Federal Register / Vol. 73, No. 181 / Wednesday, September 17, 2008 / Rules and Regulations 54013 

DISCLOSURE AND CONSISTENCY OF 

COST ACCOUNTING PRACTICES (OCT 

2008) 

(a) * * * 

(4) * * * Such adjustment shall provide for 

recovery of the increased costs to the United 

States together with interest thereon 

computed at the annual rate established 

under section 6621(a)(2) of the Internal 

Revenue Code of 1986 (26 U.S.C. 6621(a)(2)), 

from the time the payment by the United 

States was made to the time the adjustment 

is effected. 

* * * * * 

52.230–4 [Amended] 

■ 6. Amend section 52.230–4 by 

revising the date of the clause date to 

read ‘‘(OCT 2008)’’; and removing 

‘‘6621’’ and adding ‘‘6621(a)(2)’’ in its 

place each time it appears. 

52.230–5 [Amended] 

■ 7. Amend section 52.230–5 by— 

■ a. Revising the date of the clause date 

to read ‘‘(OCT 2008)’’; 

■ b. Removing from paragraph (a)(5) 

‘‘6621’’ and adding ‘‘6621(a)(2)’’ in its 

place each time it appears; and 

■ c. Removing from paragraph (d)(2) 

‘‘$500,000’’ and adding ‘‘$650,000’’ in 

its place. 

[FR Doc. E8–21367 Filed 9–16–08; 8:45 am] 

BILLING CODE 6820–EP–S 

DEPARTMENT OF DEFENSE 

GENERAL SERVICES 

ADMINISTRATION 

NATIONAL AERONAUTICS AND 

SPACE ADMINISTRATION 

48 CFR Parts 30 and 52 

[FAC 2005–27; FAR Case 2006–004; Item 

XII; Docket 2008–0001; Sequence 14] 

RIN 9000–AK58 

Federal Acquisition Regulation; FAR 

Case 2006–004, CAS Administration 

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 

(Councils) have agreed to adopt a 

proposed rule, published in the Federal 

Register at 71 FR 58338, October 3, 

2006, as a final rule, with minor 

changes. The rule amends the Federal 

Acquisition Regulation (FAR) to 

implement revisions to the regulations 

related to the administration of the Cost 

Accounting Standards (CAS) as they 

pertain to contracts with foreign 

concerns, including United Kingdom 

(U.K.) concerns. 

DATES: Effective Date: October 17, 2008. 

FOR FURTHER INFORMATION CONTACT: For 

clarification of content, contact Mr. 

Edward Chambers, at (202) 501–3221. 

For information pertaining to status or 

publication schedules, contact the 

Regulatory Secretariat at (202) 501– 

4755. Please cite FAC 2005–27, FAR 

case 2006–004. 

SUPPLEMENTARY INFORMATION: 

A. Background 

The Councils published a proposed 

rule in the Federal Register at 71 FR 

58338, October 3, 2006, to maintain 

consistency between CAS and FAR in 

matters relating to disclosure 

requirements and the administration of 

CAS for contracts awarded to foreign 

concerns, including U.K. concerns. 

This proposed rule was issued in 

response to the Cost Accounting 

Standards Board’s interim rule (70 FR 

29457, May 23, 2005) (finalized without 

change at 72 FR 32546, June 13, 2007), 

revising the applicability of CAS to U.K. 

contracts and subcontracts. 

The Councils received no comments 

on the proposed rule and have adopted 

the proposed rule as a final rule with 

minor changes. The minor changes to 

30.201–4(c) clarify that clause 52.230–4 

need not be included in contracts with 

foreign concerns otherwise exempt from 

CAS coverage, and that foreign concerns 

do not include foreign governments, or 

their agents or instrumentalities. 

This is not a significant regulatory 

action and, therefore, was not subject to 

review under Section 6(b) of Executive 

Order 12866, Regulatory Planning and 

Review, dated September 30, 1993. This 

rule is not a major rule under 5 U.S.C. 

804. 

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 all 

small businesses are exempt from CAS. 

C. Paperwork Reduction Act 

The Paperwork Reduction Act does 

not apply because the changes to the 

FAR do not impose information 

collection requirements that 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 30 and 

52 

Government procurement. 

Dated: September 9, 2008. 

Al Matera, 

Director, Office of Acquisition Policy. 

■ Therefore, DoD, GSA, and NASA 

amend 48 CFR parts 30 and 52 as set 

forth below: 

■ 1. The authority citation for 48 CFR 

parts 30 and 52 continues to read as 

follows: 

Authority: 40 U.S.C. 121(c); 10 U.S.C. 

chapter 137; and 42 U.S.C. 2473(c). 

PART 30—COST ACCOUNTING 

STANDARDS ADMINISTRATION 

■ 2. Amend section 30.201–4 by 

revising paragraph (c) to read as follows: 

30.201–4 Contract clauses. 

* * * * * 

(c) Disclosure and Consistency of Cost 

Accounting Practices for Contracts 

Awarded to Foreign Concerns. The 

contracting officer shall insert the clause 

at FAR 52.230–4, Disclosure and 

Consistency of Cost Accounting 

Practices for Contracts Awarded to 

Foreign Concerns, in negotiated 

contracts with foreign concerns, unless 

the contract is otherwise exempt from 

CAS (see 48 CFR 9903.201–1). Such 

contracts are subject to CAS 401 and 

402 under 48 CFR 9903.201–1(b)(4)(FAR 

Appendix). Foreign concerns do not 

include foreign governments or their 

agents or instrumentalities. 

* * * * * 

PART 52—SOLICITATION PROVISIONS 

AND CONTRACT CLAUSES 

■ 3. Amend section 52.230–4 by 

revising the section heading, the clause 

heading and date, and the first, second, 

and fourth sentences of the clause to 

read as follows. 

52.230–4 Disclosure and Consistency of 

Cost Accounting Practices for Contracts 

Awarded to Foreign Concerns. 

* * * * * 

DISCLOSURE AND CONSISTENCY OF 

COST ACCOUNTING PRACTICES FOR 

CONTRACTS AWARDED TO FOREIGN 

CONCERNS (OCT 2008). 

The Contactor agrees that it will 

consistently follow the cost accounting 

practices disclosed on FORM CASB DS–1, or 

other disclosure form as permitted by 48 CFR 

9903.202–1(e), in estimating, accumulating, 

and reporting costs under this contract, and 

comply with the requirements of CAS 401, 

Consistency in Estimating, Accumulating, 

and Reporting Costs, and CAS 402, 

Consistency in Allocating Costs Incurred for 

the Same Purpose. In the event the 

Contractor fails to follow such practices, or 


pwalker on PROD1PC71 with RULES3
54014 Federal Register / Vol. 73, No. 181 / Wednesday, September 17, 2008 / Rules and Regulations 

comply consistently with CAS 401 and 402, 

it agrees that the contract price shall be 

adjusted, together with interest, if such 

failure results in increased cost paid by the 

U.S. Government. * * * The Contractor agrees 

that the Disclosure Statement or other form 

permitted, pursuant to 48 CFR 9903.202–1(e) 

shall be available for inspection and use by 

authorized representatives of the United 

States Government. 

(End of clause) 

[FR Doc. E8–21365 Filed 9–16–08; 8:45 am] 

BILLING CODE 6820–EP–S 

DEPARTMENT OF DEFENSE 

GENERAL SERVICES 

ADMINISTRATION 

NATIONAL AERONAUTICS AND 

SPACE ADMINISTRATION 

48 CFR Parts 37 and 52 

[FAC 2005–27; FAR Case 2006–027; Item 

XIII;Docket 2007–0001; Sequence 5] 

RIN 9000–AK54 

Federal Acquisition Regulation; FAR 

Case 2006–027, Accepting and 

Dispensing of $1 Coin 

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 

(Councils) have agreed to adopt as final, 

with change, the interim rule amending 

the Federal Acquisition Regulation 

(FAR) to implement Section 104 of the 

Presidential $1 Coin Act of 2005. 

Section 104 requires that entities that 

operate any business on any premises 

owned or controlled by the United 

States be capable of accepting and 

dispensing $1 coins on January 1, 2008. 

Subsequent to this, Pub. L. 110–147 

amended 31 U.S.C. 5112(p)(1)(A), to 

allow an exception from the $1 coin 

dispensing capability requirement for 

vending machines that do not receive 

currency denominations greater than $1. 

DATES: Effective Date: September 17, 

2008. 

Applicability Date: This rule applies 

to all service contracts that involve 

business operations conducted in U.S. 

coins and currency, including vending 

machines, on any premises owned by 

the United States or under the control 

of any agency or instrumentality of the 

United States. The clause shall be 

placed in all such solicitations and 

contracts on and after the effective date 

of this rule. Those applicable contracts 

in existence before January 1, 2008, that 

do not already have the clause shall be 

modified to include the clause; those 

contracts that have the August 2007 

edition of the clause shall be modified 

if the contractor requests, to include the 

newer version contained in this FAC, 

without requiring consideration from 

the contractor. 

FOR FURTHER INFORMATION CONTACT: Mr. 

Michael Jackson, Procurement Analyst, 

at (202) 208–4949 for clarification of 

content. For information pertaining to 

status or publication schedules, contact 

the FAR Secretariat at (202) 501–4755. 

Please cite FAC 2005–27, FAR case 

2006–027. 

SUPPLEMENTARY INFORMATION: 

A. Background 

This final rule amends the FAR to 

implement the Presidential $1 Coin Act 

of 2005 (Pub. L. 109–145). The 

Presidential $1 Coin Act of 2005 

requires the Secretary of the Treasury to 

mint and issue annually four new $1 

coins bearing the likenesses of 

Presidents of the United States in the 

order of their service and to continue to 

mint and issue ‘‘Sacagawea-design’’ 

coins for circulation. In order to 

promote circulation of the coins, 

Section 104 of the Public Law also 

requires that Federal agencies take 

action so that, by January 1, 2008, 

entities that operate any business, 

including vending machines, on any 

premises owned by the United States or 

under the control of any agency or 

instrumentality of the United States, are 

capable of accepting and dispensing $1 

coins and that the entities display 

notices of this capability on the business 

premises. Subsequent to the passage of 

the Presidential Coin Act, Pub. L. 110– 

147 amended 31 U.S.C. 5112(p)(1)(A), to 

allow an exception from the $1 coin 

dispensing capability requirement for 

vending machines that do not receive 

currency denominations greater than $1. 

This will require modification of 

existing covered contracts whose period 

of performance extends beyond the 

January 1, 2008 date in order to assure 

compliance with Section 104 of the Act, 

as well as compliance with Pub. L. 110– 

147. 

DoD, GSA, and NASA published an 

interim rule in the Federal Register at 

72 FR 46361, August 17, 2007. The 60– 

day comment period for the interim rule 

ended October 16, 2007. Three 

respondents provided comments. The 

comments are discussed below. 

Public Comments 

Comment 1: One respondent asked 

why does the FAR matrix show that 

52.237–11 is applicable to R&D 

contracts and to A&E contracts? 

R&D contracts and A&E contracts are 

usually paid by electronic funds 

transfer. There is usually no cash 

payment involved in such contracts. 

Therefore, why would contractors who 

provide R&D or A&E services have to be 

capable of accepting dollar coins? 

Response: The inclusion of R&D and 

A&E contracts in the FAR matrix as 

applicable to 52.237–11 was an 

inadvertent error. 

Comment 2: One respondent stated in 

order to implement these widespread 

and extensive changes to vending 

machines, our members simply need 

more time. Contrary to the statement 

contained in the Federal Register 

notice, this interim rule does have a 

significant economic impact. It is not 

accurate to state that ‘‘receiving and 

dispensing the new coins as part of 

business operations should not add to 

workload or expense’’ (72 FR 46361, 

August 17, 2007). Accordingly, we 

strongly encourage the Councils to 

account for both the workload and 

expense by extending the compliance 

date to July 1, 2008. 

Response: Section 104 of the 

Presidential $1 Coin Act of 2005 (31 

U.S.C. 5112(p)(1)), established the 

effective date for this provision to be 

January 1, 2008. The effect of this clause 

is merely to implement the provision of 

law. Notwithstanding, the provision of 

law cannot be modified under these 

circumstances without further 

consideration by Congress, who passed 

the provision of law. Pub. L. 110–147 

amended section 5112(p)(1)(A) of title 

31, U.S.C., to allow an exception from 

the $1 coin dispensing capability 

requirement for vending machines that 

do not receive currency denominations 

greater than $1. Thus, the exception of 

the law provides relief for those vending 

machines. 

Comment 3: One respondent 

requested an amendment to the interim 

rule published in the Federal Register, 

August 17, 2007, amending 48 CFR 52 

(Solicitation Provisions and Contract 

Clauses), Section 52.237–11 (Accepting 

and Dispensing of $1 Coin) to exempt 

vending machines on Federal property 

that do not accept currency 

denominations above $1 from the 

requirement to dispense dollar coins. 

Response: The very intent of the 

statute is to require those businesses 

and instrumentalities operating on 

Federal property to be able to accept 

and dispense the $1 coin if that business 

or instrumentality is conducting a 

business whereby coins or currency is 

exchanged. However, Pub. L. 110–147 

amended section 5112(p)(1)(A) of title 


pwalker on PROD1PC71 with RULES3