[Federal Register Volume 76, Number 81 (Wednesday, April 27, 2011)]
[Rules and Regulations]
[Pages 23505-23506]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-10094]



Defense Acquisition Regulations System

48 CFR Part 232

RIN 0750-AH19

Defense Federal Acquisition Regulation Supplement; Accelerate 
Small Business Payments (DFARS Case 2011-D008)

AGENCY: Defense Acquisition Regulations System, Department of Defense 

ACTION: Interim rule with request for comments.


SUMMARY: DoD is issuing an interim rule amending the Defense Federal 
Acquisition Regulation Supplement (DFARS) to accelerate payments to all 
small business concerns.

DATES: The interim rule is effective April 27, 2011. Comments on the 
interim rule should be submitted in writing to the address shown below 
on or before June 27, 2011, to be considered in the formation of the 
final rule.

ADDRESSES: Submit comments, identified by DFARS Case 2011-D008, using 
any of the following methods:
    [cir] Regulations.gov: http://www.regulations.gov.
    Submit comments via the Federal eRulemaking portal by inputting 
``DFARS Case 2011-D008'' under the heading ``Enter keyword or ID'' and 
selecting ``Search.'' Select the link ``Submit a Comment'' that 
corresponds with ``DFARS Case 2011-D008.'' Follow the instructions 
provided at the ``Submit a Comment'' screen. Please include your name, 
company name (if any), and ``DFARS Case 2011-D008'' on your attached 
    [cir] E-mail: [email protected]. Include DFARS Case 2011-D008 in the 
subject line of the message.
    [cir] Fax: 703-602-0350.
    [cir] Mail: Defense Acquisition Regulations System, Attn: Ms. Lee 
Renna, OUSD (AT&L) DPAP/DARS, Room 3B855, 3060 Defense Pentagon, 
Washington, DC 20301-3060.
    Comments received generally will be posted without change to http://www.regulations.gov, including any personal information provided. To 
confirm receipt of your comment(s), please check http://www.regulations.gov approximately two to three days after submission to 
verify posting (except allow 30 days for posting of comments submitted 
by mail). Follow the instructions for submitting comments.



I. Background

    DoD is amending the DFARS to accelerate payments for all small 
business concerns. Currently, DoD assists small disadvantaged business 
concerns by paying them as quickly as possible after invoices are 
received and before the normal payment due dates established in the 
contract. This interim rule removes the term ``disadvantaged'' from the 
language at DFARS 232.903 and DFARS 232.906(a)(ii), thereby extending 
this payment policy uniformly to all small business concerns.

II. Executive Order 12866 and Executive Order 13563

    Executive Orders 12866 and 13563 direct agencies to assess all 
costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). Executive 
Order 13563 emphasizes the importance of quantifying both costs and 
benefits, of reducing costs, of harmonizing rules, and of promoting 
flexibility. This is not a significant regulatory action and, 
therefore, was not subject to 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.

III. Regulatory Flexibility Act

    DoD expects this rule to have a significant positive economic 
impact on all small entities within the meaning of the Regulatory 
Flexibility Act, 5 U.S.C. 601, et seq., because it extends accelerated 
payments to all small business concerns. An initial regulatory 
flexibility analysis has been completed and is summarized as follows:
    This interim rule revises DFARS 232.903 and 232.906(a)(ii) to allow 
accelerated payments to all small business concerns. This rule allows 
DoD to exercise greater flexibility offered by 5 CFR 1315.5 and FAR 
32.903 which permit the use of accelerated payment procedures for small 
business concerns.
    Analysis of the Federal Procurement Data System indicates that 
approximately 60,000 small businesses had active contracts in Fiscal 
Year 2010. It is reasonable to assume a similar number of small 
businesses will be positively affected by the use of accelerated 
payment procedures.
    There are no information collection requirements associated with 
this rule. This rule does not duplicate, overlap, or conflict with any 
other Federal rules.
    The desired outcome is best achieved by the implementation of the 
rule as stated herein and there are no other alternatives available to 
achieve the desired outcome. This rule is expected to have a positive 
impact on small entities.
    DoD invites comments from small business concerns and other 
interested parties on the expected impact of this rule on small 
    DoD will also consider comments from small entities concerning the 
existing regulations in subparts affected by this rule in accordance 
with 5 U.S.C. 610. Interested parties must submit such comments 
separately and should cite 5 U.S.C. 610 (DFARS Case 2011-D008) in 

IV. Paperwork Reduction Act

    This final rule does not contain any information collection 
requirements that require the approval of the Office of Management and 
Budget under the Paperwork Burden Act (44 U.S.C. chapter 35).

V. Determination to Issue an Interim Rule

    A determination has been made under the authority of the Secretary 
of Defense (DoD) that urgent and compelling circumstances exist to 
promulgate this interim rule without prior opportunity for public 
comments pursuant to 41 U.S.C. 1707 and FAR 1.501-3(b). This action is 
necessary to ensure DoD implements cash flow improvements for small 
business firms as quickly as possible. Accelerating payments is a way 
to boost the financial health of small businesses. At present, the 
authority to accelerate payments at DFARS 232.903 and 232.906 is 

[[Page 23506]]

to small disadvantaged business. Implementation of the interim rule 
will expand that authority to the entire community of DoD's small 
business suppliers. However, DoD will consider public comments received 
in response to this interim rule in the formation of the final rule.

List of Subjects in 48 CFR Part 232

    Government procurement.

Mary Overstreet,
Editor, Defense Acquisition Regulations System.

    Therefore, 48 CFR part 232 is amended as follows:


1. The authority citation for 48 CFR part 232 continues to read as 

    Authority:  41 U.S.C. 1303 and 48 CFR chapter 1.

2. Revise section 232.903 to read as follows:

232.903  Responsibilities.

    DoD policy is to assist small business concerns by paying them as 
quickly as possible after invoices and all proper documentation, 
including acceptance, are received and before normal payment due dates 
established in the contract (see 232.906(a)).

232.906  (Amended)

3. Amend section 232.906(a)(ii) by removing the word ``disadvantaged''.
[FR Doc. 2011-10094 Filed 4-26-11; 8:45 am]