64912 Federal Register / Vol. 62, No. 236 / Tuesday, December 9, 1997 / Rules and Regulations

DEPARTMENT OF DEFENSE

GENERAL SERVICES

ADMINISTRATION

NATIONAL AERONAUTICS AND

SPACE ADMINISTRATION

48 CFR Chapter I

Federal Acquisition Circular 97–03;

Introduction

AGENCIES: Department of Defense (DoD),

General Services Administration (GSA),

and National Aeronautics and Space

Administration (NASA).

ACTION: Summary presentation of final

and interim rules.

SUMMARY: This document summarizes

the Federal Acquisition Regulation

(FAR) rules issued by the Civilian

Agency Acquisition Council and the

Defense Acquisition Regulations

Council in this Federal Acquisition

Circular (FAC) 97–03. Each rule follows

this document in the order listed below.

A companion document, the Small

Entity Compliance Guide, follows this

FAC and may be located on the Internet

at http://www.arnet.gov/far.

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. For general

information, contact the FAR

Secretariat, Room 4035, GS Building,

Washington, DC 20405, 202) 501–4755.

Please cite FAC 97–03 and specific FAR

case number(s).

SUPPLEMENTARY INFORMATION: Federal

Acquisition Circular 97–03 amends the

Federal Acquisition Regulation (FAR) as

specified below:

Item Subject FAR case Analyst

I ..................... Part 30 Deviations .............................................................................................................................. 97–014 Nelson.

II .................... Information Technology Management Reform Act of 1996 ............................................................... 96–319 Nelson.

III ................... Final Overhead Settlement ................................................................................................................. 95–017 Klein.

IV .................. Reorganization of FAR Part 13, Simplified Acquisition Procedures .................................................. 94–772 Linfield.

V ................... Reporting Trade Sanction Exemptions .............................................................................................. 97–021 Linfield.

VI .................. New Mexico Gross Receipts and Compensating Tax ....................................................................... 97–018 Moss.

VII ................. Compensation of Certain Contractor Personnel ................................................................................ 96–325 Nelson.

VIII ................ Independent Research and Development/Bid and Proposal Costs for Fiscal Year 1996 and Beyond.95–032 Nelson.

IX .................. Travel Reimbursement (Interim) ......................................................................................................... 97–007 Nelson.

X ................... Protests to GAO ................................................................................................................................. 97–009 O’Neill.

XI .................. Novation and Related Agreements .................................................................................................... 95–034 Klein.

XII ................. Commercial Bills of Lading, Small Package Shipments .................................................................... 97–017 Klein.

XIII ................ Standard Form 1406, Preaward Survey of Prospective Contractor—Quality Assurance ................. 96–022 Klein.

XIV ................ Technical Amendments ......................................................................................................................

Item I—Part 30 Deviations (FAR Case

97–014)

This final rule amends FAR 1.402 to

remove the prohibition against

authorizing deviations from FAR part

30, Cost Accounting Standards

Administration, except for subsections

30.201–3 and 30.201–4, or the Cost

Accounting Standards Board rules and

regulations.

Item II—Information Technology

Management Reform Act of 1996 (FAR

Case 96–319)

The interim rule published as Item I

of FAC 90–41 is converted to a final

rule. This rule implements the

Information Technology Management

Reform Act of 1996 (Division E of Pub.

L. 104–106). The final rule differs from

the interim rule in that it makes a

clarifying revision to paragraph (c) of

the definition of ‘‘information

technology’’ at FAR 2.101.

Item III—Final Overhead Settlement

(FAR Case 95–017)

This final rule amends FAR parts 4,

42, and 52 to improve the process of

final settlement of contractor indirect

cost rates under cost-reimbursement

contracts by (1) extending the time

period within which a contractor must

submit an indirect cost rate proposal

from 90 days to 6 months after the end

of the contractor’s fiscal year, (2)

permitting extensions to the 6-month

time period for exceptional

circumstances only, and (3) providing a

specific reference to the Defense

Contract Audit Agency pamphlet that

contains guidance on what generally

constitutes an adequate final indirect

cost rate proposal and supporting data.

Item IV—Reorganization of FAR Part

13, Simplified Acquisition Procedures

(FAR Case 94–772)

This final rule revises FAR part 13 to

reorganize its contents in a more

process-oriented manner and to

emphasize the use of electronic

contracting and the Governmentwide

commercial purchase card. FAR part 52

is amended to permit agency provisions

and clauses to be incorporated by

reference in solicitations and contracts,

if the full text of the provisions and

clauses may be accessed electronically

by prospective contractors. A new

clause is added at FAR 52.213–4 for use

in simplified acquisitions; the clause is

a compilation of the required and most

commonly used clauses that apply to

simplified acquisitions, and may be

used in lieu of individual clauses

prescribed in the FAR.

Item V—Reporting Trade Sanction

Exemptions (FAR Case 97–021)

This final rule amends FAR Subpart

25.10 to eliminate requirements for

agencies to notify Congress when

exercising the authority at FAR

25.1002(c) for exemption of certain

procurements from trade sanctions

imposed by the President. The rule

instead requires agencies to notify the

United States Trade Representative of

such exemptions within 30 days after

contract award.

Item VI—New Mexico Gross Receipts

and Compensating Tax (FAR Case 97–

018)

This final rule amends FAR 29.401–

6 to identify the Defense Special

Weapons Agency as an agency that has

entered into an agreement with the State

of New Mexico regarding taxation.

Item VII—Compensation of Certain

Contractor Personnel (FAR Case 96–

325)

The interim rule published as Item XI

of FAC 90–45 is converted to a final rule

with a minor clarifying amendment at

FAR 31.205–6(p)(1). The rule

implements Section 809 of the Fiscal
Federal Register / Vol. 62, No. 236 / Tuesday, December 9, 1997 / Rules and Regulations 64913

Year 1997 National Defense

Authorization Act (Pub. L. 104–201).

Section 809 places a Governmentwide

ceiling of $250,000 per year on

allowable compensation costs for

contractor personnel in senior

management positions under contracts

awarded during fiscal year 1997.

Item VIII—Independent Research and

Development/Bid and Proposal Costs

for Fiscal Year 1996 and Beyond (FAR

Case 95–032)

This final rule amends the cost

principle at FAR 31.205–18,

Independent Research and Development

(IR&D) and Bid and Proposal (B&P)

Costs, and deletes FAR subpart 42.10,

Negotiating Advance Agreements for

Independent Research and

Development/Bid and Proposal Costs.

The rule removes, for fiscal year 1996

and beyond, the requirements to

calculate or negotiate a ceiling for IR&D/

B&P costs. In addition, the rule clarifies

that costs incurred in preparing,

submitting, and supporting offers on

potential cooperative arrangements are

allowable to the extent they are

allocable, reasonable, and not otherwise

unallowable.

Item IX—Travel Reimbursement (FAR

Case 97–007)

This interim rule amends FAR

31.205–46 to raise, from $25 to $75, the

maximum travel expense amount that

contractor personnel may claim without

providing a supporting receipt. This

change is consistent with a recent

amendment to the Federal Travel

Regulation.

Item X—Protests to GAO (FAR Case 97–

009)

This final rule amends the protest

procedures at FAR 33.101 and 33.104 to

conform with revisions made to the

General Accounting Office Bid Protest

Regulations.

Item XI—Novation and Related

Agreements (FAR Case 95–034)

This final rule amends FAR subpart

42.12 to expand and clarify procedures

for processing novation agreements, and

for determining when use of a novation

agreement is appropriate.

Item XII—Commercial Bills of Lading,

Small Package Shipments (FAR Case

97–017)

This final rule amends FAR 47.303–

17 to raise the threshold for requiring

receipted freight bills for small package

shipments from $25 to $100, and the

maximum amount that the Government

may pay for invoiced but unsupported

transportation charges from $100 to

$250. These increased amounts are

considered to more accurately reflect

shipping costs in today’s business

environment.

Item XIII—Standard Form 1406,

Preaward Survey of Prospective

Contractor—Quality Assurance (FAR

Case 96–022)

This final rule revises Standard Form

1406, Preaward Survey of Prospective

Contractor—Quality Assurance, to

delete references to canceled

specifications, and to conform the

language in the form to the current

language in FAR part 46.

Item XIV—Technical Amendments

This document makes technical

corrections to FAR 1.201–1, 19.811–1,

and 42.203. Standard Forms 33, 1435,

1436, and 1437 are reissued to reflect

changes to internal references as a result

of the rewrite of FAR part 15. Standard

Form 279 is reissued to provide

accounting for purchases under the

commercial test.

Dated: December 1, 1997.

Edward C. Loeb,

Director, Federal Acquisition Policy Division.

Federal Acquisition Circular

Federal Acquisition Circular (FAC)

97–03 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 97–03 is effective February 9,

1998, except for Items VI, IX, and XIV,

which are effective December 9, 1997.

Dated: November 22, 1997.

Eleanor R. Spector,

Director, Defense Procurement.

Dated: November 28, 1997.

Ida M. Ustad,

Deputy Associate Administrator, Office of

Acquisition Policy, General Services

Administration.

Dated: November 18, 1997.

Tom Luedtke,

Deputy Associate Administrator for

Procurement, National Aeronautics and

Space Administration.

[FR Doc. 97–31813 Filed 12–8–97; 8:45 am]

BILLING CODE 6820–EP–M

DEPARTMENT OF DEFENSE

GENERAL SERVICES

ADMINISTRATION

NATIONAL AERONAUTICS AND

SPACE ADMINISTRATION

48 CFR Part 1

[FAC 97–03; FAR Case 97–014; Item I]

RIN 9000–AH77

Federal Acquisition Regulation; Part 30

Deviations

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

remove the prohibition against

authorizing deviations from certain

sections pertinent to cost accounting

standards administration. 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 97–014.

SUPPLEMENTARY INFORMATION:

A. Background

This final rule amends FAR 1.402,

Policy, to remove the prohibition

against authorizing deviations from FAR

Part 30 (except for subsections 30.201–

3 and 30.201–4, or the Cost Accounting

Standards Board (CASB) rules and

regulations). This prohibition was

added to the FAR when the CASB rules

and regulations were added to FAR part

30. Since only the CASB has authority

to waive CAS, the FAR part 30 deviation

prohibition at FAR 1.402 was added to

preclude the granting of a CAS waiver

by other than the CASB. The prohibition

was intended to apply to the CASB rules

and regulations, not to the

administration of CAS. Accordingly, the

prohibition with respect to certain

portions of FAR part 30 is no longer

necessary since the CASB rules and