Rule2023-05674
Defense Federal Acquisition Regulation Supplement: Contract Administration Office Functions Relating to Direct Costs (DFARS Case 2022-D021)
Primary source
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Published
March 22, 2023
Effective
March 22, 2023
Issuing agencies
Defense DepartmentDefense Acquisition Regulations System
Abstract
DoD is issuing a final rule amending the Defense Federal Acquisition Regulation Supplement (DFARS) to clarify when a contract administration office has authority to negotiate and settle direct costs questioned in incurred cost audits.
Full Text
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<title>Federal Register, Volume 88 Issue 55 (Wednesday, March 22, 2023)</title>
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[Federal Register Volume 88, Number 55 (Wednesday, March 22, 2023)]
[Rules and Regulations]
[Pages 17354-17355]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-05674]
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DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System
48 CFR Part 242
[Docket DARS-2023-0007]
RIN 0750-AL69
Defense Federal Acquisition Regulation Supplement: Contract
Administration Office Functions Relating to Direct Costs (DFARS Case
2022-D021)
AGENCY: Defense Acquisition Regulations System, Department of Defense
(DoD).
ACTION: Final rule.
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SUMMARY: DoD is issuing a final rule amending the Defense Federal
Acquisition Regulation Supplement (DFARS) to clarify when a contract
administration office has authority to negotiate and settle direct
costs questioned in incurred cost audits.
DATES: Effective March 22, 2023.
FOR FURTHER INFORMATION CONTACT: David E. Johnson, telephone 202-913-
5764.
SUPPLEMENTARY INFORMATION:
I. Background
DoD is issuing a final rule to amend the DFARS by adding to section
242.302(b) an additional contract administrative function delegable
from a procuring contracting office to a contract administration
office. DFARS 242.302(b) specifies functions performed by the contract
administration office ``only when and to the extent specifically
authorized'' by the procuring contracting office, as stated in Federal
Acquisition Regulation (FAR) 42.302. Any administrative functions
unspecified under FAR 42.302 or DFARS 242.302, and not otherwise
delegated, remain the responsibility of the procuring contracting
office. This
[[Page 17355]]
rule explicitly allows delegation of authority from the procuring
contracting office to the Government contract administration office to
negotiate and settle direct costs questioned in incurred cost audits.
II. Publication of This Final Rule for Public Comment Is Not Required
by Statute
The statute that applies to the publication of the FAR is 41 U.S.C.
1707, Publication of Proposed Regulations. Subsection (a)(1) of the
statute requires that a procurement policy, regulation, procedure, or
form (including an amendment or modification thereof) must be published
for public comment if it relates to the expenditure of appropriated
funds, and has either a significant effect beyond the internal
operating procedures of the agency issuing the policy, regulation,
procedure, or form, or has a significant cost or administrative impact
on contractors or offerors. This final rule is not required to be
published for public comment, because it merely involves assignment
among DoD agencies of an existing contract administrative function.
This rule does not have a significant cost or administrative impact on
contractors or offerors, and it does not have a significant effect
beyond DoD's internal operating procedures.
III. Applicability to Contracts at or Below the Simplified Acquisition
Threshold, for Commercial Services, and for Commercial Products,
Including Commercially Available Off-the-Shelf Items
This rule does not create any new solicitation provisions or
contract clauses. It does not impact any existing solicitation
provisions or contract clauses or prescriptions for their use.
IV. 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.
V. Congressional Review Act
As required by the Congressional Review Act (5 U.S.C. 801-808)
before an interim or final rule takes effect, DoD will submit a copy of
the interim or final rule with the form, Submission of Federal Rules
under the Congressional Review Act, to the U.S. Senate, the U.S. House
of Representatives, and the Comptroller General of the United States. A
major rule under the Congressional Review Act cannot take effect until
60 days after it is published in the Federal Register. The Office of
Information and Regulatory Affairs has determined that this rule is not
a major rule as defined by 5 U.S.C. 804.
VI. Regulatory Flexibility Act
The Regulatory Flexibility Act does not apply to this rule because
this final rule does not constitute a significant DFARS revision within
the meaning of FAR 1.501-1, and 41 U.S.C. 1707 does not require
publication for public comment.
VII. Paperwork Reduction Act
This rule does not contain any 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).
List of Subjects in 48 CFR Part 242
Government procurement.
Jennifer D. Johnson,
Editor/Publisher, Defense Acquisition Regulations System.
Therefore, 48 CFR part 242 is amended as follows:
PART 242--CONTRACT ADMINISTRATION AND AUDIT SERVICES
0
1. The authority citation for 48 CFR part 242 continues to read as
follows:
Authority: 41 U.S.C. 1303 and 48 CFR chapter 1.
0
2. Amend section 242.302 by adding paragraph (b)(S-71) to read as
follows:
242.302 Contract administration functions.
* * * * *
(b) * * *
(S-71)(A) Except for classified contracts, negotiate or settle
questioned direct costs in an incurred cost audit. The procuring
contracting officer may delegate this authority to the contract
administration office (CAO) only upon prior coordination and agreement
with the CAO. Upon such delegation, the procuring contracting officer
shall provide the CAO access within 30 days to all supporting
documentation in their possession related to the questioned direct
costs in an incurred cost audit.
(B) After settlement of the questioned direct costs, the CAO shall
provide the procuring contracting office the results of the settlement.
The procuring contracting office shall make any adjustments resulting
from the settlement on affected contracts and report such adjustments
to the CAO.
[FR Doc. 2023-05674 Filed 3-21-23; 8:45 am]
BILLING CODE 5001-06-P
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</html>Indexed from Federal Register on March 22, 2023.
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