Federal Acquisition Regulation; Clause Flowdown

Part II

Department of Defense

General Services Administration

National Aeronautics and Space Administration

_______________________________________________________________________

48 CFR Parts 46 and 52

Federal Acquisition Regulation: Clause Flowdown; Proposed Rule

Proposed Rules

DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 46 and 52

[FAR Case 92-035]

RIN 9000-AG76

Federal Acquisition Regulation; Clause Flowdown

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 (Councils) are proposing to amend the

Federal Acquisition Regulation (FAR) to reduce the number of contract

clauses requiring flowdown to subcontractors. 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 February 26, 1996 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 92-035 in all correspondence related to this

case.

FOR FURTHER INFORMATION CONTACT: Mr. Harry Rosinski at (202) 501-0692

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 92-035.

SUPPLEMENTARY INFORMATION:

A. Background

., room 4037 Washington, DC 20405.

Please cite FAR case 92-035 in all correspondence related to this

case.

FOR FURTHER INFORMATION CONTACT: Mr. Harry Rosinski at (202) 501-0692

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 92-035.

SUPPLEMENTARY INFORMATION:

A. Background

The Councils conducted an extensive review of all FAR clauses

requiring flowdown to subcontractors in an effort to eliminate any

unnecessary flowdown requirements. As a result, the Councils are

proposing to eliminate requirements for flowdown of the clauses at FAR

52.215-26, 52.216-5, 52.216-6, 52.216-16, 52.216-17, 52.222-1, 52.236-

21, 52.244-2(i), 52.246-23, 52.246-24, and 52.246-25.

B. Regulatory Flexibility Act

The proposed changes may 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 it will

reduce administrative burden for Government contractors and their

subcontractors. An Initial Regulatory Flexibility Analysis (IRFA) has

been prepared and will be provided to the Chief Counsel for Advocacy

for the Small Business Administration. A copy of the IRFA may be

obtained from the FAR Secretariat. Comments are invited. Comments from

small entities concerning the affected FAR subpart will be considered

in accordance with 5 U.S.C. 610. Such comments must be submitted

separately and should cite 5 U.S.C. 601, et seq. (FAR case 92-035), 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 Parts 46 and 52

Government procurement.

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 Parts 46 and 52

Government procurement.

Dated: December 18, 1995.

Edward C. Loeb,

Acting Director, Office of Federal Acquisition Policy.

Therefore, it is proposed that 48 CFR parts 46 and 52 be amended as

set forth below:

1. The authority citation for 48 CFR parts 46 and 52 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 46--QUALITY ASSURANCE

46.806 [Removed]

2. Section 46.806 is removed.

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

52.215-26 [Amended]

3. Section 52.215-26 is amended by revising the date of the clause

to read ``(DATE)'' and by removing paragraph (d).

4. 52.216-5 is amended by revising the introductory paragraph, the

date of the clause, and paragraph (i) to read as follows:

52.216-5 Price Redetermination--Prospective.

As prescribed in 16.205-4, insert the following clause:

PRICE REDETERMINATION--PROSPECTIVE (DATE)

* * * * *

(i) Subcontracts. No subcontract placed under this contract may

provide for payment on a cost-plus-a-percentage-of-cost basis.

* * * * *

(End of clause)

5. Section 52.216-6 is amended by revising the introductory text,

the date of the clause, and paragraph (h) to read as follows:

52.216-6 Price Redetermination--Retroactive.

As prescribed in 16.206-4, insert the following clause:

PRICE REDETERMINATION--RETROACTIVE (DATE)

* * * * *

der this contract may

provide for payment on a cost-plus-a-percentage-of-cost basis.

* * * * *

(End of clause)

5. Section 52.216-6 is amended by revising the introductory text,

the date of the clause, and paragraph (h) to read as follows:

52.216-6 Price Redetermination--Retroactive.

As prescribed in 16.206-4, insert the following clause:

PRICE REDETERMINATION--RETROACTIVE (DATE)

* * * * *

(h) Subcontracts. No subcontract placed under this contract may

provide for payment on a cost-plus-a-percentage-of-cost basis.

* * * * *

(End of clause)

6. Section 52.216-16 is amended by revising the introductory

paragraph, the date of the clause, and paragraph (h) to read as

follows:

52.216-16 Incentive Price Revision--Firm Target.

As prescribed in 16.405(a), insert the following clause:

INCENTIVE PRICE REVISION--FIRM TARGET (DATE)

* * * * *

(h) Subcontracts. No subcontract placed under this contract may

provide for payment on a cost-plus-a-percentage-of-cost basis.

* * * * *

(End of clause)

* * * * *

7. Section 52.216-17 is amended by revising the introductory

paragraph, the date of the clause, and paragraph (j) to read as

follows:

52.216-17 Incentive Price Revision--Successive Targets.

As prescribed in 16.405(b), insert the following clause:

INCENTIVE PRICE REVISION--SUCCESSIVE TARGETS (DATE)

* * * * *

(j) Subcontracts. No subcontract placed under this contract may

provide for payment on a cost-plus-a-percentage-of-cost basis.

* * * * *

(End of clause)

* * * * *

8. Section 52.222-1 is amended by revising the introductory

paragraph and the date of the clause; by removing the paragraph

designation ``(a)'' in paragraph (a); and by removing paragraph (b).

The revised text reads as follows:

52.222-1 Notice to the Government of Labor Disputes.

As prescribed in 22.103-5(a), insert the following clause:

NOTICE TO THE GOVERNMENT OF LABOR DISPUTES (DATE)

* * * * *

(End of clause)

52.236-21 [Amended]

e introductory

paragraph and the date of the clause; by removing the paragraph

designation ``(a)'' in paragraph (a); and by removing paragraph (b).

The revised text reads as follows:

52.222-1 Notice to the Government of Labor Disputes.

As prescribed in 22.103-5(a), insert the following clause:

NOTICE TO THE GOVERNMENT OF LABOR DISPUTES (DATE)

* * * * *

(End of clause)

52.236-21 [Amended]

9. Section 52.236-21 is amended by revising the date of the clause

to read ``(DATE)'' and by removing paragraph (h).

52.244-2 [Amended]

10. Section 52.244-2 is amended by removing and reserving paragraph

(i).

52.246-23 [Amended]

11. Section 52.246-23 is amended by revising the date of the clause

to read ``(DATE)'' and by removing paragraph (d).

52.246-24 [Amended]

12. Section 52.246-24 is amended by revising the date of the clause

to read ``(DATE)'' and by removing paragraphs (f) and (g).

52.246-25 [Amended]

13. Section 52.246-25 is amended by revising the date of the clause

to read ``(DATE)'' and by removing paragraph (d).

[FR Doc. 95-31204 Filed 12-26-95; 8:45 am]

BILLING CODE 6820-EP-P