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
64914 Federal Register / Vol. 62, No. 236 / Tuesday, December 9, 1997 / Rules and Regulations

regulations have been removed from

FAR part 30 and promulgated separately

by the CASB in 48 CFR Chapter 99.

B. Regulatory Flexibility Act

The final rule does not constitute a

significant FAR revision within the

meaning of FAR 1.501 and Pub. L. 98–

577, and publication for public

comments 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 should cite 5

U.S.C. 601, et seq. (FAC 97–03, FAR

case 97–014), in correspondence.

C. Paperwork Reduction Act

The Paperwork Reduction Act does

not apply because the change to the

FAR does 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 1

Government procurement.

Dated: December 1, 1997.

Edward C. Loeb,

Director, Federal Acquisition Policy Division.

Therefore, 48 CFR part 1 is amended

as set forth below:

PART 1—FEDERAL ACQUISITION

REGULATION SYSTEM

1. The authority citation for 48 CFR

part 1 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 1.402 is amended by

revising the penultimate sentence to

read as follows:

1.402 Policy.

* * * Deviations are not authorized

with respect to 30.201–3 and 30.201–4,

or the requirements of the Cost

Accounting Standards Board (CASB)

rules and regulations (48 CFR Chapter

99 (FAR Appendix)). * * *

[FR Doc. 97–31814 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 2, 5, 7, 8, 9, 12, 13, 16,

17, 19, 22, 32, 33, 34, 37, 38, 39, 45, 46,

51, 52, and 53

[FAC 97–03; FAR Case 96–319; Item II]

RIN 9000–AH75

Federal Acquisition Regulation;

Information Technology Management

Reform Act of 1996

AGENCIES: Department of Defense (DoD),

General Services Administration (GSA),

and National Aeronautics and Space

Administration (NASA).

ACTION: Interim rule adopted as final

with change.

SUMMARY: The Civilian Agency

Acquisition Council and the Defense

Acquisition Regulations Council have

agreed to adopt as final, with change,

the interim rule published as Item I of

Federal Acquisition Circular 90–41 on

August 8, 1996. The rule amends the

Federal Acquisition Regulation (FAR) to

implement the Information Technology

Management Reform Act (ITMRA) of

1996, Division E of Pub. L. 104–106.

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 96–319.

SUPPLEMENTARY INFORMATION:

A. Background

An interim rule was published in the

Federal Register at 61 FR 41467, August

8, 1996. Twelve comments from four

respondents were received during the

public comment period. All comments

were considered in the development of

the final rule. In response to public

comments on the interim rule, the

definition of ‘‘information technology’’

at FAR 2.101 has been clarified.

B. Regulatory Flexibility Act

A Final Regulatory Flexibility

Analysis (FRFA) has been prepared and

will be provided to the Chief Counsel

for Advocacy of the Small Business

Administration. The analysis is

summarized as follows:

ITMRA requires a simplified, clear, and

understandable process in the FAR for

acquiring information technology. No issues

were raised in response to the Initial

Regulatory Flexibility Analysis. The rule

applies to all entities, large and small, that

propose to perform, or are awarded,

Government contracts for information

technology. There are no statistics available

on the exact number of small businesses that

submit bids or proposals for contracts for

information technology. However, based on

information provided by the Federal

Procurement Data System, a total of 29,879

awards were made to small businesses during

fiscal year 1996 under information

technology product codes with a total dollar

value of $4,443,176,000. The rule imposes no

new reporting, recordkeeping, or other

compliance requirements. There are no

practical alternatives that will effectively

implement ITMRA. The final rule simplifies

and streamlines the process of acquiring

information technology, and minimizes the

economic burden of such acquisitions, while

expanding opportunities for small entities to

participate in Federal information technology

contracts.

A copy of the FRFA may be obtained

from the FAR Secretariat.

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 2, 5, 7,

8, 9, 12, 13, 16, 17, 19, 22, 32, 33, 34,

37, 38, 39, 45, 46, 51, 52, and 53

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 Parts 2, 5, 7, 8, 9, 12,

13, 16, 17, 19, 22, 32, 33, 34, 37, 38, 39,

45, 46, 51, 52, and 53, which was

published at 61 FR 41467, August 8,

1996, is adopted as a final rule with the

following change:

PART 2—DEFINITIONS OF WORDS

AND TERMS

1. The authority citation for 48 CFR

Part 2 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).