Federal Acquisition Regulation; Subcontract Proposal Audits

DEPARTMENT OF DEFENSE

DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Part 15

[FAC 90-37; FAR Case 92-002; Item VII]

RIN 9000-AF74

Federal Acquisition Regulation; Subcontract Proposal Audits

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

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

ACTION: Final rule.

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SUMMARY: The Civilian Agency Acquisition Council and the Defense

[[Page 2635]]

Acquisition Regulations Council have agreed on a final rule to amend

the Federal Acquisition Regulation (FAR) to add two additional examples

of when field pricing support audits of subcontract proposals may be

appropriate. This regulatory action was not subject to Office of

Management and Budget review under Executive Order 12866, dated

September 30, 1993.

EFFECTIVE DATE: March 26, 1996.

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 FAC 90-37,

FAR case 92-002.

SUPPLEMENTARY INFORMATION:

A. Background

An amendment to the FAR was published in the Federal Register at 59

FR 14457, March 28, 1994, as a proposed rule with a request for

comments. Three responses were received. Each supported the proposed

rule.

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 under 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 certified cost or

pricing data and field pricing support are not required.

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 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 15

Government procurement.

Dated: January 11, 1996.

Edward C. Loeb,

Acting Director, Office of Federal Acquisition Policy.

Therefore, 48 CFR Part 15 is amended as set forth below:

PART 15--CONTRACTING BY NEGOTIATION

1. The authority citation for 48 CFR Part 15 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 15.806-3 is amended in paragraph (a)(3) by removing

``or''; in paragraph (a)(4) by removing the period and inserting a

semicolon; and by adding paragraphs (a) (5) and (6) to read as follows:

15.806-3 Field pricing reports.

(a) * * *

(5) The contractor or higher tier subcontractor has been cited for

having significant estimating system deficiencies in the area of

subcontract pricing, especially the failure to perform adequate cost

analyses of proposed subcontract costs or to perform subcontract

analyses prior to negotiation of the prime contract with the

Government; or

(6) A lower tier subcontractor has been cited as having significant

estimating system deficiencies.

* * * * *

[FR Doc. 96-1021 Filed 1-25-96; 8:45 am]

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