[Federal Register Volume 85, Number 68 (Wednesday, April 8, 2020)]
[Rules and Regulations]
[Pages 19691-19692]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-06726]
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System
48 CFR Parts 204 and 252
[Docket DARS-2019-0049]
RIN 0750-AK14
Defense Federal Acquisition Regulation Supplement: Modification
of DFARS Clause ``Payment for Subline Items Not Separately Priced''
(DFARS Case 2018-D050)
AGENCY: Defense Acquisition Regulations System, Department of Defense
(DoD).
ACTION: Final rule.
-----------------------------------------------------------------------
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 clarify its intent and conform its language to
current DFARS terminology, pursuant to action taken by the Regulatory
Reform Task Force.
DATES: Effective April 8, 2020.
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
58362 on October 31, 2019, to modify DFARS clause 252.207-7002, Payment
for Subline Items Not Separately Priced, to conform the text of the
clause to the current contract line item structure terminology by
replacing ``contract line item'' with ``contract line or subline item''
and add a prescription for the DFARS clause in the applicable section
of DFARS 204.71. No public comments were received in response to the
proposed rule. No changes are made in the final rule from the proposed
rule.
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 rule
updates language used in the clause text to conform with current
contract line item structure terminology. This rule does not change the
applicability of the affected clause.
III. Executive Orders 12866 and 13563
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.
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
[[Page 19692]]
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 modify the text of DFARS
clause 252.204-7002, Payment for Subline Items Not Separately Priced,
to simplify and conform the clause text to current Government contract
line item structure terminology.
The objective of this rule is to clarify the intent of the clause
for contractors, when submitting invoices under contracts that contain
items that are not separately priced. The modification of this DFARS
clause supports a recommendation from the DoD Regulatory Reform Task
Force. No public comments were received in response to the initial
regulatory flexibility analysis.
Based on an average of data for fiscal year 2016 through 2018 from
the Federal Procurement Data System and Electronic Document Access, DoD
awards approximately 12,435 contracts annually that includes the DFARS
clause 252.204-7002. Of the 12,435 awards, approximately 4,924
contracts (40%) are awarded to 1,564 unique small business entities.
Based on the available data and the objective of the rule, DoD does not
anticipate that this proposed rule will significantly impact small
business entities. 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 204 and 252
Government procurement.
Jennifer Lee Hawes,
Regulatory Control Officer, Defense Acquisition Regulations System.
Therefore, 48 CFR parts 204 and 252 are amended as follows:
0
1. The authority citation for 48 CFR parts 204 and 252 continues to
read as follows:
Authority: 41 U.S.C. 1303 and 48 CFR chapter 1.
PART 204--ADMINISTRATIVE AND INFORMATION MATTERS
0
2. Amend section 204.7104-1:
0
a. In paragraph (b)(3)(iii), by removing ``subsection'' and adding
``section'' in its place; and
0
b. By revising paragraph (b)(3)(iv).
The revision reads as follows:
204.7104-1 Criteria for establishing.
* * * * *
(b) * * *
(3) * * *
(iv) When the price for items not separately priced is included in
the price of another contract line or subline item, it may be necessary
to withhold payment on the priced contract line or subline item until
the included line or subline items that are not separately priced have
been delivered. See the clause at 252.204-7002, Payment for Contract
Line or Subline Items Not Separately Priced.
0
3. Revise section 204.7109 to read as follows:
204.7109 Contract clauses.
(a) Use the clause at 252.204-7002, Payment for Contract Line or
Subline Items Not Separately Priced, in solicitations and contracts
when the price for items not separately priced is included in the price
of another contract line or subline item.
(b) Use the clause at 252.204-7006, Billing Instructions, in
solicitations and contracts if Section G includes--
(1) Any of the standard payment instructions at PGI 204.7108(b)(2);
or
(2) Other payment instructions, in accordance with PGI
204.7108(d)(12), that require contractor identification of the contract
line item(s) on the payment request.
PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
0
4. Revise section 252.204-7002 to read as follows:
252.204-7002 Payment for Contract Line or Subline Items Not
Separately Priced.
As prescribed in 204.7109(a), use the following clause:
Payment for Contract Line or Subline Items Not Separately Priced (APR
2020)
(a) If the schedule in this contract contains any contract line
or subline items identified as not separately priced (NSP), it means
that the unit price for the NSP line or subline item is included in
the unit price of another, related line or subline item.
(b) The Contractor shall not invoice the Government for an item
that includes in its price an NSP item until--
(1) The Contractor has also delivered the NSP item included in
the price of the item being invoiced; and
(2) The Government has accepted the NSP item.
(c) This clause does not apply to technical data.
(End of clause)
252.204-7006 [Amended]
0
5. Amend section 252.204-7006 introductory text by removing
``204.7109'' and adding ``204.7109(b)'' in its place.
[FR Doc. 2020-06726 Filed 4-7-20; 8:45 am]
BILLING CODE 5001-06-P