Federal Register / Vol. 61, No. 83 / Monday, April 29, 1996 / Rules and Regulations 18915

Dated: April 17, 1996.

Eleanor R. Spector,

Director, Defense Procurement.

Dated: April 16, 1996.

Ida M. Ustad,

Deputy Associate Administrator, Office of

Acquisition Policy, GSA.

Dated: April 18, 1996.

Deidre A. Lee,

Associate Administrator for Procurement,

National Aeronautics and Space

Administration.

[FR Doc. 96–10427 Filed 4–26–96; 8:45 am]

BILLING CODE 6820–EP–P

48 CFR Part 43

[FAC 90–38; FAR Case 94–723; Item I]

RIN 9000–AG90

Federal Acquisition Regulation;

Modification of Existing Contracts

AGENCIES: Department of Defense (DOD),

General Services Administration (GSA),

and National Aeronautics and Space

Administration (NASA).

ACTION: Interim rule.

SUMMARY: This interim rule is issued

pursuant to the Federal Acquisition

Streamlining Act of 1994 (FASA)

(Public Law 103–355) to amend the

Federal Acquisition Regulation (FAR). It

implements Section 10002 of FASA

which authorizes regulations to provide

for modification of existing contracts

without requiring consideration, upon

request of the contractor, to incorporate

changes authorized by FASA. 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.

DATES: Effective Date: April 29, 1996.

Comment Date: Comments should be

submitted to the FAR Secretariat at the

address shown below on or before June

28, 1996 to be considered in the

formulation of a final rule.

ADDRESSES: Interested parties should

submit written comments to: General

Services Administration, FAR

Secretariat (VRS), 18th & F Streets NW.,

Room 4037, Attn: Ms. Beverly Fayson,

Washington, DC 20405.

Please cite FAC 90–38, FAR case 94–

723, in all correspondence related to

this case.

FOR FURTHER INFORMATION CONTACT: Mr.

Al Winston at (703) 602–2119 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 94–

723.

SUPPLEMENTARY INFORMATION:

A. Background

Section 10002 of FASA states that

regulations implementing FASA may

provide for modification of existing

contracts without consideration, upon

request of the contractor, to incorporate

changes authorized by FASA. Section

10002 also states that nothing in FASA

requires the renegotiation or

modification of existing contracts to

incorporate changes authorized by

FASA. The interim rule adopts the

policy of encouraging, but not requiring,

appropriate modifications without

consideration, upon the request of the

contractor. If the contracting officer

determines that modification of an

existing contract is appropriate to

incorporate changes authorized by

FASA, the modification should insert

the current version of the applicable

FAR clauses.

B. Regulatory Flexibility Act

The changes may have a significant

economic impact on a substantial

number of small entities within the

meaning of the Regulatory Flexibility

Act, 5 U.S.C. 601 et seq., because it will

require contractors seeking to amend

existing contracts to so notify the

contracting officer. An Initial Regulatory

Flexibility Analysis (IRFA) has been

prepared. A copy of the IRFA may be

obtained from the FAR Secretariat.

Comments are invited. 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 94–723), 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.

D. Determination To Issue an Interim

Rule

A determination has been made under

the authority of the Secretary of Defense

(DOD), the Administrator of General

Services (GSA), and the Administrator

of the National Aeronautics and Space

Administration (NASA) that compelling

reasons exist to promulgate this interim

rule without prior opportunity for

public comment. This action is

necessary because immediate

implementation as an interim rule will

provide significant benefits to industry

and the Government. Section 10002 of

FASA, authorizes contracting officers, if

requested by the prime contractor to

modify contracts without requiring

consideration, to incorporate changes

authorized by FASA. The regulatory

implementation of FASA has been a

success for both industry and the

Government. Implementation of FASA

Section 10002 as an interim rule will

enable industry and the Government to

gain immediate benefits, including the

potential reduction of procurement

costs. The interim rule authorizes the

adoption of any of the FASA rules that

will benefit the contracting parties. The

interim rule should involve no

substantial risk to industry, since

contractors must affirmatively request

adoption of the FASA rules to an

existing contract. It has been through

the process of the consideration and

adoption of the FAR rules to implement

FASA, that the potential benefits from

this interim rule became apparent.

However, pursuant to Public Law 98–

577 and FAR 1.501, public comments

received in response to this interim rule

will be considered in the formulation of

the final rule.

List of Subjects in 48 CFR Part 43

Government procurement.

Dated: April 18, 1996.

Edward C. Loeb,

Deputy Project Manager for Implementation

of the Federal Acquisition Streamlining Act

of 1994.

Therefore, 48 CFR Part 43 is amended

as set forth below:

PART 43—CONTRACT

MODIFICATIONS

1. The authority citation for 48 CFR

Part 43 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 43.102 is amended by

adding paragraph (c) to read as follows:

43.102 Policy.

* * * * *

(c) The Federal Acquisition

Streamlining Act of 1994, Public Law

103–355 (FASA), authorizes, but does

not require, contracting officers, if

requested by the prime contractor, to
18916 Federal Register / Vol. 61, No. 83 / Monday, April 29, 1996 / Rules and Regulations

modify contracts without requiring

consideration to incorporate changes

authorized by FASA amendments into

existing contracts. Contracting officers

are encouraged, if appropriate, to

modify contracts without requiring

consideration to incorporate these new

policies. The contract modification

should be accomplished by inserting

into the contract, as a minimum, the

current version of the applicable FAR

clauses.

[FR Doc. 96–10428 Filed 4–26–96; 8:45 am]

BILLING CODE 6820–EP–P

48 CFR Parts 1, 30, 42, and 52

[FAC 90–38; FAR Case 95–002; Item II]

RIN 9000–AG71

Federal Acquisition Regulation;

Application of Cost Accounting

Standards Board Regulations to

Educational Institutions

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 to amend the

Federal Acquisition Regulation (FAR) to

implement changes made to the Cost

Accounting Standards (CAS). The final

rule applies to educational institutions

receiving a negotiated Federal contract

or subcontract award in excess of

$500,000 (excluding contracts awarded

for the operation of Federally Funded

Research and Development Centers

(FFRDCs) which are already subject to

CAS Board regulations), and requires

that such educational institutions

comply with certain specified CAS

Board rules, regulations and standards.

The revisions to the FAR are based on

the CAS Board’s amendments to 48 CFR

Chapter 99. 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: April 29, 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 90–38, FAR case 95–

002.

SUPPLEMENTARY INFORMATION:

A. Background

The Office of Federal Procurement

Policy, Cost Accounting Standards

Board (CASB), has amended the

regulatory provisions contained at 48

CFR Chapter 99. The amendments apply

to educational institutions receiving a

negotiated Federal contract or

subcontract award in excess of $500,000

(excluding contracts awarded for the

operation of Federally Funded Research

and Development Centers (FFRDCs)

which are already subject to CASB

regulations) and require that such

educational institutions comply with

certain specified CASB rules,

regulations, and Cost Accounting

Standards (CAS). The CAS final rule

was published in the Federal Register

on November 8, 1994, at 59 FR 55746,

and became effective on January 9,

1995, and is authorized pursuant to

section 26 of the Office of Federal

Procurement Policy Act. The Board has

taken action on this topic in order to

promote uniformity and consistency in

educational institutions’ cost accounting

practices.

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

comment is not required because the

requirements for the regulation were

published by the CASB and codified at

48 CFR Chapter 99. Therefore, the

Regulatory Flexibility Act does not

apply. However, comments from small

entities concerning the affected FAR

subparts 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 95–002).

C. Paperwork Reduction Act

The information collection aspects of

this rule have been approved by the

Office of Management and Budget and

assigned Control Number 0348–0055.

D. Public Comments

Public comments are not necessary

because the policies and procedures

contained in this regulation have

already been publicized in the Federal

Register by the Office of Federal

Procurement Policy Cost Accounting

Standards Board’s Notice of Proposed

Rulemaking made available for public

comment in the Federal Register, at 57

FR 60503, on December 21, 1992.

List of Subjects in 48 CFR Parts 1, 30,

42, and 52

Government procurement.

Dated: April 18, 1996.

Edward C. Loeb,

Director, Federal Acquisition Policy Division.

Therefore, 48 CFR Parts 1, 30, 42, and

52 are amended as set forth below:

PART 1—FEDERAL ACQUISITION

REGULATIONS SYSTEM

1. The authority citation for 48 CFR

Parts 1, 30, 42, 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).

1.106 [Amended]

2. Section 1.106 is amended in the

FAR segment column by removing

‘‘52.230–5’’ and inserting ‘‘52.230–6’’ in

its place.

PART 30—COST ACCOUNTING

STANDARDS ADMINISTRATION

30.000 [Amended]

3. Section 30.000 is amended by

removing ‘‘(appendix B, FAR loose-leaf

edition))’’ and inserting ‘‘(FAR appendix

B)’’ in its place, and by removing ‘‘(see

48 CFR chapter 99 (appendix B, FAR

loose-leaf edition), Subpart 9903.201–

1(b),’’ and inserting ‘‘(see 48 CFR

9903.201–1(b) (FAR appendix B)’’ in its

place.

30.201 [Amended]

4. Section 30.201 is amended in the

first sentence by removing ‘‘48 CFR

chapter 99 (appendix B, FAR loose-leaf

edition), Subpart 9903.201–1,’’ and

inserting ‘‘48 CFR 9903.201–1 (FAR

appendix B)’’ in its place, in the second

sentence by removing ‘‘subpart’’ and

inserting ‘‘48 CFR’’ in its place, and in

the last sentence by removing ‘‘48 CFR

chapter 99 (appendix B, FAR loose-leaf

edition), Subpart 9903.201–2.’’ and

inserting ‘‘48 CFR 9903.201–2 (FAR

appendix B).’’ in its place.

5. Section 30.201–1 is revised to read

as follows:

30.201–1 CAS applicability.

See 48 CFR 9903.201–1 (FAR

appendix B).

6. Section 30.201–2 is revised to read

as follows:

30.201–2 Types of CAS coverage.

See 48 CFR 9903.201–2 (FAR

appendix B).

7. Section 30.201–3 is revised to read

as follows: