67024 Federal Register / Vol. 60, No. 248 / Wednesday, December 27, 1995 / Proposed Rules

DEPARTMENT OF DEFENSE

GENERAL SERVICES

ADMINISTRATION

NATIONAL AERONAUTICS AND

SPACE ADMINISTRATION

48 CFR Parts 46 and 52

[FAR Case 92–035]

RIN 9000–AG76

Federal Acquisition Regulation; Clause

Flowdown

AGENCIES: Department of Defense (DOD),

General Services Administration (GSA),

and National Aeronautics and Space

Administration (NASA).

ACTION: Proposed rule.

SUMMARY: The Civilian Agency

Acquisition Council and the Defense

Acquisition Regulations Council

(Councils) are proposing to amend the

Federal Acquisition Regulation (FAR) to

reduce the number of contract clauses

requiring flowdown to subcontractors.

This regulatory action was not subject to

Office of Management and Budget

review under Executive Order 12866,

dated September 30, 1993.

DATES: Comments should be submitted

on or before February 26, 1996 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 4037 Washington, DC 20405.

Please cite FAR case 92–035 in all

correspondence related to this case.

FOR FURTHER INFORMATION CONTACT: Mr.

Harry Rosinski at (202) 501–0692 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 FAR case 92–035.

SUPPLEMENTARY INFORMATION:

A. Background

The Councils conducted an extensive

review of all FAR clauses requiring

flowdown to subcontractors in an effort

to eliminate any unnecessary flowdown

requirements. As a result, the Councils

are proposing to eliminate requirements

for flowdown of the clauses at FAR

52.215–26, 52.216–5, 52.216–6, 52.216–

16, 52.216–17, 52.222–1, 52.236–21,

52.244–2(i), 52.246–23, 52.246–24, and

52.246–25.

B. Regulatory Flexibility Act

The proposed 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 it will reduce administrative

burden for Government contractors and

their subcontractors. An Initial

Regulatory Flexibility Analysis (IRFA)

has been prepared and will be provided

to the Chief Counsel for Advocacy for

the Small Business Administration. A

copy of the IRFA may be obtained from

the FAR Secretariat. Comments are

invited. Comments from small entities

concerning the affected FAR subpart

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 92–035),

in correspondence.

C. Paperwork Reduction Act

The Paperwork Reduction Act does

not apply because the proposed 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 Parts 46 and

52

Government procurement.

Dated: December 18, 1995.

Edward C. Loeb,

Acting Director, Office of Federal Acquisition

Policy.

Therefore, it is proposed that 48 CFR

parts 46 and 52 be amended as set forth

below:

1. The authority citation for 48 CFR

parts 46 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 46—QUALITY ASSURANCE

46.806 [Removed]

2. Section 46.806 is removed.

PART 52—SOLICITATION PROVISIONS

AND CONTRACT CLAUSES

52.215–26 [Amended]

3. Section 52.215–26 is amended by

revising the date of the clause to read

‘‘(DATE)’’ and by removing paragraph

(d).

4. 52.216–5 is amended by revising

the introductory paragraph, the date of

the clause, and paragraph (i) to read as

follows:

52.216–5 Price Redetermination—

Prospective.

As prescribed in 16.205–4, insert the

following clause:

PRICE REDETERMINATION—PROSPECTIVE

(DATE)

* * * * *

(i) Subcontracts. No subcontract placed

under this contract may provide for payment

on a cost-plus-a-percentage-of-cost basis.

* * * * *

(End of clause)

5. Section 52.216–6 is amended by

revising the introductory text, the date

of the clause, and paragraph (h) to read

as follows:

52.216–6 Price Redetermination—

Retroactive.

As prescribed in 16.206–4, insert the

following clause:

PRICE REDETERMINATION—

RETROACTIVE (DATE)

* * * * *

(h) Subcontracts. No subcontract placed

under this contract may provide for payment

on a cost-plus-a-percentage-of-cost basis.

* * * * *

(End of clause)

6. Section 52.216–16 is amended by

revising the introductory paragraph, the

date of the clause, and paragraph (h) to

read as follows:

52.216–16 Incentive Price Revision—Firm

Target.

As prescribed in 16.405(a), insert the

following clause:

INCENTIVE PRICE REVISION—FIRM

TARGET (DATE)

* * * * *

(h) Subcontracts. No subcontract placed

under this contract may provide for payment

on a cost-plus-a-percentage-of-cost basis.

* * * * *

(End of clause)

* * * * *

7. Section 52.216–17 is amended by

revising the introductory paragraph, the

date of the clause, and paragraph (j) to

read as follows:

52.216–17 Incentive Price Revision—

Successive Targets.

As prescribed in 16.405(b), insert the

following clause:

INCENTIVE PRICE REVISION—SUCCESSIVE

TARGETS (DATE)

* * * * *

(j) Subcontracts. No subcontract placed

under this contract may provide for payment

on a cost-plus-a-percentage-of-cost basis.

* * * * *

(End of clause)

* * * * *

8. Section 52.222–1 is amended by

revising the introductory paragraph and

the date of the clause; by removing the

paragraph designation ‘‘(a)’’ in

paragraph (a); and by removing

paragraph (b). The revised text reads as

follows:
Federal Register / Vol. 60, No. 248 / Wednesday, December 27, 1995 / Proposed Rules 67025

52.222–1 Notice to the Government of

Labor Disputes.

As prescribed in 22.103–5(a), insert

the following clause:

NOTICE TO THE GOVERNMENT OF LABOR

DISPUTES (DATE)

* * * * *

(End of clause)

52.236–21 [Amended]

9. Section 52.236–21 is amended by

revising the date of the clause to read

‘‘(DATE)’’ and by removing paragraph

(h).

52.244–2 [Amended]

10. Section 52.244–2 is amended by

removing and reserving paragraph (i).

52.246–23 [Amended]

11. Section 52.246–23 is amended by

revising the date of the clause to read

‘‘(DATE)’’ and by removing paragraph

(d).

52.246–24 [Amended]

12. Section 52.246–24 is amended by

revising the date of the clause to read

‘‘(DATE)’’ and by removing paragraphs

(f) and (g).

52.246–25 [Amended]

13. Section 52.246–25 is amended by

revising the date of the clause to read

‘‘(DATE)’’ and by removing paragraph

(d).

[FR Doc. 95–31204 Filed 12–26–95; 8:45 am]

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