Defense Federal Acquisition Regulation Supplement: Modification of DFARS Clause “Accident Reporting and Investigation Involving Aircraft, Missiles, and Space Launch Vehicles” (DFARS Case 2018-D047), 30986-30988 [2019-13742]
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30986
Federal Register / Vol. 84, No. 125 / Friday, June 28, 2019 / Proposed Rules
List of Subjects in 48 CFR Parts 207,
215, 216, and 234
Government procurement.
Jennifer Lee Hawes,
Regulatory Control Officer, Defense
Acquisition Regulations System.
Therefore, 48 CFR parts 207, 215, 216,
and 234 are proposed to be amended as
follows:
■ 1. The authority citation for 48 CFR
parts 207, 215, 216, and 234 continues
to read as follows:
PART 215—CONTRACTING BY
NEGOTIATION
3. Amend section 215.304 by adding
paragraph (c)(vi) to read as follows:
Authority: 41 U.S.C. 1303 and 48 CFR
chapter 1.
■
PART 207—ACQUISITION PLANNING
215.304 Evaluation factors and significant
subfactors.
2. Amend section 207.106 by—
a. In paragraph (S–70)(1), removing
‘‘Section 802(a)’’ and adding ‘‘section
802(a)’’ in its place;
■ b. Redesignating paragraphs (S–
70)(2)(ii) through (iv) as paragraphs (iii)
through (v), respectively;
■ c. Adding a new paragraph (S–
70)(2)(ii); and
■ d. Adding paragraph (S–72)(5).
The additions read as follows:
(c) * * *
(vi) Ensure source selections
emphasize sustainment factors and
objective reliability and maintainability
evaluation criteria in competitive
contracts for the—
(A) Technical maturation and risk
reduction phase of weapon system
design (see guidance at PGI
207.105(b)(14)(ii)(2));
(B) Engineering and manufacturing
development phase of a weapon system,
including embedded software (10 U.S.C.
2443); or
(C) Production and deployment phase
of a weapon system, including
embedded software (10 U.S.C. 2443).
■
■
207.106 Additional requirements for major
systems.
*
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of a contractor’s performance on
reliability and maintainability data
collected during the program. Such data
collection and associated evaluation
metrics shall be described in detail in
the contract; and to the maximum extent
practicable, the data shall be shared
with appropriate contractor and
Government organizations.
*
*
*
*
*
*
*
*
*
(S–70) * * *
(2) * * *
(ii) In accordance with 10 U.S.C.
2443, to emphasize reliability and
maintainability in weapon system
design, ensure that reliability and
maintainability are included in the
performance attributes of the key
performance parameters on sustainment
during the development of capabilities
requirements. For additional guidance
see PGI 207.105(b)(14)(ii)(2);
*
*
*
*
*
(S–72) * * *
(5) In accordance with 10 U.S.C. 2443,
acquisition plans for engineering
manufacturing and development and
production of major systems as defined
in 10 U.S.C. 2302 and 2302d and for
major defense acquisition programs as
defined in 202.101, shall include
performance measures that are
developed using best practices for
responding to the positive or negative
performance of a contractor for the
engineering and manufacturing
development or production of a weapon
system, including embedded software.
At a minimum the contracting officer
shall—
(i) Encourage the use of incentive fees
and penalties as appropriate; and
(ii) Allow the program manager or
comparable requiring activity official
exercising program management
responsibilities, to base determinations
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PART 216—TYPES OF CONTRACTS
4. Amend section 216.402–2 by—
a. Designating the text as paragraph
(1); and
■ b. Adding paragraph (2).
The addition reads as follows:
■
■
216.402–2 Technical performance
incentives.
*
*
*
*
*
(2) Contracting officers shall ensure
requirements about the payment of
incentive fees or the imposition of
penalties are included in the solicitation
for a contract for the engineering and
manufacturing development or
production of a weapon system,
including embedded software, if the
program manager or comparable
requiring activity official exercising
program manager responsibilities
includes—
(i) Provisions for the payment of
incentive fees to the contractor, based
on achievement of design specification
requirements for reliability and
maintainability of weapons systems
under the contract; or
(ii) The imposition of penalties to be
paid by the contractor to the
Government for failure to achieve such
design specification requirements (10
U.S.C. 2443).
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Sfmt 4702
PART 234—MAJOR SYSTEM
ACQUISITION
5. Amend section 234.004 by adding
paragraph (3) to read as follows:
■
234.004
Acquisition strategy.
*
*
*
*
*
(3) The contracting officer shall
include in solicitations for contracts for
the technical maturation and risk
reduction phase, engineering and
manufacturing development phase or
production phase of a weapon system,
including embedded software—
(i) Clearly defined measurable criteria
for engineering activities and design
specifications for reliability and
maintainability provided by the
program manager, or the comparable
requiring activity official performing
program management responsibilities;
or
(ii) Ensure a copy of the justification,
executed by the program manager or the
comparable requiring activity official
performing program management
responsibilities for the decision that
engineering activities and design
specifications for reliability and
maintainability should not be a
requirement, is included in the contract
file (10 U.S.C. 2443).
[FR Doc. 2019–13744 Filed 6–27–19; 8:45 am]
BILLING CODE 5001–06–P
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations
System
48 CFR Parts 228 and 252
[Docket DARS–2019–0030]
RIN 0750–AK12
Defense Federal Acquisition
Regulation Supplement: Modification
of DFARS Clause ‘‘Accident Reporting
and Investigation Involving Aircraft,
Missiles, and Space Launch Vehicles’’
(DFARS Case 2018–D047)
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
modify the text of an existing clause
prescription to require, instead of
permit, the clause be included in
applicable solicitations and contracts,
pursuant to action taken by the
Regulatory Reform Task Force.
DATES: Comments on the proposed rule
should be submitted in writing to the
SUMMARY:
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Federal Register / Vol. 84, No. 125 / Friday, June 28, 2019 / Proposed Rules
address shown below on or before
August 27, 2019, to be considered in the
formation of a final rule.
ADDRESSES: Submit comments
identified by DFARS Case 2018–D047,
using any of the following methods:
Æ Regulations.gov: https://
www.regulations.gov. Submit comments
via the Federal eRulemaking portal by
entering ‘‘DFARS Case 2018–D047’’
under the heading ‘‘Enter keyword or
ID’’ and selecting ‘‘Search.’’ Select the
link ‘‘Submit a Comment’’ that
corresponds with ‘‘DFARS Case 2018–
D047.’’ Follow the instructions provided
at the ‘‘Submit a Comment’’ screen.
Please include your name, company
name (if any), and ‘‘DFARS Case 2018–
D047’’ on your attached document.
Æ Email: osd.dfars@mail.mil. Include
DFARS Case 2018–D047 in the subject
line of the message.
Æ Fax: 571–372–6094.
Æ Mail: Defense Acquisition
Regulations System, Attn: Carrie Moore,
OUSD(A&S)DPC/DARS, Room 3B941,
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: Ms.
Carrie Moore, telephone 571–372–6093.
SUPPLEMENTARY INFORMATION:
khammond on DSKBBV9HB2PROD with PROPOSALS
I. Background
This rulemaking proposes to modify
the clause prescription at DFARS
228.370 to require that DFARS clause
252.228–7005, Accident Reporting and
Investigation Involving Aircraft,
Missiles, and Space Launch Vehicles, be
included in all solicitations and
contracts, when applicable, and updates
the text of the clause to follow current
DFARS convention regarding the use of
the word ‘‘shall’’ to indicate a
mandatory requirement or action.
DFARS 252.239–7005 was
implemented to ensure the Government
receives timely notification of accidents
involving aircraft, missile, or space
launch vehicles being manufactured,
modified, repaired, or overhauled by a
contractor in connection with a contract
and contractor cooperation with
Government investigation of such
accidents. The clause is included in
solicitations and contracts that involve
the manufacture, modification,
overhaul, or repair of aircraft, missiles,
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16:43 Jun 27, 2019
Jkt 247001
and space launch vehicles. The clause
requires contractors to promptly notify
the contracting officer of all facts related
to an accident involving such items,
cooperate with and assist in the
Government’s investigation of an
accident, and include a similar clause in
subcontracts under the contract.
II. Discussion and Analysis
This rulemaking proposes to amend
the clause prescription from permitting
use of the clause (i.e., this clause ‘‘may’’
be used) to requiring use of the clause
(i.e., this clause ‘‘shall’’ be used), as
there is no situation in which the
requirements of the clause would not be
necessary to the Government when
contracting for the manufacture,
modification, overhaul, or repair of
aircraft, missiles, and space launch
vehicles. In order to follow current
DFARS convention regarding the use of
‘‘shall’’ to indicate a mandatory
requirement, this rule also amends the
text of the clause from ‘‘will’’ to ‘‘shall’’
to clarify the intent of the clause.
The modification of this DFARS text
supports a recommendation from the
DoD Regulatory Reform Task Force. On
February 24, 2017, the President signed
Executive Order (E.O.) 13777,
‘‘Enforcing the Regulatory Reform
Agenda,’’ which established a Federal
policy ‘‘to alleviate unnecessary
regulatory burdens’’ on the American
people. In accordance with E.O. 13777,
DoD established a Regulatory Reform
Task Force to review and validate DoD
regulations, including the DFARS. A
public notice of the establishment of the
DFARS Subgroup to the DoD Regulatory
Reform Task Force, for the purpose of
reviewing DFARS provisions and
clauses, was published in the Federal
Register at 82 FR 35741 on August 1,
2017, and requested public input. No
public comments were received on
these clauses. Subsequently, the DoD
Task Force reviewed the requirements
of DFARS clause 252.228–7005 and
determined that the clause should be
modified.
III. Applicability to Contracts at or
Below the Simplified Acquisition
Threshold and for Commercial Items,
Including Commercially Available Offthe-Shelf Items
This proposed rule does not create
any new provisions or clauses. This
proposed rule, if adopted, would amend
a clause provision to require its
inclusion in applicable contracts and
clarifies the intent of the clause. The
rulemaking does not change the
applicability of the clause to
commercial or commercially available
off-the-shelf (COTS) items, or items
PO 00000
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30987
valued at or below the simplified
acquisition threshold (SAT). The clause
remains applicable to items valued
below the SAT, but not applicable to
commercial or COTS items.
IV. Executive Orders 12866 and 13563
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. Executive Order 13771
This proposed rule is not expected to
be subject to E.O. 13771, because this
proposed rule is not a significant
regulatory action under E.O. 12866.
VI. 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 the rule is not creating
any new requirements or changing any
existing requirements for contractors.
However, an initial regulatory flexibility
analysis has been performed and is
summarized as follows:
The Department of Defense is
proposing to amend the Defense Federal
Acquisition Regulation Supplement
(DFARS) to amend the clause
prescription at DFARS 228.370 to
require that DFARS clause 252.228–
7005, Accident Reporting and
Investigation Involving Aircraft,
Missiles, and Space Launch Vehicles, be
included in all solicitations and
contracts involving the manufacture,
modification, overhaul, or repair of
these items; and, update the text of the
clause to follow current DFARS
convention regarding the use of the
word ‘‘shall’’ to indicate a mandatory
requirement or action. This rule is
pursuant to action taken by the DoD
Regulatory Reform Task Force.
The objective of this proposed rule is
to ensure contractor cooperation in the
early reporting of accidents that involve
an aircraft, missile, or space launch
vehicle being manufactured, modified,
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khammond on DSKBBV9HB2PROD with PROPOSALS
30988
Federal Register / Vol. 84, No. 125 / Friday, June 28, 2019 / Proposed Rules
repaired, or overhauled by the
contractor in connection with the
contract; and, with the Government
investigation of such accidents. This
proposed rule requires, instead of
permits, the inclusion of the clause in
all applicable contracts. The rulemaking
also updates the clause to clarify its
intent; however, it is assumed that the
clause is already being included in all
applicable contracts. The rulemaking
simply clarifies the Government’s
expectation on the usage of the clause.
According to data available in the
Federal Procurement Data System
(FPDS) for fiscal years 2016 through
2018, DoD awarded a total of 2,288
noncommercial contracts and orders for
services under the product services
codes listed below that relate to
manufacture, modification, overhaul, or
repair of aircraft, missiles, and space
launch vehicles. Of these 2,288 awards,
219, or approximately 10 percent, were
made to 67 unique small business
entities over this three-year period. On
average, 73 awards were made to 22
unique small entities on an annual
basis.
FPDS does not provide additional
information on the types of support
services provided under the contract,
which can include manufacture,
modification, overhaul, or repair work;
therefore, the number of small business
contractors impacted by this rule is
expected to be less than the number of
entities identified by the data. The FPDS
data reflects awards under the following
product service codes:
AC16—R&D—Defense System:
Aircraft (Management/Support);
AC26—Defense System: Missile/
Space Systems (Management/Support);
AR96—R&D—Space: Other
(Management/Support);
J014—Repair, and Rebuilding of
Equipment—Guided Missiles;
J015—Maintenance, Repair, and
Rebuilding of Equipment—Aircraft and
Airframe Structural Components;
J018—Maintenance, Repair, and
Rebuilding of Equipment—Space
Vehicles;
K014—Modification of Equipment—
Guided Missiles;
K015—Modification of Equipment—
Aircraft and Airframe Structural
Components; and,
K018—Modification of Equipment—
Space Vehicles.
This proposed rule does not include
any new reporting, recordkeeping, or
other compliance requirements for small
businesses. This rulemaking does not
duplicate, overlap, or conflict with any
other Federal rules. There are no known
significant alternative approaches to the
VerDate Sep<11>2014
16:43 Jun 27, 2019
Jkt 247001
proposed rule that would meet the
proposed objectives.
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 2018–D047) in
correspondence.
PART 252—SOLICITATION ROVISIONS
AND CONTRACT CLAUSES
252.228–7005
[Amended]
3. Amend section 252.228–7005 by—
a. Removing the clause date ‘‘(DEC
1991)’’ and adding ‘‘(DATE)’’ in its
place; and
■ b. In paragraphs (b) and (c) removing
‘‘will’’ and adding ‘‘shall’’ in both
places.
■
■
[FR Doc. 2019–13742 Filed 6–27–19; 8:45 am]
BILLING CODE 5001–06–P
VII. Paperwork Reduction Act
DEPARTMENT OF DEFENSE
The Paperwork Reduction Act (44
U.S.C. chapter 35) applies to this rule,
as the information collection
requirement in DFARS clause 252.228–
7005, Accident Reporting and
Investigation Involving Aircraft,
Missiles, and Space Launch Vehicles, is
currently approved under OMB Control
Number 0704–0216, entitled ‘‘Defense
Federal Acquisition Regulation
Supplement (DFARS) Part 228, Bonds
and Insurance, and related clauses at
DFARS 252.228.’’ The proposed changes
to the clause prescription and text do
not impact the information collection,
because prompt contractor reporting of
such accidents is already required by
the clause and remains unchanged.
Defense Acquisition Regulations
System
List of Subjects in 48 CFR Parts 228 and
252
Government procurement.
Jennifer Lee Hawes,
Regulatory Control Officer, Defense
Acquisition Regulations System.
Therefore, 48 CFR parts 228 and 252
are proposed to be amended as follows:
1. The authority citation for 48 CFR
parts 228 and 252 continues to read as
follows:
■
Authority: 41 U.S.C. 1303 and 48 CFR
chapter 1.
PART 228—BONDS AND INSURANCE
2. Amend section 228.370 by revising
paragraph (d) to read as follows:
■
228.370
Additional clauses.
*
*
*
*
*
(d) Use the clause at 252.228–7005,
Accident Reporting and Investigation
Involving Aircraft, Missiles, and Space
Launch Vehicles, in solicitations and
contracts that involve the manufacture,
modification, overhaul, or repair of
aircraft, missiles, and space launch
vehicles.
*
*
*
*
*
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48 CFR Parts 239 and 252
[Docket DARS–2019–0029]
RIN 0750–AK11
Defense Federal Acquisition
Regulation Supplement: Modification
of DFARS Clause, ‘‘Obligation of the
Government’’ (DFARS Case 2018–
D046)
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
modify the text of an existing DFARS
clause to include the text of two other
DFARS clauses on the same subject, in
an effort to streamline contract terms
and conditions for contractors, pursuant
to action taken by the Regulatory
Reform Task Force.
DATES: Comments on the proposed rule
should be submitted in writing to the
address shown below on or before
August 27, 2019, to be considered in the
formation of a final rule.
ADDRESSES: Submit comments
identified by DFARS Case 2018–D046,
using any of the following methods:
Æ Regulations.gov: https://
www.regulations.gov. Submit comments
via the Federal eRulemaking portal by
entering ‘‘DFARS Case 2018–D046’’
under the heading ‘‘Enter keyword or
ID’’ and selecting ‘‘Search.’’ Select the
link ‘‘Submit a Comment’’ that
corresponds with ‘‘DFARS Case 2018–
D046.’’ Follow the instructions provided
at the ‘‘Submit a Comment’’ screen.
Please include your name, company
name (if any), and ‘‘DFARS Case 2018–
D046’’ on your attached document.
Æ Email: osd.dfars@mail.mil. Include
DFARS Case 2018–D046 in the subject
line of the message.
SUMMARY:
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]]>Agencies
[Federal Register Volume 84, Number 125 (Friday, June 28, 2019)]
[Proposed Rules]
[Pages 30986-30988]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-13742]
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System
48 CFR Parts 228 and 252
[Docket DARS-2019-0030]
RIN 0750-AK12
Defense Federal Acquisition Regulation Supplement: Modification
of DFARS Clause ``Accident Reporting and Investigation Involving
Aircraft, Missiles, and Space Launch Vehicles'' (DFARS Case 2018-D047)
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 modify the text of an existing clause
prescription to require, instead of permit, the clause be included in
applicable solicitations and contracts, pursuant to action taken by the
Regulatory Reform Task Force.
DATES: Comments on the proposed rule should be submitted in writing to
the
[[Page 30987]]
address shown below on or before August 27, 2019, to be considered in
the formation of a final rule.
ADDRESSES: Submit comments identified by DFARS Case 2018-D047, using
any of the following methods:
[cir] Regulations.gov: https://www.regulations.gov. Submit comments
via the Federal eRulemaking portal by entering ``DFARS Case 2018-D047''
under the heading ``Enter keyword or ID'' and selecting ``Search.''
Select the link ``Submit a Comment'' that corresponds with ``DFARS Case
2018-D047.'' Follow the instructions provided at the ``Submit a
Comment'' screen. Please include your name, company name (if any), and
``DFARS Case 2018-D047'' on your attached document.
[cir] Email: [email protected]. Include DFARS Case 2018-D047 in
the subject line of the message.
[cir] Fax: 571-372-6094.
[cir] Mail: Defense Acquisition Regulations System, Attn: Carrie
Moore, OUSD(A&S)DPC/DARS, Room 3B941, 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: Ms. Carrie Moore, telephone 571-372-
6093.
SUPPLEMENTARY INFORMATION:
I. Background
This rulemaking proposes to modify the clause prescription at DFARS
228.370 to require that DFARS clause 252.228-7005, Accident Reporting
and Investigation Involving Aircraft, Missiles, and Space Launch
Vehicles, be included in all solicitations and contracts, when
applicable, and updates the text of the clause to follow current DFARS
convention regarding the use of the word ``shall'' to indicate a
mandatory requirement or action.
DFARS 252.239-7005 was implemented to ensure the Government
receives timely notification of accidents involving aircraft, missile,
or space launch vehicles being manufactured, modified, repaired, or
overhauled by a contractor in connection with a contract and contractor
cooperation with Government investigation of such accidents. The clause
is included in solicitations and contracts that involve the
manufacture, modification, overhaul, or repair of aircraft, missiles,
and space launch vehicles. The clause requires contractors to promptly
notify the contracting officer of all facts related to an accident
involving such items, cooperate with and assist in the Government's
investigation of an accident, and include a similar clause in
subcontracts under the contract.
II. Discussion and Analysis
This rulemaking proposes to amend the clause prescription from
permitting use of the clause (i.e., this clause ``may'' be used) to
requiring use of the clause (i.e., this clause ``shall'' be used), as
there is no situation in which the requirements of the clause would not
be necessary to the Government when contracting for the manufacture,
modification, overhaul, or repair of aircraft, missiles, and space
launch vehicles. In order to follow current DFARS convention regarding
the use of ``shall'' to indicate a mandatory requirement, this rule
also amends the text of the clause from ``will'' to ``shall'' to
clarify the intent of the clause.
The modification of this DFARS text supports a recommendation from
the DoD Regulatory Reform Task Force. On February 24, 2017, the
President signed Executive Order (E.O.) 13777, ``Enforcing the
Regulatory Reform Agenda,'' which established a Federal policy ``to
alleviate unnecessary regulatory burdens'' on the American people. In
accordance with E.O. 13777, DoD established a Regulatory Reform Task
Force to review and validate DoD regulations, including the DFARS. A
public notice of the establishment of the DFARS Subgroup to the DoD
Regulatory Reform Task Force, for the purpose of reviewing DFARS
provisions and clauses, was published in the Federal Register at 82 FR
35741 on August 1, 2017, and requested public input. No public comments
were received on these clauses. Subsequently, the DoD Task Force
reviewed the requirements of DFARS clause 252.228-7005 and determined
that the clause should be modified.
III. Applicability to Contracts at or Below the Simplified Acquisition
Threshold and for Commercial Items, Including Commercially Available
Off-the-Shelf Items
This proposed rule does not create any new provisions or clauses.
This proposed rule, if adopted, would amend a clause provision to
require its inclusion in applicable contracts and clarifies the intent
of the clause. The rulemaking does not change the applicability of the
clause to commercial or commercially available off-the-shelf (COTS)
items, or items valued at or below the simplified acquisition threshold
(SAT). The clause remains applicable to items valued below the SAT, but
not applicable to commercial or COTS items.
IV. Executive Orders 12866 and 13563
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. Executive Order 13771
This proposed rule is not expected to be subject to E.O. 13771,
because this proposed rule is not a significant regulatory action under
E.O. 12866.
VI. 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 the rule is not creating any new requirements or changing any
existing requirements for contractors. However, an initial regulatory
flexibility analysis has been performed and is summarized as follows:
The Department of Defense is proposing to amend the Defense Federal
Acquisition Regulation Supplement (DFARS) to amend the clause
prescription at DFARS 228.370 to require that DFARS clause 252.228-
7005, Accident Reporting and Investigation Involving Aircraft,
Missiles, and Space Launch Vehicles, be included in all solicitations
and contracts involving the manufacture, modification, overhaul, or
repair of these items; and, update the text of the clause to follow
current DFARS convention regarding the use of the word ``shall'' to
indicate a mandatory requirement or action. This rule is pursuant to
action taken by the DoD Regulatory Reform Task Force.
The objective of this proposed rule is to ensure contractor
cooperation in the early reporting of accidents that involve an
aircraft, missile, or space launch vehicle being manufactured,
modified,
[[Page 30988]]
repaired, or overhauled by the contractor in connection with the
contract; and, with the Government investigation of such accidents.
This proposed rule requires, instead of permits, the inclusion of the
clause in all applicable contracts. The rulemaking also updates the
clause to clarify its intent; however, it is assumed that the clause is
already being included in all applicable contracts. The rulemaking
simply clarifies the Government's expectation on the usage of the
clause.
According to data available in the Federal Procurement Data System
(FPDS) for fiscal years 2016 through 2018, DoD awarded a total of 2,288
noncommercial contracts and orders for services under the product
services codes listed below that relate to manufacture, modification,
overhaul, or repair of aircraft, missiles, and space launch vehicles.
Of these 2,288 awards, 219, or approximately 10 percent, were made to
67 unique small business entities over this three-year period. On
average, 73 awards were made to 22 unique small entities on an annual
basis.
FPDS does not provide additional information on the types of
support services provided under the contract, which can include
manufacture, modification, overhaul, or repair work; therefore, the
number of small business contractors impacted by this rule is expected
to be less than the number of entities identified by the data. The FPDS
data reflects awards under the following product service codes:
AC16--R&D--Defense System: Aircraft (Management/Support);
AC26--Defense System: Missile/Space Systems (Management/Support);
AR96--R&D--Space: Other (Management/Support);
J014--Repair, and Rebuilding of Equipment--Guided Missiles;
J015--Maintenance, Repair, and Rebuilding of Equipment--Aircraft
and Airframe Structural Components;
J018--Maintenance, Repair, and Rebuilding of Equipment--Space
Vehicles;
K014--Modification of Equipment--Guided Missiles;
K015--Modification of Equipment--Aircraft and Airframe Structural
Components; and,
K018--Modification of Equipment--Space Vehicles.
This proposed rule does not include any new reporting,
recordkeeping, or other compliance requirements for small businesses.
This rulemaking does not duplicate, overlap, or conflict with any other
Federal rules. There are no known significant alternative approaches to
the proposed rule that would meet the proposed objectives.
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 2018-D047)
in correspondence.
VII. Paperwork Reduction Act
The Paperwork Reduction Act (44 U.S.C. chapter 35) applies to this
rule, as the information collection requirement in DFARS clause
252.228-7005, Accident Reporting and Investigation Involving Aircraft,
Missiles, and Space Launch Vehicles, is currently approved under OMB
Control Number 0704-0216, entitled ``Defense Federal Acquisition
Regulation Supplement (DFARS) Part 228, Bonds and Insurance, and
related clauses at DFARS 252.228.'' The proposed changes to the clause
prescription and text do not impact the information collection, because
prompt contractor reporting of such accidents is already required by
the clause and remains unchanged.
List of Subjects in 48 CFR Parts 228 and 252
Government procurement.
Jennifer Lee Hawes,
Regulatory Control Officer, Defense Acquisition Regulations System.
Therefore, 48 CFR parts 228 and 252 are proposed to be amended as
follows:
0
1. The authority citation for 48 CFR parts 228 and 252 continues to
read as follows:
Authority: 41 U.S.C. 1303 and 48 CFR chapter 1.
PART 228--BONDS AND INSURANCE
0
2. Amend section 228.370 by revising paragraph (d) to read as follows:
228.370 Additional clauses.
* * * * *
(d) Use the clause at 252.228-7005, Accident Reporting and
Investigation Involving Aircraft, Missiles, and Space Launch Vehicles,
in solicitations and contracts that involve the manufacture,
modification, overhaul, or repair of aircraft, missiles, and space
launch vehicles.
* * * * *
PART 252--SOLICITATION ROVISIONS AND CONTRACT CLAUSES
252.228-7005 [Amended]
0
3. Amend section 252.228-7005 by--
0
a. Removing the clause date ``(DEC 1991)'' and adding ``(DATE)'' in its
place; and
0
b. In paragraphs (b) and (c) removing ``will'' and adding ``shall'' in
both places.
[FR Doc. 2019-13742 Filed 6-27-19; 8:45 am]
BILLING CODE 5001-06-P
