[Federal Register Volume 59, Number 248 (Wednesday, December 28, 1994)]
[Unknown Section]
[Page ]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-30640]
[Federal Register: December 28, 1994]
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DEPARTMENT OF DEFENSE
DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 44 and 52
[FAC 90-23; FAR Case 91-68; Item XXIX]
RIN 9000-AF63
Federal Acquisition Regulation; Consent to Subcontract
AGENCIES: Department of Defense (DOD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Final rule.
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SUMMARY: The Civilian Agency Acquisition Council and the Defense
Acquisition Regulations Council have agreed on a final rule to revise
the Federal Acquisition Regulation (FAR) to eliminate the exception for
contracting officer consent for major systems and subsystems. Instead,
contracting officers are allowed to specify in the contract schedule
all subcontracts for major systems, subsystems, or components needing
special surveillance, for which consent to subcontract must be obtained
by the prime contractor. This regulatory action was not subject to
Office of Management and Budget review under Executive Order 12866,
dated September 30, 1993.
EFFECTIVE DATE: February 27, 1995.
FOR FURTHER INFORMATION CONTACT: Ms. Linda Klein at (202) 501-3775 in
reference to this FAR case. For general information, contact the FAR
Secretariat, Room 4035, GS Building, Washington, DC 20405 (202) 501-
4755. Please cite FAC 90-23, FAR case 91-68.
SUPPLEMENTARY INFORMATION:
A. Background
The councils have agreed that there is a need to revise the FAR to
allow the Government to take maximum advantage of the ``systems''
approach, i.e., by applying the ``systems'' approach to ``consent to
subcontract'' requirements with respect to major systems, subsystems
and components. The revised coverage will allow the Government to rely
on the contractor's approved purchasing system to control routine
procurements.
B. Regulatory Flexibility Act
This final rule does not constitute a significant FAR revision
within the meaning of FAR 1.501 and Public Law 98-577, because the
addition of the word ``critical'' in the text at FAR 44.201 narrows the
field of major systems items involved as well as the number of small
businesses who may be involved with major systems items. This small
business involvement is expected to be minimal. Therefore, publication
for public comment is not required and the Regulatory Flexibility Act
does not apply. However, comments from small entities concerning the
affected FAR subpart will be considered in accordance with 5 U.S.C.
610. Such comments must be submitted separately and should cite 5
U.S.C. 601, et seq. (FAC 90-23, FAR case 91-68), in correspondence.
C. Paperwork Reduction Act
The Paperwork Reduction Act does not apply because the changes to
the FAR do not impose recordkeeping or information collection
requirements, or collections of information from offerors, contractors,
or members of the public which require the approval of the Office of
Management and Budget under 44 U.S.C. 3501, et seq.
List of Subjects in 48 CFR Parts 44 and 52
Government procurement.
Dated: December 7, 1994.
Albert A. Vicchiolla,
Director, Office of Federal Acquisition Policy.
Therefore, 48 CFR parts 44 and 52 are amended as set forth below:
1. The authority citation for 48 CFR parts 44 and 52 continues to
read as follows:
Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42
U.S.C. 2473(c).
PART 44--SUBCONTRACTING POLICIES AND PROCEDURES
2. Section 44.201-1 is amended by revising paragraph (b) to read as
follows:
44.201-1 Fixed-price prime contracts.
* * * * *
(b) If the contractor has an approved purchasing system--
(1) Consent to subcontracts is not required under other fixed-price
prime contracts (but see paragraph (b)(2) of this section); and
(2) Consent is required for subcontracts identified in the
subcontracts clause of the contract. These can be subcontracts for
critical systems, subsystems, or components, or other subcontracts
selected by the contracting officer as needing special surveillance.
Subcontracts may be identified by subcontract number or by class of
items (e.g., subcontracts for engines on a prime contract for
airframes).
* * * * *
3. Section 44.201-2 is amended by revising paragraph (c) and
removing paragraph (d) to read as follows:
44.201-2 Cost-reimbursement and letter prime contracts.
* * * * *
(c) If the contractor has an approved purchasing system--
(1) Consent is not required for the subcontracts identified in
paragraph (b) of this section (but see paragraph (c)(2) of this
section). However, advance notification is still required by 10 U.S.C.
2306(e) or 41 U.S.C. 254(b); and
(2) Consent is required for subcontracts identified in the
subcontracts clause of the contract. These can be subcontracts for
critical systems, subsystems, or components, or other subcontracts
selected by the contracting officer as needing special surveillance.
Subcontracts may be identified by subcontract number or by class of
items (e.g., subcontracts for engines on a prime contract for
airframes).
4. Section 44.204 is amended by revising paragraph (a)(3) to read
as follows:
44.204 Contract clauses.
(a) * * *
(3) If the contracting officer elects to delete the requirement for
advance notification of, or consent to, any subcontracts that were
evaluated during negotiations, the contracting officer shall use the
clause with its Alternate I.
* * * * *
44.205 [Removed]
5. Section 44.205 is removed.
PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
6. Section 52.244-1 is amended by revising the date of the clause
to read ``(FEB 1995)'' and paragraph (e) to read as follows:
52.244-1 Subcontracts (Fixed-Price Contracts).
* * * * *
Subcontracts (Fixed-Price Contracts) (Feb. 1995)
* * * * *
(e) Even if the Contractor's purchasing system has been approved,
the Contractor shall obtain the Contracting Officer's written consent
before placing subcontracts identified below:
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* * * * *
7. Section 52.244-2 is amended by revising the date of the clause
to read ``(FEB 1995)'' and paragraphs (d) and (e) to read as follows:
52.244-2 Subcontracts (Cost-Reimbursement and Letter Contracts).
* * * * *
Subcontracts (Cost-Reimbursement and Letter Contracts) (Feb. 1995)
* * * * *
(d) If the Contractor has an approved purchasing system and the
subcontract is within the scope of such approval, the Contractor may
enter into the subcontracts described in subparagraphs (a)(1) and
(a)(2) of this clause without the consent of the Contracting Officer.
(e) Even if the Contractor's purchasing system has been approved,
the Contractor shall obtain the Contracting Officer's written consent
before placing subcontracts identified below:
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[FR Doc. 94-30640 Filed 12-27-94; 8:45 am]
BILLING CODE 6820-34-P