The Department of Defense, General Services Administration, and National Aeronautics and Space Administration today issued a proposed rule that would amend the Federal Acquisition Regulation to address the 2 percent tax on certain foreign procurements imposed by the James Zadroga 9/11 Health and Compensation Act of 2010 (PL 111-347). The Act imposes on any foreign person that receives a specified federal procurement payment a tax equal to two percent of the amount of the payment. The rule, Unallowability of Costs Associated With Foreign Contractor Excise Tax (FAR Case 2011-011), would revise the FAR to provide that the costs of the two percent tax are not allowable and are not included in foreign fixed-price contracts and foreign fixed-price contracts with foreign governments. Comments are due April 23, 2012. For the text of the Federal Register notice, click here: http://www.gpo.gov/fdsys/pkg/FR-2012-02-22/pdf/2012-3905.pdf.