[Federal Register Volume 60, Number 218 (Monday, November 13, 1995)]
[Proposed Rules]
[Pages 56975-56976]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-27723]



-----------------------------------------------------------------------


DEPARTMENT OF DEFENSE
48 CFR Part 252


Defense Federal Acquisition Regulation Supplement; Ground and 
Flight Risk

AGENCY: Department of Defense (DoD).

ACTION: Proposed rule with request for comments.

-----------------------------------------------------------------------

SUMMARY: The Director of Defense Procurement is proposing to amend the 
Defense Federal Acquisition Regulation Supplement (DFARS) to clarify 
who approves flight crew members, increase the amount of the 
contractor's financial responsibility for loss or damage to the 
aircraft from $1,000 to $25,000, and make other minor changes in the 
clauses entitled ``Ground and Flight Risk'' and ``Aircraft Flight 
Risks.''

DATES: Comments on the proposed rule should be submitted in writing to 
the address shown below on or before January 12, 1996, to be considered 
in the formulation of the final rule.

ADDRESSES: Interested parties should submit written comments to: 
Defense Acquisition Regulations Council, Attn: Ms. Amy Williams, PDUSD 
(A&T) DP (DAR), IMD 3D139, 3062 Defense Pentagon, Washington, D.C. 
20301-3062. Telefax number (703) 602-0350. Please cite DFARS Case 95-
D028 in all correspondence related to this issue.

FOR FURTHER INFORMATION CONTACT: Ms. Amy Williams, (703) 602-0131.

SUPPLEMENTARY INFORMATION:

A. Background

    This proposed rule amends the clauses at DFARS 252.228-7001, Ground 
and Flight Risk, and 252.228-7002, Aircraft Flight Risks, based on the 
recommendations of a Tri-Service Process Review Team, which conducted 
an intensive 4-month study of contractor flight operations. The most 
substantive issues relate to approval of the flight crew members and 
the amount of the contractor's financial responsibility for loss or 
damage to the aircraft. Procedures for authorizing contractor's flight 
crew members and flight are clearly delegated to the Government Flight 
Representative in the combined, tri-service regulation entitled 
``Contractor's Flight and Ground Operations.'' With regard to the 
contractor's financial responsibility for loss or damage to the 
aircraft, the proposed rule increases the amount from $1,000 to 
$25,000, because $1,000 does not adequately compensate the Government 
for the processing costs required to recover the $1,000, and $1,000 
does not operate as an economic incentive for the contractor to adhere 
to prudent care of property.

B. Regulatory Flexibility Act

    The proposed 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., because there are 
only a limited number of defense aviation contractors to which these 
DFARS clauses apply, and few of those contractors are small businesses. 
An Initial Regulatory Flexibility Analysis has, therefore, not been 
performed. Comments from small entities concerning the affected DFARS 
subpart will be considered in accordance with Section 610 of the Act. 
Such comments must be submitted separately and cite DFARS Case 95-D028 
in correspondence.

[[Page 56976]]


C. Paperwork Reduction Act

    The proposed rule does not impose any reporting or recordkeeping 
requirements which require OMB approval under 44 U.S.C. 3501 et seq.

List of Subjects in 48 CFR Part 252

    Government procurement.
Michele P. Peterson,
Executive Editor, Defense Acquisition Regulations Council.
    Therefore, it is proposed that 48 CFR Part 252 be amended as 
follows:

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

    1. The authority citation for 48 CFR Part 252 continues to read as 
follows:

    Authority: 41 U.S.C. 421 and 48 CFR Chapter 1.

    2. Section 252.228-7001 is amended by revising paragraphs (d)(2), 
(e), (i) introductory text, (i)(1), (i)(2) introductory text, and (k) 
to read as follows:


252.228-7001  Ground and flight risk.

* * * * *
    (d) * * *
    (2) Is sustained during flight if the flight crew members have not 
been approved in writing as delineated in the combined, tri-service 
regulation entitled ``Contractor's Flight and Ground Operations'' (Air 
Force Regulation 55-22, Army Regulation 95-20, NAVAIR Instruction 
3710.1C; and Defense Logistics Agency Manual 8210.1);
* * * * *
    (e) With the exception of damage, loss, or destruction in flight, 
the Contractor assumes the risk and shall be responsible for the first 
$25,000 of loss or damage to the aircraft in the open or during 
operation resulting from each separate event, except for reasonable 
wear and tear and to the extent the loss or damage is caused by 
negligence of Government personnel. If the Government elects to require 
that the aircraft be replaced or restored by the Contractor to its 
condition immediately prior to the damage, the equitable adjustment in 
the price authorized by paragraph (i) of this clause shall not include 
the dollar amount of the risk assumed by the Contractor. In the event 
the Government does not elect repair or replacement, the Contractor 
agrees to credit the contract price or pay the Government $25,000 (or 
the amount of the loss, if less) as directed by the Contracting 
Officer.
* * * * *
    (i) If prior to delivery and acceptance by the Government, the 
aircraft is damaged, lost, or destroyed and the Government assumed the 
risk, the Government shall either--
    (1) Require that the aircraft be replaced or restored by the 
Contractor to the condition immediately prior to the damage, in which 
event the Contracting Officer will make an equitable adjustment in the 
contract price and the time for contract performance; or
    (2) Terminate this contract with respect to the aircraft. If this 
contract is terminated with respect to the aircraft, the Contractor 
shall be paid the contract price for the aircraft (or if applicable, 
any work to be performed on the aircraft) less any amount the 
Contracting Officer determines--
* * * * *
    (k) The Contractor agrees to be bound by the operating procedures 
contained in the combined, tri-service regulation entitled 
``Contractor's Flight and Ground Operations'' in effect on the date of 
contract award.
    3. Section 252.228-7002 is amended by revising paragraphs (c) 
introductory text and (e) to read as follows:


252.228-7002  Aircraft flight risks.

* * * * *
    (c) Unless the flight crew members previously have been approved in 
writing as delineated in the combined, tri-service regulation entitled 
``Contractor's Flight and Ground Operations'' (Air Force Regulation 55-
22, Army Regulation 95-20, NAVAIR Instruction 3710.1C; and Defense 
Logistics Agency Manual 8210.1), the Contractor shall not be--
* * * * *
    (e) The Contractor agrees to be bound by the operating procedures 
contained in the combined, tri-service regulation entitled 
``Contractor's Flight and Ground Operations'' in effect on date of 
contract award.

[FR Doc. 95-27723 Filed 11-9-95; 8:45 am]
BILLING CODE 5000-04-M