Defense Federal Acquisition Regulation Supplement: Clauses With Alternates-Contract Financing (DFARS Case 2013-D014), 48404-48407 [2013-18976]
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48404
Federal Register / Vol. 78, No. 153 / Thursday, August 8, 2013 / Proposed Rules
Item description
Contract line
items
Quantity
Total .................................................................................................................................
(g) If this contract exceeds the simplified
acquisition threshold and the final invoice
does not include the required representation,
the Government will reject and return it to
the Contractor as an improper invoice for the
purposes of the Prompt Payment clause of
this contract. In the event there has been
unauthorized use of non-U.S.-flag vessels in
the performance of this contract, the
Contracting Officer is entitled to equitably
adjust the contract, based on the
unauthorized use.
(h) In the award of subcontracts for the
types of supplies described in paragraph
(b)(2) of this clause, the Contractor shall flow
down the requirements of this clause as
follows:
(1) The Contractor shall insert the
substance of this clause, including this
paragraph (h), in subcontracts that exceed the
simplified acquisition threshold in Part 2 of
the Federal Acquisition Regulation.
(2) The Contractor shall insert the
substance of paragraphs (a) through (e) of this
clause, and this paragraph (h), in
subcontracts that are at or below the
simplified acquisition threshold in Part 2 of
the Federal Acquisition Regulation.
(End of clause)
[FR Doc. 2013–18972 Filed 8–7–13; 8:45 am]
BILLING CODE 5001–06–P
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations
System
48 CFR Parts 232 and 252
RIN 0750–AI02
Defense Federal Acquisition
Regulation Supplement: Clauses With
Alternates—Contract Financing
(DFARS Case 2013–D014)
Defense Acquisition
Regulations System, Department of
Defense (DoD).
ACTION: Proposed rule.
AGENCY:
DoD is proposing to amend
the Defense Federal Acquisition
Regulation Supplement (DFARS) to
create an overarching prescription for
the set of contract financing related
clauses with one or more alternates. The
rule also proposes to add a separate
prescription for the basic clause as well
as the alternate. In addition, the
proposed rule would include the full
text of the clause alternate.
DATES: Comments on the proposed rule
should be submitted in writing to the
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SUMMARY:
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address shown below on or before
October 7, 2013, to be considered in the
formation of a final rule.
ADDRESSES: Submit comments
identified by DFARS Case 2013–D014,
using any of the following methods:
Æ Regulations.gov: https://
www.regulations.gov. Submit comments
via the Federal eRulemaking portal by
entering ‘‘DFARS Case 2013–D014’’
under the heading ‘‘Enter keyword or
ID’’ and selecting ‘‘Search.’’ Select the
link ‘‘Submit a Comment’’ that
corresponds with ‘‘DFARS Case 2013–
D014.’’ Follow the instructions provided
at the ‘‘Submit a Comment’’ screen.
Please include your name, company
name (if any), and ‘‘DFARS Case 2013–
D014’’ on your attached document.
Æ Email: dfars@osd.mil. Include
DFARS Case 2013–D014 in the subject
line of the message.
Æ Fax: 571–372–6094.
Æ Mail: Defense Acquisition
Regulations System, Attn: Ms. Annette
Gray, OUSD(AT&L)DPAP/DARS, Room
3B855, 3060 Defense Pentagon,
Washington, DC 20301–3060.
Comments received generally will be
posted without change to https://
www.regulations.gov, including any
personal information provided. To
confirm receipt of your comment(s),
please check www.regulations.gov,
approximately two to three days after
submission to verify posting (except
allow 30 days for posting of comments
submitted by mail).
FOR FURTHER INFORMATION CONTACT:
Annette Gray, Defense Acquisition
Regulations System,
OUSD(AT&L)DPAP/DARS, Room
3B855, 3060 Defense Pentagon,
Washington, DC 20301–3060.
Telephone 571–372–6093; facsimile
571–372–6101.
SUPPLEMENTARY INFORMATION:
I. Background
DoD is proposing to amend the
DFARS to create an overarching
prescription for the contract financing
clause with one alternate. The rule also
proposes to add a separate prescription
for the basic clause as well as the
alternate. For clarity, the preface of the
alternate will continue to explain what
portions of the alternate are different
from the basic clause.
Separate prescriptions for the basic
and alternates of DFARS clauses will
facilitate the use of automated contract
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writing systems. The proposed rule will
not revise the prescriptions in any
substantive way or change the
applicability of the clause or its
alternate.
The inclusion of the full text of each
clause alternate aims to make the terms
of a clause alternate clearer to offerors
and to DoD contracting officers. The
current convention for alternates is to
show only the changed paragraphs from
the basic provision or clause. This
proposed rule would include the full
text of each clause and each alternate,
which will assist in making solicitation
and contract terms and conditions easier
to read and understand. By placing
alternates in full text, all paragraph
substitutions from the basic clause will
have already been made. Inapplicable
paragraphs from the basic clause that
are superseded by the alternate will not
be included in the solicitation or
contract in order to prevent confusion.
Although this rule proposes to
include the text of the alternate in full,
it retains the language that precedes the
clause or alternate, which includes the
location of the alternate’s prescription
and a statement that identifies which
paragraphs were changed from the basic
clause. Further, alternates are proposed
to have individual titles that tie them to
the basic clause, e.g., ‘‘Limitation of
Government’s Obligation—Alternate I’’
in lieu of ‘‘Alternate I.’’
II. Discussion
This proposed rule addresses only the
single DFARS part 232 clause that has
an alternate. The remaining
prescriptions in part 232 are not
proposed to be changed in any way by
this rule. The affected clause is
252.232–7007, Limitation of
Government’s Obligation, with one
alternate. The naming convention
results in proposed new clause titles,
e.g., Limitation of Government’s
Obligation—Basic and Limitation of
Government’s Obligation—Alternate I.
An umbrella prescription is proposed
to be added for the elements common to
the basic clause and alternate. The
specific prescription for the basic clause
and alternate would then address only
the requirements for their use that
enable the selection of the basic or the
alternate. For example, the revised
prescription for Limitation of
Government’s Obligation—Alternate I
would read as follows: ‘‘Use the clause
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Federal Register / Vol. 78, No. 153 / Thursday, August 8, 2013 / Proposed Rules
at 252.232–7007, Limitation of
Government’s Obligation—Alternate I, if
only one line item will be incrementally
funded.’’ The planned changes will
increase the clarity and ease of use, but
will not revise the applicability in any
way. The text of the current DFARS
252.232–7007, Alternate I, would no
longer consist solely of paragraph (a),
but would include the entire text of
DFARS 252.232–7007 (basic clause)
with the revised paragraph (a)
substituted for the corresponding
paragraph of the basic clause.
Inapplicable paragraphs from the basic
version of the clause that are superseded
by the alternate will not be included in
the solicitation or contract in order to
prevent confusion.
Further, this proposed rule would
also revise the applicable preface, i.e.,
the language in part 232 that precedes
a provision, clause, or alternate. The
proposed rule would replace the current
preface language with a statement that
identifies the specific changes from the
basic version of the solicitations
provision or clause.
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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
DoD does not expect this proposed
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 it merely revises the
prescriptions for solicitation provisions
and clauses with alternates to be
unique, as well as includes the full text
of each provision or clause in each
alternate. However, an initial regulatory
flexibility analysis has been performed
and is summarized as follows:
The purpose of this proposed rule is
to amend the DFARS to create unique
prescriptions for the basic version and
each alternate of DFARS part 232
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solicitation provisions and contract
clauses, and to include the full text of
each clause alternate.
The use of automated contract writing
systems will be facilitated by having
unique prescriptions for the basic
version and each alternate of DFARS
solicitations provisions and clauses. The
current convention requires the
prescription for the basic provision or
clause to address all the possibilities
covered by the alternates, and then the
prescription for each alternate addresses
only what is different for the use of that
particular alternate. This rule will revise
the prescriptions so that the basic
solicitation provision or clause and each
alternate is unique and stands on its
own. The prescriptions will not be
revised in any way to change when they
are applicable to offerors, contractors, or
subcontractors.
Additionally, the inclusion of the full
text of each provision or clause alternate
aims to make the terms of a provision
or clause alternate clearer to offerors, as
well as to DoD contracting officers.
Instead of the current convention for
alternates to show only paragraphs
changed from the basic version of the
provision or clause, this rule proposes
to include the full text of each version
of the clause. This will assist in making
the terms of the clause clearer, because
all paragraph substitutions will have
already been made. Inapplicable
paragraphs from the basic version of the
clause that are superseded by the
alternate are not included in the
solicitation or contract to prevent
confusion.
Potential offerors, including small
businesses, may be affected by this rule
by seeing an unfamiliar format for
clause alternates in solicitations and
contracts issued by DoD contracting
activities. An average of 12,618,521 new
contracts was awarded in Fiscal Years
2011 and 2012, and an average of
1,557,852 of these actions (12.35%) was
awarded to small businesses. It is
unknown how many of these contracts
were awarded that included an alternate
to a DFARS provision or clause. Nothing
substantive will change in solicitations
or contracts for potential offerors, and
only the appearance of how clause
alternates are presented in the
solicitations and contracts will be
changed.
This rule may result in potential
offerors, including small businesses,
expending more time to become familiar
with and to understand the new format
of the clause alternates in full text
contained in contracts issued by any
DoD contracting activity. The rule also
anticipates saving contractors time by
making all paragraph substitutions from
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the basic version of the clause, and not
requiring the contractors to read
inapplicable paragraphs contained in
the basic version of the clause where
alternates are also included in the
solicitations and contracts. The overall
burden caused by this rule is expected
to be negligible and will not be any
greater on small businesses than it is on
large businesses.
This rule does not add any new
information collection requirements.
The rule does not duplicate, overlap, or
conflict with any other Federal rules. No
alternatives were identified that will
accomplish the objectives of the rule.
DoD invites comments from small
business concerns and other interested
parties on the expected impact of this
rule on small entities.
DoD will also consider comments
from small entities concerning the
existing regulations in subparts affected
by this rule in accordance with 5 U.S.C.
610. Interested parties must submit such
comments separately and should cite 5
U.S.C. 610 (DFARS Case 2013–D014), in
correspondence.
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 232 and
252
Government procurement.
Manuel Quinones,
Editor, Defense Acquisition Regulations
System.
Therefore, 48 CFR parts 232 and 252
are proposed to be amended as follows:
■ 1. The authority citation for parts 232
and 252 continues to read as follows:
Authority: 41 U.S.C. 1303 and 48 CFR
Chapter 1.
PART 232—CONTRACT FINANCING
232.704–70
[Amended]
2. Amend section 232.704–70 by—
a. In paragraph (a), removing
‘‘Limitation of Government’s Obligation,
the contracting officer’’ and adding
‘‘Limitation of Government’s
Obligation—Basic or Limitation of
Government’s Obligation—Alternate I,
the contracting officer’’ in its place.
■ b. In paragraph (c), removing
‘‘Limitation of Government’s Obligation,
sufficient funds’’ and adding
‘‘Limitation of Government’s
Obligation—Basic or Limitation of
Government’s Obligation—Alternate I,
sufficient funds’’ in its place.
■
■
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Federal Register / Vol. 78, No. 153 / Thursday, August 8, 2013 / Proposed Rules
3. Revise section 232.705–70 to read
as follows:
■
232.705–70 Clause for limitation of
Government’s obligation.
Use the basic or the alternate of the
clause at 252.232–7007, Limitation of
Government’s Obligation, in
solicitations and resultant incrementally
funded fixed-price contracts. The
contracting officer may revise the
contractor’s notification period, in
paragraph (c) of the clause, from
‘‘ninety’’ to ‘‘thirty’’ or ‘‘sixty’’ days, as
appropriate.
(a) Use the clause Limitation of
Government’s Obligation—Basic, if
more than one line item will be
incrementally funded.
(b) Use the clause Limitation of
Government’s Obligation—Alternate I, if
only one line item will be incrementally
funded.
PART 252—SOLICITATION
PROVISIONS AND CONTRACT
CLAUSES
4. Revise section 252.232–7007 to
read as follows:
■
252.232–7007
Obligation.
Limitation of Government’s
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As prescribed in 232.705–70, use one
of the following clauses:
(a) Limitation of Government’s
Obligation—Basic. For the specific
prescription for the use of the basic
clause, see 232.705–70(a).
LIMITATION OF GOVERNMENT’S
OBLIGATION—BASIC (DATE)
(a) Contract line item(s) lllll through
lllll are incrementally funded. For
these item(s), the sum of $lllll of the
total price is presently available for payment
and allotted to this contract. An allotment
schedule is set forth in paragraph (j) of this
clause.
(b) For item(s) identified in paragraph (a)
of this clause, the Contractor agrees to
perform up to the point at which the total
amount payable by the Government,
including reimbursement in the event of
termination of those item(s) for the
Government’s convenience, approximates the
total amount currently allotted to the
contract. The Contractor is not authorized to
continue work on those item(s) beyond that
point. The Government will not be obligated
in any event to reimburse the Contractor in
excess of the amount allotted to the contract
for those item(s) regardless of anything to the
contrary in the clause entitled ‘‘Termination
for Convenience of the Government.’’ As
used in this clause, the total amount payable
by the Government in the event of
termination of applicable contract line
item(s) for convenience includes costs, profit,
and estimated termination settlement costs
for those item(s).
(c) Notwithstanding the dates specified in
the allotment schedule in paragraph (j) of this
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clause, the Contractor will notify the
Contracting Officer in writing at least ninety
days prior to the date when, in the
Contractor’s best judgment, the work will
reach the point at which the total amount
payable by the Government, including any
cost for termination for convenience, will
approximate 85 percent of the total amount
then allotted to the contract for performance
of the applicable item(s). The notification
will state (1) the estimated date when that
point will be reached and (2) an estimate of
additional funding, if any, needed to
continue performance of applicable line
items up to the next scheduled date for
allotment of funds identified in paragraph (j)
of this clause, or to a mutually agreed upon
substitute date. The notification will also
advise the Contracting Officer of the
estimated amount of additional funds that
will be required for the timely performance
of the item(s) funded pursuant to this clause,
for a subsequent period as may be specified
in the allotment schedule in paragraph (j) of
this clause or otherwise agreed to by the
parties. If after such notification additional
funds are not allotted by the date identified
in the Contractor’s notification, or by an
agreed substitute date, the Contracting
Officer will terminate any item(s) for which
additional funds have not been allotted,
pursuant to the clause of this contract
entitled ‘‘Termination for Convenience of the
Government.’’
(d) When additional funds are allotted for
continued performance of the contract line
item(s) identified in paragraph (a) of this
clause, the parties will agree as to the period
of contract performance which will be
covered by the funds. The provisions of
paragraphs (b) through (d) of this clause will
apply in like manner to the additional
allotted funds and agreed substitute date, and
the contract will be modified accordingly.
(e) If, solely by reason of failure of the
Government to allot additional funds, by the
dates indicated below, in amounts sufficient
for timely performance of the contract line
item(s) identified in paragraph (a) of this
clause, the Contractor incurs additional costs
or is delayed in the performance of the work
under this contract and if additional funds
are allotted, an equitable adjustment will be
made in the price or prices (including
appropriate target, billing, and ceiling prices
where applicable) of the item(s), or in the
time of delivery, or both. Failure to agree to
any such equitable adjustment hereunder
will be a dispute concerning a question of
fact within the meaning of the clause entitled
‘‘Disputes.’’
(f) The Government may at any time prior
to termination allot additional funds for the
performance of the contract line item(s)
identified in paragraph (a) of this clause.
(g) The termination provisions of this
clause do not limit the rights of the
Government under the clause entitled
‘‘Default.’’ The provisions of this clause are
limited to the work and allotment of funds
for the contract line item(s) set forth in
paragraph (a) of this clause. This clause no
longer applies once the contract is fully
funded except with regard to the rights or
obligations of the parties concerning
equitable adjustments negotiated under
paragraphs (d) and (e) of this clause.
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(h) Nothing in this clause affects the right
of the Government to terminate this contract
pursuant to the clause of this contract
entitled ‘‘Termination for Convenience of the
Government.’’
(i) Nothing in this clause shall be
construed as authorization of voluntary
services whose acceptance is otherwise
prohibited under 31 U.S.C. 1342.
(j) The parties contemplate that the
Government will allot funds to this contract
in accordance with the following schedule:
On execution of contract ........ $lllll
(month) (day), (year) ............... $lllll
(month) (day), (year) ............... $lllll
(month) (day), (year) ............... $lllll
(End of clause)
(b) Limitation of Government’s
Obligation—Alternate I. For the specific
prescription for the use of Alternate I,
see 232.705–70(b). Alternate I uses a
different paragraph (a) than the basic
clause.
LIMITATION OF GOVERNMENT’S
OBLIGATION—ALTERNATE I (DATE)
(a) Contract line item lllll is
incrementally funded. The sum of
$lllll is presently available for
payment and allotted to this contract. An
allotment schedule is contained in paragraph
(j) of this clause.
(b) For item(s) identified in paragraph (a)
of this clause, the Contractor agrees to
perform up to the point at which the total
amount payable by the Government,
including reimbursement in the event of
termination of those item(s) for the
Government’s convenience, approximates the
total amount currently allotted to the
contract. The Contractor is not authorized to
continue work on those item(s) beyond that
point. The Government will not be obligated
in any event to reimburse the Contractor in
excess of the amount allotted to the contract
for those item(s) regardless of anything to the
contrary in the clause entitled ‘‘Termination
for Convenience of the Government.’’ As
used in this clause, the total amount payable
by the Government in the event of
termination of applicable contract line
item(s) for convenience includes costs, profit,
and estimated termination settlement costs
for those item(s).
(c) Notwithstanding the dates specified in
the allotment schedule in paragraph (j) of this
clause, the Contractor will notify the
Contracting Officer in writing at least ninety
days prior to the date when, in the
Contractor’s best judgment, the work will
reach the point at which the total amount
payable by the Government, including any
cost for termination for convenience, will
approximate 85 percent of the total amount
then allotted to the contract for performance
of the applicable item(s). The notification
will state the estimated date when that point
will be reached and an estimate of additional
funding, if any, needed to continue
performance of applicable line items up to
the next scheduled date for allotment of
funds identified in paragraph (j) of this
clause, or to a mutually agreed upon
substitute date. The notification will also
advise the Contracting Officer of the
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estimated amount of additional funds that
will be required for the timely performance
of the item(s) funded pursuant to this clause,
for a subsequent period as may be specified
in the allotment schedule in paragraph (j) of
this clause or otherwise agreed to by the
parties. If after such notification additional
funds are not allotted by the date identified
in the Contractor’s notification, or by an
agreed substitute date, the Contracting
Officer will terminate any item(s) for which
additional funds have not been allotted,
pursuant to the clause of this contract
entitled ‘‘Termination for Convenience of the
Government.’’
(d) When additional funds are allotted for
continued performance of the contract line
item(s) identified in paragraph (a) of this
clause, the parties will agree as to the period
of contract performance which will be
covered by the funds. The provisions of
paragraphs (b) through (d) of this clause will
apply in like manner to the additional
allotted funds and agreed substitute date, and
the contract will be modified accordingly.
(e) If, solely by reason of failure of the
Government to allot additional funds, by the
dates indicated below, in amounts sufficient
for timely performance of the contract line
item(s) identified in paragraph (a) of this
clause, the Contractor incurs additional costs
or is delayed in the performance of the work
under this contract and if additional funds
are allotted, an equitable adjustment will be
made in the price or prices (including
appropriate target, billing, and ceiling prices
where applicable) of the item(s), or in the
time of delivery, or both. Failure to agree to
any such equitable adjustment hereunder
will be a dispute concerning a question of
fact within the meaning of the clause entitled
‘‘Disputes.’’
(f) The Government may at any time prior
to termination allot additional funds for the
performance of the contract line item(s)
identified in paragraph (a) of this clause.
(g) The termination provisions of this
clause do not limit the rights of the
Government under the clause entitled
‘‘Default.’’ The provisions of this clause are
limited to the work and allotment of funds
for the contract line item(s) set forth in
paragraph (a) of this clause. This clause no
longer applies once the contract is fully
funded except with regard to the rights or
obligations of the parties concerning
equitable adjustments negotiated under
paragraphs (d) and (e) of this clause.
(h) Nothing in this clause affects the right
of the Government to terminate this contract
pursuant to the clause of this contract
entitled ‘‘Termination for Convenience of the
Government.’’
(i) Nothing in this clause shall be
construed as authorization of voluntary
services whose acceptance is otherwise
prohibited under 31 U.S.C. 1342.
(j) The parties contemplate that the
Government will allot funds to this contract
in accordance with the following schedule:
On execution of contract ........ $lllll
(month) (day), (year) ............... $lllll
(month) (day), (year) ............... $lllll
(month) (day), (year) ............... $lllll
(End of clause)
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* To be inserted after negotiation.
[FR Doc. 2013–18976 Filed 8–7–13; 8:45 am]
BILLING CODE 5001–06–P
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations
System
48 CFR Parts 246 and 252
RIN 0750–AH95
Defense Federal Acquisition
Regulation Supplement: Clauses With
Alternates—Quality Assurance
(DFARS Case 2013–D004)
Defense Acquisition
Regulations System, Department of
Defense (DoD).
ACTION: Proposed rule.
AGENCY:
DoD is proposing to amend
the Defense Federal Acquisition
Regulation Supplement (DFARS) to
create an overarching prescription for
each set of quality assurance-related
provisions/clauses with one or more
alternates. In addition, the proposed
rule would include the full text of each
provision and/or clause alternate.
DATES: Comments on the proposed rule
should be submitted in writing to the
address shown below on or before
October 7, 2013, to be considered in the
formation of a final rule.
ADDRESSES: Submit comments
identified by DFARS Case 2013–D004,
using any of the following methods:
Æ Regulations.gov: https://
www.regulations.gov. Submit comments
via the Federal eRulemaking portal by
entering ‘‘DFARS Case 2013–D004’’
under the heading ‘‘Enter keyword or
ID’’ and selecting ‘‘Search.’’ Select the
link ‘‘Submit a Comment’’ that
corresponds with ‘‘DFARS Case 2013–
D004.’’ Follow the instructions provided
at the ‘‘Submit a Comment’’ screen.
Please include your name, company
name (if any), and ‘‘DFARS Case 2013–
D004’’ on your attached document.
Æ Email: dfars@osd.mil. Include
DFARS Case 2013–D004 in the subject
line of the message.
Æ Fax: 571–372–6094.
Æ Mail: Defense Acquisition
Regulations System, Attn: Ms. Susan
Williams, OUSD(AT&L)DPAP/DARS,
Room 3B855, 3060 Defense Pentagon,
Washington, DC 20301–3060.
Comments received generally will be
posted without change to https://
www.regulations.gov, including any
personal information provided. To
confirm receipt of your comment(s),
please check www.regulations.gov,
approximately two to three days after
SUMMARY:
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48407
submission to verify posting (except
allow 30 days for posting of comments
submitted by mail).
FOR FURTHER INFORMATION CONTACT: Ms.
Susan Williams, Defense Acquisition
Regulations System,
OUSD(AT&L)DPAP/DARS, Room
3B855, 3060 Defense Pentagon,
Washington, DC 20301–3060.
Telephone 571–372–6092; facsimile
571–372–6101.
SUPPLEMENTARY INFORMATION:
I. Background
DoD is proposing to revise the DFARS
to create an overarching prescription for
the quality assurance clause with two
alternates. The rule also proposes to add
a separate prescription for the basic
clause as well as each alternate. For
clarity, the preface of each alternate will
continue to explain what portions of
that alternate are different from the
basic clause.
Separate prescriptions for the basic
and alternates of DFARS clauses will
facilitate the use of automated contract
writing systems. The proposed rule will
not revise the prescriptions in any
substantive way or change the
applicability of the clauses or their
alternates.
The inclusion of the full text of each
clause alternate aims to make the terms
of a clause alternate clearer to offerors
and to DoD contracting officers. The
current convention for alternates is to
show only the changed paragraphs from
the basic provision or clause. This
proposed rule would include the full
text of each clause and each alternate,
which will assist in making solicitation
and contract terms and conditions easier
to read and understand. By placing
alternates in full text, all paragraph
substitutions from the basic clause will
have already been made. Inapplicable
paragraphs from the basic clause that
are superseded by the alternate will not
be included in the solicitation or
contract in order to prevent confusion.
Although this rule proposes to
include each alternate in full, it retains
the language that precedes the clause or
alternate, which includes the location of
the alternate’s prescription and a
statement that identifies which
paragraphs were changed from the basic
clause. Further, alternates are proposed
to have individual titles that tie them to
the basic clause, e.g., ‘‘Warranty of
Data—Alternate I’’ in lieu of ‘‘Alternate
I.’’
II. Discussion
This proposed rule addresses only the
single DFARS part 246 clause that has
alternates. The remaining prescriptions
E:\FR\FM\08AUP1.SGM
08AUP1
Agencies
[Federal Register Volume 78, Number 153 (Thursday, August 8, 2013)]
[Proposed Rules]
[Pages 48404-48407]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-18976]
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System
48 CFR Parts 232 and 252
RIN 0750-AI02
Defense Federal Acquisition Regulation Supplement: Clauses With
Alternates--Contract Financing (DFARS Case 2013-D014)
AGENCY: Defense Acquisition Regulations System, Department of Defense
(DoD).
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: DoD is proposing to amend the Defense Federal Acquisition
Regulation Supplement (DFARS) to create an overarching prescription for
the set of contract financing related clauses with one or more
alternates. The rule also proposes to add a separate prescription for
the basic clause as well as the alternate. In addition, the proposed
rule would include the full text of the clause alternate.
DATES: Comments on the proposed rule should be submitted in writing to
the address shown below on or before October 7, 2013, to be considered
in the formation of a final rule.
ADDRESSES: Submit comments identified by DFARS Case 2013-D014, using
any of the following methods:
[cir] Regulations.gov: https://www.regulations.gov. Submit comments
via the Federal eRulemaking portal by entering ``DFARS Case 2013-D014''
under the heading ``Enter keyword or ID'' and selecting ``Search.''
Select the link ``Submit a Comment'' that corresponds with ``DFARS Case
2013-D014.'' Follow the instructions provided at the ``Submit a
Comment'' screen. Please include your name, company name (if any), and
``DFARS Case 2013-D014'' on your attached document.
[cir] Email: dfars@osd.mil. Include DFARS Case 2013-D014 in the
subject line of the message.
[cir] Fax: 571-372-6094.
[cir] Mail: Defense Acquisition Regulations System, Attn: Ms.
Annette Gray, OUSD(AT&L)DPAP/DARS, Room 3B855, 3060 Defense Pentagon,
Washington, DC 20301-3060.
Comments received generally will be posted without change to https://www.regulations.gov, including any personal information provided. To
confirm receipt of your comment(s), please check www.regulations.gov,
approximately two to three days after submission to verify posting
(except allow 30 days for posting of comments submitted by mail).
FOR FURTHER INFORMATION CONTACT: Annette Gray, Defense Acquisition
Regulations System, OUSD(AT&L)DPAP/DARS, Room 3B855, 3060 Defense
Pentagon, Washington, DC 20301-3060. Telephone 571-372-6093; facsimile
571-372-6101.
SUPPLEMENTARY INFORMATION:
I. Background
DoD is proposing to amend the DFARS to create an overarching
prescription for the contract financing clause with one alternate. The
rule also proposes to add a separate prescription for the basic clause
as well as the alternate. For clarity, the preface of the alternate
will continue to explain what portions of the alternate are different
from the basic clause.
Separate prescriptions for the basic and alternates of DFARS
clauses will facilitate the use of automated contract writing systems.
The proposed rule will not revise the prescriptions in any substantive
way or change the applicability of the clause or its alternate.
The inclusion of the full text of each clause alternate aims to
make the terms of a clause alternate clearer to offerors and to DoD
contracting officers. The current convention for alternates is to show
only the changed paragraphs from the basic provision or clause. This
proposed rule would include the full text of each clause and each
alternate, which will assist in making solicitation and contract terms
and conditions easier to read and understand. By placing alternates in
full text, all paragraph substitutions from the basic clause will have
already been made. Inapplicable paragraphs from the basic clause that
are superseded by the alternate will not be included in the
solicitation or contract in order to prevent confusion.
Although this rule proposes to include the text of the alternate in
full, it retains the language that precedes the clause or alternate,
which includes the location of the alternate's prescription and a
statement that identifies which paragraphs were changed from the basic
clause. Further, alternates are proposed to have individual titles that
tie them to the basic clause, e.g., ``Limitation of Government's
Obligation--Alternate I'' in lieu of ``Alternate I.''
II. Discussion
This proposed rule addresses only the single DFARS part 232 clause
that has an alternate. The remaining prescriptions in part 232 are not
proposed to be changed in any way by this rule. The affected clause is
252.232-7007, Limitation of Government's Obligation, with one
alternate. The naming convention results in proposed new clause titles,
e.g., Limitation of Government's Obligation--Basic and Limitation of
Government's Obligation--Alternate I.
An umbrella prescription is proposed to be added for the elements
common to the basic clause and alternate. The specific prescription for
the basic clause and alternate would then address only the requirements
for their use that enable the selection of the basic or the alternate.
For example, the revised prescription for Limitation of Government's
Obligation--Alternate I would read as follows: ``Use the clause
[[Page 48405]]
at 252.232-7007, Limitation of Government's Obligation--Alternate I, if
only one line item will be incrementally funded.'' The planned changes
will increase the clarity and ease of use, but will not revise the
applicability in any way. The text of the current DFARS 252.232-7007,
Alternate I, would no longer consist solely of paragraph (a), but would
include the entire text of DFARS 252.232-7007 (basic clause) with the
revised paragraph (a) substituted for the corresponding paragraph of
the basic clause. Inapplicable paragraphs from the basic version of the
clause that are superseded by the alternate will not be included in the
solicitation or contract in order to prevent confusion.
Further, this proposed rule would also revise the applicable
preface, i.e., the language in part 232 that precedes a provision,
clause, or alternate. The proposed rule would replace the current
preface language with a statement that identifies the specific changes
from the basic version of the solicitations provision or clause.
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
DoD does not expect this proposed 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 it merely revises the prescriptions for solicitation provisions
and clauses with alternates to be unique, as well as includes the full
text of each provision or clause in each alternate. However, an initial
regulatory flexibility analysis has been performed and is summarized as
follows:
The purpose of this proposed rule is to amend the DFARS to create
unique prescriptions for the basic version and each alternate of DFARS
part 232 solicitation provisions and contract clauses, and to include
the full text of each clause alternate.
The use of automated contract writing systems will be facilitated
by having unique prescriptions for the basic version and each alternate
of DFARS solicitations provisions and clauses. The current convention
requires the prescription for the basic provision or clause to address
all the possibilities covered by the alternates, and then the
prescription for each alternate addresses only what is different for
the use of that particular alternate. This rule will revise the
prescriptions so that the basic solicitation provision or clause and
each alternate is unique and stands on its own. The prescriptions will
not be revised in any way to change when they are applicable to
offerors, contractors, or subcontractors.
Additionally, the inclusion of the full text of each provision or
clause alternate aims to make the terms of a provision or clause
alternate clearer to offerors, as well as to DoD contracting officers.
Instead of the current convention for alternates to show only
paragraphs changed from the basic version of the provision or clause,
this rule proposes to include the full text of each version of the
clause. This will assist in making the terms of the clause clearer,
because all paragraph substitutions will have already been made.
Inapplicable paragraphs from the basic version of the clause that are
superseded by the alternate are not included in the solicitation or
contract to prevent confusion.
Potential offerors, including small businesses, may be affected by
this rule by seeing an unfamiliar format for clause alternates in
solicitations and contracts issued by DoD contracting activities. An
average of 12,618,521 new contracts was awarded in Fiscal Years 2011
and 2012, and an average of 1,557,852 of these actions (12.35%) was
awarded to small businesses. It is unknown how many of these contracts
were awarded that included an alternate to a DFARS provision or clause.
Nothing substantive will change in solicitations or contracts for
potential offerors, and only the appearance of how clause alternates
are presented in the solicitations and contracts will be changed.
This rule may result in potential offerors, including small
businesses, expending more time to become familiar with and to
understand the new format of the clause alternates in full text
contained in contracts issued by any DoD contracting activity. The rule
also anticipates saving contractors time by making all paragraph
substitutions from the basic version of the clause, and not requiring
the contractors to read inapplicable paragraphs contained in the basic
version of the clause where alternates are also included in the
solicitations and contracts. The overall burden caused by this rule is
expected to be negligible and will not be any greater on small
businesses than it is on large businesses.
This rule does not add any new information collection requirements.
The rule does not duplicate, overlap, or conflict with any other
Federal rules. No alternatives were identified that will accomplish the
objectives of the rule.
DoD invites comments from small business concerns and other
interested parties on the expected impact of this rule on small
entities.
DoD will also consider comments from small entities concerning the
existing regulations in subparts affected by this rule in accordance
with 5 U.S.C. 610. Interested parties must submit such comments
separately and should cite 5 U.S.C. 610 (DFARS Case 2013-D014), in
correspondence.
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 232 and 252
Government procurement.
Manuel Quinones,
Editor, Defense Acquisition Regulations System.
Therefore, 48 CFR parts 232 and 252 are proposed to be amended as
follows:
0
1. The authority citation for parts 232 and 252 continues to read as
follows:
Authority: 41 U.S.C. 1303 and 48 CFR Chapter 1.
PART 232--CONTRACT FINANCING
232.704-70 [Amended]
0
2. Amend section 232.704-70 by--
0
a. In paragraph (a), removing ``Limitation of Government's Obligation,
the contracting officer'' and adding ``Limitation of Government's
Obligation--Basic or Limitation of Government's Obligation--Alternate
I, the contracting officer'' in its place.
0
b. In paragraph (c), removing ``Limitation of Government's Obligation,
sufficient funds'' and adding ``Limitation of Government's Obligation--
Basic or Limitation of Government's Obligation--Alternate I, sufficient
funds'' in its place.
[[Page 48406]]
0
3. Revise section 232.705-70 to read as follows:
232.705-70 Clause for limitation of Government's obligation.
Use the basic or the alternate of the clause at 252.232-7007,
Limitation of Government's Obligation, in solicitations and resultant
incrementally funded fixed-price contracts. The contracting officer may
revise the contractor's notification period, in paragraph (c) of the
clause, from ``ninety'' to ``thirty'' or ``sixty'' days, as
appropriate.
(a) Use the clause Limitation of Government's Obligation--Basic, if
more than one line item will be incrementally funded.
(b) Use the clause Limitation of Government's Obligation--Alternate
I, if only one line item will be incrementally funded.
PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
0
4. Revise section 252.232-7007 to read as follows:
252.232-7007 Limitation of Government's Obligation.
As prescribed in 232.705-70, use one of the following clauses:
(a) Limitation of Government's Obligation--Basic. For the specific
prescription for the use of the basic clause, see 232.705-70(a).
LIMITATION OF GOVERNMENT'S OBLIGATION--BASIC (DATE)
(a) Contract line item(s) ---------- through ---------- are
incrementally funded. For these item(s), the sum of $---------- of
the total price is presently available for payment and allotted to
this contract. An allotment schedule is set forth in paragraph (j)
of this clause.
(b) For item(s) identified in paragraph (a) of this clause, the
Contractor agrees to perform up to the point at which the total
amount payable by the Government, including reimbursement in the
event of termination of those item(s) for the Government's
convenience, approximates the total amount currently allotted to the
contract. The Contractor is not authorized to continue work on those
item(s) beyond that point. The Government will not be obligated in
any event to reimburse the Contractor in excess of the amount
allotted to the contract for those item(s) regardless of anything to
the contrary in the clause entitled ``Termination for Convenience of
the Government.'' As used in this clause, the total amount payable
by the Government in the event of termination of applicable contract
line item(s) for convenience includes costs, profit, and estimated
termination settlement costs for those item(s).
(c) Notwithstanding the dates specified in the allotment
schedule in paragraph (j) of this clause, the Contractor will notify
the Contracting Officer in writing at least ninety days prior to the
date when, in the Contractor's best judgment, the work will reach
the point at which the total amount payable by the Government,
including any cost for termination for convenience, will approximate
85 percent of the total amount then allotted to the contract for
performance of the applicable item(s). The notification will state
(1) the estimated date when that point will be reached and (2) an
estimate of additional funding, if any, needed to continue
performance of applicable line items up to the next scheduled date
for allotment of funds identified in paragraph (j) of this clause,
or to a mutually agreed upon substitute date. The notification will
also advise the Contracting Officer of the estimated amount of
additional funds that will be required for the timely performance of
the item(s) funded pursuant to this clause, for a subsequent period
as may be specified in the allotment schedule in paragraph (j) of
this clause or otherwise agreed to by the parties. If after such
notification additional funds are not allotted by the date
identified in the Contractor's notification, or by an agreed
substitute date, the Contracting Officer will terminate any item(s)
for which additional funds have not been allotted, pursuant to the
clause of this contract entitled ``Termination for Convenience of
the Government.''
(d) When additional funds are allotted for continued performance
of the contract line item(s) identified in paragraph (a) of this
clause, the parties will agree as to the period of contract
performance which will be covered by the funds. The provisions of
paragraphs (b) through (d) of this clause will apply in like manner
to the additional allotted funds and agreed substitute date, and the
contract will be modified accordingly.
(e) If, solely by reason of failure of the Government to allot
additional funds, by the dates indicated below, in amounts
sufficient for timely performance of the contract line item(s)
identified in paragraph (a) of this clause, the Contractor incurs
additional costs or is delayed in the performance of the work under
this contract and if additional funds are allotted, an equitable
adjustment will be made in the price or prices (including
appropriate target, billing, and ceiling prices where applicable) of
the item(s), or in the time of delivery, or both. Failure to agree
to any such equitable adjustment hereunder will be a dispute
concerning a question of fact within the meaning of the clause
entitled ``Disputes.''
(f) The Government may at any time prior to termination allot
additional funds for the performance of the contract line item(s)
identified in paragraph (a) of this clause.
(g) The termination provisions of this clause do not limit the
rights of the Government under the clause entitled ``Default.'' The
provisions of this clause are limited to the work and allotment of
funds for the contract line item(s) set forth in paragraph (a) of
this clause. This clause no longer applies once the contract is
fully funded except with regard to the rights or obligations of the
parties concerning equitable adjustments negotiated under paragraphs
(d) and (e) of this clause.
(h) Nothing in this clause affects the right of the Government
to terminate this contract pursuant to the clause of this contract
entitled ``Termination for Convenience of the Government.''
(i) Nothing in this clause shall be construed as authorization
of voluntary services whose acceptance is otherwise prohibited under
31 U.S.C. 1342.
(j) The parties contemplate that the Government will allot funds
to this contract in accordance with the following schedule:
On execution of contract.................. $----------
(month) (day), (year)..................... $----------
(month) (day), (year)..................... $----------
(month) (day), (year)..................... $----------
(End of clause)
(b) Limitation of Government's Obligation--Alternate I. For the
specific prescription for the use of Alternate I, see 232.705-70(b).
Alternate I uses a different paragraph (a) than the basic clause.
LIMITATION OF GOVERNMENT'S OBLIGATION--ALTERNATE I (DATE)
(a) Contract line item ---------- is incrementally funded. The
sum of $---------- is presently available for payment and allotted
to this contract. An allotment schedule is contained in paragraph
(j) of this clause.
(b) For item(s) identified in paragraph (a) of this clause, the
Contractor agrees to perform up to the point at which the total
amount payable by the Government, including reimbursement in the
event of termination of those item(s) for the Government's
convenience, approximates the total amount currently allotted to the
contract. The Contractor is not authorized to continue work on those
item(s) beyond that point. The Government will not be obligated in
any event to reimburse the Contractor in excess of the amount
allotted to the contract for those item(s) regardless of anything to
the contrary in the clause entitled ``Termination for Convenience of
the Government.'' As used in this clause, the total amount payable
by the Government in the event of termination of applicable contract
line item(s) for convenience includes costs, profit, and estimated
termination settlement costs for those item(s).
(c) Notwithstanding the dates specified in the allotment
schedule in paragraph (j) of this clause, the Contractor will notify
the Contracting Officer in writing at least ninety days prior to the
date when, in the Contractor's best judgment, the work will reach
the point at which the total amount payable by the Government,
including any cost for termination for convenience, will approximate
85 percent of the total amount then allotted to the contract for
performance of the applicable item(s). The notification will state
the estimated date when that point will be reached and an estimate
of additional funding, if any, needed to continue performance of
applicable line items up to the next scheduled date for allotment of
funds identified in paragraph (j) of this clause, or to a mutually
agreed upon substitute date. The notification will also advise the
Contracting Officer of the
[[Page 48407]]
estimated amount of additional funds that will be required for the
timely performance of the item(s) funded pursuant to this clause,
for a subsequent period as may be specified in the allotment
schedule in paragraph (j) of this clause or otherwise agreed to by
the parties. If after such notification additional funds are not
allotted by the date identified in the Contractor's notification, or
by an agreed substitute date, the Contracting Officer will terminate
any item(s) for which additional funds have not been allotted,
pursuant to the clause of this contract entitled ``Termination for
Convenience of the Government.''
(d) When additional funds are allotted for continued performance
of the contract line item(s) identified in paragraph (a) of this
clause, the parties will agree as to the period of contract
performance which will be covered by the funds. The provisions of
paragraphs (b) through (d) of this clause will apply in like manner
to the additional allotted funds and agreed substitute date, and the
contract will be modified accordingly.
(e) If, solely by reason of failure of the Government to allot
additional funds, by the dates indicated below, in amounts
sufficient for timely performance of the contract line item(s)
identified in paragraph (a) of this clause, the Contractor incurs
additional costs or is delayed in the performance of the work under
this contract and if additional funds are allotted, an equitable
adjustment will be made in the price or prices (including
appropriate target, billing, and ceiling prices where applicable) of
the item(s), or in the time of delivery, or both. Failure to agree
to any such equitable adjustment hereunder will be a dispute
concerning a question of fact within the meaning of the clause
entitled ``Disputes.''
(f) The Government may at any time prior to termination allot
additional funds for the performance of the contract line item(s)
identified in paragraph (a) of this clause.
(g) The termination provisions of this clause do not limit the
rights of the Government under the clause entitled ``Default.'' The
provisions of this clause are limited to the work and allotment of
funds for the contract line item(s) set forth in paragraph (a) of
this clause. This clause no longer applies once the contract is
fully funded except with regard to the rights or obligations of the
parties concerning equitable adjustments negotiated under paragraphs
(d) and (e) of this clause.
(h) Nothing in this clause affects the right of the Government
to terminate this contract pursuant to the clause of this contract
entitled ``Termination for Convenience of the Government.''
(i) Nothing in this clause shall be construed as authorization
of voluntary services whose acceptance is otherwise prohibited under
31 U.S.C. 1342.
(j) The parties contemplate that the Government will allot funds
to this contract in accordance with the following schedule:
On execution of contract.................. $----------
(month) (day), (year)..................... $----------
(month) (day), (year)..................... $----------
(month) (day), (year)..................... $----------
(End of clause)
* To be inserted after negotiation.
[FR Doc. 2013-18976 Filed 8-7-13; 8:45 am]
BILLING CODE 5001-06-P