[Federal Register Volume 60, Number 117 (Monday, June 19, 1995)]
[Proposed Rules]
[Pages 31935-31936]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-14832]



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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 4, 12, 14, 15, 16, 31, 33, 36, 45, 46, 49, 52, and 53

[FAR Case 94-721]
RIN 9000-AG30


Federal Acquisition Regulation; Truth in Negotiations Act and 
Related Changes

AGENCIES: Department of Defense (DOD), General Services Administration 
(GSA), and National Aeronautics and Space Administration (NASA).

[[Page 31936]] ACTION: Extension of comment period and notice of public 
meeting.

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SUMMARY: This public notice is issued to familiarize the public with 
the status of the rulemaking effort on FAR Case 94-721, Truth in 
Negotiations Act and Related Changes (TINA), which implements the 
Federal Acquisition Streamlining Act of 1994 (FASA), to extend the 
period for public comment, and to provide notice of a public meeting. 
The TINA drafting team has made some refinements to the proposed rule 
that was published in the January 6, 1995, Federal Register. The 
revised coverage has been mailed to the public commenters on FAR Case 
94-721 and copies may be obtained by other interested parties.

DATES: Comment Date: Comments should be submitted to the FAR 
Secretariat at the address shown below on or before July 19, 1995.
    Meeting Date: The meeting will be held at 2:00 p.m. on July 7, 
1995.

ADDRESSES: A copy of the revised coverage may be obtained by calling 
the FAR Secretariat at 202-501-4755. Interested parties should submit 
written comments to: General Services Administration, FAR Secretariat 
(VRS), 18th & F Streets, NW, Room 4037, Washington, DC 20405.
    The public meeting will be held at: General Services 
Administration, National Capital Region Auditorium, 7th & D Streets, 
SW, Washington, DC 20407. Please cite FAR case 94-721 in all 
correspondence related to this case.

FOR FURTHER INFORMATION CONTACT:
Mr. Al Winston, Truth in Negotiations Act (TINA) Team Leader, at (703) 
602-2119 in reference to this FAR case. For general information, 
contact the FAR Secretariat, Room 4037, GSA Building, Washington, DC 
20405 (202) 501-4755. Please cite FAR case 94-721.

SUPPLEMENTARY INFORMATION:

A. Background

    On January 6, 1995, a proposed rule was published in the Federal 
Register (60 FR 2282). The proposed rule afforded the public a 60 day 
comment period. During that time, 40 organizations submitted more than 
213 comments. A public meeting was also held on this rule on February 
13, 1995. Based upon comments received, the TINA drafting team refined 
the coverage. Accordingly, a copy of revised coverage has been mailed 
to previous public commenters on FAR Case 94-721. The purpose of this 
notice is to advise the public generally of the availability of the 
revised coverage and enable other interested parties to obtain a copy 
by contacting the FAR Secretariat.

B. Case Summary

    FAR case 94-721 implements Sections 1201 through 1210 and Sections 
1251 and 1252 of FASA. Highlights include making TINA requirements for 
civilian agencies substantially the same as those for the Department of 
Defense (increasing the threshold for submission of ``cost or pricing 
data'' to $500,000 and adding penalties for defective pricing). 
Provisions are also included that increase the threshold for cost or 
pricing data submission every 5 years beginning October 1, 1995. New 
exceptions are added to the requirement for the submission of ``cost or 
pricing data'' for commercial items; approval levels for waivers are 
changed, and prohibitions are placed on acquiring ``cost or pricing 
data'' when an exception applies. The coverage includes a clear 
explanation of adequate price competition as required by the Act.
    Also, FAR coverage has been included that addresses (1) 
``information other than cost or pricing data'', (2) exemptions based 
on established catalog or market price, (3) inter-divisional transfers 
of commercial items at price, and (4) price competition when only one 
offer has been received.
    The FAR language primarily modifies FAR Part 15, together with 
associated Part 52 clauses and Part 53 forms. However, some coverage 
addresses contract clauses where threshold changes are made in Part 14 
pertaining to sealed bid contracting, and in Part 31 where the cost 
principle on material costs has been amended to address inter-
divisional transfers of commercial items at price. Additional 
miscellaneous changes in Parts 4, 12, 15, 16, 31, 33, 36, 45, 46, 49, 
and 53 have also been included.
    When a final rule is promulgated, it will also supersede the 
earlier FAR case 94-720 that was previously published as an interim 
rule in Federal Acquisition Circular (FAC) 90-22. FAR case 94-720 
provided for an immediate increase of the threshold for ``cost or 
pricing data'' submission by contractors to civilian agencies to 
$500,000. FAC 90-22 (FAR case 94-720) also removed the certification 
requirement of commercial pricing for parts or components for 
contractors doing business with civilian agencies.

C. Summary of Changes

    The following are highlights of changes that have been made to the 
proposed rule as a result of the written comments received during the 
comment period and other issues that were raised at the public hearing 
held on 13 February 1995:
     The coverage has been edited to improve readability.
     The hierarchical policy at FAR 15.802 has been clarified 
to ensure that it is consistent with TINA and FASA.
     Regulatory guidance implementing the catalog or market 
price exception to TINA has incorporated more flexible procedures (See 
FAR 52.215-41).

--The Standard Form (SF) 1412 is eliminated.
--Relational tests have been eliminated.
--Disclosure of lowest prices is no longer mandated.
--TINA-based postaward audit access is no longer required.
--Expanded guidance is provided on what constitutes substantial sales.
--Requirement for offerors to account for ``end users'' when addressing 
sales to the general public has been eliminated.
--Reference to GSA certifications for granting a prior exemption under 
FAR 15.804-1(c)(1)(ii)(B) is removed.

     Flexibility in requesting an exception to TINA is improved 
via a generic provision at FAR 52.215-41 that provides broad guidelines 
on the type of data that would be needed to qualify for a TINA 
exception.
     A ``Commercial Item'' definition cross-reference is given.
     A definition of ``cost realism'' has been added.
     Additional data requirements have been removed for 
qualification under the commercial item exception created by FASA 
(rebates, credits, warranties, and sales to resellers).
     Expanded guidance is provided on effective dates for 
certification of cost or pricing data.

E. Presentations at the Public Meeting

    To allow the public to present its views on the refinements to this 
proposed rule, a public meeting will be held at the GSA National 
Capital Region Auditorium on July 7, 1995. Persons or organizations 
wishing to make presentations will be allowed 10 minutes to present 
their views, provided they notify the FAR Secretariat at (202) 501-4745 
and provide an advance copy of their remarks not later than July 5, 
1995.

    Dated: June 13, 1995.
Edward C. Loeb,
Deputy Project Manager for the Implementation of the Federal 
Acquisition Streamlining Act.
[FR Doc. 95-14832 Filed 6-16-95; 8:45 am]
BILLING CODE 6820-JC-M