[Federal Register Volume 87, Number 82 (Thursday, April 28, 2022)]
[Rules and Regulations]
[Pages 25152-25153]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-08816]


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DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Parts 232 and 252

[Docket DARS-2022-0009]
RIN 0750-AL53


Defense Federal Acquisition Regulation Supplement: Repeal of 
DFARS Provision ``Payment in Local Currency (Afghanistan)'' (DFARS Case 
2022-D001)

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 remove a solicitation 
provision that is no longer necessary.

DATES: Effective April 28, 2022.

FOR FURTHER INFORMATION CONTACT: Ms. Barbara J. Salcido, telephone 571-
372-6102.

SUPPLEMENTARY INFORMATION: 

I. Background

    As required at DFARS subpart 232.72, Payment in Local Currency 
(Afghanistan), DFARS solicitation provision 252.232-7014, Payment in 
Local Currency (Afghanistan), is included in all solicitations, 
including solicitations using Federal Acquisition Regulation (FAR) part 
12 procedures for the acquisition of commercial items, for performance 
in Afghanistan. The provision notifies host nation (Afghan) vendors 
that the contract resulting from the solicitation will be paid in local 
currency (Afghani) via electronic funds transfer to a local (Afghan) 
banking institution unless an exception applies. It also notifies host 
nation vendors that contracts would not be awarded if they did not bank 
locally. Host nation vendors were required to submit quotations and 
offers in U.S. dollars, but the contract would be converted to Afghani 
using the current U.S. budget rate (i.e., U.S. Treasury rate of 
exchange) upon award.
    Due to the drawdown of operations in Afghanistan, the text at DFARS 
232.72 and solicitation provision 252.232-7014 are no longer required. 
The U.S. Department of the Treasury has placed the Taliban, the de 
facto government in Afghanistan, on the Office of Foreign Assets 
Control Sanction List. Therefore, payment cannot be made to an Afghan 
vendor in Afghani via electronic funds to an Afghan banking 
institution. Consequently, this rule is repealing DFARS subpart 232.72 
and solicitation provision 252.232-7014, since these requirements are 
rendered inoperable with the drawdown of operations in Afghanistan.

II. Publication of This Final Rule for Public Comment Is Not Required 
by Statute

    The statute that applies to the publication of the FAR is 41 U.S.C. 
1707, Publication of Proposed Regulations. Subsection (a)(1) of the 
statute requires that a procurement policy, regulation, procedure or 
form (including an amendment or modification thereof) must be published 
for public comment if it relates to the expenditure of appropriated 
funds and has either a significant effect beyond the internal operating 
procedures of the agency issuing the policy, regulation, procedure or 
form, or has a significant cost or administrative impact on contractors 
or offerors. This final rule is not required to be published for public 
comment, because the rule is merely removing an obsolete solicitation 
provision from the DFARS. The rule does not have a significant cost or 
administrative impact on contractors or offerors and does not have a 
significant effect beyond DoD's internal operating procedures.

III. Applicability to Contracts at or Below the Simplified Acquisition 
Threshold, for Commercial Products Including Commercially Available 
Off-the-Shelf Items, and for Commercial Services

    This rule only removes obsolete DFARS subpart 232.72, Payment in 
Local Currency (Afghanistan), and DFARS solicitation provision 252.232-
7014, Payment in Local Currency (Afghanistan). The rule does not impose 
any new requirements on contracts valued at or below the simplified 
acquisition threshold, for commercial products including commercially 
available off-the-shelf items, or for commercial services.

IV. Executive Orders 12866 and 13563

    Executive Orders (E.O.) 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.

V. Congressional Review Act

    As required by the Congressional Review Act (5 U.S.C. 801-808) 
before an interim or final rule takes effect, DoD will submit a copy of 
the interim or final rule with the form, Submission of Federal Rules 
under the Congressional Review Act, to the U.S. Senate, the U.S. House 
of Representatives, and the Comptroller General of the United States. A 
major rule under the Congressional Review Act cannot take effect until 
60 days after it is published in the Federal Register. The Office of 
Information and Regulatory Affairs has

[[Page 25153]]

determined that this rule is not a major rule as defined by 5 U.S.C. 
804.

VI. Regulatory Flexibility Act

    The Regulatory Flexibility Act does not apply to this rule because 
this final rule does not constitute a significant DFARS revision within 
the meaning of FAR 1.501-1, and 41 U.S.C. 1707 does not require 
publication for public comment.

VII. 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 D. Johnson,
Editor/Publisher, Defense Acquisition Regulations System.

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

0
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.

PART 232--CONTRACT FINANCING

Subpart 232.72 [Removed and Reserved]

0
2. Subpart 232.72, consisting of sections 232.7200, 232.7201, and 
232.7202, is removed and reserved.

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

252.232-7014 [Removed and Reserved]

0
3. Section 252.232-7014 is removed and reserved.

[FR Doc. 2022-08816 Filed 4-27-22; 8:45 am]
BILLING CODE 5001-06-P