# 60 FR 67024: Federal Acquisition Regulation; Clause Flowdown

> Federal · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/FR_PRORULE_95-31204

## Section

- **Citation:** 60 FR 67024
- **Heading:** Federal Acquisition Regulation; Clause Flowdown
- **Jurisdiction:** Federal
- **Kind:** Regulations
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** Federal Register / Vol. 60 / 60 FR 67024

## Text

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.

-----------------------------------------------------------------------

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

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/FR_PRORULE_95-31204. Check the current official text before relying on it. Not legal advice.
