[Federal Register Volume 64, Number 132 (Monday, July 12, 1999)]
[Proposed Rules]
[Pages 37640-37641]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-17520]



[[Page 37639]]

_______________________________________________________________________

Part IV

Department of Defense

General Services Administration

National Aeronautics and Space Administration
_______________________________________________________________________



48 CFR Parts 47 and 52



Federal Acquisition Regulation; Ocean Transportation by U.S.-Flag 
Vessels; Proposed Rule

  Federal Register / Vol. 64, No. 132 / Monday, July 12, 1999 / 
Proposed Rules  

[[Page 37640]]



DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 47 and 52

[FAR Case 98-604]
RIN 9000-AI39


Federal Acquisition Regulation; Ocean Transportation by U.S.-Flag 
Vessels

AGENCIES: Department of Defense (DoD), General Services Administration 
(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Proposed rule.

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SUMMARY: The Civilian Agency Acquisition Council and the Defense 
Acquisition Regulations Council are proposing to amend the Federal 
Acquisition Regulation (FAR) to clarify application of the preference 
for U.S.-flag vessels.

DATES: Comments should be submitted on or before September 10, 1999 to 
be considered in the formulation of a final rule.

ADDRESSES: Interested parties should submit written comments to: 
General Services Administration, FAR Secretariat (MVR), 1800 F Street, 
NW, Room 4035, ATTN: Laurie Duarte, Washington, DC 20405.
    E-mail comments submitted over Internet should be addressed to: 
[email protected].
    Please cite FAR case 98-604 in all correspondence related to this 
case.

FOR FURTHER INFORMATION CONTACT: The FAR Secretariat, Room 4035, GS 
Building, Washington, DC 20405, (202) 501-4755, for information 
pertaining to status or publication schedules. For clarification of 
content, contact Ms. Linda Klein, Procurement Analyst, at (202) 501-
3775. Please cite FAR case 98-604.

SUPPLEMENTARY INFORMATION:

A. Background

    This rule proposes to amend the FAR as follows:
     Apply the preference for U.S.-flag vessels to contracts 
awarded using simplified acquisition procedures (47.504 and 52.213-4).
     Add to the clause at 52.212-5, Contract Terms and 
Conditions Required to Implement Statues or Executive Orders-Commercial 
Items, Alternate I to 52.247-64, Preference for Privately Owned U.S.-
Flag Commercial Vessels.
     Incorporate in the clause at 52.247-64 the exception at 
47.504(e) for subcontracts for commercial items or commercial 
components.
    Subpart 47.5, Ocean Transportation by U.S.-Flag Vessels, of the 
Federal Acquisition Regulations, does not apply to the Department of 
Defense. Policy and procedures applicable to DoD appear in DFARS 
subpart 247.5.
    This regulatory action was not subject to Office of Management and 
Budget review under Executive Order 12866, dated September 30, 1993, 
and is not a major rule under 5 U.S.C. 804.

B. Regulatory Flexibility Act

    This 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 most 
ocean transportation companies are large business concerns. An Initial 
Regulatory Flexibility Analysis has, therefore, not been performed. 
Comments from small entities concerning the affected FAR subpart will 
be considered in accordance with 5 U.S.C. 610 of the Act. Such comments 
must be submitted separately and should cite 5 U.S.C. 601, et seq. (FAR 
case 98-604), in correspondence.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the changes to 
the FAR do not impose information collection requirements that require 
the approval of the Office of Management and Budget under 44 U.S.C. 
3501, et seq. The information collection requirements of the clause at 
FAR 52.247-64 have been approved under OMB Control Number 9000-0054.

List of Subjects in 48 CFR Parts 47 and 52

    Government procurement.

    Dated: July 6, 1999.
Jeremy F. Olson,
Acting Director, Federal Acquisition Policy Division.
    Therefore, it is proposed that 48 CFR parts 47 and 52 be amended as 
set forth below:
    1. The authority citation for 48 CFR parts 47 and 52 continues to 
read as follows:

    Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42 
U.S.C. 2473(c).

PART 47--TRANSPORTATION

    2. Amend section 47.504 to remove paragraph (d) and redesignate 
paragraph (e) as (d); and at the beginning of the newly redesignated 
paragraph (d) revise the first sentence to read as follows:


47.504  Exceptions.

* * * * *
    (d) Subcontracts for the acquisition of commercial items or 
commercial components (see 12.504(a)(13)). * * *

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

    3. Amend section 52.212-5 to revise the date of the clause; 
redesignate paragraph (b)(26) as (b)(26)(i); and add paragraph 
(b)(26)(ii) to read as follows:


52.212-5  Contract Terms and Conditions Required to Implement Statues 
or Executive Orders--Commercial Items.

* * * * *

Contract Terms and Conditions Required to Implement Statues or 
Executive Orders--Commercial Items (Date)

* * * * *
    (b) * * *
    ________ (26)(ii) Alternate I of 52.247-64.
* * * * *
    4. Amend section 52.213-4 to revise the date of the clause; and add 
paragraph (b)(1)(xi) to read as follows:


52.213-4  Terms and Conditions--Simplified Acquisitions (Other Than 
Commercial Items).

* * * * *

Terms and Conditions--Simplified Acquisitions (Other Than Commercial 
Items) (Date)

* * * * *
    (b) * * *
    (1) * * *
    (xi) 52.247-64, Preference for Privately Owned U.S.-Flag 
Commercial Vessels (DATE)(46 U.S.C. 1241). (Applies to supplies 
transported by ocean vessels.)
* * * * *
    5. Amend section 52.247-64 to revise the date of the clause; revise 
paragraph (d); remove paragraph (e)(1); and redesignate paragraphs 
(e)(2) through (e)(4) as (e)(1) to (e)(3), respectively. The revised 
text reads as follows:


52.247-64  Preference for Privately Owned U.S.-Flag Commercial Vessels

* * * * *

Preference for Privately Owned U.S.-Flag Commercial Vessels (Date)

* * * * *
    (d)(1) Except as provided in paragraph (d)(2) of this clause, 
the Contractor shall insert the substance of this clause, including 
this paragraph (d), in all subcontracts or purchase orders under 
this contract.
    (2) Unless this is a contract for ocean transportation services, 
the Contractor is not required to insert the substance of this 
clause in subcontracts under this contract for the

[[Page 37641]]

acquisition of commercial items or commercial components.
* * * * *
[FR Doc. 99-17520 Filed 7-9-99; 8:45 am]
BILLING CODE 6820-EP-P