Defense Federal Acquisition Regulation Supplement; Lease of Vessels, Aircraft, and Combat Vehicles (DFARS Case 2006-D013), 34265-34266 [E9-16650]
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Federal Register / Vol. 74, No. 134 / Wednesday, July 15, 2009 / Rules and Regulations
• 225.301–4. Adds a reference to a
DoD Web site.
• 252.225–7040. Updates a reference
to a DoD publication.
List of Subjects in 48 CFR Parts 204,
219, 225, and 252
Michele P. Peterson,
Editor, Defense Acquisition Regulations
System.
Therefore, 48 CFR Parts 204, 219, 225,
and 252 are amended as follows:
■ 1. The authority citation for 48 CFR
Parts 204, 219, 225, and 252 continues
to read as follows:
■
[FR Doc. E9–16663 Filed 7–14–09; 8:45 am]
BILLING CODE 5001–08–P
48 CFR Part 207
2. Section 204.7202–2 is revised to
read as follows:
■
RIN 0750–AF39
Defense Federal Acquisition
Regulation Supplement; Lease of
Vessels, Aircraft, and Combat Vehicles
(DFARS Case 2006–D013)
DUNS numbers.
Requirements for use of DUNS
numbers are in FAR 4.605(b) and
4.607(a).
AGENCY: Defense Acquisition
Regulations System, Department of
Defense (DoD).
ACTION: Final rule.
PART 219—SMALL BUSINESS
PROGRAMS
[Amended]
3. Section 219.708 is amended in
paragraphs (b)(2) and (c)(1) by removing
‘‘219.702(a)’’ and adding in its place
‘‘219.702’’.
■
[Amended]
4. Section 219.1204 is amended in
paragraph (c), in the last sentence, by
removing ‘‘219.702(a)’’ and adding in its
place ‘‘219.702’’.
■
PART 225—FOREIGN ACQUISITION
5. Section 225.301–4 is amended in
paragraph (2) by revising the last
sentence to read as follows:
■
225.301–4
7. Section 252.225–7040 is amended
as follows:
■ a. By revising the clause date to read
‘‘(JUL 2009)’’; and
■ b. In paragraph (n)(2) by removing
‘‘DoD Directive 2310.2, Personnel
Recovery’’ and adding in its place ‘‘DoD
Directive 3002.01E, Personnel Recovery
in the Department of Defense’’.
Defense Acquisition Regulations
System
PART 204—ADMINISTRATIVE
MATTERS
219.1204
[Amended]
DEPARTMENT OF DEFENSE
Authority: 41 U.S.C. 421 and 48 CFR
Chapter 1.
219.708
252.225–7040
■
Government procurement.
204.7202–2
PART 252—SOLICITATION
PROVISIONS AND CONTRACT
CLAUSES
Contract clause.
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srobinson on DSKHWCL6B1PROD with RULES
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(2) * * * Information on the SPOT
system is available at https://
www.dod.mil/bta/products/spot.html
and https://www.acq.osd.mil/log/PS/
spot.html.
SUMMARY: DoD has issued a final rule
amending the Defense Federal
Acquisition Regulation Supplement
(DFARS) to implement statutory
provisions relating to the leasing of
vessels, aircraft, and combat vehicles.
The rule applies to long-term leases and
charters and to contracts with a
substantial termination liability.
DATES: Effective Date: July 15, 2009.
FOR FURTHER INFORMATION CONTACT: Ms.
Cassandra Freeman, Defense
Acquisition Regulations System, OUSD
(AT&L) DPAP (DARS), IMD 3D139, 3062
Defense Pentagon, Washington, DC
20301–3062. Telephone 703–602–8383;
facsimile 703–602–7887. Please cite
DFARS Case 2006–D013.
SUPPLEMENTARY INFORMATION:
A. Background
225.1101
10 U.S.C. 2401, as amended by
Section 815 of the National Defense
Authorization Act for Fiscal Year 2006
(Pub. L. 109–163), permits a military
department to award a long-term lease
or charter, or a contract with a
substantial termination liability, for a
vessel, aircraft, or combat vehicle, only
if the Secretary of the military
department is specifically authorized by
law to award the contract and provides
[Amended]
6. Section 225.1101 is amended in
paragraph (11)(i) introductory text by
removing ‘‘paragraph (10)’’ and adding
in its place ‘‘paragraph (11)’’.
■
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15:15 Jul 14, 2009
Jkt 217001
PO 00000
Frm 00057
Fmt 4700
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34265
the appropriate notifications to the
congressional defense committees.
Prior to the enactment of Public Law
109–163, the provisions of 10 U.S.C.
2401 applied to vessels and aircraft.
Section 815 of Public Law 109–163
amended 10 U.S.C. 2401 to also include
combat vehicles.
DoD published a proposed rule at 72
FR 28662 on May 22, 2007, to address
the provisions of 10 U.S.C. 2401. Five
sources submitted comments on the
proposed rule. A discussion of the
comments is provided below.
1. Comment: The proposed rule
unduly applies its requirements to all
leases and charters instead of only longterm leases and charters.
DoD Response: The rule has been
amended to clarify that its requirements
apply only to long-term leases and
charters, and to contracts that provide
for a substantial termination liability,
consistent with the statutory provisions.
2. Comment: One respondent stated
that the approval authority specified in
the proposed rule (head of the agency)
is not consistent with the approval
authority specified in the statute
(Secretary of the military department).
Another respondent recommended
delegation of the approval authority to
the head of the contracting activity, to
be consistent with the implementation
of 10 U.S.C. 2401a at DFARS 207.470,
for approval of leases and charters with
terms of 18 months or more.
DoD Response: The final rule
specifies the Secretary of the military
department as the approval authority,
consistent with 10 U.S.C. 2401.
However, in accordance with FAR
1.108(b), the Secretary of the military
department may delegate this authority
as deemed appropriate.
3. Comment: The term ‘‘similar
agreement’’ should be deleted from the
rule, since this term is not defined in
the DFARS or in the statute.
DoD Response: The term has been
excluded from the final rule.
4. Comment: The rule should identify
under what circumstances DoD can
lease vessels, aircraft, and combat
vehicles and how the decision to lease
should be determined. In addition, the
rule should include the definitions of
the terms ‘‘long-term lease’’ and
‘‘substantial termination liability’’ found
in 10 U.S.C. 2401(d).
DoD Response: The recommended
changes have not been adopted. The
rule is intended to inform contracting
officers of the requirements of 10 U.S.C.
2401, but is not intended to address all
aspects of leasing. Leasing is a highly
specialized area that requires close
coordination between the contracting
officer and legal counsel.
E:\FR\FM\15JYR1.SGM
15JYR1
34266
Federal Register / Vol. 74, No. 134 / Wednesday, July 15, 2009 / Rules and Regulations
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 primarily relates to
DoD planning and budget
considerations with regard to the leasing
of vessels, aircraft, and combat vehicles.
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 207
Government procurement.
Michele P. Peterson,
Editor, Defense Acquisition Regulations
System.
Therefore, 48 CFR Part 207 is
amended as follows:
■
PART 207—ACQUISITION PLANNING
1. The authority citation for 48 CFR
Part 207 continues to read as follows:
■
Authority: 41 U.S.C. 421 and 48 CFR
Chapter 1.
2. Section 207.470 is amended as
follows:
■ a. By redesignating paragraphs (a) and
(b) as paragraphs (b) and (c)
respectively;
■ b. By adding a new paragraph (a); and
■ c. In newly designated paragraph (c),
by removing ‘‘Except as provided in
paragraph (a) of this section’’ and
adding in its place ‘‘Except as provided
in paragraphs (a) and (b) of this
section’’.
The new paragraph (a) reads as
follows:
■
srobinson on DSKHWCL6B1PROD with RULES
207.470
Statutory requirements.
(a) Requirement for authorization of
certain contracts relating to vessels,
aircraft, and combat vehicles. The
contracting officer shall not enter into
any contract for the lease or charter of
any vessel, aircraft, or combat vehicle,
or any contract for services that would
require the use of the contractor’s
vessel, aircraft, or combat vehicle,
unless the Secretary of the military
department concerned has satisfied the
requirements of 10 U.S.C. 2401, when—
(1) The contract will be a long-term
lease or charter as defined in 10 U.S.C.
2401(d)(1); or
VerDate Nov<24>2008
15:15 Jul 14, 2009
Jkt 217001
(2) The terms of the contract provide
for a substantial termination liability as
defined in 10 U.S.C. 2401(d)(2). Also see
PGI 207.470.
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[FR Doc. E9–16650 Filed 7–14–09; 8:45 am]
BILLING CODE 5001–08–P
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations
System
48 CFR Parts 209, 237, and 252
RIN 0750–AF80
Defense Federal Acquisition
Regulation Supplement; Lead System
Integrators (DFARS Case 2006–D051)
AGENCY: Defense Acquisition
Regulations System, Department of
Defense (DoD).
ACTION: Interim rule with request for
comments.
SUMMARY: DoD has issued an interim
rule amending the Defense Federal
Acquisition Regulation Supplement
(DFARS) to implement Section 802 of
the National Defense Authorization Act
for Fiscal Year 2008. Section 802 places
limitations on the award of new
contracts for lead system integrator
functions in the acquisition of major
DoD systems.
DATES: Effective date: July 15, 2009.
Comment date: Comments on the
interim rule should be submitted in
writing to the address shown below on
or before September 14, 2009, to be
considered in the formation of the final
rule.
ADDRESSES: You may submit comments,
identified by DFARS Case 2006–D051,
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 2006–D051 in the subject
line of the message.
• Fax: 703–602–7887.
• Mail: Defense Acquisition
Regulations System, Attn: Ms.
Cassandra Freeman, OUSD (AT&L)
DPAP (DARS), 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.
PO 00000
Frm 00058
Fmt 4700
Sfmt 4700
FOR FURTHER INFORMATION CONTACT: Ms.
Cassandra Freeman, 703–602–8383.
SUPPLEMENTARY INFORMATION:
A. Background
DoD published an interim rule at 73
FR 1823 on January 10, 2008, to
implement Section 807 of the National
Defense Authorization Act for Fiscal
Year 2007 (Pub. L. 109–364) with regard
to limitations on the performance of
lead system integrator functions by DoD
contractors. On January 28, 2008,
Section 802 of the National Defense
Authorization Act for Fiscal Year 2008
(Pub. L. 110–181) placed additional
limitations on DoD use of lead system
integrators. This second interim rule
amends the interim rule published on
January 10, 2008, to implement Section
802 of Public Law 110–181.
One source submitted comments on
the interim rule published on January
10, 2008. A discussion of the comments
is provided below.
1. Comment: Section 802 of the Fiscal
Year 2008 National Defense
Authorization Act (Pub. L. 110–181),
which was enacted after publication of
the interim rule, contains a definition of
‘‘lead system integrator’’ that renders
the interim rule definition obsolete.
DoD Response: The definition of
‘‘lead system integrator’’ in this second
interim rule has been amended for
consistency with the definition in
Section 802 of Public Law 110–181.
2. Comment: The limitations on the
award of new contracts for lead system
integrator functions, in Section 802 of
Public Law 110–181, will make any
implementing regulations applicable to
only a handful of contractors. Given the
limited duration of ongoing contracts for
programs that have been identified as
lead system integrators, the newly
created contract clauses in the interim
rule are unlikely to be incorporated into
a contract, because the fiscal year 2008
statutory prohibition effectively
precludes their use. Therefore, DoD
should withdraw or suspend the interim
rule.
DoD Response: DoD agrees that the
rule will apply only to a limited number
of contractors and only for a limited
duration. However, the law must be
implemented for those situations where
it is applicable.
3. Comment: It is inappropriate to
require contractors to represent whether
or not they propose to perform lead
system integrator functions under vague
definitions, given that the contract may
be terminated for default or other
remedies may be imposed at the sole
discretion of the contracting officer if
the contractor misrepresented its
‘‘financial interests’’ when that term is
E:\FR\FM\15JYR1.SGM
15JYR1
]]>Agencies
[Federal Register Volume 74, Number 134 (Wednesday, July 15, 2009)]
[Rules and Regulations]
[Pages 34265-34266]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-16650]
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System
48 CFR Part 207
RIN 0750-AF39
Defense Federal Acquisition Regulation Supplement; Lease of
Vessels, Aircraft, and Combat Vehicles (DFARS Case 2006-D013)
AGENCY: Defense Acquisition Regulations System, Department of Defense
(DoD).
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: DoD has issued a final rule amending the Defense Federal
Acquisition Regulation Supplement (DFARS) to implement statutory
provisions relating to the leasing of vessels, aircraft, and combat
vehicles. The rule applies to long-term leases and charters and to
contracts with a substantial termination liability.
DATES: Effective Date: July 15, 2009.
FOR FURTHER INFORMATION CONTACT: Ms. Cassandra Freeman, Defense
Acquisition Regulations System, OUSD (AT&L) DPAP (DARS), IMD 3D139,
3062 Defense Pentagon, Washington, DC 20301-3062. Telephone 703-602-
8383; facsimile 703-602-7887. Please cite DFARS Case 2006-D013.
SUPPLEMENTARY INFORMATION:
A. Background
10 U.S.C. 2401, as amended by Section 815 of the National Defense
Authorization Act for Fiscal Year 2006 (Pub. L. 109-163), permits a
military department to award a long-term lease or charter, or a
contract with a substantial termination liability, for a vessel,
aircraft, or combat vehicle, only if the Secretary of the military
department is specifically authorized by law to award the contract and
provides the appropriate notifications to the congressional defense
committees.
Prior to the enactment of Public Law 109-163, the provisions of 10
U.S.C. 2401 applied to vessels and aircraft. Section 815 of Public Law
109-163 amended 10 U.S.C. 2401 to also include combat vehicles.
DoD published a proposed rule at 72 FR 28662 on May 22, 2007, to
address the provisions of 10 U.S.C. 2401. Five sources submitted
comments on the proposed rule. A discussion of the comments is provided
below.
1. Comment: The proposed rule unduly applies its requirements to
all leases and charters instead of only long-term leases and charters.
DoD Response: The rule has been amended to clarify that its
requirements apply only to long-term leases and charters, and to
contracts that provide for a substantial termination liability,
consistent with the statutory provisions.
2. Comment: One respondent stated that the approval authority
specified in the proposed rule (head of the agency) is not consistent
with the approval authority specified in the statute (Secretary of the
military department). Another respondent recommended delegation of the
approval authority to the head of the contracting activity, to be
consistent with the implementation of 10 U.S.C. 2401a at DFARS 207.470,
for approval of leases and charters with terms of 18 months or more.
DoD Response: The final rule specifies the Secretary of the
military department as the approval authority, consistent with 10
U.S.C. 2401. However, in accordance with FAR 1.108(b), the Secretary of
the military department may delegate this authority as deemed
appropriate.
3. Comment: The term ``similar agreement'' should be deleted from
the rule, since this term is not defined in the DFARS or in the
statute.
DoD Response: The term has been excluded from the final rule.
4. Comment: The rule should identify under what circumstances DoD
can lease vessels, aircraft, and combat vehicles and how the decision
to lease should be determined. In addition, the rule should include the
definitions of the terms ``long-term lease'' and ``substantial
termination liability'' found in 10 U.S.C. 2401(d).
DoD Response: The recommended changes have not been adopted. The
rule is intended to inform contracting officers of the requirements of
10 U.S.C. 2401, but is not intended to address all aspects of leasing.
Leasing is a highly specialized area that requires close coordination
between the contracting officer and legal counsel.
[[Page 34266]]
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 primarily relates to DoD planning and budget
considerations with regard to the leasing of vessels, aircraft, and
combat vehicles.
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 207
Government procurement.
Michele P. Peterson,
Editor, Defense Acquisition Regulations System.
0
Therefore, 48 CFR Part 207 is amended as follows:
PART 207--ACQUISITION PLANNING
0
1. The authority citation for 48 CFR Part 207 continues to read as
follows:
Authority: 41 U.S.C. 421 and 48 CFR Chapter 1.
0
2. Section 207.470 is amended as follows:
0
a. By redesignating paragraphs (a) and (b) as paragraphs (b) and (c)
respectively;
0
b. By adding a new paragraph (a); and
0
c. In newly designated paragraph (c), by removing ``Except as provided
in paragraph (a) of this section'' and adding in its place ``Except as
provided in paragraphs (a) and (b) of this section''.
The new paragraph (a) reads as follows:
207.470 Statutory requirements.
(a) Requirement for authorization of certain contracts relating to
vessels, aircraft, and combat vehicles. The contracting officer shall
not enter into any contract for the lease or charter of any vessel,
aircraft, or combat vehicle, or any contract for services that would
require the use of the contractor's vessel, aircraft, or combat
vehicle, unless the Secretary of the military department concerned has
satisfied the requirements of 10 U.S.C. 2401, when--
(1) The contract will be a long-term lease or charter as defined in
10 U.S.C. 2401(d)(1); or
(2) The terms of the contract provide for a substantial termination
liability as defined in 10 U.S.C. 2401(d)(2). Also see PGI 207.470.
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[FR Doc. E9-16650 Filed 7-14-09; 8:45 am]
BILLING CODE 5001-08-P
