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Federal Register / Vol. 86, No. 186 / Wednesday, September 29, 2021 / Proposed Rules DoD invites comments from small business concerns and other interested parties on the expected impact of this rule on small entities.
DoD will also consider comments from small entities concerning the existing regulations in subparts affected by this rule in accordance with 5 U.S.C.
610. Interested parties must submit such comments separately and should cite 5
U.S.C. 610 DFARS Case 2017D018, in correspondence.
VII. Paperwork Reduction Act The Paperwork Reduction Act 44
U.S.C. chapter 35 applies. The rule contains information collection requirements that require the approval of the Office of Management and Budget OMB under the Paperwork Reduction Act 44 U.S.C. chapter 35. Accordingly, DoD plans to submit a request for approval of a new information collection requirement concerning DFARS Case 2017D018, Treatment of Incurred Independent Research and Development Costs, to OMB.

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A1. DFARS 231.20518ciiiA2iii Based on the proposed revisions to DFARS 231.20518ciiiA2iii, an upward adjustment is being made to the burden hours for reporting per response.
Public reporting burden for this collection of information is estimated to average 1 hour per response for submission of the confirming statement into DTIC that the chief executive officer of the contractor has made a determination that the expenditures will advance the needs of DoD future technology and advanced capability.
The annual reporting burden is estimated as follows:
Respondents: 69.
Responses per respondent: 90, approximately.
Total annual responses: 6,244.
Hours per response: 1.
Total annual burden hours: 6,244.
A2. DFARS 252.24270XX, Independent Research and Development and Bid and Proposal Incurred Costs Public reporting burden results from the collection of information regarding contractor submission of an annual report of IR&D and B&P costs incurred during performance of any DoD contract in the prior Government fiscal year.
Reports are required no later than December 31 each year. Approximately 0.25 hour per response is expected for the contractor to submit incurred IR&D
and B&P costs for the prior Government fiscal year to a website provided in the clause that DCAA can access. The annual reporting burden is estimated as follows:

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Respondents: 1,869.
Responses per respondent: 1.
Total annual responses: 1,869.
Hours per response: 0.25.
Total response Burden Hours: 467.
B. Request for Comments Regarding Paperwork Burden Written comments and recommendations on the proposed information collection, including suggestions for reducing this burden, should be sent to Ms. Susan Minson at the Office of Management and Budget, Desk Officer for DoD, Room 10236, New Executive Office Building, Washington, DC 20503, or email Susan_M_Minson@
omb.eop.gov, with a copy to the Defense Acquisition Regulations System, Attn:
David E. Johnson, OUSDA&SDPC/
DARS, Room 3B938, 3060 Defense Pentagon, Washington, DC 203013060.
Comments can be received from 30 to 60
days after the date of this notice, but comments to OMB will be most useful if received by OMB within 30 days after the date of this notice.
Public comments are particularly invited on: Whether this collection of information is necessary for the proper performance of functions of the DFARS, and will have practical utility; whether our estimate of the public burden of this collection of information is accurate, and based on valid assumptions and methodology; ways to enhance the quality, utility, and clarity of the information to be collected; and ways in which we can minimize the burden of the collection of information on those who are to respond, through the use of appropriate technological collection techniques or other forms of information technology.
To request more information on this proposed information collection or to obtain a copy of the proposal and associated collection instruments, please write to the Defense Acquisition Regulations System, Attn: David E.
Johnson, OUSDA&SDPC/DARS, Room 3B938, 3060 Defense Pentagon, Washington, DC 203013060, or email osd.dfars@mail.mil. Include DFARS
Case 2017D018 in the subject line of the message.
List of Subjects in 48 CFR Parts 225, 231, 242, and 252
Government procurement.
Jennifer D. Johnson, Editor/Publisher, Defense Acquisition Regulations System.

Therefore, 48 CFR parts 225, 231, 242, and 252 are proposed to be amended as follows:

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1. The authority citation for parts 225, 231, 242, and 252 continues to read as follows:

Authority: 41 U.S.C. 1303 and 48 CFR
chapter 1.

PART 225FOREIGN ACQUISITION
2. Amend section 225.73032 by revising paragraphs b and c to read as follows:

225.73032 Cost of doing business with a foreign government or an international organization.

b Costs not allowable under FAR
part 31 are not allowable in pricing FMS
contracts, except as noted in paragraphs c and e of this section.
c The limitations for all contractors described in 231.20518ciii and iv do not apply to FMS contracts, except as provided in 225.73035. The allowability of IR&D and B&P costs on contracts for FMS not wholly paid for from funds made available on a nonrepayable basis is limited to the contracts allocable share of the contractors total IR&D and total B&P
expenditures. In pricing contracts for such FMS
1 Use the best estimate of reasonable costs in forward pricing; and 2 Use actual expenditures, to the extent that they are reasonable, in determining final cost.

PART 231CONTRACT COST
PRINCIPLES AND PROCEDURES
3. Revise section 231.20518 to read as follows:

231.20518 Independent research and development and bid and proposal costs.

a Definitions. As used in this section Covered contract means a DoD prime contract for an amount exceeding the simplified acquisition threshold, except for a fixed-price contract without cost incentives. The term also includes a subcontract for an amount exceeding the simplified acquisition threshold, except for a fixed-price subcontract without cost incentives under such a prime contract.
Covered segment means a product division of the contractor that allocated more than $1,100,000 in independent research and development IR&D and bid and proposal B&P costs to covered contracts during the preceding fiscal year. In the case of a contractor that has no product divisions, the term means that contractor as a whole. A product division of the contractor that allocated less than $1,100,000 in IR&D and B&P

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