Federal Acquisition Regulation (FAR): engineer contracts,

[Federal Register: December 29, 1998 (Volume 63, Number 249)]

[Proposed Rules]

[Page 71709-71711]

From the Federal Register Online via GPO Access [wais.access.gpo.gov]

[DOCID:fr29de98-24]

[[Page 71709]]

Part V

Department of Defense

General Services Administration

National Aeronautics and Space Administration

48 CFR Parts 36, 44, 49, and 52

Federal Acquisition Regulation; Proposed Rules

[[Page 71710]]

DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 36, 44, 49, and 52

[FAR Case 97-043]

RIN 9000-AI22

Federal Acquisition Regulation; Cost-Reimbursement Architect- Engineer Contracts

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

ACTION: Proposed rule.

SUMMARY: The Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council are proposing to amend the Federal Acquisition Regulation (FAR) to provide guidance on the applicability of certain clauses to cost-reimbursement architect-engineer (A-E) contracts.

DATES: Comments should be submitted on or before March 1, 1999 to be considered in the formulation of a final rule.

ADDRESSES: Interested parties should submit written comments to: General Services Administration, FAR Secretariat (MVR), Attn: Laurie Duarte, 1800 F Street, NW, Room 4035, Washington, DC 20405.

E-mail comments submitted over Internet should be addressed to: farcase.97-043@gsa.gov.

Please cite FAR case 97-043 in all correspondence related to this case.

FOR FURTHER INFORMATION CONTACT: The FAR Secretariat, Room 4035, GS Building, Washington, DC 20405, (202) 501-4755, for information pertaining to status or publication schedules. For clarification of content, contact Mr. Jack O'Neill, Procurement Analyst, at (202) 501- 3856. Please cite FAR case 97-043.

SUPPLEMENTARY INFORMATION:

1. Background

   This rule proposes to amend the prescriptions for use of the following FAR clauses to include cost-reimbursement A-E contracts:

   52.236-24--Work Oversight in Architect-Engineer Contracts 52.236-25--Requirements for Registration of Designers 52.244-4--Subcontractors and Outside Associates and Consultants (Architect-Engineer Services) 52.249-6--Termination (Cost-Reimbursement)

   Presently, FAR 36.609 requires use of the clauses at 52.236-24 and 52.236-25 in fixed-price A-E contracts; FAR 44.204 permits use of the clause at 52.244-4 in fixed-price A-E contracts; and FAR 49.503 requires use of the clause at 52.249-6 in cost-reimbursement contracts, except those for A-E services or for research and development with an educational or nonprofit institution on a no-fee basis. The terms of these clauses also are deemed appropriate for cost-reimbursement A-E contracts. Therefore, this rule proposes to expand the applicability of these clauses to such contracts. As a result of this, the FAR matrix at 52.301 is amended to include cost reimbursement A-E contracts and is also being revised and corrected where necessary as a result of this proposed rule. The matrix is provided in looseleaf format only.

   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.

2. Regulatory Flexibility Act

   This proposed rule is not expected to have a significant economic impact on a substantial number of small entities within the meaning of the Regulatory Flexibility Act, 5 U.S.C. 601, et seq., because the rule only corrects certain clause prescriptions and this correction will not bring about any increased costs to be borne by the contractor. An Initial Regulatory Flexibility Analysis has, therefore, not been performed. Comments from small entities concerning the affected FAR subpart will be considered in accordance with 5 U.S.C. 610 of the Act. Such comments must be submitted separately and should cite 5 U.S.C. 601, et seq. (FAR case 97-043), in correspondence.

3. Paperwork Reduction Act

   The Paperwork Reduction Act (44 U.S.C. 3501, et seq.) is deemed to apply because the proposed rule contains information collection requirements. The proposed rule requires use of the clause at FAR 52.249-6, Termination (Cost-Reimbursement), in cost-reimbursement contracts for architect-engineer services. The information collection requirements relating to termination clauses are covered by OMB Control No. 9000-0028.

   Annual Reporting Burden

   Public reporting burden for this collection of information is estimated to average 3 hours per response, including the time for reviewing instruction, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information.

   The annual reporting burden is estimated as follows: Respondents: 2,920; Responses per respondent: 1; Total annual responses: 2,920; Preparation hours per response: 3; Total response burden hours: 8,760; and Total recordkeeping hours: 2,920.

4. Request for Comments Regarding Paperwork Burden

   Members of the public are invited to comment on the recordkeeping and information collection requirements and estimates set forth above. Please send comments to: Office of Information and Regulatory Affairs, Office of Management and Budget, Attention: Mr. Peter N. Weiss, FAR Desk Officer, New Executive Office Building, Room 10102, 725 17th Street, NW., Washington, DC 20503.

   Also send a copy of any comments to the FAR Secretariat at the address shown under ADDRESSES. Please cite the corresponding OMB Clearance Number in all correspondence related to the estimate.

   List of Subjects in 48 CFR Parts 36, 44, 49, and 52

   Government procurement.

   Dated: December 22, 1998. Victoria Moss, Acting Director, Federal Acquisition Policy Division.

   Therefore, it is proposed that 48 CFR Parts 36, 44, 49, and 52 be amended as set forth below:

   1. The authority citation for 48 CFR Parts 36, 44, 49, 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 36--CONSTRUCTION AND ARCHITECT-ENGINEER CONTRACTS

      36.609-3 [Amended]

   2. Section 36.609-3 is amended by removing ``fixed-price'' and adding ``all'' in its place.

      36.609-4 [Amended]

   3. Section 36.609-4 is amended in the introductory paragraph by removing ``fixed-price''.

      PART 44--SUBCONTRACTING POLICIES AND PROCEDURES

      44.204 [Amended]

   4. Section 44.204 is amended in paragraph (b) by removing the words ``fixed-price''.

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      PART 49--TERMINATION OF CONTRACTS

   5. Section 49.503 is amended by revising paragraph (a)(1) to read as follows:

      49.503 Termination for convenience of the Government and default.

      (a) Cost-reimbursement contracts--(1) General use. The contracting officer shall insert the clause at 52.249-6, Termination (Cost- Reimbursement), in solicitations and contracts when a cost- reimbursement contract is contemplated, except contracts for research and development with an educational or nonprofit institution on a no- fee basis. * * * * *

      PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

   6. Section 52.236-25 is amended by revising the introductory text of the clause to read as follows:

      52.236-25 Requirements for Registration of Designers.

      As prescribed in 36.609-4, insert the following clause: * * * * *

      [FR Doc. 98-34367Filed12-28-98; 8:45 am]

      BILLING CODE 6820-EP-P