Federal Register / Vol. 60, No. 104 / Wednesday, May 31, 1995 / Rules and Regulations 28503

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

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

PART 25—FOREIGN ACQUISITION

25.1001 [Amended]

2. Section 25.1001 is amended in the

definition of ‘‘Sanctioned member state

of the EC’’ by removing ‘‘Federal

Republic of Germany,’’.

PART 52—SOLICITATION PROVISIONS

AND CONTRACT CLAUSES

52.225–18 [Amended]

3. Section 52.225–18 is amended by

removing ‘‘Federal Republic of

Germany,’’ from the definition

‘‘Sanctioned member state of the EC’’.

52.225–19 [Amended]

4. Section 52.225–19 is amended by

removing ‘‘Federal Republic of

Germany,’’ from the definition

‘‘Sanctioned member state of the

European Community (EC)’’.

[FR Doc. 95–13259 Filed 5–30–95; 8:45 am]

BILLING CODE 6820–EPD–M

DEPARTMENT OF DEFENSE

GENERAL SERVICES

ADMINISTRATION

NATIONAL AERONAUTICS AND

SPACE ADMINISTRATION

48 CFR Part 31

[FAC 90–27; FAR Case 94–9; Item VI]

RIN 9000–AC14

Federal Acquisition Regulation;

Interdivisional Transfers

AGENCIES: Department of Defense (DOD),

General Services Administration (GSA),

and National Aeronautics and Space

Administration (NASA).

ACTION: Interim rule with request for

comment.

SUMMARY: The Civilian Agency

Acquisition Council and the Defense

Acquisition Regulations Council have

agreed to an interim rule amending the

Federal Acquisition Regulation (FAR).

The cost principle criteria for cost of

interdivisional transfers are amended to

permit interdivisional transfers at price

rather than cost under criteria that more

closely approximate those applied to

subcontracts eligible for exemption or

waiver of cost or pricing data.

This regulatory action was not subject

to Office of Management and Budget

review under Executive Order 12866,

dated September 30, 1993.

DATES: Effective Date: May 31, 1995.

Comment Date: Comments should be

submitted to the FAR Secretariat at the

address shown below on or before July

31, 1995 to be considered in the

formulation of a final rule.

ADDRESSES: Interested parties should

submit written comments to: General

Services Administration, FAR

Secretariat (VRS), 18th & F Streets, NW,

Room 4035, Attn: Ms. Beverly Fayson,

Washington, DC 20405.

Please cite FAC 90–27, FAR case 94–

9 in all correspondence related to this

case.

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 4037, GS Building,

Washington, DC 20405 (202) 501–4755.

Please cite FAC 90–27, FAR case 94–9.

SUPPLEMENTARY INFORMATION:

A. Background

This interim FAR rule revises FAR

31.205–26, Material Costs, to make it

clear that interdivisional transfers made

at price should be treated in the same

manner as subcontracts for purposes of

applying the requirements of FAR

15.804–3.

B. Regulatory Flexibility Act

This interim rule is not expected to

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 are awarded on a

competitive, fixed-price basis and the

cost principles do not apply. The cost

principles only apply to contracts for

which cost or pricing data has been

submitted. An Initial Regulatory

Flexibility Analysis has, therefore, not

been performed. Comments from small

entities concerning the affected FAR

subpart will be considered in

accordance with 5 U.S.C. 610 of the Act.

Such comments must be submitted

separately and should cite 5 U.S.C. 601,

et seq. (FAC 90–27, FAR case 94–9), 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 OMB

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 compelling

reasons exist to promulgate this interim

rule without prior opportunity for

public comment. This action is

necessary to provide an immediate

benefit to Government and Industry.

The rule will permit interdivisional

transfers at price rather than cost for

commercial items, under criteria

identical to those used in applying the

exception provisions of the Truth in

Negotiations Act to subcontracts.

However, pursuant to Public Law 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 31

Government procurement.

C. Allen Olson,

Director, Office of Federal Acquisition Policy.

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 31.205–26 is amended by

revising paragraph (e) to read as follows:

31.205–26 Material costs.

* * * * *

(e) Allowance for all materials,

supplies, and services that are sold or

transferred between any divisions,

subsidiaries, or affiliates of the

contractor under a common control

shall be on the basis of cost incurred in

accordance with this subpart. However,

allowance may be at a price when it is

the established practice of the

transferring organization to price

interorganizational transfers at other

than cost for commercial work of the

contractor or any division, subsidiary,

or affiliate of the contractor under a

common control, and when—

(1)(i) The price is based on an

‘‘established catalog or market price of

commercial items sold in substantial

quantities to the general public’’ in

accordance with 15.804–3;

(ii) The price is based on ‘‘adequate

price competition’’ in accordance with

15.804–3; or

(iii) A waiver is granted in accordance

with 15.804–3(i); and
28504 Federal Register / Vol. 60, No. 104 / Wednesday, May 31, 1995 / Rules and Regulations

(2) The contracting officer has not

determined the price to be

unreasonable.

* * * * *

[FR Doc. 95–13260 Filed 5–30–95; 8:45 am]

BILLING CODE 6820–EPD–M