DPN20181031
[Federal Register Volume 83, Number 211 (Wednesday, October 31, 2018)]
[Rules and Regulations]
[Pages 54676-54677]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-23678]
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DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System
48 CFR Parts 211 and 252
[Docket DARS-2018-0048]
RIN 0750-AJ95
Defense Federal Acquisition Regulation Supplement: Repeal of
DFARS Clause ``Acquisition Streamlining'' (DFARS Case 2018-D033)
AGENCY: Defense Acquisition Regulations System, Department of Defense
(DoD).
ACTION: Final rule.
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SUMMARY: DoD is issuing a final rule amending the Defense Federal
Acquisition Regulation Supplement (DFARS) to remove a clause that is no
longer necessary.
DATES: Effective October 31, 2018.
FOR FURTHER INFORMATION CONTACT: Ms. Carrie Moore, telephone 571-372-
6093.
SUPPLEMENTARY INFORMATION:
I. Background
DoD is amending the DFARS to remove DFARS clause 252.211-7000,
Acquisition Streamlining, and the associated clause prescription at
DFARS 211.002-70. This clause is included in all solicitations and
contracts for systems acquisition programs and requires contractors to:
Prepare acquisition streamlining recommendations in accordance with the
performance work statement; format and submit the recommendations in
accordance with the contract data requirements list of the contract;
and include the clause in all subcontracts valued over $1.5 million
that are awarded in the performance of the contract. DoD may accept,
modify, or reject the contractor's recommendations.
This clause was added to the DFARS to implement a requirement of
DoD Directive (DoDD) 5000.43, Acquisition Streamlining. DoDD 5000.43
has been cancelled and replaced by DoD Instruction 5000.02, Operation
of the Defense Acquisition System, which requires contractors to submit
acquisition streamlining recommendations. Additionally, Federal
Acquisition Regulation (FAR) subpart 7.1, Acquisition Plans, already
includes acquisition streamlining and industry engagement as
considerations to be made when preparing a written acquisition plan. As
the implementing DoDD has been cancelled and FAR subpart 7.1 addresses
acquisition streamlining, this DFARS clause is unnecessary and can be
removed.
The removal of this DFARS text supports a recommendation from the
DoD Regulatory Reform Task Force. On February 24, 2017, the President
signed Executive Order (E.O.) 13777, ``Enforcing the Regulatory Reform
Agenda,'' which established a Federal policy ``to alleviate unnecessary
regulatory burdens'' on the American people. In accordance with E.O.
13777, DoD established a Regulatory Reform
[[Page 54677]]
Task Force to review and validate DoD regulations, including the DFARS.
A public notice of the establishment of the DFARS Subgroup to the DoD
Regulatory Reform Task Force, for the purpose of reviewing DFARS
provisions and clauses, was published in the Federal Register at 82 FR
35741 on August 1, 2017, and requested public input. The following
public comment was received on this clause:
Comment: The respondent states that the clause is ineffective,
because a contractor who has already been awarded a contract may have a
vested interest in preserving the contract, as awarded, and may not be
the best source for innovation. Instead, the respondent suggests that
targeted surveys sent to both successful and unsuccessful offerors
after award may be more effective than a mandatory clause for a single
awardee.
Response: DoD will continue to encourage industry participation
during the design and development of contract requirements and through
other methods.
The DoD Task Force reviewed the requirements of DFARS clause
252.211-7000, Acquisition Streamlining, and determined that the DFARS
coverage was unnecessary and recommended removal.
II. Applicability to Contracts at or Below the Simplified Acquisition
Threshold and for Commercial Items, Including Commercially Available
Off-the-Shelf Items
This rule only removes obsolete DFARS clause 252.211-7000,
Acquisition Streamlining. Therefore, the rule does not impose any new
requirements on contracts at or below the simplified acquisition
threshold and for commercial items, including commercially available
off-the-shelf items.
III. Publication of This Final Rule for Public Comment Is Not Required
by Statute
The statute that applies to the publication of the FAR is the
Office of Federal Procurement Policy statute (codified at title 41 of
the United States Code). Specifically, 41 U.S.C. 1707(a)(1) requires
that a procurement policy, regulation, procedure, or form (including an
amendment or modification thereof) must be published for public comment
if it relates to the expenditure of appropriated funds, and has either
a significant effect beyond the internal operating procedures of the
agency issuing the policy, regulation, procedure, or form, or has a
significant cost or administrative impact on contractors or offerors.
This final rule is not required to be published for public comment,
because DoD is not issuing a new regulation; rather, this rule merely
removes an obsolete requirement from the DFARS.
IV. Executive Orders 12866 and 13563
E.O. 12866, Regulatory Planning and Review, and E.O. 13563,
Improving Regulation and Regulatory Review, direct agencies to assess
all costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health and safety effects, distributive impacts, and equity). E.O.
13563 emphasizes the importance of quantifying both costs and benefits,
of reducing costs, of harmonizing rules, and of promoting flexibility.
The Office of Management and Budget, Office of Information and
Regulatory Affairs, has determined that this is not a significant
regulatory action as defined under section 3(f) of E.O. 12866 and,
therefore, was not subject to review under section 6(b). This rule is
not a major rule as defined at 5 U.S.C. 804(2).
V. Executive Order 13771
This rule is not an E.O. 13771 regulatory action, because this rule
is not significant under E.O. 12866.
VI. Regulatory Flexibility Act
Because a notice of proposed rulemaking and an opportunity for
public comment are not required to be given for this rule under 41
U.S.C. 1707(a)(1) (see section III. of this preamble), the analytical
requirements of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.)
are not applicable. Accordingly, no regulatory flexibility analysis is
required, and none has been prepared.
VII. Paperwork Reduction Act
The rule does not contain any information collection requirements
that require the approval of the Office of Management and Budget under
the Paperwork Reduction Act (44 U.S.C. chapter 35).
List of Subjects in 48 CFR Parts 211 and 252
Government procurement.
Jennifer Lee Hawes,
Regulatory Control Officer, Defense Acquisition Regulations System.
Therefore, 48 CFR parts 211 and 252 are amended as follows:
0
1. The authority citation for 48 CFR parts 211 and 252 continues to
read as follows:
Authority: 41 U.S.C. 1303 and 48 CFR chapter 1.
PART 211--DESCRIBING AGENCY NEEDS
211.002-70 [Removed]
0
2. Remove section 211.002-70.
PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
252.211-7000 [Removed and Reserved]
0
3. Remove and reserve section 252.211-7000.
[FR Doc. 2018-23678 Filed 10-30-18; 8:45 am]
BILLING CODE 5001-06-P
Rules and Regulations]
[Pages 54677-54679]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-23673]
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DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System
48 CFR Part 219 and Appendix I to Chapter 2
[Docket DARS-2018-0019]
RIN 0750-AJ25
Defense Federal Acquisition Regulation Supplement: Mentor-Protege
Program Modifications (DFARS Case 2017-D016)
AGENCY: Defense Acquisition Regulations System, Department of Defense
(DoD).
ACTION: Final rule.
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SUMMARY: DoD is issuing a final rule amending the Defense Federal
Acquisition Regulation Supplement (DFARS) to implement sections of the
National Defense Authorization Act for Fiscal Year 2017 that provide
modifications to the DoD Pilot Mentor-Prot[eacute]g[eacute] Program.
DATES: Effective October 31, 2018.
FOR FURTHER INFORMATION CONTACT: Ms. Jennifer D. Johnson, telephone
571-372-6100.
SUPPLEMENTARY INFORMATION:
I. Background
DoD published a proposed rule in the Federal Register at 83 FR
19677 on May 4, 2018, to implement section 1823 and paragraph (b) of
section 1813 of the National Defense Authorization Act (NDAA) for
Fiscal Year (FY) 2017. Sections 1823 and 1813 provide modifications to
the DoD Pilot Mentor-Prot[eacute]g[eacute] Program (``the Program'').
Section 1823 revises the definition and
[[Page 54678]]
requirements associated with affiliation between mentor firms and their
prot[eacute]g[eacute] firms. Both sections add new types of assistance
for mentor firms to provide to their prot[eacute]g[eacute] firms.
II. Discussion and Analysis
One respondent submitted a public comment in response to the
proposed rule. DoD reviewed the public comment in the development of
the final rule.
A. Summary of Significant Changes From the Proposed Rule
There are no changes made to the final rule as a result of the
public comment.
B. Analysis of Public Comments
Comment: The respondent recommended a change to the proposed text
in Appendix I, section I-107, paragraph (h). Specifically, the
respondent proposed limiting the assistance to be provided by the
mentor firm regarding Federal contract regulations to ``guidance in
obtaining training to enable understanding Federal contract
regulations'' instead of ``assistance the mentor will provide to the
prot[eacute]g[eacute] firm in understanding Federal contract
regulations'' as stated in the proposed rule. The rationale was that
the text in the proposed rule could potentially expose the mentor firm
to liability when inevitable misunderstandings occur due to the
complexity of the regulations.
Response: In drafting the text of I-107 paragraph (h), DoD used
language that was very close to the text of section 1813 of the NDAA
for FY 2017. The statutory language and, consequently, the draft DFARS
text add to the mentor-prot[eacute]g[eacute] agreement an element in
which the mentor will identify the assistance it will provide to the
prot[eacute]g[eacute] in an effort to facilitate the
prot[eacute]g[eacute]'s understanding of Federal contract regulations.
Such assistance could include guidance in obtaining training on the
regulations, but it also could include other forms of assistance.
C. Other Changes
The final rule includes a minor editorial change. In section I-111,
paragraph (e) is revised to update the reference to renumbered
paragraphs in I-107.
III. Applicability to Contracts at or Below the Simplified Acquisition
Threshold and for Commercial Items, Including Commercially Available
Off-the-Shelf Items
This final rule does not add any new provisions or clauses or
impact any existing provisions or clauses.
IV. Executive Orders 12866 and 13563
Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess
all costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health and safety effects, distributive impacts, and equity). E.O.
13563 emphasizes the importance of quantifying both costs and benefits,
of reducing costs, of harmonizing rules, and of promoting flexibility.
This is not a significant regulatory action and, therefore, was not
subject to review under section 6(b) of E.O. 12866, Regulatory Planning
and Review, dated September 30, 1993. This rule is not a major rule
under 5 U.S.C. 804.
V. Executive Order 13771
This rule is not subject to E.O. 13771, because this rule is not a
significant regulatory action under E.O. 12866.
VI. Regulatory Flexibility Act
A final regulatory flexibility analysis (FRFA) has been prepared
consistent with the Regulatory Flexibility Act, 5 U.S.C. 601, et seq.
The FRFA is summarized as follows:
This final rule is necessary to implement statutory modifications
to the DoD Pilot Mentor-Prot[eacute]g[eacute] Program (``the
Program''). This rule amends the Defense Federal Acquisition Regulation
Supplement (DFARS) to implement section 1823 and paragraph (b) of
section 1813 of the National Defense Authorization Act (NDAA) for
Fiscal Year (FY) 2017, which provide modifications to the Program.
Specifically, section 1823 revises the definition and requirements
associated with affiliation between mentor firms and their
prot[eacute]g[eacute] firms. Both sections add new types of assistance
for mentors to provide to their prot[eacute]g[eacute]s.
There were no issues raised by the public in response to the
initial regulatory flexibility analysis provided in the proposed rule.
The rule will apply to small entities that participate in the
Program. There are currently 72 small entities participating in the
Program as prot[eacute]g[eacute] firms and six small entities
participating as mentors.
The rule does not impose any reporting or recordkeeping
requirements on any small entities.
DoD has not identified any alternatives that would meet the
requirements of the applicable statute.
VII. Paperwork Reduction Act
The rule does not contain any information collection requirements
that require the approval of the Office of Management and Budget under
the Paperwork Reduction Act (44 U.S.C. chapter 35).
List of Subjects in 48 CFR Part 219 and Appendix I to Chapter 2
Government procurement.
Jennifer Lee Hawes,
Regulatory Control Officer, Defense Acquisition Regulations System.
Therefore, 48 CFR part 219 and appendix I to chapter 2 are amended
as follows:
0
1. The authority citation for 48 CFR part 219 and appendix I to chapter
2 continues to read as follows:
Authority: 41 U.S.C. 1303 and 48 CFR chapter 1.
PART 219--SMALL BUSINESS PROGRAMS
219.7100 [Amended]
0
2. Amend section 219.7100 by removing ``November 25, 2015'' and adding
``December 23, 2016'' in its place.
0
3. Amend appendix I to chapter 2 as follows:
0
a. In section I-101 by--
0
i. Redesignating sections I-101.1 through I-101.6 as sections I-101.2
through I-101.7, respectively; and
0
ii. Adding new section I-101.1.
0
b. In section I-102 by--
0
i. Redesignating paragraphs (e) and (f) as paragraphs (f) and (g),
respectively;
0
ii. Adding new paragraph (e); and
0
iii. In newly redesignated paragraph (f), removing ``Subpart 9.4'' and
adding ``subpart 9.4'' in its place.
0
c. In section I-106 by adding paragraph (d)(6)(v).
0
d. In section I-107 by--
0
i. Redesignating paragraphs (h) through (o) as paragraphs (i) through
(p), respectively; and
0
ii. Adding new paragraph (h).
0
e. Amending section I-111 by removing ``I-107(k) through (m)'' from
paragraph (e) and adding ``I-107(l) through (n)'' in its place.
The additions read as follows:
Appendix I to Chapter 2--Policy and Procedures for the DoD Pilot Mentor
Prot[eacute]g[eacute] Program
* * * * *
I-101.1 Affiliation.
With respect to a relationship between a mentor firm and a
prot[eacute]g[eacute] firm, a relationship described under 13 CFR
121.103.
* * * * *
[[Page 54679]]
I-102 Participant eligibility.
* * * * *
(e) A mentor firm may not enter into an agreement with a
prot[eacute]g[eacute] firm if SBA has made a determination of
affiliation. If SBA has not made such a determination and if the DoD
Office of Small Business Programs (OSBP) has reason to believe,
based on SBA's regulations regarding affiliation, that the mentor
firm is affiliated with the prot[eacute]g[eacute] firm, then DoD
OSBP will request a determination regarding affiliation from SBA.
* * * * *
I-106 Development of mentor-prot[eacute]g[eacute] agreements.
* * * * *
(d) * * *
(6) * * *
(v) Women's business centers described in section 29 of the
Small Business Act (15 U.S.C. 656).
* * * * *
I-107 Elements of a mentor-prot[eacute]g[eacute] agreement.
* * * * *
(h) The assistance the mentor will provide to the
prot[eacute]g[eacute] firm in understanding Federal contract
regulations, including the FAR and DFARS, after award of a
subcontract under the Program, if applicable;
* * * * *
[FR Doc. 2018-23673 Filed 10-30-18; 8:45 am]
BILLING CODE 5001-06p-P
[Federal Register Volume 83, Number 211 (Wednesday, October 31, 2018)]
[Rules and Regulations]
[Pages 54679-54680]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-23679]
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DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System
48 CFR Parts 228 and 252
[Docket DARS-2018-0049]
RIN 0750-AJ98
Defense Federal Acquisition Regulation Supplement: Repeal of
DFARS Provision ``Bonds or Other Security'' (DFARS Case 2018-D036)
AGENCY: Defense Acquisition Regulations System, Department of Defense
(DoD).
ACTION: Final rule.
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SUMMARY: DoD is issuing a final rule amending the Defense Federal
Acquisition Regulation Supplement (DFARS) to remove a provision that is
no longer necessary.
DATES: Effective October 31, 2018.
FOR FURTHER INFORMATION CONTACT: Ms. Carrie Moore, telephone 571-372-
6093.
SUPPLEMENTARY INFORMATION:
I. Background
DoD is amending the DFARS to remove DFARS provision 252.228-7004,
Bonds or Other Security, and the associated clause prescription at
DFARS 228.170. The Miller Act (40 U.S.C. 3131 to 3134) requires
contractors on certain construction contracts to post bonds that
guarantee performance of the contract and payment to subcontractors and
suppliers. Several Federal Acquisition Regulation (FAR) clauses are
available to implement these requirements on construction contracts.
While the guarantees of the Miller Act do not apply to contracts for
demolition, dismantling, or removal of improvements, FAR 37.302 permits
the contracting officer to require a performance bond or other
security, in accordance with FAR 28.103, on such contracts when it is
necessary to ensure completion of the work or protect property or
payment of suppliers.
For DoD, when performance bonds or other securities are necessary
for contracts that involve dismantling, demolition, or removal of
improvements, this DFARS provision is included in the solicitation. The
provision requires offerors to furnish a bid guarantee with their
offer; advises that, upon notice of award, the successful offeror shall
provide the Government with the performance bond and any payment due
within a set timeframe; and, identifies the acceptable sureties that
can be used to support the bond.
In reviewing existing FAR provisions and clauses, it was determined
that FAR clause 52.228-16, Performance and Payment Bonds--Other than
Construction, and FAR provision 52.228-1, Bid Guarantee, provide the
information contained in the DFARS provision and can be included in
solicitations and contracts that involve dismantling, demolition, or
removal of improvements. The FAR clause ensures completion of the work;
protects property associated with the contract effort; requires the
offeror to furnish a performance bond within a set amount of time after
receiving a notice of award; and, specifies that bonds must be
supported by specific sureties. The FAR provision requires offerors to
provide a bid guarantee prior to the opening of bids; includes the form
and amount of the guarantee to be provided; advises that a resultant
contract may be terminated for failure to provide an executed bond
after contract award; and, states that the bid guarantee will be used
to offset cost in the event of a termination for default. Since the FAR
provision and clause can be used to provide the same information
included in DFARS provision, this DFARS provision is no longer
necessary and can be removed.
The removal of this DFARS provision supports a recommendation from
the DoD Regulatory Reform Task Force. On February 24, 2017, the
President signed Executive Order (E.O.) 13777, ``Enforcing the
Regulatory Reform Agenda,'' which established a Federal policy ``to
alleviate unnecessary regulatory burdens'' on the American people. In
accordance with E.O. 13777, DoD established a Regulatory Reform Task
Force to review and validate DoD regulations, including the DFARS. A
public notice of the establishment of the DFARS Subgroup to the DoD
Regulatory Reform Task Force, for the purpose of reviewing DFARS
provisions and clauses, was published in the Federal Register at 82 FR
35741 on August 1, 2017, and requested public input. No public comments
were received on this provision. The DoD Task Force reviewed the
requirements of DFARS provision 252.228-7004, Bonds and Other Security,
and determined that the DFARS coverage was unnecessary and recommended
removal.
II. Applicability to Contracts at or Below the Simplified Acquisition
Threshold and for Commercial Items, Including Commercially Available
Off-the-Shelf Items
This rule only removes obsolete DFARS provision 252.228-7004, Bonds
or Other Security. Therefore, the rule does not impose any new
requirements on contracts at or below the simplified acquisition
threshold and for commercial items, including commercially available
off-the-shelf items.
III. Publication of This Final Rule for Public Comment Is Not Required
by Statute
The statute that applies to the publication of the FAR is Office of
Federal Procurement Policy statute (codified at title 41 of the United
States Code). Specifically, 41 U.S.C. 1707(a)(1) requires that a
procurement policy, regulation, procedure, or form (including an
amendment or modification thereof) must be published for public comment
if it relates to the expenditure of appropriated funds, and has either
a significant effect beyond the internal operating procedures of the
agency issuing the policy, regulation, procedure, or form, or has a
significant cost or administrative impact on contractors or offerors.
This final rule is not required to be published for public comment,
because DoD is not issuing a new regulation; rather, this rule merely
removes an obsolete requirement from the DFARS.
[[Page 54680]]
IV. Executive Orders 12866 and 13563
E.O. 12866, Regulatory Planning and Review, and E.O. 13563,
Improving Regulation and Regulatory Review, direct agencies to assess
all costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health and safety effects, distributive impacts, and equity). E.O.
13563 emphasizes the importance of quantifying both costs and benefits,
of reducing costs, of harmonizing rules, and of promoting flexibility.
The Office of Management and Budget, Office of Information and
Regulatory Affairs, has determined that this is not a significant
regulatory action as defined under section 3(f) of E.O. 12866 and,
therefore, was not subject to review under section 6(b). This rule is
not a major rule as defined at 5 U.S.C. 804(2).
V. Executive Order 13771
This rule is not an E.O. 13771 regulatory action, because this rule
is not significant under E.O. 12866.
VI. Regulatory Flexibility Act
Because a notice of proposed rulemaking and an opportunity for
public comment are not required to be given for this rule under 41
U.S.C. 1707(a)(1) (see section III. of this preamble), the analytical
requirements of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.)
are not applicable. Accordingly, no regulatory flexibility analysis is
required, and none has been prepared.
VII. Paperwork Reduction Act
The rule does not contain any information collection requirements
that require the approval of the Office of Management and Budget under
the Paperwork Reduction Act (44 U.S.C. chapter 35).
List of Subjects in 48 CFR Parts 228 and 252
Government procurement.
Jennifer Lee Hawes,
Regulatory Control Officer, Defense Acquisition Regulations System.
Therefore, 48 CFR parts 228 and 252 are amended as follows:
0
1. The authority citation for 48 CFR parts 228 and 252 continues to
read as follows:
Authority: 41 U.S.C. 1303 and 48 CFR chapter 1.
PART 228--BONDS AND INSURANCE
228.170 [Removed]
0
2. Remove section 228.170.
PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
252.228-7004 [Removed and Reserved]
0
3. Remove and reserve section 252.228-7004.
[FR Doc. 2018-23679 Filed 10-30-18; 8:45 am]
BILLING CODE 5001-06p-P
Federal Register Volume 83, Number 211 (Wednesday, October 31, 2018)]
[Rules and Regulations]
[Pages 54680-54681]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-23680]
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DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System
48 CFR Parts 236 and 252
[Docket DARS-2018-0050]
RIN 0750-AK03
Defense Federal Acquisition Regulation Supplement: Repeal of
DFARS Clause ``Option for Supervision and Inspection Services'' (DFARS
Case 2018-D041)
AGENCY: Defense Acquisition Regulations System, Department of Defense
(DoD).
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: DoD is issuing a final rule amending the Defense Federal
Acquisition Regulation Supplement (DFARS) to remove a clause that is no
longer necessary.
DATES: Effective October 31, 2018.
FOR FURTHER INFORMATION CONTACT: Ms. Carrie Moore, telephone 571-372-
6093.
SUPPLEMENTARY INFORMATION:
I. Background
DoD is amending the DFARS to remove the DFARS clause 252.236-7009,
Option for Supervision and Inspection Services, remove the associated
clause prescription at DFARS 236.609-70(a)(1), and revise a cross
reference in the introductory text to DFARS clause 252.236-7011. DFARS
clause 252.236-7009 is used in fixed-price solicitations and contracts
for architect-engineering services when the architect may also be
required to provide supervision and inspection services during
construction. The clause advises contractors that the Government may,
at its option, direct the contractor to perform supervision and
inspection services for the construction contract. If the need for such
services arises, the Government will notify the contractor in writing
and the contractor shall proceed with the services upon receipt of the
written notification. A description of the scope of the supervision and
inspection services is included as an appendix to the contract.
The need for architect-engineers to perform supervision and
inspection services during construction is uncommon. When it is
necessary, an option that accurately describes the scope of services
can be included in the contract, pursuant to Federal Acquisition
Regulation subpart 17.2, Options. Contracting activities can better
address these services, to the extent they are needed and the
procedures applicable to the requirement, within the scope of a
contract. As such, this DFARS clause is unnecessary and can be removed.
The removal of this DFARS clause supports a recommendation from the
DoD Regulatory Reform Task Force. On February 24, 2017, the President
signed Executive Order (E.O.) 13777, ``Enforcing the Regulatory Reform
Agenda,'' which established a Federal policy ``to alleviate unnecessary
regulatory burdens'' on the American people. In accordance with E.O.
13777, DoD established a Regulatory Reform Task Force to review and
validate DoD regulations, including the DFARS. A public notice of the
establishment of the DFARS Subgroup to the DoD Regulatory Reform Task
Force, for the purpose of reviewing DFARS provisions and clauses, was
published in the Federal Register at 82 FR 35741 on August 1, 2017, and
requested public input. No public comments were received on this
clause. Subsequently, the DoD Task Force reviewed the requirements of
DFARS clause 252.236-7009, Option for Supervision and Inspection
Services, and determined that the DFARS coverage was unnecessary and
recommended removal.
II. Applicability to Contracts at or Below the Simplified Acquisition
Threshold and for Commercial Items, Including Commercially Available
Off-the-Shelf Items
This rule only removes obsolete DFARS clause 252.236-7009, Option
for Supervision and Inspection Services. Therefore, the rule does not
impose any new requirements on contracts at or below the simplified
acquisition threshold and for commercial items, including commercially
available off-the-shelf items.
III. Publication of This Final Rule for Public Comment Is Not Required
by Statute
The statute that applies to the publication of the FAR is Office of
[[Page 54681]]
Federal Procurement Policy statute (codified at title 41 of the United
States Code). Specifically, 41 U.S.C. 1707(a)(1) requires that a
procurement policy, regulation, procedure, or form (including an
amendment or modification thereof) must be published for public comment
if it relates to the expenditure of appropriated funds, and has either
a significant effect beyond the internal operating procedures of the
agency issuing the policy, regulation, procedure, or form, or has a
significant cost or administrative impact on contractors or offerors.
This final rule is not required to be published for public comment,
because DoD is not issuing a new regulation; rather, this rule merely
removes an obsolete requirement from the DFARS.
IV. Executive Orders 12866 and 13563
E.O. 12866, Regulatory Planning and Review, and E.O. 13563,
Improving Regulation and Regulatory Review, direct agencies to assess
all costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health and safety effects, distributive impacts, and equity). E.O.
13563 emphasizes the importance of quantifying both costs and benefits,
of reducing costs, of harmonizing rules, and of promoting flexibility.
The Office of Management and Budget, Office of Information and
Regulatory Affairs, has determined that this is not a significant
regulatory action as defined under section 3(f) of E.O. 12866 and,
therefore, was not subject to review under section 6(b). This rule is
not a major rule as defined at 5 U.S.C. 804(2).
V. Executive Order 13771
This rule is not an E.O. 13771 regulatory action, because this rule
is not significant under E.O. 12866.
VI. Regulatory Flexibility Act
Because a notice of proposed rulemaking and an opportunity for
public comment are not required to be given for this rule under 41
U.S.C. 1707(a)(1) (see section III. of this preamble), the analytical
requirements of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.)
are not applicable. Accordingly, no regulatory flexibility analysis is
required, and none has been prepared.
VII. Paperwork Reduction Act
The rule does not contain any information collection requirements
that require the approval of the Office of Management and Budget under
the Paperwork Reduction Act (44 U.S.C. chapter 35).
List of Subjects in 48 CFR Parts 236 and 252
Government procurement.
Jennifer Lee Hawes,
Regulatory Control Officer, Defense Acquisition Regulations System.
Therefore, 48 CFR parts 236 and 252 are amended as follows:
0
1. The authority citation for 48 CFR parts 236 and 252 continues to
read as follows:
Authority: 41 U.S.C. 1303 and 48 CFR chapter 1.
PART 236--CONSTRUCTION AND ARCHITECT--ENGINEER CONTRACTS
236.609-70 [Amended]
0
2. Amend section 236.609-70 by--
0
a. In the section heading, removing ``and clause'';
0
b. Removing paragraph (a); and
0
c. Redesignating the introductory text of paragraph (b) as introductory
text to the section.
PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
252.236--7009 [Removed and Reserved]
0
3. Remove and reserve section 252.236-7009.
252.236-7011 [Amended]
0
4. Amend section 252.236-7011, in the introductory text, by removing
``236.609-70(b)'' and adding ``236.609-70'' in its place.
[FR Doc. 2018-23680 Filed 10-30-18; 8:45 am]
BILLING CODE 5001-06-P
[Federal Register Volume 83, Number 211 (Wednesday, October 31, 2018)]
[Rules and Regulations]
[Pages 54681-54682]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-23681]
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DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System
48 CFR Part 252
[Docket DARS-2018-0051]
RIN 0750-AK34
Defense Federal Acquisition Regulation Supplement: Update of
Clause on Section 8(a) Direct Award (DFARS Case 2018-D052)
AGENCY: Defense Acquisition Regulations System, Department of Defense
(DoD).
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: DoD is issuing a final rule to amend the Defense Federal
Acquisition Regulation Supplement (DFARS) to remove an obsolete
requirement from a DFARS clause.
DATES: Effective October 31, 2018.
FOR FURTHER INFORMATION CONTACT: Ms. Jennifer D. Johnson, telephone
571-372-6100.
SUPPLEMENTARY INFORMATION:
I. Background
DoD is amending the DFARS to remove an obsolete requirement from
the clause at DFARS 252.219-7009, Section 8(a) Direct Award. The clause
currently requires 8(a) contractors to obtain written approval from the
Small Business Administration (SBA) and the contracting officer prior
to subcontracting the performance of any contract requirements. This
requirement no longer exists in SBA's regulations on the 8(a) Business
Development Program at 13 CFR part 124.
II. Discussion and Analysis
This rule deletes paragraph (c)(2) of the clause at DFARS 252.219-
7009. This paragraph contains the obsolete requirement for an 8(a)
contractor to obtain written approval from SBA and the contracting
officer prior to subcontracting performance of contract requirements.
The remaining paragraphs (c) and (c)(1) are combined into a single
paragraph (c). This rule also updates an outdated reference in
paragraph (c)(1) and makes other minor editorial changes.
III. Applicability to Contracts at or Below the Simplified Acquisition
Threshold and for Commercial Items, Including Commercially Available
Off-the-Shelf Items
This rule revises the clause at DFARS 252.219-7009, Section 8(a)
Direct Award. This clause currently applies to solicitations and
contracts below the simplified acquisition threshold (SAT) and to the
acquisition of commercial items, including commercially available off-
the-shelf (COTS) items, as defined at Federal Acquisition Regulation
(FAR) 2.101.
DoD is continuing to apply this clause to solicitations and
contracts below the SAT and to the acquisition of commercial items,
including COTS items. This rule merely removes an obsolete requirement
to obtain approval from the contracting officer and SBA prior to
subcontracting work under an 8(a) contract. Not applying this guidance
to contracts below the SAT and to the acquisition of commercial items,
including COTS items, would exclude contracts with 8(a) Program
participants that are intended to be
[[Page 54682]]
covered by this rule and undermine the overarching purpose of the rule.
Consequently, DoD plans to apply the rule to contracts below the SAT
and to the acquisition of commercial items, including COTS items.
IV. Expected Cost Savings
This rule impacts only 8(a) Program participants who do business,
or want to do business, with DoD. Currently, 8(a) Program participants
who have DoD contracts must obtain written approval from SBA and the
contracting officer before subcontracting the performance of any
contract requirements in accordance with DFARS clause 252.219-7009.
Removal of the requirement to obtain this approval is expected to
result in savings for DoD contractors who are 8(a) Program
participants.
The following is a summary of the estimated public and Government
cost savings calculated in perpetuity in 2016 dollars at a 7-percent
discount rate:
----------------------------------------------------------------------------------------------------------------
Summary Public Government Total
----------------------------------------------------------------------------------------------------------------
Present Value.......................................... ($9,713,886) ($4,856,943) ($14,570,829)
Annualized Costs....................................... (679,972) (339,986) (1,019,958)
Annualized Value Costs (as of 2016 if Year 1 is 2019).. (555,060) (277,530) (832,590)
----------------------------------------------------------------------------------------------------------------
To access the full Regulatory Cost Analysis for this rule, go to
the Federal eRulemaking Portal at www.regulations.gov, search for
``DFARS Case 2018-D052,'' click ``Open Docket,'' and view ``Supporting
Documents.''
V. Executive Orders 12866 and 13563
Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess
all costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health and safety effects, distributive impacts, and equity). E.O.
13563 emphasizes the importance of quantifying both costs and benefits,
of reducing costs, of harmonizing rules, and of promoting flexibility.
This is not a significant regulatory action and, therefore, was not
subject to review under section 6(b) of E.O. 12866, Regulatory Planning
and Review, dated September 30, 1993. This rule is not a major rule
under 5 U.S.C. 804.
VI. Executive Order 13771
This final rule is considered to be an E.O. 13771 deregulatory
action. The total annualized value of the cost savings is $832,590.
Details on the estimated cost savings can be found in section IV. of
this preamble.
VII. Publication of This Final Rule for Public Comment Is Not Required
by Statute
The statute that applies to the publication of the FAR is Office of
Federal Procurement Policy statute (codified at title 41 of the United
States Code). Specifically, 41 U.S.C. 1707(a)(1) requires that a
procurement policy, regulation, procedure, or form (including an
amendment or modification thereof) must be published for public comment
if it relates to the expenditure of appropriated funds, and has either
a significant effect beyond the internal operating procedures of the
agency issuing the policy, regulation, procedure, or form, or has a
significant cost or administrative impact on contractors or offerors.
This final rule is not required to be published for public comment,
because DoD is not issuing a new regulation; rather, this rule merely
removes an obsolete requirement from the DFARS, updates an outdated
reference and makes minor editorial changes.
VIII. Regulatory Flexibility Act
Because a notice of proposed rulemaking and an opportunity for
public comment are not required to be given for this rule under 41
U.S.C. 1707(a)(1) (see section VII. of this preamble), the analytical
requirements of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.)
are not applicable. Accordingly, no regulatory flexibility analysis is
required, and none has been prepared.
IX. Paperwork Reduction Act
The rule does not contain any information collection requirements
that require the approval of the Office of Management and Budget under
the Paperwork Reduction Act (44 U.S.C. chapter 35).
List of Subjects in 48 CFR Part 252
Government procurement.
Jennifer Lee Hawes,
Regulatory Control Officer, Defense Acquisition Regulations System.
Therefore, 48 CFR part 252 is amended as follows:
PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
0
1. The authority citation for part 252 continues to read as follows:
Authority: 41 U.S.C. 1303 and 48 CFR chapter 1.
0
2. Amend section 252.219-7009 by--
0
a. Removing the clause date of ``(SEP 2007)'' and adding ``(OCT 2018)''
in its place;
0
b. In paragraph (a), removing ``Partnership Agreement dated'' and
adding ``Partnership Agreement'' in its place; and
0
c. Revising paragraph (c) to read as follows:
252.219-7009 Section 8(a) direct award.
* * * * *
(c.) The 8(a) Contractor agrees that it will notify the Contracting
Officer, simultaneous with its notification to the SBA (as required by
SBA's 8(a) regulations at 13 CFR 124.515), when the owner or owners
upon whom 8(a) eligibility is based plan to relinquish ownership or
control of the concern. Consistent with section 407 of Public Law 100-
656, transfer of ownership or control shall result in termination of
the contract for convenience, unless the SBA waives the requirement for
termination prior to the actual relinquishing of ownership and control.
* * * * *
[FR Doc. 2018-23681 Filed 10-30-18; 8:45 am]
BILLING CODE 5001-06-P