Federal Acquisition Regulation; Mandatory Government Source Inspection

DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Part 46

[FAC 97-10; FAR Case 97-027; Item VII]

RIN 9000-AH94

Federal Acquisition Regulation; Mandatory Government Source

Inspection

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

Acquisition Regulations Council have agreed on a final rule amending

the Federal Acquisition Regulation (FAR) to facilitate the elimination

of unnecessary requirements for Government contract quality assurance

at source. This rule deletes the mandatory requirement for Government

contract quality assurance at source on all contracts that include a

higher-level contract quality requirement, and for supplies requiring

inspection that are destined for overseas shipment.

EFFECTIVE DATE: February 16, 1999.

FOR FURTHER INFORMATION CONTACT: The FAR Secretariat, Room 4035, GS

Building, Washington, DC, 20405, (202) 501-4755, for information

pertaining to status or publication schedules. For clarification of

content, contact Ms. Linda Klein, Procurement Analyst, at (202) 501-

3775. Please cite FAC 97-10, FAR case 97-027.

SUPPLEMENTARY INFORMATION:

A. Background

This final rule amends FAR 46.402 to eliminate unnecessary

requirements for Government contract quality assurance at source. The

rule eliminates mandatory Government source inspection under contracts

that contain higher-level quality requirements or that cover supplies

to be shipped overseas.

A proposed rule was published in the Federal Register at 63 FR

13770, March 20, 1998. Nine respondents submitted comments on the

proposed rule. All comments were considered in the development of the

final rule.

This regulatory action was not subject to Office of Management and

Budget review under Executive Order 12866, dated September 30, 1993,

and is not a major rule under 5 U.S.C. 804.

B. Regulatory Flexibility Act

A Final Regulatory Flexibility Analysis (FRFA) has been prepared

and submitted to the Chief Counsel for Advocacy of the Small Business

Administration. The analysis is summarized as follows:

No public comments were received in response to the Initial

Regulatory Flexibility Analysis.

We expect both large and small entities to experience a

reduction in the administrative burden by eliminating unnecessary

Government source inspection under contracts that contain higher-

level quality requirements or that cover supplies to be shipped

overseas. DoD and civilian agencies administer the contracts of

approximately 20,289 large businesses and 51,691 small entities.

Approximately 20 percent have contracts that contain the clause at

FAR 52.246-11, Higher level Contract Quality Requirement (Government

Specification).

There are no reporting, recordkeeping, or other compliance

requirements likely to result from the rule.

No significant negative economic impacts of the rule were

identified during our analysis or during the public comment period.

The rule is expected to reduce costs and administrative burdens for

both contractors and the Government.

We expect these revisions to contribute to an efficient and

effective acquisition process. We initially considered making all of

the requirements at FAR 46.402 discretionary but decided that this

would be premature since a Defense Contract Management Command

process action team reviewing source inspection and acceptance

policies has not completed its review and made its final

recommendations.

A copy of the FRFA may be obtained from the FAR Secretariat.

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 46

Government procurement.

Dated: December 14, 1998.

Ralph DeStefano,

Acting Director, Federal Acquisition Policy Division.

Therefore, 48 CFR Part 46 is amended as set forth below:

PART 46--QUALITY ASSURANCE

1. The authority citation for 48 CFR Part 46 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).

46.402 [Amended]

2. Section 46.402 is amended--

a. By removing paragraphs (e) and (g);

b. By redesignating paragraphs (f) and (h) as (e) and (f),

respectively; and

c. In the newly designated paragraph (e) by adding ``or'' at the

end of the paragraph.

[FR Doc. 98-33519 Filed 12-16-98; 8:45 am]

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