18914 Federal Register / Vol. 61, No. 83 / Monday, April 29, 1996 / Rules and Regulations

DEPARTMENT OF DEFENSE

GENERAL SERVICES

ADMINISTRATION

NATIONAL AERONAUTICS AND

SPACE ADMINISTRATION

48 CFR Chapter 1

[Federal Acquisition Circular 90–38]

Federal Acquisition Regulation;

Introduction of Miscellaneous

Amendments

AGENCIES: Department of Defense (DOD),

General Services Administration (GSA),

and National Aeronautics and Space

Administration (NASA).

ACTION: Summary presentation of rules.

SUMMARY: This document serves to

introduce the rules which follow and

which comprise Federal Acquisition

Circular (FAC) 90–38. The Federal

Acquisition Regulatory Council has

agreed to issue FAC 90–38 to amend the

Federal Acquisition Regulation (FAR).

DATES: For effective dates, see

individual documents following this

one.

FOR FURTHER INFORMATION CONTACT: The

individual whose name appears in

relation to each FAR case or subject

area. For general information, contact

the FAR Secretariat, Room 4037, GS

Building, Washington, DC 20405 (202)

501–4755. Please cite FAC 90–38 and

FAR case number(s).

SUPPLEMENTARY INFORMATION: Federal

Acquisition Circular 90–38 amends the

Federal Acquisition Regulation (FAR) as

specified below:

Item Subject FAR case Contact point

I ............. Modification of Existing Contracts ................................................................................... 94–723 Al Winston, (703) 602–2119.

II ............ Application of Cost Accounting Standards Board Regulations to Educational Institutions.95–002 Jeremy Olson, (202) 501–

3221.

III ........... Assignment of Claims—Presidential Delegation ............................................................. 94–767 John Galbraith, (703) 697–

6710.

IV .......... Interest Clause Revisions ................................................................................................ 92–045 Jeremy Olson, (202) 501–

3221.

Case Summaries

For the actual revisions and/or

amendments to these FAR cases, refer to

the specific item number and subject set

forth in the documents following these

item summaries.

Item I—Modification of Existing

Contracts (FAR Case 94–723)

This interim rule amends FAR 43.102

to implement section 10002 of the

Federal Acquisition Streamlining Act of

1994, Public Law 103–355 (FASA).

Section 10002 states that final

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.

Item II—Application of Cost Accounting

Standards Board Regulations to

Educational Institutions (FAR Case 95–

002)

This final rule amends FAR Parts 1,

30, 42, and 52 to implement changes

made to the Cost Accounting Standards.

The Office of Federal Procurement

Policy, Cost Accounting Standards

Board (CASB), has amended the

regulatory provisions contained in

Chapter 99 of Title 48 of the Code of

Federal Regulations (FAR Appendix B).

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. The amendments to the

CASB regulations became effective on

January 9, 1995. (The entire FAR

Appendix B will be issued in the looseleaf pages of FAC 90–38.)

Item III—Assignment of ClaimsPresidential Delegation (FAR Case 94–

767)

This final rule amends FAR Subpart

32.8 to reflect the Presidential

delegation of authority to make

determinations of need for contractual

no-setoff commitments, and to provide

guidance for determinations of need

made in accordance with the

Presidential delegation dated October 3,

1995.

Item IV—Interest Clause Revisions (FAR

Case 92–045)

This final rule amends FAR Subpart

32.6 and the clause at 52.232–17 to

clarify that certain cost accounting

standards clauses provide for the use of

differing interest rates under differing

circumstances.

Dated: April 18, 1996.

Edward C. Loeb,

Director, Federal Acquisition Policy Division.

Federal Acquisition Circular

Number 90–38

Federal Acquisition Circular (FAC)

90–38 is issued under the authority of

the Secretary of Defense, the

Administrator of General Services, and

the Administrator for the National

Aeronautics and Space Administration.

FAR Cases 94–723 and 95–002 are

effective April 29, 1996; and FAR Cases

94–767 and 92–045 are effective June

28, 1996.
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