Federal Acquisition Regulation; Definition of Bid and Proposal Costs

Part III

Department of Defense

General Services Administration

National Aeronautics and Space Administration

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48 CFR Part 31

Federal Acquisition Regulation; Bid and Proposal Costs Definition;

Business Meals: Proposed Rules

Proposed Rules

DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Part 31

[FAR Case 93-18]

RIN 9000-AG58

Federal Acquisition Regulation; Definition of Bid and Proposal

Costs

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

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

ACTION: Proposed rule.

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SUMMARY: The Civilian Agency Acquisition Council and the Defense

Acquisition Regulations Council are proposing changes to the Federal

Acquisition Regulation (FAR) by revising the definition of bid and

proposal (B&P) costs to clarify that B&P costs related to all types of

funding instruments (e.g., contracts, grants, cooperative agreements,

and other similar types of agreements) are allowable costs. This

regulatory action was not subject to Office of Management and Budget

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

DATES: Comments should be submitted on or before October 20, 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, Washington, DC 20405.

Please cite FAR case 93-18 in all correspondence related to this

case.

FOR FURTHER INFORMATION CONTACT:

Jeremy F. 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 FAR case 93-

18.

SUPPLEMENTARY INFORMATION:

A. Background

The proposed FAR rule would revise the definition of bid and

proposal (B&P) costs at FAR 31.205-18(a) to clarify that B&P costs

related to all types of funding instruments (e.g., contracts, grants,

cooperative agreements, and other similar types of agreements) are

allowable costs. The definition currently does not address proposal

costs associated with grants or cooperative agreements. This change was

requested by the Director of Defense Procurement to address an issue

which arose under a competition being conducted by the Advanced

Research Projects Agency (ARPA) and to make the cost principle

compatible with the definition of B&P costs in Cost Accounting Standard

420 (4 CFR 9904.420-30).

B. Regulatory Flexibility Act

This proposed rule is not expected to 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 most

contracts awarded to small entities are awarded on a competitive,

fixed-price basis and the cost principles do not apply. The cost

principles apply only to contracts for which cost or pricing data has

been submitted. An Initial Regulatory Flexibility Analysis has,

therefore, not been performed. Comments from small entities concerning

the affected FAR subpart will be considered in accordance with 5 U.S.C.

610 of the Act. Such comments must be submitted separately and should

cite 5 U.S.C. 601, et seq. (FAR case 93-18), in correspondence.

C. Paperwork Reduction Act

The Paperwork Reduction Act does not apply because the proposed

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 31

Government procurement.

Dated: August 15, 1995.

C. Allen Olson,

Director, Office of Federal Acquisition Policy.

Therefore, it is proposed that 48 CFR Part 31 be amended as set

forth below:

PART 31--CONTRACT COST PRINCIPLES AND PROCEDURES

1. The authority citation for 48 CFR Part 31 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 31.205-18 is amended in paragraph (a) by revising the

definition of Bid and proposal (B&P) costs to read as follows:

31.205-18 Independent research and development and bid and proposal

costs.

* * * * *

Bid and proposal (B&P) costs, as used in this subsection, means the

costs incurred in preparing, submitting, and supporting bids and

proposals (whether or not solicited) on potential Government or non-

Government contracts, grants, cooperative agreements, or other

transactions (coordinated research, consortia, and other similar types

of agreements). The term does not include the costs of effort sponsored

by a grant, cooperative agreement, or other transaction, or required in

the performance of a contract.

* * * * *

[FR Doc. 95-20612 Filed 8-18-95; 8:45 am]

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