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

DEPARTMENT OF DEFENSE

GENERAL SERVICES

ADMINISTRATION

NATIONAL AERONAUTICS AND

SPACE ADMINISTRATION

48 CFR Parts 31 and 42

[FAC 97–03; FAR Case 95–032; Item VIII]

RIN 9000–AH37

Federal Acquisition Regulation;

Independent Research and

Development/Bid and Proposal Costs

for Fiscal Year 1996 and Beyond

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)

allowable cost criteria for Independent

Research and Development (IR&D)/Bid

and Proposal (B&P) costs for fiscal year

1996 and beyond, by removing the

requirements to calculate or negotiate a

ceiling for IR&D/B&P costs. In addition,

the final 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. 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 95–032.

SUPPLEMENTARY INFORMATION:

A. Background

A proposed rule was published on

November 14, 1996 (61 FR 58452). The

final rule differs from the proposed rule

by revising the last sentence at FAR

31.205–18(e) for clarification and by

deleting ‘‘and B&P’’ from the heading at

31.205–18(d) to better convey the

subject matter of the paragraph.

Public comments were received from

four sources. 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 Parts 31 and

42

Government procurement.

Dated: December 1, 1997.

Edward C. Loeb,

Director, Federal Acquisition Policy Division.

Therefore, 48 CFR Parts 31 and 42 are

amended as set forth below:

1. The authority citation for 48 CFR

Parts 31 and 42 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).
64932 Federal Register / Vol. 62, No. 236 / Tuesday, December 9, 1997 / Rules and Regulations

PART 31—CONTRACT COST

PRINCIPLES AND PROCEDURES

2. Section 31.205–18 is amended in

paragraph (a) by removing definitions

for ‘‘Contractor’’, ‘‘Covered contract’’,

‘‘Covered segment’’, and ‘‘Major

contractor’’; by revising paragraph (c)

and the heading of paragraph (d); and

adding paragraph (e)(3) to read as

follows:

31.205–18 Independent research and

development and bid and proposal costs.

* * * * *

(c) Allowability. Except as provided in

paragraphs (d) and (e) of this subsection,

or as provided in agency regulations,

costs for IR&D and B&P are allowable as

indirect expenses on contracts to the

extent that those costs are allocable and

reasonable.

(d) Deferred IR&D costs.* * *

* * * * *

(e) * * *

(3) 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.

PART 42—CONTRACT

ADMINISTRATION

Subpart 42.10 [Reserved]

3. Subpart 42.10 is removed and

reserved.

[FR Doc. 97–31821 Filed 12–8–97; 8:45 am]

BILLING CODE 6820–EP–P

DEPARTMENT OF DEFENSE

GENERAL SERVICES

ADMINISTRATION

NATIONAL AERONAUTICS AND

SPACE ADMINISTRATION

48 CFR Part 31

[FAC 97–03; FAR Case 97–007; Item IX]

RIN 9000–AH76

Federal Acquisition Regulation; Travel

Reimbursement

AGENCIES: Department of Defense (DoD),

General Services Administration (GSA),

and National Aeronautics and Space

Administration (NASA).

ACTION: Interim rule with request for

comments.

SUMMARY: The Civilian Agency

Acquisition Council and the Defense

Acquisition Regulations Council have

agreed on an interim rule amending the

Federal Acquisition Regulation (FAR) to

increase from $25 to $75 the maximum

travel expense amount that contractor

personnel may claim without providing

a supporting receipt. 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: December 9, 1997.

Comments: Comments should be

submitted to the FAR Secretariat at the

address shown below on or before

February 9, 1998 to be considered in the

formulation of a final rule.

ADDRESSES: Interested parties should

submit written comments to:

General Services Administration, FAR

Secretariat (MVR), 1800 F Street, NW.,

Room 4035, Washington, DC 20405

E-Mail comments submitted over the

Internet should be addressed to:

farcase.97–007@gsa.gov

Please cite FAC 97–03, FAR case 97–

007, in all correspondence related to

this case.

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 97–007.

SUPPLEMENTARY INFORMATION:

A. Background

On October 28, 1996, GSA published

Federal Travel Regulation (FTR)

Amendment 50, in the Federal Register

(61 FR 55577), to streamline the process

of travel reimbursement claims. One of

the FTR changes was to raise, from

$25.00 to $75.00, the maximum travel

expense amount which may be claimed

without the requirement for a

supporting receipt.

In concert with the FTR change, this

rule amends the cost principle at FAR

31.205–46 to increase, from $25.00 to

$75.00, the threshold at which

contractor personnel must provide a

receipt to support travel expenditures.

B. Regulatory Flexibility Act

The interim rule is not expected to

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. An

Initial Regulatory Flexibility Analysis

has, therefore, not been performed.

Comments are invited from small

businesses and other interested parties.

Comments from small entities

concerning the affected FAR subpart

also will be considered in accordance

with 5 U.S.C. 610. Such comments must

be submitted separately and should cite

5 U.S.C 601, et seq. (FAC 97–03, FAR

case 97–007), in correspondence.

C. Paperwork Reduction Act

The Paperwork Reduction Act (Pub.

L. 96–511) is deemed to apply because

the interim rule contains information

collection requirements. The collection

of this information is currently cleared

under Office of Management and Budget

number 9000–0088. The increase in the

receipt threshold is expected to reduce

the existing burden hours. Copies of the

form and supporting documents

reducing the burden hours may be

obtained from the FAR Secretariat.

Estimated number of respondents:

5,800; responses per respondent: 10;

total burden hours: 14,500; frequency of

report: on occasion.

D. Determination to Issue an Interim

Rule

A determination has been made under

the authority of the Secretary of Defense

(DOD), the Administrator of General

Services (GSA), and the Administrator

of the National Aeronautics and Space

Administration (NASA) that urgent and

compelling reasons exist to promulgate

this interim rule without prior

opportunity for public comment. This

action is necessary to make the cost

principle consistent with the newly

revised Federal Travel Regulations and

to remove the unnecessarily

burdensome recordkeeping requirement

for travel expenses between $25.00 and

$75.00, as quickly as possible. However,

pursuant to Public Law 98–577 and FAR

1.501, public comments received in

response to this interim rule will be

considered in the formation of the final

rule.

List of Subjects in 48 CFR Part 31

Government procurement.

Dated: December 1, 1997.

Edward C. Loeb,

Director, Federal Acquisition Policy Division.

Therefore, 48 CFR Part 31 is amended

as set forth below:

PART 31—CONTRACT COST

PRINCIPLES AND PROCEDURES

1. The authority citation for 48 CFR

Part 31 continues to read as follows: