74680 Federal Register / Vol. 71, No. 238 / Tuesday, December 12, 2006 / Rules and Regulations 

plus reasonable charges the Contractor can 

demonstrate to the satisfaction of the 

Government using its standard record 

keeping system that have resulted from the 

termination. The Contractor shall not be 

required to comply with the cost accounting 

standards or contract cost principles for this 

purpose. This paragraph does not give the 

Government any right to audit the 

Contractor’s records. The Contractor shall not 

be paid for any work performed or costs 

incurred that reasonably could have been 

avoided. 

[FR Doc. 06–9613 Filed 12–6–06; 8:45 am] 

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DEPARTMENT OF DEFENSE 

GENERAL SERVICES 

ADMINISTRATION 

NATIONAL AERONAUTICS AND 

SPACE ADMINISTRATION 

48 CFR Chapter 1 

[Docket FAR—2006—0023, Sequence 8] 

Federal Acquisition Regulation; 

Federal Acquisition Circular 2005–15; 

Small Entity Compliance Guide 

AGENCIES: Department of Defense (DoD), 

General Services Administration (GSA), 

and National Aeronautics and Space 

Administration (NASA). 

ACTION: Small Entity Compliance Guide. 

SUMMARY: This document is issued 

under the joint authority of the 

Secretary of Defense, the Administrator 

of General Services and the 

Administrator of the National 

Aeronautics and Space Administration. 

This Small Entity Compliance Guide 

has been prepared in accordance with 

Section 212 of the Small Business 

Regulatory Enforcement Fairness Act of 

1996. It consists of a summary of rules 

appearing in Federal Acquisition 

Circular (FAC) 2005–15 which amend 

the FAR. An asterisk (*) next to a rule 

indicates that a regulatory flexibility 

analysis has been prepared. Interested 

parties may obtain further information 

regarding these rules by referring to FAC 

2005–15 which precedes this document. 

These documents are also available via 

the Internet at http:// 

www.regulations.gov. 

FOR FURTHER INFORMATION CONTACT

Laurieann Duarte, FAR Secretariat, (202) 

501–4225. For clarification of content, 

contact the analyst whose name appears 

in the table below. 

LIST OF RULES IN FAC 2005–15 

Item Subject FAR case Analyst 

*I ........... Payments Under Time-and-Materials and Labor-Hour Contracts ................................................... 2004–015 Olson. 

*II .......... Additional Commercial Contract Types ........................................................................................... 2003–027 Olson. 

SUPPLEMENTARY INFORMATION: 

Summaries for each FAR rule follow. 

For the actual revisions and/or 

amendments to these FAR cases, refer to 

the specific item number and subject set 

forth in the documents following these 

item summaries. 

FAC 2005–15 amends the FAR as 

specified below: 

Item I—Payments Under Time-andMaterials and Labor-Hour Contracts 

(FAR Case 2004–015) 

This final rule revises and clarifies 

policies related to award and 

administration of noncommercial item 

Time-and-Materials (T&M) and LaborHour (LH) contracts and the policies 

regarding payments made under those 

contracts. The objectives of the changes 

are to ensure fair and reasonable prices 

under T&M and LH contracts and to 

eliminate confusion related to payment 

amounts for subcontractor provided 

labor. 

Item II—Additional Commercial 

Contract Types (FAR Case 2003–027) 

This final rule implements section 

1432 of the National Defense 

Authorization Act for Fiscal Year 2004 

(Pub. L. 108–136). Title XIV of the Act, 

referred to as the Services Acquisition 

Reform Act of 2003 (SARA), amended 

section 8002(d) of the Federal 

Acquisition Streamlining Act of 1994 

(FASA) (Pub. L. 103–355, 41 U.S.C. 264) 

to expressly authorize the use of Time–

and–Materials (T&M) and Labor–Hour 

(LH) contracts for commercial services 

under specified conditions. 

Dated: December 4, 2006. 

Linda K. Nelson, 

Deputy Director, Contract Policy Division. 

[FR Doc. 06–9612 Filed 12–6–06; 8:45 am] 

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