[Federal Register Volume 62, Number 1 (Thursday, January 2, 1997)]
[Rules and Regulations]
[Pages 274-275]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-33219]
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DEPARTMENT OF DEFENSE
48 CFR Part 42
[FAC 90-45; FAR Case 96-324; Item XV]
RIN 9000-AH52
Federal Acquisition Regulation; Limitation on Indirect Cost
Audits
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 amend
the Federal Acquisition Regulation (FAR) implementing Section 808 of
the FY 97 Defense Authorization Act (Pub. L. 104-201), which expands
required audit reciprocity among Federal agencies to include post-award
audits. This regulatory action was not subject to Office of Management
and Budget review under Executive Order 12866, dated September 30,
1993, and is not a major rule under 5 U.S.C. 804.
EFFECTIVE DATE: January 1, 1997.
FOR FURTHER INFORMATION CONTACT: Mr. Jerry Olson at (202) 501-3221 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 90-45, FAR case 96-324.
SUPPLEMENTARY INFORMATION:
A. Background
This FAR change implements Section 808 of the Fiscal Year 1997
National Defense Authorization Act (Public Law 104-201). Section 808
amends 10 U.S.C. 2313(d) and 41 U.S.C. 254d(d) to expand required audit
reciprocity among Federal agencies to include post-award audits.
Section 808 was effective September 23, 1996. 10 U.S.C. 2313(d) and 41
U.S.C. 254d(d) were added by the Federal Acquisition Streamlining Act
of 1994, Sections 2201(a)(1) and 2251(a) (Public Law 103-355), to
include reciprocity on pre-award audits.
B. Regulatory Flexibility Act
The final rule does not constitute a significant FAR revision
within the meaning of FAR 1.501 and Public Law 98-577, and publication
for public comments is not required. 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 cite 5 U.S.C. 601, et seq. (FAC 90-45, FAR case 96-324),
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 Part 42
Government procurement.
Dated: December 24, 1996.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.
Therefore, 48 CFR Part 42 amended as set forth below:
PART 42--CONTRACT ADMINISTRATION
1. The authority citation for 48 CFR Part 42 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).
2. Section 42.703-1 is amended by revising paragraph (a) to read as
follows:
42.703-1 Policy.
(a) A single agency (see 42.705-1(a)) shall be responsible for
establishing indirect cost rates for each business unit. These rates
shall be binding on all agencies and their contracting offices, unless
otherwise specifically prohibited
[[Page 275]]
by statute. An agency shall not perform an audit of indirect cost rates
when the contracting officer determines that the objectives of the
audit can reasonably be met by accepting the results of an audit that
was conducted by any other department or agency of the Federal
Government (10 U.S.C. 2313(d) and 41 U.S.C. 254d(d)).
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[FR Doc. 96-33219 Filed 12-31-96; 8:45 am]
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