[Federal Register Volume 62, Number 236 (Tuesday, December 9, 1997)]
[Rules and Regulations]
[Pages 64930-64931]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-31820]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Part 31

[FAC 97-03; FAR Case 96-325; Item VII]
RIN 9000-AH50


Federal Acquisition Regulation; Compensation of Certain 
Contractor Personnel

AGENCIES: Department of Defense (DoD), General Services Administration 
(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Interim rule adopted as final with changes.

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SUMMARY: The Civilian Agency Acquisition Council and the Defense 
Acquisition Regulations Council have agreed to adopt as final, with 
changes, the interim rule published as Item XI of Federal Acquisition 
Circular 90-45 on January 2, 1997. The rule amends the Federal 
Acquisition Regulation (FAR) to implement Section 809 of the Fiscal 
Year 1997 National Defense Authorization Act (Pub. L. 104-201) by 
placing a Governmentwide ceiling on allowable compensation costs for 
contractor personnel in senior management positions under contracts 
that are awarded during fiscal year 1997. 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.

EFFECTIVE DATE: February 9, 1998.

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 Ms. Linda Nelson, Procurement Analyst, at (202) 501-
1900. Please cite FAC 97-03, FAR case 96-325.

[[Page 64931]]

SUPPLEMENTARY INFORMATION:

A. Background

    An interim rule was published in the Federal Register at 62 FR 269, 
January 2, 1997. The preamble to the interim rule erroneously contained 
an effective date of January 1, 1997; the rule applies to contracts 
awarded on or after the date the rule was published (January 2, 1997).
    This final rule differs from the interim rule by making an 
editorial change for clarity. At FAR 31.205-6(p)(1), ``that exceed'' 
replaces the phrase ``in excess of.''
    Public comments were received from 11 sources. All 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.

    Dated: December 1, 1997.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.

Interim Rule Adopted as Final With Change

    Accordingly, the interim rule amending 48 CFR Part 31, which was 
published at 62 FR 269, January 2, 1997, is adopted as a final rule 
with the following change:

PART 31--CONTRACT COST PRINCIPLES AND PROCEDURES

    1. The authority citation for 48 CFR Part 31 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).

    2. Section 31.205-6 is amended by revising paragraph (p)(1) to read 
as follows:


31.205-6  Compensation for personal services.

* * * * *
    (p) * * * (1) For contracts awarded during fiscal year 1997, costs 
incurred from October 1, 1996, through September 30, 1997, for 
compensation of an officer in a senior management position that exceed 
$250,000 per year are unallowable (Section 809 of Public Law 104-201).
* * * * *
[FR Doc. 97-31820 Filed 12-8-97; 8:45 am]
BILLING CODE 6820-EP-P