[Federal Register: May 15, 2002 (Volume 67, Number 94)]
[Proposed Rules]
[Page 34809-34811]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr15my02-36]
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Part III
Department of Defense
General Services Administration
National Aeronautics and Space Administration
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48 CFR Part 31
Federal Acquisition Regulation; Training and Education Cost Principle;
Proposed Rule
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Part 31
[FAR Case 2001-021]
RIN 9000-AJ38
Federal Acquisition Regulation; Training and Education Cost
Principle
AGENCIES: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Proposed rule.
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SUMMARY: The Civilian Agency Acquisition Council and the Defense
Acquisition Regulations Council (Councils) are proposing to amend the
Federal Acquisition Regulation (FAR) ``Training and Education Costs''
cost principle.
DATES: Interested parties should submit comments in writing on or
before July 15, 2002 to be considered in the formulation of a final
rule.
ADDRESSES: Submit written comments to: General Services Administration,
FAR Secretariat (MVP), 1800 F Street, NW, Room 4035, ATTN: Laurie
Duarte, Washington, DC 20405.
Submit electronic comments via the Internet to: farcase.2001-
021@gsa.gov. Please submit comments only and cite FAR case 2001-021 in
all correspondence related to this case.
FOR FURTHER INFORMATION CONTACT: The FAR Secretariat, Room 4035, GS
Building, Washington, DC, 20405, at (202) 501-4755 for information
pertaining to status or publication schedules. For clarification of
content, contact Mr. Jeremy Olson at (202) 501-3221. Please cite FAR
case 2001-021.
SUPPLEMENTARY INFORMATION:
A. Background
Currently, FAR 31.205-44, Training and education costs, is somewhat
restrictive in that the cost principle--
Differentiates between vocational training, part-time
college level education, full-time education, and specialized programs
with numerous specific limitations on the allowability of costs
associated with each of these categories. Historically, most of these
specific allowability limitations were intended to reflect industry
practices, e.g., the 156 hours per year limit on compensation for part-
time college level education, the 2-year limitation on full-time
graduate education, and the 16 weeks per year limit for specialized
programs; and
Requires full-time education courses or degrees be
``related to the field in which the employee is working or may
reasonably be expected to work.'' The Councils propose to eliminate the
current or future job relationship requirement since the associated
costs represent minimal risk to the Government; and the standard is
difficult to enforce, and counter to Government initiatives supporting
upward mobility, job retraining, and educational advancement.
The proposed rule makes the costs associated with training and
education generally allowable, subject to five public policy exceptions
that are retained from the current cost principle. Except for these
five expressly unallowable cost exceptions, the reasonableness of
specific contractor training and education costs can best be assessed
by reference to FAR 31.201-3, Determining reasonableness.
This is not a significant regulatory action and, therefore, was not
subject to review under Section 6(b) of Executive Order 12866,
Regulatory Planning and Review, dated September 30, 1993. This rule is
not a major rule under 5 U.S.C. 804.
B. Regulatory Flexibility Act
The Councils do 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.,
because most contracts awarded to small entities use simplified
acquisition procedures or are awarded on a competitive, fixed-price
basis, and do not require application of the cost principle discussed
in this rule. An Initial Regulatory Flexibility Analysis has,
therefore, not been performed. We invite comments from small businesses
and other interested parties. The Councils will consider comments from
small entities concerning the affected FAR Part 31 in accordance with 5
U.S.C. 610. Interested parties must submit such comments separately and
should cite 5 U.S.C. 601, et seq. (FAR case 2001-021), in
correspondence.
C. Paperwork Reduction Act
The Paperwork Reduction Act does not apply because the proposed
changes to the FAR do not impose information collection requirements
that require the approval of the Office of Management and Budget under
44 U.S.C. 3501, et seq.
List of Subjects in 48 CFR Part 31
Government procurement.
Dated: May 9, 2002.
Al Matera,
Director, Acquisition Policy Division.
Therefore, DoD, GSA, and NASA propose amending 48 CFR part 31 as
set forth below:
PART 31--CONTRACT COST PRINCIPLES AND PROCEDURES
1. The authority citation for 48 CFR part 31 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).
2. Revise section 31.205-44 to read as follows:
31.205-44 Training and education costs.
Training and education costs are allowable, except as follows:
(a) Overtime compensation for training and education is
unallowable.
(b)(1) Full-time college level education. Costs of tuition, fees,
training materials and textbooks, subsistence, salary, and any other
emoluments in connection with full-time college level education,
including that provided at the contractor's own facilities, are
unallowable at--
(i) An undergraduate level; and
(ii) A postgraduate level, except where the course or degree
pursued is related to the field in which the employee is working or may
reasonably be expected to work and is limited to a total period not to
exceed 2 school years or the length of the degree program, whichever is
less, for each employee so trained.
(2) Part-time college level education. The cost of salaries for
attending undergraduate or graduate level classes on a part-time basis
is unallowable, except for attending such classes during working hours
where circumstances do not permit attendance at these classes before or
after regular working hours.
(c) Grants to educational or training institutions, including the
donation of facilities or other properties, scholarships, and
fellowships, are considered contributions and are unallowable.
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(d) Training or education costs for other than bona fide employees
are unallowable, except that the costs incurred for educating employee
dependents (primary and secondary level studies) when the employee is
working in a foreign country where suitable public education is not
available may be included in overseas differential pay.
(e) Costs of college plans for employee dependents are unallowable.
[FR Doc. 02-12079 Filed 5-14-02; 8:45 am]
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