[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