[Federal Register Volume 83, Number 165 (Friday, August 24, 2018)]
[Proposed Rules]
[Pages 42826-42828]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-18246]
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DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System
48 CFR Parts 212, 247, and 252
[Docket DARS-2018-0040]
RIN 0750-AJ94
Defense Federal Acquisition Regulation Supplement: Modification
of DFARS Clause ``Transportation of Supplies by Sea'' (DFARS Case 2018-
D028)
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 modify the text of an existing DFARS
clause to include the text of another DFARS clause, in order to
streamline instructions to contractors regarding notifications of
transportation of supplies by sea.
DATES: Comments on the proposed rule should be submitted in writing to
the address shown below on or before October 23, 2018, to be considered
in the formation of a final rule.
ADDRESSES: Submit comments identified by DFARS Case 2018-D028, using
any of the following methods:
[cir] Federal eRulemaking Portal: http://www.regulations.gov.
Search for ``DFARS Case 2018-D028''. Select ``Submit a Comment Now''
and follow the instructions provided to submit a comment. Please
include ``DFARS Case 2018-D028'' on any attached document. O Email:
[email protected]. Include DFARS Case 2018-D028 in the subject line of
the message.
[cir] Fax: 571-372-6094.
[cir] Mail: Defense Acquisition Regulations System, Attn: Carrie
Moore, OUSD(A&S)DPC/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 two to three days after submission to verify posting
(except allow 30 days for posting of comments submitted by mail).
FOR FURTHER INFORMATION CONTACT: Ms. Carrie Moore, telephone 571-372-
6093.
SUPPLEMENTARY INFORMATION:
I. Background
This rule proposes to modify DFARS clause 252.247-7023,
Transportation of Supplies By Sea, to include the instructions
currently specified in DFARS clause 252.247-7024, Notification of
Supplies By Sea. Combining these clauses will result in DFARS clause
252.247-7024 being removed.
II. Discussion and Analysis
DFARS provision 252.247-7022, Representation of Extent of
Transportation By Sea, is included in solicitations and requires an
offeror to represent with its offer whether it anticipates that
supplies will or will not be transported by sea in the performance of
the contract.
DFARS clause 252.247-7023 is included in all contracts, except for
those that directly purchase ocean transportation services, and
provides contractors with terms and conditions that apply when
transporting supplies by sea under the contract.
DFARS clause 252.247-7024, Notification of Transportation of
[[Page 42827]]
Supplies By Sea, is included in contracts when the contractor indicated
in DFARS provision 252.247-7022 that it did not anticipate transporting
supplies by sea. The clause requires the contractor to notify the
Government in the event that, during performance of the contract, the
contractor learns that supplies will be transported by sea, and
requires the contractor to comply with the terms and conditions in
DFARS clause 252.247-7023.
Since DFARS clause 252.247-7023 is included in all contracts, and
DFARS clause 252.247-7024 is associated with the requirements of
252.247-7023, the text of the two clauses can be combined to help
minimize the number of clauses contained in the contract, while still
maintaining the intent of both clauses.
The modification 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. The DoD Task
Force reviewed the requirements of DFARS clause 252.247-7023 and
252.247-7024 and determined that the clauses could be combined.
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. Two respondents
submitted a public comment on these clauses summarized as follows:
Comment: Both respondents recommended DoD remove these clauses, as
they are based on the requirements of the Cargo Preference Act of 1904
(10 U.S.C. 2631), which was written at a time before many modern forms
of cargo transportation were invented and overly burdens the DoD supply
chain to use US-flag ships. The respondents also suggested that DoD
follow the less burdensome Cargo Preference Act of 1954 (46 U.S.C.
1241(b)).
Response: DoD must comply with the requirements of 10 U.S.C. 2631.
Currently, 10 U.S.C. 2631 requires 100 percent of all items for or
owned by DoD that require transportation by sea be carried exclusively
on U.S. flag vessels. This cargo policy helps retain and encourage a
privately owned and operated U.S.-flag merchant marine, which benefits
the U.S. in terms of trade and in times of emergency. It is not in the
Government's best interests to rescind 10 U.S.C. 2631. In the event
that a U.S.-flag vessel is not available for timely shipment or the
freight charges are excessive or unreasonable, the clause permits the
contractor to submit a request to use a foreign-flag vessel to the
contracting officer. For this reason, DoD does not concur that the DoD
supply chain is necessarily overburdened by this Act.
III. Applicability to Contracts at or Below the Simplified Acquisition
Threshold and for Commercial Items, including Commercially Available
Off-the-Shelf Items
This rule does not create any new provisions or clauses. This rule
merely consolidates existing instructions regarding notifications of
transportation of supplies by sea in a single DFARS clause.
IV. Executive Orders 12866 and 13563
E.O. 12866, Regulatory Planning and Review, and E.O. 13563,
Improving Regulation and Regulatory Review, 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.
The Office of Management and Budget, Office of Information and
Regulatory Affairs (OIRA), has determined that this is not a
significant regulatory action as defined under section 3(f) of E.O.
12866 and, therefore, was not subject to review under section 6(b).
This rule is not a major rule as defined at 5 U.S.C. 804(2).
V. Executive Order 13771
This proposed rule is not expected to be an E.O. 13771, Reducing
Regulation and Controlling Regulatory Costs, regulatory action, because
this proposed rule is not significant under E.O. 12866.
VI. 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 the rule is not creating any new requirements or changing any
existing requirements for contractors. However, an initial regulatory
flexibility analysis has been performed and is summarized as follows:
The Department of Defense (DoD) is proposing to modify DFARS clause
252.247-7023, Transportation of Supplies By Sea, to include the
instructions currently specified in DFARS clause 252.247-7024,
Notification of Supplies By Sea. Combining these clauses will result in
DFARS clause 252.247-7024 being removed.
The objective of this proposed rule is to streamline the
instructions to contractors pertaining to the transportation of
supplies by sea. The combination of these DFARS clauses supports a
recommendation from the DoD Regulatory Reform Task Force under
Executive Order 13771, Reducing Regulation and Controlling Regulatory
Costs.
Based on data available in the Federal Procurement Data System for
fiscal year 2016, DoD awarded approximately 83,000 contract actions
that included DFARS clause 252.247-7023 to 22,000 unique entities, of
which approximately 39,000 awards (47 percent) were made to 15,000
unique small businesses entities (68 percent).
This proposed rule does not include any new reporting,
recordkeeping, or other compliance requirements for small businesses.
This 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 proposed objectives.
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 2018-D028)
in correspondence.
VI. Paperwork Reduction Act
The Paperwork Reduction Act (44 U.S.C. chapter 35) does apply;
however, these changes to the DFARS do not impose additional
information collection requirements to the paperwork burden previously
approved under OMB Control Number 0704-0245, titled: Defense Federal
Acquisition Regulation Supplement (DFARS) Part 247, Transportation and
Related Clauses.
[[Page 42828]]
List of Subjects in 48 CFR Parts 212, 247, and 252
Government procurement.
Jennifer Lee Hawes,
Regulatory Control Officer, Defense Acquisition Regulations System.
Therefore, 48 CFR parts 212, 247, and 252 are proposed to be
amended as follows:
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1. The authority citation for 48 CFR parts 212, 247, and 252 continues
to read as follows:
Authority: 41 U.S.C. 1303 and 48 CFR chapter 1.
PART 212--ACQUISITION OF COMMERCIAL ITEMS
212.301 [Amended]
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2. Amend section 212.301 by:
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a. Removing paragraph (f)(xix)(D);
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b. Redesignating paragraphs (f)(xix)(E) through (H) as paragraphs
(f)(xix)(D) through (G), respectively;
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c. In the newly redesignated paragraph (f)(xix)(D), removing
``247.574(d)'' and adding ``247.574(c)'' in its place;
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d. In the newly redesignated paragraph (f)(xix)(E), removing
``247.574(e)'' and adding ``247.574(d)'' in its place;
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e. In the newly redesignated paragraph (f)(xix)(F), removing
``247.574(f)'' and adding ``247.574(e)'' in its place; and
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f. In the newly redesignated paragraph (f)(xix)(G), removing ``U.S''
and adding ``U.S.'' in its place.
PART 247--TRANSPORTATION
247.574 [Amended]
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3. Amend section 247.574 by:
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a. Removing paragraph (c); and
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b. Redesignating paragraphs (d) through (f) as paragraphs (c) through
(e), respectively.
PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
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4. Amend section 252.247-7023 by:
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a. In the clause heading, removing the date ``(APR 2014)'' and adding
``(DATE)'' in its place;
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b. Redesignating paragraph (h) as paragraph (i);
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c. Adding a new paragraph (h); and
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d. In the newly redesignated paragraphs (i)(1) and (2), removing
``paragraph (h)'' and adding ``paragraph (i)'' in both places;
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e. In Alternate I:
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i. In the clause heading, removing the date of ``(APR 2014)'' and
adding ``(DATE)'' in its place;
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ii. Redesignating paragraph (h) as paragraph (i);
0
iii. Adding a new paragraph (h); and
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iv. In the newly redesignated paragraphs (i)(1) and (2), removing
``paragraph (h)'' and adding ``paragraph (i)'' in both places;
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f. In Alternate II--
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i. In the clause heading, removing the date of ``(APR 2014)'' and
adding ``(DATE)'' in its place;
0
ii. Redesignating paragraph (h) as paragraph (i);
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iii. Adding a new paragraph (h); and
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iv. In the newly redesignated paragraphs (i)(1) and (2), removing
``paragraph (h)'' and adding ``paragraph (i)'' in both places.
The additions read as follows:
252.247-7023 Transportation of Supplies by Sea.
* * * * *
(h) If the Contractor has indicated by the response to the
solicitation provision, Representation of Extent of Transportation by
Sea, that it did not anticipate transporting by sea any supplies;
however, after the award of this contract, the Contractor learns that
supplies will be transported by sea, the Contractor--
(1) Shall notify the Contracting Officer of that fact; and
(2) Hereby agrees to comply with all the terms and conditions of
this clause.
* * * * *
Alternate I. * * *
* * * * *
(h) If the Contractor has indicated by the response to the
solicitation provision, Representation of Extent of Transportation by
Sea, that it did not anticipate transporting by sea any supplies;
however, after the award of this contract, the Contractor learns that
supplies will be transported by sea, the Contractor--
(1) Shall notify the Contracting Officer of that fact; and
(2) Hereby agrees to comply with all the terms and conditions of
this clause.
* * * * *
Alternate II. * * *
* * * * *
(h) If the Contractor has indicated by the response to the
solicitation provision, Representation of Extent of Transportation by
Sea, that it did not anticipate transporting by sea any supplies, but
the contractor learns after the award of the contract that supplies
will be transported by sea, the Contractor shall notify the Contracting
Officer of that fact.
* * * * *
252.247-7024 [Removed and Reserved]
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4. Remove and reserve section 252.247-7024.
252.247-7025 [Amended]
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5. Amend section 252.247-7025, in the introductory text, by removing
``247.574(d)'' and adding ``247.574(c)'' in its place.
252.247-7026 [Amended]
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6. Amend section 252.247-7026, in the introductory text, by removing
``247.574(e)'' and adding ``247.574(d)'' in its place.
252.247-7027 [Amended]
0
7. Amend section 252.247-7027, in the introductory text, by removing
``247.574(f)'' and adding ``247.574(e)'' in its place.
[FR Doc. 2018-18246 Filed 8-23-18; 8:45 am]
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