[Federal Register Volume 60, Number 50 (Wednesday, March 15, 1995)]
[Notices]
[Page 14171]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-6293]




Federal Register / Vol. 60, No. 50 / Wednesday, March 15, 1995 / 
Notices 
[[Page 14171]] 

DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

[FAR Case 94-764]


OMB Clearance Request for Contract Financing

AGENCIES: Department of Defense (DOD), General Services Administration 
(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Notice of new request for OMB clearance.

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SUMMARY: Under the provisions of the Paperwork Reduction Act of 1980 
(44 U.S.C. 3501), the Federal Acquisition Regulation (FAR) Secretariat 
has submitted to the Office of Management and Budget (OMB) a request to 
review and approve a new information collection requirement concerning 
Contract Financing.

DATES: Comments may be submitted on or before May 15, 1995.

ADDRESSES: Send comments to Mr. Peter Weiss, FAR Desk Officer, OMB, 
Room 10236, NEOB, Washington, DC 20503.

FOR FURTHER INFORMATION CONTACT: Beverly Fayson, Office of Federal 
Acquisition Policy, GSA (202) 501-4755.

SUPPLEMENTARY INFORMATION:

A. Purpose

    The Federal Acquisition Streamlining Act of 1994, Pub. L. 103-355, 
provides authorities that streamline the acquisition process and 
minimize burdensome government-unique requirements. Sections 2001 and 
2051 of the Federal Acquisition Streamlining Act of 1994 substantially 
changed the statutory authorities for Government financing of 
contracts. Sections 2001(f) and 2051(e) provide specific authority for 
Government financing of purchases of commercial items, and sections 
2001(b) and 2051(b) substantially revised the authority for Government 
financing of purchases of non-commercial items.
    Sections 2001(f) and 2051(e) provide specific authority for 
Government financing of purchases of commercial items. These paragraphs 
authorize the Government to provide contract financing with certain 
limitations:
    <bullet> The financing must be in the best interest of the 
Government,
    <bullet> The financing cannot exceed 15 percent until some 
performance of work under the contract,
    <bullet> The terms and conditions must be appropriate or customary 
in the commercial marketplace.
    The above statutory provisions also remove from financing of 
commercial purchases certain restrictions applicable to financing of 
non-commercial purchases by other provisions of 10 U.S.C. 2307 and 41 
U.S.C. 255.
    Sections 2001(b) and 2051(b) also amend the authority for 
Government financing of non-commercial purchases by authorizing 
financing on the basis of certain classes of measures of performance.
    To implement these changes, DOD, NASA, and GSA propose to amend the 
Federal Acquisition Regulation by revising Subparts 32.0, 32.1, and 
32.5; by adding new Subparts 32.2 and 32.10; and by adding new clauses 
to 52.232. The statutory changes create a fundamental distinction 
between financing of purchases of commercial and non-commercial items. 
As a result, the subparts of Part 32, Contract Financing, fall into 
three logical categories:
    <bullet> Subparts applicable to both commercial and non-commercial 
financing,
    <bullet> Subparts applicable to only commercial financing, and
    <bullet> Subparts applicable to only non-commercial financing.
    The proposed rule will enable the Government to provide financing 
to assist in the performance of contracts for commercial items and 
provide financing for non-commercial items based on contractor 
performance.

B. Annual Reporting Burden

    Public reporting burden for this collection of information is 
estimated to average 1 hour per request for commercial financing and .5 
hours per request for performance-based financing, including the time 
for reviewing instructions, searching existing data sources, gathering 
and maintaining the data needed, and completing and reviewing the 
collection of information. Send comments regarding this burden estimate 
or any other aspect of this collection of information, including 
suggestions for reducing this burden, to General Services 
Administration, FAR Secretariat, 18th & F Streets, NW, Room 4037, 
Washington, DC 20405, and to the FAR Desk Officer, Office of 
Information and Regulatory Affairs, Office of Management and Budget, 
Washington, DC 20503.
    The annual reporting burden for Commercial Financing is estimated 
as follows: Respondents, 1,000; responses per respondent, 5; total 
annual responses, 5,000; preparation hours per response, 1; and total 
response burden hours, 5,000.
    The annual reporting burden for Performance-Based Financing is 
estimated as follows: Respondents, 6,000; responses per respondent, 32; 
total annual responses, 192,000; preparation hours per response, .5; 
and total response burden hours, 96,000.

OBTAINING COPIES OF PROPOSALS: Requester may obtain copies of OMB 
applications or justifications from the General Services 
Administration, FAR Secretariat (VRS), Room 4037, Washington, DC 20405, 
telephone (202) 501-4755. Please cite OMB clearance request regarding 
Contract Financing, FAR case 94-764, in all correspondence.

    Dated: March 9, 1995.
Beverly Fayson,
FAR Secretariat.
[FR Doc. 95-6293 Filed 3-14-95; 8:45 am]
BILLING CODE 6820-34-P