[Federal Register Volume 67, Number 226 (Friday, November 22, 2002)]
[Proposed Rules]
[Pages 70389-70390]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-29465]



48 CFR Part 252

[DFARS Case 2002-D013]

Defense Federal Acquisition Regulation Supplement; Indian 
Incentive Clause--Contract Types

AGENCY: Department of Defense (DoD).

ACTION: Proposed rule with request for comments.


SUMMARY: DoD is proposing to amend the Defense Federal Acquisition 
Regulation Supplement (DFARS) to clarify that the clause permitting 
incentive payments for use of Indian organizations as subcontractors 
may be used in all contract types.

DATES: DoD will consider all comments received by January 21, 2003.

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 2002-D013 in the subject line of e-mailed 
    Respondents that cannot submit comments using either of the above 
methods may submit comments to: Defense Acquisition Regulations 
Council, Attn: Ms. Angelena Moy, OUSD(AT&L)DPAP(DAR), IMD 3C132, 3062 
Defense Pentagon, Washington, DC 20301-3062; facsimile (703) 602-0350. 
Please cite DFARS Case 2002-D013.
    At the end of the comment period, interested parties may view 
public comments on the World Wide Web at http://emissary.acq.osd.mil/dar/dfars.nsf.

FOR FURTHER INFORMATION CONTACT: Ms. Angelena Moy, (703) 602-1302.


A. Background

    The clause at DFARS 252.226-7001, Utilization of Indian 
Organizations and Indian-Owned Economic Enterprises--DoD Contracts, 
provides for incentive payments to contractors, and subcontractors at 
any tier, that use Indian organizations and Indian-owned economic 
enterprises as subcontractors. Paragraph (e) of the clause presently 
addresses incentive payments under cost-type, cost-plus-incentive-fee, 
fixed-price incentive, and firm-fixed-price contracts. Application of 
the Indian Incentive Program is not limited to these contract types; 
therefore, this proposed rule eliminates the references to contract 
types to avoid any misconceptions regarding contract types that are not 
    This rule was not subject to Office of Management and Budget review 
under Executive Order 12866, dated September 30, 1993.

B. Regulatory Flexibility Act

    DoD does not expect this rule 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 the rule is 
a clarification of existing policy regarding the Indian Incentive 
Program. 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 subpart in accordance with 5 
U.S.C. 610. Such comments should be submitted separately and should 
cite DFARS Case 2002-D013.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the 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 Part 252

    Government procurement.

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

    Therefore, DoD proposes to amend 48 CFR Part 252 as follows:
    1. The authority citation for 48 CFR Part 252 continues to read as 

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

[[Page 70390]]


    2. Section 252.226-7001 is amended by revising the clause date and 
paragraph (e) to read as follows:

252.226-7001  Utilization of Indian Organizations and Indian-Owned 
Economic Enterprises--DoD Contracts.

* * * * *

Utilization of Indian Organizations and Indian-Owned Economic 
Enterprises--DOD Contracts (XXX 2002)

* * * * *
    (e)(1) The Contractor, on its own behalf or on behalf of a 
subcontractor at any tier, may request an adjustment under the 
Indian Incentive Program.
    (2) The amount of the adjustment that may be requested is 5 
percent of the estimated cost, target cost, or fixed price included 
in the subcontract at the time of award to the Indian organization 
or Indian-owned economic enterprise.
    (3) The Contractor has the burden of proving the amount claimed 
and must assert its request for an adjustment prior to completion of 
contract performance.
    (4) The Contracting Officer, subject to the terms and conditions 
of the contract and the availability of funds, will authorize an 
incentive payment of 5 percent of the estimated cost, target cost, 
or fixed price included in the subcontract awarded to the Indian 
organization or Indian-owned economic enterprise.
* * * * *
[FR Doc. 02-29465 Filed 11-21-02; 8:45 am]