[Federal Register Volume 79, Number 189 (Tuesday, September 30, 2014)]
[Rules and Regulations]
[Pages 58694-58696]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-22861]


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DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Parts 212, 225, 232, and 252

RIN 0750-AI14


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

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 incorporate into the DFARS 
policies and procedures concerning payment for contracts for 
performance in Afghanistan.

DATES: Effective September 30, 2014.

[[Page 58695]]


FOR FURTHER INFORMATION CONTACT: Ms. Jennifer Hawes, telephone 571-372-
6115.

SUPPLEMENTARY INFORMATION:

I. Background

    DoD published a proposed rule in the Federal Register at 79 FR 4647 
on January 29, 2014, 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 252.232-7014, 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. Two respondents 
submitted public comments in response to the proposed rule.

II. Discussion and Analysis

    DoD reviewed the public comments in development of the final rule. 
One minor change is made to the final rule as a result of one of the 
comments. A discussion of the comments is provided below.
    Comment: The respondent stated that if the U.S. Government 
solicited the use of security forces in Afghanistan, any resulting 
contract would be required to be awarded to the Afghan Public 
Protection Force (APPF) and use APPF procurement terms.
    Response: This comment is outside the scope of this final rule. The 
rule only addresses contracts awarded to vendors and not state-owned 
Afghani governmental entities for the provision of security services.
    Comment: The respondent noted that section 212.301(f)(lii) referred 
to 252.232-70XX as a clause rather than a provision.
    Response: The final rule correctly refers to 252.232-7014 as a 
provision.

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

    A final regulatory flexibility analysis has been prepared 
consistent with the Regulatory Flexibility Act, 5 U.S.C. 601, et seq., 
and is summarized as follows:
    This final 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 252.232-7014, Notification of Payment in Local 
Currency (Afghanistan). This rule implements 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.
    No comments were received from the public in response to the 
initial regulatory flexibility analysis. DoD does not expect this rule 
to have an 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.
    This rule does not add any new information collection, reporting, 
or recordkeeping requirements. No alternatives were identified that 
will accomplish the objectives of the rule.

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 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. Amend section 212.301 by redesignating paragraphs (f)(lviii) through 
(lxxiii) as (f)(lix) through (lxxiv) and adding a new paragraph 
(f)(lviii) to read as follows:


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

    (f) * * *
    (lviii) Use the provision at 252.232-7014, Notification of Payment 
in Local Currency (Afghanistan), as prescribed in 232.7202.
* * * * *

PART 225--FOREIGN ACQUISITIONS

0
3. Amend section 225.7703-1 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.

[[Page 58696]]

232.7202  Solicitation provision.

    Use the provision at 252.232-7014, 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. Add section 252.232-7014 to read as follows:


252.232-7014  Notification of Payment in Local Currency (Afghanistan).

    As prescribed in 232.7202, use the following provision:

NOTIFICATION OF PAYMENT IN LOCAL CURRENCY (AFGHANISTAN) (SEP 2014)

    (a) The contract resulting from this solicitation 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. 2014-22861 Filed 9-29-14; 8:45 am]
BILLING CODE 5001-06-P