83 FR 8634 - Cost Accounting Standards: Clarification of the Exemption From Cost Accounting Standards for Firm-Fixed-Price Contracts and Subcontracts Awarded Without Submission of Certified Cost or Pricing Data
OFFICE OF MANAGEMENT AND BUDGET
Office of Federal Procurement Policy Federal Register Volume 83, Issue 40 (February 28, 2018)
Office of Federal Procurement Policy
Federal Register Volume 83, Issue 40 (February 28, 2018)
| Page Range | 8634-8635 | |
| FR Document | 2018-04101 |
[Federal Register Volume 83, Number 40 (Wednesday, February 28, 2018)] [Rules and Regulations] [Pages 8634-8635] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-04101] ======================================================================= ----------------------------------------------------------------------- OFFICE OF MANAGEMENT AND BUDGET Office of Federal Procurement Policy 48 CFR Part 9903 Cost Accounting Standards: Clarification of the Exemption From Cost Accounting Standards for Firm-Fixed-Price Contracts and Subcontracts Awarded Without Submission of Certified Cost or Pricing Data AGENCY: Office of Management and Budget, Office of Federal Procurement Policy, Cost Accounting Standards Board. ACTION: Final rule. ----------------------------------------------------------------------- SUMMARY: The Office of Federal Procurement Policy (OFPP), Cost Accounting Standards (CAS) Board, is publishing, without change from the proposed rule, a final rule revising the exemption from CAS for firm-fixed-price (FFP) contracts and subcontracts awarded on the basis of adequate price competition without submission of cost or pricing data. This final rule clarifies that the exemption applies to FFP contracts and subcontracts awarded on the basis of adequate price competition without submission of certified cost or pricing data. DATES: Effective date: March 30, 2018. FOR FURTHER INFORMATION CONTACT: Ida Pham, Acting Staff Director, Cost Accounting Standards Board (telephone: 202-881-9062; email: [email protected]). SUPPLEMENTARY INFORMATION: A. Regulatory Process--Changes to 48 CFR Part 9903 The CAS Board's regulations and Standards are codified at 48 CFR chapter 99. This final rule amends of a CAS Board regulation other than a Standard, and as such is not subject to the statutorily prescribed rulemaking process for the promulgation of a Standard at 41 U.S.C. 1502(c) [formerly, 41 U.S.C. 422(g)]. B. Background and Summary In October 2011, the CASB issued a proposed rule to clarify the CAS exemption provided by 48 CFR 9903.201-1(b)(15) (76 FR 61660). Since 2000, this provision has provided an exemption from CAS for FFP contracts and subcontracts awarded on the basis of adequate price competition without submission of cost or pricing data. In proposing to add the word ``certified'' before ``cost or pricing data,'' the Board explained that at the time the CAS rule was promulgated in 2000, the term cost or pricing data was understood to mean certified cost or pricing data. However, as a result of changes made to the Federal Acquisition Regulation in 2010 by the Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council, the term could also be read to mean cost or pricing data without the certification. The Board sought to avoid confusion and provide clarity to the government contractor community on its original intent, which was to implement section 802 of the NDAA for FY 2000 (Pub. L. 106-65). Section 802 adopted the recommendation of the Cost Accounting Standards Board Review Panel, which stated that when certified cost or pricing data were not obtained for FFP contracts and subcontracts, the safeguards provided by CAS were likewise not necessary. For additional background on the proposed rule, go to (76 FR 61660). Two comments were received in response to the proposed rule, both of which expressed support for the proposed change. Accordingly, the CAS Board is adopting and finalizing the proposed rule without change. C. Paperwork Reduction Act The Paperwork Reduction Act (44 U.S.C. Chapter 35, Subchapter I) does not apply to this rulemaking, because this rule imposes no additional paperwork burden on offerors, affected contractors and subcontractors, or members of the public which requires the approval of OMB under 44 U.S.C. 3501, et seq. The purpose of this rule is to clarify the implementation of the ``Streamlined Applicability of Cost Accounting Standards'' at Section 802 of National Defense Authorization Act for Fiscal Year 2000. The records required by this final rule are those normally maintained by contractors and subcontractors who claim reimbursement of costs under Government contracts. D. Executive Orders 12866 and 13771, the Congressional Review Act, and the Regulatory Flexibility Act This rule serves to clarify the elimination of certain administrative requirements associated with the application and administration of the Cost Accounting Standards by covered Government contractors and subcontractors, consistent with the provisions of ``Streamlined Applicability of Cost Accounting Standards'' at Section 802 of National Defense Authorization Act for Fiscal Year 2000. In addition, because the final rule will achieve greater consistency between the CAS and the FAR, the rule promotes simplification for contractors. The economic impact on contractors and subcontractors is, therefore, expected to be minor. As a result, the CAS Board has determined that this final rule will not result in the promulgation of an ``economically significant rule'' under the provisions of Executive Order 12866, that a regulatory impact analysis is not required, and the requirements of E.O. 13771, Reducing Regulation and Controlling Regulatory Costs, do not apply. For the same reason, this final rule is not a ``major rule'' under the Congressional Review Act, 5 U.S.C. Chapter 8. Finally, this final rule does not have a significant effect on a substantial number of small entities because small businesses are exempt from the application of the Cost [[Page 8635]] Accounting Standards. Therefore, this final rule does not require a regulatory flexibility analysis under the Regulatory Flexibility Act of 1980, 5 U.S.C. Chapter 6. List of Subjects in 48 CFR Part 9903 Cost accounting standards, Government procurement. Lesley A. Field, Acting Chair, Cost Accounting Standards Board. For the reasons set forth in this preamble, chapter 99 of title 48 of the Code of Federal Regulations is amended as set forth below: PART 9903--CONTRACT COVERAGE 0 1. The authority citation for part 9903 continues to read as follows: Authority: Public Law 111-350, 124 Stat. 3677, 41 U.S.C. 1502. Subpart 9903.2--CAS Program Requirements 0 2. Section 9903.201-1 is amended by revising paragraph (b)(15) to read as follows: 9903.201-1 CAS applicability. * * * * * (b) * * * (15) Firm-fixed-price contracts or subcontracts awarded on the basis of adequate price competition without submission of certified cost or pricing data. [FR Doc. 2018-04101 Filed 2-27-18; 8:45 am] BILLING CODE 3110-01-P
![8634 Federal Register / Vol. 83, No. 40 / Wednesday, February 28, 2018 / Rules and Regulations
approved ACS telephonic CPE the SUMMARY: The Office of Federal and subcontracts, the safeguards
following: Procurement Policy (OFPP), Cost provided by CAS were likewise not
(1) Any consumer instructions Accounting Standards (CAS) Board, is necessary. For additional background on
required to be included with approved publishing, without change from the the proposed rule, go to (76 FR 61660).
ACS telephonic CPE by the proposed rule, a final rule revising the Two comments were received in
Administrative Council for Terminal exemption from CAS for firm-fixed- response to the proposed rule, both of
Attachments; price (FFP) contracts and subcontracts which expressed support for the
(2) For ACS telephonic CPE that is not awarded on the basis of adequate price proposed change. Accordingly, the CAS
hearing aid compatible, as defined in competition without submission of cost Board is adopting and finalizing the
§ 68.316: or pricing data. This final rule clarifies proposed rule without change.
(i) Notice that FCC rules prohibit the that the exemption applies to FFP C. Paperwork Reduction Act
use of that handset in certain locations; contracts and subcontracts awarded on
and the basis of adequate price competition The Paperwork Reduction Act (44
(ii) A list of such locations (see without submission of certified cost or U.S.C. Chapter 35, Subchapter I) does
§ 68.112). pricing data. not apply to this rulemaking, because
(d) Notice of revocation. When this rule imposes no additional
DATES: Effective date: March 30, 2018.
approval is revoked for any item of paperwork burden on offerors, affected
FOR FURTHER INFORMATION CONTACT: Ida contractors and subcontractors, or
equipment, the responsible party must Pham, Acting Staff Director, Cost
take all reasonable steps to ensure that members of the public which requires
Accounting Standards Board (telephone: the approval of OMB under 44 U.S.C.
purchasers and users of such equipment 202–881–9062; email: Ida.L.Pham@
are notified to discontinue use of such 3501, et seq. The purpose of this rule is
omb.eop.gov). to clarify the implementation of the
equipment.
SUPPLEMENTARY INFORMATION: ‘‘Streamlined Applicability of Cost
§ 68.503 Complaint procedures. Accounting Standards’’ at Section 802
A. Regulatory Process—Changes to 48
The complaint procedures of of National Defense Authorization Act
CFR Part 9903 for Fiscal Year 2000. The records
§§ 68.414 through 68.423 shall apply to
complaints regarding the hearing aid The CAS Board’s regulations and required by this final rule are those
compatibility of ACS telephonic CPE. Standards are codified at 48 CFR normally maintained by contractors and
chapter 99. This final rule amends of a subcontractors who claim
§ 68.504 Administrative Council on CAS Board regulation other than a reimbursement of costs under
Terminal Attachments. Standard, and as such is not subject to Government contracts.
The database registration and labeling the statutorily prescribed rulemaking
process for the promulgation of a D. Executive Orders 12866 and 13771,
provisions of §§ 68.354, 68.610, and the Congressional Review Act, and the
68.612 shall apply to ACS telephonic Standard at 41 U.S.C. 1502(c) [formerly,
Regulatory Flexibility Act
CPE that is approved as hearing aid 41 U.S.C. 422(g)].
compatible and is manufactured in or This rule serves to clarify the
B. Background and Summary elimination of certain administrative
imported to the United States on or after
February 28, 2020. After that date, the In October 2011, the CASB issued a requirements associated with the
information required by the proposed rule to clarify the CAS application and administration of the
Administrative Council on Terminal exemption provided by 48 CFR Cost Accounting Standards by covered
Attachments shall be submitted within 9903.201–1(b)(15) (76 FR 61660). Since Government contractors and
30 days after the date that the 2000, this provision has provided an subcontractors, consistent with the
equipment is manufactured in or exemption from CAS for FFP contracts provisions of ‘‘Streamlined
imported into the United States. and subcontracts awarded on the basis Applicability of Cost Accounting
of adequate price competition without Standards’’ at Section 802 of National
[FR Doc. 2018–04012 Filed 2–27–18; 8:45 am]
submission of cost or pricing data. In Defense Authorization Act for Fiscal
BILLING CODE 6712–01–P
proposing to add the word ‘‘certified’’ Year 2000. In addition, because the final
before ‘‘cost or pricing data,’’ the Board rule will achieve greater consistency
explained that at the time the CAS rule between the CAS and the FAR, the rule
OFFICE OF MANAGEMENT AND was promulgated in 2000, the term cost promotes simplification for contractors.
BUDGET or pricing data was understood to mean The economic impact on contractors
certified cost or pricing data. However, and subcontractors is, therefore,
Office of Federal Procurement Policy as a result of changes made to the expected to be minor. As a result, the
Federal Acquisition Regulation in 2010 CAS Board has determined that this
48 CFR Part 9903 by the Civilian Agency Acquisition final rule will not result in the
Council and the Defense Acquisition promulgation of an ‘‘economically
Cost Accounting Standards: Regulations Council, the term could also significant rule’’ under the provisions of
Clarification of the Exemption From be read to mean cost or pricing data Executive Order 12866, that a regulatory
Cost Accounting Standards for Firm- without the certification. The Board impact analysis is not required, and the
Fixed-Price Contracts and sought to avoid confusion and provide requirements of E.O. 13771, Reducing
Subcontracts Awarded Without clarity to the government contractor Regulation and Controlling Regulatory
Submission of Certified Cost or Pricing community on its original intent, which Costs, do not apply. For the same
sradovich on DSK3GMQ082PROD with RULES
Data was to implement section 802 of the reason, this final rule is not a ‘‘major
AGENCY: Office of Management and NDAA for FY 2000 (Pub. L. 106–65). rule’’ under the Congressional Review
Budget, Office of Federal Procurement Section 802 adopted the Act, 5 U.S.C. Chapter 8. Finally, this
Policy, Cost Accounting Standards recommendation of the Cost Accounting final rule does not have a significant
Board. Standards Board Review Panel, which effect on a substantial number of small
stated that when certified cost or pricing entities because small businesses are
ACTION: Final rule.
data were not obtained for FFP contracts exempt from the application of the Cost
VerDate Sep<11>2014 16:11 Feb 27, 2018 Jkt 244001 PO 00000 Frm 00030 Fmt 4700 Sfmt 4700 E:\FR\FM\28FER1.SGM 28FER1](https://thefederalregister.org/doc/83_FR_8674/page/1.svg)
![Federal Register / Vol. 83, No. 40 / Wednesday, February 28, 2018 / Rules and Regulations 8635
Accounting Standards. Therefore, this permitted vessels based on a projection catch, possess, transfer, land, or sell
final rule does not require a regulatory that the 2018 river herring and shad more than 20,000 lb (9.08 mt) of
flexibility analysis under the Regulatory catch cap for that fishery has been Atlantic mackerel per trip or calendar
Flexibility Act of 1980, 5 U.S.C. Chapter reached. This action is necessary to day through December 31, 2018. Vessels
6. comply with the regulations with more than 20,000 lb (9.08 mt) of
implementing the Atlantic Mackerel, Atlantic mackerel that have entered port
List of Subjects in 48 CFR Part 9903
Squid, and Butterfish Fishery before 00:01 hr local time, February 27,
Cost accounting standards, Management Plan and is intended to 2018, may land and sell more than
Government procurement. limit the harvest of river herring and 20,000 lb (9.08 mt) of Atlantic mackerel
Lesley A. Field, shad in the Greater Atlantic Region. from that trip.
Acting Chair, Cost Accounting Standards DATES: Effective 00:01 hr local time,
Board. February 27, 2018, through December Classification
31, 2018.
For the reasons set forth in this This action is required by 50 CFR part
FOR FURTHER INFORMATION CONTACT:
preamble, chapter 99 of title 48 of the 648 and is exempt from review under
Alyson Pitts, Fishery Management
Code of Federal Regulations is amended Executive Order 12866.
Specialist, (978) 281–9352.
as set forth below: NMFS finds good cause pursuant to 5
SUPPLEMENTARY INFORMATION:
PART 9903—CONTRACT COVERAGE Regulations governing the Atlantic U.S.C. 553(b)(B) to waive prior notice
mackerel fishery can be found at 50 CFR and the opportunity for public comment
■ 1. The authority citation for part 9903 part 648, including requirements for because it would be contrary to the
continues to read as follows: setting annual catch cap allocations for public interest and impracticable. This
Authority: Public Law 111–350, 124 Stat. river herring and shad. NMFS set the action restricts the catch of Atlantic
3677, 41 U.S.C. 1502. 2018 river herring and shad catch cap mackerel for the remainder of the
for the directed Atlantic mackerel fishing year. Data have only recently
Subpart 9903.2—CAS Program fishery at 82 mt as part of a final rule become available indicating that
Requirements to implement the 2016 through 2018 directed Atlantic mackerel trips by
Atlantic mackerel specifications (81 FR federally permitted vessels will have
■ 2. Section 9903.201–1 is amended by 24504, April 4, 2016). caught 95 percent of the river herring
revising paragraph (b)(15) to read as The NMFS Administrator of the and shad catch cap established for the
follows: Greater Atlantic Region (Regional 2018 calendar year. Once NMFS
Administrator) monitors river herring projects that river herring and shad
9903.201–1 CAS applicability.
and shad catch from the directed catch will reach 95 percent of the catch
* * * * * Atlantic mackerel fishery based on
(b) * * * cap, NMFS is required by Federal
vessel and dealer reports, state data, and
(15) Firm-fixed-price contracts or regulation to implement a 20,000 lb
other available information. The
subcontracts awarded on the basis of (9.08 mt) Atlantic mackerel possession
regulations at § 648.24 require that
adequate price competition without limit and prohibit vessels from landing
when the Regional Administrator
submission of certified cost or pricing projects that when 95 percent of the Atlantic mackerel more than once per
data. river herring and shad catch cap has calendar day through December 31,
[FR Doc. 2018–04101 Filed 2–27–18; 8:45 am] been caught by the directed Atlantic 2018. The regulations at § 648.24(b)(6)
BILLING CODE 3110–01–P mackerel fishery (i.e., trips that land require such action to ensure that such
more than 20,000 lb (9.08 mt) of vessels do not exceed the river herring
Atlantic mackerel) will reach 95 percent and shad catch cap for the Atlantic
DEPARTMENT OF COMMERCE of a catch cap, NMFS must prohibit, mackerel fishery. If implementation of
through notification in the Federal this closure is delayed to solicit prior
National Oceanic and Atmospheric Register, Federal limited access public comment, the river herring and
Administration permitted Atlantic mackerel vessels shad catch cap for this fishing year will
from fishing for, possessing, likely be exceeded, thereby
50 CFR Part 648 transferring, receiving, landing, or undermining the conservation
[Docket No. 130903775–4276–02] selling more than 20,000 lb (9.08 mt) of objectives of the Atlantic Mackerel,
Atlantic mackerel per trip or landing Squid, and Butterfish Fishery
RIN 0648–XG054 more than once per calendar day for the Management Plan. NMFS further finds,
remainder of the calendar year. pursuant to 5 U.S.C 553(d)(3), good
Fisheries of the Northeastern United The Regional Administrator has
States; Atlantic Mackerel, Squid, and cause to waive the 30-day delayed
determined, based on vessel and dealer effectiveness period for the reasons
Butterfish; 2018 River Herring and reports, state data, and other available
Shad Catch Cap Reached for the stated above.
information, that Federal limited access
Directed Atlantic Mackerel Commercial Atlantic mackerel vessels will have Authority: 16 U.S.C. 1801 et seq.
Fishery caught 95 percent of the river herring Dated: February 23, 2018.
AGENCY: National Marine Fisheries and shad catch cap by February 20, Emily H. Menashes,
Service (NMFS), National Oceanic and 2018. The regulations at § 648.24(d)
Acting Director, Office of Sustainable
sradovich on DSK3GMQ082PROD with RULES
Atmospheric Administration (NOAA), require NMFS to provide at least a 72 Fisheries, National Marine Fisheries Service.
Commerce. hour notice to the public before any
[FR Doc. 2018–04073 Filed 2–23–18; 4:15 pm]
ACTION: Temporary rule; closure. Atlantic mackerel possession reduction
or fishery closure. Therefore, effective BILLING CODE 3510–22–P
SUMMARY: NMFS is reducing the 00:01 hr local time, February 27, 2018,
Atlantic mackerel possession limit for federally permitted vessels targeting
Federal limited access Atlantic mackerel Atlantic mackerel may not fish for,
VerDate Sep<11>2014 16:11 Feb 27, 2018 Jkt 244001 PO 00000 Frm 00031 Fmt 4700 Sfmt 9990 E:\FR\FM\28FER1.SGM 28FER1](https://thefederalregister.org/doc/83_FR_8674/page/2.svg)
Document Created: 2018-02-28 03:19:47
Document Modified: 2018-02-28 03:19:47
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Rules and Regulations | |
| Action | Final rule. | |
| Dates | Effective date: March 30, 2018. | |
| Contact | Ida Pham, Acting Staff Director, Cost Accounting Standards Board (telephone: 202-881-9062; email: [email protected]). | |
| FR Citation | 83 FR 8634 | |
| CFR Associated | Cost Accounting Standards and Government Procurement |
2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR