OFFICE OF THE UNDER SECRETARY OF DEFENSE

3000 DEFENSE PENTAGON

WASHINGTON DC 2O301-3OOO

DP (DAR)

8 Sept, 1997

In reply refer to

DFARS Case: 95-D714

D. L. 97-0I9

MEMORANDUM FOR DEPUTY ASSISTANT SECRETARY OF THE AIR

FORCE (CONTRACTING), SAF/AQC

SUBJECT: Cost Principles

We have amended Part 231 of the Defense Federal Acquisition Regulation Supplement DFARS) to implement Section 7202 of the Federal Acquisition Streamlining Act of 1994 (Pub. L. 103-355). Section 7202 prohibits the expenditure of funds to assist any DoD contractor in preparing any material, report, lists, or analysis, with respect to the actual or projected economic or employment impact in a particular State or congressional district of an acquisition program for which all research, development, testing, and evaluation has not been completed.

This final DFARS rule is effective immediately and will be published in a future Defense Acquisition Circular.

Eleanor R. Spector Director, Defense Procurement

Attachment

cc: DSMC, Ft. Belvoir

From the Federal Register Online via GPO Access

DEPARTMENT OF DEFENSE

48 CFR Part 231

[DFARS Case 95-D714]

Defense Federal Acquisition Regulation Supplement; Cost Principles

AGENCY: Department of Defense (DoD).

ACTION: Final rule.

SUMMARY: The Director of Defense Procurement has issued a final rule amending the Defense Federal Acquisition Regulation Supplement (DRARS) to implement provisions of the Federal Acquisition Streamlining Act of 1994 pertaining to legislative lobbying costs.

EFFECTIVE DATES: September 8, 1997.

FOR FURTHER INFORMATION CONTACT:

Ms. Sandra G. Haberlin, PDUSD (A&T) DP (DAR), IMD 3D139, 3062 Defense Pentagon, Washington, DC 20301-3062. Telephone (703) 602-0131; telefax (703) 602-0350. Please cite DFARS Case 95-D714.

SUPPLEMENTARY INFORMATION:

A. Background

This final rule implements Section 7202 of the Federal Acquisition Streamlining Act of 1994 (Pub. L. 103-355). Section 7202 prohibits the expenditure of funds to assist any DoD contractor in preparing any material, report, list, or analysis, with respect to the actual or projected economic or employment impact in a particular State or congressional district of an acquisition program for which all research, development, testing, and evaluation has not been completed.A proposed rule was published on October 13, 1995 (60 FR 53320). No public comments were received. The final rule differs from the proposed rule by changing the statutory citation at 231.205-22 (a), 231.303(4), 231.603(2), and 231.703(2) from ``10 U.S.C. 2247’’ to ``10 U.S.C. 2249.’’ 10 U.S.C. 2247 was redesignated as 10 U.S.C. 2249 by Section 4321 of the National Defense Authorization Act for Fiscal Year 1996 (Public Law 104-106).

B. Regulatory Flexibility Act

The Department of Defense certifies that this final rule will not 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 most contracts awarded to small entities are awarded on a competitive fixed-price basis, and do not require application of the cost principle contained in this rule.

C. Paperwork Reduction Act

The Paperwork Reduction Act does not apply, because this final rule does not impose any reporting or recordkeeping requirements that require Office of Management and Budget approval under 44 U.S.C. 3501, et seq.

List of Subjects in 48 CFR Part 231

Government procurement.

Michele P. Peterson,Executive Editor, Defense Acquisition Regulations Council.

Therefore, 48 CFR Part 231 is amended as follows:

1. The authority citation for 48 CFR Part 231 continues to read as follows:

Authority: 41 U.S.C. 421 and 48 CFR Chapter 1.

PART 231--CONTRACT COST PRINCIPLES AND PROCEDURES

2. Section 231.205-22 is revised to read as follows:

231.205-22 Legislative lobbying costs.

(a) Preparing any material, report, list, or analysis on the actual or projected economic or employment impact in a particular State or congressional district of an acquisition program for which all research, development, testing, and evaluation has not been completed (10 U.S.C. 2249).

3. Section 231.303 is amended by adding paragraph (4) to read as follows:

231.303 Requirements.

* * * * *

(4) Under 10 U.S.C. 2249, the costs cited in 231.205-22(a) are unallowable.

4. Section 231.603 is amended by designating the existing text as paragraph (1), and by adding paragraph (2) to read as follows:

231.603 Requirements.

* * * * *

(2) Under 10 U.S.C. 2249, the costs cited in 231.205-22(a) are unallowable.

5. Section 231.703 is amended by designating the existing text as paragraph (1), and by adding paragraph (2) to read as follows:

231.703 Requirements.

* * * * *

(2) Under 10 U.S.C. 2249, the costs cited in 231.205-22(a) are unallowable.