[Federal Register Volume 64, Number 177 (Tuesday, September 14, 1999)]
[Rules and Regulations]
[Pages 49684-49685]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-23731]


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DEPARTMENT OF DEFENSE

48 CFR Parts 237 and 252

[DFARS Case 99-D018]


Defense Federal Acquisition Regulation Supplement; Officials Not 
To Benefit Clause

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 update the formats used for educational service agreements and 
patent license contracts to reflect the removal of the Officials Not to 
Benefit clause from the Federal Acquisition Regulation (FAR).

EFFECTIVE DATE: September 14, 1999.

FOR FURTHER INFORMATION CONTACT: Ms. Kathleen Fenk, Defense Acquisition 
Regulations Council, PDUSD (A&T) DP (DAR), IMD 3D139, 3062 Defense 
Pentagon, Washington, DC 20301-3062. Telephone (703) 602-0296; telefax 
(703) 602-0350. Please cite DFARS Case 99-D018.

SUPPLEMENTARY INFORMATION: 

A. Background

    This final rule amends the format for educational service 
agreements at DFARS 237.7204, and the Patent License and Release 
Contract clause at DFARS 252.227-7012, to remove references to the 
clause at FAR 52.203-1, Officials Not to Benefit. The clause at FAR 
52.203-1 was removed from the FAR on September 19, 1995 (60 FR 37773, 
July 21, 1995). This rule also makes other minor editorial changes to 
update the DFARS text at 237.7204 and 252.227-7012.
    This rule was not subject to Office of Management and Budget review 
under Executive Order 12866, dated September 30, 1993.

B. Regulatory Flexibility Act

    This final rule does not constitute a significant revision within 
the meaning of FAR 1.501 and Public Law 98-577 and publication for 
public comment is not required. However, DoD will consider comments 
from small entities concerning the affected DFARS subparts in 
accordance with 5 U.S.C. 610. Such comments should cite DFARS Case 99-
D018.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because this 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 237 and 252

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

    Therefore, 48 CFR Parts 237 and 252 are amended as follows:
    1. The authority citation for 48 CFR Parts 237 and 252 continues to 
read as follows:

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

PART 237--SERVICE CONTRACTING

    2. Section 237.7204 is amended by revising the text under the 
heading ``General Provisions'' to read as follows:


237.7204  Format and clauses for educational service agreements.

* * * * *

General Provisions

    Use the following clauses in educational service agreements:
    1. FAR 52.202-1, Definitions, and add the following paragraphs 
(h) through (m).
    (h) ``Term'' means the period of time into which the Contractor 
divides the academic year for purposes of instruction. This includes 
``semester,'' ``trimester,'' ``quarter,'' or any similar word the 
Contractor may use.
    (i) ``Cause'' means a series of lectures or instructions, and 
laboratory periods, relating to one specific representation of 
subject matter, such as Elementary College Algebra, German 401, or 
Surveying. Normally, a student completes a course in one term and 
receives a certain number of semester hours credit (or equivalent) 
upon successful completion.
    (j) ``Curriculum'' means a series of courses having a unified 
purpose and belonging primarily to one major academic field. It will 
usually include certain required courses and elective courses within 
established criteria. Examples include Business Administration, 
Civil Engineering, Fine and Applied Arts, and Physics. A curriculum 
normally covers more than one term and leads to a degree or diploma 
upon successful completion.
    (k) ``Catalog'' means any medium by which the Contractor 
publicly announces terms and conditions for enrollment in the 
Contractor's institution, including tuition and fees to be charged. 
This includes ``bulletin,'' ``announcement,'' or any other similar 
word the Contractor may use.
    (l) ``Tuition'' means the amount of money charged by an 
educational institution for instruction, not including fees.
    (m) ``Fees'' means those applicable charge directly related to 
enrollment in the Contractor's institution. Unless specifically 
allowed in the request for services, fees shall not include--
    (1) Any permit charge, such as parking and vehicle registration; 
or
    (2) Charges for services of a personal nature, such as food, 
housing, and laundry.
    2. FAR 52.203-3, Gratuities.
    3. FAR 52.203-5, Covenant Against Contingent Fees.
    4. FAR 52.204-1, Approval of Contract, if required by 
department/agency procedures.
    5. FAR 52.215-2, Audit and Records--Negotiation.
    6. FAR 52.215-8, Order of Precedence--Uniform Contract Format.
    7. Conflicts Between Agreement and Catalog. Insert the following 
clause:

Conflicts Between Agreement and Catalog

    If there is any inconsistency between this agreement and any 
catalog or other document incorporated in this agreement by 
reference or any of the Contractor's rules and regulations, the 
provisions of this agreement shall govern.
    8. FAR 52.222-3, Convict Labor.
    9. Under FAR 22.802, FAR 22.807, and FAR 22.810, use the 
appropriate clause from FAR 52.222-26, Equal Opportunity.
    10. FAR 52.233-1, Disputes.
    11. Assignment of Claims. Insert the following clause:

Assignment of Claims

    No claim under this agreement shall be assigned.
    12. FAR 52.252-4, Alterations in Contract, if required by 
department/agency procedures.

Signature Page

Agreement No.----------------------------------------------------------
Date-------------------------------------------------------------------

The United States of America
By:--------------------------------------------------------------------
    (Contracting Officer)
Activity---------------------------------------------------------------
Location---------------------------------------------------------------
        (Name of Contractor)

[[Page 49685]]

By:--------------------------------------------------------------------
(Title)----------------------------------------------------------------

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

    3. Section 252.227-7012 is revised to read as follows:


252.227-7012  Patent license and release contract.

    As prescribed at 227.7012, insert the following clause in patent 
releases, license agreements, and assignments:
----------------------------------------------------------------------
(Contract No.)

Patent License and Release Contract (Sep 1999)

    This CONTRACT is effective as of the ____ day of [month, year], 
between the UNITED STATES OF AMERICA (hereinafter called the 
Government), and __________ (hereinafter called the Contractor), (a 
corporation organized and existing under the laws of the State of 
__________), (a partnership consisting of __________), (an 
individual trading as __________), of the City of __________, in the 
State of __________.
    Whereas, the Contractor warrants that it has the right to grant 
the within license and release, and the Government desires to 
procure the same, and
    Whereas, this contract is authorized by law, including 10 U.S.C. 
2386.
    Now Therefore, in consideration of the grant, release and 
agreements hereinafter recited, the parties have agreed as follows:
    Article 1. License Grant.*
    (Insert the clause at 252.227-7004 for a paid up license, or the 
clause at 252.227-7006 for a license on a running royalty basis.)
    Article 2. License Term.*
    (Insert the appropriate alternative clause at 252.227-7005 for a 
paid up license, or the clause at 252.227-7007 for a license on a 
running royalty basis.)
    Article 3. Release of Past Infringement.
    (Insert the clause at 252.227-7001.)
    Article 4. Non-Estoppel.
    (Insert the clause at 252.227-7000.)
    Article 5. Payment.
    The Contractor shall be paid the sum of ______ Dollars ($______) 
in full compensation for the rights herein granted and agreed to be 
granted. (For a license on a running royalty basis, insert the 
clause at 252.227-7006 in accordance with the instructions therein, 
and also the clause as specified at 252.227-7002 and 252.227-7009 
and 252.227-7010.)
    Article 6. Covenant Against Contingent Fees.
    (Insert the clause at FAR 52.203-5.)
    Article 7. Assignment of Claims.
    (Insert the clause at FAR 52.232-23.)
    Article 8. Gratuities.
    (Insert the clause at FAR 52.203-3.)
    Article 9. Disputes.
    (Insert the clause at FAR 52.233-1.)
    Article 10. Successors and Assignees.
    This Agreement shall be binding upon the Contractor, its 
successors** and assignees, but nothing contained in this Article 
shall authorize an assignment of any claim against the Government 
otherwise than as permitted by law.
    In Witness Whereof, the parties hereto have executed this 
contract.

THE UNITED STATES OF AMERICA
By---------------------------------------------------------------------
Date-------------------------------------------------------------------
(Signature and Title of
Contractor Representative)---------------------------------------------
By---------------------------------------------------------------------
Date-------------------------------------------------------------------

    *If only a release is procured, delete this article; if an 
assignment is procured, use the clause at 252.227-7011.
    **When the Contractor is an individual, change ``successors'' to 
``heirs''; if a partnership, modify appropriately.

(End of clause)

[FR Doc. 99-23731 Filed 9-13-99; 8:45 am]
BILLING CODE 5000-04-M