[Federal Register Volume 84, Number 32 (Friday, February 15, 2019)]
[Rules and Regulations]
[Pages 4360-4362]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-02531]


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DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Chapter 2

[Docket DARS-2019-0003]
RIN 0750-AK46


Defense Federal Acquisition Regulation Supplement; Appendix A, 
Armed Services Board of Contract Appeals, Part 1--Charter

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

ACTION: Final rule.

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SUMMARY: DoD is issuing the updated Charter of the Armed Services Board 
of Contract Appeals (ASBCA), dated April 9, 2018. The ASBCA is 
chartered to serve as the authorized representative of the Secretary of 
Defense and the Secretaries of the Army, Navy, and Air Force in 
hearing, considering, and determining appeals by contractors from 
decisions of contracting officers or their authorized representatives 
or other authorities regarding claims on contracts under the Contract 
Disputes Act of 1978 or other remedy-granting provisions.

DATES: Effective February 15, 2019.

FOR FURTHER INFORMATION CONTACT: Ms. Jennifer Hawes, Defense 
Acquisition Regulations System, OUSD(A&S)DPAP(DARS), 3060 Defense 
Pentagon, Room 3B941, Washington, DC 20301-3060, Telephone 571-372-
6115.

SUPPLEMENTARY INFORMATION:

I. Background

    This publication of Appendix A of the Defense Federal Acquisition 
Regulation

[[Page 4361]]

Supplement (DFARS) updates the Charter of the ASBCA from the most 
recent prior version, dated May 14, 2007, to its latest version, dated 
April 9, 2018. The updated Charter implements changes to ASBCA internal 
administration to better support the Board's mission of hearing, 
considering, and determining appeals by contractors from decisions of 
contracting officers or their authorized representatives or other 
authorities on disputed questions. In addition to minor administrative 
changes and a rearranging of paragraphs to improve the logical flow of 
the document and add clarity, the following substantive changes were 
made to the Charter:
     References to ``Under Secretary of Defense for 
Acquisition, Technology and Logistics'' were changed to ``Under 
Secretary of Defense responsible for acquisition.''
     Former paragraph 4 (new paragraph 3) was shortened to 
clearly state the Board Chairman's broad powers and responsibilities 
and to remove detailed processes deemed not appropriate for this type 
of document.
     The requirement for the Board to forward quarterly reports 
of the Board's proceedings to various Defense officials was removed. 
The requirement for annual reports was retained.

II. 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 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 only 
publishes the updated ASBCA charter and is therefore not required to be 
published for public comment, because the rule does not have a 
significant effect beyond the internal operating procedures of the 
agency issuing the policy, regulation, procedure or form.

III. Executive Orders 12866 and 13563

    Executive Order (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. This is not a significant regulatory action 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).

IV. Executive Order 13771

    This rule is not an E.O. 13771 regulatory action, because this rule 
concerns regulations related to agency organization, management, or 
personnel.

III. 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 II 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.

V. Paperwork Reduction Act

    This rule does not impose any new information collection 
requirements that require the approval of the Office of Management and 
Budget under 44 U.S.C. 3501, et seq.

List of Subjects in 48 CFR Appendix A

    Government procurement.

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

    Therefore, DoD is amending 48 CFR appendix A to chapter 2 as 
follows:

Appendix A to Chapter 2--Armed Services Board of Contract Appeals

0
1. The authority citation for 48 CFR appendix A to chapter 2 is revised 
to read as follows:

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


0
2. Appendix A is amended by revising the introductory text and Part 1--
Charter to read as follows:

Appendix A to Chapter 2--Armed Services Board of Contract Appeals

* * * * *

Armed Services Board of Contract Appeals

Approved 1 May 1962
Revised 1 May 1969
Revised 1 September 1973
Revised 1 July 1979
Revised 14 May 2007
Revised 9 April 2018

Part 1--Charter

    1. There is created the Armed Services Board of Contract Appeals 
which is hereby designated as the authorized representative of the 
Secretary of Defense, the Secretary of the Army, the Secretary of 
the Navy and the Secretary of the Air Force, in hearing, considering 
and determining appeals by contractors from decisions of contracting 
officers or their authorized representatives or other authorities on 
disputed questions. These appeals may be taken (a) pursuant to the 
Contract Disputes Act of 1978 (41 U.S.C. Sections 7101-7109), (b) 
pursuant to the provisions of contracts requiring the decision by 
the Secretary of Defense or by a Secretary of a Military Department 
or their duly authorized representative, or (c) pursuant to the 
provisions of any directive whereby the Secretary of Defense or the 
Secretary of a Military Department or their authorized 
representative has granted a right of appeal not contained in the 
contract on any matter consistent with the contract appeals 
procedure. The Board may determine contract disputes for other 
departments and agencies by agreement as permitted by law. The Board 
shall operate under general policies established or approved by the 
Under Secretary of Defense responsible for acquisition and may 
perform other duties as directed not inconsistent with the Contract 
Disputes Act of 1978. The Board shall decide the matters before it 
independently.
    2. Membership of the Board shall consist of attorneys at law who 
have been qualified in the manner prescribed by the Contract 
Disputes Act of 1978. Members of the Board are hereby designated 
Administrative Judges. There shall be appointed from the Judges of 
the Board a Chairman and two or more Vice Chairmen. Appointment of 
the Chairman and Vice Chairmen and other Judges of the Board shall 
be made by the Under Secretary of Defense responsible for 
acquisition, the General Counsel of the Department of Defense, and 
the Assistant Secretaries of the Military Departments responsible 
for acquisition. The Chairman may designate a Judge of the Board to 
serve as an Acting Chairman or Acting Vice Chairman.
    3. The Chairman of the Board shall be responsible for 
establishing appropriate divisions of the Board to provide for the 
most effective and expeditious handling of appeals. The Chairman 
shall have authority to establish procedures for the issuance of 
Board decisions. The Chairman may refer an appeal of unusual 
difficulty, significant precedential importance, or serious dispute 
within the normal decision process for decision by a Senior Deciding 
Group established by the Chairman which shall have the authority to 
overturn prior Board precedent.
    4. It shall be the duty and obligation of the Judges of the 
Armed Services Board of Contract Appeals to decide appeals on the

[[Page 4362]]

record of the appeal to the best of their knowledge and ability in 
accordance with applicable contract provisions and in accordance 
with law and regulation pertinent thereto.
    5. Any Judge of the Board or any examiner, designated by the 
Chairman, shall be authorized to hold hearings, examine witnesses, 
and receive evidence and argument. A Judge of the Board shall have 
authority to administer oaths and issue subpoenas as specified in 
the Contract Disputes Act of 1978. In cases of contumacy or refusal 
to obey a subpoena, the Chairman may request orders of the court in 
the manner prescribed in the Contract Disputes Act of 1978.
    6. The Board shall have all powers necessary and incident to the 
proper performance of its duties. The Board has the authority to 
issue methods of procedure and rules and regulations for its conduct 
and for the preparation and presentation of appeals and issuance of 
opinions.
    7. The Chairman shall be responsible for the internal 
organization of the Board and for its administration. The Chairman 
shall provide within approved ceilings for the staffing of the Board 
with non-Judge personnel, including hearing examiners, as may be 
required for the performance of the functions of the Board. The 
Chairman shall appoint a Recorder of the Board. All personnel shall 
be responsible to and shall function under the direction, 
supervision and control of the Chairman.
    8. The Board will be serviced by the Department of the Army for 
administrative support as required for its operations. 
Administrative support will include budgeting, funding, fiscal 
control, manpower control and utilization, personnel administration, 
security administration, supplies, and other administrative 
services. The Departments of the Army, Navy, Air Force and the 
Office of the Secretary of Defense will participate in financing the 
Board's operations on an equal basis and to the extent determined by 
the Under Secretary of Defense (Comptroller). The cost of processing 
appeals for departments and agencies other than those in the 
Department of Defense will be reimbursed.
    9. Within 30 days following the close of a fiscal year, the 
Chairman shall forward a report of the Board's transactions and 
proceedings for the preceding fiscal year to the Under Secretary of 
Defense responsible for acquisition, the General Counsel of the 
Department of Defense, and the Assistant Secretaries of the Military 
Departments responsible for acquisition.
    10. The Board shall have a seal bearing the following 
inscription: ``Armed Services Board of Contract Appeals.'' This seal 
shall be affixed to all authentications of copies of records and to 
such other instruments as the Board may determine.
    11. This revised charter is effective April 9, 2018.

    APPROVED:

(signed) Ellen M. Lord (9 April 2018),
Under Secretary of Defense (Acquisition & Sustainment).

(signed) William S. Castle,
Acting General Counsel of the Department of Defense.

(signed) Dr. Bruce D. Jette,
Assistant Secretary of the Army (Acquisition, Logistics & 
Technology).

(signed) James F. Geurts,
Assistant Secretary of the Navy (Research, Development & 
Acquisition).

(signed) Dr. Will Roper,
Assistant Secretary of the Air Force (Acquisition).
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[FR Doc. 2019-02531 Filed 2-14-19; 8:45 am]
BILLING CODE 5001-06-P