[Federal Register Volume 84, Number 125 (Friday, June 28, 2019)]
[Rules and Regulations]
[Pages 30952-30953]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-13743]



Defense Acquisition Regulations System

48 CFR Parts 247 and 252

[Docket DARS-2019-0032]
RIN 0750-AK08

Defense Federal Acquisition Regulation Supplement: Repeal of 
DFARS Clause ``Price Adjustment'' (DFARS Case 2018-D048)

AGENCY: Defense Acquisition Regulations System, Department of Defense 

ACTION: Final rule.


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 June 28, 2019.

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


I. Background

    DoD is amending the DFARS to remove DFARS clause 252.247-7001, 
Price Adjustment, and the associated clause prescription at DFARS 
247.270-4. Included in solicitations and contracts for stevedoring 
services when using sealed bidding, this clause: Requires a contractor 
to warrant that the prices in the contract apply to, based upon, and 
exclude certain criteria; requires a contractor to notify the 
Government of any changes to collective bargaining agreements that 
apply to its direct labor employees and will impact the contractor's 
cost to perform; limits the upward adjustment of prices to a stated 
percentage and clarifies the terms and process for making such 
adjustments; and, requires a contractor to provide a statement 
pertaining to rates of pay for labor with its final invoice under the 
    DoD subject matter experts on the acquisition of stevedoring 
services across DoD advise that sealed bidding is not used to procure 
such services and, as such, this clause is not included in stevedoring 
contracts. Federal Acquisition Regulation (FAR) clauses 52.222-41, 
Service Contract Labor Standards; 52.222-43, Fair Labor Standards Act 
and Service Contract Labor Standards--Price Adjustment (Multiple Year 
and Option Contracts); and 52.222-44, Fair Labor Standards Act and 
Service Contract Labor Standards--Price Adjustment; as well as DFARS 
clause 252.247-7002, Revision of Prices, adequately address price 
adjustments resulting from changes in wage rates or benefits and are 
currently included in stevedoring contracts, as applicable.
    Since DFARS clause 252.247-7001 is not used and other FAR and DFARS 
clauses can be used to provide the necessary information to contractors 
performing on stevedoring contracts, this DFARS clause is no longer 
necessary 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. The DoD Task Force reviewed the 
requirements of DFARS clause 252.247-7001, Pricing Adjustments, and 
determined that the DFARS coverage was unnecessary and recommended 

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 obsolete DFARS clause 252.247-7001, Pricing 
Adjustments. Therefore, the rule does not impose any new requirements 
on contracts at or below the simplified acquisition threshold and for 
commercial items, including commercially available off-the-shelf items

III. Publication of This Final Rule for Public Comment Is Not Required 
by Statute

    The statute that applies to the publication of the 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 

[[Page 30953]]

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 is 
merely removing an obsolete clause from the DFARS.

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 rule is not subject to E.O. 13771, because this rule is not a 
significant regulatory action under E.O. 12866.

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 III. 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 Paperwork Reduction Act (44 U.S.C. chapter 35) applies. This 
rule affects the information collection requirements in DFARS clause 
252.241-7001, Price Adjustment, currently approved under OMB Control 
Number 0704-0245, entitled ``Defense Federal Acquisition Regulation 
Supplement (DFARS) Part 247, Transportation, and associated clauses at 
DFARS 252.247.'' However, the reduction in burden and savings is 

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:

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.


2. Revise section 247.270-4 to read as follows:

247.270-4   Contract clauses.

    Use the following clauses in solicitations and contracts for 
stevedoring services as indicated:
    (a) 252.247-7000, Hardship Conditions.
    (b) 252.247-7002, Revision of Prices, when using negotiation.
    (c) 252.247-7007, Liability and Insurance.


    252.247-7001 [Removed and Reserved]

3. Remove and reserve section 252.247-7001.

252.247-7002   [Amended]

4. Amend section 252.247-7002 introductory text by removing ``247.270-
4(c)'' and adding ``247.270-4(b)'' in its place.

252.247-7007   [Amended]

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

[FR Doc. 2019-13743 Filed 6-27-19; 8:45 am]