Federal Register / Vol. 61, No. 18 / Friday, January 26, 1996 / Rules and Regulations 2639

with whom plans should be negotiated,

the contracting officer shall consider the

integrity of the competitive process, the

goal of affording maximum practicable

opportunity for small, small

disadvantaged and women-owned small

business concerns to participate, and

the burden placed on offerors.

3. Section 19.708 is amended in

paragraph (b)(1)(iii) by revising ‘‘has

been’’ to read ‘‘is’’ and by adding a

sentence at the end of the paragraph to

read as follows:

19.708 Solicitation provisions and

contract clauses.

* * * * *

(b)(1) * * *

(iii) * * * When contracting by

negotiation, and subcontracting plans

are required with initial proposals as

provided for in 19.705–2(d), the

contracting officer shall use the clause

with its Alternate II.

* * * * *

PART 52—SOLICITATION PROVISIONS

AND CONTRACT CLAUSES

4. Section 52.219–9 is amended by

adding Alternate II at the end of the

section to read as follows:

52.219–9 Small, Small Disadvantaged, and

Women-Owned Small Business

Subcontracting Plan.

* * * * *

Alternate II (MAR 1996). As prescribed in

19.708(b)(1), substitute the following

paragraph (c) for paragraph (c) of the basic

clause:

(c) Proposals submitted in response to this

solicitation shall include a subcontracting

plan, which separately addresses

subcontracting with small business concerns,

small disadvantaged business concerns and

women-owned small business concerns. If

the offeror is submitting an individual

contract plan, the plan must separately

address subcontracting with small business

concerns, small disadvantaged business

concerns and women-owned small business

concerns with a separate part for the basic

contract and separate parts for each option (if

any). The plan shall be included in and made

a part of the resultant contract. The

subcontracting plan shall be negotiated

within the time specified by the Contracting

Officer. Failure to submit and negotiate a

subcontracting plan shall make the offeror

ineligible for award of a contract.

[FR Doc. 96–1025 Filed 1–25–96; 8:45 am]

BILLING CODE 6820–EP–M

DEPARTMENT OF DEFENSE

GENERAL SERVICES

ADMINISTRATION

NATIONAL AERONAUTICS AND

SPACE ADMINISTRATION

48 CFR Parts 28 and 52

[FAC 90–37; FAR Case 92–014; Item XII]

RIN 9000–AF78

Federal Acquisition Regulation;

Insurance—Liability to Third Persons

AGENCY: 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 have

agreed on a final rule to amend the

Federal Acquisition Regulation (FAR) to

delete a solicitation provision and

prescriptive language pertaining to

liability insurance under costreimbursement contracts. This

regulatory action was not subject to

Office of Management and Budget

review under Executive Order 12866,

dated September 30, 1993.

EFFECTIVE DATE: March 26, 1996.

FOR FURTHER INFORMATION CONTACT:

Mr. Peter O’Such at (202) 501–1759 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 90–37, FAR case 92–

014.

SUPPLEMENTARY INFORMATION:

A. Background

The deleted FAR language applied

only to cost-reimbursement contracts for

research and development awarded to

state agencies or charitable institutions

that claim partial or total immunity

from tort liability. For these entities,

Alternates I and II of 52.228–7,

Insurance—Liability to Third Persons,

limit the contract’s insurance

requirements and the Government’s

obligation to indemnify for third party

liability. A proposed rule was published

in the Federal Register at 59 FR 16392,

April 6, 1994. No substantive comments

were received in response to the

proposed rule.

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 under the

Regulatory Flexibility Act, 5 U.S.C. 601,

et seq., because the FAR language being

deleted applies only to costreimbursement contracts for research

and development that are awarded to

entities which, by virtue of their status

as either an agency of the state or as a

charitable institution, claim partial or

total immunity from tort liability under

such contracts. These entities are

believed to be few in number.

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

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 28 and

52

Government procurement.

Dated: January 11, 1996.

Edward C. Loeb,

Acting Director, Office of Federal Acquisition

Policy.

Therefore, 48 CFR Parts 28 and 52 are

amended as set forth below:

1. The authority citation for 48 CFR

Parts 28 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 28—BONDS AND INSURANCE

28.311–1 [Removed]

28.311–2 and 28.311–3 [28.311–2, 28.311–3

Redesignated as 28.311–1, 28.311–2]

2. Section 28.311–1 is removed and

sections 28.311–2 and 28.311–3 are

redesignated as 28.311–1 and 28.311–2,

respectively.

28.311–1 [Amended]

3. The newly designated 28.311–1 is

amended by removing the last two

sentences.

PART 52—SOLICITATION PROVISIONS

AND CONTRACT CLAUSES

52.228–6 [Removed and reserved]

4. Section 52.228–6 is removed and

reserved.

5. Section 52.228–7 is amended in the

introductory paragraph by removing the

citation ‘‘28.311–2’’ and inserting

‘‘28.311–1’’; by revising the date of the

clause heading; by revising paragraphs
2640 Federal Register / Vol. 61, No. 18 / Friday, January 26, 1996 / Rules and Regulations

(a)(1) and (c) introductory text; and by

removing Alternates I and II. The

revised text reads as follows:

52.228–7 Insurance—Liability to Third

Persons.

* * * * *

Insurance—Liability to Third Persons

(Marcg 1996)

(a)(1) Except as provided in subparagraph

(a)(2) of this clause, the Contractor shall

provide and maintain workers’

compensation, employer’s liability,

comprehensive general liability (bodily

injury), comprehensive automobile liability

(bodily injury and property damage)

insurance, and such other insurance as the

Contracting Officer may require under this

contract.

* * * * *

(c) The Contractor shall be reimbursed—

* * * * *

6. Section 52.245–7 is amended by

revising the date of the clause and the

first sentence of paragraph (j) to read as

follows:

52.245–7 Government Property

(Consolidated Facilities).

* * * * *

Government Property (Consolidated

Facilities March 1996)

* * * * *

(j) Indemnification of the Government. The

Contractor shall indemnify the Government

and hold it harmless against claims for injury

to persons or damage to property of the

Contractor or others arising from the

Contractor’s possession or use of the

facilities, except as specified in the clause at

FAR 52.228–7, Insurance—Liability to Third

Persons.* * *

* * * * *

7. Section 52.245–10 is amended by

revising the date of the clause and the

first sentence of paragraph (f) to read as

follows:

52.245–10 Government Property (Facilities

Acquisition).

* * * * *

Government Property (Facilities Acquisition

March 1996)

* * * * *

(f) Indemnification of the Government. The

Contractor shall indemnify the Government

and hold it harmless against claims for injury

to persons or damage to property of the

Contractor or others arising from the

Contractor’s possession or use of the

facilities, except as specified in the clause at

FAR 52.228–7, Insurance—Liability to Third

Persons.* * *

* * * * *

[FR Doc. 96–1026 Filed 1–25–96; 8:45 am]

BILLING CODE 6820–EP–M

DEPARTMENT OF DEFENSE

GENERAL SERVICES

ADMINISTRATION

NATIONAL AERONAUTICS AND

SPACE ADMINISTRATION

48 CFR Part 31

[FAC 90–37; FAR Case 94–002; Item XIII]

RIN 9000–AG79

Federal Acquisition Regulation;

Availability of Accounting Guide

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 have

agreed on a final rule amending the

Federal Acquisition Regulation (FAR) to

advise contractors on how to obtain an

informational accounting guide entitled

‘‘Guidance for New Contractors.’’ This

regulatory action was not subject to

Office of Management and Budget

review under Executive Order 12866,

dated September 30, 1993.

EFFECTIVE DATE: March 26, 1996.

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 90–37, FAR case 94–

002.

SUPPLEMENTARY INFORMATION:

A. Background

The final rule is the result of a

recommendation by the Office of

Federal Procurement Policy SWAT

Team that the FAR be revised to include

information on how contractors may

obtain an accounting guide, published

by the Defense Contract Audit Agency,

to assist in developing contractors’

accounting systems.

B. Regulatory Flexibility Act

The final rule does not constitute a

significant FAR revision within the

meaning of FAR 1.501 and Public Law

98–577, and publication for public

comments is not required. Therefore,

the Regulatory Flexibility Act does not

apply. However, comments from small

entities concerning the affected subpart

will be considered in accordance with 5

U.S.C. 610. Such comments must be

submitted separately and cite 5 U.S.C.

601, et seq. (FAC 90–37, FAR case 94–

002), 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

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 Part 31

Government procurement.

Dated: January 11, 1996.

Edward C. Loeb,

Acting 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 31.002 is added to read as

follows:

31.002 Availability of accounting guide.

Contractors needing assistance in

developing or improving their

accounting systems and procedures may

request a copy of the guide entitled

‘‘Guidance for New Contractors’’

(DCAAP 7641.90). The guide is

available from: Headquarters, Defense

Contract Audit Agency, Operating

Administrative Office, 8725 John J.

Kingman Road, Suite 2135, Fort Belvoir,

Virginia 22060–6219; Telephone No.

(703) 767–1066; Telefax No. (703) 767–

1061.

[FR Doc. 96–1027 Filed 1–25–96; 8:45 am]

BILLING CODE 6820–EP–M