31796 Federal Register / Vol. 61, No. 120 / Thursday, June 20, 1996 / Proposed Rules

DEPARTMENT OF DEFENSE

GENERAL SERVICES

ADMINISTRATION

NATIONAL AERONAUTICS AND

SPACE ADMINISTRATION

48 CFR Part 31

[FAR Case 95–024]

RIN 9000–AH03

Federal Acquisition Regulation;

Independent Research and

Development/Bid and Proposal in

Cooperative Arrangements

AGENCIES: Department of Defense (DOD),

General Services Administration (GSA),

and National Aeronautics and Space

Administration (NASA).

ACTION: Proposed rule.

SUMMARY: The Department of Defense,

General Services Administration, and

National Aeronautics and Space

Administration are proposing to amend

Federal Acquisition Regulation (FAR)

Part 31 to permit contractor

contributions of independent research

and development (IR&D) costs under

NASA cooperative arrangements to be

treated as allowable indirect costs. This

regulatory action was not subject to

Office of Management and Budget

review under Executive Order 12866,

dated September 30, 1993. This is not a

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

DATES: Comments should be submitted

on or before August 19, 1996 to be

considered in the formulation of a final

rule.

ADDRESSES: Interested parties should

submit written comments to: General

Services Administration, FAR

Secretariat (MVRS), 18th & F Streets,

NW, Room 4037, Washington, DC

20405.

Please cite FAR case 95–024 in all

correspondence related to this case.

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 FAR case 95–024.

SUPPLEMENTARY INFORMATION:

A. Background

NASA published a class deviation

(interim rule) in the May 2, 1994,

Federal Register (59 FR 22521) with the

final rule published in the September 8,

1994, Federal Register (59 FR 46359).

The class deviation eliminates the

prohibition at FAR 31.205–18(e) against

treatment of contractor IR&D

contributions under NASA cooperative

arrangements as allowable indirect

costs. This proposed FAR rule would

eliminate the need for the NASA class

deviation.

B. Regulatory Flexibility Act

This proposed rule is not expected to

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 entities are awarded on a

competitive fixed-price basis, and the

cost principles do not apply. The cost

principles only apply to contracts for

which cost or pricing data has been

submitted. An Initial Regulatory

Flexibility Analysis has, therefore, not

been performed. Comments from small

entities concerning the affected FAR

subpart will be considered in

accordance with 5 U.S.C. 610 of the Act.

Such comments must be submitted

separately and should cite FAR case 95–

024 in correspondence.

C. Paperwork Reduction Act

The Paperwork Reduction Act (Pub.

L. 96–511) does not apply because the

proposed rule does 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 31

Government procurement.

Dated: June 6, 1996.

Edward C. Loeb,

Director, Federal Acquisition Policy Division.

Therefore, it is proposed that 48 CFR

Part 31 be amended as set forth below:

PART 31—CONTRACT COST

PRINCIPLES AND PROCEDURES

1. The authority citation for 48 CFR

Part 31 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 31.205–18(e) is revised to

read as follows:

31.205–18 Independent research and

development and bid and proposal costs.

* * * * *

(e) Cooperative arrangements. IR&D

costs may be incurred by contractors

working jointly with one or more nonFederal entities pursuant to a

cooperative arrangement (for example,

joint ventures, limited partnerships,

teaming arrangements, and

collaboration and consortium

arrangements). IR&D costs may also

include costs contributed by contractors

in performing cooperative research and

development agreements, or similar

arrangements, entered into under

(1) Section 12 of the StevensonWydler Technology Transfer Act of

1980 (15 U.S.C. 3710(a));

(2) Sections 203(c) (5) and (6) of the

National Aeronautics and Space Act of

1958, as amended (42 U.S.C. 2473(c) (5)

and (6));

(3) 10 U.S.C. 2371 for the Defense

Advanced Research Projects Agency, or

(4) Other equivalent authority. IR&D

costs incurred by a contractor pursuant

to these types of cooperative

arrangements should be considered as

allowable IR&D costs if the work

performed would have been allowed as

contractor IR&D had there been no

cooperative arrangement.

[FR Doc. 96–14841 Filed 6–19–96; 8:45 am]

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