Defense Federal Acquisition Regulation: Ocean Transportation by U.S.-Flag Vessels (DFARS Case 2014-D012), 61583-61584 [2014-24401]
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Federal Register / Vol. 79, No. 198 / Tuesday, October 14, 2014 / Rules and Regulations
252.232–7004
Rates.
DoD Progress Payment
As prescribed in 232.502–4–70(b), use
the following clause:
DOD PROGRESS PAYMENT RATES
(OCT 2014)
If the Contractor is a small business
concern, the Progress Payments clause of this
contract is modified to change each mention
of the progress payment rate and liquidations
rate (excepting paragraph (k), Limitations on
Undefinitized Contract Actions) to 90
percent.
(End of clause)
25. Amend Appendix I to Chapter 2
by:
■ a. Revising section I–101.5(a.)
■ b. Amending section I–112.1 by
removing paragraph (c).
The revision reads as follows:
■
Appendix I to Chapter 2—Policy and
Procedures for the DoD Pilot MentorProtege Program
*
*
*
*
*
I–101.5 * * *
(a) An SDB concern as defined in 13 CFR
124.1002;
*
*
*
*
*
[FR Doc. 2014–24225 Filed 10–10–14; 8:45 am]
BILLING CODE 5001–06–P
DEPARTMENT OF DEFENSE
Defense Acquisition Regulation
System
48 CFR Part 247
RIN 0750–AI38
Defense Federal Acquisition
Regulation: Ocean Transportation by
U.S.-Flag Vessels (DFARS Case 2014–
D012)
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 remove text regarding
contracting officer responsibilities,
when purchasing ocean transportation
services, that are procedural in nature.
DATES: Effective October 14, 2014.
FOR FURTHER INFORMATION CONTACT: Ms.
Veronica Fallon, telephone 571–372–
6098.
mstockstill on DSK4VPTVN1PROD with RULES
SUMMARY:
SUPPLEMENTARY INFORMATION:
I. Discussion
DoD is revising DFARS 247.572 and
247.573 to include a statement of
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16:04 Oct 10, 2014
Jkt 235001
delegated authority and to remove
guidance that is internal to DoD
concerning procedures contracting
officers must follow when purchasing
ocean transportation services. The
internal DoD guidance removed from
DFARS will be addressed in revised
DFARS Procedures, Guidance and
Information (PGI) 247.573.
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 the change is not substantive
and only modifies the internal operating
procedures of DoD.
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). EO 13563 emphasizes the
importance of quantifying both costs
and benefits, of reducing costs, or
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
This rule does not contain any
information collection requirements that
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Fmt 4700
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61583
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 247
Government procurement.
Manuel Quinones,
Editor, Defense Acquisition Regulations
System.
Therefore, 48 CFR part 247 is
amended as follows:
PART 247—TRANSPORTATION
1. The authority citation for 48 CFR
part 247 continues to read as follows:
■
Authority: 41 U.S.C. 1303 and 48 CFR
chapter 1.
2. Section 247.572 paragraph (a) is
revised to read as follows:
■
247.572
Policy.
(a) In accordance with 10 U.S.C.
2631(a), DoD contractors shall transport
supplies, as defined in the clause at
252.247–7023, Transportation of
Supplies by Sea, exclusively on U.S.flag vessels unless—
(1) Those vessels are not available;
(2) The proposed charges to the
Government are higher than charges to
private persons for the transportation of
like goods; or
(3) The proposed freight charges are
excessive or unreasonable.
*
*
*
*
*
■ 3. Section 247.573 heading is revised
and new text added to read as follows:
247.573
General.
(a) Delegated authority. Pursuant to
10 U.S.C. 2631(a) and Secretary of
Defense Memorandum dated February
7, 2012, (see PGI 245.573) the authority
to make determinations of excessive
ocean liner rates and excessive charter
rates is delegated to—
(1) The Commander, United States
Transportation Command, for excessive
ocean liner rate determinations; and
(2) The Secretary of the Navy for
excessive charter rate determinations.
(b) Procedures. (1) Contracting officers
shall follow the procedures at PGI
247.573(b)(1) when purchase of ocean
transportation services is incidental to a
contract for supplies, services, or
construction.
(2) Contracting officers shall follow
the procedures at PGI 247.573(b)(2)
when direct purchase of ocean
transportation services is the principal
purpose of the contract.
(3) Agency and department
procedures relating to annual reporting
requirements of information received
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Federal Register / Vol. 79, No. 198 / Tuesday, October 14, 2014 / Rules and Regulations
5. Section 247.574 is amended by—
a. In paragraph (e), removing the last
two sentences; and
■ b. In paragraph (f), removing the last
sentence.
Metals.’’ In order to prevent
misinterpretation of the current
flowdown requirement to insert the
‘‘substance of the clause’’ in
subcontracts, the flowdown requirement
has been rewritten to specify that the
only modifications allowed when
flowing down the clause are as follows:
• Exclude and reserve paragraph (d)
of the clause.
• Modify paragraph (c)(6) of the
clause only as necessary to facilitate
management of the allowance for up to
2 percent otherwise noncompliant
specialty metal content in the end
product, while recognizing that the
minimal content exception does not
apply to specialty metals contained in
high-performance magnets.
• Not further alter the clause, other
than to identify the appropriate parties.
One respondent submitted public
comments in response to the proposed
rule.
[FR Doc. 2014–24401 Filed 10–10–14; 8:45 am]
II. Discussion and Analysis
BILLING CODE 5001–06–P
DoD reviewed the public comments in
the development of the final rule. No
changes were made to the rule as a
result of those comments.
Comment: The respondent noted that
the proposed clarification may well be
necessary and welcomed DoD’s
willingness to minimize
misinterpretations of laws and
regulations.
Response: Noted.
Comment: The respondent expressed
concern about the number of national
security waivers issued to accept
noncompliant specialty metals from
China and other noncompliant sources.
Response: The granting of national
security waivers is outside the scope of
this case.
from offerors in response to solicitation
provision 252.247–7026, Evaluation
Preference for Use of Domestic
Shipyards—Applicable to Acquisition
of Carriage by Vessel for DoD Cargo in
the Coastwise of Noncontiguous Trade,
are found at PGI 247.573(b)(3).
(4) Procedures are provided at PGI
247.573(b)(4) to accomplish security
background checks pursuant to clause
252.247–7027, Riding Gang Member
Requirements.
247.573–1, 247.573–2 and 247.573–3
[Removed]
4. Remove sections 247.573–1,
247.573–2, and 247.573–3.
■
247.574
[Amended]
■
■
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations
System
48 CFR Part 252
RIN 0750–AI30
Defense Federal Acquisition
Regulation Supplement: Flowdown of
Specialty Metals Restrictions (DFARS
Case 2014–D011)
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 clarify the flowdown
requirements for the DFARS clause
entitled ‘‘Restriction on Acquisition of
Certain Articles Containing Specialty
Metals.’’
SUMMARY:
DATES:
Effective October 14, 2014.
Ms.
Amy G. Williams, telephone 571–372–
6106.
FOR FURTHER INFORMATION CONTACT:
mstockstill on DSK4VPTVN1PROD with RULES
SUPPLEMENTARY INFORMATION:
I. Background
DoD published a proposed rule in the
Federal Register at 79 FR 35507 on June
23, 2014, to clarify the flowdown
requirements for the DFARS clause
entitled ‘‘Restriction on Acquisition of
Certain Articles Containing Specialty
VerDate Sep<11>2014
16:04 Oct 10, 2014
Jkt 235001
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.
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Fmt 4700
Sfmt 4700
IV. Regulatory Flexibility Act
A final regulatory flexibility analysis
has been prepared consistent with the
Regulatory Flexibility Act, 5 U.S.C. 604,
and is summarized as follows:
The reason for issuance of this rule is
to clarify the flowdown requirements for
DFARS clause 252.225–7009,
Restriction on Acquisition of Certain
Articles Containing Specialty Metals.
The objective of the rule is to more fully
implement the requirements of 10
U.S.C. 2533b, which restricts the
acquisition of specialty metals not
melted in the United States, its outlying
areas, or a qualifying country, in order
to strengthen the United States
industrial base.
There were no significant issues
raised by the public comments in
response to the initial regulatory
flexibility analysis.
This rule applies to DoD contractors
and subcontractors that are providing
aircraft, missile or space systems, ships,
tank or automotive items, weapon
systems, ammunition, or components
thereof that contain specialty metals.
Based on Fiscal Year 2013 data in the
Federal Procurement Data System
(FPDS), DoD awarded 1,566 contracts
that exceeded the simplified acquisition
threshold for aircraft, missile or space
systems, ships, tank or automotive
items, weapon systems, ammunition, or
components thereof. Of those awards,
642 were to 533 unique small business
entities (83%). FPDS does not contain
data on subcontracts. If we estimate an
average of 20 subcontracts per contract
for items containing specialty metals,
and that 35 percent of those
subcontracts are awarded to small
businesses, 2 second-tier subcontracts
with small business entities per
subcontract with a small business
entity, then this rule may apply to
approximately 27,828 small business
entities subject to DFARS 52.225–7009.
(1,566 contracts × 2031,320 subcontracts
× .3510,962 1st tier subcontracts with
small entities × 2 = 21,924 second-tier
subcontracts with small entities. Total
small business entities = .83(642 +
10,962 + 21,924) = 27,828)
There are no reporting or
recordkeeping requirements associated
with this rule. With some exceptions,
the rule requires contractors to provide
certain end products containing
specialty metals melted or produced in
the United States, its outlying areas, or
a qualifying country. However, end
items may contain a minimal amount of
otherwise noncompliant specialty
metals, if the total weight of such
noncompliant metals does not exceed 2
percent of the total of all specialty
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]]>Agencies
[Federal Register Volume 79, Number 198 (Tuesday, October 14, 2014)]
[Rules and Regulations]
[Pages 61583-61584]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-24401]
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
Defense Acquisition Regulation System
48 CFR Part 247
RIN 0750-AI38
Defense Federal Acquisition Regulation: Ocean Transportation by
U.S.-Flag Vessels (DFARS Case 2014-D012)
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 remove text regarding
contracting officer responsibilities, when purchasing ocean
transportation services, that are procedural in nature.
DATES: Effective October 14, 2014.
FOR FURTHER INFORMATION CONTACT: Ms. Veronica Fallon, telephone 571-
372-6098.
SUPPLEMENTARY INFORMATION:
I. Discussion
DoD is revising DFARS 247.572 and 247.573 to include a statement of
delegated authority and to remove guidance that is internal to DoD
concerning procedures contracting officers must follow when purchasing
ocean transportation services. The internal DoD guidance removed from
DFARS will be addressed in revised DFARS Procedures, Guidance and
Information (PGI) 247.573.
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 the change is not substantive and only modifies the internal
operating procedures of DoD.
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). EO 13563
emphasizes the importance of quantifying both costs and benefits, of
reducing costs, or 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
This 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 247
Government procurement.
Manuel Quinones,
Editor, Defense Acquisition Regulations System.
Therefore, 48 CFR part 247 is amended as follows:
PART 247--TRANSPORTATION
0
1. The authority citation for 48 CFR part 247 continues to read as
follows:
Authority: 41 U.S.C. 1303 and 48 CFR chapter 1.
0
2. Section 247.572 paragraph (a) is revised to read as follows:
247.572 Policy.
(a) In accordance with 10 U.S.C. 2631(a), DoD contractors shall
transport supplies, as defined in the clause at 252.247-7023,
Transportation of Supplies by Sea, exclusively on U.S.-flag vessels
unless--
(1) Those vessels are not available;
(2) The proposed charges to the Government are higher than charges
to private persons for the transportation of like goods; or
(3) The proposed freight charges are excessive or unreasonable.
* * * * *
0
3. Section 247.573 heading is revised and new text added to read as
follows:
247.573 General.
(a) Delegated authority. Pursuant to 10 U.S.C. 2631(a) and
Secretary of Defense Memorandum dated February 7, 2012, (see PGI
245.573) the authority to make determinations of excessive ocean liner
rates and excessive charter rates is delegated to--
(1) The Commander, United States Transportation Command, for
excessive ocean liner rate determinations; and
(2) The Secretary of the Navy for excessive charter rate
determinations.
(b) Procedures. (1) Contracting officers shall follow the
procedures at PGI 247.573(b)(1) when purchase of ocean transportation
services is incidental to a contract for supplies, services, or
construction.
(2) Contracting officers shall follow the procedures at PGI
247.573(b)(2) when direct purchase of ocean transportation services is
the principal purpose of the contract.
(3) Agency and department procedures relating to annual reporting
requirements of information received
[[Page 61584]]
from offerors in response to solicitation provision 252.247-7026,
Evaluation Preference for Use of Domestic Shipyards--Applicable to
Acquisition of Carriage by Vessel for DoD Cargo in the Coastwise of
Noncontiguous Trade, are found at PGI 247.573(b)(3).
(4) Procedures are provided at PGI 247.573(b)(4) to accomplish
security background checks pursuant to clause 252.247-7027, Riding Gang
Member Requirements.
247.573-1, 247.573-2 and 247.573-3 [Removed]
0
4. Remove sections 247.573-1, 247.573-2, and 247.573-3.
247.574 [Amended]
0
5. Section 247.574 is amended by--
0
a. In paragraph (e), removing the last two sentences; and
0
b. In paragraph (f), removing the last sentence.
[FR Doc. 2014-24401 Filed 10-10-14; 8:45 am]
BILLING CODE 5001-06-P
