Federal Register / Vol. 63, No. 119 / Monday, June 22, 1998 /Rules and Regulations 34079

SUPPLEMENTARY INFORMATION:

A. Background

This interim rule clarifies that the nocost VECP guidance at FAR 48.104–3

permits the use of no-cost settlements

when the contracting officer has

balanced the administrative costs of

negotiating a settlement against the

anticipated savings, and when, in the

contracting officers judgment, reliance

on other VECP approaches likely would

not be more cost-effective, and the nocost settlement would provide adequate

consideration to the Government. The

no-cost VECP alternative was not

intended for use when significant cost

savings are anticipated on the instant

contract.

B. Regulatory Flexibility Act

The changes may 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 could reduce the number of no-cost

VECP settlements negotiated between

the Government and private entities. An

Initial Regulatory Flexibility Analysis

(IRFA) has been prepared and is

summarized as follows:

This interim rule clarifies that the guidance

at FAR 48.104–3, Sharing alternative—nocost settlement method, permits use of nocost VECPs settlements when the contracting

officer has balanced the administrative costs

of negotiating a settlement against the

anticipated savings; and, in the contracting

officer’s judgment, reliance on other VECP

approaches likely would not be more costeffective, and the no-cost settlement would

provide adequate consideration to the

Government. The no-cost VECP alternative

was not intended for use when significant

cost savings are anticipated on the instant

contract.

A copy of the IRFA has been submitted

to the Chief Counsel for Advocacy of the

Small Business Administration and may

be obtained from the FAR Secretariat at

the address above. Comments are

invited. 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. (FAR Case 96–011),

in correspondence.

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

collection 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.

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 preclude

misinterpretation and misuse of existing

guidance and resulting VECP

settlements that do not provide the

Government with appropriate

consideration. However, pursuant to

Pub. L. 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 48

Government procurement.

Dated: June 11, 1998.

Edward C. Loeb,

Director, Federal Acquisition Policy Division.

Therefore, 48 CFR Part 48 is amended

as set forth below:

PART 48—VALUE ENGINEERING

1. The authority citation for 48 CFR

Part 48 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 48.104–3 is revised to read

as follows:

48.104–3 Sharing alternative—no-cost

settlement method.

In selecting an appropriate

mechanism for incorporating a VECP

into a contract, the contracting officer

shall analyze the different approaches

available to determine which one would

be in the Government’s best interest.

Contracting officers should balance the

administrative costs of negotiating a

settlement against the anticipated

savings. A no-cost settlement may be

used if, in the contracting officer’s

judgment, reliance on other VECP

approaches likely would not be more

cost-effective, and the no-cost

settlement would provide adequate

consideration to the Government. Under

this method of settlement, the contractor

would keep all of the savings on the

instant contract, and all savings on its

concurrent contracts only. The

Government would keep all savings

resulting from concurrent contracts

placed with other sources, savings from

all future contracts, and all collateral

savings. Use of this method must be by

mutual agreement of both parties for

individual VECPs.

[FR Doc. 98–16121 Filed 6–19–98; 8:45 am]

BILLING CODE 6820–EP–P

DEPARTMENT OF DEFENSE

GENERAL SERVICES

ADMINISTRATION

NATIONAL AERONAUTICS AND

SPACE ADMINISTRATION

48 CFR Parts 5, 8, 31, 45, and 53

[FAC 97–05; Item XI]

Federal Acquisition Regulation;

Technical Amendments

AGENCIES: Department of Defense (DOD),

General Services Administration (GSA),

and National Aeronautics and Space

Administration (NASA).

ACTION: Technical amendments.

SUMMARY: This document makes

amendments to the Federal Acquisition

Regulation in order to update references

and make editorial changes.

EFFECTIVE DATE: June 22, 1998.

FOR FURTHER INFORMATION CONTACT: The

FAR Secretariat, Room 4035, GS

Building, Washington, DC 20405, (202)

501–4755.

List of Subjects in 48 CFR Parts 5, 8, 31,

45, and 53

Government procurement.

Dated: June 11, 1998.

Edward C. Loeb,

Director, Federal Acquisition Policy Division.

Therefore, 48 CFR Parts 5, 8, 31, 45,

and 53 are amended as set forth below:

1. The authority citation for 48 CFR

Parts 5, 8, 31, 45, and 53 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 5—PUBLICIZING CONTRACT

ACTIONS

5.201 [Amended]

2. Section 5.201 is amended in

paragraph (b)(2) by revising ‘‘(see

5.205(d))’’ to read ‘‘(see 5.205(e))’’.

PART 8—REQUIRED SOURCES OF

SUPPLIES AND SERVICES

8.404 [Amended]

3. Section 8.404 is amended in the

first sentence of paragraph (a) by

revising ‘‘13.202(c)(3)’’ to read ‘‘13.303–

2(c)(3)’’.
34080 Federal Register / Vol. 63, No. 119 / Monday, June 22, 1998 /Rules and Regulations

PART 31—CONTRACT COST

PRINCIPLES AND PROCEDURES

31.002 [Amended]

4. Section 31.002 is amended by

revising ‘‘Guidance for New

Contractors’’ to read ‘‘Information for

Contractors’’.

PART 45—GOVERNMENT PROPERTY

45.607–2 [Amended]

5. Section 45.607–2 is amended in the

third sentence of paragraph (b) by

revising ‘‘DLA:SIP’’ to read ‘‘DLSC–LC’’.

PART 53—FORMS

6. Section 53.101 is amended by

revising the last sentence to read as

follows:

§ 53.101 Requirements for use of forms.

* * * The specific location of each

requirement is identified in subpart

53.2.

[FR Doc. 98–16122 Filed 6–19–98; 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

Administrator for the National

Aeronautics and Space Administration

as the Federal Acquisition Regulation

(FAR) Council. This Small Entity

Compliance Guide has been prepared in

accordance with Section 212 of the

Small Business Regulatory Enforcement

Fairness Act of 1996 (Public Law 104–

121). It consists of a summary of the

rules appearing in Federal Acquisition

Circular (FAC) 97–05 which amends the

FAR. Further information regarding

these rules may be obtained by referring

to FAC 97–05 which precedes this

document. The FAC, including this

document, may be obtained from the

Internet at http://www.arnet.gov/far.

FOR FURTHER INFORMATION CONTACT: The

FAR Secretariat, (202) 501–4755.

SUPPLEMENTARY INFORMATION:

LIST OF RULES IN FAC 97–05

Item Subject Far case Analyst

I Subcontract Consent ......................................................................................................... 95–011 ............................... Klein

II Availability of Specifications .............................................................................................. 97–034 ............................... DeStefano

III Liquidated Damages ......................................................................................................... 89–042/97–300 .................. Moss

IV Limits on Fee for Cost-Plus-Incentive-Fee and Cost-Plus-Award-Fee Contracts ............ 97–042 ............................... DeStefano

V Rehabilitation Act, Workers With Disabilities (Interim) ..................................................... 96–610 ............................... O’Neill

VI Trade Agreements Thresholds .......................................................................................... 97–044 ............................... Linfield

VII Restrictions on Purchases from Sudan ............................................................................ 97–301 ............................... Linfield

VIII Software Copyrights .......................................................................................................... 97–614 ............................... O’Neill

IX Travel Reimbursement ...................................................................................................... 97–007 ............................... Nelson

X No-Cost Value Engineering Change Proposals (Interim) ................................................. 96–011 ............................... Klein

Item I—Subcontract Consent (FAR Case

95–011)

This final rule amends FAR Parts 4,

22, 35, 36, 44, and 52 to reduce

requirements for consent to subcontract.

The rule eliminates consent

requirements for contractors that have

an approved purchasing system, except

when specific contracts requiring

consent are identified by the contracting

officer; eliminates consent requirements

for fixed-price incentive contracts and

fixed-price redeterminable contracts;

and increases, to the simplified

acquisition threshold, the dollar level at

which consent requirements are

included in time-and-materials, laborhour, and letter contracts.

Item II—Availability of Specifications

(FAR Case 97–034)

This final rule amends FAR Parts 9

and 11 and the provisions at 52.211–1,

52.211–2, and 52.212–1 to update

addresses and other information

regarding the availability of

specifications, standards, and item

descriptions that may be cited in

Government solicitations and contracts.

In addition, the rule clarifies the pricing

policy regarding specifications,

standards, and commercial item

descriptions issued by GSA.

Item III—Liquidated Damages (FAR

Cases 89–042 and 97–300)

This final rule amends FAR Parts 11,

19, 52, and 53 to clarify policy on

liquidated damages and commercial

subcontracting plans pertaining to

requirements for subcontracting with

small, small disadvantaged, and

women-owned small business concerns.

The rule implements Section 304 of the

Business Opportunity Development

Reform Act of 1988 (Pub. L. 100–656)

and OFPP Policy Letter 95–1,

Subcontracting Plans for Companies

Supplying Commercial Items. The

interim rule published in FAC 84–50,

FAR case 89–042, 54 FR 30708, July 21,

1989, has been merged with this final

rule.

Item IV—Limits on Fee for Cost-PlusIncentive-Fee and Cost-Plus-Award-Fee

Contracts (FAR Case 97–042)

This final rule amends FAR Part 16 to

clarify fee limitations pertaining to costreimbursement contracts. The FAR Part

15 rewrite in FAC 97–02 eliminated

non-statutory fee limitations for costplus-incentive-fee and cost-plus-awardfee contracts. This final rule makes

conforming changes to FAR Part 16.

Item V—Rehabilitation Act, Workers

With Disabilities (FAR Case 96–610)

This interim rule amends FAR

Subpart 22.14 and the clauses at

52.212–5 and 52.222–36 to implement

revised Department of Labor regulations

regarding affirmative action to employ

and advance in employment qualified

individuals with disabilities. The dollar

threshold for use of the clause at

52.222–36 has been increased from

$2,500 to $10,000.