[Federal Register Volume 61, Number 18 (Friday, January 26, 1996)]
[Rules and Regulations]
[Pages 2641-2642]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-1029]



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DEPARTMENT OF DEFENSE
DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 44 and 52
[FAC 90-37; FAR Case 92-040; Item XV]
RIN 9000-AF82


Federal Acquisition Regulation; Contractors' Purchasing Systems 
Reviews and Subcontractor Consent

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 have agreed on a final rule to amend 
the Federal Acquisition Regulation (FAR) to increase the dollar 
thresholds for the performance of Contractors' Purchasing Systems 
Reviews (CPSR's) and the thresholds for subcontract consent. 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: Ms. Linda Klein at (202) 501-3775 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 92-040.

SUPPLEMENTARY INFORMATION:

A. Background

    A proposed rule was published in the Federal Register at 59 FR 
16393, April 6, 1994. The rule proposed to raise (1) the threshold for 
performing CPSR's from $10 million to $25 million, and (2) in the 
clause, Subcontracts (Cost-Reimbursement and Letter Contracts), (i) the 
$10,000 threshold for notification to the contracting officer to 
$25,000, and (ii) the $10,000 threshold requiring additional 
information on certain subcontracts to $25,000. After evaluation of 
public comments, the Councils agreed to a final rule without 

[[Page 2642]]

change. As a result of internal review, it was determined that FAR 
44.201-2(a)(1) should also be revised to reflect the higher threshold.

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 threshold increase will reduce the number of 
contractors meeting the criteria for CPSR's and the number of small 
businesses requesting consent to subcontract as a result of the 
increased threshold will be minimal.

C. Paperwork Reduction Act

    The Paperwork Reduction Act (Public Law 96-511) is deemed to apply 
because the final rule contains information collection requirements. 
Accordingly, a request for approval of a new information collection 
requirement concerning 9000-0132 has been approved by the Office of 
Management and Budget under 44 U.S.C. 3501, et seq., through June 30, 
1997.

List of Subjects in 48 CFR Parts 44 and 52

    Government procurement.

    Dated: January 11, 1996.
Edward C. Loeb,
Acting Director, Office of Federal Acquisition Policy.

    Therefore, 48 CFR parts 44 and 52 are amended as set forth below:
    1. The authority citation for 48 CFR Parts 44 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 44--SUBCONTRACTING POLICIES AND PROCEDURES


44.201-2  [Amended]

    2. Section 44.201-2 is amended in paragraph (a)(1) by removing 
``$10,000'' and inserting ``$25,000'' in its place.


44.302  [Amended]

    3. Section 44.302 is amended in paragraph (a) by removing ``$10 
million'' each time (twice) it appears and inserting ``$25 million''.

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES


52.244-2  [Amended]

    4. Section 52.244-2 is amended by revising the date of the clause 
heading to read ``(MAR 1996)''; and by removing from paragraphs (a)(4) 
and (b)(1)(i) ``$10,000'' and inserting ``$25,000''.

[FR Doc. 96-1029 Filed 1-25-96; 8:45 am]
BILLING CODE 6820-EP-M