[Federal Register Volume 84, Number 211 (Thursday, October 31, 2019)]
[Rules and Regulations]
[Pages 58337-58339]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-23806]
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DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System
48 CFR Parts 239 and 252
[Docket DARS-2019-0029]
RIN 0750-AK11
Defense Federal Acquisition Regulation Supplement: Modification
of DFARS Clause ``Obligation of the Government'' (DFARS Case 2018-D046)
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 modify the text of an
existing DFARS clause to include the text of two other DFARS clauses on
the same subject, in an effort to streamline contract terms and
conditions for contractors, pursuant to action taken by the Regulatory
Reform Task Force.
DATES: Effective October 31, 2019.
FOR FURTHER INFORMATION CONTACT: Ms. Carrie Moore, telephone 571-372-
6093.
SUPPLEMENTARY INFORMATION:
I. Background
DoD published a proposed rule in the Federal Register at 84 FR
30988 on June 28, 2019, to rename and modify DFARS clause 252.239-7013,
Obligation of the Government, by: (1) Incorporating the information
included in DFARS clause 252.239-7014, Term of Agreement; (2) creating
an alternate for DFARS clause 252.239-7013 that is used in certain
circumstances, in lieu of the basic clause, and includes the
information in DFARS clauses 252.239-7013, -7014, and -7015; and, (3)
amending the clause text to align with the termination notification
requirement in the Federal Acquisition Regulation. As a result, DFARS
clauses 252.239-7014 and 252.239-7015 are removed from the DFARS. No
public comments were received in response to the proposed rule. An
editorial change is made in the final rule to the clause title of DFARS
252.239-7013 to add a designation of ``Basic'' or ``Alternate I'' to
the respective clause titles.
[[Page 58338]]
II. Applicability to Contracts at or Below the Simplified Acquisition
Threshold and for Commercial Items, Including Commercially Available
Off-the-Shelf Items
This rule does not create any new provisions or clauses. The
rulemaking combines three existing clauses on the same topic into a
basic and alternate clause and updates a notification timeframe within
the clause to comply with existing regulations. This rule does not
change the applicability of the affected clause.
III. Executive Orders 12866 and 13563
Executive Orders (E.O.s) 12866 and E.O. 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.
IV. 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.
V. 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:
The Department of Defense is amending the Defense Federal
Acquisition Regulation Supplement (DFARS) to: Rename DFARS clause
252.239-7013, Obligation of the Government, to include the information
in DFARS clause 252.239-7014, Term of Agreement; create an alternate
for DFARS clause 252.239-7013 that is used in certain circumstances, in
lieu of the basic clause, and include the information in DFARS clauses
252.239-7013, -7014, and -7015; and, amend the text of 252.239-7013 to
align with the termination notification timeframe in the Federal
Acquisition Regulation. Combining these clauses will result in DFARS
clauses 252.239-7014 and 252.239-7015 being removed from the DFARS. The
objectives of this rule are to streamline contract terms and conditions
pertaining to telecommunications services and update the requisite
termination notification timeframe to comply with existing regulations.
The modification of these DFARS clauses supports a recommendation
from the DoD Regulatory Reform Task Force. No public comments were
received in response to the initial regulatory flexibility analysis.
This rule is not expected to have a significant economic impact on
a substantial number of small entities within the meaning of the
Regulatory Flexibility Act, 5 U.S.C. 601, et seq., because it is simply
combining two existing clauses that address the same topic into a
single comprehensive clause, and clarifies the current practices
regarding DoD liability to reimburse telecommunication services
contractors in certain circumstances.
The Federal Procurement Data System (FPDS) does not collect
information on the number of basic agreements that are negotiated or
contracts and orders placed under basic agreements with contractors;
instead, FPDS collects data on the orders and contracts awarded for
telecommunication services, of which a percentage of those awards
incorporate the terms and conditions of a basic agreement. Based on
fiscal year 2018 data from FPDS, the Government awarded approximately
8,670 contracts and orders for services to 1,787 unique entities under
the product and supply code (PSC) D3--Information Technology and
Telecommunications. Of the 8,671 contracts and orders awarded,
approximately 2,444 (28%) awards were made to 1,047 (59%) unique small
businesses entities. The PSC D3 does not breakdown further into
information technology services and telecommunications services;
therefore, the number of small business entities affected by this rule
is expected to be less than 1,047.
This rule does not include any new reporting, recordkeeping, or
other compliance requirements for small businesses. This rule does not
duplicate, overlap, or conflict with any other Federal rules. There are
no known significant alternative approaches to the rule that would meet
the stated objectives.
VI. 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 Parts 239 and 252
Government procurement.
Jennifer Lee Hawes,
Regulatory Control Officer, Defense Acquisition Regulations System.
Therefore, 48 CFR parts 239 and 252 are amended as follows:
0
1. The authority citation for 48 CFR parts 239 and 252 continues to
read as follows:
Authority: 41 U.S.C. 1303 and 48 CFR chapter 1.
PART 239--ACQUISITION OF INFORMATION TECHNOLOGY
0
2. Amend section 239.7411 by revising paragraph (c) to read as follows:
239.7411 Contract clauses.
* * * * *
(c) Use the basic or alternate of the clause at 252.239-7013, Term
of Agreement and Continuation of Services, in basic agreements for
telecommunications services.
(1) Use the basic clause in basic agreements that do not supersede
an existing basic agreement with the contractor.
(2) Use the alternate I clause in basic agreements that supersede
an existing basic agreement with the contractor. Complete paragraph
(c)(1) of the clause with the basic agreement number, date, and
contacting office that issued the basic agreement being superseded.
* * * * *
PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
0
3. Revise section 252.239-7013 to read as follows:
252.239-7013 Term of Agreement and Continuation of Services.
Basic. As prescribed in 239.7411(c)(1), use the following clause:
Term of Agreement and Continuation of Services--Basic (Oct 2019)
(a) This basic agreement is not a contract. The Government
incurs liability only upon issuance of a communication service
authorization, which is a contract that incorporates the terms and
conditions of this basic agreement.
(b) This agreement shall continue in force from year to year,
unless terminated by either party by 30 days' written notice.
Termination of this basic agreement does not terminate or cancel any
communication service authorizations issued under this basic
agreement prior to the termination.
(c) Communication service authorizations issued under this basic
agreement may be modified to incorporate the terms and
[[Page 58339]]
conditions of a new basic agreement negotiated with the Contractor.
(End of clause)
Alternate I. As prescribed in 239.7411(c)(2), use the following
clause, which uses a different paragraph (c) than the basic clause and
adds a new paragraph (d).
Term of Agreement and Continuation of Services--Alternate I (Oct 2019)
(a) This basic agreement is not a contract. The Government
incurs liability only upon issuance of a communication service
authorization, which is a contract that incorporates the terms and
conditions of this basic agreement.
(b) This agreement shall continue in force from year to year,
unless terminated by either party by 30 days' written notice.
Termination of this basic agreement does not terminate or cancel any
communication service authorizations issued under this basic
agreement prior to the termination.
(c) The Contractor's current communication services
authorizations have been modified to incorporate the terms and
conditions of this basic agreement.
(1) All current communication service authorizations issued by
____ that incorporate Basic Agreement Number ____, dated ____, are
modified to incorporate this basic agreement.
(2) Current communication service authorizations, issued by the
activity in paragraph (c)(1) of this clause, that incorporate other
agreements with the Contractor may also be modified to incorporate
this basic agreement.
(d) Communication service authorizations issued under this basic
agreement may be modified to incorporate a new basic agreement with
the Contractor.
(End of clause)
252.239-7014 [Removed and Reserved]
0
4. Remove and reserve section 252.239-7014.
252.239-7015 [Removed and Reserved]
0
5. Remove and reserve section 252.239-7015.
[FR Doc. 2019-23806 Filed 10-30-19; 8:45 am]
BILLING CODE 5001-06-P