[Federal Register Volume 65, Number 207 (Wednesday, October 25, 2000)]
[Rules and Regulations]
[Page 63807]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-27294]


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NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Part 1842


Final Indirect Cost Rates

AGENCY: National Aeronautics and Space Administration (NASA).

ACTION: Final rule.

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SUMMARY: This is a final rule amending the NASA FAR Supplement (NFS) to 
provide guidance on when NASA participation should occur in the 
determination of final indirect cost rates.

EFFECTIVE DATE: October 25, 2000.

FOR FURTHER INFORMATION CONTACT: Mr. Joseph Le Cren, NASA Headquarters, 
Office of Procurement, Contract Management Division (Code HK), 
Washington, DC 20546, telephone: (202) 358-0444, e-mail: 
<a href="/cdn-cgi/l/email-protection#3b5154485e4b5315575e58495e557b534a15555a485a155c544d"><span class="__cf_email__" data-cfemail="86ece9f5e3f6eea8eae3e5f4e3e8c6eef7a8e8e7f5e7a8e1e9f0">[email protected]</span></a>.

SUPPLEMENTARY INFORMATION:

A. Background

    A NASA Office of Inspector General report interpreted the coverage 
at NFS 1842.705-1 to always require NASA participation in final 
indirect cost rate determinations where the agency has a major 
financial interest. The intent of the coverage was that NASA should 
participate in final indirect cost rate determinations when invited by 
the cognizant contracting officer, and the issues involved would have a 
significant financial impact on the agency. NASA should not participate 
when the issues would not have a significant impact on the agency. The 
NFS revision more clearly communicates this intent. The NFS revision 
also specifies that, in cases where the issues involved in the final 
indirect cost rate determination would have a significant financial 
impact on the agency and a decision is made not to participate, the 
decision needs to be communicated to the cognizant contracting officer.

B. Regulatory Flexibility Act

    This final rule does not constitute a significant 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 NFS 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.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the changes to 
the NFS 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 1842

    Government procurement.

Tom Luedtke,
Associate Administrator for Procurement.

    Accordingly, 48 CFR Part 1842 is amended as follows:

    1. The authority citation for 48 CFR Part 1842 continues to read as 
follows:

    Authority: 42 U.S.C. 2473 (c)(1).

PART 1842--CONTRACT ADMINISTRATION AND AUDIT SERVICES

    2. Revise section 1842.705-1 to read as follows:


1842.705-1  Contracting officer determination procedure.

    (b) Procedures.
    (3)(i) When NASA is not the cognizant Federal agency, NASA should 
participate with the cognizant contracting officer (or cognizant 
Federal agency official) in the final indirect cost rate determination 
procedure where the issues involved would have a significant financial 
impact on the agency. The NASA participant should be a representative 
from that installation providing the preponderance of NASA funding. If 
a determination is made that NASA's participation is not warranted, 
that decision must be communicated to the cognizant contracting officer 
(or cognizant Federal agency official).
    (ii) When NASA is the cognizant Federal agency, settlement of 
indirect costs should be conducted by the cognizant NASA contracting 
officer (normally from the installation providing the preponderance of 
NASA funding).

[FR Doc. 00-27294 Filed 10-24-00; 8:45 am]
BILLING CODE 7510-01-U


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