or her 

next of kin or legal representative that 

pertain to the provision of: 

(1) Information required to obtain 

financial benefits regardless of the terms 

of separation from the Service. 


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(2) Document showing membership 

and military record in the Armed Forces 

if discharge or release was under 

honorable conditions, except as shown 

in paragraphs (d)(1) and (d)(4) of this 

section. 

(3) Information relating to a 

decoration or award or required for 

memoralization purposes. 

(4) Information relating to the review 

or change in type of discharge or 

correction of records. 

(5) Personal documents, such as birth 

certificates, when such documents are 

required to be furnished by the member. 

(6) Services that are furnished free 

according to statutes or Executive 

Orders. 

(7) Information from or copies of 

medical and dental records or x-ray 

films of patients or former patients of 

military medical or dental facilities, 

when such information is required for 

further medical or dental care, and 

requests for such data are submitted by 

an accredited medical facility, 

physician, or dentist, or requested by 

the patient, his or her next of kin, or 

legal representative. Other requests 

subject to the Privacy Act shall be 

according to DoD 5400.11–R, ‘‘DoD 

Privacy Act Program’’ (see 

§ 204.3(c)(1)(xi) of this part). 

(8) Services requested by, and 

furnished to, a member of Congress for 

official use. 

(9) Services requested by state, 

territorial, county, or municipal 

government, or an agency thereof, that 

is performing a function related to or 

furthering a DoD objective. 

(10) Services requested by a court, 

when such services will serve as a 

substitute for personal court appearance 

of a military or civilian employee of the 

Department of Defense. 

(11) Services requested by a nonprofit 

organization that is performing a 

function related to or furthering an 

objective of the Federal Government or 

that is in the interest of public health 

and welfare, including education. 

(12) Services requested by donors in 

connection with the conveyance or 

transfer of a gift to the Department of 

Defense. 

(13) Occasional and incidental 

services (including requests from 

residents of foreign countries), that are 

not requested often, when it is 

determined administratively that a fee 

would be inappropriate for the 

occasional and incidental services 

rendered. 

(14) Administrative services offered 

by reference or reading rooms to inspect 

public records, excluding copies of 

records or documents furnished. 

(15) Services rendered in response to 

requests for classification review of DoD 

classified records, submitted under 

Executive Order 12065, ‘‘National 

Security Information,’’ and 

implemented by DoD 5200.1–R. Such 

services consist of the work performed 

in conducting the classification review 

or in granting and completing an appeal 

from a denial of declassification 

following such review. 

(16) Services of a humanitarian nature 

performed in such emergency situations 

as life-saving transportation for nonArmed Forces patients, search and 

rescue operations, and airlift of 

personnel and supplies to a disaster site. 

This does not mean that inter- and intragovernmental agreements to recover all 

or part of costs shall not be negotiated. 

Rather, it means the recipients or 

beneficiary will not be assessed a ‘‘user 

charge.’’

Dated: January 20, 2006. 

L.M. Bynum, 

Alternate OSD Federal Register Liaison 

Officer, Department of Defense. 

[FR Doc. 06–730 Filed 1–25–06; 8:45 am] 

BILLING CODE 5001–06–M 

OFFICE OF MANAGEMENT AND 

BUDGET 

Office of Federal Procurement Policy 

48 CFR Part 9904 

Cost Accounting Standards Board; 

Accounting for Insurance Costs 

AGENCY: Cost Accounting Standards 

Board, Office of Federal Procurement 

Policy, OMB. 

ACTION: Staff discussion paper. 

SUMMARY: The Cost Accounting 

Standards (CAS) Board, Office of 

Federal Procurement Policy, invites 

public comments on the staff discussion 

paper (SDP) regarding CAS 416, 

‘‘Accounting for Insurance Costs.’’ In 

particular, this staff discussion paper 

addresses the use of the term 

‘‘catastrophic losses’’ in CAS 416–

50(b)(1). 

DATES: Comments must be in writing 

and must be received by March 27, 

2006. 

ADDRESSES: Due to delays in OMB’s 

receipt and processing of mail, 

respondents are strongly encouraged to 

submit comments electronically to 

ensure timely receipt. Electronic 

comments may be submitted to 

casb2@omb.eop.gov. Please put the full 

body of your comments in the text of the 

electronic message and also as an 

attachment readable in either MS Word 

or Corel WordPerfect. Please include 

your name, title, organization, postal 

address, telephone number, and e-mail 

address in the text of the message. 

Comments may also be submitted via 

facsimile to (202) 395–5105. 

FOR FURTHER INFORMATION CONTACT: Rein 

Abel, Cost Accounting Standards Board 

(telephone: 202–395–3254). 

SUPPLEMENTARY INFORMATION: 

A. Regulatory Process 

The Board’s rules, regulations and 

Standards are codified at 48 CFR 

Chapter 99. The Office of Federal 

Procurement Policy Act, 41 U.S.C. 

422(g)(1), requires the Board, prior to 

the establishment of any new or revised 

CAS, to complete a prescribed 

rulemaking process. The process 

generally consists of the following four 

steps: 

1. Consult with interested persons 

concerning the advantages, 

disadvantages and improvements 

anticipated in the pricing and 

administration of government contracts 

as a result of the adoption of a proposed 

Standard (e.g., prepare and publish a 

SDP). 

2. Promulgate an Advance Notice of 

Proposed Rulemaking (ANPRM). 

3. Promulgate a Notice of Proposed 

Rulemaking (NPRM). 

4. Promulgate a Final Rule. 

This SDP is issued by the Board in 

accordance with the requirements of 41 

U.S.C. 422(g)(1)(B), and is step one of 

the four-step process. 

B. Background and Summary 

The Office of Federal Procurement 

Policy, Cost Accounting Standards 

Board, is releasing a SDP on the use of 

the term ‘‘catastrophic losses’’ in CAS 

416–50(b)(1). Section 26(g)(1) of the 

Office of Procurement Policy Act, 41 

U.S.C. 422(g)(1), requires that the Board, 

prior to the promulgation of any new or 

revised CAS, consult with interested 

persons concerning the advantages, 

disadvantages, and improvements 

anticipated in the pricing and 

administration of Government contracts 

as a result of the adoption or revision of 

an existing Standard. The purpose of the 

SDP is to solicit public views with 

respect to the Board’s consideration of 

whether the word ‘‘catastrophic’’ should 

be replaced with a term such as 

‘‘significant’’ or ‘‘very large’’ in 48 CFR 

9904.416–50(b)(1) in order to (a) more 

closely align the Standard with what 

was intended by its original 

promulgators and (b) eliminate any 

confusion between 48 CFR 9904.416 

and FAR 31.205–19, Insurance cost. 


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