[Federal Register Volume 77, Number 99 (Tuesday, May 22, 2012)]
[Rules and Regulations]
[Pages 30366-30367]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-11562]


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DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Part 204

RIN 0750-AH71


Defense Federal Acquisition Regulation Supplement: Contingency 
Contract Closeout (DFARS Case 2012-D014)

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

ACTION: Final rule.

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SUMMARY: DoD is issuing a final rule amending the Defense Federal 
Acquisition Regulation Supplement (DFARS) to require additional 
planning, monitoring, and executing activities for contract closeouts 
when the contracts are awarded for performance in contingency areas.

DATES: Effective Date: May 22, 2012.

FOR FURTHER INFORMATION CONTACT: Meredith Murphy, telephone 571-372-
6098.

SUPPLEMENTARY INFORMATION: 

I. Background

    DoD is amending the Defense Federal Acquisition Regulation 
Supplement (DFARS) to implement a recommendation made by the Government 
Accountability Office (GAO)report 11-891, ``CONTINGENCY CONTRACTING: 
Improved Planning and Management Oversight Needed to Address Challenges 
with Closing Contracts,'' dated August 23, 2011. The GAO recommended 
that DoD improve contract closeouts when the contracts are awarded for 
performance in contingency areas. The GAO recommended revising contract 
guidance to enhance advance planning for contingency contract 
closeouts. Additionally, the GAO advocated including a requirement that 
senior contracting officials monitor and assess the progress of 
contract closeout activities throughout the contingency operation.
    The DFARS is amended at 204.804 to implement key elements proposed 
by the GAO. The head of the contracting activity is required to assign 
the highest priority to contracts performed in a contingency area in 
order to reduce potential backlogs. Heads of contracting activities are 
responsible for supervising the progress of contingency contract 
closeout activities and taking appropriate steps if a backlog occurs.

II. Publication of This Final Rule for Public Comment Is Not Required 
by Statute

    ``Publication of proposed regulations,'' 41 U.S.C. 1707, is the 
statute which applies to the publication of the Federal Acquisition 
Regulation. Paragraph (a)(1) of the statute requires that a procurement 
policy, regulation, procedure, or form (including an amendment or 
modification thereof) must be published for public comment if it 
relates to the expenditure of appropriated funds, and has either a 
significant effect beyond the internal operating procedures of the 
agency issuing the policy, regulation, procedure, or form, or has a 
significant cost or administrative impact on contractors or offerors. 
This final rule is not required to be published for public comment 
because this amendment does not relate to the expenditure of 
appropriated funds, and has neither a significant effect beyond the 
internal operating procedures of DoD, or a significant cost or 
administrative impact on contractors or offerors. These requirements 
affect only the internal operating procedures of the Government.

III. 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.

IV. Regulatory Flexibility Act

    The Regulatory Flexibility Act does not apply to this rule because 
this final rule does not constitute a significant DFARS revision within 
the meaning of FAR 1.501-1 and 41 U.S.C. 1707 does not require 
publication for public comment.

[[Page 30367]]

V. Paperwork Reduction Act

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

List of Subjects in 48 CFR Part 204

    Government procurement.

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

    Therefore, 48 CFR part 204 is amended to read as follows:

PART 204--ADMINISTRATIVE MATTERS

0
1. The authority citation for 48 CFR part 204 continues to read as 
follows:

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

0
2. Section 204.804 is revised to read as follows:


204.804  Closeout of contract files.

    (1) Contracting officers shall close out contracts in accordance 
with the procedures at PGI 204.804. The closeout date for file purposes 
shall be determined and documented by the procuring contracting 
officer.
    (2) The head of the contracting activity shall assign the highest 
priority to closeout of contracts awarded for performance in a 
contingency area. Heads of contracting activities must monitor and 
assess on a regular basis the progress of contingency contract closeout 
activities and take appropriate steps if a backlog occurs. For guidance 
on the planning and execution of closing out such contracts, see PGI 
207.105(b)(20)(C)(8) and PGI 225.7404(e).

[FR Doc. 2012-11562 Filed 5-21-12; 8:45 am]
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