DATE: August 11, 2000

FROM: Barry McVay, CPCM

SUBJECT: National Aeronautics and Space Administration Federal Acquisition Regulation (FAR) Supplement (NFS); Cost Accounting Standards Waivers

SOURCE: Federal Register, August 11, 2000, Vol. 65, No. 156, page 49205

AGENCIES: National Aeronautics and Space Administration (NASA)

ACTION: Interim Rule

SYNOPSIS: NASA is revising NFS 1830.201-5, Waiver, to identify who within NASA has the authority to approve Cost Accounting Standards (CAS) waivers.

EDITOR'S NOTE: The CAS are 19 standards which apply to large contractors performing large contracts. The CAS are in Chapter 99 of Title 48 of the Code of Federal Regulations (CFR) and are included as an appendix to the paper-version of the FAR for information purposes. They are available on the Internet at http://www.arnet.gov/far/97/html/appendix.html.

For more on Federal Acquisition Circular (FAC) 97-18, which revised Federal Acquisition Regulation (FAR) 30.201-5, Waiver, to implement the CAS waiver provisions of the National Defense Authorization Act for Fiscal Year 2000 (Public Law 106-65), see the June 6, 2000, FEDERAL CONTRACTS DISPATCH "Federal Acquisition Circular (FAC) 97-18, Miscellaneous Amendments."

DATES: The effective date of this interim rule is August 11, 2000. Comments on the interim rule should be submitted on or before October 10, 2000.

ADDRESSES: Submit comments to Joseph Le Cren, NASA Headquarters Office of Procurement, Contract Management Division (Code HK), Washington, DC 20546, by e-mail to joseph.lecren@hq.nasa.gov.

FOR FURTHER INFORMATION CONTACT: Joseph Le Cren, 202-358-0444.

SUPPLEMENTAL INFORMATION: On June 6, 2000, FAC 97-18 was published, and it included an interim rule on the applicability, thresholds, and waiver of CAS. FAR 30.201-5 was revised to authorize the head of the agency to waive CAS applicability if (1) "the contract or subcontract value is less than $15,000,000 and the segment of the contractor or subcontractor that will perform the contract or subcontract (i) is primarily engaged in the sale of commercial items; and (ii) has no contracts or subcontracts that are subject to CAS", or (2) "the head of the agency determines that exceptional circumstances exist whereby a waiver of CAS is necessary to meet the needs of the agency." The revised FAR 30.201-5 goes on to state that "the head of the agency (1) may waive the applicability of CAS for a particular contract or subcontract...and (2) must not delegate this waiver authority to any official in the agency below the senior contract policymaking level."

NASA is revising NFS 1830.201-5 to state that "the Associate Administrator for Procurement is the only individual authorized to approve CAS waivers", and it requires that requests for CAS waivers be submitted to the Headquarters Office of Procurement (Code HK) at least 30 days before the anticipated contract award date.

EDITOR'S NOTE: Also see the June 6, 2000, FEDERAL CONTRACTS DISPATCH "Defense Federal Acquisition Regulation Supplement (DFARS); Waiver of Cost Accounting Standards," for an similar interim rule that was published by the Department of Defense (DOD) to provide procedures for processing CAS waivers and clarifying which DOD components may grant CAS waivers.

FOR FURTHER INFORMATION CONTACT: Barry McVay at 703-451-5953 or by e-mail to BarryMcVay@FedGovContracts.com.

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