[Federal Register Volume 66, Number 7 (Wednesday, January 10, 2001)]
[Rules and Regulations]
[Pages 2136-2137]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-12]


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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.

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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)--
    <bullet> Revised, at 41 U.S.C. 422(f)(2)(B), the categories of 
contracts and subcontracts that are exempt from all CAS requirements;
    <bullet> 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
    <bullet> 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--
    <bullet> 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;
    <bullet> 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

[[Page 2137]]

increase the dollar threshold for full CAS coverage from $25 million to 
$50 million; and
    <bullet> 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]
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