[Federal Register Volume 83, Number 245 (Friday, December 21, 2018)]
[Rules and Regulations]
[Pages 65562-65564]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-27556]


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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: Final rule.

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SUMMARY: DoD is issuing a final rule amending the Defense Federal 
Acquisition Regulation Supplement (DFARS) to change the entity to which 
contractors submit Summary Subcontract Reports in the Electronic 
Subcontracting Reporting System (eSRS) and to change the entity that 
acknowledges receipt of, or rejects, the reports in eSRS.

[[Page 65563]]


DATES: Effective December 21, 2018.

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

SUPPLEMENTARY INFORMATION: 

I. Background

    DoD published a proposed rule in the Federal Register at 83 FR 
30666 on June 29, 2018, 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.
    There were no public comments submitted in response to the proposed 
rule. There are no changes made to the final rule.

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

    This rule amends the clause at DFARS 252.219-7003, Small Business 
Subcontracting Plan (DoD Contracts), and its Alternate I. The objective 
of the rule is to simplify 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 Simplified Acquisition 
Threshold, 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 commercially available off-the-shelf (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. As such, DoD is applying the rule 
to contracts for the acquisition of commercial items, including COTS 
items.

III. 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 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 creates problems with duplicate 
subcontracting data. By requiring submission and review of SSRs at the 
DoD level, this rule resolves 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:

----------------------------------------------------------------------------------------------------------------
                        Summary                                Public           Government           Total
----------------------------------------------------------------------------------------------------------------
Present Value..........................................          -$384,404          -$101,487          -$485,891
Annualized Costs.......................................            -26,908             -7,104            -34,012
Annualized Value Costs (as of 2016 if Year 1 is 2019)..            -21,965             -5,799            -27,764
----------------------------------------------------------------------------------------------------------------

    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.''

IV. 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.

V. Executive Order 13771

    This final rule is considered to be an E.O. 13771 deregulatory 
action. The total annualized value of the cost savings is $27,764 (as 
of 2016 if Year 1 is 2019). Details on the estimated cost savings can 
be found in section III of this preamble.

VI. Regulatory Flexibility Act

    A final regulatory flexibility analysis (FRFA) has been prepared 
consistent with the Regulatory Flexibility Act, 5 U.S.C. 601, et seq. 
The FRFA is summarized as follows:
    This final rule is necessary to provide updates on the submission 
and review of Summary Subcontract Reports (SSRs) in the Electronic 
Subcontracting Reporting System (eSRS). This rule amends the DFARS to 
require contractors with individual subcontracting plans to submit a 
single, consolidated SSR in eSRS at the DoD level instead of submitting 
multiple SSRs to departments and agencies within DoD. The consolidated 
SSR will be acknowledged or rejected in eSRS at the DoD level. The rule 
will bring the clause at DFARS 252.219-7003, Small Business 
Subcontracting Plan (DoD Contracts), and its Alternate I, into 
compliance with the requirement for a consolidated SSR in the clause at 
FAR 52.219-9, Small Business Subcontracting Plan.
    There were no issues raised by the public in response to the 
initial regulatory flexibility analysis provided in the proposed rule.
    The rule will apply 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.

[[Page 65564]]

    The rule does not impose any reporting or recordkeeping 
requirements on any small entities.
    There are no known alternative approaches that would accomplish the 
stated objectives.

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 Part 252

    Government procurement.

Jennifer Lee Hawes,
Regulatory Control Officer, Defense Acquisition Regulations System.
    Therefore, 48 CFR part 252 is 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 ``(DEC 2018)'' 
in its place;
0
b. Revising paragraphs (a), (b), (f)(1)(ii), and (f)(2)(ii);
0
c. Removing paragraph (f)(2)(iii); and
0
d. In Alternate I--
0
i. Removing the clause date of ``(APR 2018)'' and adding ``(DEC 2018)'' 
in its place; and
0
ii. Revising paragraphs (a), (b), (f)(1)(ii), and (f)(2).
    The revisions reads 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 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) * * *
    (ii) Submit the consolidated SSR for an individual subcontracting 
plan to the ``Department of Defense.''
    (2) * * *
    (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) 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) * * *
    (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. 2018-27556 Filed 12-20-18; 8:45 am]
 BILLING CODE 5001-06-P