[Federal Register Volume 85, Number 68 (Wednesday, April 8, 2020)]
[Rules and Regulations]
[Pages 19699-19700]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-06729]



Defense Acquisition Regulations System

48 CFR Parts 232 and 252

[Docket DARS-2019-0059]
RIN 0750-AK50

Defense Federal Acquisition Regulation Supplement: Modification 
of DFARS Clause ``Advance Payment Pool'' (DFARS Case 2019-D013)

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 modify the text of an 
existing DFARS clause to include the text of another DFARS clause 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 April 8, 2020.

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


I. Background

    DoD published a proposed rule in the Federal Register at 84 FR 
58364 on October 31, 2019, to include the text of DFARS clause 252.232-
7001, Disposition of Payments, in DFARS clause 252.232-7000, Advance 
Payment Pool, and then remove DFARS clause 252.232-7001 from the DFARS. 
Both clauses clarify the terms and conditions that apply when advance 
payment pool agreements are authorized under a contract. As such, these 
DFARS clauses can be combined to streamline and consolidate the 
information provided to contractors regarding advance payment pool 
agreements. No public comments were received in response to the 
proposed rule. No changes are made in the final rule from the proposed 

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 
combines two clauses on the same topic into a single clause and makes 
minor modifications to simplify clause text. This rule does not change 
the applicability of the affected clauses, which are not included in 
solicitations and contracts that are valued at or below the simplified 
acquisition threshold or for commercial items, including commercially 
available off-the-shelf items.

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 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 DFARS clause 
252.232-7000, Advance Payment Pool, to incorporate the information 
included in DFARS clause 252.232-7001, Disposition of Payments, and 
make minor changes to simplify the clause text. Combining these clauses 
will result in 252.232-7001 being removed from the DFARS. The objective 
of this rule is to streamline and consolidate the information provided 
to contractors regarding advance payment pool agreements. 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.
    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 232 and 252

    Government procurement.

Jennifer Lee Hawes,
Regulatory Control Officer, Defense Acquisition Regulations System.

    Therefore, 48 CFR parts 232 and 252 are amended as follows:

1. The authority citation for 48 CFR parts 232 and 252 continues to 
read as follows:

    Authority:  41 U.S.C. 1303 and 48 CFR chapter 1.


232.412-70  [Amended]

2. Amend section 232.412-70 by--
a. Removing paragraph (b);
b. Redesignating paragraph (c) as paragraph (b); and

[[Page 19700]]

c. In the newly redesignated paragraph (b), removing ``(See subpart 
219.71)'' and adding ``(see subpart 219.71)'' in its place.


3. Amend section 252.232-7000 by--
a. Removing the clause date of ``(DEC 1991)'' and adding ``(APR 2020)'' 
in its place;
b. In paragraph (b), removing ``(insert the name of the contractor)'' 
and adding ``[insert the name of the Contractor]'' in its place;
c. Adding paragraph (c).
    The addition reads as follows:

252.232-7000   Advance payment pool.

* * * * *
    (c) When a letter of credit has not been issued to the Contractor 
in conjunction with the contract, payment will be by a dual payee 
Treasury check made payable to the Contractor or the disbursing office 
in the Advance Payment Pool Agreement and will be forwarded to that 
disbursing office for appropriate disposition.

252.232-7001   [Removed and Reserved]

4. Remove and reserve section 252.232-7001.

252.232-7005   [Amended]

5. Amend section 252.232-7005 in the introductory text by removing 
``232.412-70(c)'' and adding ``232.412-70(b)'' in its place.

[FR Doc. 2020-06729 Filed 4-7-20; 8:45 am]