[Federal Register Volume 83, Number 104 (Wednesday, May 30, 2018)]
[Rules and Regulations]
[Pages 24894-24895]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-11347]



Defense Acquisition Regulations System

48 CFR Parts 204 and 252

[Docket DARS-2017-0015]
RIN 0750-AJ54

Defense Federal Acquisition Regulation Supplement: Repeal of 
DFARS Provision ``Alternate A, System for Award Management'' (DFARS 
Case 2017-D044)

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 is 
duplicative of an existing Federal Acquisition Regulation (FAR) 
provision that requires a vendor to enter Commercial and Government 
Entity (CAGE) code information into a Governmentwide database prior to 
award of any contract or agreement.

DATES: Effective May 30, 2018.

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


I. Background

    DoD is amending the DFARS to remove the DFARS provision 252.204-
7004, Alternate A, System for Award Management (SAM), and the 
associated provision prescription at DFARS 204.1105. The DFARS 
provision provided definitions that are to be substituted for the 
definitions in paragraph (a) of the FAR provision 52.204-7, System for 
Award Management. The FAR provision is prescribed for use in most 
solicitations. The purpose of the FAR provision is to inform offerors 
of the requirement to be registered in SAM in order to be eligible for 
an award. The DFARS provision was created for use in DoD solicitations, 
to ensure, in part, that offerors responding to DoD solicitations 
understood that they needed to enter a CAGE code in SAM in order to be 
considered registered in the system. However, the DFARS provision is no 
longer necessary, because the definition of ``Registered in the System 
for Award Management (SAM) database'' in paragraph (a) of the FAR 
provision has been updated to include a CAGE code as part of the 
information required from an offeror in order to be considered 
registered in SAM. As such, this DFARS alternate provision is redundant 
and can be removed.
    The removal of this DFARS text 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 provision 252.204-7004, Alternate A, System for Award 
Management, 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 merely removes obsolete DFARS provision 252.204-7004, 
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

[[Page 24895]]

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 and 252

    Government procurement.

Amy G. Williams,
Deputy, Defense Acquisition Regulations System.

    Therefore, 48 CFR parts 204 and 252 are amended as follows:

1. The authority citation for parts 204 and 252 continues to read as 

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


204.1105   [Removed]

2. Remove section 204.1105.


252.204-7004   [Removed and Reserved]

3. Remove and reserve section 252.204-7004.

[FR Doc. 2018-11347 Filed 5-29-18; 8:45 am]