[Federal Register Volume 85, Number 109 (Friday, June 5, 2020)]
[Rules and Regulations]
[Pages 34535-34536]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-11747]
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DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System
48 CFR Parts 249 and 252
[Docket DARS-2019-0060]
RIN 0750-AK56
Defense Federal Acquisition Regulation Supplement: Modification
of DFARS Clause ``Notification of Anticipated Contract Termination or
Reduction'' (DFARS Case 2019-D019)
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 update legal and DFARS
citations in an existing DFARS clause, conform the clause text to the
current DFARS convention regarding the use of dollar thresholds in
contract clauses; and remove clause text that is no longer needed to
implement the underlying statutory language. The rule is pursuant to
action taken by the DoD Regulatory Reform Task Force.
DATES: Effective June 5, 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
58366 on October 31, 2019, to identify the dollar thresholds of the
implementing statute (10 U.S.C. 2501 note) for DFARS 249.70 and DFARS
clause 252.249-7002, Notification of Anticipated Contract Termination
or Reduction, in accordance with current DFARS drafting conventions,
and update the clause to reflect the current statute under which
employee and training opportunities apply under the clause. No public
comments were received in response to the proposed rule. Minor
editorial changes are made in the final rule to a cross-reference at
DFARS 252.249-7002(c)(2) and the formats of the statutory references.
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
simply updates legal and DFARS citations in the clause and removes
unnecessary information. This rule does not change the applicability of
the affected clause, which does not apply to contracts valued at or
below the simplified acquisition threshold, or commercial or
commercially available off-the-shelf items.
III. 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.
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 text of DFARS
clause 252.249-7002, Notification of Anticipated Contract Termination
or Reduction, to: (1) Update legal and DFARS citations in the clause;
(2) remove text that is no longer necessary to implement 10 U.S.C. 2501
note; and (3) conform the clause text to the current DFARS convention
for referencing dollar thresholds in a clause. The objective of this
rule is to provide accurate and up-to-date information to contractors
and maintain consistency within the DFARS clause text. The modification
of this DFARS text and clause is pursuant to action taken by the
Regulatory Reform Task Force under Executive Order 13777, Enforcing the
Regulatory Reform Agenda.
No public comments were received in response to the initial
regulatory flexibility analysis.
DoD does not collect data on the number of small businesses that
have been awarded contracts under a major defense programs and have
also received notice of contract termination or a substantial reduction
in funding resulting from an Appropriations Act. Senior DoD Program
Acquisition officials estimate that such notification of the
termination or substantial reduction in a major defense program occurs,
on average, no more than once or twice per year. This rule is not
expected to have a significant impact on small business entities, as it
does not impose any new requirements or change any existing
requirements for small business entities.
This rule does not include any new reporting, recordkeeping, or
other compliance requirements for small businesses.
DoD did not identify any significant alternatives that would
minimize or reduce the significant economic impact, because there is no
significant impact on small entities.
VI. Paperwork Reduction Act
The Paperwork Reduction Act (44 U.S.C. chapter 35) does apply;
however, the changes to DFARS 252.249-7002 do not impose additional
information collection requirements to the paperwork burden previously
approved under OMB Control Number 0704-0533, titled: DFARS Subpart
249--Termination of Contracts.
List of Subjects in 48 CFR Parts 249 and 252
Government procurement.
Jennifer Lee Hawes,
Regulatory Control Officer, Defense Acquisition Regulations System.
Therefore, 48 CFR parts 249 and 252 are amended as follows:
PART 249--TERMINATION OF CONTRACTS
0
1. The authority citation for part 249 is revised to read as follows:
Authority: 41 U.S.C. 1303 and 48 CFR chapter 1.
0
2. Amend section 249.7003 by--
0
a. In paragraph (a), removing ``Section 824'' and ``Job Training
Partnership Act (29 U.S.C. 1661 and 1662)'' and adding ``section 824''
and ``Workforce Innovation and Opportunity Act (29
[[Page 34536]]
U.S.C. Chapter 32)'' in their places, respectively;
0
b. In the paragraph (b) introductory text, removing ``to:'' and adding
``to--'' in its place;
0
c. In paragraph (b)(1), removing ``act.'' And adding ``act; and'' in
its place;
0
d. Revising paragraph (c).
The revision reads as follows:
249.7003 Notification of anticipated contract terminations or
reductions.
* * * * *
(c) When subcontracts have been issued, the prime contractor is
responsible for--
(1) Providing notice of the termination or substantial reduction in
funding to all first-tier subcontractors with a subcontract valued
equal to or greater than $700,000; and
(2) Requiring that each subcontractor--
(i) Provide such notice to each of its subcontractors for
subcontracts valued greater than $150,000; and
(ii) Impose a similar notice and flowdown requirement in
subcontracts valued greater than $150,000 at all tiers.
0
3. Add section 249.7004 to read as follows:
249.7004 Contract clause.
Use the clause at 252.249-7002, Notification of Anticipated
Contract Termination or Reduction, in all contracts under a major
defense program.
PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
0
4. The authority citation for part 252 continues to read as follows:
Authority: 41 U.S.C. 1303 and 48 CFR chapter 1.
0
5. Amend section 252.249-7002 by--
0
a. In the introductory text, removing ``249.7003(c)'' and adding
``249.7004'' in its place;
0
b. Removing the clause date ``(MAY 2019)'' and adding ``(JUN 2020)'' in
its place;
0
c. Revising paragraphs (b) and (c);
0
d. In paragraph (d)(1), removing ``225.870-4(c)(2)(i)(A)(1)'' and
adding ``249.7003(c)(1)'' in its place;
0
e. In paragraphs (d)(2)(i) and (ii), removing ``225.870-4(c)(2)(i)(C)''
and adding ``249.7003(c)(2)(i)'' and ``249.7003(c)(2)(ii)'' in their
place, respectively; and
0
f. Removing paragraph (e).
The revisions read as follows:
252.249-7002 Notification of Anticipated Contract Termination or
Reduction.
* * * * *
(b) Scope. This clause implements section 1372 of the National
Defense Authorization Act for Fiscal Year 1994 (Pub. L. 103-160) and
section 824 of the National Defense Authorization Act for Fiscal Year
1997 (Pub. L. 104-201), which are intended to help establish benefit
eligibility under the Workforce Innovation and Opportunity Act (29
U.S.C. chapter 32) for employees of DoD contractors and subcontractors
adversely affected by contract terminations or substantial reductions
under major defense programs.
(c) Notice to employees and state and local officials. (1) Within 2
weeks after the Contracting Officer notifies the Contractor that
contract funding will be terminated or substantially reduced, the
Contractor shall provide notice of such anticipated termination or
reduction to--
(i) Each employee representative of the Contractor's employees
whose work is directly related to the defense contract; or
(ii) If there is no such representative, each such employee;
(iii) The State or entity designated by the State to carry out
rapid response activities described in the Workforce Innovation and
Opportunity Act (29 U.S.C. 3174(a)(2)(A)(i)); and
(iv) The chief elected official of the unit of general local
government within which the adverse effect may occur.
(2) The notice provided an employee under paragraph (c)(1) of this
clause shall have the same effect as a notice of termination to the
employee for the purposes of determining whether such employee is
eligible for training, adjustment assistance, and employment services
under the Workforce Innovation and Opportunity Act (29 U.S.C. Chapter
32).
* * * * *
[FR Doc. 2020-11747 Filed 6-4-20; 8:45 am]
BILLING CODE 5001-06-P