Federal Register / Vol. 65, No. 197 / Wednesday, October 11, 2000 / Rules and Regulations 60553

DEPARTMENT OF DEFENSE

GENERAL SERVICES

ADMINISTRATION

NATIONAL AERONAUTICS AND

SPACE ADMINISTRATION

48 CFR Part 15

[FAC 97–20; FAR Case 2000–300; Item II]

RIN 9000–AI83

Federal Acquisition Regulation; Truth

in Negotiations Act Threshold

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

(Councils) have agreed on a final rule

amending the Federal Acquisition

Regulation (FAR) to implement the

requirements of 10 U.S.C. 2306a(a)(7)

and 41 U.S.C. 254b(a)(7). These statutes

require review of the Truth in

Negotiations Act threshold every 5

years, starting October 1, 1995.

DATES: Effective Date: October 11, 2000.

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.

Jeremy Olson at (202) 501–3221. Please

cite FAC 97–20, FAR case 2000–300.

SUPPLEMENTARY INFORMATION:

A. Background

This final rule amends FAR 15.403–

4 to implement the requirements of 10

U.S.C. 2306a(a)(7) and 41 U.S.C.

254b(a)(7). These statutes require review

of the Truth in Negotiations Act

threshold every 5 years, starting October

1, 1995. The increase of $50,000 is

based on escalation of 10.22 percent

from 1994 to 2000, calculated using the

gross domestic product deflators from

the fiscal year 2001 budget.

DoD, GSA, and NASA published a

proposed rule in the Federal Register at

65 FR 41267, July 3, 2000. Two

respondents submitted public

comments. The Councils considered all

public comments in formulation of the

final rule. This final rule is the same as

the proposed rule.

This is not a significant regulatory

action, and therefore, was not subject to

review under Section 6(b) of Executive

Order 12866, Regulatory Planning and

Review, dated September 30, 1993. This

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

804.

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 and subcontracts with small

entities do not require the submission of

cost or pricing data.

C. Paperwork Reduction Act

The Paperwork Reduction Act does

not apply because the changes do not

significantly change the existing

information collection requirements that

have been approved by the Office of

Management and Budget under 44

U.S.C. 3501, et seq., under OMB

Clearance Number 9000–0045.

List of Subjects in 48 CFR Part 15

Government procurement.

Dated: October 3, 2000.

Al Matera,

Acting Director, Federal Acquisition Policy

Division.

Therefore, DoD, GSA, and NASA

amend 48 CFR part 15 as set forth

below:

PART 15—CONTRACTING BY

NEGOTIATION

1. The authority citation for 48 CFR

part 15 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. Amend section 15.403–4 by

revising paragraph (a)(1) to read as

follows:

15.403–4 Requiring cost or pricing data

(10 U.S.C. 2306a and 41 U.S.C. 254b).

(a)(1) The contracting officer must

obtain cost or pricing data only if the

contracting officer concludes that none

of the exceptions in 15.403–1(b) applies.

However, if the contracting officer has

sufficient information available to

determine price reasonableness, then

the contracting officer should consider

requesting a waiver under the exception

at 15.403–1(b)(4). The threshold for

obtaining cost or pricing data is

$550,000. Unless an exception applies,

cost or pricing data are required before

accomplishing any of the following

actions expected to exceed the current

threshold or, for existing contracts, the

threshold specified in the contract:

(i) The award of any negotiated

contract (except for undefinitized

actions such as letter contracts).

(ii) The award of a subcontract at any

tier, if the contractor and each highertier subcontractor were required to

submit cost or pricing data (but see

waivers at 15.403–1(c)(4)).

(iii) The modification of any sealed

bid or negotiated contract (whether or

not cost or pricing data were initially

required) or any subcontract covered by

paragraph (a)(1)(ii) of this subsection.

Price adjustment amounts must

consider both increases and decreases

(e.g., a $200,000 modification resulting

from a reduction of $400,000 and an

increase of $200,000 is a pricing

adjustment exceeding $550,000). This

requirement does not apply when

unrelated and separately priced changes

for which cost or pricing data would not

otherwise be required are included for

administrative convenience in the same

modification. Negotiated final pricing

actions (such as termination settlements

and total final price agreements for

fixed-price incentive and

redeterminable contracts) are contract

modifications requiring cost or pricing

data if—

(A) The total final price agreement for

such settlements or agreements exceeds

the pertinent threshold set forth at

paragraph (a)(1) of this subsection; or

(B) The partial termination settlement

plus the estimate to complete the

continued portion of the contract

exceeds the pertinent threshold set forth

at paragraph (a)(1) of this subsection

(see 49.105(c)(15)).

* * * * *

[FR Doc. 00–25875 Filed 10–10–00; 8:45 am]

BILLING CODE 6820–EP–P

DEPARTMENT OF DEFENSE

GENERAL SERVICES

ADMINISTRATION

NATIONAL AERONAUTICS AND

SPACE ADMINISTRATION

48 CFR Chapter 1

Federal Acquisition Regulation; Small

Entity Compliance Guide

AGENCIES: Department of Defense (DoD),

General Services Administration (GSA),

and National Aeronautics and Space

Administration (NASA).

ACTION: Small Entity Compliance Guide.

SUMMARY: This document is issued

under the joint authority of the

Secretary of Defense, the Administrator

of General Services and the