Federal Register / Vol. 62, No. 163 / Friday, August 22, 1997 / Rules and Regulations 44829

Linda Nelson, Procurement Analyst, at

(202) 501–1900. Please cite FAC 97–01,

FAR case 96–003.

SUPPLEMENTARY INFORMATION:

A. Background

An interim rule was published on

December 20, 1996 (61 FR 67424). The

interim rule revised the cost principle at

FAR 31.205–22, Lobbying and political

activity costs, to provide an additional

exemption from the provisions which

make lobbying costs unallowable. This

exemption makes allowable the costs of

any lobbying activities to influence local

legislation in order to directly reduce

contract cost, or to avoid material

impairment of the contractor’s authority

to perform the contract. The interim rule

is converted to a final rule without

change.

Public comments were received from

one source. The comments were

considered in developing the final rule.

B. Regulatory Flexibility Act

The Department of Defense, the

General Services Administration, and

the National Aeronautics and Space

Administration certify that this final

rule will not 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 most

contracts awarded to small entities use

simplified acquisition procedures or are

awarded on a competitive fixed-price

basis, and do not require application of

the cost principle contained in this rule.

C. Paperwork Reduction Act

The Paperwork Reduction Act does

not apply because the changes to the

FAR do not impose recordkeeping or

information collection requirements, or

collections of information from offerors,

contractors, or members of the public

which 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 31

Government procurement.

Interim Rule Adopted as Final Without

Change

Accordingly, the interim rule

amending 48 CFR Part 31, which was

published at 61 FR 67424, December 20,

1996, is hereby adopted as final without

change.

Authority: 40 U.S.C. 486(c); 10 U.S.C.

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

Dated: August 7, 1997.

Edward C. Loeb,

Director, Federal Acquisition Policy Division.

[FR Doc. 97–21500 Filed 8–21–97; 8:45 am]

BILLING CODE 6820–EP–U

DEPARTMENT OF DEFENSE

GENERAL SERVICES

ADMINISTRATION

NATIONAL AERONAUTICS AND

SPACE ADMINISTRATION

48 CFR Part 36

[FAC 97–01; FAR Case 97–005; Item XVI]

RIN 9000–AH63

Federal Acquisition Regulation;

Independent Government EstimatesConstruction

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 have

agreed on a final rule amending the

Federal Acquisition Regulation (FAR) to

increase the threshold for a mandatory

independent Government estimate of

construction costs and architectengineer costs from $25,000 to

$100,000. This regulatory action was not

subject to Office of Management and

Budget review under Executive Order

12866, dated September 30, 1993, and is

not a major rule under 5 U.S.C. 804.

DATES: Effective October 21, 1997.

FOR FURTHER INFORMATION CONTACT: The

FAR Secretariat, Room 4035, GS

Building, Washington, DC 20405 (202)

501–4755 for information pertaining to

status or publication schedules. For

clarification of content, contact Mr. Jack

O’Neill, Procurement Analyst, at (202)

501–3856. Please cite FAC 97–01, FAR

case 97–005.

SUPPLEMENTARY INFORMATION:

A. Background

This final rule amends FAR 36.203(a)

and 36.605(a) to raise the threshold for

a mandatory independent Government

estimate of construction costs and

architect-engineer costs from $25,000 to

$100,000. The benefits of an

independent Government estimate do

not warrant the high cost of such effort

to cover the small risk associated with

modifications under $100,000. The

change will reduce costs and streamline

the acquisition procedures, permitting

improved utilization of resources.

B. Regulatory Flexibility Act

The final rule does not constitute a

significant FAR revision within the

meaning of FAR 1.501 and Public Law

98–577, and publication for public

comment is not required. However,

comments from small entities

concerning the affected FAR subpart

will be considered in accordance with 5

U.S.C. 610. Such comments must be

submitted separately and cite 5 U.S.C.

601, et seq. (FAC 97–01, FAR case 97–

005), in correspondence.

C. Paperwork Reduction Act

The Paperwork Reduction Act does

not apply because the changes to the

FAR do not impose recordkeeping or

information collection requirements, or

collections of information from offerors,

contractors, or members of the public

which 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 36

Government procurement.

Dated: August 7, 1997.

Edward C. Loeb,

Director, Federal Acquisition Policy Division.

Therefore, 48 CFR Part 36 is amended

as set forth below:

PART 36—CONSTRUCTION AND

ARCHITECT-ENGINEER CONTRACTS

1. The authority citation for 48 CFR

Part 36 continues to read as follows:

Authority: 40 U.S.C. 486(c); 10 U.S.C.

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

36.203 [Amended]

2. Section 36.203 is amended in

paragraph (a) by removing ‘‘$25,000’’

and inserting ‘‘$100,000’’ in its place

each time it appears.

36.605 [Amended]

3. Section 36.605 is amended in

paragraph (a) by removing ‘‘$25,000’’

and inserting ‘‘$100,000’’ in its place.

[FR Doc. 97–21501 Filed 8–21–97; 8:45 am]

BILLING CODE 6820–EP–U