32312 Federal Register / Vol. 61, No. 121 / Friday, June 21, 1996 / Proposed Rules

DEPARTMENT OF DEFENSE

GENERAL SERVICES

ADMINISTRATION

NATIONAL AERONAUTICS AND

SPACE ADMINISTRATION

48 CFR Part 12

[FAR Case 96–310]

RIN 9000–AH01

Federal Acquisition Regulation;

Inapplicability of Cost Accounting

Standards to Contracts and

Subcontracts for Commercial Items

AGENCIES: Department of Defense (DOD),

General Services Administration (GSA),

and National Aeronautics and Space

Administration (NASA).

ACTION: Proposed rule.

SUMMARY: The Civilian Agency

Acquisition Council and the Defense

Acquisition Regulations Council are

proposing to amend the Federal

Acquisition Regulation (FAR) Part 12 to

implement Section 4205 of the fiscal

year (FY) 96 National Defense

Authorization Act. Section 4205 amends

Section 26(f) of the Office of Federal

Procurement Policy (OFPP) Act (41

U.S.C. 422(f)) by exempting contracts

and subcontracts for commercial items

from the application of Cost Accounting

Standards (CAS) promulgated under 41

U.S.C. 422. 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 20, 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 96–310 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 96–310.

SUPPLEMENTARY INFORMATION:

A. Background

This proposed rule amends FAR part

12 to implement Section 4205 of the

FY96 National Defense Authorization

Act (Pub. L. 104–106). Section 4205

amends Section 26(f) of the OFPP Act

(41 U.S.C. 422(f)), making the

application of CAS to commercial items

‘‘nonmandatory.’’ CAS requirements can

still be invoked as a matter of policy by

the CAS Board, pursuant to the

authority provided in 41 U.S.C. 422.

Any such guidance would be placed in

48 CFR Chapter 99. Therefore, the new

coverage at FAR 12.214 indicates that

CAS generally will not apply to

commercial items unless so indicated at

48 CFR 9903.201. A cross-reference to

FAR 12.214 is added at 12.503(c) and

12.504(c), to further clarify the effect of

Section 4205.

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 contracts and subcontracts with

small businesses are exempt from CAS.

An initial regulatory flexibility analysis

has therefore not been performed.

Comments are invited from small

businesses and other interested parties.

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

should cite 5 U.S.C. 601, et seq. (FAR

case 96–310), in correspondence.

C. Paperwork Reduction Act

The Paperwork Reduction Act does

not apply because the proposed 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 12

Government procurement.

Dated: June 6, 1996.

Edward C. Loeb,

Director, Federal Acquisition Policy Division.

Therefore, it is proposed that 48 CFR

Part 12 be amended as set forth below:

PART 12—ACQUISITION OF

COMMERCIAL ITEMS

1. The authority citation for 48 CFR

Part 12 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 12.214 is added to read as

follows:

12.214 Cost Accounting Standards (CAS).

CAS generally will not apply to

commercial items. If CAS does apply

pursuant to 48 CFR 9903.201 (appendix

B, FAR loose-leaf edition), the

contracting officer shall insert the

appropriate provisions and clauses as

prescribed in that section.

3. Section 12.503(c)(3) is revised to

read as follows:

12.503 Applicability of certain laws to

Executive agency contracts for the

acquisition of commercial items.

* * * * *

(c) * * *

(3) 41 U.S.C. 422, Cost Accounting

Standards (48 CFR chapter 99) (see

12.214).

* * * * *

4. Section 12.504(c)(3) is revised to

read as follows:

12.504 Applicability of certain laws to

subcontracts for the acquisition of

commercial items.

* * * * *

(c) * * *

(3) 41 U.S.C. 422, Cost Accounting

Standards (48 CFR chapter 99) (see

12.214).

[FR Doc. 96–14813 Filed 6–20–96; 8:45 am]

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