Defense Federal Acquisition Regulation Supplement; Payment in Local Currency (Afghanistan) (DFARS Case 2013-D029), 58694-58696 [2014-22861]
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58694
Federal Register / Vol. 79, No. 189 / Tuesday, September 30, 2014 / Rules and Regulations
SUPPLEMENTARY INFORMATION:
tkelley on DSK3SPTVN1PROD with RULES
I. Background
DoD published an interim rule at 79
FR 4631 on January 29, 2014, to
implement section 811 of the National
Defense Authorization Act (NDAA) for
Fiscal Year (FY) 2013 (Pub. L. 112–239),
which was enacted January 2, 2013.
Two comments were submitted on the
interim rule.
Section 811(a) instructs DoD to
modify the acquisition regulations to
prohibit DoD from entering into costtype contracts for the production of
major defense acquisition programs
(MDAPs) for contracts entered into on or
after October 1, 2014, with one
exception in section 811(b). Under
section 811(b), the Under Secretary of
Defense for Acquisition, Technology,
and Logistics may submit to the
congressional defense committees: (1) A
written certification that the particular
cost-type contract is needed to provide
a required capability in a timely, costeffective manner; and (2) An
explanation of the steps taken to ensure
that the use of cost-type pricing is
limited to only those line items or
portions of the contract where such
pricing is needed to achieve the purpose
of the exception. In implementing
section 811 of the NDAA for FY 2013,
DoD further defined the prohibition on
entering into cost-type contracts to
explicitly state the prohibition also
applies to entering into costreimbursement line items for the
production of MDAPs.
II. Discussion and Analysis
DoD reviewed the public comments in
the development of the final rule. A
discussion of the comments and the
changes made to the rule as a result of
those comments is provided as follows:
Comment: The respondent stated that
the term ‘‘cost-type reimbursement
contract’’ at DFARS 234.004(2)(i)(C) was
ambiguous and recommended that the
term ‘‘cost-reimbursement contract’’ be
used instead to maintain consistency
with other references within the
acquisition regulations.
Response: The text at DFARS
234.004(2)(i)(C) has been revised to
replace the term ‘‘cost-type
reimbursement contract’’ with ‘‘costreimbursement type contract.’’
Comment: The respondent stated that
the reference to DFARS 201.101 within
Section II, Discussion and Analysis, of
the Federal Register Notice published
for the proposed rule should be DFARS
202.101.
Response: The respondent is correct.
However, the comment did not
necessitate changes to the interim rule
VerDate Sep<11>2014
16:10 Sep 29, 2014
Jkt 232001
as the rule itself cited DFARS 202.101
accurately.
would meet the requirements of the
statute.
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.
V. Paperwork Reduction Act
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 amends the DFARS to
implement section 811 of the NDAA for
FY 2013, which prohibits the DoD from
entering into cost-type contracts for the
production of major defense acquisition
programs (MDAPs) unless the Under
Secretary of Defense for Acquisition,
Technology, and Logistics submits an
exception to the congressional defense
committees. In implementing section
811 of the NDAA for FY 2013, DoD
further defined the prohibition on
entering into cost-type contracts to
explicitly state the prohibition also
applies to entering into costreimbursement line items for the
production of MDAPs.
Small entities do not have or are
exempt from having the complex,
expensive business and management
systems required to manage the
complex, higher risk, and expensive
major defense acquisition programs
(MDAPs). Small entities do play a
significant role in performing as
subcontractors and component
manufacturers for MDAPs, but this rule
does not apply to subcontractors and
component manufacturers.
No comments were received from the
public in response to the initial
regulatory flexibility analysis.
This rule does not impose new
recordkeeping or reporting requirements
and does not duplicate, overlap, or
conflict with any other Federal rules.
There are no known significant
alternative approaches to the rule that
PO 00000
Frm 00040
Fmt 4700
Sfmt 4700
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 202,
207, 209, 216, and 234
Government procurement.
Manuel Quinones,
Editor, Defense Acquisition Regulations
System.
Therefore, DoD adopts as final the
interim rule published at 79 FR 4631 on
January 29, 2014, with the following
changes:
PART 234—MAJOR SYSTEM
ACQUISITION
1. The authority citation for part 234
continues to read as follows:
■
Authority: 41 U.S.C. 1303 and 48 CFR
Chapter 1.
234.004
[Amended]
2. Section 234.004(2)(i)(C)
introductory text is amended by
removing ‘‘cost-type reimbursement
contact’’ and adding ‘‘costreimbursement type contract’’ in its
place.
■
[FR Doc. 2014–22858 Filed 9–29–14; 8:45 am]
BILLING CODE 5001–06–P
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations
System
48 CFR Parts 212, 225, 232, and 252
RIN 0750–AI14
Defense Federal Acquisition
Regulation Supplement; Payment in
Local Currency (Afghanistan) (DFARS
Case 2013–D029)
Defense Acquisition
Regulations System, Department of
Defense (DoD).
ACTION: Final rule.
AGENCY:
DoD is issuing a final rule
amending the Defense Federal
Acquisition Regulation Supplement
(DFARS) to incorporate into the DFARS
policies and procedures concerning
payment for contracts for performance
in Afghanistan.
DATES: Effective September 30, 2014.
SUMMARY:
E:\FR\FM\30SER1.SGM
30SER1
Federal Register / Vol. 79, No. 189 / Tuesday, September 30, 2014 / Rules and Regulations
Ms.
Jennifer Hawes, telephone 571–372–
6115.
SUPPLEMENTARY INFORMATION:
rule is not a major rule under 5 U.S.C.
804.
I. Background
DoD published a proposed rule in the
Federal Register at 79 FR 4647 on
January 29, 2014, to amend the DFARS
to provide policy and procedures at
DFARS 212.301 and 232.72 on the use
of a new solicitation provision at
252.232–7014, Notification of Payment
in Local Currency (Afghanistan). This
provision provides notification that the
payment currency to be used for
contracts for performance in
Afghanistan shall be dependent on the
nationality of the vendor. Two
respondents submitted public
comments in response to the proposed
rule.
A final regulatory flexibility analysis
has been prepared consistent with the
Regulatory Flexibility Act, 5 U.S.C. 601,
et seq., and is summarized as follows:
This final rule amends the DFARS by
incorporating policies and procedures at
DFARS 212.301 and 232.72 on the use
of a new DFARS solicitation provision
252.232–7014, Notification of Payment
in Local Currency (Afghanistan). This
rule implements the payment currency
procedures contained in the U.S.
Central Command’s Fragmentary Orders
09–1567 and 10–143. The provision
provides notification that the payment
currency to be used for contracts for
performance in Afghanistan shall be
dependent on the nationality of the
vendor. Additionally, DFARS 225.7703–
1 provides direction to contracting
officers to follow the procedures at
DFARS Procedures, Guidance, and
Information 225.7703–1(c) when issuing
solicitations and contracts for
performance in Afghanistan.
No comments were received from the
public in response to the initial
regulatory flexibility analysis. DoD does
not expect this rule to have an economic
impact on a substantial number of small
entities because this rule merely
provides requirements for payments to
host nation vendors for performance in
Afghanistan.
This rule does not add any new
information collection, reporting, or
recordkeeping requirements. No
alternatives were identified that will
accomplish the objectives of the rule.
FOR FURTHER INFORMATION CONTACT:
tkelley on DSK3SPTVN1PROD with RULES
II. Discussion and Analysis
DoD reviewed the public comments in
development of the final rule. One
minor change is made to the final rule
as a result of one of the comments. A
discussion of the comments is provided
below.
Comment: The respondent stated that
if the U.S. Government solicited the use
of security forces in Afghanistan, any
resulting contract would be required to
be awarded to the Afghan Public
Protection Force (APPF) and use APPF
procurement terms.
Response: This comment is outside
the scope of this final rule. The rule
only addresses contracts awarded to
vendors and not state-owned Afghani
governmental entities for the provision
of security services.
Comment: The respondent noted that
section 212.301(f)(lii) referred to
252.232–70XX as a clause rather than a
provision.
Response: The final rule correctly
refers to 252.232–7014 as a provision.
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
VerDate Sep<11>2014
16:10 Sep 29, 2014
Jkt 232001
IV. Regulatory Flexibility Act
List of Subjects in 48 CFR Parts 212,
225, 232, and 252
Government procurement.
Manuel Quinones,
Editor, Defense Acquisition Regulations
System.
Therefore, 48 CFR parts 212, 225, 232,
and 252 are amended as follows:
1. The authority citation for parts 212,
225, 232, and 252 continues to read as
follows:
■
Authority: 41 U.S.C. 1303 and 48 CFR
Chapter 1.
Fmt 4700
Sfmt 4700
2. Amend section 212.301 by
redesignating paragraphs (f)(lviii)
through (lxxiii) as (f)(lix) through (lxxiv)
and adding a new paragraph (f)(lviii) to
read as follows:
212.301 Solicitation provisions and
contract clauses for the acquisition of
commercial items.
(f) * * *
(lviii) Use the provision at 252.232–
7014, Notification of Payment in Local
Currency (Afghanistan), as prescribed in
232.7202.
*
*
*
*
*
PART 225—FOREIGN ACQUISITIONS
3. Amend section 225.7703–1 by
adding paragraph (c) to read as follows:
■
225.7703–1
Acquisition procedures.
*
*
*
*
*
(c) When issuing solicitations and
contracts for performance in
Afghanistan, follow the procedures at
PGI 225.7703–1(c).
PART 232—CONTRACT FINANCING
4. Add subpart 232.72 to read as
follows:
■
Subpart 232.72—Payment in Local Currency
(Afghanistan)
Sec.
232.7200 Scope of subpart.
232.7201 Policy and procedures.
232.7202 Solicitation provision.
SUBPART 232.72—PAYMENT IN
LOCAL CURRENCY (AFGHANISTAN)
232.7200
The rule does not contain 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).
Frm 00041
PART 212—ACQUISITION OF
COMMERCIAL ITEMS
■
V. Paperwork Reduction Act
PO 00000
58695
Scope of subpart.
This subpart prescribes policies and
procedures concerning the payment of
contracts for performance in
Afghanistan.
232.7201
Policy and procedures.
Payment currency used for contracts
performed in Afghanistan shall be
dependent on the nationality of the
vendor pursuant to the authority of
USCENTCOM Fragmentary Orders
(FRAGOs) 09–1567 and 10–143. If the
contract is awarded to a host nation
vendor (Afghan), the contractor will be
paid in Afghani (local currency) via
electronic funds transfer to a local
(Afghan) banking institution. Contracts
shall not be awarded to host nation
vendors who do not bank locally. If
awarded to other than a host nation
vendor, the contract will be awarded in
U.S. dollars.
E:\FR\FM\30SER1.SGM
30SER1
58696
232.7202
Federal Register / Vol. 79, No. 189 / Tuesday, September 30, 2014 / Rules and Regulations
Solicitation provision.
DEPARTMENT OF DEFENSE
Use the provision at 252.232–7014,
Notification of Payment in Local
Currency (Afghanistan), in all
solicitations, including solicitations
using FAR part 12 procedures for the
acquisition of commercial items, for
performance in Afghanistan.
Defense Acquisition Regulations
System
48 CFR Part 217
RIN 0750–AI35
Defense Federal Acquisition
Regulation Supplement: Contract
Period for Task and Delivery Order
Contracts—Deletion of Congressional
Reporting Requirement (DFARS Case
2014–D018)
PART 252—SOLICITATION
PROVISIONS AND CONTRACT
CLAUSES
5. Add section 252.232–7014 to read
as follows:
■
Defense Acquisition
Regulations System, Department of
Defense (DoD).
ACTION: Final rule.
AGENCY:
252.232–7014 Notification of Payment in
Local Currency (Afghanistan).
As prescribed in 232.7202, use the
following provision:
tkelley on DSK3SPTVN1PROD with RULES
NOTIFICATION OF PAYMENT IN
LOCAL CURRENCY (AFGHANISTAN)
(SEP 2014)
(a) The contract resulting from this
solicitation will be paid in Afghani (local
currency) if the contract is awarded to a host
nation vendor (Afghan), pursuant to the
authority of USCENTCOM Fragmentary
Order (FRAGO) 09–1567 and FRAGO 10–
143. Contract payment will be made in
Afghani (local currency) via electronic funds
transfer (EFT) to a local (Afghan) banking
institution, unless an exception in paragraph
(c) applies. Contracts shall not be awarded to
host nation vendors who do not bank locally.
If award is made to other than a host nation
vendor, the contract will be awarded in U.S.
dollars.
(b) Vendors shall submit quotations and
offers in U.S. dollars. If the contract is
awarded to an Afghan vendor, the quotation
or offer will be converted to Afghani using
a Government budget rate of [Insert current
budget rate here.] Afghani per U.S. dollar.
(c) By exception, the following forms of
payment are acceptable, in the following
order of priority, when the local finance
office determines that EFT using ITS.gov is
not available:
(1) EFT using Limited Depository Account
(LDA).
(2) Check from the local finance office
LDA.
(3) Local currency cash payments in
Afghani (must be approved in writing by the
local finance office and contracting office
prior to contract award). Payments in cash
are restricted to contracts when—
(i) The vendor provides proof via a letter
from the host nation banking institution that
it is not EFT capable; and
(ii) The local finance office validates that
the vendor’s banking institution is not EFT
capable. Cash payments will be made in
Afghani.
(End of provision)
[FR Doc. 2014–22861 Filed 9–29–14; 8:45 am]
BILLING CODE 5001–06–P
VerDate Sep<11>2014
17:57 Sep 29, 2014
Jkt 232001
DoD is issuing a final rule
amending the Defense Federal
Acquisition Regulation Supplement
(DFARS) to delete an obsolete
congressional reporting requirement.
DATES: Effective September 30, 2014.
FOR FURTHER INFORMATION CONTACT: Ms.
Janetta Brewer, telephone 571–372–
6104.
SUMMARY:
SUPPLEMENTARY INFORMATION:
I. Background
On December 9, 2005, the DFARS was
amended to implement section 813 of
the National Defense Authorization Act
for Fiscal Year 2005 (Pub. L. 108–375),
which required the Secretary of Defense
to submit to Congress a report setting
forth when an ordering period of a task
or delivery order contract awarded
pursuant to section 2304(a) of title 10,
United States Code, was extended
beyond ten years. The reporting
requirement applied to fiscal years 2005
through 2009.
congressional reporting requirement
imposed on DoD. 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.
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 217
Government procurement.
II. Publication of This Final Rule for
Public Comment Is Not Required by
Statute
Manuel Quinones,
Editor, Defense Acquisition Regulations
System.
‘‘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 it deletes an obsolete
Therefore, 48 CFR part 217 is
amended as follows:
PO 00000
Frm 00042
Fmt 4700
Sfmt 4700
PART 217—SPECIAL CONTRACTING
METHODS
1. The authority citation for 48 CFR
part 217 continues to read as follows:
■
Authority: 41 U.S.C. 1303 and 48 CFR
chapter 1.
217.204
[Amended]
2. Amend section 217.204 by
removing paragraph (e)(ii) and
redesignating paragraphs (e)(iii) and (iv)
as paragraphs (e)(ii) and (iii),
respectively.
■
[FR Doc. 2014–22862 Filed 9–29–14; 8:45 am]
BILLING CODE 5001–06–P
E:\FR\FM\30SER1.SGM
30SER1
]]>Agencies
[Federal Register Volume 79, Number 189 (Tuesday, September 30, 2014)]
[Rules and Regulations]
[Pages 58694-58696]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-22861]
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System
48 CFR Parts 212, 225, 232, and 252
RIN 0750-AI14
Defense Federal Acquisition Regulation Supplement; Payment in
Local Currency (Afghanistan) (DFARS Case 2013-D029)
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 incorporate into the DFARS
policies and procedures concerning payment for contracts for
performance in Afghanistan.
DATES: Effective September 30, 2014.
[[Page 58695]]
FOR FURTHER INFORMATION CONTACT: Ms. Jennifer Hawes, telephone 571-372-
6115.
SUPPLEMENTARY INFORMATION:
I. Background
DoD published a proposed rule in the Federal Register at 79 FR 4647
on January 29, 2014, to amend the DFARS to provide policy and
procedures at DFARS 212.301 and 232.72 on the use of a new solicitation
provision at 252.232-7014, Notification of Payment in Local Currency
(Afghanistan). This provision provides notification that the payment
currency to be used for contracts for performance in Afghanistan shall
be dependent on the nationality of the vendor. Two respondents
submitted public comments in response to the proposed rule.
II. Discussion and Analysis
DoD reviewed the public comments in development of the final rule.
One minor change is made to the final rule as a result of one of the
comments. A discussion of the comments is provided below.
Comment: The respondent stated that if the U.S. Government
solicited the use of security forces in Afghanistan, any resulting
contract would be required to be awarded to the Afghan Public
Protection Force (APPF) and use APPF procurement terms.
Response: This comment is outside the scope of this final rule. The
rule only addresses contracts awarded to vendors and not state-owned
Afghani governmental entities for the provision of security services.
Comment: The respondent noted that section 212.301(f)(lii) referred
to 252.232-70XX as a clause rather than a provision.
Response: The final rule correctly refers to 252.232-7014 as a
provision.
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
A final regulatory flexibility analysis has been prepared
consistent with the Regulatory Flexibility Act, 5 U.S.C. 601, et seq.,
and is summarized as follows:
This final rule amends the DFARS by incorporating policies and
procedures at DFARS 212.301 and 232.72 on the use of a new DFARS
solicitation provision 252.232-7014, Notification of Payment in Local
Currency (Afghanistan). This rule implements the payment currency
procedures contained in the U.S. Central Command's Fragmentary Orders
09-1567 and 10-143. The provision provides notification that the
payment currency to be used for contracts for performance in
Afghanistan shall be dependent on the nationality of the vendor.
Additionally, DFARS 225.7703-1 provides direction to contracting
officers to follow the procedures at DFARS Procedures, Guidance, and
Information 225.7703-1(c) when issuing solicitations and contracts for
performance in Afghanistan.
No comments were received from the public in response to the
initial regulatory flexibility analysis. DoD does not expect this rule
to have an economic impact on a substantial number of small entities
because this rule merely provides requirements for payments to host
nation vendors for performance in Afghanistan.
This rule does not add any new information collection, reporting,
or recordkeeping requirements. No alternatives were identified that
will accomplish the objectives of the rule.
V. Paperwork Reduction Act
The rule does not contain 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 212, 225, 232, and 252
Government procurement.
Manuel Quinones,
Editor, Defense Acquisition Regulations System.
Therefore, 48 CFR parts 212, 225, 232, and 252 are amended as
follows:
0
1. The authority citation for parts 212, 225, 232, and 252 continues to
read as follows:
Authority: 41 U.S.C. 1303 and 48 CFR Chapter 1.
PART 212--ACQUISITION OF COMMERCIAL ITEMS
0
2. Amend section 212.301 by redesignating paragraphs (f)(lviii) through
(lxxiii) as (f)(lix) through (lxxiv) and adding a new paragraph
(f)(lviii) to read as follows:
212.301 Solicitation provisions and contract clauses for the
acquisition of commercial items.
(f) * * *
(lviii) Use the provision at 252.232-7014, Notification of Payment
in Local Currency (Afghanistan), as prescribed in 232.7202.
* * * * *
PART 225--FOREIGN ACQUISITIONS
0
3. Amend section 225.7703-1 by adding paragraph (c) to read as follows:
225.7703-1 Acquisition procedures.
* * * * *
(c) When issuing solicitations and contracts for performance in
Afghanistan, follow the procedures at PGI 225.7703-1(c).
PART 232--CONTRACT FINANCING
0
4. Add subpart 232.72 to read as follows:
Subpart 232.72--Payment in Local Currency (Afghanistan)
Sec.
232.7200 Scope of subpart.
232.7201 Policy and procedures.
232.7202 Solicitation provision.
SUBPART 232.72--PAYMENT IN LOCAL CURRENCY (AFGHANISTAN)
232.7200 Scope of subpart.
This subpart prescribes policies and procedures concerning the
payment of contracts for performance in Afghanistan.
232.7201 Policy and procedures.
Payment currency used for contracts performed in Afghanistan shall
be dependent on the nationality of the vendor pursuant to the authority
of USCENTCOM Fragmentary Orders (FRAGOs) 09-1567 and 10-143. If the
contract is awarded to a host nation vendor (Afghan), the contractor
will be paid in Afghani (local currency) via electronic funds transfer
to a local (Afghan) banking institution. Contracts shall not be awarded
to host nation vendors who do not bank locally. If awarded to other
than a host nation vendor, the contract will be awarded in U.S.
dollars.
[[Page 58696]]
232.7202 Solicitation provision.
Use the provision at 252.232-7014, Notification of Payment in Local
Currency (Afghanistan), in all solicitations, including solicitations
using FAR part 12 procedures for the acquisition of commercial items,
for performance in Afghanistan.
PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
0
5. Add section 252.232-7014 to read as follows:
252.232-7014 Notification of Payment in Local Currency (Afghanistan).
As prescribed in 232.7202, use the following provision:
NOTIFICATION OF PAYMENT IN LOCAL CURRENCY (AFGHANISTAN) (SEP 2014)
(a) The contract resulting from this solicitation will be paid
in Afghani (local currency) if the contract is awarded to a host
nation vendor (Afghan), pursuant to the authority of USCENTCOM
Fragmentary Order (FRAGO) 09-1567 and FRAGO 10-143. Contract payment
will be made in Afghani (local currency) via electronic funds
transfer (EFT) to a local (Afghan) banking institution, unless an
exception in paragraph (c) applies. Contracts shall not be awarded
to host nation vendors who do not bank locally. If award is made to
other than a host nation vendor, the contract will be awarded in
U.S. dollars.
(b) Vendors shall submit quotations and offers in U.S. dollars.
If the contract is awarded to an Afghan vendor, the quotation or
offer will be converted to Afghani using a Government budget rate of
[Insert current budget rate here.] Afghani per U.S. dollar.
(c) By exception, the following forms of payment are acceptable,
in the following order of priority, when the local finance office
determines that EFT using ITS.gov is not available:
(1) EFT using Limited Depository Account (LDA).
(2) Check from the local finance office LDA.
(3) Local currency cash payments in Afghani (must be approved in
writing by the local finance office and contracting office prior to
contract award). Payments in cash are restricted to contracts when--
(i) The vendor provides proof via a letter from the host nation
banking institution that it is not EFT capable; and
(ii) The local finance office validates that the vendor's
banking institution is not EFT capable. Cash payments will be made
in Afghani.
(End of provision)
[FR Doc. 2014-22861 Filed 9-29-14; 8:45 am]
BILLING CODE 5001-06-P
