[Federal Register Volume 79, Number 19 (Wednesday, January 29, 2014)]
[Proposed Rules]
[Pages 4647-4648]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-01278]


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DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Parts 212, 225, 232, and 252

RIN 0750-AH86


Defense Federal Acquisition Regulation Supplement; Payment in 
Local Currency (Afghanistan) (DFARS Case 2013-D029)

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

ACTION: Proposed rule.

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SUMMARY: DoD is proposing to amend the Defense Federal Acquisition 
Regulation Supplement (DFARS) to incorporate into the DFARS policies 
and procedures concerning payment for contracts for performance in 
Afghanistan.

DATES: Comment Date: Comments on the proposed rule should be submitted 
in writing to the address shown below on or before March 31, 2014, to 
be considered in the formation of the final rule.

ADDRESSES: Submit comments, identified by DFARS Case 2013-D029, using 
any of the following methods:
    Regulations.gov: http://www.regulations.gov. Submit comments via 
the Federal eRulemaking portal by inserting ``DFARS Case 2013-D029'' 
under the heading ``Enter keyword or ID'' and selecting ``Search.'' 
Select the link ``Submit a Comment'' that corresponds with ``DFARS Case 
2013-D029.'' Follow the instructions provided at the ``Submit a 
Comment'' screen. Please include your name, company name (if any), and 
``DFARS Case 2013-D029'' on your attached document. Follow the 
instructions for submitting comments.
    Email: [email protected]. Include DFARS Case 2013-D029 in the subject 
line of the message.
    Fax: 571-372-6094.
    Mail: Defense Acquisition Regulations System, Attn: Mr. Mark 
Gomersall, 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: Mr. Mark Gomersall, Defense 
Acquisition Regulations System, Attn: Mr. Mark Gomersall, 
OUSD(AT&L)DPAP(DARS), Room 3B855, 3060 Defense Pentagon, Washington, DC 
20301-3060. Telephone 571-372-6099.

SUPPLEMENTARY INFORMATION:

I. Background

    DoD is proposing to amend the DFARS to provide policy and 
procedures at DFARS 212.301 and 232.72 on the use of a new solicitation 
provision at 252.232-7XXX, Notification of Payment in Local Currency 
(Afghanistan). This provision provides notification that the payment 
currency to be used for contracts for performance in Afghanistan shall 
be dependent on the nationality of the vendor. This rule implements the 
procedures concerning payment currency contained in the U.S. Central 
Command's Fragmentary Order (FRAGO) 09-1567 and FRAGO 10-143.

II. Discussion and Analysis

    The solicitation provision, 252.232-7XXX, provides that if the 
contract is awarded to a host nation vendor (Afghan), the contractor 
will receive payment in Afghani (local currency) via electronic funds 
transfer to a local (Afghan) banking institution. Contracts shall not 
be awarded to host nation vendors (Afghans) who do not bank locally. If 
awarded to other than a host nation vendor, the contract will be 
awarded in U.S. dollars.
    Additionally, DFARS 225.7703-1 is added to provide direction to 
contracting officers to follow the procedures included at DFARS 
Procedures, Guidance, and Information (PGI) 225.7703-1(c) when issuing 
solicitations and contracts for performance in Afghanistan. The PGI 
reference provides a link to the U.S. Central Command's (CENTCOM) 
Operational Contract Support Policies and Procedures, Theater Business 
Clearance process for clearing contracts to be performed in CENTCOM's 
area of responsibility.

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

    DoD does not expect this proposed 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. 
However, an initial regulatory flexibility analysis has been performed 
and is summarized as follows:

[[Page 4648]]

    This rule amends the DFARS by incorporating policies and procedures 
at DFARS 212.301 and 232.72 on the use of a new DFARS solicitation 
provision 252.232-7XXX, Notification of Payment in Local Currency 
(Afghanistan). This rule proposes to implement the payment currency 
procedures contained in the U.S. Central Command's Fragmentary Orders 
09-1567 and 10-143. The provision provides notification that the 
payment currency to be used for contracts for performance in 
Afghanistan shall be dependent on the nationality of the vendor. 
Additionally, DFARS 225.7703-1 provides direction to contracting 
officers to follow the procedures at DFARS Procedures, Guidance, and 
Information 225.7703-1(c) when issuing solicitations and contracts for 
performance in Afghanistan.
    DoD does not expect this proposed rule to have a significant 
economic impact on a substantial number of small entities because this 
rule merely provides requirements for payments to host nation vendors 
for performance in Afghanistan.
    The proposed rule does not duplicate, overlap, or conflict with any 
other Federal rules.

V. Paperwork Reduction Act

    The rule does not contain 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 Parts 212, 225, 232, and 252

    Government procurement.

Manuel Quinones,
Editor, Defense Acquisition Regulations System.

    Therefore, 48 CFR parts 212, 225, 232, and 252 are proposed to be 
amended as follows:

0
1. The authority citation for parts 212, 225, 232, and 252 continues to 
read as follows:

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

PART 212--ACQUISITION OF COMMERCIAL ITEMS

0
2. Section 212.301 is amended by--
0
a. Redesignating paragraphs (f)(lii) through (lxvii) as (f)(liii) 
through (lxviii); and
0
b. Adding a new paragraph (f)(lii) as follows:


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

    (f) * * *
    (lii) Use the clause at 252.232-7XXX, Notification of Payment in 
Local Currency (Afghanistan), as prescribed in 237.7202.
* * * * *

PART 225--FOREIGN ACQUISITIONS

0
3. Section 225.7703-1 is amended by adding paragraph (c) to read as 
follows:


225.7703-1  Acquisition procedures.

* * * * *
    (c) When issuing solicitations and contracts for performance in 
Afghanistan, follow the procedures at PGI 225.7703-1(c).

PART 232--CONTRACT FINANCING

0
4. Add subpart 232.72 to read as follows:
Subpart 232.72--Payment in Local Currency (Afghanistan)
Sec.
232.7200 Scope of subpart.
232.7201 Policy and procedures.
232.7202 Solicitation provision.

Subpart 232.72--Payment in Local Currency (Afghanistan)


232.7200  Scope of subpart.

    This subpart prescribes policies and procedures concerning the 
payment of contracts for performance in Afghanistan.


232.7201  Policy and procedures.

    Payment currency used for contracts performed in Afghanistan shall 
be dependent on the nationality of the vendor pursuant to the authority 
of USCENTCOM Fragmentary Orders (FRAGOs) 09-1567 and 10-143. If the 
contract is awarded to a host nation vendor (Afghan), the contractor 
will be paid in Afghani (local currency) via electronic funds transfer 
to a local (Afghan) banking institution. Contracts shall not be awarded 
to host nation vendors who do not bank locally. If awarded to other 
than a host nation vendor, the contract will be awarded in U.S. 
dollars.


232.7202  Solicitation provision.

    Use the provision at 252.232-7XXX, Notification of Payment in Local 
Currency (Afghanistan), in all solicitations, including solicitations 
using FAR part 12 procedures for the acquisition of commercial items, 
for performance in Afghanistan.

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

0
5. Section 252.232-7XXX is added as follows:


252.232-7XXX  Notification of Payment in Local Currency (Afghanistan).

    As prescribed in 232.7202, use the following provision:

NOTIFICATION OF PAYMENT IN LOCAL CURRENCY (AFGHANISTAN) (Date)

    (a) This contract will be paid in Afghani (local currency) if 
the contract is awarded to a host nation vendor (Afghan), pursuant 
to the authority of USCENTCOM Fragmentary Order (FRAGO) 09-1567 and 
FRAGO 10-143. Contract payment will be made in Afghani (local 
currency) via electronic funds transfer (EFT) to a local (Afghan) 
banking institution, unless an exception in paragraph (c) applies. 
Contracts shall not be awarded to host nation vendors who do not 
bank locally. If award is made to other than a host nation vendor, 
the contract will be awarded in U.S. dollars.
    (b) Vendors shall submit quotations and offers in U.S. dollars. 
If the contract is awarded to an Afghan vendor, the quotation or 
offer will be converted to Afghani using a Government budget rate of 
[Insert current budget rate here] Afghani per U.S. dollar.
    (c) By exception, the following forms of payment are acceptable, 
in the following order of priority, when the local finance office 
determines that EFT using ITS.gov is not available:
    (1) EFT using Limited Depository Account (LDA).
    (2) Check from the local finance office LDA.
    (3) Local currency cash payments in Afghani (must be approved in 
writing by the local finance office and contracting office prior to 
contract award). Payments in cash are restricted to contracts when--
    (i) The vendor provides proof via a letter from the host nation 
banking institution that it is not EFT capable; and
    (ii) The local finance office validates that the vendor's 
banking institution is not EFT capable. Cash payments will be made 
in Afghani.
    (End of provision)

[FR Doc. 2014-01278 Filed 1-28-14; 8:45 am]
BILLING CODE 5001-06-P