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)

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.

[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]


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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.

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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