Source: https://www.federalregister.gov/documents/2016/07/14/2016-16246/federal-acquisition-regulation-omb-circular-citation-update
Timestamp: 2017-06-25 04:04:38
Document Index: 451742064

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:: Federal Acquisition Regulation; OMB Circular Citation Update
81 FR 45852
45852-45854
9000-AN17
List of Subjects in 48 CFR Parts 2, 15, 16, 31, 42, and 52
https://www.federalregister.gov/d/2016-16246
Ms. Kathlyn J. Hopkins, Procurement Analyst, at 202-969-7226, for clarification of content. For information pertaining to status or publication schedules, contact the Regulatory Secretariat Division at 202-501-4755. Please cite FAC 2005-89, FAR Case 2014-023.
On December 26, 2013, the Office of Management and Budget (OMB) published new guidance at 2 CFR part 200 entitled Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (OMB Uniform Guidance); this became effective on December 26, 2014, after Federal agencies adopted the guidance as a set of binding regulations. This new OMB Uniform Guidance supersedes and streamlines requirements from OMB Circulars A-21, A-87, A-89, A-102, A-110, A-122, and A-133, and the guidance in Circular A-50 on Audit Followup. As such, this final rule replaces OMB citations in the FAR to the circulars cited above that have been replaced by this new OMB Uniform Guidance, and cross references to new terminology in the OMB Uniform Guidance.
The cost principles under OMB's Uniform Guidance apply to contracts with non-profits, educational institutions, state and local governments, and Indian tribal governments. All other FAR contractual requirements (e.g., contract administration, audit) take precedence over the OMB Uniform Guidance when there is a conflict.
This rule also creates a definition with an abbreviated title in FAR section 2.101 for FAR citations to this OMB Uniform Guidance.
“Publication of proposed regulations,” 41 U.S.C. 1707, is the statute that applies to the publication of the FAR. Paragraph (a)(1) of the statute requires that a procurement policy, regulation, procedure, or form (including an amendment or modification thereof) must be published for public comment if it relates to the expenditure of appropriated funds, and has either a significant effect beyond the internal operating procedures of the agency issuing the policy, regulation, procedure, or form, or has a significant cost or administrative impact on contractors or offerors. This final rule is not required to be published for public comment, because it merely replaces outdated OMB Circular references in the FAR with current references that do not have a significant effect on contractors or offerors.
Therefore, DoD, GSA, and NASA amend 48 CFR parts 2, 15, 16, 31, 42, and 52 as set forth below:
Start Amendment Part1. The authority citation for 48 CFR parts 2, 15, 16, 31, 42, and 52 continues to read as follows:End Amendment Part
Start Amendment Part2. Amend section 2.101 in paragraph (b)(2) by adding in alphabetical order the definition “OMB Uniform Guidance at 2 CFR part 200” to read as follows:End Amendment Part
Start Amendment Part3. Amend section 15.209 by removing from paragraph (b)(1) introductory text, “OMB Circular No. A-133” and adding “Audit Requirements in the OMB Uniform Guidance at 2 CFR part 200, subpart F” in its place.End Amendment Part
Start Amendment Part4. Amend section 16.307 by removing from paragraph (a)(5) “OMB Circular No. A-122” and adding “the OMB Uniform Guidance at 2 CFR part 200, appendix VIII” in its place.End Amendment Part
Start Amendment Part5. Amend section 31.104 by revising the introductory text to read as follows: End Amendment Part
Contracts with educational institutions.
Start Amendment Part6. Amend section 31.105 by removing from paragraph (a) “OMB Circular A-122 (see 31-108)” and adding “OMB Uniform Guidance at 2 CFR part 200, appendix VIII (see 31.108)” in its place.End Amendment Part
Start Amendment Part7. Revise section 31.108 to read as follows: End Amendment Part
Contracts with nonprofit organizations.
Start Amendment Part8. Revise section 31.302 to read as follows: End Amendment Part
Start Amendment Part9. Amend section 31.303 by revising paragraph (a) to read as follows: End Amendment Part
Start Amendment Part10. Amend section 31.602 by removing “Office of Management and Budget (OMB) Circular No. A-87, Cost Principles for State and Local Governments, Revised,” and adding “The OMB Uniform Guidance at 2 CFR part 200, subpart E and appendices V and VII” in its place.End Amendment Part
Start Amendment Part11. Amend section 31.603 by removing from paragraph (a) “the revision of OMB Circular A-87 which is” and adding “the OMB Uniform Guidance at 2 CFR part 200, subpart E and appendices V and VII,” in its place.End Amendment Part
Start Amendment Part12. Revise section 31.702 to read as follows: End Amendment Part
Start Amendment Part13. Amend section 31.703 by removing from paragraph (a) “the revision of OMB circular A-122” and adding “the OMB Uniform Guidance at 2 CFR part 200, subpart E and appendix IV” in its place.End Amendment Part
Start Amendment Part14. Amend section 42.003 by revising paragraph (a) to read as follows: End Amendment Part
Start Amendment Part15. Amend section 42.101 by revising paragraph (b) to read as follows: End Amendment Part
Start Amendment Part16. Amend section 42.703-2 by revising paragraphs (b)(2)(ii) through (iv) to read as follows: End Amendment Part
42.703-2
Certificate of indirect costs.
Start Amendment Part17. Amend section 42.705-3 by revising paragraphs (a)(2) and (3); and adding paragraph (b)(8) to read as follows: End Amendment Part
(2) The OMB Uniform Guidance at 2 CFR part 200, appendix III assigns each educational institution (defined as an institution of higher education in the OMB Uniform Guidance at 2 CFR part Start Printed Page 45854200, subpart A, and 20 U.S.C. 1001) to a single Government agency for the negotiation of indirect cost rates and provides that those rates shall be accepted by all Federal agencies. Cognizant Government agencies and educational institutions are listed in the Directory of Federal Contract Audit Offices (see 42.103).
Start Amendment Part18. Revise section 42.705-4 to read as follows: End Amendment Part
42.705-4
42.705-5
Start Amendment Part19. Amend section 42.705-5 by removing “OMB Circular No. A-122” and adding “the OMB Uniform Guidance at 2 CFR part 200, subpart E and appendix IV; but see appendix VIII for nonprofit organizations exempt from subpart E)” in its place.End Amendment Part
Start Amendment Part20. Amend section 52.215-2 by revising the date of Alternate II and paragraph (h) to read as follows: End Amendment Part
Alternate II (Aug 2016). * * *
Start Amendment Part21. Amend section 52.230-5 by revising the date of the clause and paragraphs (a)(1) and (2) and (a)(4)(iv) to read as follows: End Amendment Part
(1) (CAS-covered Contracts only). If a business unit of an educational institution (defined as an institution of higher education in the OMB Uniform Guidance at 2 CFR part 200, subpart A and 20 U.S.C. 1001) is required to submit a Disclosure Statement, disclose in writing the Contractor's cost accounting practices as required by 48 CFR 9003.202-1 through 9903.202-5, including methods of distinguishing direct costs from indirect costs and the basis used for accumulating and allocating indirect costs. The practices disclosed for this contract shall be the same as the practices currently disclosed and applied on all other contracts and subcontracts being performed by the Contractor and which contain a Cost Accounting Standards (CAS) clause. If the Contractor has notified the Contracting Officer that the Disclosure Statement contains trade secrets, and commercial or financial information which is privileged and confidential, the Disclosure Statement shall be protected and shall not be released outside of the Government.
(2) Follow consistently the Contractor's cost accounting practices in accumulating and reporting contract performance cost data concerning this contract. If any change in cost accounting practices is made for the purposes of any contract or subcontract subject to CAS requirements, the change must be applied prospectively to this contract and the Disclosure Statement, if required, must be amended accordingly. If an accounting principle change mandated under OMB Uniform Guidance at 2 CFR part 200, subpart E and appendix III, requires that a change in the Contractor's cost accounting practices be made after the date of this contract award, the change must be applied prospectively to this contract and the Disclosure Statement, if required, must be amended accordingly. If the contract price or cost allowance of this contract is affected by such changes, adjustment shall be made in accordance with paragraph (a)(4) or (a)(5) of this clause, as appropriate.
(iv) Agree to an equitable adjustment as provided in the Changes clause of this contract, if the contract cost is materially affected by an accounting principle amendment required under the OMB Uniform Guidance at 2 CFR part 200, subpart E and appendix III, which, on becoming effective after the date of contract award, requires the Contractor to make a change to the Contractor's established cost accounting practices.
Start Amendment Part22. Amend section 52.249-5 by revising the date of the clause and paragraph (f) to read as follows: End Amendment Part
Termination for Convenience of the Government (Educational and Other Nonprofit Institutions).
[FR Doc. 2016-16246 Filed 7-13-16; 8:45 am]