[Federal Register Volume 79, Number 198 (Tuesday, October 14, 2014)]
[Rules and Regulations]
[Pages 61583-61584]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-24401]



Defense Acquisition Regulation System

48 CFR Part 247

RIN 0750-AI38

Defense Federal Acquisition Regulation: Ocean Transportation by 
U.S.-Flag Vessels (DFARS Case 2014-D012)

AGENCY: Defense Acquisition Regulations System, Department of Defense 

ACTION: Final rule.


SUMMARY: DoD is issuing a final rule amending the Defense Federal 
Acquisition Regulation Supplement (DFARS) to remove text regarding 
contracting officer responsibilities, when purchasing ocean 
transportation services, that are procedural in nature.

DATES: Effective October 14, 2014.

FOR FURTHER INFORMATION CONTACT: Ms. Veronica Fallon, telephone 571-


I. Discussion

    DoD is revising DFARS 247.572 and 247.573 to include a statement of 
delegated authority and to remove guidance that is internal to DoD 
concerning procedures contracting officers must follow when purchasing 
ocean transportation services. The internal DoD guidance removed from 
DFARS will be addressed in revised DFARS Procedures, Guidance and 
Information (PGI) 247.573.

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 the change is not substantive and only modifies the internal 
operating procedures of DoD.

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). EO 13563 
emphasizes the importance of quantifying both costs and benefits, of 
reducing costs, or 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.

V. Paperwork Reduction Act

    This 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 247

    Government procurement.

Manuel Quinones,
Editor, Defense Acquisition Regulations System.

    Therefore, 48 CFR part 247 is amended as follows:


1. The authority citation for 48 CFR part 247 continues to read as 

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

2. Section 247.572 paragraph (a) is revised to read as follows:

247.572  Policy.

    (a) In accordance with 10 U.S.C. 2631(a), DoD contractors shall 
transport supplies, as defined in the clause at 252.247-7023, 
Transportation of Supplies by Sea, exclusively on U.S.-flag vessels 
    (1) Those vessels are not available;
    (2) The proposed charges to the Government are higher than charges 
to private persons for the transportation of like goods; or
    (3) The proposed freight charges are excessive or unreasonable.
* * * * *

3. Section 247.573 heading is revised and new text added to read as 

247.573  General.

    (a) Delegated authority. Pursuant to 10 U.S.C. 2631(a) and 
Secretary of Defense Memorandum dated February 7, 2012, (see PGI 
245.573) the authority to make determinations of excessive ocean liner 
rates and excessive charter rates is delegated to--
    (1) The Commander, United States Transportation Command, for 
excessive ocean liner rate determinations; and
    (2) The Secretary of the Navy for excessive charter rate 
    (b) Procedures. (1) Contracting officers shall follow the 
procedures at PGI 247.573(b)(1) when purchase of ocean transportation 
services is incidental to a contract for supplies, services, or 
    (2) Contracting officers shall follow the procedures at PGI 
247.573(b)(2) when direct purchase of ocean transportation services is 
the principal purpose of the contract.
    (3) Agency and department procedures relating to annual reporting 
requirements of information received

[[Page 61584]]

from offerors in response to solicitation provision 252.247-7026, 
Evaluation Preference for Use of Domestic Shipyards--Applicable to 
Acquisition of Carriage by Vessel for DoD Cargo in the Coastwise of 
Noncontiguous Trade, are found at PGI 247.573(b)(3).
    (4) Procedures are provided at PGI 247.573(b)(4) to accomplish 
security background checks pursuant to clause 252.247-7027, Riding Gang 
Member Requirements.

247.573-1, 247.573-2 and 247.573-3  [Removed]

4. Remove sections 247.573-1, 247.573-2, and 247.573-3.

247.574  [Amended]

5. Section 247.574 is amended by--
a. In paragraph (e), removing the last two sentences; and
b. In paragraph (f), removing the last sentence.

[FR Doc. 2014-24401 Filed 10-10-14; 8:45 am]