[Federal Register Volume 66, Number 176 (Tuesday, September 11, 2001)]
[Proposed Rules]
[Pages 47153-47154]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-22427]


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DEPARTMENT OF DEFENSE

48 CFR Parts 213, 247, and 252

[DFARS Case 2000-D014]


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

AGENCY: Department of Defense (DoD).

ACTION: Proposed rule with request for comments.

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SUMMARY: DoD is proposing to amend the Defense Federal Acquisition 
Regulation Supplement (DFARS) to specify that requirements for use of 
U.S. -flag vessels, in the transportation of supplies by sea, apply to 
contracts at or below the simplified acquisition threshold as well as 
those that exceed the simplified acquisition threshold.

DATES: Comments on its proposed rule should be submitted to the address 
shown below on or before November 13, 2001 to be considered in the 
formation of the final rule.

ADDRESSES: Respondents may submit comments directly on the World Wide 
Web at http://emissary.acq.osd.mil/dar/dfars.nsf/pubcomm. As an 
alternative, respondents may e-mail comments to: [email protected]. 
Please cite DFARS Case 2000-D014 in the subject line of e-mailed 
comments.
    Respondents that cannot submit comments using either of the above 
methods may submit comments to: Defense Acquisition Regulations 
Council, Attn: Mr. Rick Layser, OUSD (AT&L)DP(DAR), IMD 3C132, 3062 
Defense Pentagon, Washington, DC 20301-3062; facsimile (703) 602-0350. 
Please cite DFARS Case 2000-D014.
    At the end of the comment period, interested parties may view 
public comments on the World Wide Web at

[[Page 47154]]

http://emissary.acq.oad.mil/dar/dfars.nsf.

FOR FURTHER INFORMATION CONTACT: Mr. Rich Layser, (703) 602-0293.

SUPPLEMENTARY INFORMATION:

A. Background

    The clause at DFARS 252.7023, Transportation of Supplies by Sea, 
contains requirements for use of U.S. -flag vessels when transporting 
supplies by sea under a DoD contract. The clause requires a contractor 
to (1) submit any request for use of other than U.S. -flag vessels in 
writing to the contracting officer; (2) provide a copy of the bill of 
lading to the contracting officer and the Maritime Administration after 
each shipment of supplies by sea; (3) provide with the final invoice a 
representation as to whether ocean transportation and U.S. -flag 
vessels were used in performance of the contract; and (4) include the 
clause in subcontracts for construction supplies, noncommercial items, 
and certain commercial items.
    The DFARS presently exempts contracts and subcontracts at or below 
the simplified acquisition threshold from use of the clause at 252.247-
7023. In accordance with 10 U.S.C. 2631, Supplies: Preference for 
United States Vessels, and regulations of the Maritime Administration 
at 46 CFR 381, the proposed rule would eliminate this exemption. 
Consistent with the provisions of 41 U.S.C. 427, Simplified Acquisition 
Procedures, the rule prescribes an alternate version of the clause for 
contracts and subcontracts at or below the simplified acquisition 
threshold. The alternate version excludes the requirement for a 
contractor or subcontractor to provide a representation regarding ocean 
transportation with its final invoice.
    This rule was not subject to Office of Management and Budget review 
under Executive Order 12866, dated September 30, 1993.

B. Regulatory Flexibility Act

    The 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 
entities that provide ocean transportation of freight are not small 
businesses. Therefore, DoD has not performed an initial regulatory 
flexibility analysis. DoD invites comments from small businesses and 
other interested parties. DoD also will consider comments from small 
entities concerning the affected DFARS subparts in accordance with 
5U.S.C. 610. Such comments should be submitted separately and should 
cite DFARS Case 2000-D014.

C. Paperwork Reduction Act

    The Paperwork Reduction Act applies. The proposed rule increases 
the number of contractors subject to the information collection 
requirements in paragraphs (d) and (e) of the clause at DFARS 252.247-
7023. DoD estimates that this change will increase paperwork burden by 
approximately 240 hours. The additional hours were included in the 
estimate published at 66 FR 9070 on February 6, 2001, under OMB Control 
Number 0704-0245.

List of Subjects in 48 CFR Parts 213, 247, and 252

    Government procurement.

Michele P. Peterson,
Executive Editor, Defense Acquisition Regulations Council.
    Therefore, DoD proposes to amend 48 CFR parts 213, 247, and 252 as 
follows:

    1. The authority citation for 48 CFR parts 213, 247, and 252 
continues to read as follows:

PART 213--SIMPLIFIED ACQUISITION PROCEDURES

    2. Section 213.301 is amended in paragraph (2)(i)(E) by removing 
the word ``and'', and by adding paragraph (2)(i)(G) to read as follows:


213.301  Governmentwide commercial purchase card.

* * * * *
    (2) * * *
    (i) * * *
    (G) Does not require transportation of supplies by sea; and
* * * * *

PART 247--TRANSPORTATION


247.572-1  [Amended]

    3. Section 247.572-1 is amended by removing paragraph (c) and 
redesignating paragraph (d) as paragraph (c).
    4. Section 247.573 is amended by revising paragraph (b)(1) and 
adding paragraph (b)(4) to read as follows:


247.573  Solicitation provision and contract clauses.

* * * * *
    (b)(1) Use the clause at 252.247-7023, Transportation of Supplies 
by Sea, in all solicitations and resultant contracts, except those for 
direct purchase of ocean transportation services.
* * * * *
    (4) Use the clause with its Alternate III in solicitations and 
contracts with an anticipated value at or below the simplified 
acquisition threshold.
* * * * *

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

    5. Section 252.247-7023 is amended by revising the clause date, 
paragraph (e) introductory text, paragraph (f) introductory text, and 
paragraph (h), and by adding Alternate III to read as follows:


252.247-7023  Transportation of Supplies by Sea.

* * * * *

Transportation of Supplies by Sea (XXX 2001)

* * * * *
    (e) The Contractor shall, within 30 days after each shipment 
covered by this clause, provide the Contracting Officer and the 
Maritime Administration, Office of Cargo Preference, U.S. Department 
of Transportation, 400 Seventh Street, SW., Washington, DC 20590, 
one copy of the rated on board vessel operating carrier's ocean bill 
of lading, which shall contain the following information:
* * * * *
    (f) The Contractor shall provide with its final invoice under 
this contract a representation that to the best of its knowledge and 
belief--
* * * * *
    (h) In the award of subcontracts for the types of supplies 
described in paragraph (b)(2) of this clause, the Contractor shall 
flow down the requirements of this clause as follows:
    (1) The Contractor shall insert the substance of this clause, 
including this paragraph (h), in subcontractors that exceed the 
simplified acquisition threshold in part 2 of the Federal 
Acquisition Regulation.
    (2) The Contractor shall insert the substance of paragraphs (a) 
through (e) of this clause, and this paragraph (h), in subcontracts 
that are at or below the simplified acquisition threshold in part 2 
of the Federal Acquisition Regulation.
* * * * *

Alternate III (XXX 2001)

    As prescribed in 247.573(b)(4), substitute the following 
paragraph (f) for paragraphs (f), (g), and (h) of the basic clause:
    (f) The Contractor shall insert the substance of this clause, 
including this paragraph (f), in subcontracts that are for a type of 
supplies described in paragraph (b)(2) of this clause.

[FR Doc. 01-22427 Filed 9-10-01; 8:45 am]
BILLING CODE 5000-04-M