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
Federal Register / Vol. 71, No. 191 / Tuesday, October 3, 2006 / Proposed Rules 58339 

• 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 2006–004 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 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 2006–004. 

SUPPLEMENTARY INFORMATION: 

A. Background 

On May 23, 2005, the Cost 

Accounting Standards Board published 

an interim rule in the Federal Register 

at 70 FR 29457 revising the applicability 

of CAS to U.K. contracts and 

subcontracts. The interim rule effected 

three changes in this regard: 

• Amendment of 48 CFR 9903.202–

1(e) to add the U.K. to the list of 

countries whose contractors may file a 

disclosure form adopted by an agency of 

their own government in lieu of the 

CASB-DS–1. As a result, U.K. 

contractors are permitted to file the U.K. 

‘‘Questionnaire on Method of Allocation 

of Costs’’ and ‘‘Supplemental QMAC.’’

• Deletion of the CAS exemption at 

48 CFR 9902.201–1(b)(12). Henceforth, 

all foreign contracts and subcontracts, 

including U.K. contracts and 

subcontracts, are subject to the 

requirements at 48 CFR 9903.201–

1(b)(4) and must comply with CAS 401 

and 402. 

• Deletion of 48 CFR 9903.201–4(d), 

Consistency in Cost Accounting 

Practices. This contract clause is no 

longer appropriate for inclusion in 

contracts with U.K. concerns. 

In order to retain consistency between 

CAS and FAR in matters relating to the 

administration of CAS, the Councils are 

proposing FAR revisions as outlined 

below: 

1. FAR 30.201–4(c), Consistency in 

Cost Accounting Practices. This part is 

renamed as Disclosure and Consistency 

of Cost Accounting Practices for 

Contracts Awarded to Foreign Concerns. 

It is also being revised to delete the 

language related to contracts awarded to 

United Kingdom contracts and to add 

language that addresses contracts 

subject to CAS 401 and 402 under 48 

CFR 9903.201-(1)(b)(4). 

2. FAR 52.230–4, Consistency in Cost 

Accounting Practices. The clause is 

renamed as Disclosure and Consistency 

of Cost Accounting Practices for 

Contracts Awarded to Foreign Concerns. 

The clause is also revised to specify that 

it applies to contracts awarded to 

foreign concerns who are subject to CAS 

401 and 402. 

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. 

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 

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 

Parts 30 and 52 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 2006–004), 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 30 and 

52 

Government procurement. 

Dated: September 26, 2006. 

Ralph De Stefano 

Director, Contract Policy Division. 

Therefore, DoD, GSA, and NASA 

propose amending 48 CFR parts 30 and 

52 as set forth below: 

1. The authority citation for 48 CFR 

parts 30 and 52 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). 

PART 30—COST ACCOUNTING 

STANDARDS ADMINISTRATION 

2. Amend section 30.201–4 by 

revising paragraph (c) to read as follows: 

30.201–4 Contract clauses. 

* * * * * 

(c) Disclosure and Consistency of Cost 

Accounting Practices for Contracts 

Awarded to Foreign Concerns. The 

contracting officer shall insert the clause 

at FAR 52.230–4, Disclosure and 

Consistency of Cost Accounting 

Practices for Contracts Awarded to 

Foreign Concerns, in negotiated 

contracts that are subject to CAS 401 

and 402 under 48 CFR 9903.201–1(b)(4). 

* * * * * 

PART 52—SOLICITATION PROVISIONS 

AND CONTRACT CLAUSES 

3. Amend section 52.230–4 by 

revising the section and clause headings 

and the clause to read as follows: 

52.230–4 Disclosure and Consistency of 

Cost Accounting Practices for Contracts 

Awarded to Foreign Concerns. 

* * * * * 

DISCLOSURE AND CONSISTENCY OF 

COST ACCOUNTING PRACTICES FOR 

CONTRACTS AWARDED TO FOREIGN 

CONCERNS (DATE) 

The Contractor agrees that it will 

consistently follow the cost accounting 

practices disclosed on FORM CASB DS–1 or 

other disclosure form as permitted by 48 CFR 

9903.202–1(e) in estimating, accumulating, 

and reporting costs under this contract, and 

comply with the requirements of CAS 401, 

Consistency in Estimating, Accumulating, 

and Reporting Costs, and CAS 402, 

Consistency in Allocating Costs Incurred for 

the Same Purpose. In the event the 

Contractor fails to follow such practices, or 

comply consistently with CAS 401 and 402, 

it agrees that the contract price shall be 

adjusted, together with interest, if such 

failure results in increased cost paid by the 

U.S. Government. Interest shall be computed 

at the annual rate of interest established 

under section 6621 of the Internal Revenue 

Code of 1986 (26 U.S.C. 6621) from the time 

payment by the Government was made to the 

time adjustment is effected. The Contractor 

agrees that the Disclosure Statement or other 

form permitted, pursuant to 48 CFR 

9903.202–1(e) shall be available for 

inspection and use by authorized 


ycherry on PROD1PC64 with PROPOSALS
58340 Federal Register / Vol. 71, No. 191 / Tuesday, October 3, 2006 / Proposed Rules 

representatives of the United States 

Government. 

(End of clause) 

[FR Doc. 06–8413 Filed 10–2–06; 8:45 am] 

BILLING CODE 6820–EP–S 

DEPARTMENT OF THE INTERIOR 

Fish and Wildlife Service 

50 CFR Part 17 

RIN 1018–AU77 

Endangered and Threatened Wildlife 

and Plants; Designation of Critical 

Habitat for Ceanothus ophiochilus 

(Vail Lake ceanothus) and 

Fremontodendron mexicanum 

(Mexican flannelbush) 

AGENCY: Fish and Wildlife Service, 

Interior. 

ACTION: Proposed rule. 

SUMMARY: We, the U.S. Fish and 

Wildlife Service (Service), propose to 

designate critical habitat for Ceanothus 

ophiochilus (Vail Lake ceanothus) and 

Fremontodendron mexicanum (Mexican 

flannelbush) pursuant to the 

Endangered Species Act of 1973, as 

amended (Act). In total, approximately 

644 acres (ac) (262 hectares (ha)) are 

proposed for the designation of critical 

habitat for these two species. 

Approximately 283 ac (115 ha) of land 

in Riverside County, California, are 

being proposed as critical habitat for C. 

ophiochilus, and approximately 361 ac 

(147 ha) of land in San Diego County, 

California, are being proposed as critical 

habitat for F. mexicanum. 

DATES: We will accept comments from 

all interested parties until December 4, 

2006. We must receive requests for 

public hearings, in writing, at one of the 

addresses shown in the ADDRESSES

section by November 17, 2006. 

ADDRESSES: If you wish to comment on 

the proposed rule, you may submit your 

written comments and information by 

any of the following methods: 

(1) E-mail: 

fw8cfwocomments@fws.gov. Include 

‘‘RIN 1018–AU77’’ in the subject line. 

Please see the Public Comments 

Solicited section under SUPPLEMENTARY

INFORMATION. 

(2) Fax: 760/431–9624. 

(3) U.S. mail or hand-delivery: Jim 

Bartel, Field Supervisor, Carlsbad Fish 

and Wildlife Office, 6010 Hidden Valley 

Road, Carlsbad, CA 92011. 

(4) Federal eRulemaking Portal: 

http://www.regulations.gov. Follow the 

instructions for submitting comments. 

Comments and materials received, as 

well as supporting documentation used 

in the preparation of this proposed rule, 

will be available for public inspection, 

by appointment, during normal business 

hours at the Carlsbad Fish and Wildlife 

Office at the above address. 

FOR FURTHER INFORMATION CONTACT: Jim 

Bartel, Field Supervisor, Carlsbad Fish 

and Wildlife Office, telephone, 760/ 

431–9440. 

SUPPLEMENTARY INFORMATION: 

Public Comments Solicited 

We intend that any final action 

resulting from this proposal will be as 

accurate and as effective as possible. 

Therefore, comments or suggestions 

from the public, other concerned 

governmental agencies, the scientific 

community, industry, or any other 

interested party concerning this 

proposed rule are hereby solicited. 

Comments particularly are sought 

concerning: 

(1) The reasons any habitat should or 

should not be determined to be critical 

habitat as provided by section 4 of the 

Act (16 U.S.C. 1531 et seq.), including 

whether it is prudent to designate 

critical habitat; 

(2) Specific information on the 

amount and distribution of Ceanothus 

ophiochilus or Fremontodendron 

mexicanum habitat, what areas should 

be included in the designations that 

were occupied at the time of listing that 

contain the features that are essential for 

the conservation of the species, and 

what areas that were not occupied at the 

listing are essential to the conservation 

of the species and why; 

(3) Land use designations and current 

or planned activities in the mapped 

critical habitat subunits and their 

possible effects on proposed critical 

habitat; 

(4) We are proposing to exclude nonFederal lands targeted for conservation 

within the Western Riverside County 

MSHCP from the final designation of 

critical habitat for Ceanothus 

ophiochilus under section 4(b)(2) of the 

Act (see Exclusions Under Section 

4(b)(2) of the Act for details on the 

Western Riverside MSHCP). Please 

provide information concerning 

whether the benefits of exclusion of any 

of these specific areas outweigh the 

benefits of their inclusion under section 

4(b)(2) of the Act. If the Secretary 

determines the benefits of including 

these lands outweigh the benefits of 

excluding them, they will not be 

excluded from critical habitat; 

(5) The appropriateness of excluding 

lands that contain Fremontodendron 

mexicanum occurrences within areas of 

the San Diego MSCP and areas of the 

BLM Otay Mountain Wilderness 

covered by the 1994 multiple agency 

MOU (MOU 1994) from the final 

designation of critical habitat. 

Fremontodendron mexicanum is not 

covered by the MSCP; however, other 

species that co-occur with F. 

mexicanum are covered by the MSCP. 

Please provide comments whether the 

protection and management of the 

habitat for these co-occurring species is 

adequate to justify the exclusion of 

these lands under section 4(b)(2) of the 

Act. Also, we are seeking any 

information on the benefits of including 

or excluding these lands from the 

critical habitat designation; 

(6) The appropriateness of including 

lands in the Agua Tibia Mountains 

owned by the U.S. Forest Service and 

managed under its Land Management 

Plans for the Four Southern California 

National Forests from the final 

designation of critical habitat for 

Ceanothus ophiochilus. Please provide 

comments on how implementation of 

the management plan(s) in the Agua 

Tibia Mountains will or will not provide 

for conservation for C. ophiochilus. Also 

provide information on any 

minimization measures or monitoring 

plans for C. ophiochilus that will help 

insure that the occurrences of C. 

ophiochilus remain healthy and viable 

in the Cleveland National Forest. 

Finally, provide comments on the 

benefits of including or excluding these 

lands from the critical habitat 

designation; 

(7) Any foreseeable economic, 

national security, or other potential 

impacts resulting from the proposed 

designation and, in particular, any 

impacts on small entities; 

(8) Whether our approach to 

designating critical habitat could be 

improved or modified in any way to 

provide for greater public participation 

and understanding, or to assist us in 

accommodating public concerns and 

comments; 

(9) Information concerning pollinator 

species for Ceanothus ophiochilus or 

Fremontodendron mexicanum and 

whether sufficient information exists to 

determine if such a biological feature 

should be considered a primary 

constituent element for either of these 

species (please see ‘‘Primary Constituent 

Elements’’ section of this proposed rule 

for a detailed discussion); 

(10) Whether any areas not currently 

known to be occupied by either species, 

but essential to the conservation of 

either species, should be included in the 

proposed designation; and 

(11) Whether the benefit of exclusion 

of any particular area outweighs the 


ycherry on PROD1PC64 with PROPOSALS