[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]
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DEPARTMENT OF DEFENSE
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
(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 June 28, 2019.
FOR FURTHER INFORMATION CONTACT: Ms. Carrie Moore, telephone 571-372-
6093.
SUPPLEMENTARY INFORMATION:
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
contract.
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
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 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
a
[[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
negligible.
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
0
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.
PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
252.247-7001 [Removed and Reserved]
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3. Remove and reserve section 252.247-7001.
252.247-7002 [Amended]
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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]
0
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]
BILLING CODE 5001-06-P