[Federal Register Volume 64, Number 35 (Tuesday, February 23, 1999)]
[Rules and Regulations]
[Page 8731]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-4344]



[[Page 8731]]

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DEPARTMENT OF DEFENSE

48 CFR Parts 232 and 252

[DFARS Case 98-D400]


Defense Federal Acquisition Regulation Supplement; Flexible 
Progress Payments

AGENCY: Department of Defense (DoD).

ACTION: Final rule.

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SUMMARY: The Director of Defense Procurement has issued a final rule 
amending the Defense Federal Acquisition Regulation Supplement (DFARS) 
to remove references to the flexible progress payments method of 
contract financing. Prior to issuance of this rule, the DFARS coverage 
did not permit use of flexible progress payments for contracts awarded 
as a result of solicitations issued on or after November 11, 1993.

EFFECTIVE DATE: February 23, 1999.

FOR FURTHER INFORMATION CONTACT: Ms. Sandra G. Haberlin, Defense 
Acquisition Regulations Council, PDUSD (A&T) DP (DAR), IMD 3D139, 3062 
Defense Pentagon, Washington, DC 20301-3062. Telephone (703) 602-0131; 
telefax (703) 602-0350. Please cite DFARS Case 98-D400.

SUPPLEMENTARY INFORMATION:

A. Background

    This final rule removes references to flexible progress payments 
from the DFARS. Prior to issuance of this rule, Table 32-1 at DFARS 
232.502-1-71 indicated that flexible progress payments were not 
permitted for contracts awarded as a result of solicitations issued on 
or after November 11, 1993. Therefore, this rule does not reflect a 
policy change but merely removes obsolete coverage.
    This final rule is unchanged from the proposed rule that was 
published in the Federal Register on September 8, 1998 (63 FR 47460). 
All comments received in response to the proposed rule were considered 
in the development of the final rule.

B. Regulatory Flexibility Act

    The Department of Defense certifies that this final rule 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 most contracts awarded to small entities have a 
dollar value less than the simplified acquisition threshold, and, 
therefore, would not use the flexible progress payments method of 
financing. In addition, prior to issuance of this rule, flexible 
progress payments were not permitted for contracts awarded as a result 
of solicitations issued on or after November 11, 1993.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the final rule 
does not impose any information collection requirements that require 
the approval of the Office of Management and Budget under 44 U.S.C. 
3501, et seq.

List of Subjects in 48 CFR Parts 232 and 252

    Government procurement.
Michele P. Peterson,
Executive Editor, Defense Acquisition Regulations Council.

    Therefore, 48 CFR Parts 232 and 252 are amended as follows:
    1. The authority citation for 48 CFR Parts 232 and 252 continues to 
read as follows:

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

PART 232--CONTRACT FINANCING

    2. Section 232.501 is revised to read as follows:


232.501  General.


232.501-1  [Amended]

    3. Section 232.501-1 is amended by removing paragraph (a)(iii).


232.501-2  [Amended]

    4. Section 232.501-2 is amended in the second sentence by revising 
the parenthetical ``(232.171)'' to read ``(see 232.071)''.


232.502-1-71  [Removed]

    5. Section 232.502-1-71 is removed.


232.502-4-70  [Amended]

    6. Section 232.502-4-70 is amended by removing paragraph (b) and 
redesignating paragraph (c) as paragraph (b).

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES


252.232-7003  [Removed and Reserved]

    7. Section 252.232-7003 is removed and reserved.
    8. Section 252.232-7004 is amended by revising the introductory 
text to read as follows:


252.232-7004  DoD progress payment rates.

    As prescribed in 232.502-4-70(b), use the following clause:
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[FR Doc. 99-4344 Filed 2-22-99; 8:45 am]
BILLING CODE 5000-04-M