Federal Acquisition Regulation; Repeal of Requirement for Secretarial/Agency Head Determinations Regarding Use of Cost Type or Incentive Contracts AGENCIES: Department of Defense (DOD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA).

DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 7, 11, 16, and 19

[FAC 90-24; FAR Case 94-700; Item I]

RIN 9000-AG25

Federal Acquisition Regulation; Repeal of Requirement for

Secretarial/Agency Head Determinations Regarding Use of Cost Type or

Incentive Contracts

AGENCIES: Department of Defense (DOD), General Services Administration

(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Interim rule with request for comment.

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SUMMARY: This interim rule is issued pursuant to the Federal

Acquisition Streamlining Act of 1994 to delete the requirement for a

``determination and findings'' before using a cost type or incentive

contract and to delete references to 10 U.S.C. 2301. This regulatory

action was not subject to Office of Management and Budget review under

Executive Order 12866, dated September 30, 1993.

DATES: Effective Date: December 15, 1994.

Comment Date: Comments should be submitted to the FAR Secretariat

at the address shown below on or before February 13, 1995 to be

considered in the formulation of a final rule.

ADDRESSES: Interested parties should submit written comments to:

General Services Administration, FAR Secretariat (VRS), 18th & F

Streets, NW, Room 4037, Attn: Ms. Beverly Fayson, Washington, DC 20405.

Please cite FAC 90-24, FAR case 94-700 in all correspondence related to

this case.

FOR FURTHER INFORMATION CONTACT: Ms. Melissa Rider, Contract Award Team

Leader, at (703) 614-1634 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 90-24, FAR case

94-700.

SUPPLEMENTARY INFORMATION:

A. Background

The Federal Acquisition Streamlining Act of 1994 (the Act), Pub. L.

103-355, provides authorities that streamline the acquisition process

and minimize burdensome Government-unique requirements. Major changes

that can be expected in the acquisition process as a result of the

Act's implementation include changes in the areas of Commercial Item

Acquisition, Simplified Acquisition Procedures, the Truth in

Negotiations Act, and introduction of the Federal Acquisition Computer

Network.

This notice announces proposed FAR revisions developed under FAR

case 94-700, Repeal of Requirement for Secretarial/Agency Head

Determinations Regarding Use of Cost Type or Incentive Contracts.

Sections 1021 and 1071 repealed the requirement for a determination

regarding use of a cost type or incentive contract. Therefore, the FAR

at 16.301-3, 16.403, 16.403-1, and 16.403-2 has been amended to delete

the requirement. Section 1501 repealed Section 2301 of Title 10, United

States Code. The references to 10 U.S.C. 2301 at FAR 7.102, 11.002 and

19.000 have been deleted.

The FAR Council is interested in an exchange of ideas and opinions

with respect to the regulatory implementation of the Act. For that

reason, the FAR Council is conducting a series of public meetings.

However, the FAR Council has not scheduled a public meeting on this

rule (FAR case 94-700) because of the clarity and non-controversial

nature of the rule. If the public believes such a meeting is needed

with respect to this rule, a letter requesting a public meeting and

outlining the nature of the requested meeting shall be submitted to and

received by the FAR Secretariat (see ADDRESSES caption, above) on or

before January 17, 1995. The FAR Council will consider such requests in

determining whether a public meeting on this rule should be scheduled.

B. Regulatory Flexibility Act

This interim rule is not expected to have 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 it

affects internal operating procedures of the Federal Government. An

Initial Regulatory Flexibility Analysis has, therefore, not been

performed. Comments from small entities concerning the affected FAR

Subparts will also be considered in accordance with 5 U.S.C. 610. Such

comments must be submitted separately and cite 5 U.S.C. 601, et seq.

(FAC 90-24, FAR case 94-700) in correspondence.

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 collection of information from offerors, contractors,

or members of the public which require the approval of OMB under 44

U.S.C. 3501, et seq.

D. Determination To Issue an Interim Rule

A determination has been made under the authority of the Secretary

of Defense (DOD), the Administrator of General Services (GSA), and the

Administrator of the National Aeronautics and Space Administration

(NASA) that, pursuant to 41 U.S.C. 418b, urgent and compelling reasons

exist to promulgate this interim rule without prior opportunity for

public comment. The Federal Acquisition Streamling Act provided that

sections 1021, 1071, and 1501 are effective upon enactment. However,

public comments received in response to this interim rule will be

considered in formulating the final rule. This rule is necessary to

implement Sections 1021 and 1071 of the Federal Acquisition

Streamlining Act of 1994 (Pub. L. 103-355) which repealed the

requirement for a determination regarding use of a cost type or

incentive contract.

List of Subjects in 48 CFR Parts 7, 11, 16, and 19

Government procurement.

Dated: December 8, 1994.

Edward Loeb,

Deputy Project Manager for the Implementation of the Federal

Acquisition Streamlining Act of 1994.

Therefore, 48 CFR Parts 7, 11, 16, and 19 are amended as set forth

below:

1. The authority citation for 48 CFR Parts 7, 11, 16, and 19

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 7--ACQUISITION PLANNING

7.102 [Amended]

2. Section 7.102 is amended by removing from the second

parenthetical ``10 U.S.C. 2301(a)(5) and''.

* * * * *

PART 11--ACQUISITION AND DISTRIBUTION OF COMMERCIAL PRODUCTS

11.002 Policy.

3. Section 11.002 is amended by removing the last sentence.

PART 16--TYPES OF CONTRACTS

16.301-3 [Amended]

4. Section 16.301-3 is amended by removing from the end of

paragraph (b) ``and'' and inserting it at the end of paragraph (a); by

removing the semicolon from the end of paragraph (b) and inserting a

period in its place; and by removing paragraph (c) and redesignating

paragraph (d) as (c).

16.403 [Amended]

5. Section 16.403 is amended by removing paragraph (c) and

redesignating paragraph (d) as (c).

16.403-1 and 16.403-2 [Amended]

6. Sections 16.403-1 and 16.403-2 are both amended at the end of

paragraph (c)(1) by adding the word ``and'' after the semicolon; at the

end of paragraph (c)(2) by removing ``; and'' and inserting a period;

and by removing paragraph (c)(3).

PART 19--SMALL BUSINESS AND SMALL DISADVANTAGED BUSINESS CONCERNS

19.000 [Amended]

7. Section 19.000 is amended in the introductory text of paragraph

(a) by removing the parenthetical ``(10 U.S.C. 2301, et seq.)'' and

inserting ``(10 U.S.C. 2302, et seq.)''.

[FR Doc. 94-30604 Filed 12-13-94; 10:44 am]

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