58336 Federal Register / Vol. 71, No. 191 / Tuesday, October 3, 2006 / Proposed Rules 

Unfunded Mandates Reform Act 

The Unfunded Mandates Reform Act 

of 1995 (2 U.S.C. 1531–1538) requires 

Federal agencies to assess the effects of 

their discretionary regulatory actions. In 

particular, the Act addresses actions 

that may result in the expenditure by a 

State, local, or tribal government, in the 

aggregate, or by the private sector of 

$100,000,000 or more in any one year. 

Though this proposed rule will not 

result in such an expenditure, we do 

discuss the effects of this rule elsewhere 

in this preamble. 

Taking of Private Property 

This proposed rule would not affect a 

taking of private property or otherwise 

have taking implications under 

Executive Order 12630, Governmental 

Actions and Interference with 

Constitutionally Protected Property 

Rights. 

Civil Justice Reform 

This proposed rule meets applicable 

standards in sections 3(a) and 3(b)(2) of 

Executive Order 12988, Civil Justice 

Reform, to minimize litigation, 

eliminate ambiguity, and reduce 

burden. 

Protection of Children 

We have analyzed this proposed rule 

under Executive Order 13045, 

Protection of Children from 

Environmental Health Risks and Safety 

Risks. This rule is not an economically 

significant rule and would not create an 

environmental risk to health or risk to 

safety that might disproportionately 

affect children. 

Indian Tribal Governments 

This proposed rule does not have 

tribal implications under Executive 

Order 13175, Consultation and 

Coordination with Indian Tribal 

Governments, because it would not have 

a substantial direct effect on one or 

more Indian tribes, on the relationship 

between the Federal Government and 

Indian tribes, or on the distribution of 

power and responsibilities between the 

Federal Government and Indian tribes. 

Energy Effects 

We have analyzed this proposed rule 

under Executive Order 13211, Actions 

Concerning Regulations That 

Significantly Affect Energy Supply, 

Distribution, or Use. We have 

determined that it is not a ‘‘significant 

energy action’’ under that order because 

it is not a ‘‘significant regulatory action’’

under Executive Order 12866 and is not 

likely to have a significant adverse effect 

on the supply, distribution, or use of 

energy. The Administrator of the Office 

of Information and Regulatory Affairs 

has not designated it as a significant 

energy action. Therefore, it does not 

require a Statement of Energy Effects 

under Executive Order 13211. 

Technical Standards 

The National Technology Transfer 

and Advancement Act (NTTAA) (15 

U.S.C. 272 note) directs agencies to use 

voluntary consensus standards in their 

regulatory activities unless the agency 

provides Congress, through the Office of 

Management and Budget, with an 

explanation of why using these 

standards would be inconsistent with 

applicable law or otherwise impractical. 

Voluntary consensus standards are 

technical standards (e.g., specifications 

of materials, performance, design, or 

operation; test methods; sampling 

procedures; and related management 

systems practices) that are developed or 

adopted by voluntary consensus 

standards bodies. 

This proposed rule does not use 

technical standards. Therefore, we did 

not consider the use of voluntary 

consensus standards. 

Environment 

We have analyzed this proposed rule 

under Commandant Instruction 

M16475.lD, and Department of 

Homeland Security Management 

Directive 5100.1, which guides the 

Coast Guard in complying with the 

National Environmental Policy Act of 

1969 (NEPA) (42 U.S.C. 4321–4370f), 

and have made a preliminary 

determination that there are no factors 

in this case that would limit the use of 

a categorical exclusion under section 

2.B.2 of the Instruction. Therefore, we 

believe that this rule should be 

categorically excluded, under figure 2–

1, paragraph (32)(e), of the Instruction, 

from further environmental 

documentation. Under figure 2–1, 

paragraph (32)(e), of the Instruction, an 

‘‘Environmental Analysis Check List’’

and a ‘‘Categorical Exclusion 

Determination’’ are not required for this 

rule. However, comments on this 

section will be considered before the 

final rule. 

List of Subjects in 33 CFR Part 117 

Bridges. 

For the reasons discussed in the 

preamble, the Coast Guard proposes to 

amend 33 CFR part 117 as follows: 

PART 117—DRAWBRIDGE 

OPERATION REGULATIONS 

1. The authority citation for part 117 

continues to read as follows: 

Authority: 33 U.S.C. 499; Department of 

Homeland Security Delegation No. 0170.1; 33 

CFR 1.05–1(g); section 117.255 also issued 

under the authority of Pub. L. 102–587, 106 

Stat. 5039. 

2. Revise § 117.287(b–1) and add (c) to 

read as follows: 

§ 117.287 Gulf Intracoastal Waterway. 

* * * * * 

(b–1) Stickney Point (SR 72) Bridge, 

mile 68.6. The draw need only open on 

the hour, 20-minutes after the hour, and 

40-minutes after the hour, from 6 a.m. 

to 10 p.m., Monday through Friday, 

except Federal holidays. 

(c) The draw of the Siesta Drive 

Bridge, mile 71.6 at Sarasota, Florida 

shall open on signal, except that from 7 

a.m. to 6 p.m., Monday through Friday, 

except Federal holidays, the draw need 

open only on the hour, twenty minutes 

past the hour and forty minutes past the 

hour. On weekends and Federal 

holidays, from 11 a.m. to 6 p.m., the 

draw need open only on the hour, 

twenty minutes past the hour and forty 

minutes past the hour. 

* * * * * 

Dated: September 21, 2006. 

J. A. Watson, 

Captain, U.S. Coast Guard, Commander, 

Seventh Coast Guard District Acting. 

[FR Doc. E6–16285 Filed 10–2–06; 8:45 am] 

BILLING CODE 4910–15–P 

DEPARTMENT OF DEFENSE 

GENERAL SERVICES 

ADMINISTRATION 

NATIONAL AERONAUTICS AND 

SPACE ADMINISTRATION 

48 CFR Part 30 

[FAR Case 2005–027; Docket 2006–0020; 

Sequence 9] 

RIN 9000–AK60 

Federal Acquisition Regulation; FAR 

Case 2005–027, FAR Part 30—CAS 

Administration 

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 recommendations to change 

the regulations related to the 


ycherry on PROD1PC64 with PROPOSALS
Federal Register / Vol. 71, No. 191 / Tuesday, October 3, 2006 / Proposed Rules 58337 

administration of the Cost Accounting 

Standards (CAS). 

DATES: Interested parties should submit 

written comments to the FAR 

Secretariat on or before December 4, 

2006 to be considered in the 

formulation of a final rule. 

ADDRESSES: Submit comments 

identified by FAR case 2005–027 by any 

of the following methods: 

• Federal eRulemaking Portal: 

http://www.regulations.gov. Search 

for any document by first selecting the 

proper document types and selecting 

‘‘Federal Acquisition Regulation’’ as the 

agency of choice. At the ‘‘Keyword’’

prompt, type in the FAR case number 

(for example, FAR Case 2006–001) and 

click on the ‘‘Submit’’ button. You may 

also search for any document by 

clicking on the ‘‘Advanced search/ 

document search’’ tab at the top of the 

screen, selecting from the agency field 

‘‘Federal Acquisition Regulation’’, and 

typing the FAR case number in the 

keyword field. Select the ‘‘Submit’’

button. 

• Fax: 202–501–4067. 

• Mail: General Services 

Administration, Regulatory Secretariat 

(VIR), 1800 F Street, NW, Room 4035, 

ATTN: Laurieann Duarte, Washington, 

DC 20405. 

Instructions: Please submit comments 

only and cite FAR case 2005–027 in all 

correspondence related to this case. All 

comments received will be posted 

without change to http:// 

www.regulations.gov, including any 

personal and/or business confidential 

information provided. 

FOR FURTHER INFORMATION CONTACT For 

clarification of content, contact Mr. 

Jeremy Olson, at (202) 501–3221. For 

information pertaining to status or 

publication schedules, contact the FAR 

Secretariat at (202) 501–4755. Please 

cite FAR case 2005–027. 

SUPPLEMENTARY INFORMATION: 

A. Background 

On March 9, 2005, the Councils 

issued a final rule (FAR case 1999–025) 

revising FAR Part 30, ‘‘CAS 

Administration’’ which significantly 

streamlined the process for submitting, 

negotiating, and resolving cost impacts 

resulting from a change in cost 

accounting practice or noncompliance 

with stated practices. Subsequent to 

this, a number of recommended changes 

to FAR Part 30 have been submitted by 

both government and industry 

representatives. These 

recommendations have been evaluated 

and, where warranted, changes are 

being proposed herein. 

B. Discussion 

The Councils are proposing to revise 

the following FAR provisions: 

1. FAR 30.001 includes minor 

changes to the definitions of a number 

of terms. Related changes are made to 

the FAR clause at 52.230–6(a). These 

changes are made to ensure that each 

term is consistently defined in both 

locations. 

2. FAR 30.601(c) is added to require 

that the cognizant Federal agency 

official (CFAO) request and consider the 

advice of the auditor, as appropriate, 

when administering the Cost 

Accounting Standards. As a result, the 

phrase ‘‘with the assistance of the 

auditor’’ is deleted from several other 

sections of FAR Part 30. 

3. FAR 30.602(d) is revised to include 

references to FAR 30.603, 30.604, and 

30.605. 

4. FAR 30.604(g) and 30.605(f) are 

revised to specify that the CFAO must 

evaluate the Detailed Cost Impact (DCI) 

proposal for cost accounting practice 

changes or noncompliances when a 

contractor is required to submit a DCI. 

5. FAR 30.604(h)(4) is revised to 

indicate that the Changes clause is to be 

used to negotiate equitable adjustments 

related to required or desirable changes. 

6. 30.605(h)(6) is added (and the 

current (h)(6) is redesignated as (h)(7)) 

to specify that the cost impact of a 

noncompliance that affects both cost 

estimating and cost accumulation shall 

be determined by combining the 

separate cost impacts of both the cost 

estimating and cost accumulation 

noncompliances. 

Two other related issues were 

considered by the Councils no changes 

will be made in response to those 

recommendations. These include the 

following: 

Issue: The Councils were informed of 

a concern about precluding contract 

awards when a contractor has submitted 

a revised Disclosure Statement, but that 

Disclosure Statement has not yet been 

determined adequate by the contracting 

officer. 

Councils’ Position: The Councils 

believe that the regulations currently 

provide adequate flexibility to address 

any such circumstances that may arise, 

including the waiver authority 

contained in the CAS/FAR. 

Furthermore, to date the Councils are 

unaware of any instances in which 

awards have been delayed pending 

determinations about the adequacy and/ 

or compliance of revised Disclosure 

Statements. 

Issue: Currently, FAR 30.606(a) 

prohibits combining the cost impacts of 

two unilateral accounting changes 

unless they both result in increased 

costs. The Councils were informed that 

such a rule may reduce contracting 

officer flexibility and may be contrary to 

established practices. 

Councils’ Position: FAR 30.606(a) is 

consistent with current statutory 

requirements which do not permit the 

combining of cost impacts for two or 

more unilateral changes. The Councils 

note that the contracting officer in such 

cases should separately determine 

whether each change is desirable, based 

on the criteria in FAR Part 30. Should 

the contracting officer determine that 

certain of the changes are desirable, the 

contracting officer would then have the 

authority to combine the cost impacts of 

those changes in determining the 

amount of the equitable adjustment 

resulting from the desirable changes. 

This is not a significant regulatory 

action and, therefore, was not 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. 

C. 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 

contracts and subcontracts awarded to 

small businesses are exempt from the 

Cost Accounting Standards. 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 30 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 2005–027), 

in correspondence. 

D. 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 Part 30 

Government procurement. 

Dated: September 22, 2006. 

Ralph De Stefano, 

Director, Contract Policy Division. 

Therefore, DoD, GSA, and NASA 

propose amending 48 CFR part 30 as set 

forth below: 


ycherry on PROD1PC64 with PROPOSALS
58338 Federal Register / Vol. 71, No. 191 / Tuesday, October 3, 2006 / Proposed Rules 

PART 30—COST ACCOUNTING 

STANDARDS ADMINISTRATION 

1. The authority citation for 48 CFR 

part 30 continues to read as follows: 

Authority: 40 U.S.C. 121(c); 10 U.S.C. 

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

2. Amend section 30.001 by—

a. Adding to the definition ‘‘Cognizant 

Federal agency official (CFAO)’’ ‘‘the ’’

following ‘‘administer’’; 

b. Removing from the definition 

‘‘Desirable change’’ ‘‘unilateral’’ and 

adding ‘‘compliant’’ in its place; and 

c. Revising paragraph (1) of the 

definition ‘‘Required change’’ to read as 

follows: 

30.001 Definitions. 

* * * * * 

Required change means—

(1) A change in cost accounting 

practice that a contractor is required to 

make in order to comply with 

applicable Standards, modifications or 

interpretations thereto, that 

subsequently becomes applicable to an 

existing CAS-covered contract or 

subcontract due to the receipt of another 

CAS-covered contract or subcontract; or 

* * * * * 

3. Amend section 30.601 by removing 

from paragraph (b) ‘‘52.230–6(b)’’ and 

adding ‘‘52.230–6(l)’’ in its place; and 

by adding paragraph (c) to read as 

follows: 

30.601 Responsibility. 

* * * * * 

(c) In performing CAS administration, 

the CFAO shall request and consider the 

advice of the auditor as appropriate (see 

also 1.602–2). 

4. Amend section 30.602 by revising 

paragraph (d) to read as follows: 

30.602 Materiality. 

* * * * * 

(d) For required, unilateral, and 

desirable changes, and CAS 

noncompliances, when the amount 

involved is material, the CFAO shall 

follow the applicable provisions in 

30.603, 30.604, 30.605, and 30.606. 

5. Amend section 30.604 by—

a. Removing from the introductory 

text of paragraphs (b) and (f) ‘‘, with the 

assistance of the auditor,’’; 

b. Revising the introductory text of 

paragraph (g); 

c. Revising the introductory text of 

paragraph (h)(4) and removing 

paragraphs (h)(4)(i) and (h)(4)(ii); and 

d. Removing from paragraph (i)(1) 

‘‘With the assistance of the auditor, 

estimate’’ and adding ‘‘Estimate’’ in its 

place. 

The revised text reads as follows: 

30.604 Processing changes to disclosed 

or established cost accounting practices. 

* * * * * 

(g) Detailed cost-impact proposal. If 

the contractor is required to submit a 

DCI proposal, the CFAO shall promptly 

evaluate the DCI proposal and follow 

the procedures at 30.606 to negotiate 

and resolve the cost impact. The DCI 

proposal—

* * * * * 

(h) * * * 

(4) For required or desirable changes, 

negotiate an equitable adjustment as 

provided in the Changes clause of the 

contract. 

* * * * * 

6. Amend section 30.605 by—

a. Removing from the introductory 

text of paragraph (c)(2) ‘‘, with the 

assistance of the auditor,’’; 

b. Revising the introductory text of 

paragraph (f); and 

c. Redesignating paragraph (h)(6) as 

(h)(7) and adding a newly designated 

paragraph (h)(6). 

The revised text reads as follows: 

30.605 Processing noncompliances. 

* * * * * 

(f) Detailed cost-impact proposal. If 

the contractor is required to submit a 

DCI proposal, the CFAO shall promptly 

evaluate the DCI proposal and follow 

the procedures at 30.606 to negotiate 

and resolve the cost impact. The DCI 

proposal—

* * * * * 

(h) * * * 

(6) The cost impact of each 

noncompliance that affects both cost 

estimating and cost accumulation shall 

be determined by combining the cost 

impacts in paragraphs (h)(3), (h)(4), and 

(h)(5) of this section; and 

* * * * * 

PART 52—SOLICITATIONS 

PROVISIONS AND CONTRACT 

CLAUSES 

7. Amend section 52.230–6 by—

a. Revising the date of the clause; 

b. Removing from the definition 

‘‘Fixed-price contracts and 

subcontracts’’ the word ‘‘FAR’’ each 

time it appears (4 times); 

c. Amending the definition ‘‘Flexiblypriced contracts and subcontracts’’ by 

revising paragraph (1); and by removing 

from paragraphs (2) through (5) the 

word ‘‘FAR’’; and 

d. Revising paragraph (1) of the 

definition ‘‘required change’’. 

The revised text reads as follows: 

52.230–6 Administration of Cost 

Accounting Standards. 

* * * * * 

ADMINISTRATION OF COST 

ACCOUNTING STANDARDS (DATE) 

* * * * * 

(a) * * * 

Flexibly-priced contracts and 

subcontracts means—

(1) Fixed-price contracts and 

subcontracts described at 16.203–

1(a)(2), 16.204, 16.205, and 16.206; 

* * * * * 

Required change means—

(1) A change in cost accounting 

practice that a Contractor is required to 

make in order to comply with 

applicable Standards, modifications or 

interpretations thereto, that 

subsequently become applicable to 

existing CAS-covered contracts or 

subcontracts due to the receipt of 

another CAS-covered contract or 

subcontract; or 

* * * * * 

(End of clause) 

[FR Doc. 06–8425 Filed 10–2–06; 8:45 am] 

BILLING CODE 6820–EP–S 

DEPARTMENT OF DEFENSE 

GENERAL SERVICES 

ADMINISTRATION 

NATIONAL AERONAUTICS AND 

SPACE ADMINISTRATION 

48 CFR Parts 30 and 52 

[FAR Case 2006–004; Docket 2006–0020; 

Sequence 10] 

RIN 9000–AK58 

Federal Acquisition Regulation; FAR 

Case 2006–004, FAR Part 30 - CAS 

Administration 

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 recommendations to revise 

the regulations related to the 

administration of the Cost Accounting 

Standards (CAS). 

DATES: Interested parties should submit 

written comments to the FAR 

Secretariat on or before December 4, 

2006 to be considered in the 

formulation of a final rule. 

ADDRESSES: Submit comments 

identified by FAR case 2006–004 by any 

of the following methods: 


ycherry on PROD1PC64 with PROPOSALS