[Federal Register Volume 65, Number 80 (Tuesday, April 25, 2000)]
[Rules and Regulations]
[Page 24324]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-10135]



[[Page 24324]]

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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 47 and 52

[FAC 97-17; FAR Case 1998-604 (98-604); Item V]
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: Final rule.

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SUMMARY: The Civilian Agency Acquisition Council and the Defense 
Acquisition Regulations Council (Councils) have agreed on a final rule 
amending the Federal Acquisition Regulation (FAR) to apply the 
preference for U.S.-flag vessels to contracts awarded using simplified 
acquisition procedures.

DATES: Effective Date: June 26, 2000.
    Applicability Date: The FAR, as amended by this rule, is applicable 
to solicitations issued on or after June 26, 2000.

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 FAC 97-17, FAR case 1998-604.

SUPPLEMENTARY INFORMATION:   

A. Background

    The Councils published a proposed rule in the Federal Register on 
July 12, 1999 (64 FR 37640). Five respondents submitted public comments 
on the proposed rule. The Councils considered all public comments in 
the formulation of the final rule.
    This rule amends the FAR as follows:
     Applies the preference for U.S.-flag vessels to contracts 
awarded using simplified acquisition procedures (47.504, 52.213-4, and 
52.247-64).
     Adds to the clause at 52.212-5, Contract Terms and 
Conditions Required to Implement Statutes or Executive Orders--
Commercial Items, Alternate I to 52.247-64, Preference for Privately 
Owned U.S.-Flag Commercial Vessels.
    The final rule does not incorporate in the clause at 52.247-64 the 
exception at 47.504(e) for subcontracts for commercial items or 
commercial components. The Councils will address this issue under FAR 
case 1999-024, Preference for U.S.-Flag Vessels--Subcontracts for 
Commercial Items.
    This rule was not subject to Office of Management and Budget review 
under Section 6(b) of Executive Order 12866, Regulatory Planning and 
Review, dated September 30, 1993. This rule is not a major rule under 5 
U.S.C. 804.

B. Regulatory Flexibility Act

    The Department of Defense, the General Services Administration, and 
the National Aeronautics and Space Administration certify 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 ocean 
transportation companies are large business concerns. This rule does 
not apply to acquisitions by the Department of Defense.

C. Paperwork Reduction Act

    The Paperwork Reduction Act applies. The information collection 
requirements of the clause at FAR 52.247-64 have been approved under 
OMB Control Number 9000-0061, which also covers clauses at 52.247-6, 
52.247-29 through 52.247-44, 52.247-48, 52.247-52, and 52.247-57. FAR 
52.247-64 requires contractors to submit a legible copy of the on-board 
ocean bill of lading for each shipment to the contracting officer and 
the Maritime Administration. This rule makes 52.247-64 applicable to 
acquisitions below the simplified acquisition threshold. However, these 
respondents are already required to submit some form of bill of lading 
under 52.247-29 through 52.247-44. We estimate an increased number of 
responses per respondent (21), but a decreased number of hours per 
response (.05), resulting in no change to the number of respondents 
(65,000) and total response hours (65,780).

List of Subjects in 48 CFR Parts 47 and 52

    Government procurement.

    Dated: April 13, 2000.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.

    Therefore, DoD, GSA, and NASA amend 48 CFR parts 47 and 52 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


47.504  [Amended]

    2. In section 47.504, remove paragraph (d) and redesignate 
paragraph (e) as (d).

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

    3. In section 52.212-5, 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 Statutes 
or Executive Orders--Commercial Items.

* * * * *

Contract Terms and Conditions Required To Implement Statutes or 
Executive Orders--Commercial Items (June 2000)

* * * * *
    (b) * * *
    __ (26)(ii) Alternate I of 52.247-64.
* * * * *

    4. In section 52.213-4, 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) (June 2000)

* * * * *
    (b) * * *
    (1) * * *
    (xi) 52.247-64, Preference for Privately Owned U.S.-Flag 
Commercial Vessels (June 2000) (46 U.S.C. 1241). (Applies to 
supplies transported by ocean vessels.)

* * * * *

    5. In section 52.247-64, revise the date of the clause and 
paragraph (d); and remove paragraph (e)(1) and redesignate paragraphs 
(e)(2) through (e)(4) as (e)(1) through (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 (June 2000)

* * * * *
    (d) The Contractor shall insert the substance of this clause, 
including this paragraph (d), in all subcontracts or purchase orders 
under this contract.
* * * * *
[FR Doc. 00-10135 Filed 4-24-00; 8:45 am]
BILLING CODE 6820-EP-P