DATE: April 23, 2002

SUBJECT: Federal Acquisition Regulation (FAR); Compensation for Personal Services

SOURCE: Federal Register, April 23, 2002, Vol. 67, No. 78, page 19951

AGENCIES: Department of Defense (DOD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA)

ACTION: Proposed Rule

SYNOPSIS: It is proposed that FAR 31.205-6, Compensation for Personal Services, be amended to improve its clarity without changing its meaning.

DATES: Comments on the proposed rule must be submitted by June 24, 2002.

ADDRESSES: Submit comments to General Services Administration, FAR Secretariat (MVP), 1800 F Street, NW, Room 4035, ATTN: Laurie Duarte, Washington, DC 20405, or by e-mail to farcase.2001-008@gsa.gov. Cite FAR case 2001-008 in all correspondence related to this proposed rule.

FOR FURTHER INFORMATION CONTACT: Jeremy Olson, 202-501-3221.

SUPPLEMENTAL INFORMATION: The Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council have analyzed the cost principle at FAR 31.205-6 and have developed a proposal for clarifying most of it. The analysis excluded paragraph (j), which addresses pension costs; paragraph (k), which addresses deferred compensation other than pensions; and paragraph (o), which addresses postretirement benefits other than pensions. The Councils are planning to review these paragraphs later.

The proposed rule would revise FAR 31.205-6 as follows:

In addition, the proposed rule would add to FAR 31.001, Definitions, the following definition for "compensation for personal services": "all remuneration paid currently or accrued, in whatever form and whether paid immediately or deferred, for services rendered by employees to the contractor."

FOR FURTHER INFORMATION CONTACT: Panoptic Enterprises at 703-451-5953 or by e-mail to Panoptic@FedGovContracts.com.

Copyright 2002 by Panoptic Enterprises. All Rights Reserved.

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