[Federal Register Volume 61, Number 197 (Wednesday, October 9, 1996)]
[Proposed Rules]
[Page 52998]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-25723]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Part 31

[FAR Case 93-026]
RIN 9000-AG59


Federal Acquisition Regulation; Business Meals

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

ACTION: Withdrawal of proposed rule.

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SUMMARY: The Civilian Agency Acquisition Council and the Defense 
Acquisition Regulations Council (Councils) have decided to withdraw FAR 
Case 93-026, Business Meals, published in the Federal Register at 60 FR 
43508, August 21, 1995. The rule proposed revisions to FAR 31.205-43, 
Trade, business, technical and professional activity costs, and 31.205-
46, Travel costs to clarify when the costs of meals for contractor 
employees are allowable.
    The Office of Federal Procurement Policy SWAT Team on Civilian 
Agency Contracting in its report of December 3, 1992, entitled 
``Improving Contracting Practices and Management Controls on Cost-Type 
Federal Contracts,'' recommended several FAR changes, including 
revisions to the FAR cost principles to make them less general with 
regard to the allowability of costs.
    One area identified for clarification was the costs of business 
meals of contractor employees who are not on official travel. A 
proposed rule was published relating to making the costs of meals for 
contractor employees unallowable unless the employee is on official 
company travel or the meals are an integral part of a bona fide 
business meeting.
    As a result of our analysis of public comments received in response 
to the proposed rule, we have determined that the current cost 
principles, especially FAR 31.205-3, Determining reasonableness, and 
31.205-43, Trade, business, technical and professional activity costs, 
are adequate to properly assess the allowability of these costs. 
Therefore, the proposed rule is withdrawn.

FOR FURTHER INFORMATION CONTACT: Mr. Jeremy Olson at 202-501-3221 in 
reference to this FAR case. For general information, contact the FAR 
Secretariat, Room 4041, GS Building, Washington, DC 20405 (202) 501-
4755. Please cite FAR case 93-026, withdrawal.

List of Subjects in 48 CFR Part 31

    Government procurement.

    Dated: October 2, 1996.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.
[FR Doc. 96-25723 Filed 10-8-96; 8:45 am]
BILLING CODE 6820-EP-P