[Federal Register Volume 61, Number 18 (Friday, January 26, 1996)]
[Rules and Regulations]
[Pages 2633-2634]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-1019]



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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 15 and 52

[FAC 90-37; FAR Case 92-010; Item V]
RIN 9000-AF77


Federal Acquisition Regulation; Nonprofit Institutions Clause 
Prescription

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). These changes revise the 
prescriptions for use of the clauses, Termination of Defined Benefit 
Pension Plans and Reversion or Adjustment of Plans for Postretirment 
Benefits Other Than Pensions (PRB), and also clarifies the language of 
the clauses. 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 92-010.

SUPPLEMENTARY INFORMATION: 

A. Background

    The wording of the prescriptions at 15.804-8(e) and (f) currently 
implies that the clauses at 52.215-27, Termination of Defined Benefit 
Pension Plans, and 52.215-39, Reversion or Adjustment of Plans for 
Postretirement Benefits Other Than Pensions, should also be used in 
solicitions and contracts with noncommercial organizations. The clauses 
refer to the cost principles applicable to commercial organizations in 
FAR subpart 31.2, whereas OMB Circulars A-21, A-87 and A-122 contain 
the cost principles governing contracts with noncommercial 
organizations. In addition, the prescriptions currently contain 
dissimilar criteria concerning the use of the clauses in preaward or 
postaward cost situations. The revisions to the prescriptions at 
15.804-8(e) and (f) correct these inconsistencies and clarify when the 
clauses at 52.215-27 and 52.215-39 should be used. Additional revisions 
to the clauses clarify the requirements specified in them. A proposed 
rule was published in the Federal Register at 59 FR 16389, April 6, 
1994. Three public comments were received. No changes were made as a 
result of those comments.

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 most contracts awarded to small businesses are 
awarded on a competitive, fixed-price basis and the cost principles do 
not apply. It is estimated that the number of contract actions awarded 
to small businesses which require the submission of cost or pricing 
data average less than 1 percent of the total number of small business 
actions.

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 15 and 52

    Government procurement.

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

    Therefore, 48 CFR Parts 15 and 52 are amended as set forth below:
    1. The authority citation for 48 CFR Parts 15 and 52 continue 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 15--CONTRACTING BY NEGOTIATION

    2. Section 15.804-8 is amended by revising paragraphs (e) and (f); 
and in paragraph (g) by removing the word ``certified''. The revised 
text reads as follows:


15.804-8  Contract clauses and solicitation provisions.

* * * * *
    (e) Termination of defined benefit pension plans. The contracting 
officer shall insert the clause at 52.215-27, Termination of Defined 
Benefit Pension Plans, in solicitations and contracts for which it is 
anticipated that cost or pricing data will be required or for which any 
preaward or postaward cost determinations will be subject to part 31.
    (f) Postretirement benefit funds. The contracting officer shall 
insert the clause at 52.215-39, Reversion or Adjustment of Plans for 
Postretirement Benefits Other Than Pensions (PRB), in solicitations and 
contracts for which it is anticipated that cost or pricing data will be 
required or for which any preaward or postaward cost determination will 
be subject to part 31.
* * * * *

[[Page 2634]]


PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

    3. Section 52.215-27 is amended by revising the clause to read as 
follows:


52.215-27  Termination of Defined Benefit Pension Plans.

* * * * *

Termination of Defined Benefit Pension Plans (Mar 1996)

    The Contractor shall promptly notify the Contracting Officer in 
writing when it determines that it will terminate a defined benefit 
pension plan or otherwise recapture such pension fund assets. If 
pension fund assets revert to the Contractor or are constructively 
received by it under a termination or otherwise, the Contractor 
shall make a refund or gift a credit to the Government for its 
equitable share of the gross amount withdrawn. The Government's 
equitable share shall reflect the Government's participation in 
pension costs through those contracts for which cost or pricing data 
(see 15.804 of the Federal Acquisition Regulation (FAR)) were 
submitted or which are subject to FAR Part 31. The Contractor shall 
include the substance of this clause in all subcontracts under this 
contract which meets the applicability requirements of FAR 15.804-
8(e).

(End of clause)

    4. Section 52.215-39 is amended by revising the clause to read as 
follows:


52.215-39  Reversion or Adjustment of Plans for Postretirement Benefits 
Other Than Pensions (PRB).

* * * * *

Reversion or Adjustment of Plans for Postretirement Benefits Other Than 
Pensions (PRB) (Mar 1996)

    The Contractor shall promptly notify the Contracting Officer in 
writing when it determines that it will terminate or reduce a PRB 
plan. If PRB fund assets revert, or inure, to the Contractor or are 
constructively received by it under a plan termination, reduction, 
or otherwise, the Contractor shall make a refund or give a credit to 
the Government for its equitable share of any amount of previously 
funded PRB costs which revert or inure to the Contractor. Such 
equitable share shall reflect the Government's previous 
participation in PRB costs through those contracts for which cost or 
pricing data (see 15.804 of the Federal Acquisition Regulation 
(FAR)) were submitted or which are subject to FAR Part 31. The 
Contractor shall include the substance of this clause in all 
subcontracts under this contract which meet the applicability 
requirements of FAR 15.804-8(f).

(End of clause)

[FR Doc. 96-1019 Filed 1-25-96; 8:45 am]
BILLING CODE 6820-EP-M