Defense Federal Acquisition Regulation Supplement; Forward Pricing Rate Proposal Adequacy Checklist (DFARS Case 2012-D035)
Federal Register, Volume 78 Issue 95 (Thursday, May 16, 2013)
Federal Register Volume 78, Number 95 (Thursday, May 16, 2013)
Proposed Rules
Pages 28790-28793
From the Federal Register Online via the Government Printing Office www.gpo.gov
FR Doc No: 2013-11402
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DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System
48 CFR Part 215
RIN 0750-AH86
Defense Federal Acquisition Regulation Supplement; Forward Pricing Rate Proposal Adequacy Checklist (DFARS Case 2012-D035)
AGENCY: Defense Acquisition Regulations System, Department of Defense (DoD).
ACTION: Proposed rule.
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SUMMARY: DoD is proposing to amend the Defense Federal Acquisition Regulation Supplement (DFARS) to provide guidance to contractors for the submittal of forward pricing rate proposals to ensure the adequacy of forward pricing rate proposals submitted to the Government.
DATES: Comments on the proposed rule should be submitted in writing to the address shown below on or before July 15, 2013, to be considered in the formation of the final rule.
ADDRESSES: Submit comments, identified by DFARS Case 2012-D035, using any of the following methods:
Regulations.gov: http://www.regulations.gov. Submit comments via the Federal eRulemaking portal by inserting ``DFARS Case 2012-D035'' under the heading ``Enter keyword or ID'' and selecting ``Search.'' Select the link ``Submit a Comment'' that corresponds with ``DFARS Case 2012-D035.'' Follow the instructions provided at the ``Submit a Comment'' screen. Please include your name, company name (if any), and ``DFARS Case 2012-D035'' on your attached document. Follow the instructions for submitting comments.
Email: dfars@osd.mil. Include DFARS Case 2012-D035 in the subject line of the message.
Fax: 571-372-6094.
Mail: Defense Acquisition Regulations System, Attn: Mr. Mark Gomersall, OUSD(AT&L)DPAP(DARS), Room 3B855, 3060 Defense Pentagon, Washington, DC 20301-3060.
Comments received generally will be posted without change to http://www.regulations.gov, including any personal information provided. To confirm receipt of your comment(s), please check www.regulations.gov approximately two to three days after submission to verify posting (except allow 30 days for posting of comments submitted by mail).
FOR FURTHER INFORMATION CONTACT: Mr. Mark Gomersall, 571-372-6099.
SUPPLEMENTARY INFORMATION:
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Background
DoD is proposing to revise the DFARS at 215.403-5 by adding instructions to contracting officers to request contractors to submit the proposed forward pricing rate proposal adequacy checklist at Table 215-XX with forward pricing rate proposals. This proposed rule provides guidance to contractors for the submittal of forward pricing rate proposals by requesting that contractors submit a proposed forward pricing rate proposal adequacy checklist with their forward pricing rate proposals to ensure submission of thorough, accurate, and complete proposals.
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Executive Orders 12866 and 13563
Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess all costs and benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits (including potential economic, environmental, public health and safety effects, distributive impacts, and equity). E.O. 13563 emphasizes the importance of quantifying both costs and benefits, of reducing costs, of harmonizing rules, and of promoting flexibility. This is not a significant regulatory action and, therefore, was not subject to review under section 6(b) of E.O. 12866, Regulatory Planning and Review, dated September 30, 1993. This rule is not a major rule under 5 U.S.C. 804.
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Regulatory Flexibility Act
DoD does not expect this proposed rule 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. However, an initial regulatory flexibility analysis has been performed and is summarized as follows:
This rule amends the DFARS at 215.403-5 by adding instructions to contracting officers to request contractors to submit the proposed forward pricing rate proposal adequacy checklist with forward pricing rate proposals. The objective is to provide guidance to contractors for the submittal of forward pricing rate proposals.
DoD does not expect this proposed rule to have a significant economic impact on a substantial number of small because it only a small percentage of Government contractors are requested to submit a forward pricing rate proposal, as set forth at FAR 42.1701(a). The Government will ask only those contractors with a significant volume of Government contracts to submit such proposals.
The proposed rule does not duplicate, overlap, or conflict with any other Federal rules.
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Paperwork Reduction Act
The rule contains information collection requirements that require the approval of the Office of Management and Budget under the Paperwork Reduction Act (44 U.S.C. chapter 35). Accordingly, DoD has submitted a request for approval of a new information collection requirement concerning Defense Federal Acquisition Regulation Supplement; Forward Pricing Rate Proposal Adequacy Checklist (DFARS Case 2012-D035) to the Office of Management and Budget.
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Public reporting burden for this collection of information is estimated to average 4 hours per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information.
The annual reporting burden estimated as follows:
Respondents: 160.
Responses per respondent: 1.
Total annual responses: 160.
Preparation hours per response: 4 hours
Total response Burden Hours: 640 hours.
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Request for Comments Regarding Paperwork Burden.
Written comments and recommendations on the proposed information collection, including suggestions for reducing this burden, should be sent to Ms. Jasmeet Seehra at the Office of Management and Budget, Desk Officer for DoD, Room 10236, New Executive Office Building, Washington,
Page 28791
DC 20503, or email Jasmeet_K._Seehra@omb.eop.gov, with a copy to the Defense Acquisition Regulations System, Attn: Mark Gomersall, OUSD(AT&L)DPAP/DARS, Room 3B855, 3060 Defense Pentagon, Washington, DC 20301-3060. Comments can be received from 30 to 60 days after the date of this notice, but comments to OMB will be most useful if received by OMB within 30 days after the date of this notice.
Public comments are particularly invited on: whether this collection of information is necessary for the proper performance of functions of the DFARS, and will have practical utility; whether our estimate of the public burden of this collection of information is accurate, and based on valid assumptions and methodology; ways to enhance the quality, utility, and clarity of the information to be collected; and ways in which we can minimize the burden of the collection of information on those who are to respond, through the use of appropriate technological collection techniques or other forms of information technology.
To request more information on this proposed information collection or to obtain a copy of the proposal and associated collection instruments, please write to the Defense Acquisition Regulations System, Attn: Mark Gomersall, OUSD(AT&L)DPAP/DARS, Room 3B855, 3060 Defense Pentagon, Washington, DC 20301-3060, or email dfars@osd.mil. Include DFARS Case 2012-D035 in the subject line of the message.
List of Subjects in 48 CFR Part 215
Government procurement.
Manuel Quinones,
Editor, Defense Acquisition Regulations System.
Therefore, DoD proposes to amend 48 CFR part 215 as follows:
PART 215--CONTRACTING BY NEGOTIATION
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1. The authority citation for part 215 continues to read as follows:
Authority: 41 U.S.C. 1303 and 48 CFR chapter 1.
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2. Add 215.403-5 to read as follows:
215.403-5 Instructions for submissions of certified cost or pricing data or data other than cost or pricing data pursuant to the procedures in FAR 42.1701(b).
(b)(3) For contractors following the commercial contract cost principles in FAR 31.2, if the contracting officer determines that a forward pricing rate proposal should be obtained pursuant to FAR 42.1701, the contracting officer shall require that the forward pricing rate proposals comply with FAR 15.408, Table 15-2, and DFARS 252.215-
7002. The contracting officer should request that the proposal be submitted to the Government at least 90 days prior to the implementation date for the proposed rates. To ensure the proposal is complete, the contracting officer shall request the contractor complete the contractor forward pricing rate proposal adequacy checklist at Table 215-XX, and submit it with the forward pricing rate proposal.
Table 215-XX--Contractor Forward Pricing Rate Proposal Adequacy Checklist
The contractor should complete the following checklist, providing location of requested information, or an explanation of why the requested information is absent.
Contractor Forward Pricing Rate Proposal Adequacy Checklist
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Proposal page If not provided EXPLAIN
References Submission item No. (may use continuation pages)
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GENERAL INSTRUCTIONS
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1. FAR 15.408, Table 15-2, Is there a properly completed
Section I.A. first page of the proposal
or a summary format as
specified by the contracting
officer?
2. FAR 15.407-1 and FAR 15.408, Does the proposal disclose
Table 15-2, Section I.A.(8). known or anticipated changes
in business activities or
processes that could
materially impact the costs
(if not previously
provided)? For example:
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Management initiatives
to reduce costs;
Changes in management
objectives as a result of
economic conditions and
increased
competitiveness;
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Changes in accounting
policies, procedures, and
practices including:
(i) reclassification of
expenses from direct to
indirect or vice versa;
(ii) new methods of
accumulating and
allocating indirect costs
and the related impact
and
(iii) advance agreements;
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Company reorganizations
(including acquisitions
or divestitures);
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Shutdown of facilities;
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Changes in business
volume and/or contract
mix/type.
3. FAR 15.408, Table 15-2, Does the proposal include a
Section I.B. table of contents (index)
identifying and referencing
all supporting data
accompanying or identified
in the proposal?
4. DFARS 252.215-7002(d)(4)(iv). For supporting documentation
not provided with the
proposal, does the basis of
estimate in the proposal
include the location of the
documentation and the point
of contact (custodian) name,
phone number, and email
address?
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5. FAR 15.408, Table 15-2, Is the proposal
Section I.C.(2)(i). mathematically correct and
does it reconcile to the
supporting data referenced?
6. FAR 15.408, Table 15-2, Do proposed costs based on
Section I.C.(2)(i) and DFARS judgmental factors include
252.215-7002(d)(4)(iv). an explanation of the
estimating processes and
methods used; including
those used in projecting
from known data?
7. FAR 15.408, Table 15-2, Is the proposal internally
Section I.D. consistent (for example, is
the direct labor base used
for labor overhead
consistent with direct labor
in the G&A allocation base)?
8. FAR 15.408, Table 15-2. Does the proposal show trends
Section II.C. and DFARS 252.215- and budgetary data? Is an
7002(d)(4)(iv). explanation of how the data
was used provided, including
any adjustments to the data?
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Direct Labor
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9. FAR 15.408, Table 15-2, Does the proposal include an
Section II.B. explanation of the
methodology used to develop
the direct labor rates and
identify the basis of
estimate?
10. DFARS 252.215(d)(4)(iv)..... Does the proposal include or
identify the location of the
supporting documents for the
base-year labor rates (e.g.,
payroll records)?
11. FAR 15.408 Table 15-2, Does the proposal identify
Section I.C(2)(i); DFARS escalation factors for the
252.215-7002(d)(4)(iv). out years, the costs to
which escalation is
applicable, and the basis of
the factors used?
12. FAR 15.407-1................ Does the proposal identify
planned or anticipated
changes in the composition
of labor rates, labor
categories, union
agreements, headcounts, or
other factors that could
significantly impact the
direct labor rates?
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Indirect Rates (Fringe, Overhead, G&A, etc.)
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13. FAR 15.408, Table 15-2, Does the proposal identify
Section II.C. the basis of estimate and
provide an explanation of
the methodology used to
develop the indirect rates?
14. FAR 15.408, Table 15-2, Does the proposal include or
Section I.B. identify the location of the
supporting documents for the
proposed rates?
15. FAR 15.408 Table 15-2, Does the proposal identify
Section I.D. indirect expenses by burden
center, by cost element, by
year (including any
voluntary deletions, if
applicable) in a format that
is consistent with the
accounting system used to
accumulate actual expenses?
16. FAR 15.408, Table 15-2, Does the proposal identify
Section I.C.(2)(ii). any contingencies?
17. FAR 15.407-1................ Does the proposal identify
planned or anticipated
changes in the nature, type
or level of indirect costs,
including fringe benefits?
18. DFARS 252.215-7002(d)(4)(iv) Does the proposal identify
corporate, home office,
shared services, or other
incoming allocated costs and
the source for those costs,
including location and point
of contact (custodian) name,
phone number, and email
address?
19. FAR 15.408 Table 15-2, Does the proposal separately
Section II.C.; DFARS 252.215- identify all intermediate
7002(d)(4)(iv). cost pools and provide a
reconciliation to show where
the costs were allocated?
20. FAR 15.408 Table 15-2, Does the proposal identify
Section I.C(2)(i); DFARS the escalation factors for
252.215-7002(d)(4)(iv). the out years, the costs to
which escalation is
applicable, and the basis of
the factors used?
21.DFARS 252.215-7002(d)(4)(iv). Does the proposal provide
appropriate details of the
development of the
allocation base?
22. FAR 15.408 Table 15-2, Does the proposal include or
Section I.B., DFARS 252.215- reference the supporting
7002(d)(4)(xi). data for the allocation base
such as program budgets,
negotiation memorandums,
proposals, contract values,
etc.?
23. DFARS 252.215-7002(d)(4)(xi) Does the proposal identify
how the proposed allocation
base reconciles with its
long range plans, strategic
plan, operating budgets,
sales forecasts, program
budgets, etc.?
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Cost of Money (COM)
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24. FAR 15.408, Table 15-2, Are Cost of Money rates
Section II.F. submitted on Form CASB-CMF,
with the Treasury Rate used
to compute COM identified
and a summary of the net
book value of assets,
identified as distributed &
non-distributed?
25. DFARS 252.215-7002(d)(4)(iv) Does the proposal identify
the support for the Form
CASB-CMF, for example, the
underlying reports and
records supporting the net
book value of assets
contained in the form?
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OTHER
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26. DFARS 252.215- Does the proposal include a
7002(d)(4)(xiii). comparison of prior
forecasted costs to actual
results in the same format
as the proposal and an
explanation/analysis of any
differences?
27. DFARS 252.215- If this is a revision to a
7002(d)(4)(xiv). previous rate proposal or an
FPRA, does the new proposal
provide a summary of the
changes in the circumstances
or the facts that the
contractor asserts require
the change to the rates?
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FR Doc. 2013-11402 Filed 5-15-13; 8:45 am
BILLING CODE 5001-06-P
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