Defense Federal Acquisition Regulation Supplement: Repeal of DFARS Clause “Price Adjustment” (DFARS Case 2018-D048), 30952-30953 [2019-13743]

Download as PDF 30952 252.247–7009 Federal Register / Vol. 84, No. 125 / Friday, June 28, 2019 / Rules and Regulations [Removed and Reserved] DEPARTMENT OF DEFENSE 4. Remove and reserve section 252.247–7009. ■ 252.247–7010 Defense Acquisition Regulations System [Removed and Reserved] 48 CFR Parts 247 and 252 5. Remove and reserve section 252.247–7010. ■ 252.247–7011 [Docket DARS–2019–0032] RIN 0750–AK08 [Removed and Reserved] Defense Federal Acquisition Regulation Supplement: Repeal of DFARS Clause ‘‘Price Adjustment’’ (DFARS Case 2018–D048) 6. Remove and reserve section 252.247–7011. ■ 252.247–7013 [Removed and Reserved] Defense Acquisition Regulations System, Department of Defense (DoD). ACTION: Final rule. AGENCY: 7. Remove and reserve section 252.247–7013. ■ 252.247–7014 [Amended] 8. Amend section 252.247–7014 introductory text by removing ‘‘247.271–3(h)’’ and adding ‘‘247.271– 3(c)’’ in its place. ■ 252.247–7016 [Amended] 9. Amend section 252.247–7016 introductory text by removing ‘‘247.271–3(i)’’ and adding ‘‘247.271– 3(d)’’ in its place. ■ 252.247–7017 [Removed and Reserved] 10. Remove and reserve section 252.247–7017. ■ 252.247–7018 [Removed and Reserved] 11. Remove and reserve section 252.247–7018. ■ 252.247–7019 [Removed and Reserved] 12. Remove and reserve 252.247– 7019. ■ 13. Amend section 252.247–7022 by— ■ a. In the clause heading, removing the date ‘‘(AUG 1992)’’ and adding ‘‘(JUN 2019)’’ in its place; and ■ b. Revising paragraph (c). The revision reads as follows: ■ 252.247–7022 Representation of extent of transportation by sea. khammond on DSKBBV9HB2PROD with RULES * * * * * (c) Any contract resulting from this solicitation will include the Transportation of Supplies by Sea clause. * * * * * [FR Doc. 2019–13748 Filed 6–27–19; 8:45 am] BILLING CODE 5001–06–P VerDate Sep<11>2014 16:17 Jun 27, 2019 Jkt 247001 DoD is issuing a final rule amending the Defense Federal Acquisition Regulation Supplement (DFARS) to remove a clause that is no longer necessary. DATES: Effective June 28, 2019. FOR FURTHER INFORMATION CONTACT: Ms. Carrie Moore, telephone 571–372–6093. SUPPLEMENTARY INFORMATION: SUMMARY: I. Background DoD is amending the DFARS to remove DFARS clause 252.247–7001, Price Adjustment, and the associated clause prescription at DFARS 247.270– 4. Included in solicitations and contracts for stevedoring services when using sealed bidding, this clause: Requires a contractor to warrant that the prices in the contract apply to, based upon, and exclude certain criteria; requires a contractor to notify the Government of any changes to collective bargaining agreements that apply to its direct labor employees and will impact the contractor’s cost to perform; limits the upward adjustment of prices to a stated percentage and clarifies the terms and process for making such adjustments; and, requires a contractor to provide a statement pertaining to rates of pay for labor with its final invoice under the contract. DoD subject matter experts on the acquisition of stevedoring services across DoD advise that sealed bidding is not used to procure such services and, as such, this clause is not included in stevedoring contracts. Federal Acquisition Regulation (FAR) clauses 52.222–41, Service Contract Labor Standards; 52.222–43, Fair Labor Standards Act and Service Contract Labor Standards—Price Adjustment (Multiple Year and Option Contracts); and 52.222–44, Fair Labor Standards Act and Service Contract Labor Standards—Price Adjustment; as well as DFARS clause 252.247–7002, Revision PO 00000 Frm 00096 Fmt 4700 Sfmt 4700 of Prices, adequately address price adjustments resulting from changes in wage rates or benefits and are currently included in stevedoring contracts, as applicable. Since DFARS clause 252.247–7001 is not used and other FAR and DFARS clauses can be used to provide the necessary information to contractors performing on stevedoring contracts, this DFARS clause is no longer necessary and can be removed. The removal 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 this clause. The DoD Task Force reviewed the requirements of DFARS clause 252.247–7001, Pricing Adjustments, and determined that the DFARS coverage was unnecessary and recommended removal. II. Applicability to Contracts at or Below the Simplified Acquisition Threshold and for Commercial Items, Including Commercially Available Offthe-Shelf Items This rule only removes obsolete DFARS clause 252.247–7001, Pricing Adjustments. Therefore, the rule does not impose any new requirements on contracts at or below the simplified acquisition threshold and for commercial items, including commercially available off-the-shelf items III. Publication of This Final Rule for Public Comment Is Not Required by Statute The statute that applies to the publication of the FAR is Office of Federal Procurement Policy statute (codified at title 41 of the United States Code). Specifically, 41 U.S.C. 1707(a)(1) 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 E:\FR\FM\28JNR1.SGM 28JNR1 Federal Register / Vol. 84, No. 125 / Friday, June 28, 2019 / Rules and Regulations 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 DoD is not issuing a new regulation; rather, this rule is merely removing an obsolete clause from the DFARS. IV. 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. Executive Order 13771 This rule is not subject to E.O. 13771, because this rule is not a significant regulatory action under E.O. 12866. VI. Regulatory Flexibility Act khammond on DSKBBV9HB2PROD with RULES Because a notice of proposed rulemaking and an opportunity for public comment are not required to be given for this rule under 41 U.S.C. 1707(a)(1) (see section III. of this preamble), the analytical requirements of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) are not applicable. Accordingly, no regulatory flexibility analysis is required, and none has been prepared. List of Subjects in 48 CFR Parts 247 and 252 Government procurement. Jennifer Lee Hawes, Regulatory Control Officer, Defense Acquisition Regulations System. Therefore, 48 CFR parts 247 and 252 are amended as follows: ■ 1. The authority citation for 48 CFR parts 247 and 252 continues to read as follows: Authority: 41 U.S.C. 1303 and 48 CFR chapter 1. PART 247—TRANSPORTATION 2. Revise section 247.270–4 to read as follows: ■ 247.270–4 Contract clauses. Use the following clauses in solicitations and contracts for stevedoring services as indicated: (a) 252.247–7000, Hardship Conditions. (b) 252.247–7002, Revision of Prices, when using negotiation. (c) 252.247–7007, Liability and Insurance. PART 252—SOLICITATION PROVISIONS AND CONTRACT CLAUSES 252.247–7001 [Removed and Reserved] ■ 3. Remove and reserve section 252.247–7001. 252.247–7002 [Amended] 4. Amend section 252.247–7002 introductory text by removing ‘‘247.270–4(c)’’ and adding ‘‘247.270– 4(b)’’ in its place. 252.247–7007 [Amended] 5. Amend section 252.247–7007 introductory text by removing ‘‘247.270–4(d)’’ and adding ‘‘247.270– 4(c)’’ in its place. ■ [FR Doc. 2019–13743 Filed 6–27–19; 8:45 am] BILLING CODE 5001–06–P DEPARTMENT OF DEFENSE The Paperwork Reduction Act (44 U.S.C. chapter 35) applies. This rule affects the information collection requirements in DFARS clause 252.241– 7001, Price Adjustment, currently approved under OMB Control Number 0704–0245, entitled ‘‘Defense Federal Acquisition Regulation Supplement (DFARS) Part 247, Transportation, and associated clauses at DFARS 252.247.’’ However, the reduction in burden and savings is negligible. Defense Acquisition Regulations System 16:17 Jun 27, 2019 Jkt 247001 Final rule. DoD is making a technical amendment to the Defense Federal Acquisition Regulation Supplement (DFARS) to provide a needed editorial change. SUMMARY: DATES: Effective June 28, 2019. Ms. Jennifer L. Hawes, Defense Acquisition Regulations System, OUSD (A&S) DPC (DARS), Room 3B941, 3060 Defense Pentagon, Washington, DC 20301–3060. Telephone 571–372–6115; facsimile 571–372–6094. FOR FURTHER INFORMATION CONTACT: This final rule amends the DFARS to provide direction to contracting officers at DFARS 249.109–70 to see DFARS Procedures, Guidance, and Information (PGI) 249.109–70 for additional information and guidance for limitation on pricing of the terminated effort for settlement agreements. SUPPLEMENTARY INFORMATION: List of Subjects in 48 CFR Part 249 Government procurement. Jennifer Lee Hawes, Regulatory Control Officer, Defense Acquisition Regulations System. Therefore, 48 CFR part 249 is amended as follows: PART 249—TERMINATION OF CONTRACTS ■ VII. Paperwork Reduction Act VerDate Sep<11>2014 ACTION: 30953 1. The authority citations for 48 CFR part 249 continue to read as follows: ■ Authority: 41 U.S.C. 421 and 48 CFR chapter 1. 2. Section 249.109–70 is added to read as follows: ■ 249.109–70 Limitation on pricing of the terminated effort. When there is a termination for convenience (partial or whole) or a change that reduces scope, follow the procedures at PGI 249.109–70 for limitation on pricing of the terminated or reduced effort. [FR Doc. 2019–13746 Filed 6–27–19; 8:45 am] 48 CFR Part 249 BILLING CODE 5001–06–P [Docket DARS–2019–0001] Defense Federal Acquisition Regulation Supplement: Technical Amendment Defense Acquisition Regulations System, Department of Defense (DoD). AGENCY: PO 00000 Frm 00097 Fmt 4700 Sfmt 4700 E:\FR\FM\28JNR1.SGM 28JNR1

Agencies

[Federal Register Volume 84, Number 125 (Friday, June 28, 2019)]
[Rules and Regulations]
[Pages 30952-30953]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-13743]


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DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Parts 247 and 252

[Docket DARS-2019-0032]
RIN 0750-AK08


Defense Federal Acquisition Regulation Supplement: Repeal of 
DFARS Clause ``Price Adjustment'' (DFARS Case 2018-D048)

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 a clause that is no 
longer necessary.

DATES: Effective June 28, 2019.

FOR FURTHER INFORMATION CONTACT: Ms. Carrie Moore, telephone 571-372-
6093.

SUPPLEMENTARY INFORMATION: 

I. Background

    DoD is amending the DFARS to remove DFARS clause 252.247-7001, 
Price Adjustment, and the associated clause prescription at DFARS 
247.270-4. Included in solicitations and contracts for stevedoring 
services when using sealed bidding, this clause: Requires a contractor 
to warrant that the prices in the contract apply to, based upon, and 
exclude certain criteria; requires a contractor to notify the 
Government of any changes to collective bargaining agreements that 
apply to its direct labor employees and will impact the contractor's 
cost to perform; limits the upward adjustment of prices to a stated 
percentage and clarifies the terms and process for making such 
adjustments; and, requires a contractor to provide a statement 
pertaining to rates of pay for labor with its final invoice under the 
contract.
    DoD subject matter experts on the acquisition of stevedoring 
services across DoD advise that sealed bidding is not used to procure 
such services and, as such, this clause is not included in stevedoring 
contracts. Federal Acquisition Regulation (FAR) clauses 52.222-41, 
Service Contract Labor Standards; 52.222-43, Fair Labor Standards Act 
and Service Contract Labor Standards--Price Adjustment (Multiple Year 
and Option Contracts); and 52.222-44, Fair Labor Standards Act and 
Service Contract Labor Standards--Price Adjustment; as well as DFARS 
clause 252.247-7002, Revision of Prices, adequately address price 
adjustments resulting from changes in wage rates or benefits and are 
currently included in stevedoring contracts, as applicable.
    Since DFARS clause 252.247-7001 is not used and other FAR and DFARS 
clauses can be used to provide the necessary information to contractors 
performing on stevedoring contracts, this DFARS clause is no longer 
necessary and can be removed. The removal 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 this clause. The DoD Task Force reviewed the 
requirements of DFARS clause 252.247-7001, Pricing Adjustments, and 
determined that the DFARS coverage was unnecessary and recommended 
removal.

II. Applicability to Contracts at or Below the Simplified Acquisition 
Threshold and for Commercial Items, Including Commercially Available 
Off-the-Shelf Items

    This rule only removes obsolete DFARS clause 252.247-7001, Pricing 
Adjustments. Therefore, the rule does not impose any new requirements 
on contracts at or below the simplified acquisition threshold and for 
commercial items, including commercially available off-the-shelf items

III. Publication of This Final Rule for Public Comment Is Not Required 
by Statute

    The statute that applies to the publication of the FAR is Office of 
Federal Procurement Policy statute (codified at title 41 of the United 
States Code). Specifically, 41 U.S.C. 1707(a)(1) 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

[[Page 30953]]

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 DoD is not issuing a new regulation; rather, this rule is 
merely removing an obsolete clause from the DFARS.

IV. 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. Executive Order 13771

    This rule is not subject to E.O. 13771, because this rule is not a 
significant regulatory action under E.O. 12866.

VI. Regulatory Flexibility Act

    Because a notice of proposed rulemaking and an opportunity for 
public comment are not required to be given for this rule under 41 
U.S.C. 1707(a)(1) (see section III. of this preamble), the analytical 
requirements of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) 
are not applicable. Accordingly, no regulatory flexibility analysis is 
required, and none has been prepared.

VII. Paperwork Reduction Act

    The Paperwork Reduction Act (44 U.S.C. chapter 35) applies. This 
rule affects the information collection requirements in DFARS clause 
252.241-7001, Price Adjustment, currently approved under OMB Control 
Number 0704-0245, entitled ``Defense Federal Acquisition Regulation 
Supplement (DFARS) Part 247, Transportation, and associated clauses at 
DFARS 252.247.'' However, the reduction in burden and savings is 
negligible.

List of Subjects in 48 CFR Parts 247 and 252

    Government procurement.

Jennifer Lee Hawes,
Regulatory Control Officer, Defense Acquisition Regulations System.

    Therefore, 48 CFR parts 247 and 252 are amended as follows:

0
1. The authority citation for 48 CFR parts 247 and 252 continues to 
read as follows:

    Authority:  41 U.S.C. 1303 and 48 CFR chapter 1.

PART 247--TRANSPORTATION

0
2. Revise section 247.270-4 to read as follows:


247.270-4   Contract clauses.

    Use the following clauses in solicitations and contracts for 
stevedoring services as indicated:
    (a) 252.247-7000, Hardship Conditions.
    (b) 252.247-7002, Revision of Prices, when using negotiation.
    (c) 252.247-7007, Liability and Insurance.

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

    252.247-7001 [Removed and Reserved]

0
3. Remove and reserve section 252.247-7001.


252.247-7002   [Amended]

0
4. Amend section 252.247-7002 introductory text by removing ``247.270-
4(c)'' and adding ``247.270-4(b)'' in its place.


252.247-7007   [Amended]

0
5. Amend section 252.247-7007 introductory text by removing ``247.270-
4(d)'' and adding ``247.270-4(c)'' in its place.

[FR Doc. 2019-13743 Filed 6-27-19; 8:45 am]
 BILLING CODE 5001-06-P