[Federal Register Volume 64, Number 16 (Tuesday, January 26, 1999)]
[Rules and Regulations]
[Pages 3875-3876]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-1649]


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ENVIRONMENTAL PROTECTION AGENCY

48 CFR Parts 1516 and 1552

[FRL-6222-5]


Acquisition Regulation: Administrative Amendments

AGENCY: Environmental Protection Agency.

ACTION: Final rule.

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SUMMARY: The Environmental Protection Agency (EPA) is issuing this 
final rule to amend the EPA Acquisition Regulation (EPAAR) (48 CFR 
Chapter 15) to remove obsolete coverage and make other administrative 
changes based on recent revisions to the Federal Acquisition Regulation 
(FAR). As authorized by section 22(a) of the Office of Federal 
Procurement Policy Act, 41 U.S.C. 418b, this rule is being issued 
without notice and opportunity for public comment because it does not 
impose a significant cost or administrative impact on contractors or 
offerors.

EFFECTIVE DATE: February 25, 1999.

FOR FURTHER INFORMATION CONTACT: Louise Senzel, U.S. EPA, Office of 
Acquisition Management, (3802R), 401 M Street, SW, Washington, D.C. 
20460, Telephone: (202) 564-4367.

SUPPLEMENTARY INFORMATION:

A. Background

    As part of the FAR 15 rewrite, the statutory fee limitations 
imposed on cost-plus-fixed fee contracts that had been extended to 
cost-plus-award fee and cost-plus-incentive fee contracts was 
eliminated. The current FAR 15 only places limitations on fee for cost-
plus fixed fee contracts. Additionally, two references included in the 
EPAAR 1552.242-70 ``Indirect Costs'' clause are no longer valid due to 
revisions in the FAR. This rule provides revised references to parallel 
FAR changes.

B. Executive Order 12866

    This rule is not a significant regulatory action for the purposes 
of E.O. 12866; therefore, no review is required by the Office of 
Information and Regulatory Affairs within the Office of Management and 
Budget (OMB).

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because this rule does 
not contain information collection requirements that require the 
approval of OMB under the Paperwork Reduction Act of 1980 (44 U.S.C. 
3501 et seq.)

D. Regulatory Flexibility Act

    The EPA certifies that this rule does not exert a significant 
economic impact on a substantial number of small entities. The 
requirements to contractors under the rule impose no reporting, 
recordkeeping, or compliance costs.

E. Unfunded Mandates

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), Public 
Law 104-4, establishes requirements for Federal agencies to assess 
their regulatory actions on State, local, and tribal governments, and 
the private sector. This rule does not contain a Federal mandate that 
may result in expenditures of $100 million or more for State, local, 
and tribal governments, in the aggregate, or the private sector in one 
year. Any private sector costs for this action relate to paperwork 
requirements and associated expenditures that are far below the level 
established for UMRA applicability. Thus, the rule is not subject to 
the requirements of sections 202 and 205 of the UMRA.

F. Executive Order 13045

    E.O. 13045, Protection of Children from Environmental Health Risks 
and Safety Risks (62 FR 19885, April 23, 1997), applies to any rule 
that: (1) Is determined to be economically significant as defined under 
E.O. 12866, and (2) concerns an environmental health or safety risk 
that EPA has reason to believe may have a disproportionate effect on 
children. If the regulatory action meets both criteria, the Agency must 
evaluate the environmental health or safety effects of the planned rule 
on children, and explain why the planned regulation is preferable to 
other potentially effective and reasonably feasible alternatives 
considered by the Agency.
    EPA interprets E.O. 13045 as applying only to those regulatory 
actions that are based on health or safety risks, such that the 
analysis required under section 5-501 of the Order has the potential to 
influence the regulation. This rule is not subject to E.O. 13045 
because it does not establish an environmental standard intended to 
mitigate health or safety risks.

G. Executive Order 12875

    Under E.O. 12875, EPA may not issue a regulation that is not 
required by statute and creates a mandate upon a State, local, or 
tribal government, unless the Federal government provides the funds 
necessary to pay the direct compliance costs incurred by those 
governments, or EPA consults with those governments. If EPA complies by 
consulting, E.O. 12875 requires EPA to provide OMB a description of the 
extent of EPA's prior consultation with representatives of affected 
State, local, and tribal governments, the nature of their concerns, 
copies of any written communications from the governments, and a 
statement supporting the need to issue the regulation. In addition, 
E.O. 12875 requires EPA to develop an effective process permitting 
elected officials and other representatives of State, local, and tribal 
governments ``to provide meaningful and timely input in the development 
of regulatory proposals containing significant unfunded mandates.''
    Today's rule does not create a mandate on State, local, or tribal 
governments. The rule does not impose any enforceable duties on these 
entities. Accordingly, the requirements of section 1(a) of E.O. 12875 
do not apply to this rule.

H. Executive Order 13084

    Under E.O. 13084, EPA may not issue a regulation that is not 
required by statute, that significantly or uniquely affects the 
communities of Indian tribal governments, and that imposes substantial 
direct compliance costs on those communities, unless the Federal 
government provides the funds necessary to pay the direct compliance 
costs incurred by tribal governments, or EPA consults with those 
governments. If EPA complies by consulting, E.O. 13084 requires EPA to 
provide to the OMB, in a separately identified section of the preamble 
to the rule, a description of

[[Page 3876]]

the extent of EPA's prior consultation with representatives of affected 
tribal governments, a summary of the nature of their concerns, and a 
statement supporting the need to issue the regulation. In addition, 
E.O. 13084 requires EPA to develop an effective process permitting 
elected and other representatives of Indian tribal governments ``to 
provide meaningful and timely input in the development of regulatory 
policies on matters that significantly or uniquely affect their 
communities.''
    Today's rule does not significantly or uniquely affect the 
communities of Indian tribal governments. Accordingly, the requirements 
of section 3(b) of E.O. 13084 do not apply to this rule.

I. National Technology Transfer and Advancement Act of 1995

    Section 12(d) of the National Technology Transfer and Advancement 
Act of 1995 (``NTTAA''), Pub. L. 104-113, section 12(d) (15 U.S.C. 272 
note) directs EPA to use voluntary consensus standards in its 
regulatory activities unless to do so would be inconsistent with 
applicable law or otherwise impractical. Voluntary consensus standards 
are technical standards (e.g., materials specifications, test methods, 
sampling procedures, and business practices) that are developed or 
adopted by voluntary consensus standards bodies. The NTTAA directs EPA 
to provide Congress, through OMB, explanations when the Agency decides 
not to use available and applicable voluntary consensus standards.
    This rulemaking does not involve technical standards. Therefore, 
EPA is not considering the use of any voluntary consensus standards. 
EPA welcomes comments on this aspect of the rulemaking and 
specifically, invites the public to identify potentially-applicable 
voluntary consensus standards and to explain why such standards should 
be used in this regulation.

J. Submission to Congress and the General Accounting Office

    The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the 
Small Business Regulatory Enforcement Fairness Act of 1996, generally 
provides that before a rule may take affect, the agency promulgating 
the rule must submit a rule report, which includes a copy of the rule, 
to each House of the Congress and to the Comptroller General of the 
United States. EPA will submit a report containing this rule and other 
required information to the U.S. Senate, the U.S. House of 
Representatives and the Comptroller General of United States prior to 
publication of the rule in the Federal Register. This rule is not a 
``major rule'' as defined by 5 U.S.C. 804(2).

    Authority: The provisions of this regulation are issued under 5 
U.S.C. 301; Sec. 205(c), 63 Stat. 390.

List of Subjects in 48 CFR Parts 1516 and 1552

    Government procurement.

    Therefore, 48 CFR Chapter 15 is amended as set forth below:

PART 1516--[AMENDED]

    1. The authority citation for Parts 1516 and 1552 continues to read 
as follows:

    Authority: Sec. 205(c), 63 Stat. 390, as amended.

    2. Section 1516.405, paragraph (b) is amended by removing the words 
``in accordance with FAR 15.903(d)'' from the final sentence of the 
paragraph.

PART 1552--[AMENDED]

    3. Section 1552.216-75, is revised to read as follows:


1552.216-75  Base fee and award fee proposal.

    As prescribed in 1516.405(b), insert the following clause:

Base Fee and Award Fee Proposal (FEB 1999)

    For the purpose of this solicitation, offerors shall propose a 
combination of base fee and award fee. Base fee shall not exceed 3% 
of the estimated cost, excluding fee, and the award fee shall not be 
less than ____% of the total estimated cost, excluding fee. The 
combined percentages of base and award fee shall not exceed ____% of 
the total estimated cost, excluding fee.

(End of clause)


1552.242-70  [Amended]

    4. Section 1552.242-70 is amended by revising the reference ``FAR 
42.703(a)'' in the first paragraph of paragraph (a) in the clause to 
read ``FAR 42.703-1(a)'' and the reference ``FAR 15.804-4'' in the 
undesignated paragraph after paragraph (a) in the clause to read ``FAR 
15.406-2''.

    Dated: December 14, 1998.
Betty L. Bailey,
Director, Office of Acquisition Management.
[FR Doc. 99-1649 Filed 1-25-99; 8:45 am]
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