80_FR_19325 80 FR 19256 - EPAAR Clause for Level of Effort-Cost-Reimbursement Contract

80 FR 19256 - EPAAR Clause for Level of Effort-Cost-Reimbursement Contract

ENVIRONMENTAL PROTECTION AGENCY

Federal Register Volume 80, Issue 69 (April 10, 2015)

Page Range19256-19258
FR Document2015-08183

The Environmental Protection Agency (EPA) amends the EPA Acquisition Regulation (EPAAR) to update policy, procedures, and contract clauses. The proposed rule updates the EPAAR clause Level of Effort--Cost-Reimbursement Term Contract, modifies the clause title, and updates the corresponding EPAAR clause prescription.

Federal Register, Volume 80 Issue 69 (Friday, April 10, 2015)
[Federal Register Volume 80, Number 69 (Friday, April 10, 2015)]
[Proposed Rules]
[Pages 19256-19258]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-08183]


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ENVIRONMENTAL PROTECTION AGENCY

48 CFR Parts 1511 and 1552

[EPA-HQ-OARM-2012-0478; FRL-9925-99-OARM]


EPAAR Clause for Level of Effort--Cost-Reimbursement Contract

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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

SUMMARY: The Environmental Protection Agency (EPA) amends the EPA 
Acquisition Regulation (EPAAR) to update policy, procedures, and 
contract clauses. The proposed rule updates the EPAAR clause Level of 
Effort--Cost-Reimbursement Term Contract, modifies the clause title, 
and updates the corresponding EPAAR clause prescription.

DATES: Comments must be received on or before May 11, 2015.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-HQ-
OARM-2012-0478, by one of the following methods:
     www.regulations.gov: Follow the on-line instructions for 
submitting comments.
     Email: [email protected] epa.gov
     Mail: EPA-HQ-OARM-2012-0478, OEI Docket, Environmental 
Protection Agency, 2822T, 1200 Pennsylvania Ave. NW., Washington, DC 
20460. Please include a total of three (3) copies.
     Hand Delivery: EPA Docket Center-Attention OEI Docket, EPA 
West, Room B102, 1301 Constitution Ave. NW., Washington, DC 20004. Such 
deliveries are only accepted during the Docket's normal hours of 
operation, and special arrangements should be made for deliveries of 
boxed information.
    Instructions: Direct your comments to Docket ID No. EPA-HQ-OARM-
2012-0478. EPA's policy is that all comments received will be included 
in the public docket without change, and may be made available online 
at www.regulations.gov, including any personal information provided, 
unless the comment includes information claimed to be Confidential 
Business Information (CBI) or other information whose disclosure is 
restricted by statute. Do not submit information that you consider to 
be CBI or otherwise protected through www.regulations.gov or email. The 
www.regulations.gov Web site is an ''anonymous access'' system, which 
means EPA will not know your identity or contact information unless you 
provide it in the body of your comment. If you send an email comment 
directly to EPA without going through www.regulations.gov, your email 
address will be automatically captured and included as part of the 
comment that is placed in the public docket, and made available on the 
Internet. If you submit an electronic comment, EPA recommends that you 
include your name and other contact information in the body of your 
comment, and with any disk or CD-ROM you submit. If EPA cannot read 
your comment due to technical difficulties, and cannot contact you for 
clarification, EPA may not be able to consider your comment. Electronic 
files should avoid the use of special characters, any form of 
encryption, and be free of any defects or viruses. For additional 
information about EPA's public docket, visit the EPA Docket Center 
homepage at http:// www.epa.gov/ epahome/ dockets.htm.
    Docket: All documents in the docket are listed in the 
www.regulations.gov index. Although listed in the index, some 
information is not publicly available, e.g., CBI or other information 
whose disclosure is restricted by statute. Certain other material, such 
as copyrighted material, will be publicly available only in hard copy. 
Publicly available docket materials are available either electronically 
in www.regulations.gov, or in hard copy at the Office of Environmental 
Information (OEI) Docket, EPA/ DC, EPA West, Room 3334, 1301 
Constitution Ave. NW., Washington, DC. The Public Reading Room is open 
from 8:30 a.m. to 4:30 p.m., Monday through Friday, excluding legal 
holidays. The telephone number for the Public Reading Room is (202) 
566-1744, and the telephone number for the EPA Docket Center is (202) 
566-1752. This Docket Facility is open from 8:30 a.m. to 4:30 p.m. 
Monday through Friday, excluding legal holidays.

FOR FURTHER INFORMATION CONTACT: Thomas Valentino, Policy, Training, 
and Oversight Division, Office of Acquisition Management (3802R), 
Environmental Protection Agency, 1200 Pennsylvania Ave. NW., 
Washington, DC 20460; telephone number: 202-564-4522; email address: 
[email protected] epa.gov.

SUPPLEMENTARY INFORMATION: 

I. General Information

    1. Submitting CBI. Do not submit this information to EPA through 
www.regulations.gov or email. Clearly mark the part or all of the 
information that you claim to be CBI. For CBI information in a disk or 
CD ROM that you mail to EPA, mark the outside of the

[[Page 19257]]

disk or CD ROM as CBI, and then identify electronically within the disk 
or CD ROM the specific information that is claimed as CBI. In addition 
to one complete version of the comment that includes information 
claimed as CBI, a copy of the comment that does not contain the 
information claimed as CBI must be submitted for inclusion in the 
public docket. Information so marked will not be disclosed except in 
accordance with procedures set forth in 40 CFR part 2.
    2. Tips for Preparing Your Comments. When submitting comments, 
remember to:
     Identify the rulemaking by docket number and other 
identifying information (subject heading, Federal Register date and 
page number).
     Follow directions--The Agency may ask you to respond to 
specific questions or organize comments by referencing a Code of 
Federal Regulations (CFR) part or section number.
     Explain why you agree or disagree, suggest alternatives, 
and substitute language for your requested changes.
     Describe any assumptions and provide any technical 
information and/ or data that you used.
     If you estimate potential costs or burdens, explain how 
you arrived at your estimate in sufficient detail to allow for it to be 
reproduced.
     Provide specific examples to illustrate your concerns, and 
suggest alternatives.
     Explain your views as clearly as possible, avoiding the 
use of profanity or personal threats.
     Make sure to submit your comments by the comment period 
deadline identified.

II. Background

    The EPA reviewed EPAAR clause 1552.211-73, Level of Effort--Cost-
Reimbursement Term Contract, to make the clause more prescriptive in 
describing the EPA's responsibilities when the Agency orders less level 
of effort (LOE) than the maximum LOE specified in the subject clause; 
e.g., if the clause specifies 100,000 hours for a given period of 
performance but the contractor only provides 70,000 hours. The clause 
provides that a downward equitable adjustment will be made to reduce 
the fixed fee by the percentage by which the total expended LOE is less 
than 100% of that specified in the LOE clause; e.g., the fixed fee 
amount will be reduced by 30% using the same 100,000/ 70,000 hours 
example. The clause title is also modified so that the clause is now 
applicable to EPA LOE cost-reimbursement contracts. The EPAAR 1511.011-
73 clause prescription is also being updated accordingly.

III. Proposed Rule

    This proposed rule amends the EPAAR to revise the following:
    1. The EPAAR 1511.011-73 clause prescription is updated.
    2. The clause title is revised as follows: Level of Effort--Cost-
Reimbursement Contract.
    3. Paragraph (a) has been revised.
    4. An expositional statement has been added to paragraph (c).

IV. Statutory and Executive Order Reviews

A. Executive Order 12866: Regulatory Planning and Review

    This action is not a ``significant regulatory action'' under the 
terms of Executive Order (EO)12866 (58 FR 51735, October 4, 1993) and 
therefore, not subject to review under the EO.

B. Paperwork Reduction Act

    This action does not impose an information collection burden under 
the provisions of the Paperwork Reduction Act, 44 U.S.C. 3501 et seq. 
No information is collected under this action.

C. Regulatory Flexibility Act (RFA), as Amended by the Small Business 
Regulatory Enforcement Fairness Act of 1996 (SBREFA), 5 U.S.C. 601 et. 
seq.

    The Regulatory Flexibility Act generally requires an agency to 
prepare a regulatory flexibility analysis of any rule subject to notice 
and comment rulemaking requirements under the Administrative Procedure 
Act or any other statute; unless the agency certifies that the rule 
will not have a significant economic impact on a substantial number of 
small entities. Small entities include small businesses, small 
organizations, and small governmental jurisdictions.
    For purposes of assessing the impact of today's final rule on small 
entities, ``small entity'' is defined as: (1) A small business that 
meets the definition of a small business found in the Small Business 
Act and codified at 13 CFR 121.201; (2) a small governmental 
jurisdiction that is a government of a city, county, town, school 
district or special district with a population of less than 50,000; and 
(3) a small organization that is any not-for-profit enterprise which is 
independently owned and operated and is not dominant in its field.
    After considering the economic impacts of this rule on small 
entities, I certify that this action will not have a significant 
economic impact on a substantial number of small entities. This action 
revises a current EPAAR provision and does not impose requirements 
involving capital investment, implementing procedures, or record 
keeping. This rule will not have a significant economic impact on small 
entities.

D. Unfunded Mandates Reform Act

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), Public 
Law 104-4, establishes requirements for federal agencies to assess the 
effects of their regulatory actions on State, Local, and Tribal 
governments and the private sector.
    This rule contains no federal mandates (under the regulatory 
provisions of the Title II of the UMRA) for State, Local, and Tribal 
governments or the private sector. The rule imposes no enforceable duty 
on any State, Local or Tribal governments or the private sector. Thus, 
the rule is not subject to the requirements of Sections 202 and 205 of 
the UMRA.

E. Executive Order 13132: Federalism

    Executive Order 13132, entitled ``Federalism'' (64 FR 43255, August 
10, 1999), requires EPA to develop an accountable process to ensure 
``meaningful and timely input by State and Local officials in the 
development of regulatory policies that have federalism implications.'' 
``Policies that have federalism implications'' is defined in the 
Executive Order to include regulations that have ``substantial direct 
effects on the States, on the relationship between the national 
government and the States, or on the distribution of power and 
responsibilities among the various levels of government.''
    This rule does not have federalism implications. It will not have 
substantial direct effects on the States, on the relationship between 
the national government and the States, or on the distribution of power 
and responsibilities among the various levels of government as 
specified in Executive Order 13132.

F. Executive Order 13175: Consultation and Coordination With Indian 
Tribal Governments

    Executive Order 13175, entitled ``Consultation and Coordination 
with Indian Tribal Governments'' (65 FR 67249, November 9, 2000), 
requires EPA to develop an accountable process to ensure ``meaningful 
and timely input by tribal officials in the development of regulatory 
policies that have tribal implications.'' This rule does not have

[[Page 19258]]

tribal implications as specified in Executive Order 13175.

G. Executive Order 13045: Protection of Children From Environmental 
Health and Safety Risks

    Executive Order 13045, entitled ``Protection of Children from 
Environmental Health and Safety Risks'' (62 FR 19885, April 23, 1997), 
applies to any rule that: (1) is determined to be economically 
significant as defined under Executive Order 12886, and (2) concerns an 
environmental health or safety risk that may have a proportionate 
effect on children. This rule is not subject to Executive Order 13045 
because it is not an economically significant rule as defined by 
Executive Order 12866, and because it does not involve decisions on 
environmental health or safety risks.

H. Executive Order 13211: Actions That Significantly Affect Energy 
Supply, Distribution, or Use

    This proposed rule is not subject to Executive Order 13211, 
``Actions Concerning Regulations That Significantly Affect Energy 
Supply, Distribution of Use'' (66 FR 28335 (MAY 22, 2001), because it 
is not a significant regulatory action under Executive Order 12866.

I. National Technology Transfer and Advancement Act of 1995 (NTTAA)

    Section 12(d) (15 U.S.C 272 note) of NTTA, Public Law 104-113, 
directs EPA to use voluntary consensus standards in it's regulatory 
activities unless to do so would be inconsistent with applicable law or 
otherwise impractical. Voluntary consensus standards are technical 
standards (e.g., materials specifications, test methods, sampling 
procedures and business practices) that are developed or adopted by 
voluntary consensus standards bodies. The NTTA directs EPA to provide 
Congress, through OMB, explanations when the Agency decides not to use 
available and applicable voluntary consensus standards.
    This proposed rulemaking does not involve technical standards. 
Therefore, EPA is not considering the use of any voluntary consensus 
standards.

J. Executive Order 12898: Federal Actions To Address Environmental 
Justice in Minority Populations and Low-Income Populations

    Executive Order (EO) 12898 (59 FR 7629 (Feb. 16, 1994) establishes 
federal executive policy on environmental justice. Its main provision 
directs federal agencies, to the greatest extent practicable and 
permitted by law, to make environmental justice part of their mission 
by identifying and addressing, as appropriate, disproportionately high 
and adverse human health or environmental effects of their programs, 
policies, and activities on minority populations and low-income 
populations in the United States.
    EPA has determined that this proposed rule will not have 
disproportionately high and adverse human health or environmental 
effects on minority or low-income populations because it does not 
affect the level of protection provided to human health or the 
environment. This proposed rulemaking does not involve human health or 
environmental affects.

List of Subjects in 48 CFR Parts 1511 and 1552

    Describing Agency Needs; Solicitation Provisions and Contract 
Clauses.

    Dated: April 3, 2015.
John R. Bashista,
Director, Office of Acquisition Management.

    Therefore, 48 CFR Chapter 15 is proposed to be amended as set forth 
below:

PART 1511--DESCRIBING AGENCY NEEDS

0
1. The authority citation for part 1511 continues to read as follows:

    Authority:  Sec. 205(c), 63 Stat. 390, as amended, 40 U.S.C. 
486(c).
0
2. Revise 1511.011-73 to read as follows:


1511.011-73  Level of effort

    The Contracting Officer shall insert the clause at 1552.211-73, 
Level of Effort--Cost Reimbursement Contract, in cost-reimbursement 
contracts including cost contracts without fee, cost-sharing contracts, 
cost-plus-fixed-fee (CPFF) contracts, cost-plus-incentive-fee contracts 
(CPIF), and cost-plus-award-fee contracts (CPAF).

PART 1552--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

0
3. The authority citation for part 1552 continues to read as follows:

    Authority:  5 U.S.C. 301; Sec. 205(c), 63 Stat. 390, as amended, 
40 U.S.C. 486(c); and 41 U.S.C. 418b.

0
4. Revise 1552.211-73 to read as follows:


1552.211-73  Level of effort--cost-reimbursement contract.

    As prescribed in 1511.011-73, the contracting officer shall insert 
the following contract clause in cost-reimbursement contracts including 
cost contracts without fee, cost-sharing contracts, cost-plus-fixed-fee 
(CPFF) contracts, cost-plus-incentive-fee contracts (CPIF), and cost-
plus-award-fee contracts (CPAF).

Level of Effort--Cost-Reimbursement Contract (__2015)
    (a) The Contractor shall perform all work and provide all 
required reports within the level of effort specified below. The 
Contractor shall provide __ direct labor hours for the base period, 
which represents the Government's best estimate of the level of 
effort to fulfill these requirements, and is provided for advisory 
and estimating purposes. The Government is only obligated to pay for 
direct labor hours used and corresponding fixed fee for labor hours 
completed.
    (b) Direct labor includes personnel such as engineers, 
scientists, draftsmen, technicians, statisticians, and programmers, 
and not support personnel such as company management or data entry/
word processing/ accounting personnel even though such support 
personnel are normally treated as direct labor by the Contractor. 
The level of effort specified in paragraph (a) includes Contractor, 
subcontractor, and consultant non-support labor hours.
    (c) If the Contractor provides less than 90 percent of the level 
of effort specified for the base period or any optional period 
exercised, an equitable downward adjustment of the fixed fee, if 
any, for that period will be made. The downward adjustment will 
reduce the fixed fee by the percentage by which the total expended 
level of effort is less than 100% of that specified in paragraph 
(a). (For instance, if a hypothetical base-period LOE of 100,000 
hours is being reduced to 70,000, the fixed fee shall also be 
reduced by the same 30%. Using a corresponding hypothetical base-
period fixed fee pool of $300,000, the reduced fixed-fee amount is 
calculated as: $300,000 x (70,000 hours/100,000 hours) = $210,000.)
    (d) The Government may require the Contractor to provide 
additional effort up to 110 percent of the level of effort for any 
period until the estimated cost for that period has been reached. 
However, this additional effort shall not result in any increase in 
the fixed fee, if any. If this is a cost-plus-incentive-fee (CPIF) 
contract, the term ``fee'' in this paragraph means ``base fee and 
incentive fee.'' If this is a cost-plus-award-fee (CPAF) contract, 
the term ``fee'' in this paragraph means ``base fee and award fee.''
    (e) If the level of effort specified to be ordered during a 
given base or option period is not ordered during that period, that 
level of effort may not be accumulated and ordered during a 
subsequent period.
    (f) These terms and conditions do not supersede the requirements 
of either the ``Limitation of Cost'' or ``Limitation of Funds'' 
clauses.

(End of clause)

[FR Doc. 2015-08183 Filed 4-9-15; 8:45 am]
 BILLING CODE 6560-50-P



                                                  19256                     Federal Register / Vol. 80, No. 69 / Friday, April 10, 2015 / Proposed Rules

                                                     Witnesses should expect the Office to                ENVIRONMENTAL PROTECTION                               comment directly to EPA without going
                                                  have carefully studied all written                      AGENCY                                                 through www.regulations.gov, your
                                                  comments, and the Office will expect                                                                           email address will be automatically
                                                  witnesses to have done the same with                    48 CFR Parts 1511 and 1552                             captured and included as part of the
                                                  respect to the classes for which they                   [EPA–HQ–OARM–2012–0478; FRL–9925–                      comment that is placed in the public
                                                  will be presenting. Witnesses will be                   99–OARM]                                               docket, and made available on the
                                                  given an opportunity to provide a brief                                                                        Internet. If you submit an electronic
                                                  (three- to five-minute) overview of their               EPAAR Clause for Level of Effort—                      comment, EPA recommends that you
                                                  position at the outset of the panel. After              Cost-Reimbursement Contract                            include your name and other contact
                                                  that, the hearings will focus on legal or                                                                      information in the body of your
                                                  factual issues that are unclear or                      AGENCY:  Environmental Protection                      comment, and with any disk or CD–
                                                  underdeveloped in the written record,                   Agency (EPA).                                          ROM you submit. If EPA cannot read
                                                  as identified by the Office, as well as                 ACTION: Proposed rule.                                 your comment due to technical
                                                  demonstrative evidence.                                                                                        difficulties, and cannot contact you for
                                                                                                          SUMMARY:   The Environmental Protection                clarification, EPA may not be able to
                                                     The Office stresses that factual                     Agency (EPA) amends the EPA                            consider your comment. Electronic files
                                                  information is critical to the rulemaking               Acquisition Regulation (EPAAR) to                      should avoid the use of special
                                                  process, and encourages witnesses to                    update policy, procedures, and contract                characters, any form of encryption, and
                                                  provide real-world examples to support                  clauses. The proposed rule updates the                 be free of any defects or viruses. For
                                                  their arguments. In some cases, the best                EPAAR clause Level of Effort—Cost-                     additional information about EPA’s
                                                  way to do this may be to provide a                      Reimbursement Term Contract,                           public docket, visit the EPA Docket
                                                  demonstration of a claimed                              modifies the clause title, and updates                 Center homepage at http://
                                                  noninfringing use or the technologies                   the corresponding EPAAR clause                         www.epa.gov/ epahome/ dockets.htm.
                                                  pertinent to a proposal. As noted above,                prescription.                                            Docket: All documents in the docket
                                                  a person wishing to make such a                                                                                are listed in the www.regulations.gov
                                                                                                          DATES:   Comments must be received on
                                                  demonstration must include a request to                                                                        index. Although listed in the index,
                                                                                                          or before May 11, 2015.
                                                  do so with his or her request to testify,                                                                      some information is not publicly
                                                  using the appropriate space on the form                 ADDRESSES: Submit your comments,
                                                                                                          identified by Docket ID No. EPA–HQ–                    available, e.g., CBI or other information
                                                  described above. To ensure proper                                                                              whose disclosure is restricted by statute.
                                                  documentation of the hearings, the                      OARM–2012–0478, by one of the
                                                                                                          following methods:                                     Certain other material, such as
                                                  Office will require that a copy of any
                                                  audio, visual, or audiovisual materials                    • www.regulations.gov: Follow the                   copyrighted material, will be publicly
                                                                                                          on-line instructions for submitting                    available only in hard copy. Publicly
                                                  that have been prepared in advance                                                                             available docket materials are available
                                                  (e.g., slideshows and videos) be                        comments.
                                                  provided to the Office at the hearing.                     • Email: valentino.thomas@ epa.gov                  either electronically in
                                                  Live demonstrations will be recorded by                    • Mail: EPA–HQ–OARM–2012–0478,                      www.regulations.gov, or in hard copy at
                                                                                                          OEI Docket, Environmental Protection                   the Office of Environmental Information
                                                  a videographer provided by the Office.                                                                         (OEI) Docket, EPA/ DC, EPA West,
                                                  The Office may contact witnesses                        Agency, 2822T, 1200 Pennsylvania Ave.
                                                                                                          NW., Washington, DC 20460. Please                      Room 3334, 1301 Constitution Ave.
                                                  individually ahead of time to ensure                                                                           NW., Washington, DC. The Public
                                                  that demonstrations can be preserved                    include a total of three (3) copies.
                                                  for the record in an appropriate form.                     • Hand Delivery: EPA Docket Center-                 Reading Room is open from 8:30 a.m. to
                                                                                                          Attention OEI Docket, EPA West, Room                   4:30 p.m., Monday through Friday,
                                                     In addition to videography                           B102, 1301 Constitution Ave. NW.,                      excluding legal holidays. The telephone
                                                  equipment, the Office expects to have a                 Washington, DC 20004. Such deliveries                  number for the Public Reading Room is
                                                  PC, projector, and screen in the hearing                are only accepted during the Docket’s                  (202) 566–1744, and the telephone
                                                  room to accommodate demonstrations.                     normal hours of operation, and special                 number for the EPA Docket Center is
                                                  Beyond this equipment, witnesses are                    arrangements should be made for                        (202) 566–1752. This Docket Facility is
                                                  responsible for supplying and operating                 deliveries of boxed information.                       open from 8:30 a.m. to 4:30 p.m.
                                                  any other equipment needed for their                       Instructions: Direct your comments to               Monday through Friday, excluding legal
                                                  demonstrations. Persons planning to                     Docket ID No. EPA–HQ–OARM–2012–                        holidays.
                                                  bring additional electronic or                          0478. EPA’s policy is that all comments                FOR FURTHER INFORMATION CONTACT:
                                                  audiovisual equipment must notify the                   received will be included in the public                Thomas Valentino, Policy, Training, and
                                                  Office at least five days in advance of                 docket without change, and may be                      Oversight Division, Office of
                                                  their scheduled hearing date by                         made available online at                               Acquisition Management (3802R),
                                                  emailing Stephen Ruwe, Assistant                        www.regulations.gov, including any                     Environmental Protection Agency, 1200
                                                  General Counsel, at sruwe@loc.gov.                      personal information provided, unless                  Pennsylvania Ave. NW., Washington,
                                                     All hearings will be open to the                     the comment includes information                       DC 20460; telephone number: 202–564–
                                                  public, but seating will be limited and                 claimed to be Confidential Business                    4522; email address: valentino.thomas@
                                                  will be provided on a first-come, first-                Information (CBI) or other information                 epa.gov.
                                                  serve basis. Witnesses and persons                      whose disclosure is restricted by statute.             SUPPLEMENTARY INFORMATION:
                                                  accompanying witnesses will be given                    Do not submit information that you
rljohnson on DSK3VPTVN1PROD with PROPOSALS




                                                                                                          consider to be CBI or otherwise                        I. General Information
                                                  priority in seating.
                                                                                                          protected through www.regulations.gov                    1. Submitting CBI. Do not submit this
                                                    Dated: April 7, 2015.
                                                                                                          or email. The www.regulations.gov Web                  information to EPA through
                                                  Jacqueline C. Charlesworth,                             site is an ’’anonymous access’’ system,                www.regulations.gov or email. Clearly
                                                  General Counsel and Associate Register of               which means EPA will not know your                     mark the part or all of the information
                                                  Copyrights.                                             identity or contact information unless                 that you claim to be CBI. For CBI
                                                  [FR Doc. 2015–08255 Filed 4–9–15; 8:45 am]              you provide it in the body of your                     information in a disk or CD ROM that
                                                  BILLING CODE P                                          comment. If you send an email                          you mail to EPA, mark the outside of the


                                             VerDate Sep<11>2014   15:27 Apr 09, 2015   Jkt 235001   PO 00000   Frm 00013   Fmt 4702   Sfmt 4702   E:\FR\FM\10APP1.SGM   10APP1


                                                                            Federal Register / Vol. 80, No. 69 / Friday, April 10, 2015 / Proposed Rules                                            19257

                                                  disk or CD ROM as CBI, and then                         EPAAR 1511.011–73 clause prescription                  substantial number of small entities.
                                                  identify electronically within the disk or              is also being updated accordingly.                     This action revises a current EPAAR
                                                  CD ROM the specific information that is                                                                        provision and does not impose
                                                                                                          III. Proposed Rule
                                                  claimed as CBI. In addition to one                                                                             requirements involving capital
                                                  complete version of the comment that                       This proposed rule amends the                       investment, implementing procedures,
                                                  includes information claimed as CBI, a                  EPAAR to revise the following:                         or record keeping. This rule will not
                                                  copy of the comment that does not                          1. The EPAAR 1511.011–73 clause                     have a significant economic impact on
                                                  contain the information claimed as CBI                  prescription is updated.                               small entities.
                                                  must be submitted for inclusion in the                     2. The clause title is revised as
                                                                                                          follows: Level of Effort—Cost-                         D. Unfunded Mandates Reform Act
                                                  public docket. Information so marked
                                                  will not be disclosed except in                         Reimbursement Contract.                                  Title II of the Unfunded Mandates
                                                  accordance with procedures set forth in                    3. Paragraph (a) has been revised.                  Reform Act of 1995 (UMRA), Public
                                                                                                             4. An expositional statement has been
                                                  40 CFR part 2.                                                                                                 Law 104–4, establishes requirements for
                                                                                                          added to paragraph (c).
                                                     2. Tips for Preparing Your Comments.                                                                        federal agencies to assess the effects of
                                                  When submitting comments, remember                      IV. Statutory and Executive Order                      their regulatory actions on State, Local,
                                                  to:                                                     Reviews                                                and Tribal governments and the private
                                                     • Identify the rulemaking by docket                                                                         sector.
                                                  number and other identifying                            A. Executive Order 12866: Regulatory
                                                                                                          Planning and Review                                      This rule contains no federal
                                                  information (subject heading, Federal                                                                          mandates (under the regulatory
                                                  Register date and page number).                           This action is not a ‘‘significant                   provisions of the Title II of the UMRA)
                                                     • Follow directions—The Agency                       regulatory action’’ under the terms of                 for State, Local, and Tribal governments
                                                  may ask you to respond to specific                      Executive Order (EO)12866 (58 FR                       or the private sector. The rule imposes
                                                  questions or organize comments by                       51735, October 4, 1993) and therefore,                 no enforceable duty on any State, Local
                                                  referencing a Code of Federal                           not subject to review under the EO.                    or Tribal governments or the private
                                                  Regulations (CFR) part or section                       B. Paperwork Reduction Act                             sector. Thus, the rule is not subject to
                                                  number.                                                                                                        the requirements of Sections 202 and
                                                     • Explain why you agree or disagree,                   This action does not impose an
                                                                                                                                                                 205 of the UMRA.
                                                  suggest alternatives, and substitute                    information collection burden under the
                                                  language for your requested changes.                    provisions of the Paperwork Reduction                  E. Executive Order 13132: Federalism
                                                     • Describe any assumptions and                       Act, 44 U.S.C. 3501 et seq. No
                                                                                                                                                                    Executive Order 13132, entitled
                                                  provide any technical information and/                  information is collected under this
                                                                                                                                                                 ‘‘Federalism’’ (64 FR 43255, August 10,
                                                  or data that you used.                                  action.
                                                                                                                                                                 1999), requires EPA to develop an
                                                     • If you estimate potential costs or
                                                                                                          C. Regulatory Flexibility Act (RFA), as                accountable process to ensure
                                                  burdens, explain how you arrived at
                                                                                                          Amended by the Small Business                          ‘‘meaningful and timely input by State
                                                  your estimate in sufficient detail to
                                                                                                          Regulatory Enforcement Fairness Act of                 and Local officials in the development
                                                  allow for it to be reproduced.
                                                                                                          1996 (SBREFA), 5 U.S.C. 601 et. seq.                   of regulatory policies that have
                                                     • Provide specific examples to
                                                  illustrate your concerns, and suggest                      The Regulatory Flexibility Act                      federalism implications.’’ ‘‘Policies that
                                                  alternatives.                                           generally requires an agency to prepare                have federalism implications’’ is
                                                     • Explain your views as clearly as                   a regulatory flexibility analysis of any               defined in the Executive Order to
                                                  possible, avoiding the use of profanity                 rule subject to notice and comment                     include regulations that have
                                                  or personal threats.                                    rulemaking requirements under the                      ‘‘substantial direct effects on the States,
                                                     • Make sure to submit your                           Administrative Procedure Act or any                    on the relationship between the national
                                                  comments by the comment period                          other statute; unless the agency certifies             government and the States, or on the
                                                  deadline identified.                                    that the rule will not have a significant              distribution of power and
                                                                                                          economic impact on a substantial                       responsibilities among the various
                                                  II. Background                                                                                                 levels of government.’’
                                                                                                          number of small entities. Small entities
                                                     The EPA reviewed EPAAR clause                        include small businesses, small                           This rule does not have federalism
                                                  1552.211–73, Level of Effort—Cost-                      organizations, and small governmental                  implications. It will not have substantial
                                                  Reimbursement Term Contract, to make                    jurisdictions.                                         direct effects on the States, on the
                                                  the clause more prescriptive in                            For purposes of assessing the impact                relationship between the national
                                                  describing the EPA’s responsibilities                   of today’s final rule on small entities,               government and the States, or on the
                                                  when the Agency orders less level of                    ‘‘small entity’’ is defined as: (1) A small            distribution of power and
                                                  effort (LOE) than the maximum LOE                       business that meets the definition of a                responsibilities among the various
                                                  specified in the subject clause; e.g., if               small business found in the Small                      levels of government as specified in
                                                  the clause specifies 100,000 hours for a                Business Act and codified at 13 CFR                    Executive Order 13132.
                                                  given period of performance but the                     121.201; (2) a small governmental                      F. Executive Order 13175: Consultation
                                                  contractor only provides 70,000 hours.                  jurisdiction that is a government of a                 and Coordination With Indian Tribal
                                                  The clause provides that a downward                     city, county, town, school district or                 Governments
                                                  equitable adjustment will be made to                    special district with a population of less
                                                  reduce the fixed fee by the percentage                  than 50,000; and (3) a small                              Executive Order 13175, entitled
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                                                  by which the total expended LOE is less                 organization that is any not-for-profit                ‘‘Consultation and Coordination with
                                                  than 100% of that specified in the LOE                  enterprise which is independently                      Indian Tribal Governments’’ (65 FR
                                                  clause; e.g., the fixed fee amount will be              owned and operated and is not                          67249, November 9, 2000), requires EPA
                                                  reduced by 30% using the same                           dominant in its field.                                 to develop an accountable process to
                                                  100,000/ 70,000 hours example. The                         After considering the economic                      ensure ‘‘meaningful and timely input by
                                                  clause title is also modified so that the               impacts of this rule on small entities, I              tribal officials in the development of
                                                  clause is now applicable to EPA LOE                     certify that this action will not have a               regulatory policies that have tribal
                                                  cost-reimbursement contracts. The                       significant economic impact on a                       implications.’’ This rule does not have


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                                                  19258                     Federal Register / Vol. 80, No. 69 / Friday, April 10, 2015 / Proposed Rules

                                                  tribal implications as specified in                     make environmental justice part of their               contracts without fee, cost-sharing
                                                  Executive Order 13175.                                  mission by identifying and addressing,                 contracts, cost-plus-fixed-fee (CPFF)
                                                                                                          as appropriate, disproportionately high                contracts, cost-plus-incentive-fee
                                                  G. Executive Order 13045: Protection of
                                                                                                          and adverse human health or                            contracts (CPIF), and cost-plus-award-
                                                  Children From Environmental Health
                                                                                                          environmental effects of their programs,               fee contracts (CPAF).
                                                  and Safety Risks
                                                                                                          policies, and activities on minority                   Level of Effort—Cost-Reimbursement
                                                     Executive Order 13045, entitled                      populations and low-income                                Contract (ll2015)
                                                  ‘‘Protection of Children from                           populations in the United States.                         (a) The Contractor shall perform all work
                                                  Environmental Health and Safety Risks’’                   EPA has determined that this                         and provide all required reports within the
                                                  (62 FR 19885, April 23, 1997), applies                  proposed rule will not have                            level of effort specified below. The
                                                  to any rule that: (1) is determined to be               disproportionately high and adverse                    Contractor shall provide ll direct labor
                                                  economically significant as defined                     human health or environmental effects                  hours for the base period, which represents
                                                  under Executive Order 12886, and (2)                    on minority or low-income populations                  the Government’s best estimate of the level
                                                  concerns an environmental health or                     because it does not affect the level of                of effort to fulfill these requirements, and is
                                                  safety risk that may have a                             protection provided to human health or                 provided for advisory and estimating
                                                  proportionate effect on children. This                  the environment. This proposed                         purposes. The Government is only obligated
                                                  rule is not subject to Executive Order                  rulemaking does not involve human                      to pay for direct labor hours used and
                                                  13045 because it is not an economically                 health or environmental affects.                       corresponding fixed fee for labor hours
                                                  significant rule as defined by Executive                                                                       completed.
                                                  Order 12866, and because it does not                    List of Subjects in 48 CFR Parts 1511                     (b) Direct labor includes personnel such as
                                                  involve decisions on environmental                      and 1552                                               engineers, scientists, draftsmen, technicians,
                                                                                                            Describing Agency Needs; Solicitation                statisticians, and programmers, and not
                                                  health or safety risks.
                                                                                                          Provisions and Contract Clauses.                       support personnel such as company
                                                  H. Executive Order 13211: Actions That                                                                         management or data entry/word processing/
                                                  Significantly Affect Energy Supply,                       Dated: April 3, 2015.                                accounting personnel even though such
                                                  Distribution, or Use                                    John R. Bashista,                                      support personnel are normally treated as
                                                                                                          Director, Office of Acquisition Management.            direct labor by the Contractor. The level of
                                                    This proposed rule is not subject to                                                                         effort specified in paragraph (a) includes
                                                  Executive Order 13211, ‘‘Actions                          Therefore, 48 CFR Chapter 15 is                      Contractor, subcontractor, and consultant
                                                  Concerning Regulations That                             proposed to be amended as set forth                    non-support labor hours.
                                                  Significantly Affect Energy Supply,                     below:                                                    (c) If the Contractor provides less than 90
                                                  Distribution of Use’’ (66 FR 28335 (MAY                                                                        percent of the level of effort specified for the
                                                  22, 2001), because it is not a significant              PART 1511—DESCRIBING AGENCY                            base period or any optional period exercised,
                                                  regulatory action under Executive Order                 NEEDS                                                  an equitable downward adjustment of the
                                                  12866.                                                  ■ 1. The authority citation for part 1511
                                                                                                                                                                 fixed fee, if any, for that period will be made.
                                                                                                                                                                 The downward adjustment will reduce the
                                                  I. National Technology Transfer and                     continues to read as follows:                          fixed fee by the percentage by which the total
                                                  Advancement Act of 1995 (NTTAA)                           Authority: Sec. 205(c), 63 Stat. 390, as             expended level of effort is less than 100% of
                                                     Section 12(d) (15 U.S.C 272 note) of                 amended, 40 U.S.C. 486(c).                             that specified in paragraph (a). (For instance,
                                                  NTTA, Public Law 104–113, directs                       ■ 2. Revise 1511.011–73 to read as                     if a hypothetical base-period LOE of 100,000
                                                  EPA to use voluntary consensus                          follows:                                               hours is being reduced to 70,000, the fixed
                                                  standards in it’s regulatory activities                                                                        fee shall also be reduced by the same 30%.
                                                                                                          1511.011–73       Level of effort                      Using a corresponding hypothetical base-
                                                  unless to do so would be inconsistent                     The Contracting Officer shall insert
                                                  with applicable law or otherwise                                                                               period fixed fee pool of $300,000, the
                                                                                                          the clause at 1552.211–73, Level of                    reduced fixed-fee amount is calculated as:
                                                  impractical. Voluntary consensus                        Effort—Cost Reimbursement Contract,                    $300,000 × (70,000 hours/100,000 hours) =
                                                  standards are technical standards (e.g.,                in cost-reimbursement contracts                        $210,000.)
                                                  materials specifications, test methods,                 including cost contracts without fee,                     (d) The Government may require the
                                                  sampling procedures and business                        cost-sharing contracts, cost-plus-fixed-               Contractor to provide additional effort up to
                                                  practices) that are developed or adopted                fee (CPFF) contracts, cost-plus-                       110 percent of the level of effort for any
                                                  by voluntary consensus standards                        incentive-fee contracts (CPIF), and cost-              period until the estimated cost for that period
                                                  bodies. The NTTA directs EPA to                         plus-award-fee contracts (CPAF).                       has been reached. However, this additional
                                                  provide Congress, through OMB,                                                                                 effort shall not result in any increase in the
                                                  explanations when the Agency decides                    PART 1552—SOLICITATION                                 fixed fee, if any. If this is a cost-plus-
                                                  not to use available and applicable                     PROVISIONS AND CONTRACT                                incentive-fee (CPIF) contract, the term ‘‘fee’’
                                                  voluntary consensus standards.                          CLAUSES                                                in this paragraph means ‘‘base fee and
                                                     This proposed rulemaking does not                                                                           incentive fee.’’ If this is a cost-plus-award-fee
                                                  involve technical standards. Therefore,                 ■ 3. The authority citation for part 1552              (CPAF) contract, the term ‘‘fee’’ in this
                                                  EPA is not considering the use of any                   continues to read as follows:                          paragraph means ‘‘base fee and award fee.’’
                                                  voluntary consensus standards.                            Authority: 5 U.S.C. 301; Sec. 205(c), 63                (e) If the level of effort specified to be
                                                                                                          Stat. 390, as amended, 40 U.S.C. 486(c); and           ordered during a given base or option period
                                                  J. Executive Order 12898: Federal                       41 U.S.C. 418b.                                        is not ordered during that period, that level
                                                  Actions To Address Environmental                                                                               of effort may not be accumulated and ordered
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                                                  Justice in Minority Populations and                     ■ 4. Revise 1552.211–73 to read as                     during a subsequent period.
                                                  Low-Income Populations                                  follows:                                                  (f) These terms and conditions do not
                                                                                                                                                                 supersede the requirements of either the
                                                     Executive Order (EO) 12898 (59 FR                    1552.211–73 Level of effort—cost-
                                                                                                          reimbursement contract.                                ‘‘Limitation of Cost’’ or ‘‘Limitation of
                                                  7629 (Feb. 16, 1994) establishes federal                                                                       Funds’’ clauses.
                                                  executive policy on environmental                         As prescribed in 1511.011–73, the
                                                                                                                                                                 (End of clause)
                                                  justice. Its main provision directs                     contracting officer shall insert the
                                                  federal agencies, to the greatest extent                following contract clause in cost-                     [FR Doc. 2015–08183 Filed 4–9–15; 8:45 am]
                                                  practicable and permitted by law, to                    reimbursement contracts including cost                 BILLING CODE 6560–50–P




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Document Created: 2018-02-21 10:08:44
Document Modified: 2018-02-21 10:08:44
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionProposed rule.
DatesComments must be received on or before May 11, 2015.
ContactThomas Valentino, Policy, Training, and Oversight Division, Office of Acquisition Management (3802R), Environmental Protection Agency, 1200 Pennsylvania Ave. NW.,
FR Citation80 FR 19256 
CFR Citation48 CFR 1511
48 CFR 1552

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