[Federal Register Volume 75, Number 153 (Tuesday, August 10, 2010)]
[Rules and Regulations]
[Pages 48278-48279]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-19672]


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DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Parts 215, 231, and 252

[DFARS Case 2006-D057]


Defense Federal Acquisition Regulation Supplement; Excessive 
Pass-Through Charges

AGENCY: Defense Acquisition Regulations System, Department of Defense 
(DoD).

ACTION: Final rule.

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SUMMARY: DoD is issuing a final rule to delete the DFARS language 
implementing section 852 of the National Defense Authorization Act for 
Fiscal Year 2007 that ensures that pass-through charges on contracts or 
subcontracts that are entered into for or on behalf of DoD are not 
excessive in

[[Page 48279]]

relation to the cost of work performed by the relevant contractor or 
subcontractor. The interim DFARS rule language, which implements the 
requirements of section 852, was made obsolete with the publication of 
the FAR interim rule at 74 FR 52853 on October 14, 2009.

DATES: Effective Date: August 10, 2010.

FOR FURTHER INFORMATION CONTACT: Mr. Mark Gomersall, Defense 
Acquisition Regulations System, OUSD (AT&L) DPAP (DARS), Room 3B855, 
3060 Defense Pentagon, Washington, DC 20301-3060. Telephone 703-602-
0302; facsimile 703-602-0350. Please cite DFARS Case 2006-D057.

SUPPLEMENTARY INFORMATION:

A. Background

    Section 852 of the National Defense Authorization Act (NDAA) for 
Fiscal Year 2007 required DoD to prescribe regulations to ensure that 
pass-through charges on contracts or subcontracts that are entered into 
for or on behalf of DoD are not excessive in relation to the cost of 
work performed by the relevant contractor or subcontractor. DoD 
published an interim rule at 72 FR 20758 on April 26, 2007, to amend 
the DFARS to include a solicitation provision and contract clause in 
DoD contracts to implement the requirements of section 852.
    Fourteen sources submitted comments on the interim rule. Public 
comments were addressed in a second interim rule published at 73 FR 
27464 on May 13, 2008, when the interim rule language was revised in 
response to comments received. DoD determined at that time that it did 
not expect the rule to have a significant impact on a substantial 
number of small entities within the meaning of the Regulatory 
Flexibility Act, 5 U.S.C. 601, et seq. FAR interim rule 2008-031, 
published at 74 FR 52853 on October 14, 2009, implemented the 
requirements of section 866 of the NDAA for FY09 on the issue of 
excessive pass-through charges. The FAR rule language is duplicative of 
the interim DFARS rule language implementing section 852.
    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 removes interim rule DFARS language made obsolete 
by publication of FAR rule language on October 14, 2009. Therefore, the 
Regulatory Flexibility Act does not apply to this final rule because it 
does not constitute a significant DFARS revision within the meaning of 
41 U.S.C. 418b and FAR 1.501, and publication for public comment was 
not required.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the rule does 
not impose additional 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 215, 231, and 252

    Government procurement.

Ynette R. Shelkin,
Editor, Defense Acquisition Regulations System.

0
Therefore, 48 CFR parts 215, 231, and 252 are amended as follows:
0
1. The authority citation for 48 CFR parts 215, 231, and 252 continues 
to read as follows:

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

PART 215--CONTRACTING BY NEGOTIATION


215.408  [Amended]

0
2. Section 215.408 is amended by removing paragraphs (3) and (4).

PART 231--CONTRACT COST PRINCIPLES AND PROCEDURES


231.201-2  [Removed]

0
3. Section 231.201-2 is removed.


231.203  [Removed]

0
4. Section 231.203 is removed.

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES


252.217-7003  [Removed and Reserved]

0
5. Section 252.217-7003 is removed and reserved.


252.217-7004  [Removed and Reserved]

0
6. Section 252.217-7004 is removed and reserved.

[FR Doc. 2010-19672 Filed 8-9-10; 8:45 am]
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