Defense Federal Acquisition Regulation Supplement: Contingency Contract Closeout (DFARS Case 2012-D014), 30366-30367 [2012-11562]
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30366
Federal Register / Vol. 77, No. 99 / Tuesday, May 22, 2012 / Rules and Regulations
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.
This final 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 Part 225
Government procurement.
Ynette R. Shelkin,
Editor, Defense Acquisition Regulations
System.
Therefore, 48 CFR part 225 is
amended as follows:
PART 225—FOREIGN ACQUISITION
1. The authority citation for 48 CFR
part 225 continues to read as follows:
■
Authority: 41 U.S.C. 1303 and 48 CFR
chapter 1.
[Amended]
2. Section 225.770 is amended in the
first sentence to remove ‘‘Section 1211’’
and add ‘‘section 1211’’ in its place and
add ‘‘and section 1243 of the National
Defense Authorization Act for Fiscal
Year 2012 (Pub. L. 112–81)’’ at the end
of the sentence.
■ 3. Section 225.770–5 is amended by
revising paragraph (c) to read as follows:
■
Waiver of prohibition.
srobinson on DSK4SPTVN1PROD with RULES2
*
*
*
*
(c)(1) The official granting a waiver
shall submit a report to the
congressional defense committees, with
a copy to the Director of Defense
Procurement and Acquisition Policy
(see PGI 225.770–5), not less than 15
days before issuing the waiver.
(2) In the report, the official shall—
(i) Identify the specific reasons for the
waiver; and
(ii) Include recommendations as to
what actions may be taken to develop
VerDate Mar<15>2010
17:23 May 21, 2012
Jkt 226001
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations
System
II. Publication of This Final Rule for
Public Comment Is Not Required by
Statute
DoD is issuing a final rule
amending the Defense Federal
Acquisition Regulation Supplement
(DFARS) to require additional planning,
monitoring, and executing activities for
contract closeouts when the contracts
are awarded for performance in
contingency areas.
DATES: Effective Date: May 22, 2012.
FOR FURTHER INFORMATION CONTACT:
Meredith Murphy, telephone 571–372–
6098.
SUPPLEMENTARY INFORMATION:
‘‘Publication of proposed
regulations,’’ 41 U.S.C. 1707, is the
statute which applies to the publication
of the Federal Acquisition Regulation.
Paragraph (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 this amendment does
not relate to the expenditure of
appropriated funds, and has neither a
significant effect beyond the internal
operating procedures of DoD, or a
significant cost or administrative impact
on contractors or offerors. These
requirements affect only the internal
operating procedures of the
Government.
III. Executive Orders 12866 and 13563
DoD is amending the Defense Federal
Acquisition Regulation Supplement
(DFARS) to implement a
recommendation made by the
Government Accountability Office
(GAO)report 11–891, ‘‘CONTINGENCY
CONTRACTING: Improved Planning
and Management Oversight Needed to
Address Challenges with Closing
Contracts,’’ dated August 23, 2011. The
GAO recommended that DoD improve
contract closeouts when the contracts
are awarded for performance in
contingency areas. The GAO
recommended revising contract
guidance to enhance advance planning
for contingency contract closeouts.
Additionally, the GAO advocated
including a requirement that senior
contracting officials monitor and assess
the progress of contract closeout
activities throughout the contingency
operation.
The DFARS is amended at 204.804 to
implement key elements proposed by
the GAO. The head of the contracting
activity is required to assign the highest
priority to contracts performed in a
contingency area in order to reduce
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.
RIN 0750–AH71
Defense Federal Acquisition
Regulation Supplement: Contingency
Contract Closeout (DFARS Case 2012–
D014)
Defense Acquisition
Regulations System, Department of
Defense (DoD).
ACTION: Final rule.
AGENCY:
V. Paperwork Reduction Act
*
BILLING CODE 5001–06–P
48 CFR Part 204
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.
225.770–5
[FR Doc. 2012–11561 Filed 5–21–12; 8:45 am]
potential backlogs. Heads of contracting
activities are responsible for supervising
the progress of contingency contract
closeout activities and taking
appropriate steps if a backlog occurs.
I. Background
IV. Regulatory Flexibility Act
225.770
alternative sourcing capabilities in the
future.
SUMMARY:
PO 00000
Frm 00012
Fmt 4701
Sfmt 4700
IV. 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.
E:\FR\FM\22MYR2.SGM
22MYR2
Federal Register / Vol. 77, No. 99 / Tuesday, May 22, 2012 / Rules and Regulations
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 Part 204
Government procurement.
Ynette R. Shelkin,
Editor, Defense Acquisition Regulations
System.
I. Background
Therefore, 48 CFR part 204 is
amended to read as follows:
PART 204—ADMINISTRATIVE
MATTERS
1. The authority citation for 48 CFR
part 204 continues to read as follows:
■
Authority: 41 U.S.C. 1303 and CFR
chapter 1.
2. Section 204.804 is revised to read
as follows:
■
204.804
Closeout of contract files.
(1) Contracting officers shall close out
contracts in accordance with the
procedures at PGI 204.804. The closeout
date for file purposes shall be
determined and documented by the
procuring contracting officer.
(2) The head of the contracting
activity shall assign the highest priority
to closeout of contracts awarded for
performance in a contingency area.
Heads of contracting activities must
monitor and assess on a regular basis
the progress of contingency contract
closeout activities and take appropriate
steps if a backlog occurs. For guidance
on the planning and execution of
closing out such contracts, see PGI
207.105(b)(20)(C)(8) and PGI
225.7404(e).
[FR Doc. 2012–11562 Filed 5–21–12; 8:45 am]
BILLING CODE 5001–06–P
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations
System
48 CFR Parts 204 and 243
srobinson on DSK4SPTVN1PROD with RULES2
RIN 0750–AH56
Defense Federal Acquisition
Regulation Supplement: Order of
Application for Modifications (DFARS
Case 2012–D002)
Defense Acquisition
Regulations System, Department of
Defense (DoD).
ACTION: Final rule.
AGENCY:
VerDate Mar<15>2010
17:23 May 21, 2012
Jkt 226001
DoD is issuing a final rule
amending the Defense Federal
Acquisition Regulation Supplement
(DFARS) to establish an order for
application of contract modifications to
resolve any potential conflicts that may
arise from multiple modifications with
the same effective date.
DATES: Effective Date: May 22, 2012.
FOR FURTHER INFORMATION CONTACT: Dr.
Laura Welsh, telephone 571–372–6091.
SUPPLEMENTARY INFORMATION:
SUMMARY:
DoD published a proposed rule in the
Federal Register at 77 FR 2679 on
January 19, 2012, to establish an order
for application of contract
modifications. DFARS subpart 204.70,
Uniform Procurement Instrument
Identification Numbers, prescribes
numbering procedures for contract
modifications and the Federal
Acquisition Regulation (FAR) part 43.1,
General, prescribes rules for
determining the effective date of
contract modifications. There are no
rules to describe in what order to apply
modifications to determine the actual
content of a resulting modified contract.
In order to determine the sequence of
modifications to a contract or order, a
method for determining the order of
application for modifications is needed
to resolve any conflict arising from
multiple modifications with the same
effective date. Therefore, this final rule
adds DFARS text at 204.7007, Order of
Application for Modifications, to
resolve any potential conflict in these
circumstances. One respondent
submitted a public comment in
response to the proposed rule.
II. Discussion and Analysis of the
Public Comment
DoD considered the public comment
in the development of the final rule,
which is discussed as follows.
Comment: A respondent suggested
that a cross-reference to the proposed
DFARS 204.7007 language be placed
within DFARS part 243, Contract
Modifications, as the rule addresses
contract modifications.
Response: In response to the
respondent’s comment, a cross-reference
to DFARS 204.7007 is added at DFARS
243.172. No other changes were made to
the proposed rule.
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
PO 00000
Frm 00013
Fmt 4701
Sfmt 4700
30367
(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
DoD has prepared a final regulatory
flexibility analysis (FRFA) consistent
with the Regulatory Flexibility Act, 5
U.S.C. 601, et seq. The FRFA is
summarized as follows:
This rule finalizes a proposed
amendment to the Defense Federal
Acquisition Regulation Supplement
(DFARS) which was published on
January 19, 2012. DFARS subpart
204.70, Uniform Procurement
Instrument Identification Numbers,
prescribes numbering procedures for
contract modifications, and Federal
Acquisition Regulation (FAR) subpart
43.1, General, prescribes guidelines for
determining the effective date. There are
no rules to describe in what order to
apply modifications to determine the
actual content of a resulting modified
contract.
The objective of the rule is to provide
a set of rules to the contracting officer
to resolve any potential conflicts from
multiple modifications with the same
effective date.
There were no public comments in
response to the initial regulatory
flexibility analysis.
DoD received no comments by the
Chief Counsel for Advocacy of the Small
Business Administration in response to
the proposed rule.
The changes required to the DFARS
by this case only affect the internal
operating processes of DoD by
establishing an order of application for
contract modifications. These changes
are not expected to have an economic
impact on contractors.
This rule does not impose any new
reporting or recordkeeping
requirements.
The alternative to this rule is to
continue relying on DFARS subpart
204.70, which prescribes numbering
procedures for contract modifications,
and FAR subpart 43.1, which provides
guidelines for determining the effective
date. However, the cited text does not
provide a clear structured path to ensure
no ambiguity arises when determining
in what order to apply modifications.
E:\FR\FM\22MYR2.SGM
22MYR2
]]>Agencies
[Federal Register Volume 77, Number 99 (Tuesday, May 22, 2012)]
[Rules and Regulations]
[Pages 30366-30367]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-11562]
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System
48 CFR Part 204
RIN 0750-AH71
Defense Federal Acquisition Regulation Supplement: Contingency
Contract Closeout (DFARS Case 2012-D014)
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 require additional
planning, monitoring, and executing activities for contract closeouts
when the contracts are awarded for performance in contingency areas.
DATES: Effective Date: May 22, 2012.
FOR FURTHER INFORMATION CONTACT: Meredith Murphy, telephone 571-372-
6098.
SUPPLEMENTARY INFORMATION:
I. Background
DoD is amending the Defense Federal Acquisition Regulation
Supplement (DFARS) to implement a recommendation made by the Government
Accountability Office (GAO)report 11-891, ``CONTINGENCY CONTRACTING:
Improved Planning and Management Oversight Needed to Address Challenges
with Closing Contracts,'' dated August 23, 2011. The GAO recommended
that DoD improve contract closeouts when the contracts are awarded for
performance in contingency areas. The GAO recommended revising contract
guidance to enhance advance planning for contingency contract
closeouts. Additionally, the GAO advocated including a requirement that
senior contracting officials monitor and assess the progress of
contract closeout activities throughout the contingency operation.
The DFARS is amended at 204.804 to implement key elements proposed
by the GAO. The head of the contracting activity is required to assign
the highest priority to contracts performed in a contingency area in
order to reduce potential backlogs. Heads of contracting activities are
responsible for supervising the progress of contingency contract
closeout activities and taking appropriate steps if a backlog occurs.
II. Publication of This Final Rule for Public Comment Is Not Required
by Statute
``Publication of proposed regulations,'' 41 U.S.C. 1707, is the
statute which applies to the publication of the Federal Acquisition
Regulation. Paragraph (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 this amendment does not relate to the expenditure of
appropriated funds, and has neither a significant effect beyond the
internal operating procedures of DoD, or a significant cost or
administrative impact on contractors or offerors. These requirements
affect only the internal operating procedures of the Government.
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
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.
[[Page 30367]]
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 Part 204
Government procurement.
Ynette R. Shelkin,
Editor, Defense Acquisition Regulations System.
Therefore, 48 CFR part 204 is amended to read as follows:
PART 204--ADMINISTRATIVE MATTERS
0
1. The authority citation for 48 CFR part 204 continues to read as
follows:
Authority: 41 U.S.C. 1303 and CFR chapter 1.
0
2. Section 204.804 is revised to read as follows:
204.804 Closeout of contract files.
(1) Contracting officers shall close out contracts in accordance
with the procedures at PGI 204.804. The closeout date for file purposes
shall be determined and documented by the procuring contracting
officer.
(2) The head of the contracting activity shall assign the highest
priority to closeout of contracts awarded for performance in a
contingency area. Heads of contracting activities must monitor and
assess on a regular basis the progress of contingency contract closeout
activities and take appropriate steps if a backlog occurs. For guidance
on the planning and execution of closing out such contracts, see PGI
207.105(b)(20)(C)(8) and PGI 225.7404(e).
[FR Doc. 2012-11562 Filed 5-21-12; 8:45 am]
BILLING CODE 5001-06-P
