[Federal Register Volume 83, Number 126 (Friday, June 29, 2018)]
[Proposed Rules]
[Pages 30666-30668]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-14069]


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DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Part 252

[Docket DARS-2018-0018]
RIN 0750-AJ42


Defense Federal Acquisition Regulation Supplement: Submission of 
Summary Subcontract Reports (DFARS Case 2017-D005)

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 clarify the entity to which 
contractors submit Summary Subcontract Reports in the Electronic 
Subcontracting Reporting System (eSRS) and to clarify the entity that 
acknowledges receipt of, or rejects, the reports in eSRS.

DATES: Comments on the proposed rule should be submitted in writing to 
the address shown below on or before August 28, 2018, to be considered 
in the formation of a final rule.

ADDRESSES: Submit comments identified by DFARS Case 2017-D005, using 
any of the following methods:
    [cir] Federal eRulemaking Portal: http://www.regulations.gov. 
Search for ``DFARS Case 2017-D005.'' Select ``Comment Now'' and follow 
the instructions provided to submit a comment. Please include ``DFARS 
Case 2017-D005'' on any attached documents.
    [cir] Email: [email protected]. Include DFARS Case 2017-D005 in 
the subject line of the message.
    [cir] Fax: 571-372-6094.
    [cir] Mail: Defense Acquisition Regulations System, Attn: Ms. 
Jennifer D. Johnson, OUSD(AT&L)DPAP/DARS, Room 3B941, 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 2 to 3 days after submission to verify posting (except 
allow 30 days for posting of comments submitted by mail).

FOR FURTHER INFORMATION CONTACT: Ms. Jennifer D. Johnson, telephone 
571-372-6100.

SUPPLEMENTARY INFORMATION: 

I. Background

    DoD is proposing to revise the DFARS to implement a policy that 
streamlines the submission and review of Summary Subcontract Reports 
(SSRs) for DoD contractors and brings the DFARS into compliance with 
changes to the Federal Acquisition Regulation (FAR). Instead of 
submitting multiple SSRs to departments and agencies within DoD, 
contractors with individual subcontracting plans will submit a single, 
consolidated SSR in eSRS at the DoD level. The consolidated SSR will be 
acknowledged or rejected in eSRS at the DoD level.

II. Discussion and Analysis

    The clause at DFARS 252.219-7003, Small Business Subcontracting 
Plan (DoD Contracts), and its Alternate I currently require contractors 
to submit SSRs to departments or agencies within DoD. DFARS 252.219-
7003 and its Alternate I also inform contractors that the authority to 
acknowledge receipt of, or reject, SSRs resides with the SSR 
Coordinator at departments or agencies within DoD. This rule proposes 
to amend the DFARS clause to require contractors with individual 
subcontracting plans to submit a consolidated SSR at the DoD level, and 
to inform contractors that the authority to acknowledge receipt of or 
reject SSRs under individual subcontracting plans resides with the SSR 
Coordinator at the DoD level. These amendments will bring DFARS clause 
252.219-7003 into compliance with the requirement for a consolidated 
SSR in FAR clause 52.219-9, Small Business Subcontracting Plan.

III. Applicability to Contracts at or Below the Simplified Acquisition 
Threshold (SAT) and for Commercial Items, Including Commercially 
Available Off-the-Shelf (COTS) Items

    This rule proposes to amend the clause at DFARS 252.219-7003, Small 
Business Subcontracting Plan (DoD Contracts), and its Alternate I. The 
objective of the rule is to provide clarification on the submission and 
review of SSRs in eSRS.
    DoD does not apply the clause and its Alternate I to solicitations 
and contracts with a value at or below the SAT, because subcontracting 
plans are not required at that dollar value.
    DoD currently applies the clause and its Alternate I to 
solicitations and contracts for the acquisition of commercial items, 
including COTS items, as defined at FAR 2.101. Not applying this 
guidance to contracts for the acquisition of commercial items, 
including COTS items, would exclude contracts intended to be included 
in the streamlined SSRs and undermine the overarching purpose of the 
rule. Consequently, DoD plans to apply the rule to contracts for the 
acquisition of commercial items, including COTS items.

IV. Expected Cost Savings

    This rule amends the DFARS to implement a policy that streamlines 
the submission and review of SSRs for DoD contractors. Instead of the 
current practice of submitting multiple SSRs to various departments or 
agencies within DoD, contractors with individual subcontracting plans 
will submit one consolidated SSR at the DoD level in the eSRS. The 
consolidated SSR will be acknowledged or rejected in eSRS at the DoD 
level.
    This rule impacts only large businesses that have individual 
subcontracting plans and at least one contract with DoD. Although the 
clause at DFARS 252.219-7003, Small Business Subcontracting Plan (DoD 
Contracts), and its Alternate I currently require large business 
contractors to submit SSRs to the department or agency within DoD that 
administers the majority of the contractor's individual subcontracting 
plans, these contractors frequently must submit SSRs to each department 
or agency within DoD with which they have contracts. This results in 
extra work for the contractors and

[[Page 30667]]

creates problems with duplicate subcontracting data. By requiring 
submission and review of SSRs at the DoD level, this rule solves these 
issues.
    The following is a summary of the estimated public cost savings 
calculated in 2016 dollars at a 7-percent discount rate and in 
perpetuity:

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Annualized Cost Savings.................................        -$25,514
Present Value Cost Savings..............................        -364,492
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    To access the full Regulatory Cost Analysis for this rule, go to 
the Federal eRulemaking Portal at www.regulations.gov, search for 
``DFARS Case 2017-D005,'' click ``Open Docket,'' and view ``Supporting 
Documents.''

V. 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.

VI. Executive Order 13771

    This rule is expected to be an E.O. 13771 deregulatory action. 
Details on the estimated cost savings can be found in section IV. of 
this preamble.

VII. 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., 
because small entities are not required to comply with the clause at 
DFARS 252.219-7003, Small Business Subcontracting Plan (DoD Contracts), 
or its Alternate I. However, an initial regulatory flexibility analysis 
has been performed and is summarized as follows:
    DoD is proposing to revise the Defense Federal Acquisition 
Regulation Supplement (DFARS) to streamline the submission and review 
of Summary Subcontract Reports (SSRs) in the Electronic Subcontracting 
Reporting System (eSRS). Instead of submitting multiple SSRs to 
departments and agencies within DoD, contractors with individual 
subcontracting plans will submit a single, consolidated SSR in eSRS at 
the DoD level. The consolidated SSR will be acknowledged or rejected in 
eSRS at the DoD level.
    The objective of the rule is to provide clarification on the 
submission and review of SSRs in eSRS. The rule will bring the clause 
at DFARS 252.219-7003 and its Alternate I into compliance with the 
requirement for a consolidated SSR in the Federal Acquisition 
Regulation clause FAR 52.219-9, Small Business Subcontracting Plan.
    The rule applies to DoD contractors who have individual 
subcontracting plans and must comply with the clause at DFARS 252.219-
7003. Small entities are not required to comply with this clause and, 
therefore, will not be affected by the rule.
    The rule does not impose any reporting or recordkeeping 
requirements on any small entities.
    The rule does not duplicate, overlap, or conflict with any other 
Federal rules.
    There are no known, significant, alternative approaches to the 
proposed rule that would meet the requirements of the applicable 
statute.
    DoD invites comments from small business concerns and other 
interested parties on the expected impact of this rule on small 
entities.
    DoD will also consider comments from small entities concerning the 
existing regulations in subparts affected by this rule in accordance 
with 5 U.S.C. 610. Interested parties must submit such comments 
separately and should cite 5 U.S.C 610 (DFARS Case 2017-D005), in 
correspondence.

VIII. 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 Part 252

    Government procurement.

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

    Therefore, 48 CFR 252 is proposed to be amended as follows:

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

0
1. The authority citation for part 252 continues to read as follows:

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

0
2. Amend section 252.219-7003 by--
0
a. Removing the clause date of ``(APR 2018)'' and adding ``(DATE)'' in 
its place;
0
b. Revising paragraph (a);
0
c. Revising paragraph (b);
0
d. Revising paragraph (f); and
0
e. In Alternate I--
0
i. Removing the clause date of ``(APR 2018)'' and adding ``(DATE)'' in 
its place;
0
i. Revising paragraph (a);
0
ii Revising paragraph (b); and
0
iii. Revising paragraph (f).
    The revisions read as follows:


252.219-7003  Small Business Subcontracting Plan (DoD Contracts).

* * * * *
    (a) Definitions. Summary Subcontract Report (SSR) Coordinator, as 
used in this clause, means the individual who is registered in the 
Electronic Subcontracting Reporting System (eSRS) at the Department of 
Defense level and is responsible for acknowledging receipt or rejecting 
SSRs submitted under an individual subcontracting plan in eSRS for the 
Department of Defense.
    (b) Subcontracts awarded qualified nonprofit agencies designated by 
the Committee for Purchase From People Who Are Blind or Severely 
Disabled (41 U.S.C. 8502-8504), may be counted toward the Contractor's 
small business subcontracting goal.
* * * * *
    (f)(1) For DoD, the Contractor shall submit reports in eSRS as 
follows:
    (i) The Individual Subcontract Report (ISR) shall be submitted to 
the contracting officer at the procuring contracting office, even when 
contract administration has been delegated to the Defense Contract 
Management Agency.
    (ii) Submit the consolidated SSR for an individual subcontracting 
plan to the ``Department of Defense.''
    (2) For DoD, the authority to acknowledge receipt or reject reports 
in eSRS is as follows:
    (i) The authority to acknowledge receipt or reject the ISR resides 
with the contracting officer who receives it, as described in paragraph 
(f)(1)(i) of this clause.
    (ii) The authority to acknowledge receipt of or reject SSRs 
submitted under an individual subcontracting plan resides with the SSR 
Coordinator.
* * * * *
    Alternate I. * * *
* * * * *
    (a) Definitions. Summary Subcontract Report (SSR) Coordinator, as 
used in this clause, means the individual who is registered in the 
Electronic Subcontracting Reporting System (eSRS)

[[Page 30668]]

at the Department of Defense level and is responsible for acknowledging 
receipt or rejecting SSRs submitted under an individual subcontracting 
plan in eSRS for the Department of Defense.
    (b) Subcontracts awarded to qualified nonprofit agencies designated 
by the Committee for Purchase From People Who Are Blind or Severely 
Disabled (41 U.S.C. 8502-8504), may be counted toward the Contractor's 
small business subcontracting goal.
* * * * *
    (f)(1) For DoD, the Contractor shall submit reports in eSRS as 
follows:
    (i) The Standard Form 294, Subcontracting Report for Individual 
Contracts, shall be submitted in accordance with the instructions on 
that form.
    (ii) Submit the consolidated SSR to the ``Department of Defense.''
    (2) For DoD, the authority to acknowledge receipt of or reject SSRs 
submitted under an individual subcontracting plan in eSRS resides with 
the SSR Coordinator.
* * * * *
[FR Doc. 2018-14069 Filed 6-28-18; 8:45 am]
 BILLING CODE 5001-06-P