[Federal Register Volume 83, Number 104 (Wednesday, May 30, 2018)]
[Rules and Regulations]
[Pages 24886-24887]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-11339]

[[Page 24885]]

Vol. 83


No. 104

May 30, 2018

Part III

Department of Defense


48 CFR Chapter 204, 212, et al.

Federal Acquisition Regulations; Final Rules and Proposed Rule

Federal Register / Vol. 83 , No. 104 / Wednesday, May 30, 2018 / 
Rules and Regulations

[[Page 24886]]



Defense Acquisition Regulations System

48 CFR Parts 204, 212, and 252

[Docket DARS-2017-0016]
RIN 0750-AJ55

Defense Federal Acquisition Regulation Supplement: Repeal of 
DFARS Provision ``Alternative Line Item Structure'' (DFARS Case 2017-

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 a provision that 
provided guidelines to offerors when proposing an alternative line item 
structure in response to a solicitation.

DATES: Effective May 30, 2018.

FOR FURTHER INFORMATION CONTACT: Ms. Carrie Moore, telephone 571-372-


I. Background

    DoD is amending the DFARS to remove DFARS provision 252.204-7011, 
Alternative Line Item Structure, the associated prescription at DFARS 
204.7109(b), and a cross-reference at DFARS 212.301(f)(ii)(C). DFARS 
provision 252.204-7011 advises offerors that they may propose an 
alternative to the contract line item structure included in the 
solicitation. The purpose of this provision is to ensure that the 
resulting contract structure is economically and administratively 
advantageous to both the Government and the contractor. This provision 
is prescribed for use in all solicitations that use Federal Acquisition 
Regulation (FAR) part 12 procedures for the acquisition of commercial 
items or for the initial provisioning of spares.
    However, this DFARS provision is duplicative of the information 
provided in FAR provision 52.204-22, Alternative Line Item Proposal, 
which is included in all solicitations. When the DFARS provision was 
implemented, no standardized guidance on line item structure existed 
for the Government or contractors. A final rule was published in the 
Federal Register on January 13, 2017, at 82 FR 4709 to implement a 
uniform line item structure in the FAR for all Federal Government. That 
final rule established FAR provision 52.204-22, Alternate Line Item 
Proposal, which covers the information included in DFARS 252.204-7011. 
As a result, the DFARS provision is now redundant and can be removed.
    The removal of this DFARS provision supports a recommendation from 
the DoD Regulatory Reform Task Force. On February 24, 2017, the 
President signed Executive Order (E.O.) 13777, ``Enforcing the 
Regulatory Reform Agenda,'' which established a Federal policy ``to 
alleviate unnecessary regulatory burdens'' on the American people. In 
accordance with E.O. 13777, DoD established a Regulatory Reform Task 
Force to review and validate DoD regulations, including the DFARS. A 
public notice of the establishment of the DFARS Subgroup to the DoD 
Regulatory Reform Task Force, for the purpose of reviewing DFARS 
provisions and clauses, was published in the Federal Register at 82 FR 
35741 on August 1, 2017, and requested public input. No public comments 
were received on this provision. Subsequently, the DoD Task Force 
reviewed the requirements of DFARS 252.204-7011, Alternate Line Item 
Structure, and determined that the DFARS coverage was redundant and 
recommended removal.

II. Applicability to Contracts at or Below the Simplified Acquisition 
Threshold and for Commercial Items, Including Commercially Available 
Off-the-Shelf Items

    This rule only removes obsolete DFARS provision 252.204-7011, 
Alternate A, System for Award Management. Therefore, the rule does not 
impose any new requirements on contracts at or below the simplified 
acquisition threshold and for commercial items, including commercially 
available off-the-shelf items.

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. Executive Order 13771

    This rule is not an E.O. 13771, Reducing and Controlling Regulatory 
Costs, regulatory action, because this rule is not significant under 
E.O. 12866.

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

    The statute that applies to the publication of the Federal 
Acquisition Regulation (FAR) is the Office of Federal Procurement 
Policy statute (codified at title 41 of the United States Code). 
Specifically, 41 U.S.C. 1707(a)(1) 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 DoD is not 
issuing a new regulation; rather, this rule merely removes an obsolete 
requirement from the DFARS.

VI. Regulatory Flexibility Act

    Because a notice of proposed rulemaking and an opportunity for 
public comment are not required to be given for this rule under 41 
U.S.C. 1707(a)(1) (see section III. of this preamble), the analytical 
requirements of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) 
are not applicable. Accordingly, no regulatory flexibility analysis is 
required and none has been prepared.

VII. 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 Parts 204, 212, and 252

    Government procurement.

Amy G. Williams,
Deputy, Defense Acquisition Regulations System.
    Therefore, 48 CFR parts 204, 212, and 252 are amended as follows:

1. The authority citation for parts 204, 212, and 252 continues to read 
as follows:

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

[[Page 24887]]


2. Revise section 204.7109 to read as follows:

204.7109   Contract clause.

    Use the clause at 252.204-7006, Billing Instructions, in 
solicitations and contracts if Section G includes--
    (a) Any of the standard payment instructions at PGI 204.7108)(d)(1) 
through (6); or
    (b) Other payment instructions, in accordance with PGI 
204.7108(d)(12), that require contractor identification of the contract 
line item(s) on the payment request.


212.301   [Amended]

3. Amend section 212.301 by--
a. Removing paragraph (f)(ii)(C); and
b. Redesignating paragraphs (f)(ii)(D) through (G) as paragraphs 
(f)(ii)(C) through (F), respectively.


252.204-7011   [Removed and Reserved]

4. Remove and reserve section 252.204-7011.
[FR Doc. 2018-11339 Filed 5-29-18; 8:45 am]