Defense Federal Acquisition Regulation Supplement; Allowability of Costs To Lease Government Equipment for Display or Demonstration (DFARS Case 2007-D004), 69176-69177 [E7-23654]

Download as PDF rfrederick on PROD1PC67 with PROPOSALS 69176 Federal Register / Vol. 72, No. 235 / Friday, December 7, 2007 / Proposed Rules you provide it in the body of your comment. If you send an e-mail comment directly to EPA without going through www.regulations.gov, your email address will be automatically captured and included as part of the comment that is placed in the public docket and made available on the Internet. If you submit an electronic comment, EPA recommends that you include your name and other contact information in the body of your comment and with any disk or CD–ROM you submit. If EPA cannot read your comment due to technical difficulties and cannot contact you for clarification, EPA may not be able to consider your comment. Electronic files should avoid the use of special characters, any form of encryption, and be free of any defects or viruses. For additional information about EPA’s public docket, visit the EPA Docket Center homepage at https:// www.epa.gov/epahome/dockets.htm. Docket: All documents in the docket are listed in the www.regulations.gov index. Although listed in the index, some information may not be publicly available, e.g., CBI or other information whose disclosure is restricted by statute. Certain other material, such as copyrighted material will be publicly available only in hard copy. Publicly available docket materials are available either electronically through www.regulations.gov or in hard copy at the EPA Docket Center, EPA West Building, Room 3334, 1301 Constitution Ave., NW., Washington, DC. The Public Reading Room is open from 8:30 a.m. to 4:30 p.m., Monday through Friday, excluding legal holidays. The telephone number for the Public Reading Room is (202) 566–1744, and the telephone number for the EPA Docket Center is (202) 566–1742. To expedite review of your comments by Agency staff, you are encouraged to send a separate copy of your comments, in addition to the copy you submit to the official docket, to Mr. Robert B. Lucas, identified in the FOR FURTHER INFORMATION CONTACT section. FOR FURTHER INFORMATION CONTACT: Mr. Robert B. Lucas, U.S. EPA, Office of Air Quality Planning and Standards, Sector Policies and Programs Division, Coatings and Chemicals Group (E143– 01), Research Triangle Park, NC 27711; telephone number: (919) 541–0884; email address: lucas.bob@epa.gov. SUPPLEMENTARY INFORMATION: Submitting CBI. Do not submit information that you consider to be CBI electronically through www.regulations.gov or e-mail. Send or deliver information identified as CBI only to the following address: Roberto VerDate Aug<31>2005 14:58 Dec 06, 2007 Jkt 214001 Morales, OAQPS Document Control Officer (C404–02), U.S. EPA, Office of Air Quality Planning and Standards, Research Triangle Park, NC 27711, Attention Docket ID EPA–HQ–OAR– 2007–0011. Clearly mark the part or all of the information that you claim to be CBI. For CBI information in a disk or CD–ROM that you mail to EPA, mark the outside of the disk or CD–ROM as CBI and then identify electronically within the disk or CD–ROM the specific information that is claimed as CBI. In addition to one complete version of the comment that includes information claimed as CBI, a copy of the comment that does not contain the information claimed as CBI must be submitted for inclusion in the public docket. Information so marked will not be disclosed except in accordance with procedures set forth in 40 CFR part 2. If you have any questions about CBI or the procedures for claiming CBI, please consult the person identified in the FOR FURTHER INFORMATION CONTACT section. Worldwide Web (WWW). In addition to being available in the docket, an electronic copy of the proposed rule published on May 14, 2007, is available on the WWW through the Technology Transfer Network (TTN). A copy of the proposed rule is posted on the TTN’s policy and guidance page for newly proposed or promulgated rules at https://www.epa.gov/ttn/oarpg. The TTN provides information and technology exchange in various areas of air pollution control. List of Subjects for 40 CFR Part 60 Environmental protection, Air pollution control, New source performance standards, Reporting and recordkeeping requirements. Dated: November 30, 2007. Jennifer E.N. Edmonds, Acting Director, Office of Air Quality Planning and Standards. [FR Doc. E7–23824 Filed 12–6–07; 8:45 am] BILLING CODE 6560–50–P PO 00000 DEPARTMENT OF DEFENSE Defense Acquisition Regulations System 48 CFR Parts 225 and 231 RIN 0750–AF85 Defense Federal Acquisition Regulation Supplement; Allowability of Costs To Lease Government Equipment for Display or Demonstration (DFARS Case 2007– D004) Defense Acquisition Regulations System, Department of Defense (DoD). ACTION: Proposed rule with request for comments. AGENCY: SUMMARY: DoD is proposing to amend the Defense Federal Acquisition Regulation Supplement (DFARS) to address limitations on the allowability of contractor costs associated with the leasing of Government equipment for display or demonstration. The proposed rule specifies that monies paid to the Government for the leasing of Government equipment are unallowable, except in the case of foreign military sales contracts. DATES: Comments on the proposed rule should be submitted in writing to the address shown below on or before February 5, 2008, to be considered in the formation of the final rule. ADDRESSES: You may submit comments, identified by DFARS Case 2007–D004, using any of the following methods: • Federal eRulemaking Portal: https:// www.regulations.gov. Follow the instructions for submitting comments. • E-mail: dfars@osd.mil. Include DFARS Case 2007–D004 in the subject line of the message. • Fax: 703–602–7887. • Mail: Defense Acquisition Regulations System, Attn: Mr. John McPherson, OUSD (AT&L) DPAP (CPF), IMD 3D139, 3062 Defense Pentagon, Washington, DC 20301–3062. • Hand Delivery/Courier: Defense Acquisition Regulations System, Crystal Square 4, Suite 200A, 241 18th Street, Arlington, VA 22202–3402. Comments received generally will be posted without change to https:// www.regulations.gov, including any personal information provided. FOR FURTHER INFORMATION CONTACT: Mr. John McPherson, 703–602–0296. SUPPLEMENTARY INFORMATION: A. Background DoD Directive 7230.8, Leases and Demonstrations of DoD Equipment, Frm 00002 Fmt 4702 Sfmt 4702 E:\FR\FM\07DEP1.SGM 07DEP1 Federal Register / Vol. 72, No. 235 / Friday, December 7, 2007 / Proposed Rules contains policy on the leasing of DoD equipment to defense contractors for demonstration to foreign governments or for display or demonstration at international trade shows and exhibitions. In addition to the leasing of equipment, contractors may obtain related support services from DoD. The Directive provides that the contractor leasing the equipment may not recover the DoD charges associated with the lease, directly or indirectly through any U.S. Government contract, except to the extent chargeable to contracts for foreign military sales. For consistency with the policy in DoD Directive 7230.8, this proposed rule adds DFARS text to address the limitations on the allowability of costs associated with the leasing of Government equipment. This rule was not subject to Office of Management and Budget review under Executive Order 12866, dated September 30, 1993. PART 225—FOREIGN ACQUISITION B. Regulatory Flexibility Act DoD does not expect this 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 is consistent with existing DoD policy, and applies only in those situations where a contractor chooses to lease military equipment for display or demonstration purposes. Therefore, DoD has not performed an initial regulatory flexibility analysis. DoD invites comments from small businesses and other interested parties. DoD also will consider comments from small entities concerning the affected DFARS subparts in accordance with 5 U.S.C. 610. Such comments should be submitted separately and should cite DFARS Case 2007–D004. 231.205–1 costs. 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. 48 CFR Parts 228, 231, and 252 List of Subjects in 48 CFR Parts 225 and 231 Government procurement. AGENCY: rfrederick on PROD1PC67 with PROPOSALS Michele P. Peterson, Editor, Defense Acquisition Regulations System. Therefore, DoD proposes to amend 48 CFR parts 225 and 231 as follows: 1. The authority citation for 48 CFR parts 225 and 231 continues to read as follows: Authority: 41 U.S.C. 421 and 48 CFR Chapter 1. VerDate Aug<31>2005 14:58 Dec 06, 2007 Jkt 214001 2. Section 225.7303–2 is amended by revising paragraph (b) and adding paragraph (e) to read as follows: 225.7303–2 Cost of doing business with a foreign government or an international organization. * * * * * (b) Costs not allowable under FAR Part 31 are not allowable in pricing FMS contracts, except as noted in paragraphs (c) and (e) of this subsection. * * * * * (e) The limitations on allowability of costs associated with leasing Government equipment, in 231.205–1, do not apply to FMS contracts. PART 231—CONTRACT COST PRINCIPLES AND PROCEDURES 3. Section 231.205–1 is added to read as follows: Public relations and advertising (e) See 225.7303–2(e) for allowability provisions affecting foreign military sales contracts. (f) Unallowable public relations and advertising costs also include monies paid to the Government associated with the leasing of Government equipment, including lease payments and reimbursement for support services, except for foreign military sales contracts as provided for at 225.7303–2. [FR Doc. E7–23654 Filed 12–6–07; 8:45 am] BILLING CODE 5001–08–P DEPARTMENT OF DEFENSE Defense Acquisition Regulations System RIN 0750–AF72 Defense Federal Acquisition Regulation Supplement; Ground and Flight Risk Clause (DFARS Case 2007– D009) Defense Acquisition Regulations System, Department of Defense (DoD). ACTION: Proposed rule with request for comments. SUMMARY: DoD is proposing to amend the Defense Federal Acquisition Regulation Supplement (DFARS) to revise and combine contract clauses addressing assumption of risk for loss under contracts involving the furnishing of aircraft to the Government. The proposed rule establishes requirements PO 00000 Frm 00003 Fmt 4702 Sfmt 4702 69177 that apply consistently to all contract types. Comments on the proposed rule should be submitted in writing to the address shown below on or before February 5, 2008 to be considered in the formation of the final rule. ADDRESSES: You may submit comments, identified by DFARS Case 2007–D009, using any of the following methods: Federal eRulemaking Portal: https:// www.regulations.gov. Follow the instructions for submitting comments. E-mail: dfars@osd.mil. Include DFARS Case 2007–D009 in the subject line of the message. Fax: 703–602–7887. Mail: Defense Acquisition Regulations System, Attn: Ms. Robin Schulze, OUSD (AT&L) DPAP (CPF), IMD 3D139, 3062 Defense Pentagon, Washington, DC 20301–3062. Hand Delivery/Courier: Defense Acquisition Regulations System, Crystal Square 4, Suite 200A, 241 18th Street, Arlington, VA 22202–3402. Comments received generally will be posted without change to https:// www.regulations.gov, including any personal information provided. FOR FURTHER INFORMATION CONTACT: Ms. Robin Schulze, 703–602–0326. DATES: SUPPLEMENTARY INFORMATION A. Background The clauses at DFARS 252.228–7001, Ground and Flight Risk, and DFARS 252.228–7002, Aircraft Flight Risk, are presently used in contracts involving the furnishing of aircraft to the Government. The clause at 252.228– 7001 is used in negotiated fixed-price contracts, and the clause at 252.228– 7002 is used in cost-reimbursement contracts. This proposed rule revises and combines the two clauses into a single ground and flight risk clause, to establish requirements that apply consistently to all contract types. In addition, a new section is added at DFARS 231.205–19 to specifically reference the treatment of insurance costs under the new clause and the existing clause at DFARS 252.217–7012, Liability and Insurance. The proposed changes include— Æ Addition of a requirement for inclusion of the clause in all subcontracts; Æ Addition of a statement that the Government property clause is not applicable if the Government withdraws its self-insurance coverage; Æ Addition of a statement that commercial insurance costs or selfinsurance charges that duplicate the Government’s self-insurance are unallowable; and E:\FR\FM\07DEP1.SGM 07DEP1

Agencies

[Federal Register Volume 72, Number 235 (Friday, December 7, 2007)]
[Proposed Rules]
[Pages 69176-69177]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-23654]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Parts 225 and 231

RIN 0750-AF85


Defense Federal Acquisition Regulation Supplement; Allowability 
of Costs To Lease Government Equipment for Display or Demonstration 
(DFARS Case 2007-D004)

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

ACTION: Proposed rule with request for comments.

-----------------------------------------------------------------------

SUMMARY: DoD is proposing to amend the Defense Federal Acquisition 
Regulation Supplement (DFARS) to address limitations on the 
allowability of contractor costs associated with the leasing of 
Government equipment for display or demonstration. The proposed rule 
specifies that monies paid to the Government for the leasing of 
Government equipment are unallowable, except in the case of foreign 
military sales contracts.

DATES: Comments on the proposed rule should be submitted in writing to 
the address shown below on or before February 5, 2008, to be considered 
in the formation of the final rule.

ADDRESSES: You may submit comments, identified by DFARS Case 2007-D004, 
using any of the following methods:
     Federal eRulemaking Portal: https://www.regulations.gov. 
Follow the instructions for submitting comments.
     E-mail: dfars@osd.mil. Include DFARS Case 2007-D004 in the 
subject line of the message.
     Fax: 703-602-7887.
     Mail: Defense Acquisition Regulations System, Attn: Mr. 
John McPherson, OUSD (AT&L) DPAP (CPF), IMD 3D139, 3062 Defense 
Pentagon, Washington, DC 20301-3062.
     Hand Delivery/Courier: Defense Acquisition Regulations 
System, Crystal Square 4, Suite 200A, 241 18th Street, Arlington, VA 
22202-3402.
    Comments received generally will be posted without change to http:/
/www.regulations.gov, including any personal information provided.

FOR FURTHER INFORMATION CONTACT: Mr. John McPherson, 703-602-0296.

SUPPLEMENTARY INFORMATION:

A. Background

    DoD Directive 7230.8, Leases and Demonstrations of DoD Equipment,

[[Page 69177]]

contains policy on the leasing of DoD equipment to defense contractors 
for demonstration to foreign governments or for display or 
demonstration at international trade shows and exhibitions. In addition 
to the leasing of equipment, contractors may obtain related support 
services from DoD. The Directive provides that the contractor leasing 
the equipment may not recover the DoD charges associated with the 
lease, directly or indirectly through any U.S. Government contract, 
except to the extent chargeable to contracts for foreign military 
sales. For consistency with the policy in DoD Directive 7230.8, this 
proposed rule adds DFARS text to address the limitations on the 
allowability of costs associated with the leasing of Government 
equipment.
    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 does not expect this 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 is 
consistent with existing DoD policy, and applies only in those 
situations where a contractor chooses to lease military equipment for 
display or demonstration purposes. Therefore, DoD has not performed an 
initial regulatory flexibility analysis. DoD invites comments from 
small businesses and other interested parties. DoD also will consider 
comments from small entities concerning the affected DFARS subparts in 
accordance with 5 U.S.C. 610. Such comments should be submitted 
separately and should cite DFARS Case 2007-D004.

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 Parts 225 and 231

    Government procurement.

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

    Therefore, DoD proposes to amend 48 CFR parts 225 and 231 as 
follows:
    1. The authority citation for 48 CFR parts 225 and 231 continues to 
read as follows:

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

PART 225--FOREIGN ACQUISITION

    2. Section 225.7303-2 is amended by revising paragraph (b) and 
adding paragraph (e) to read as follows:


225.7303-2  Cost of doing business with a foreign government or an 
international organization.

* * * * *
    (b) Costs not allowable under FAR Part 31 are not allowable in 
pricing FMS contracts, except as noted in paragraphs (c) and (e) of 
this subsection.
* * * * *
    (e) The limitations on allowability of costs associated with 
leasing Government equipment, in 231.205-1, do not apply to FMS 
contracts.

PART 231--CONTRACT COST PRINCIPLES AND PROCEDURES

    3. Section 231.205-1 is added to read as follows:


231.205-1  Public relations and advertising costs.

    (e) See 225.7303-2(e) for allowability provisions affecting foreign 
military sales contracts.
    (f) Unallowable public relations and advertising costs also include 
monies paid to the Government associated with the leasing of Government 
equipment, including lease payments and reimbursement for support 
services, except for foreign military sales contracts as provided for 
at 225.7303-2.
 [FR Doc. E7-23654 Filed 12-6-07; 8:45 am]
BILLING CODE 5001-08-P