[Federal Register Volume 63, Number 224 (Friday, November 20, 1998)]
[Rules and Regulations]
[Pages 64426-64427]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-31038]
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DEPARTMENT OF DEFENSE
48 CFR Parts 209, 213, 219, 225, 231, 235, 236, 252, and 253
Defense Federal Acquisition Regulation Supplement; Adoption of
Interim Rules as Final Rules Without Change
AGENCY: Department of Defense (DoD).
ACTION: Final rules.
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SUMMARY: The Director of Defense Procurement is adopting as final,
without change, eight interim rules that amended the Defense Federal
Acquisition Regulation Supplement (DFARS). The rules pertain to
contractor responsibility, awards to small disadvantaged business
concerns, small business subcontracting plans, domestic source
restrictions, restructuring costs, research and development
contracting, and construction in foreign countries.
EFFECTIVE DATE: November 20, 1998.
FOR FURTHER INFORMATION CONTACT:
Ms. Michelle Peterson, (703) 602-0131.
Supplementary Information:
A. Background
The following is a summary of the eight interim rules that are
adopted as final without change. DoD published the interim rules in the
Federal Register for public comment and considered all comments
received.
List of Firms Not Eligible for Defense Contracts (DFARS Case 97-D325)
(63 FR 14836, March 27, 1998)
This rule amends DFARS Parts 209 and 252 to implement Section 843
of the National Defense Authorization Act for Fiscal Year 1998 (Public
Law 105-85). Section 843 requires that the Secretary of Defense
maintain a list of all firms that the Secretary has identified as being
subject to a prohibition on contract award due to ownership or control
of the firm by the government of a terrorist country; and that DoD
contractors be prohibited from entering into subcontracts with firms on
the list unless there is a compelling reason to do so.
Direct Award of 8(a) Contracts (DFARS Case 98-D011) (63 FR 33586, June
19, 1998)
This rule amends DFARS Parts 213, 219, 252, and 253 to implement a
Memorandum of Understanding (MOU) dated May 6, 1998, between the Small
Business Administration (SBA) and DoD. The MOU streamlines the
processing procedures for contract awards under SBA's 8(a) Program by
authorizing DoD to award contracts directly to 8(a) concerns.
Comprehensive Subcontracting Plans (DFARS Case 97-D323) (63 FR 14640,
March 26, 1998)
This rule amends DFARS 219.702 to reflect revisions made to the DoD
Test Program for Negotiation of Comprehensive Small Business
Subcontracting Plans, as required by Section 822 of the National
Defense Authorization Act for Fiscal Year 1998 (Public Law 105-85).
Section 822 extends, from September 30, 1998, to September 30, 2000,
the expiration date for the test program; and provides for use of
comprehensive subcontracting plans by participating contractors that
are performing as subcontractors under DoD contracts.
Waiver of 10 U.S.C. 2534--United Kingdom (DFARS Case 98-D016) (63 FR
43887, August 17, 1998)
This rule amends DFARS Subpart 225.70 and the clauses at DFARS
252.225-7016 and 252.225-7029 to implement a waiver of the domestic
source restrictions of 10 U.S.C. 2534(a) for certain items manufactured
in the United Kingdom. The waiver was signed by the Under Secretary of
Defense (Acquisition and Technology) on June 19, 1998, and became
effective on August 4, 1998.
Allowability of Costs for Restructuring Bonuses (DFARS Case 97-D312)
(62 FR 63035, November 26, 1997)
This rule amends DFARS 231.205-6 to implement Section 8083 of the
National Defense Appropriations Act for Fiscal Year 1998 (Public Law
105-56). Section 8083 prohibits the use of fiscal year 1998 funds to
reimburse a contractor for costs paid by the contractor to an employee
for a bonus or other payment in excess of the normal salary paid by the
contractor to the employee, when such payment is part of restructuring
costs associated with a business combination.
Restructuring Costs (DFARS Case 97-D313) (63 FR 7308, February 13,
1998)
This rule amends DFARS 231.205-70 to implement Section 8092 of the
National Defense Appropriations Act for Fiscal Year 1998 (Public Law
105-56) and Section 804 of the National Defense Authorization Act for
Fiscal Year 1998 (Public Law 105-85). Sections 8092 and 804 restrict
the reimbursement of restructuring costs associated with a business
combination undertaken by a defense contractor unless certain
conditions are met.
Streamlined Research and Development Contracting (DFARS Case 97-D002)
(63 FR 34605, June 25, 1998)
This rule revises DFARS Subpart 235.70 to implement streamlined
solicitation and contracting procedures for research and development
acquisitions. The procedures use a standard solicitation and contract
format, and use the World Wide Web to disseminate the standard format
and publish the resulting solicitations.
Construction in Foreign Countries (DFARS Case 97-D307) (63 FR 11522,
March 9, 1998)
This rule amends DFARS Part 236 and adds a new provision at
252.236-7012 to implement Section 112 of the Military Construction
Appropriations Act for Fiscal Year 1998 (Public Law 105-45). Section
112 provides that no military construction appropriations may be used
to award, to a foreign contractor, any contract estimated to exceed
$1,000,000 for military construction in the United States territories
and possessions in the Pacific
[[Page 64427]]
and on Kwajalein Atoll, or in countries bordering the Arabian Gulf,
except for: (1) Contract awards for which the lowest responsive and
responsible bid of a United States firm exceeds the lowest responsive
and responsible bid of a foreign firm by more than 20 percent, and (2)
contract awards for military construction on Kwajalein Atoll for which
the lowest responsive and responsible bid is submitted by a Marshallese
firm.
B. Regulatory Flexibility Act
DoD certifies that these final rules will not 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:
List of Firms Not Eligible for Defense Contracts (DFARS Case 97-
D325)--Few small entities are believed to subcontract with firms that
are owned or controlled by the government of a terrorist country.
Direct Award of 8(a) Contracts (DFARS Case 98-D011)--The rule only
affects the administrative procedures used to award 8(a) contracts.
Comprehensive Subcontracting Plans (DFARS Case 97-D323)--Small
businesses are exempt from subcontracting plan requirements, and the
rule does not change the obligation of large business concerns to
maximize subcontracting opportunities for small business concerns.
Waiver of 10 U.S.C. 2534--United Kingdom (DFARS Case 98-D016)--
There are no known small business manufacturers of the restricted air
circuit breakers; defense appropriations acts presently impose domestic
source restrictions on the acquisition of totally enclosed lifeboats
and noncommercial ball and roller bearings; and the restrictions of 10
U.S.C. 2534(a) do not apply to acquisitions of commercial items
incorporating ball or roller bearings.
Restructuring Costs (DFARS Case 97-D313) and Allowability of Costs
for Restructuring Bonuses (DFARS Case 97-D312)--Most contracts awarded
to small entities use simplified acquisition procedures or are awarded
on a competitive fixed-priced basis, and do not require application of
the cost principles contained in these rules.
Streamlined Research and Development Contracting (DFARS Case 97-
D002)--The rule merely provides an implementation of electronic
contracting procedures already authorized by the FAR.
Construction in Foreign Countries (DFARS Case 97-D307)--The DFARS
changes contained in this rule apply only to contracts for military
construction on Kawjalein Atoll that are estimated to exceed
$1,000,000; DoD awards approximately two such contracts annually.
C. Paperwork Reduction Act
The Office of Management and Budget (OMB) approved the information
collection requirements associated with DFARS Case 97-D307,
Construction in Foreign Countries, for use through August 31, 2001,
under OMB Control Number 0704-0255. The other rules do not contain any
information collection requirements that require the approval of OMB
under 44 U.S.C. 3501, et seq.
List of Subjects in 48 CFR Parts 209, 213, 219, 225, 231, 235, 236,
252, and 253
Government procurement.
Michele P. Peterson,
Executive Editor, Defense Acquisition Regulations Council.
Interim Rules Adopted as Final Without Change
PART 209--CONTRACTOR QUALIFICATIONS, AND PART 252--SOLICITATION
PROVISIONS AND CONTRACT CLAUSES
Accordingly, the interim rule amending 48 CFR parts 209 and 252,
which was published at 63 FR 14836 on March 27, 1998, is adopted as a
final rule without change.
PART 213--SIMPLIFIED ACQUISITION PROCEDURES, PART 219--SMALL
BUSINESS PROGRAMS, PART 252--SOLICITATION PROVISIONS AND CONTRACT
CLAUSES, AND PART 253--FORMS
Accordingly, the interim rule amending 48 CFR parts 213, 219, 252,
and 253, which was published at 63 FR 33586 on June 19, 1998, is
adopted as a final rule without change.
PART 219--SMALL BUSINESS PROGRAMS
Accordingly, the interim rule amending 48 CFR part 219, which was
published at 63 FR 14640 on March 26, 1998, is adopted as a final rule
without change.
PART 225--FOREIGN ACQUISITION, AND PART 252--SOLICITATION
PROVISIONS AND CONTRACT CLAUSES
Accordingly, the interim rule amending 48 CFR parts 225 and 252,
which was published at 63 FR 43887 on August 17, 1998, is adopted as a
final rule without change.
PART 231--CONTRACT COST PRINCIPLES AND PROCEDURES
Accordingly, the interim rule amending 48 CFR part 231, which was
published at 62 FR 63035 on November 26, 1997, is adopted as a final
rule without change.
PART 231--CONTRACT COST PRINCIPLES AND PROCEDURES
Accordingly, the interim rule amending 48 CFR part 231, which was
published at 63 FR 7308 on February 13, 1998, is adopted as a final
rule without change.
PART 235--RESEARCH AND DEVELOPMENT CONTRACTING
Accordingly, the interim rule amending 48 CFR part 235, which was
published at 63 FR 34605 on June 25, 1998, is adopted as a final rule
without change.
PART 236--CONSTRUCTION AND ARCHITECT-ENGINEER CONTRACTS, AND PART
252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
Accordingly, the interim rule amending 48 CFR parts 236 and 252 at
sections 236.102, 236.274, 236.570, 252.236-7010, and 252.236-7012,
which was published at 63 FR 11522 on March 9, 1998, is adopted as a
final rule without change.
[FR Doc. 98-31038 Filed 11-19-98; 8:45 am]
BILLING CODE 5000-04-M