IV. Regulatory Flexibility Act

DoD has prepared a final regulatory flexibility analysis consistent with 5 U.S.C. 604. A copy of the analysis may be obtained from the individual specified herein. The analysis is summarized as follows:

The objective of the rule is to set forth cost and software data reporting (CSDR) system reporting requirements that are essential for DoD to estimate the cost of current and future weapon systems. The data are also very useful in performing contract price analysis, comparing prices of similar systems, and for capturing contractor-provided cost estimates in standard formats to facilitate comparison across several contractors.

The rule will apply to DoD major defense acquisition program (MDAP) and major automated information system (MAIS) contractors. Due to the magnitude of these major programs, most small businesses are not MDAP or MAIS contractors. DoD solicited comments from small entities and other interested parties (proposed rule at 75 FR 25165). No comments were received from small entities on the impact of this rule and none of the comments was in response to the initial regulatory flexibility analysis. Therefore, there is no change to the rule in this regard.

This final rule sets forth existing DoD CSDR requirements for weapon system programs for proposal submission and contract performance.

During the proposal process, in response to solicitations, offerors are required to--

Describe the standard CSDR process to be used to satisfy the requirements of the CSDR Manual, DoD 5000.04-M-1, and the Government approved CSDR plan, DD Form 2794, and the related Resource Distribution Table (RDT);

Provide comments on the adequacy of the CSDR contract plan, and the related RDT contained in the solicitation; and,

Submit with their pricing proposal: DD Form 1921, Cost Data Summary Report, and DD Form 1921-1, Functional Cost-Hour Report.

During contract performance, the contractor will be required to--

Utilize a documented CSDR process that satisfies the guidelines contained in the DoD 5000.04-M-1, CSDR Manual;

Use management procedures that provide for generation of timely and reliable information for the two principal components of the CSDR system: Contractor cost data reports and software resources data reports;

Use the Government-approved contract CSDR plan, DD Form 2794, with the related RDT; and

Require subcontractors, or subcontracted effort if subcontractors have not been selected, to comply with the CSDR requirements.

This final rule is not expected 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., as most MDAP and MAIS contractors are large businesses. For reporting, contractors are expected to use standard and readily available electronic software applications such as electronic spreadsheets (e.g., MS-Excel[supreg]) or word processing formats (e.g., MS-Word[supreg]) to show the necessary mapping from their accounting systems into the standard CCDR formats.