2136 Federal Register / Vol. 66, No. 7 / Wednesday, January 10, 2001 / Rules and Regulations

52.246–17 Warranty of Supplies of a

Noncomplex Nature.

As prescribed in 46.710(a)(1), insert a

clause substantially as follows:

WARRANTY OF SUPPLIES OF A

NONCOMPLEX NATURE (MAR 2001)

(a) Definitions. As used in this clause—

Acceptance means the act of an authorized

representative of the Government by which

the Government assumes for itself, or as an

agent of another, ownership of existing

supplies, or approves specific services as

partial or complete performance of the

contract.

Supplies means the end items furnished by

the Contractor and related services required

under this contract. The word does not

include ‘‘data.’’

* * * * *

134. Amend section 52.246–18 by

revising the introductory paragraph, the

date of the clause, and paragraph (a) of

the clause to read as follows:

52.246–18 Warranty of Supplies of a

Complex Nature.

As prescribed in 46.710(b)(1), insert a

clause substantially as follows:

WARRANTY OF SUPPLIES OF A COMPLEX

NATURE (MAR 2001)

(a) Definitions. As used in this clause—

Acceptance means the act of an authorized

representative of the Government by which

the Government assumes for itself, or as an

agent of another, ownership of existing and

identified supplies, or approves specific

services rendered, as partial or complete

performance of the contract.

Supplies means the end items

furnished by the Contractor and related

services required under this contract.

The word does not include ‘‘data.’’

* * * * *

135. Amend section 52.246–19 by

revising the introductory paragraph, the

date of the clause, and paragraph (a) of

the clause to read as follows:

52.246–19 Warranty of Systems and

Equipment under Performance

Specifications or Design Criteria.

As prescribed in 46.710(c)(1), the

contracting officer may insert a clause

substantially as follows:

WARRANTY OF SYSTEMS AND

EQUIPMENT UNDER PERFORMANCE

SPECIFICATIONS OR DESIGN CRITERIA

(MAR 2001)

(a) Definitions. As used in this clause—

Acceptance means the act of an authorized

representative of the Government by which

the Government assumes for itself, or as an

agent of another, ownership of existing and

identified supplies, or approves specific

services rendered, as partial or complete

performance of the contract.

Defect means any condition or

characteristic in any supplies or services

furnished by the Contractor under the

contract that is not in compliance with the

requirements of the contract.

Supplies means the end items furnished by

the Contractor and related services required

under this contract. Except when this

contract includes the clause entitled

Warranty of Data, supplies also mean ‘‘data.’’

* * * * *

136. Amend section 52.246–20 by

revising the introductory paragraph and

the date of the clause; and in paragraph

(a) of the clause by removing the

paragraph heading ‘‘Definitions’’ and

adding ‘‘Definition’’ in its place; and by

removing the definition ‘‘Correction’’.

The revised text reads as follows:

52.246–20 Warranty of Services.

As prescribed in 46.710(d), insert a

clause substantially as follows:

WARRANTY OF SERVICES (MAR 2001)

* * * * *

[FR Doc. 01–11 Filed 1–9–01; 8:45 am]

BILLING CODE 6820–EP–P

DEPARTMENT OF DEFENSE

GENERAL SERVICES

ADMINISTRATION

NATIONAL AERONAUTICS AND

SPACE ADMINISTRATION

48 CFR Parts 30 and 52

[FAC 97–22; FAR Case 2000–301; Item II]

RIN 9000–AI79

Federal Acquisition Regulation;

Applicability, Thresholds and Waiver

of Cost Accounting Standards

Coverage

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 Section

802 of the National Defense

Authorization Act for Fiscal Year 2000

and the Cost Accounting Standards

(CAS) Board’s final rule, Applicability,

Thresholds and Waiver of Cost

Accounting Standards Coverage. The

FAR rule revises CAS applicability

requirements, dollar thresholds, and

waiver requirements.

DATES: Effective Date: January 10, 2001.

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 Ms.

Linda Nelson, Procurement Analyst, at

(202) 501–1900. Please cite FAC 97–22,

FAR case 2000–301.

SUPPLEMENTARY INFORMATION:

A. Background

Section 802 of the National Defense

Authorization Act for Fiscal Year 2000

(Pub. L. 106–65)—

• Revised, at 41 U.S.C. 422(f)(2)(B),

the categories of contracts and

subcontracts that are exempt from all

CAS requirements;

• Required the Administrator for

Federal Procurement Policy to revise the

rules and procedures issued under 41

U.S.C. 422(f) to increase the dollar

threshold for full CAS coverage from

$25 million to $50 million; and

• Revised 41 U.S.C. 422(f) to permit

the head of an executive agency to

waive the applicability of CAS under

certain conditions.

In response to Public Law 106–65, the

CAS Board in the Office of Federal

Procurement Policy published an

interim rule in the Federal Register on

February 7, 2000 (65 FR 5990). The CAS

Board rule, Applicability, Thresholds

and Waiver of Cost Accounting

Standards Coverage, amended the

regulations at 48 CFR part 9903 to

implement Section 802. After analysis

of public comments, the CAS Board

converted its interim rule to a final rule,

with no change, and published the final

rule in the Federal Register on June 9,

2000 (65 FR 36768).

DoD, GSA, and NASA published an

interim rule in the Federal Register at

65 FR 36028, June 6, 2000. One

respondent submitted public comments

on the interim rule. The Councils

considered all comments before

agreeing to convert the interim rule to

a final rule without change.

This FAR rule—

• Amends the provision at FAR

52.230–1, Cost Accounting Standards

Notices and Certification, to remove the

requirement that a contractor or

subcontractor must have received at

least one CAS-covered contract

exceeding $1 million (‘‘trigger contract’’)

to be subject to ‘‘full CAS coverage,’’

since the CAS Board removed this

‘‘trigger contract’’ amount from its

corresponding solicitation provision,

Cost Accounting Standards Notices and

Certification, at 48 CFR 9903.201–3. The

CAS Board added a new ‘‘trigger

contract’’ dollar amount of $7.5 million

at paragraph (b)(7) of 48 CFR 9903.201–

1, CAS applicability, which is already

referenced at FAR 30.201–1;

• Revises FAR 30.201–4(b)(1),

Disclosure and consistency of cost

accounting practices, and amends the

provision at FAR 52.230–1 to reflect

changes made by the CAS Board to

Federal Register / Vol. 66, No. 7 / Wednesday, January 10, 2001 / Rules and Regulations 2137

increase the dollar threshold for full

CAS coverage from $25 million to $50

million; and

• Revises the CAS waiver procedures

and conditions at FAR 30.201–5, as

required by Section 802 of Pub. L. 106–

65.

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

contracts and subcontracts with small

businesses are exempt from all CAS

requirements in accordance with 48

CFR 9903.201–1(b)(3).

C. Paperwork Reduction Act

The Paperwork Reduction Act does

not apply because the changes to the

FAR do not impose information

collection requirements that require the

approval of the Office of Management

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

seq.

List of Subjects in 48 CFR Parts 30 and

52

Government procurement.

Dated: December 22, 2000.

Al Matera,

Acting Director, Federal Acquisition Policy

Division

Interim Rule Adopted as Final Without

Change

Accordingly, DoD, GSA, and NASA

adopt the interim rule amending 48 CFR

parts 30 and 52, which was published

in the Federal Register at 65 FR 36028,

June 6, 2000, as a final rule without

change.

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

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

[FR Doc. 01–12 Filed 1–9–01; 8:45 am]

BILLING CODE 6820–EP–P

DEPARTMENT OF DEFENSE

GENERAL SERVICES

ADMINISTRATION

NATIONAL AERONAUTICS AND

SPACE ADMINISTRATION

48 CFR Parts 32 and 52

[FAC 97–22; FAR Case 1999–016; Item III]

RIN 9000–AI74

Federal Acquisition Regulation;

Advance Payments for NonCommercial Items

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 permit federally

insured credit unions to participate in

the maintenance of special accounts for

advance payments.

DATE: Effective Date: March 12, 2001.

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) 501–4755. Please

cite FAC 97–22, FAR case 1999–016.

SUPPLEMENTARY INFORMATION:

A. Background

Prior to publication of this final FAR

rule, FAR Subpart 32.4, Advance

Payments for Non-Commercial Items,

required, unless exempted by FAR

32.409–3(e) or (f), that contractors

deposit advance payments in special

accounts separate from their general or

other funds. FAR 32.411 and other FAR

text excluded credit unions from

participating in the maintenance of

these special accounts by requiring that

contractors establish these special

accounts only at banks that are members

of the Federal Reserve System (FRS) or

insured by the Federal Deposit

Insurance Corporation (FDIC). However,

many credit unions are federally

insured through the National Credit

Union Administration (NCUA).

Therefore, these credit unions also are

able to provide the Government a

measure of security for Federal funds

advanced to contractors.

This final rule amends FAR Subpart

32.4 and FAR 52.232–12 to change

certain terminology (e.g., change the

word ‘‘bank’’ to ‘‘financial institution’’)

to provide contractors an additional

option of depositing advance payments

in special accounts maintained by credit

unions that are federally insured by

NCUA. This revision will foster

competition among financial

institutions that are in the business of

providing special accounts for advance

payment funds, without increasing the

risk to the Government.

DoD, GSA, and NASA published a

proposed rule in the Federal Register at

65 FR 25614, May 2, 2000. Two

respondents submitted public

comments on the proposed rule. The

Councils considered all comments

before agreeing to convert the proposed

rule to a final rule without change.

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 the

rule only applies to the very limited

number of contractors that receive

advance payments and deposit these

payments in special accounts.

C. Paperwork Reduction Act

The Paperwork Reduction Act does

not apply because the changes to the

FAR do not impose information

collection requirements that require the

approval of the Office of Management

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

seq.

List of Subjects in 48 CFR Parts 32 and

52

Government procurement.

Dated: December 22, 2000.

Al Matera,

Acting Director, Federal Acquisition Policy

Division.

Therefore, DoD, GSA, and NASA

amend 48 CFR parts 32 and 52 as set

forth below:

1. The authority citation for 48 CFR

parts 32 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).