Federal Register / Vol. 62, No. 51 / Monday, March 17, 1997 / Rules and Regulations 12703

rule. All comments were considered in

the development of 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 the

rule primarily pertains to Government

reporting requirements and merely

requires offerors to provide certain

identification information when

responding to a solicitation.

C. Paperwork Reduction Act

The Paperwork Reduction Act is

deemed to apply because the final rule

contains a new information collection

requirement. Accordingly, a request for

approval of a new information

collection requirement has been

submitted to the Office of Management

and Budget under 44 U.S.C. 3501, et

seq. Public comments concerning this

request were invited through a Federal

Register notice published on January 16,

1997.

List of Subjects in 48 CFR Parts 26 and

52

Government procurement.

Dated: March 7, 1997.

Edward C. Loeb,

Director, Federal AcquisitionPolicy Division.

Therefore, 48 CFR Parts 26 and 52 are

amended as set forth below:

1. The authority citation for 48 CFR

Parts 26 and 52 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).

PART 26—OTHER SOCIOECONOMIC

PROGRAMS

2. Subpart 26.3, consisting of sections

26.300 through 26.304, is added to read

as follows:

Subpart 26.3—Historically Black

Colleges and Universities and Minority

Institutions

Sec.

26.300 Scope of subpart.

26.301 Definitions.

26.302 General policy.

26.303 Data collection and reporting

requirements.

26.304 Solicitation provision.

26.300 Scope of subpart.

(a) This subpart implements

Executive Order 12928 of September 16,

1994, which promotes participation of

Historically Black Colleges and

Universities (HBCUs) and Minority

Institutions (MIs) in Federal

procurement.

(b) This subpart does not pertain to

contracts performed entirely outside the

United States, its possessions, Puerto

Rico, and the Trust Territory of the

Pacific Islands.

26.301 Definitions.

As used in this subpart—

Historically Black College or

University means an institution

determined by the Secretary of

Education to meet the requirements of

34 CFR 608.2. For DoD, NASA, and the

Coast Guard, the term also includes any

nonprofit research institution that was

an integral part of such a college or

university before November 14, 1986.

Minority Institution means an

institution of higher education meeting

the requirements of Section 1046(3) of

the Higher Education Act of 1965 (20

U.S.C. 1135d–5(3)) which, for the

purpose of this subpart, includes a

Hispanic-serving institution of higher

education as defined in Section

316(b)(1) of the Act (20 U.S.C.

1059c(b)(1)).

26.302 General policy.

It is the policy of the Government to

promote participation of HBCUs and

MIs in Federal procurement.

26.303 Data collection and reporting

requirements.

Executive Order 12928 requires

periodic reporting to the President on

the progress of departments and

agencies in complying with the laws

and requirements mentioned in the

Executive order.

26.304 Solicitation provision.

The contracting officer shall insert the

provision at 52.226–2, Historically

Black College or University and

Minority Institution Representation, in

solicitations exceeding the micropurchase threshold, for research,

studies, supplies, or services of the type

normally acquired from higher

educational institutions.

PART 52—SOLICITATION PROVISIONS

AND CONTRACT CLAUSES

3. Section 52.226–2 is added to read

as follows:

52.226–2 Historically Black College or

University and Minority Institution

Representation.

As prescribed in 26.304, insert the

following provision:

HISTORICALLY BLACK COLLEGE OR

UNIVERSITY AND MINORITY

INSTITUTION REPRESENTATION (MAY

1997)

(a) Definitions. As used in this provision—

Historically Black College or University

means an institution determined by the

Secretary of Education to meet the

requirements of 34 CFR 608.2. For the

Department of Defense, the National

Aeronautics and Space Administration, and

the Coast Guard, the term also includes any

nonprofit research institution that was an

integral part of such a college or university

before November 14, 1986.

Minority Institution means an institution of

higher education meeting the requirements of

Section 1046(3) of the Higher Education Act

of 1965 (20 U.S.C. 1135d–5(3)) which, for the

purpose of this provision, includes a

Hispanic-serving institution of higher

education as defined in Section 316(b)(1) of

the Act (20 U.S.C. 1059c(b)(1)).

(b) Representation. The offeror represents

that it—

b is b is not a Historically Black College

or University;

b is b is not a Minority Institution.

(End of provision)

[FR Doc. 97–6316 Filed 3–14–97; 8:45 am]

BILLING CODE 6820–EP–P

DEPARTMENT OF DEFENSE

GENERAL SERVICES

ADMINISTRATION

NATIONAL AERONAUTICS AND

SPACE ADMINISTRATION

48 CFR Part 31

[FAC 90–46; FAR Case 95–021; Item VIII]

RIN 9000–AH04

Federal Acquisition Regulation;

Allowability of Foreign Selling Costs

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 ceiling on allowable foreign

selling costs. This regulatory action was

not subject to Office of Management and

Budget review under Executive Order

12866, dated September 30, 1993. This

is not a major rule under 5 U.S.C. 804.

DATES: Effective May 16, 1997.

FOR FURTHER INFORMATION CONTACT: Mr.

Ralph DeStefano at (202) 501–1758 in

reference to this FAR case. For general

information, contact the FAR

Secretariat, Room 4037, GS Building,

Washington, DC 20405, (202) 501–4755.
12704 Federal Register / Vol. 62, No. 51 / Monday, March 17, 1997 / Rules and Regulations

Please cite FAC 90–46, FAR case 95–

021.

SUPPLEMENTARY INFORMATION:

A. Background

This final rule revises FAR 31.205–

38(c)(2) by removing the ceiling on

allowable foreign selling costs. The rule

also revises FAR 31.205–1, Public

relations and advertising costs, by

deleting reference to the ceiling

limitation, and further revises FAR

31.205–38(c)(2) by deleting obsolete

language. A proposed rule was

published in the Federal Register at 61

FR 31800, June 20, 1996. The proposed

rule retained an allowability ceiling but

increased the threshold for its

application from $2.5 million to $5.0

million.

Two sources submitted public

comments in response to the proposed

rule. All comments were considered in

developing the final rule. The final rule

removes the ceiling on allowable foreign

selling costs in lieu of the proposed

rule’s doubling of the present threshold

for its application, i.e., $2.5 million to

$5.0 million. The final rule achieves a

greater reduction in the administrative

burden of contractors than would result

from retaining a ceiling but doubling the

threshold for its applicability. In

addition, elimination of the allowability

ceiling further promotes the

Government’s policy of stimulating the

export of U.S. products.

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 FAR cost principles. In addition,

this rule applies to only those entities

that incur foreign selling costs.

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: March 7, 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:

Authority: 40 U.S.C. 486(c); 10 U.S.C.

chapter 137; and 42 U.S.C. 2473(c).

2. Section 31.205–1 is amended in

paragraph (d)(2) by revising the second

sentence to read as follows:

31.205–1 Public relations and advertising

costs.

* * * * *

(d) * * *

(2) * * * Such costs are allowable,

notwithstanding paragraphs (f)(1), (f)(3),

(f)(4)(ii), and (f)(5) of this subsection.

* * *

* * * * *

3. Section 31.205–38 is amended by

revising paragraph (c)(2) to read as

follows:

31.205–38 Selling costs.

* * * * *

(c) * * *

(2) The costs of broadly targeted and

direct selling efforts and market

planning other than long-range, that are

incurred in connection with a

significant effort to promote export sales

of products normally sold to the U.S.

Government, including the costs of

exhibiting and demonstrating such

products, are allowable on contracts

with the U.S. Government provided the

costs are allocable, reasonable, and

otherwise allowable under this subpart

31.2.

* * * * *

[FR Doc. 97–6317 Filed 3–14–97; 8:45 am]

BILLING CODE 6820–EP–P

DEPARTMENT OF DEFENSE

GENERAL SERVICES

ADMINISTRATION

NATIONAL AERONAUTICS AND

SPACE ADMINISTRATION

48 CFR Part 31

[FAC 90–46; FAR Case 95–024; Item IX]

RIN 9000–AH03

Federal Acquisition Regulation;

Independent Research and

Development/Bid and Proposal Costs

in Cooperative Arrangements

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

permit contractor contributions of

independent research and development

(IR&D) costs under NASA cooperative

arrangements to be treated as allowable

indirect costs. 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 DATES: Effective May 16,

1997.

FOR FURTHER INFORMATION CONTACT: Mr.

Jeremy Olson at (202) 501–3221 in

reference to this FAR case. For general

information, contact the FAR

Secretariat, Room 4035, GS Building,

Washington, DC 20405 (202) 501–4755.

Please cite FAC 90–46, FAR case 95–

024.

SUPPLEMENTARY INFORMATION:

A. Background

NASA published a class deviation

(final rule) in the Federal Register at 59

FR 46359, September 8, 1994. The class

deviation eliminates the prohibition at

FAR 31.205–18(e) against treatment of

contractor IR&D contributions under

NASA cooperative arrangements as

allowable indirect costs. This final rule

eliminates the need for the NASA class

deviation.

A proposed rule was published in the

Federal Register at 61 FR 31796, June

20, 1996. Two sources submitted public

comments. 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 FAR cost principles. In addition,

this rule affects only those entities that

perform independent research and

development effort under NASA

cooperative arrangements.