[Federal Register Volume 77, Number 19 (Monday, January 30, 2012)]
[Proposed Rules]
[Pages 4637-4638]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-1494]

Federal Register / Vol. 77 , No. 19 / Monday, January 30, 2012 / 
Proposed Rules

[[Page 4637]]



Defense Acquisition Regulations System

48 CFR Parts 212, 242, 247, 252, and 253

RIN 0750-AH53

Defense Federal Acquisition Regulation Supplement: Shipping 
Instructions (DFARS Case 2011-D052)

AGENCY: Defense Acquisition Regulations System, Department of Defense 

ACTION: Proposed rule.


SUMMARY: DoD is proposing to amend the Defense Federal Acquisition 
Regulation Supplement (DFARS) to update the form used by contractors to 
request shipping instructions and the associated contract clause and 
clause prescription to cover both commercial and Government bills of 
lading, and to relocate the coverage within the DFARS.

DATES: Comment Date: Comments on the proposed rule should be submitted 
in writing to the address shown below on or before March 30, 2012, to 
be considered in the formation of a final rule.

ADDRESSES: Submit comments identified by DFARS Case 2011-D052, using 
any of the following methods:
    [cir] Regulations.gov: http://www.regulations.gov. Submit comments 
via the Federal eRulemaking portal by inserting ``DFARS Case 2011-
D052'' under the heading ``Enter keyword or ID'' and selecting 
``Search.'' Select the link ``Submit a Comment'' that corresponds with 
``DFARS Case 2011-D052.'' Follow the instructions provided at the 
``Submit a Comment'' screen. Please include your name, company name (if 
any), and ``DFARS Case 2011-D052'' on your attached document.
    [cir] Email: [email protected]. Include DFARS Case 2011-D052 in the 
subject line of the message.
    [cir] Fax: (703) 602-0350.
    [cir] Mail: Defense Acquisition Regulations System, Attn: Meredith 
Murphy, 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 www.regulations.gov, 
approximately two to three days after submission to verify posting 
(except allow 30 days for posting of comments submitted by mail).

FOR FURTHER INFORMATION CONTACT: Meredith Murphy, telephone (703) 602-


I. Background

    Since 1991, DoD has used the clause at DFARS 252.242-7003, 
Application for U.S. Government Shipping Documentation/Instructions, to 
instruct contractors to use the DD Form 1659, entitled ``Application 
for U.S. Government Shipping Documentation/Instructions,'' to request 
instructions for shipment from the Transportation Officer or contract 
administration office. In recent years, however, DoD primarily uses 
commercial bills of lading (with some exceptions for international 
shipments, noncontiguous domestic trade shipments, and/or customs 
considerations) where use of Government bills of lading is appropriate. 
Therefore, the preferred term is ``bill(s) of lading,'' which includes 
both commercial and Government bills of lading.
    FAR Case 2002-005, published as a final rule on April 19, 2006, 
moved FAR subpart 42.14, Traffic and Transportation Management, to FAR 
part 47, Transportation. As a result of publication of FAR Case 2002-
005, this rule proposes to delete or relocate material, as necessary, 
from DFARS 242.14, by--
     Relocating the clause prescription at DFARS 242.1404-2-70 
to DFARS 247.207, with revisions that will simplify and clarify 
requirements for use of the DFARS clause, and removing the obsolete 
clause prescription at DFARS 242.1404-2 because the prescribed clauses 
are no longer required;
     Including the clause prescription for DFARS 252.247-70XX 
in DFARS 212.301, as this clause is applicable under commercial 
     Relocating the clause to DFARS 252.247-70XX from its 
current location in DFARS 252.242-7003, to align with the relocation of 
related DFARS coverage on transportation and related services, and 
deleting the single word ``Government'' in both the clause and the DD 
Form 1659;
     Removing the obsolete requirement to use the DD Form 1659 
when using the clauses at FAR 52.242-10, F.o.b. Origin--Government 
Bills of Lading or Prepaid Postage, or 52.242-11, F.o.b. Origin--
Government Bills of Lading or Indicia Mail;
     Relocating the shipping instructions at DFARS 242.1403 to 
DFARS 247.101(h), and deleting the obsolete shipping instructions; and
     Removing DFARS 242.1405, as this same reference is 
included in FAR 47.207-10.
    The DD Form 1659 will also be corrected to replace the word 
``contractor'' with ``commercial'' when expanding the term Commercial 
and Government Entity (CAGE) Code in the legend. The term ``continental 
United States'' will be corrected to ``contiguous United States.''

II. Executive Orders 12866 and 13563

    Executive Orders (E.O.s) 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). E.O. 
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 E.O. 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 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 there are no 
substantive changes being made by this rule. The rule proposes only to 
delete the word ``Government'' in front of ``Bill(s) of Lading'' in the 
DD Form 1659 and the associated clause at DFARS 252.247-70XX 
(previously DFARS 252.242-7003) in order to clarify that the DD Form 
1659 can be used to request a bill of lading that inputs these 
shipments into the Defense Transportation System. The purpose of this 
form is to obtain shipping instructions, a common practice that has 
been in effect since 1991, and does not impose an additional hardship 
on any entity. Many services/agencies have moved toward an electronic 
environment eliminating the need to submit the DD Form 1659, 
Application for U.S. Government Shipping Documentation/Instructions. In 
these instances, shipment requests are obtained through an automated 
    Therefore, an initial regulatory flexibility analysis has not been 
performed. However, DoD invites comments from small business concerns 
and other interested parties on the

[[Page 4638]]

expected impact of this rule on small entities.
    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-D052), in 

IV. Paperwork Reduction Act

    This rule contains information collection requirements in the 
clause at DFARS 252.247-70XX, Application for U.S. Government Shipping 
Documentation/Instructions, and the associated form, DD Form 1659, 
Application for U.S. Government Shipping Documentation/Instructions 
(previously, the clause at DFARS 252.242-7003), currently approved 
through March 31, 2013, under OMB Control Number 0704-0250, titled 
DFARS part 242, Contract Administration and Audit Services, in 
accordance with the Paperwork Reduction Act (44 U.S.C. chapter 35). The 
reduction in paperwork burden realized through use of electronic 
request systems is negligible because preparation of the DD Form 1659, 
a common practice since 1991, is not a significant administrative 
burden. Additionally, there is a negligible impact on paperwork burden 
resulting from revisions to the DD form, because only the single word 
``Government,'' in front of ``Bill(s) of Lading'' is being revised, and 
two terms are being updated. There are no substantive changes being 
made either to the form or to the associated clause at DFARS 252.247-

List of Subjects in 48 CFR Parts 212, 242, 247, 252, and 253

    Accounting, Government procurement.

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

    Therefore, DoD proposes to amend 48 CFR parts 212, 242, 247, 252, 
and 253 as follows:
    1. The authority citation for 48 CFR parts 212, 242, 247, 252, and 
253 is revised to read as follows:

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


    2. In section 212.301, add paragraph (f)(iv)(N) to read as follows:

212.301  Solicitation provisions and contract clauses for the 
acquisition of commercial items.

    (f) * * *
    (iv) * * *
    (N) Use the clause at 252.247-70XX, Application for U.S. Government 
Shipping Documentation/Instructions, as prescribed in 247.207.
* * * * *


Subpart 242.14--[Removed]

    3. Remove subpart 242.14.


    4. Add subpart 247.1, consisting of section 247.101, to read as 

Subpart 247.1--General

247.101  Policies

    (h) Shipping documents covering f.o.b. origin shipments. (i) 
Procedures for the contractor to obtain bills of lading are in the 
clause at 252.247-70XX, Application for U.S. Government Shipping 
    (ii) The term ``commercial bills of lading'' includes the use of 
any commercial form or procedure.
    5. Revise section 247.207 to read as follows:

247.207  Solicitation provisions, contract clauses, and special 

    (1) Use the clause at 252.247-7003, Pass-Through of Motor Carrier 
Fuel Surcharge Adjustment to the Cost Bearer, in solicitations and 
contracts for carriage, including acquisitions of commercial items, in 
which a motor carrier, broker, or freight forwarder will provide or 
arrange truck transportation services that provide for a fuel-related 
    (2) Use the clause at 252.247-70XX, Application for U.S. Government 
Shipping Documentation/Instructions, in solicitations and contracts, 
including acquisitions of commercial items, when shipping under Bills 
of Lading and Domestic Route Order under f.o.b. origin contracts, 
Export Traffic Release regardless of f.o.b. terms, or foreign military 
sales shipments.
    6. In subpart 247.2, add sections 247.207-11 and 247.207-70 to read 
as follows:

247.207-11  Volume movements within the contiguous United States.

    For reporting of volume movements within the contiguous United 
States, follow the procedures at PGI 247.207-11.

247.207-70  Demurrage and detention charges.

    Follow the procedures for demurrage and detention charges at PGI 


252.242-7003  [Removed and Reserved]

    7. Section 252.242-7003 is removed and reserved.
    8. Section 252.247-70XX is added to read as follows:

252.247-70XX  Application for U.S. Government Shipping Documentation/

    As prescribed in 247.207, use the following clause:


    (a) Except as provided in paragraph (b) of this clause, the 
Contractor shall request bills of lading by submitting a DD Form 
1659, Application for U.S. Government Shipping Documentation/
Instructions, to the--
    (1) Transportation Officer, if named in the contract schedule; 
    (2) Contract administration office.
    (b) If an automated system is available for shipment requests, 
use service/agency systems (e.g., Navy's Global Freight Management-
Electronic Transportation Acquisition (GFM-ETA) and Financial Air 
Clearance Transportation System (FACTS) Shipment Processing Module, 
Air Force's Cargo Movement Operations System, DCMA's Shipment 
Instruction Request (SIR) e-Tool application, and DLA's Distribution 
Standard System Vendor Shipment Module) in lieu of DD Form 1659.

(End of clause)

[FR Doc. 2012-1494 Filed 1-27-12; 8:45 am]