31660 Federal Register / Vol. 61, No. 120 / Thursday, June 20, 1996 / Rules and Regulations

Dated: June 4, 1996.

Edward C. Loeb,

Director, Federal Acquisition Policy Division.

[FR Doc. 96–14539 Filed 6–19–96; 8:45 am]

BILLING CODE 6820–EP–P

48 CFR Part 37

[FAC 90–39; FAR Case 91–106; Item XXV]

RIN 9000–AF31

Federal Acquisition Regulation; Child

Care Services

AGENCIES: Department of Defense (DOD),

General Services Administration (GSA),

and National Aeronautics and Space

Administration (NASA).

ACTION: Interim rule adopted as final.

SUMMARY: The Civilian Agency

Acquisition Council and the Defense

Acquisition Regulations Council have

agreed to convert the interim rule

published in the Federal Register at 59

FR 67050, December 28, 1994, to a final

rule. The rule amends the Federal

Acquisition Regulation (FAR) to add a

definition of ‘‘child care services’’ and

to require contracting officers to ensure

that contracts for child care services

include requirements for criminal

history background checks of employees

in accordance with 42 U.S.C. 13041.

This regulatory action was not subject to

Office of Management and Budget

review under Executive Order 12866,

dated September 30, 1993, and is not a

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

EFFECTIVE DATE: June 20, 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 90–39, FAR case 91–

106.

SUPPLEMENTARY INFORMATION:

A. Background

This rule implements Subtitle E,

section 231 of the Crime Control Act of

1990 (Pub. L. 101–647), codified at 42

U.S.C. 13041, as amended by section

1094 of the Fiscal Year 1992 Defense

Authorization Act (Public Law 102–

190). The effective date for compliance

with Public Law 101–647 was May 29,

1991. Public Law 102–190 was effective

upon enactment on December 5, 1991.

In part, section 231 of Public Law

101–647 requires that child care

employees, hired to provide child care

services at a facility operated by the

Government or under contract with the

Government, undergo a criminal history

background check. The statute broadly

defines ‘‘child care services’’ as child

protective services (including the

investigation of child abuse and neglect

reports), social services, health and

mental health care, child day care,

education (whether or not directly

involved in teaching), foster care,

residential care, recreational or

rehabilitative programs, and detention,

correctional, or treatment services.

Subsequently, section 1094 of Public

Law 102–190 amended 42 U.S.C. 13041

to provide for the provisional

supervised employment of child care

employees prior to the completion of

the required criminal history

background check and specified

additional safety measures for Federal

child care service facilities.

B. Regulatory Flexibility Act

Under the interim rule, because

Subtitle E, Section 231 of the Crime

Control Act of 1990, Public Law 101–

647 (42 U.S.C. 13041), requires child

care employees hired under contract to

undergo a criminal history background

check, an Initial Regulatory Flexibility

Act Analysis was prepared. No

comments were received.

The Regulatory Flexibility Act, 5

U.S.C. 601, et seq., applies to this final

rule and a Final Regulatory Flexibility

Analysis (FRFA) has been prepared and

will be provided to the Chief Counsel

for Advocacy for the Small Business

Administration. A copy of the FRFA

may be obtained from the FAR

Secretariat.

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 37

Government procurement.

Interim Rule Adopted as Final Without

Change

Accordingly, the interim rule

amending 48 CFR Part 37, which was

published at 59 FR 67050, December 28,

1994 (FAC 90–23, Item XXVII) is

adopted as a final rule without change.

The authority citation for 48 CFR Part

37 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).

Dated: June 4, 1996.

Edward C. Loeb,

Director, Federal Acquisition Policy Division.

[FR Doc. 96–14540 Filed 6–19–96; 8:45 am]

BILLING CODE 6820–EP–P

48 CFR Parts 42 and 52

[FAC 90–39; FAR Case 95–009; Item XXVI]

RIN 9000–AG57

Federal Acquisition Regulation; QuickCloseout Procedures

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

ensure maximum use of the quickcloseout procedures. This regulatory

action was not subject to Office of

Management and Budget review under

Executive Order 12866, dated

September 30, 1993, and is not a major

rule under 5 U.S.C. 804.

EFFECTIVE DATE: August 19, 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 90–39, FAR case 95–

009.

SUPPLEMENTARY INFORMATION:

A. Background

This final rule amends FAR 42.708,

Quick-closeout procedure, the clause at

FAR 52.216–7, Allowable Cost and

Payment, and the clause at FAR 52.216–

13, Allowable Cost and Payment—

Facilities, to ease the restrictions and

maximize the use of the quick-closeout

procedure. This rule was based on the

recommendations of the Interagency

Process Action Team (PAT) sponsored

by the Air Force Materiel Command.

The PAT’s rationale was that, by raising

the dollar limitation of quick-closeout

procedures to those contracts with total

unsettled indirect costs not exceeding

$1 million in lieu of $500,000, the

number of contracts which could be

closed using quick-closeout procedures

would increase. Use of this procedure

would benefit contractors by allowing

them to invoice earlier and avoid the

administrative costs which would

otherwise be incurred for tracking these
Federal Register / Vol. 61, No. 120 / Thursday, June 20, 1996 / Rules and Regulations 31661

contracts until final indirect cost rates

are negotiated. In addition, the use of

quick-closeout procedures is voluntary

on the part of the contractor to ensure

that the contractor does not suffer any

loss. The final rule (1) revises FAR

42.708(a) by substituting the word

‘‘shall’’ for ‘‘may’’; (2) raises the

limitation in FAR 42.708(a)(2)(i) for

total unsettled indirect costs allocable to

any one contract from $500,000 to $1

million; and (3) revises FAR

42.708(a)(2)(ii) to permit the contracting

officer to waive the 15 percent

restriction based upon a risk assessment

that considers contractor’s accounting,

estimating, and purchasing systems;

other concerns of the cognizant contract

auditors; and any other pertinent

information. Paragraph (f) of the clause

at FAR 52.216–7 and paragraph (e) of

the clause at 52.216–13 have also been

revised to be consistent with the

revisions to 42.708 as outlined above.

A proposed rule was published in the

Federal Register on July 25, 1995 (60 FR

38196). Five comments from two

sources were received in response to the

proposed rule. All comments were

considered in the development of the

final rule.

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 within the

meaning of the Regulatory Flexibility

Act, 5 U.S.C. 601, et seq., because most

contracts awarded to small business are

awarded on the basis of a firm-fixed

price, and settlement of final indirect

cost rates is, therefore, not an issue. No

comments were received on the impact

of this rule on small entities during the

public comment period.

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 42 and

52

Government procurement.

Dated: June 4, 1996.

Edward C. Loeb,

Director, Federal Acquisition Policy Division.

Therefore, 48 CFR Parts 42 and 52 are

amended as set forth below:

1. The authority citation for 48 CFR

Parts 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).

PART 42—CONTRACT

ADMINISTRATION

2. Section 42.708 is amended in the

introductory text of paragraph (a) by

removing ‘‘may’’ and inserting ‘‘shall’’;

and by revising paragraph (a)(2) (i) and

(ii) to read as follows:

42.708 Quick-closeout procedure.

(a) * * *

(2) * * *

(i) The total unsettled indirect cost to

be allocated to any one contract does

not exceed $1,000,000; and

(ii) Unless otherwise provided in

agency procedures, the cumulative

unsettled indirect costs to be allocated

to one or more contracts in a single

fiscal year do not exceed 15 percent of

the estimated, total unsettled indirect

costs allocable to cost-type contracts for

that fiscal year. The contracting officer

may waive the 15 percent restriction

based upon a risk assessment that

considers the contractor’s accounting,

estimating, and purchasing systems;

other concerns of the cognizant contract

auditors; and any other pertinent

information; and

* * * * *

PART 52—SOLICITATION PROVISIONS

AND CONTRACT CLAUSES

3. Section 52.216–7 is amended by

revising the date of the clause and

paragraph (f) to read as follows:

52.216–7 Allowable Cost and Payment.

* * * * *

ALLOWABLE COST AND PAYMENT (AUG

1996)

* * * * *

(f) Quick-closeout procedures. Quickcloseout procedures are applicable when the

conditions in FAR 42.708(a) are satisfied.

* * * * *

4. Section 52.216–13 is amended by

revising the introductory paragraph, the

date in the clause heading, and

paragraph (e) to read as follows:

52.216–13 Allowable Cost and Payment—

Facilities.

As prescribed in 16.307(g), insert the

following clause:

ALLOWABLE COST AND PAYMENT—

FACILITIES (AUG 1996)

* * * * *

(e) Quick-closeout procedures. Quickcloseout procedures are applicable when the

conditions in FAR 42.708(a) are satisfied.

* * * * *

[FR Doc. 96–14541 Filed 6–19–96; 8:45 am]

BILLING CODE 6820–EP–P

48 CFR Part 46

[FAC 90–39; FAR Case 92–031; Item XXVII]

RIN 9000–AG06

Federal Acquisition Regulation;

Quality Assurance Actions—Electronic

Screening

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

include definitions of the terms ‘‘latent

defect’’ and ‘‘patent defect.’’ This

regulatory action was not subject to

Office of Management and Budget

review under Executive Order 12866,

dated September 30, 1993, and is not a

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

EFFECTIVE DATE: August 19, 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 90–39, FAR case 92–

031.

SUPPLEMENTARY INFORMATION:

A. Background

On June 8, 1992, the Department of

Defense Inspector General issued Audit

Report 92–099, Quality Assurance

Actions Resulting from Electronic

Component Screening, which included

a recommendation that the Defense FAR

Supplement be revised to include

definitions of the terms ‘‘latent defect’’

and ‘‘patent defect.’’ Since both terms

are used in the FAR, Part 46 of the FAR

is being revised to include uniform

definitions for use by all acquiring

agencies. A proposed rule was

published in the Federal Register at 59

FR 46386 on September 8, 1994. After

evaluation of public comments, the

Councils agreed to convert the proposed

rule to a final rule without change.