74656 Federal Register / Vol. 71, No. 238 / Tuesday, December 12, 2006 / Rules and Regulations 

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; 

Introduction 

AGENCIES: Department of Defense (DoD), 

General Services Administration (GSA), 

and National Aeronautics and Space 

Administration (NASA). 

ACTION: Summary presentation of final 

rules. 

SUMMARY: This document summarizes 

the Federal Acquisition Regulation 

(FAR) rules agreed to by the Civilian 

Agency Acquisition Council and the 

Defense Acquisition Regulations 

Council in this Federal Acquisition 

Circular (FAC) 2005–15. A companion 

document, the Small Entity Compliance 

Guide (SECG), follows this FAC. The 

FAC, including the SECG, is available 

via the Internet at http:// 

www.regulations.gov. 

DATES: For effective dates and comment 

dates, see separate documents, which 

follow. 

FOR FURTHER INFORMATION CONTACT: The 

analyst whose name appears in the table 

below in relation to each FAR case or 

subject area. Please cite FAC 2005–15 

and specific FAR case number(s). For 

information pertaining to status or 

publication schedules, contact the FAR 

Secretariat at (202) 501–4755. 

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. 

Federal Acquisition Circular 

Federal Acquisition Circular (FAC) 

2005-15 is issued under the authority of 

the Secretary of Defense, the 

Administrator of General Services, and 

the Administrator for the National 

Aeronautics and Space Administration. 

Unless otherwise specified, all 

Federal Acquisition Regulation (FAR) 

and other directive material contained 

in FAC 2005-15 is effective February 12, 

2007. 

Dated: November 22, 2006. 

Shay D. Assad, 

Director, Defense Procurement and 

Acquisition Policy. 

Dated: November 22, 2006. 

Roger D. Waldron, 

Acting Senior Procurement Executive, 

General Services Administration. 

Dated: November 21, 2006. 

Tom Luedtke, 

Assistant Administrator for Procurement, 

National Aeronautics and Space 

Administration. 

[FR Doc. 06–9611 Filed 12–11–06; 8:45 am] 

BILLING CODE 6820–EP–S 

DEPARTMENT OF DEFENSE 

GENERAL SERVICES 

ADMINISTRATION 

NATIONAL AERONAUTICS AND 

SPACE ADMINISTRATION 

48 CFR Parts 16, 32, and 52 

[FAC 2005–15; FAR Case 2004–015; Item 

I; Docket 2006–0020, Sequence 23] 

RIN 9000–AK32 

Federal Acquisition Regulation; FAR 

Case 2004–015, Payments Under Timeand-Materials and Labor-Hour 

Contracts 

AGENCIES: Department of Defense (DoD), 

General Services Administration (GSA), 

and National Aeronautics and Space 

Administration (NASA). 

ACTION: Final rule. 

SUMMARY: The Civilian Agency 

Acquisition Council and the Defense 

Acquisition Regulations Council 

(Councils) have agreed on a final rule 

amending the Federal Acquisition 

Regulation (FAR) to clarify payment 

procedures for Time-and-Materials 

(T&M) and Labor-Hour (LH) Contracts. 

DATES: Effective Date: February 12, 

2007. 

FOR FURTHER INFORMATION CONTACT: For 

clarification of content, contact Mr. 

Jeremy Olson at (202) 501–3221. Please 

cite FAC 2005–15, FAR case 2004–015. 

For information pertaining to status or 

publication schedules, contact the FAR 

Secretariat at (202) 501–4755. 

SUPPLEMENTARY INFORMATION: 


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