18920 Federal Register / Vol. 61, No. 83 / Monday, April 29, 1996 / Rules and Regulations

(d) The Contractor shall include in all

negotiated subcontracts which the Contractor

enters into, the substance of this clause,

except paragraph (b), and shall require such

inclusion in all other subcontracts, of any

tier, including the obligation to comply with

all applicable CAS in effect on the

subcontractor’s award date or, if the

subcontractor has submitted cost or pricing

data, on the date of final agreement on price

as shown on the subcontractor’s signed

Certificate of Current Cost or Pricing Data,

except that—

(1) If the subcontract is awarded to a

business unit which pursuant to 48 CFR

9903.201–2 is subject to other types of CAS

coverage, the substance of the applicable

clause set forth in 48 CFR 9903.201–4 shall

be inserted; and

(2) This requirement shall apply only to

negotiated subcontracts in excess of $500,000

where the price negotiated is not based on—

(i) Established catalog or market prices of

commercial items sold in substantial

quantities to the general public; or

(ii) Prices set by law or regulation, and

except that the requirement shall not apply

to negotiated subcontracts otherwise exempt

from the requirement to include a CAS clause

as specified in 48 CFR 9903.201–1.

(End of clause)

32. Newly designated section 52.230–

6 is amended:

(a) By revising the date of the clause

to read ‘‘(APR 1996)’’;

(b) In paragraph (a)(1) by removing

the phrase ‘‘to comply with a new or

modified CAS’’; and removing the

comma after the word ‘‘Standards’’ and

inserting in its place ‘‘; or subparagraph

(a)(3) and subdivisions (a)(4)(i) or

(a)(4)(iv) of the clause at FAR 52.230–5,

Cost Accounting Standards-Educational

Institution;’’;

(c) In paragraph (a)(2) by adding an

‘‘s’’ to the end of the word ‘‘clause’’ the

first time it appears; and adding after

the word ‘‘Standards,’’ the phrase ‘‘and

FAR 52.230–5, Cost Accounting

Standards-Educational Institution;’’;

(d) In paragraph (a)(3) by adding after

the word ‘‘Standards,’’ the phrase ‘‘and

FAR 52.230–5, Cost Accounting

Standards-Educational Institution;’’;

(e) In the introductory text of

paragraph (b) by adding after the word

‘‘ACO’’ the phrase ‘‘, or cognizant

Federal agency official,’’;

(f) By revising paragraphs (b)(1) and

(b)(2);

(g) In paragraph (b)(3) by adding an

‘‘s’’ at the end of the word ‘‘clause’’ the

first time it appears; and adding after

the word ‘‘Standards,’’ the phrase ‘‘and

FAR 52.230–5, Cost Accounting

Standards-Educational Institution;’’

(h) In paragraph (d) by removing

‘‘CAS clause’’ and inserting ‘‘clauses’’ in

its place; and adding after the citation

‘‘52.230–2,’’ the phrase ‘‘and 52.230–

5;’’;

(i) By revising the introductory text of

paragraph (e) and the first sentence of

paragraph (e)(2)(iv); and

(j) In paragraph (g) by removing ‘‘CAS

clause,’’ and inserting in its place

‘‘clauses at FAR 52.230–2 or 52.230–5,’’.

The revised text reads as follows:

52.230–6 Administration of Cost

Accounting Standards.

* * * * *

ADMINISTRATION OF COST

ACCOUNTING STANDARDS (APR 1996)

* * * * *

(b) * * *

(1) Cost impact proposals submitted for

changes in cost accounting practices required

in accordance with subparagraph (a)(3) and

subdivision (a)(4)(i) of the clause at FAR

52.230–2, Cost Accounting Standards; or

subparagraph (a)(3) and subdivisions (a)(4)(i)

or (a)(4)(iv) of the clause at FAR 52.230–5,

Cost Accounting Standards-Educational

Institution; shall identify the applicable

standard or cost principle and all contracts

and subcontracts containing the clauses

entitled Cost Accounting Standards or Cost

Accounting Standards-Educational

Institution, which have an award date before

the effective date of that standard or cost

principle.

(2) Cost impact proposals submitted for

any change in cost accounting practices

proposed in accordance with subdivisions

(a)(4) (ii) or (iii) of the clauses at FAR 52.230–

2, Cost Accounting Standards, and FAR

52.230–5, Cost Accounting StandardsEducational Institution; or with subparagraph

(a)(3) of the clause at FAR 52.230–3,

Disclosure and Consistency of Cost

Accounting Practices; shall identify all

contracts and subcontracts containing the

clauses at FAR 52.230–2, Cost Accounting

Standards, FAR 52.230–5, Cost Accounting

Standards-Educational Institution, and FAR

52.230–3, Disclosure and Consistency of Cost

Accounting Practices.

* * * * *

(e) For all subcontracts subject to the

clauses at FAR 52.230–2, 52.230–3, or

52.230–5—

* * * * *

(2) * * *

(iv) Any changes the subcontractor has

made or proposes to make to cost accounting

practices that affect prime contracts or

subcontracts containing the clauses at FAR

52.230–2, 52.230–3, or 52.230–5, unless these

changes have already been reported.

* * * * *

[FR Doc. 96–10429 Filed 4–26–96; 8:45 am]

BILLING CODE 6820–EP–P

48 CFR Part 32

[FAC 90–38; FAR Case 94–767; Item III]

RIN 9000–AG91

Federal Acquisition Regulation;

Assignment of Claims; Presidential

Delegation

AGENCIES: Department of Defense (DOD),

General Services Administration (GSA),

and National Aeronautics and Space

Administration (NASA).

ACTION: Final rule.

SUMMARY: This final rule is issued

pursuant to the Federal Acquisition

Streamlining Act of 1994 (Public Law

103–355) (FASA) to reflect the

Presidential delegation of authority to

make determinations of need and to

provide guidance for determinations of

need made in accordance with the

Presidential delegation dated October 3,

1995. This regulatory action was subject

to Office of Management and Budget

review under Executive Order 12866,

dated September 30, 1993. It is not a

major rule under 5 U.S.C. 804.

EFFECTIVE DATE: June 28, 1996.

FOR FURTHER INFORMATION CONTACT: Mr.

John Galbraith, Finance/Payment Team

Leader, at (703) 697–6710, in reference

to this case. For general information,

contact the FAR Secretariat, Room 4037,

18th & F Streets NW., Washington, DC

20405, (202) 501–4755. Please cite FAC

90–38, FAR Case 94–767 in all

correspondence related to this case.

SUPPLEMENTARY INFORMATION:

A. Background

The statutes authorizing assignments

of claims under Federal contracts

provide authority for the Government to

make no-setoff commitments under

certain conditions. FASA established a

requirement for a determination of need

by the President. Implementation was

published in the Federal Register, at 60

FR 49729, on September 26, 1995, as

FAR Case 94–761. The President, on

October 3, 1995, delegated the authority

to make determinations of need to the

Secretaries of Defense and Energy, the

Administrator of General Services, and

the heads of all other departments or

agencies, subject to such additional

guidance as provided by the

Administrator of the Office of Federal

Procurement Policy. The Administrator

of Procurement Policy, in accordance
Federal Register / Vol. 61, No. 83 / Monday, April 29, 1996 / Rules and Regulations 18921

with the President’s delegation, has

provided guidance for exercise of the

authority delegated by the President to

make determinations of need to make

no-setoff commitments under contracts

containing assignment of claims clauses.

Because this guidance is administrative

in nature and has no significant impact

upon the public, it is being published as

a final rule.

B. Regulatory Flexibility Act

As noted above, this rule implements

a change in authority for existing policy

and procedures in the FAR. This change

in authority to be cited does not change

the usage of the procedure (the no-setoff

commitment) or the impact upon small

entities. Thus, this 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 FAR subpart will be considered

in accordance with Section 610 of the

Act. Such comments must be submitted

separately and cite 5 U.S.C. 601 et seq.,

(FAC 90–38, FAR Case 94–767) 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 32

Government procurement.

Dated: April 18, 1996.

Edward C. Loeb,

Deputy Project Manager for the

Implementation of the Federal Acquisition

Streamlining Act of 1994.

Therefore, 48 CFR Part 32 is amended

as set forth below:

PART 32—CONTRACT FINANCING

1. The authority citation for 48 CFR

Part 32 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 32.803 is amended by

revising paragraph (d) to read as

follows:

32.803 Policies.

* * * * *

(d) Any contract of a designated

agency (see FAR 32.801), except a

contract under which full payment has

been made, may include a no-setoff

commitment only when a determination

of need is made by the head of the

agency, in accordance with the

Presidential delegation of authority

dated October 3, 1995, and after such

determination has been published in the

Federal Register. The Presidential

delegation makes such determinations

of need subject to further guidance

issued by the Office of Federal

Procurement Policy. The following

guidance has been provided: Use of the

no-setoff provision may be appropriate

to facilitate the national defense; in the

event of a national emergency or natural

disaster; or when the use of the no-setoff

provision may facilitate private

financing of contract performance.

However, in the event an offeror is

significantly indebted to the United

States, the contracting officer should

consider whether the inclusion of the

no-setoff commitment in a particular

contract is in the best interests of the

United States. In such an event, the

contracting officer should consult with

the Government officer(s) responsible

for collecting the debt(s).

* * * * *

Section 32.806 is amended by revising

paragraph (a)(2) to read as follows:

32.806 Contract clause.

(a) * * *

(2) If a no-setoff commitment has been

authorized (see FAR 32.803(d)), the

contracting officer shall use the clause

with its Alternate I.

* * * * *

[FR Doc. 96–10430 Filed 4–26–96; 8:45 am]

BILLING CODE 6820–EP–P

48 CFR Parts 32 and 52

[FAC 90–38; FAR Case 92–045; Item IV]

RIN 9000–AF44

Federal Acquisition Regulation;

Interest Clause; Revisions

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

clarify that certain Cost Accounting

Standards (CAS) clauses provide for the

use of differing interest rates under

differing circumstances. This regulatory

action was not subject to Office of

Management and Budget review under

Executive Order 12866, dated

September 30, 1993. It is not a major

rule under 5 U.S.C. 804.

EFFECTIVE DATE: June 28, 1996.

FOR FURTHER INFORMATION CONTACT: Mr.

Jeremy F. 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 90–38, FAR case 92–

045.

SUPPLEMENTARY INFORMATION:

A. Background

Under the CAS clauses at 52.230–2,

Cost Accounting Standards, 52.230–3,

Disclosure and Consistency of Cost

Accounting Practices, and 52.230–4,

Consistency in Cost Accounting

Practices, interest charges associated

with contract price adjustments

resulting from CAS noncompliance are

computed at the annual interest rate

established under section 6621 of the

Internal Revenue Code of 1986 (26

U.S.C. 6621), as required by subsection

5(h)(4) of the Office of Federal

Procurement Policy Act Amendments of

1988 (Public Law 100–679). The clauses

at 52.230–2 and 52.230–3 also specify

that disputes are subject to the Contract

Disputes Act which, in contrast, uses

the semiannual interest rate established

by the Secretary of the Treasury for the

Renegotiation Board pursuant to Public

Law 92–41. This rule revises FAR

32.610(b)(2), 32.613(h)(3), 32.614–1(c),

and the clause at 52.232–17 to clarify

that the CAS clauses at 52.230–2 and

52.230–3 provide for the use of differing

interest rates under differing

circumstances.

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 FAR

subparts 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–

38, FAR case 92–045), in

correspondence.