Defense Acquisition Regulations System; Defense Federal Acquisition Regulation Supplement; Utility Rates Established by Regulatory Bodies, 3418 [06-564]

Agencies

• DEPARTMENT OF DEFENSE

[Federal Register Volume 71, Number 14 (Monday, January 23, 2006)]
[Rules and Regulations]
[Page 3418]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 06-564]



[[Page 3418]]

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DEPARTMENT OF DEFENSE

48 CFR Part 241

[DFARS Case 2003-D096]


Defense Acquisition Regulations System; Defense Federal 
Acquisition Regulation Supplement; Utility Rates Established by 
Regulatory Bodies

AGENCY: Defense Acquisition Regulations System, Department of Defense 
(DoD).

ACTION: Final rule.

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SUMMARY: DoD has issued a final rule amending the Defense Federal 
Acquisition Regulation Supplement (DFARS) to update text pertaining to 
utility rates established by independent and nonindependent regulatory 
bodies. This rule is a result of a transformation initiative undertaken 
by DoD to dramatically change the purpose and content of the DFARS.

DATES: Effective Date: January 23, 2006.

FOR FURTHER INFORMATION CONTACT: Ms. Robin Schulze, Defense Acquisition 
Regulations System, OUSD (AT&L) DPAP (DARS), IMD 3C132, 3062 Defense 
Pentagon, Washington, DC 20301-3062. Telephone (703) 602-0326; 
facsimile (703) 602-0350. Please cite DFARS Case 2003-D096.

SUPPLEMENTARY INFORMATION:

A. Background

    DFARS Transformation is a major DoD initiative to dramatically 
change the purpose and content of the DFARS. The objective is to 
improve the efficiency and effectiveness of the acquisition process, 
while allowing the acquisition workforce the flexibility to innovate. 
The transformed DFARS will contain only requirements of law, DoD-wide 
policies, delegations of FAR authorities, deviations from FAR 
requirements, and policies/procedures that have a significant effect 
beyond the internal operating procedures of DoD or a significant cost 
or administrative impact on contractors or offerors. Additional 
information on the DFARS Transformation initiative is available at 
https://www.acq.osd.mil/dpap/dars/dfars/transformation/index.htm.
    This final rule is a result of the DFARS Transformation initiative. 
The rule--
     Revises DFARS 241.201 to clarify that utility rates 
established by independent regulatory bodies may be relied upon as fair 
and reasonable; and
     Adds DFARS 241.501 to clarify requirements for use of 
contract clauses addressing changes in rates for regulated and 
unregulated utility services.
    DoD published a proposed rule at 70 FR 8565 on February 22, 2005. 
DoD received no comments on the proposed rule. Therefore, DoD has 
adopted the proposed rule as a final rule without change.
    This rule was not subject to Office of Management and Budget review 
under Executive Order 12866, dated September 30, 1993.

B. Regulatory Flexibility Act

    DoD certifies that this final rule will not 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 contains clarifying DFARS amendments, with no 
significant change to DoD contracting policy.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply, because the rule does 
not impose any information collection requirements that require the 
approval of the Office of Management and Budget under 44 U.S.C. 3501, 
et seq.

List of Subjects in 48 CFR Part 241

    Government procurement.

Michele P. Peterson,
Editor, Defense Acquisition Regulations System.

0
Therefore, 48 CFR part 241 is amended as follows:

PART 241--ACQUISITION OF UTILITY SERVICES

0
1. The authority citation for 48 CFR part 241 continues to read as 
follows:

    Authority: 41 U.S.C. 421 and 48 CFR Chapter 1.


0
2. Section 241.201 is revised to read as follows:


241.201  Policy.

    (1) DoD, as a matter of comity, generally complies with the current 
regulations, practices, and decisions of independent regulatory bodies. 
This policy does not extend to nonindependent regulatory bodies.
    (2) Purchases of utility services outside the United States may 
use--
    (i) Formats and technical provisions consistent with local 
practice; and
    (ii) Dual language forms and contracts.
    (3) Rates established by an independent regulatory body--
    (i) Are considered ``prices set by law or regulation'';
    (ii) Are sufficient to set prices without obtaining cost or pricing 
data (see FAR Subpart 15.4); and
    (iii) Are a valid basis on which prices can be determined fair and 
reasonable.
    (4) Compliance with the regulations, practices, and decisions of 
independent regulatory bodies as a matter of comity is not a substitute 
for the procedures at FAR 41.202(a).

0
3. Section 241.501 is added to read as follows:


241.501  Solicitation provision and contract clauses.

    (d)(1) Use a clause substantially the same as the clause at FAR 
52.241-7, Change in Rates or Terms and Conditions of Service for 
Regulated Services, when the utility services to be provided are 
subject to an independent regulatory body.
    (2) Use a clause substantially the same as the clause at FAR 
52.241-8, Change in Rates or Terms and Conditions of Service for 
Unregulated Services, when the utility services to be provided are not 
subject to a regulatory body or are subject to a nonindependent 
regulatory body.

[FR Doc. 06-564 Filed 1-20-06; 8:45 am]
BILLING CODE 5001-08-P