Defense Federal Acquisition Regulation Supplement: Acquisition of the American Flag (DFARS Case 2015-D005), 51748-51749 [2015-20873]
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51748
Federal Register / Vol. 80, No. 165 / Wednesday, August 26, 2015 / Rules and Regulations
instructions provided by the Contracting
Officer.
(f) Media preservation and protection.
When a Contractor discovers a cyber incident
has occurred, the Contractor shall preserve
and protect images of all known affected
information systems identified in paragraph
(d) of this clause and all relevant monitoring/
packet capture data for at least 90 days from
the submission of the cyber incident report
to allow DoD to request the media or decline
interest.
(g) Access to additional information or
equipment necessary for forensic analysis.
Upon request by DoD, the Contractor shall
provide DoD with access to additional
information or equipment that is necessary to
conduct a forensic analysis.
(h) Cyber incident damage assessment
activities. If DoD elects to conduct a damage
assessment, the Contracting Officer will
request that the Contractor provide all of the
damage assessment information gathered in
accordance with paragraph (f) of this clause.
(i) Records management and facility
access.
(1) The Contractor shall provide the
Contracting Officer all Government data and
Government-related data in the format
specified in the contract.
(2) The Contractor shall dispose of
Government data and Government-related
data in accordance with the terms of the
contract and provide the confirmation of
disposition to the Contracting Officer in
accordance with contract closeout
procedures.
(3) The Contractor shall provide the
Government, or its authorized
representatives, access to all Government
data and Government-related data, access to
contractor personnel involved in
performance of the contract, and physical
access to any Contractor facility with
Government data, for the purpose of audits,
investigations, inspections, or other similar
activities, as authorized by law or regulation.
(j) Notification of third party access
requests. The Contractor shall notify the
Contracting Officer promptly of any requests
from a third party for access to Government
data or Government-related data, including
any warrants, seizures, or subpoenas it
receives, including those from another
Federal, State, or Local agency. The
Contractor shall cooperate with the
Contracting Officer to take all measures to
protect Government data and Governmentrelated data from any unauthorized
disclosure.
(k) Spillage. Upon notification by the
Government of a spillage, or upon the
Contractor’s discovery of a spillage, the
Contractor shall cooperate with the
Contracting Officer to address the spillage in
compliance with agency procedures.
(l) Subcontracts. The Contractor shall
include the substance of this clause,
including this paragraph (l), in all
subcontracts that involve or may involve
cloud services, including subcontracts for
commercial items.
(End of clause)
[FR Doc. 2015–20870 Filed 8–25–15; 8:45 am]
BILLING CODE 5001–06–P
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DEPARTMENT OF DEFENSE
Defense Acquisition Regulations
System
48 CFR Parts 205, 212, 225, and 252
[Docket No. DARS–2015–0014]
RIN 0750–AI51
Defense Federal Acquisition
Regulation Supplement: Acquisition of
the American Flag (DFARS Case 2015–
D005)
Defense Acquisition
Regulations System, Department of
Defense (DoD).
ACTION: Final rule.
AGENCY:
DoD is issuing a final rule
amending the Defense Federal
Acquisition Regulation Supplement
(DFARS) to implement sections of the
Department of Defense Appropriations
Acts for Fiscal Years 2014 and 2015 that
prohibit use of funds made available
under these acts for the purchase or
manufacture of a flag of the United
States, unless such flag is manufactured
in the United States.
DATES: Effective August 26, 2015.
FOR FURTHER INFORMATION CONTACT: Ms.
Tresa Sullivan, telephone 571–372–
6089.
SUPPLEMENTARY INFORMATION:
SUMMARY:
I. Background
DoD published a proposed rule in the
Federal Register at 80 FR 10452 on
February 26, 2015, to amend the DFARS
to implement section 8123 of the
Department of Defense Appropriations
Act, 2014 (division C, title VIII of Pub.
L. 113–76) and section 8119 of the
Department of Defense Appropriations
Act, 2015 (division C, title VIII of Pub.
L. 113–235). These sections prohibit the
use of funds appropriated under those
acts for the purchase or manufacture of
a flag of the United States, unless such
flag is treated as a covered item under
10 U.S.C. 2533a(b) (commonly known as
the Berry Amendment). With some
exceptions, the Berry Amendment
restricts the purchase of certain items of
food, clothing, fabrics, and hand or
measuring tools (whether as end
products or components), unless the
items have been grown, reprocessed,
reused, or produced in the United
States. The public comment period
ended April 27, 2015, with comments
submitted by two respondents in
response to the proposed rule.
II. Discussion and Analysis
DoD reviewed the public comments in
the development of the final rule. Two
PO 00000
Frm 00026
Fmt 4700
Sfmt 4700
responses were received. There are no
changes from the substance of the
proposed rule. One respondent
commended the rule. Another
respondent requested flags be purchased
from his company in Serbia; however,
section 8123 and section 8119 of the
DoD Appropriations Acts for 2014 and
2015, respectively, prohibit the use of
funds made available under the acts for
the purchase or manufacture of a flag of
the United States, unless such flag is
manufactured in the United States.
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. Regulatory Flexibility Act
A final regulatory flexibility analysis
has been prepared consistent with the
Regulatory Flexibility Act, 5 U.S.C. 601,
et seq., and is summarized as follows:
This rule is necessary to implement
sections 8123 and 8119 of the DoD
Appropriations Acts for Fiscal Years
2014 and 2015, respectively, and the
same provisions in subsequent DoD
appropriations acts.
The objective of the rule is to prohibit
acquisition of a flag of the United States
(Product or Service Code 8345), unless
such flag, including the materials and
components thereof, is manufactured in
the United States, consistent with the
requirements at 10 U.S.C. 2533a. The
legal basis for the rule is sections 8123
and 8119 of the DoD Appropriations
Acts for FYs 2014 and 2015 (Division C
of Pub. Laws 113–76 and 113–235,
respectively).
No comments were received from the
public relative to the initial regulatory
flexibility analysis.
DoD does not expect this final 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.
Based on data available in the Federal
Procurement Data System, there was
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Federal Register / Vol. 80, No. 165 / Wednesday, August 26, 2015 / Rules and Regulations
only one acquisition of flags from a
small business that exceeded the
simplified acquisition threshold in
fiscal year 2013. There are no reporting
or recordkeeping requirements. The rule
only requires that if a contractor is to
provide flags of the United States to
DoD under a contract that exceeds the
simplified acquisition threshold, the
flags must be manufactured in the
United States.
The rule does not duplicate, overlap,
or conflict with any other Federal rules.
There are no significant alternatives that
meet the requirement of the statute.
V. 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 205,
212, 225, and 252
Government procurement.
Jennifer L. Hawes,
Editor, Defense Acquisition Regulations
System.
Therefore, 48 CFR parts 205, 212, 225,
and 252 are amended as follows:
■ 1. The authority citation for 48 CFR
parts 205, 212, 225, and 252 continues
to read as follows:
Authority: 41 U.S.C. 1303 and 48 CFR
chapter 1.
PART 205—PUBLICIZING CONTRACT
ACTIONS
205.301
[Amended]
2. Amend section 205.301, in
paragraph (a)(S–70)(i) introductory text
by removing ‘‘225.7002–1(a)(2) through
(10)’’ and adding ‘‘225.7002–1(a)(1)(ii)
through (x)’’ in its place.
provision in subsequent DoD
appropriations acts.
*
*
*
*
*
4. Revise the section 225.7002
heading to read as follows:
■
225.7002 Restrictions on food, clothing,
fabrics, hand or measuring tools, and flags.
5. Amend section 225.7002–1 by—
a. Redesignating paragraphs (a) and
(b) as paragraphs (1) and (2),
respectively;
■ b. Redesignating the introductory text
as paragraph (a);
■ c. In the newly redesignated
paragraph (1), further redesignating
paragraphs (1) through (10) as
paragraphs (1)(i) through (x),
respectively;
■ d. In the newly redesignated
paragraph (1)(ii), removing ‘‘PGI
225.7002–1(a)(2)’’ and adding ‘‘PGI
225.7002–1(a)(1)(ii)’’ in its place;
■ e. In the newly redesignated
paragraph (1)(iii), further redesignating
paragraphs (i) through (iii) as
paragraphs (1)(iii)(A) through (C),
respectively;
■ r. In the newly redesignated paragraph
(1)(x), removing ‘‘(Federal Supply Class
8465)’’ and adding ‘‘(Product or Service
Code (PSC) 8465)’’ in its place, and
removing ‘‘paragraph (a)’’ and adding
‘‘paragraph (a)(1)’’ in its place;
■ g. In the newly redesignated
paragraph (2), removing ‘‘see PGI
225.7002–1(b)’’ and adding ‘‘see PGI
225.7002–1(a)(2)’’ in its place; and
■ h. Adding a new paragraph (b).
The addition reads as follows:
■
■
■
PART 212—ACQUISITION OF
COMMERCIAL ITEMS
3. Amend section 212.301 by—
a. Redesignating sections (f)(x)(C)
through (BB) as paragraphs (f)(x)(D)
through (CC), respectively; and
■ b. Adding a new paragraph (f)(x)(C).
The addition reads as follows:
■
■
rmajette on DSK7SPTVN1PROD with RULES
212.301 Solicitation provisions and
contract clauses for the acquisition of
commercial items.
(f) * * *
(x) * * *
(C) Use the clause at 252.225–7006,
Acquisition of the American Flag, as
prescribed in 225.7002–3(c), to comply
with section 8123 of the DoD
Appropriations Act, 2014 (Pub. L. 113–
76, division C, title VIII), and the same
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12:34 Aug 25, 2015
Jkt 235001
Restrictions.
*
*
*
*
*
(b) In accordance with section 8123 of
the Department of Defense
Appropriations Act, 2014 (Pub. L. 113–
76, division C, title VIII), and the same
provision in subsequent Defense
appropriations acts, except as provided
in 225.7002–2, do not acquire a flag of
the United States (PSC 8345), unless
such flag, including the materials and
components thereof, is manufactured in
the United States, consistent with the
requirements at 10 U.S.C. 2533a. This
restriction does not apply to the
acquisition of any end-items or
components related to flying or
displaying the flag (e.g., flag poles and
accessories).
225.7002–2
6. Amend section 225.7002–2 by—
a. In paragraph (l), removing ‘‘Section
8118’’ and adding ‘‘section 8118’’ in its
place;
PO 00000
Frm 00027
Fmt 4700
Sfmt 9990
225.7002–3
Contract clauses.
*
*
*
*
*
(c) Use the clause at 252.225–7006,
Acquisition of the American Flag, in
solicitations and contracts, including
solicitations and contracts using FAR
part 12 procedures for the acquisition of
commercial items, that are for the
acquisition of the American flag, with
an estimated value that exceeds the
simplified acquisition threshold.
PART 252—SOLICITATION
PROVISIONS AND CONTRACT
CLAUSES
8. Add section 252.225–7006 to read
as follows:
■
252.225–7006
Flag.
Acquisition of the American
As prescribed in 225.7002–3(c), insert
the following clause:
ACQUISITION OF THE AMERICAN FLAG
(AUG 2015)
(a) Definition. United States, as used in this
clause, means the 50 States, the District of
Columbia, and outlying areas.
(b) If the Contractor is required to deliver
under this contract one or more American
flags (Product or Service Code 8345), such
flag(s), including the materials and
components thereof, shall be manufactured
in the United States, consistent with the
requirements at 10 U.S.C. 2533a (commonly
known as the ‘‘Berry Amendment’’).
(c) This clause does not apply to the
acquisition of any end items or components
related to flying or displaying the flag (e.g.,
flagpoles and accessories).
(End of clause)
[FR Doc. 2015–20873 Filed 8–25–15; 08:45 am]
[Amended]
■
■
b. In paragraph (m)(1)(i), removing
‘‘Federal Supply Group’’ and adding
‘‘Product or Service Group (PSG)’’ in its
place;
■ c. In paragraph (m)(1)(ii), removing
‘‘Federal Supply Group’’ and adding
‘‘PSG’’ in its place in two places; and
■ d. In paragraph (m)(1)(iv), removing
‘‘Federal Supply Class’’ and adding
‘‘PSC’’ in its place.
■ 7. Amend section 225.7002–3 by—
■ a. In the introductory text, removing
‘‘exception’’ and adding ‘‘exception at
223.7002–2’’ in its place; and
■ b. Adding a new paragraph (c).
The addition reads as follows:
■
PART 225—FOREIGN ACQUISITION
225.7002–1
51749
BILLING CODE 5001 6820–06–P
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]]>Agencies
[Federal Register Volume 80, Number 165 (Wednesday, August 26, 2015)]
[Rules and Regulations]
[Pages 51748-51749]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-20873]
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System
48 CFR Parts 205, 212, 225, and 252
[Docket No. DARS-2015-0014]
RIN 0750-AI51
Defense Federal Acquisition Regulation Supplement: Acquisition of
the American Flag (DFARS Case 2015-D005)
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 implement sections of the
Department of Defense Appropriations Acts for Fiscal Years 2014 and
2015 that prohibit use of funds made available under these acts for the
purchase or manufacture of a flag of the United States, unless such
flag is manufactured in the United States.
DATES: Effective August 26, 2015.
FOR FURTHER INFORMATION CONTACT: Ms. Tresa Sullivan, telephone 571-372-
6089.
SUPPLEMENTARY INFORMATION:
I. Background
DoD published a proposed rule in the Federal Register at 80 FR
10452 on February 26, 2015, to amend the DFARS to implement section
8123 of the Department of Defense Appropriations Act, 2014 (division C,
title VIII of Pub. L. 113-76) and section 8119 of the Department of
Defense Appropriations Act, 2015 (division C, title VIII of Pub. L.
113-235). These sections prohibit the use of funds appropriated under
those acts for the purchase or manufacture of a flag of the United
States, unless such flag is treated as a covered item under 10 U.S.C.
2533a(b) (commonly known as the Berry Amendment). With some exceptions,
the Berry Amendment restricts the purchase of certain items of food,
clothing, fabrics, and hand or measuring tools (whether as end products
or components), unless the items have been grown, reprocessed, reused,
or produced in the United States. The public comment period ended April
27, 2015, with comments submitted by two respondents in response to the
proposed rule.
II. Discussion and Analysis
DoD reviewed the public comments in the development of the final
rule. Two responses were received. There are no changes from the
substance of the proposed rule. One respondent commended the rule.
Another respondent requested flags be purchased from his company in
Serbia; however, section 8123 and section 8119 of the DoD
Appropriations Acts for 2014 and 2015, respectively, prohibit the use
of funds made available under the acts for the purchase or manufacture
of a flag of the United States, unless such flag is manufactured in the
United States.
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. Regulatory Flexibility Act
A final regulatory flexibility analysis has been prepared
consistent with the Regulatory Flexibility Act, 5 U.S.C. 601, et seq.,
and is summarized as follows:
This rule is necessary to implement sections 8123 and 8119 of the
DoD Appropriations Acts for Fiscal Years 2014 and 2015, respectively,
and the same provisions in subsequent DoD appropriations acts.
The objective of the rule is to prohibit acquisition of a flag of
the United States (Product or Service Code 8345), unless such flag,
including the materials and components thereof, is manufactured in the
United States, consistent with the requirements at 10 U.S.C. 2533a. The
legal basis for the rule is sections 8123 and 8119 of the DoD
Appropriations Acts for FYs 2014 and 2015 (Division C of Pub. Laws 113-
76 and 113-235, respectively).
No comments were received from the public relative to the initial
regulatory flexibility analysis.
DoD does not expect this final 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. Based on data
available in the Federal Procurement Data System, there was
[[Page 51749]]
only one acquisition of flags from a small business that exceeded the
simplified acquisition threshold in fiscal year 2013. There are no
reporting or recordkeeping requirements. The rule only requires that if
a contractor is to provide flags of the United States to DoD under a
contract that exceeds the simplified acquisition threshold, the flags
must be manufactured in the United States.
The rule does not duplicate, overlap, or conflict with any other
Federal rules. There are no significant alternatives that meet the
requirement of the statute.
V. 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 205, 212, 225, and 252
Government procurement.
Jennifer L. Hawes,
Editor, Defense Acquisition Regulations System.
Therefore, 48 CFR parts 205, 212, 225, and 252 are amended as
follows:
0
1. The authority citation for 48 CFR parts 205, 212, 225, and 252
continues to read as follows:
Authority: 41 U.S.C. 1303 and 48 CFR chapter 1.
PART 205--PUBLICIZING CONTRACT ACTIONS
205.301 [Amended]
0
2. Amend section 205.301, in paragraph (a)(S-70)(i) introductory text
by removing ``225.7002-1(a)(2) through (10)'' and adding ``225.7002-
1(a)(1)(ii) through (x)'' in its place.
PART 212--ACQUISITION OF COMMERCIAL ITEMS
0
3. Amend section 212.301 by--
0
a. Redesignating sections (f)(x)(C) through (BB) as paragraphs
(f)(x)(D) through (CC), respectively; and
0
b. Adding a new paragraph (f)(x)(C).
The addition reads as follows:
212.301 Solicitation provisions and contract clauses for the
acquisition of commercial items.
(f) * * *
(x) * * *
(C) Use the clause at 252.225-7006, Acquisition of the American
Flag, as prescribed in 225.7002-3(c), to comply with section 8123 of
the DoD Appropriations Act, 2014 (Pub. L. 113-76, division C, title
VIII), and the same provision in subsequent DoD appropriations acts.
* * * * *
PART 225--FOREIGN ACQUISITION
0
4. Revise the section 225.7002 heading to read as follows:
225.7002 Restrictions on food, clothing, fabrics, hand or measuring
tools, and flags.
0
5. Amend section 225.7002-1 by--
0
a. Redesignating paragraphs (a) and (b) as paragraphs (1) and (2),
respectively;
0
b. Redesignating the introductory text as paragraph (a);
0
c. In the newly redesignated paragraph (1), further redesignating
paragraphs (1) through (10) as paragraphs (1)(i) through (x),
respectively;
0
d. In the newly redesignated paragraph (1)(ii), removing ``PGI
225.7002-1(a)(2)'' and adding ``PGI 225.7002-1(a)(1)(ii)'' in its
place;
0
e. In the newly redesignated paragraph (1)(iii), further redesignating
paragraphs (i) through (iii) as paragraphs (1)(iii)(A) through (C),
respectively;
0
r. In the newly redesignated paragraph (1)(x), removing ``(Federal
Supply Class 8465)'' and adding ``(Product or Service Code (PSC)
8465)'' in its place, and removing ``paragraph (a)'' and adding
``paragraph (a)(1)'' in its place;
0
g. In the newly redesignated paragraph (2), removing ``see PGI
225.7002-1(b)'' and adding ``see PGI 225.7002-1(a)(2)'' in its place;
and
0
h. Adding a new paragraph (b).
The addition reads as follows:
225.7002-1 Restrictions.
* * * * *
(b) In accordance with section 8123 of the Department of Defense
Appropriations Act, 2014 (Pub. L. 113-76, division C, title VIII), and
the same provision in subsequent Defense appropriations acts, except as
provided in 225.7002-2, do not acquire a flag of the United States (PSC
8345), unless such flag, including the materials and components
thereof, is manufactured in the United States, consistent with the
requirements at 10 U.S.C. 2533a. This restriction does not apply to the
acquisition of any end-items or components related to flying or
displaying the flag (e.g., flag poles and accessories).
225.7002-2 [Amended]
0
6. Amend section 225.7002-2 by--
0
a. In paragraph (l), removing ``Section 8118'' and adding ``section
8118'' in its place;
0
b. In paragraph (m)(1)(i), removing ``Federal Supply Group'' and adding
``Product or Service Group (PSG)'' in its place;
0
c. In paragraph (m)(1)(ii), removing ``Federal Supply Group'' and
adding ``PSG'' in its place in two places; and
0
d. In paragraph (m)(1)(iv), removing ``Federal Supply Class'' and
adding ``PSC'' in its place.
0
7. Amend section 225.7002-3 by--
0
a. In the introductory text, removing ``exception'' and adding
``exception at 223.7002-2'' in its place; and
0
b. Adding a new paragraph (c).
The addition reads as follows:
225.7002-3 Contract clauses.
* * * * *
(c) Use the clause at 252.225-7006, Acquisition of the American
Flag, in solicitations and contracts, including solicitations and
contracts using FAR part 12 procedures for the acquisition of
commercial items, that are for the acquisition of the American flag,
with an estimated value that exceeds the simplified acquisition
threshold.
PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
0
8. Add section 252.225-7006 to read as follows:
252.225-7006 Acquisition of the American Flag.
As prescribed in 225.7002-3(c), insert the following clause:
ACQUISITION OF THE AMERICAN FLAG (AUG 2015)
(a) Definition. United States, as used in this clause, means the
50 States, the District of Columbia, and outlying areas.
(b) If the Contractor is required to deliver under this contract
one or more American flags (Product or Service Code 8345), such
flag(s), including the materials and components thereof, shall be
manufactured in the United States, consistent with the requirements
at 10 U.S.C. 2533a (commonly known as the ``Berry Amendment'').
(c) This clause does not apply to the acquisition of any end
items or components related to flying or displaying the flag (e.g.,
flagpoles and accessories).
(End of clause)
[FR Doc. 2015-20873 Filed 8-25-15; 08:45 am]
BILLING CODE 5001 6820-06-P
