[Federal Register Volume 83, Number 189 (Friday, September 28, 2018)]
[Rules and Regulations]
[Pages 49181-49182]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-20974]


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DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Parts 247 and 252

[Docket DARS-2018-0046]
RIN 0750-AK01


Defense Federal Acquisition Regulation Supplement: Repeal of 
DFARS Clause ``Indefinite Quantities--Fixed Charges'' (DFARS Case 2018-
D039)

AGENCY: Defense Acquisition Regulations System, Department of Defense 
(DoD).

ACTION: Final rule.

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SUMMARY: DoD is issuing a final rule amending the Defense Federal 
Acquisition Regulation Supplement (DFARS) to remove a clause that is no 
longer necessary.

DATES: Effective September 28, 2018.

FOR FURTHER INFORMATION CONTACT: Ms. Carrie Moore, telephone 571-372-
6093.

SUPPLEMENTARY INFORMATION: 

I. Background

    DoD is amending the DFARS to remove the DFARS clause 252.247-7004, 
Indefinite Quantities--Fixed Charges, and the associated clause 
prescription at DFARS 247.270-4(d). When applicable, the DFARS clause 
is used in indefinite-delivery, indefinite-quantity contracts for 
stevedoring services to notify the contractor that the Government is 
obligated to pay the contractor the fixed monthly amount established in 
the contract.
    This notification is not necessary, since line items are 
established in all contracts to describe the items being purchased, as 
well as the pricing, funding, and delivery information for each item. 
The award of the contract is the Government's agreement to pay the 
contractor for the line items, in accordance with the contract; 
therefore, this DFARS clause provides no additional benefit for the 
contractor or the Government. As such, this DFARS clause is unnecessary 
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 
clause. Subsequently, the DoD Task Force reviewed the requirements of 
DFARS clause 252.247-7004, Indefinite Quantities--Fixed Charges, and 
determined that the DFARS clause was unnecessary 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 DFARS clause 252.247-7004, Indefinite 
Quantities--Fixed Charges, which is obsolete. Therefore, the rule does 
not impose any new requirements on contracts at or below the simplified 
acquisition threshold or for commercial items, including commercially 
available off-the-shelf items.

III. 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 (OMB), 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).

[[Page 49182]]

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 
Statute

    The statute that applies to the publication of the Federal 
Acquisition Regulation (FAR) is 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 
notification 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 V. 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 OMB under the Paperwork Reduction Act 
(44 U.S.C. chapter 35).

List of Subjects in 48 CFR Parts 247 and 252

    Government procurement.

Jennifer Lee Hawes,
Regulatory Control Officer, Defense Acquisition Regulations System.

    Therefore, 48 CFR parts 247 and 252 are amended as follows:

0
1. The authority citation for 48 CFR parts 247 and 252 continues to 
read as follows:

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

PART 247--TRANSPORTATION


247.270-4  [Amended]

0
2. Amend section 247.270-4 by--
0
a. Removing paragraph (d); and
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b. Redesignating paragraph (e) as paragraph (d).

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES


252.247-7004  [Removed and Reserved]

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3. Remove and reserve section 252.247-7004.


252.247-7007   [Amended]

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4. Amend section 252.247-7007, in the introductory text, by removing 
``247.270-4(e)'' and adding ``247.270-4(d)'' in its place.

[FR Doc. 2018-20974 Filed 9-27-18; 8:45 am]
 BILLING CODE 5006-01-P