[Federal Register Volume 85, Number 109 (Friday, June 5, 2020)]
[Proposed Rules]
[Pages 34576-34578]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-11753]
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DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System
48 CFR Parts 239 and 252
[Docket DARS-2019-0031]
RIN 0750-AK07
Defense Federal Acquisition Regulation Supplement: Repeal of
DFARS Clause ``Tariff Information'' (DFARS Case 2018-D044)
AGENCY: Defense Acquisition Regulations System, Department of Defense
(DoD).
ACTION: Proposed rule.
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SUMMARY: DoD is proposing to amend the Defense Federal Acquisition
Regulation Supplement (DFARS) to remove a clause that is no longer
necessary.
DATES: Comments on the proposed rule should be submitted in writing to
the address shown below on or before August 4, 2020, to be considered
in the formation of a final rule.
ADDRESSES: Submit comments identified by DFARS Case 2018-D044, using
any of the following methods:
[cir] Federal eRulemaking Portal: http://www.regulations.gov.
Search for ``DFARS Case 2018-D044''. Select ``Submit a Comment Now''
and follow the instructions provided to submit a comment. Please
include ``DFARS Case 2018-D044'' on any attached document.
[cir] Email: [email protected]. Include DFARS Case 2018-D044 in
the subject line of the message.
[cir] Fax: 571-372-6094.
[cir] Mail: Defense Acquisition Regulations System, Attn: Ms.
Carrie Moore, OUSD(A&S)DPC/DARS, Room 3B941, 3060 Defense Pentagon,
Washington, DC 20301-3060.
Comments received generally will be posted without change to http://www.regulations.gov, including any personal information provided. To
confirm receipt of your comment(s), please check www.regulations.gov,
approximately two to three days after submission to verify posting
(except allow 30 days for posting of comments submitted by mail).
FOR FURTHER INFORMATION CONTACT: Ms. Carrie Moore, telephone 571-372-
6093.
SUPPLEMENTARY INFORMATION:
[[Page 34577]]
I. Background
DoD is proposing to amend the DFARS to remove the DFARS clause
252.239-7006, Tariff Information, and the associated clause
prescription at DFARS 239.7411(a). This clause is prescribed for use in
solicitations, contracts, and basic agreements for telecommunications
services. The clause requires the contractor to provide the contracting
officer with the following information:
Upon request, a copy of the contractor's existing tariffs.
Before filing, a copy of any application to be made to a
regulatory agency that requests new or changes to rates, charges,
services, or regulations related to any tariff or to any of the
facilities or services furnished primarily to the Government.
Upon request, all supporting documentation prepared in
connection with any application to a regulatory agency.
Notice of any application that anyone other than the
contractor files with a regulatory body which affects or will affect
the rate or conditions of services under the agreement or contract.
This clause was added to the DFARS to implement a standardized
approach across DoD for addressing critical issues associated with the
acquisition of telecommunication services. Since its implementation,
technological advances, and the passage of additional telecommunication
regulations at 47 CFR 42.10, have made this DFARS clause unnecessary.
Pursuant to 47 CFR 42.10, telecommunications carriers are now required
to make tariff and non-tariff information available to the public
online at the carrier's internet website and to update the information
regularly. Additionally, online databases and tools have been created
to track and monitor changes in telecommunications tariffs, prices, and
services. Since contracting officers are now able review carriers'
websites and access online tariff tools and databases as needed, it is
unnecessary and burdensome to require the contractor to provide this
information separately to the contracting officer in accordance with
the clause. As such, this DFARS clause can be removed.
The removal of this DFARS text supports a recommendation from the
DoD Regulatory Reform Task Force. On February 24, 2017, the President
signed Executive Order (E.O.) 13777, ``Enforcing the Regulatory Reform
Agenda,'' which established a Federal policy ``to alleviate unnecessary
regulatory burdens'' on the American people. In accordance with E.O.
13777, DoD established a Regulatory Reform Task Force to review and
validate DoD regulations, including the DFARS. Public notification of
the establishment of the DFARS Subgroup to the DoD Regulatory Reform
Task Force, for the purpose of reviewing DFARS provisions and clauses,
was published in the Federal Register at 82 FR 28041 on June 20, 2017
(see also 82 FR 35741 (August 1, 2017)), and requested public input. No
public comments were received on this clause. Subsequently, the DoD
Task Force reviewed the requirements of DFARS clause 252.239-7006,
Tariff Information, and determined that the DFARS coverage was
unnecessary and recommended removal.
II. Applicability to Contracts at or Below the Simplified Acquisition
Threshold and for Commercial Items, Including Commercially Available
Off-the-Shelf Items
This rule only removes obsolete DFARS clause 252.239-7006, Tariff
Information. Therefore, the rule does not impose any new requirements
on contracts at or below the simplified acquisition threshold and for
commercial items, including commercially available off-the-shelf items.
III. Expected Cost Savings
This rule impacts only telecommunication service providers who do
business, or want to do business, with DoD. DFARS clause 252.239-7006,
Tariff Information, requires telecommunications service contractors to
submit certain tariff and non-tariff information to DoD when requested
by the contracting officer or as specified in the clause. Removal of
this DFARS clause is expected to result in savings for both DoD and DoD
contractors that provide telecommunications services.
The following is a summary of the estimated public and Government
cost savings:
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Summary Public Government Total
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Present Value................................................... -$1,624,014 -$406,000 -$2,030,014
Annualized Costs................................................ -113,681 -28,420 -142,101
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To access the full Regulatory Cost Analysis for this rule, go to
the Federal eRulemaking Portal at www.regulations.gov, search for
``DFARS Case 2018-D044,'' click ``Open Docket,'' and view ``Supporting
Documents.''
IV. 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.
V. Executive Order 13771
This rule is expected to be an E.O. 13771 deregulatory action. We
estimate that this rule generates $2.03 million in annualized cost
savings, discounted at 7 percent relative to year 2016, over a
perpetual time horizon. Details on the estimated cost savings can be
found in section III. of this preamble.
VI. Regulatory Flexibility Act
DoD does not expect this proposed rule 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 the rule only applies to major weapon system acquisition
programs. However, an initial regulatory flexibility analysis has been
performed and is summarized as follows:
DoD is proposing to amend the Defense Federal Acquisition
Regulation Supplement (DFARS) to implement a recommendation from the
DoD Regulatory Task Force established pursuant to Executive Order
13777, Enforcing the Regulatory Reform Agenda, to repeal the clause at
DFARS 252.239-7006, Tariff Information, and the associated clause
prescription at DFARS 239.7411(a).
The objective of this rule is to remove the requirement for
contractors to report
[[Page 34578]]
tariff information under the DFARS clause. The legal basis for this
change is 41 U.S.C. 1303.
According to the Electronic Document Access database, DoD awards
approximately 855 contracts to 83 unique contractors each year that
include DFARS clause 252.239-7006. It is estimated that 171 of those
contracts are awarded to small entities.
This proposed rule does not include any new reporting or
recordkeeping requirements for small entities. Rather this rule reduces
the information collection requirements approved under OMB Control
Number 0704-0341. Small entities will no longer be required to provide
tariff information to the contracting officer in accordance with DFARS
clause 252.239-7006.
The rule does not duplicate, overlap, or conflict with any other
Federal rules.
There are no known significant alternative approaches to the
proposed rule that would meet the policy objective of the rule.
DoD invites comments from small business concerns and other
interested parties on the expected impact of this rule on small
entities.
DoD will also consider comments from small entities concerning the
existing regulations in subparts affected by this rule in accordance
with 5 U.S.C. 610. Interested parties must submit such comments
separately and should cite 5 U.S.C. 610 (DFARS Case 2018-D044), in
correspondence.
VII. Paperwork Reduction Act
This rule affects the information collection requirements in the
DFARS provision 252.239-7006, Tariff Information, currently approved
under OMB Control Number 0704-0341, entitled ``Defense Federal
Acquisition Regulation Supplement (DFARS) Part 239, Acquisition of
Information Technology and associated clauses at DFARS 252.239-7000 and
252.239-7006.'' The rule revises an information collection requirement,
which requires the approval of OMB under the Paperwork Reduction Act
(44 U.S.C. chapter 35). Accordingly, DoD has submitted a request to OMB
for approval of a revised information collection.
A. Public Reporting Burden
Public reporting burden for this previously approved collection of
information is estimated to average 2 hours per response, including the
time for reviewing instructions, searching existing data sources,
gathering and maintaining the data needed, and completing and reviewing
the collection of information. This rule proposes to eliminate DFARS
252.239-7006, Tariff Information, thereby reducing the associated
current annual reporting burden and OMB inventory of hours as follows:
Respondents: 83.
Responses per respondent: Approximately 10.3.
Total annual responses: 855.
Hours per response: 2 hours.
Total response Burden Hours: 1,710.
Request for Comments Regarding Paperwork Burden Reduction. Written
comments and recommendations on the proposed reduction of this
information collection should be sent to Ms. Jasmeet Seehra at the
Office of Management and Budget, Desk Officer for DoD, Room 10236, New
Executive Office Building, Washington, DC 20503, or email
[email protected], with a copy to the Defense Acquisition
Regulations System, Attn: Carrie Moore; OUSD(A&S)DPC/DARS, Room 3B941,
3060 Defense Pentagon, Washington, DC 20301-3060. Comments can be
received from 30 to 60 days after the date of this notification, but
comments to OMB will be most useful if received by OMB within 30 days
after the date of this notification.
To request more information on this proposed information collection
or to obtain a copy of the proposal and associated collection
instruments, please write to the Defense Acquisition Regulations
System, Attn: Carrie Moore, OUSD(A&S)DPC/DARS, Room 3B941, 3060 Defense
Pentagon, Washington, DC 20301-3060, or email [email protected].
Include DFARS Case 2018-D044 in the subject line of the message.
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 proposed to be 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
239.7411 [Amended]
0
2. Amend section 239.7411 by removing paragraph (a)(3) and
redesignating paragraph (a)(4) as paragraph (a)(3).
PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
252.239-7006 [Removed and Reserved]
0
3. Remove and reserve section 252.239-7006.
[FR Doc. 2020-11753 Filed 6-4-20; 8:45 am]
BILLING CODE 5001-06-P