Defense Federal Acquisition Regulation Supplement: Modification of DFARS Clause “Orders for Facilities and Services” (DFARS Case 2018-D045), 48498-48499 [2019-19558]
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Federal Register / Vol. 84, No. 178 / Friday, September 13, 2019 / Rules and Regulations
(j) Failure to agree shall be a dispute
concerning a question of fact within the
meaning of the Disputes clause.
(End of clause)
252.239–7008
II. Applicability to Contracts at or
Below the Simplified Acquisition
Threshold and for Commercial Items,
Including Commercially Available Offthe-Shelf Items
This rule does not create any new
provisions or clauses. The rule
combines two clauses into a single
clause and makes minor modifications
to simplify clause text. This rule does
not change the applicability of the
affected clauses.
[Removed and Reserved]
4. Remove and reserve section
252.239–7008.
■
[FR Doc. 2019–19557 Filed 9–12–19; 8:45 am]
BILLING CODE 5001–06–P
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations
System
48 CFR Parts 239 and 252
[Docket DARS–2019–0017]
RIN 0750–AK10
Defense Federal Acquisition
Regulation Supplement: Modification
of DFARS Clause ‘‘Orders for Facilities
and Services’’ (DFARS Case 2018–
D045)
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 modify the text of an
existing DFARS clause to include the
text of another DFARS clause 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: Effective September 13, 2019.
FOR FURTHER INFORMATION CONTACT: Ms.
Carrie Moore, telephone 571–372–6093.
SUPPLEMENTARY INFORMATION:
SUMMARY:
khammond on DSKBBV9HB2PROD with RULES2
I. Background
DoD published a proposed rule in the
Federal Register at 84 FR 18228 on
April 30, 2019, to modify the DFARS
clause 252.239–7004, Orders for
Facilities and Services, to incorporate
the information in DFARS clause
252.239–7005, Rates, Charges, and
Services, and make minor changes to
simplify the clause text. Combining
these clauses results in 252.239–7005
being removed from the DFARS. The
rule implements a recommendation of
the DoD Regulatory Reform Task Force
established under Executive Order
(E.O.) 13777, ‘‘Enforcing the Regulatory
Reform Agenda.’’
No public comments were received in
response to the proposed rule. No
changes from the proposed rule are
made in the final rule.
VerDate Sep<11>2014
18:37 Sep 12, 2019
Jkt 247001
III. Executive Orders 12866 and 13563
Executive Orders (E.O.s) 12866 and
E.O. 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. 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.
V. Regulatory Flexibility Act
A final regulatory flexibility analysis
(FRFA) has been prepared consistent
with the Regulatory Flexibility Act, 5
U.S.C. 601, et seq. The FRFA is
summarized as follows:
DoD is amending DFARS clause
252.239–7004, Orders for Facilities and
Services, to include the text of DFARS
clause 252.239–7005, Rates, Charges,
and Services. Combining these two
clauses permits DFARS 252.239–7005 to
be removed from the DFARS.
The objective of this rule is to
streamline contract terms and
conditions pertaining to
telecommunications services. The
modification of these DFARS clauses
supports a recommendation from the
DoD Regulatory Reform Task Force. The
modification of these DFARS clauses
implements a recommendation from the
DoD Regulatory Reform Task Force
under E.O. 13771.
No public comments were received in
response to the initial regulatory
flexibility analysis.
This rule is not expected to have a
significant economic impact on a
PO 00000
Frm 00004
Fmt 4701
Sfmt 4700
substantial number of small entities
within the meaning of the Regulatory
Flexibility Act, 5 U.S.C. 601, et seq.,
because it is simply combining two
existing clauses that address the same
topic into a single comprehensive
clause.
Based on fiscal year (FY) 2018 data
from the Federal Procurement Data
System, the Government awarded
approximately 8,670 contracts and
orders for services under the Product
and Supply Code (PSC) D3—
Information Technology and
Telecommunications. Of the 8,670
contracts and orders awarded,
approximately 28% of the awards were
made to 1,050 unique small businesses
entities. The PSC D3 does not
breakdown further into information
technology services and
telecommunications services; therefore,
the number of contracts and orders
awarded in FY 2018 exclusively for
telecommunications services is
estimated to be fewer than the number
awarded in FY 2018 under PSC D3 in
its entirety.
This rule does not include any new
reporting, recordkeeping, or other
compliance requirements for small
businesses. This rule does not duplicate,
overlap, or conflict with any other
Federal rules. There are no known
significant alternative approaches to the
rule that would meet the stated
objectives. This rule is not expected to
have a significant economic impact on
small entities.
VI. Paperwork Reduction Act
The rule does not contain any
information collection requirements that
require the approval of the Office of
Management and Budget under the
Paperwork Reduction Act (44 U.S.C.
chapter 35).
List of Subjects in 48 CFR Parts 239 and
252
Government procurement.
Jennifer Lee Hawes,
Regulatory Control Officer, Defense
Acquisition Regulations System.
Therefore, 48 CFR parts 239 and 252
are amended as follows:
■ 1. The authority citation for parts 239
and 252 continues to read as follows:
Authority: 41 U.S.C. 1303 and 48 CFR
chapter 1.
PART 239–ACQUISITION OF
INFORMATION TECHNOLOGY
239.7411
■
■
[Amended]
2. Amend section 239.7411 by—
a. Removing paragraph (a)(3); and
E:\FR\FM\13SER2.SGM
13SER2
Federal Register / Vol. 84, No. 178 / Friday, September 13, 2019 / Rules and Regulations
b. Redesignating paragraphs (a)(4) and
(5) as paragraphs (a)(3) and (4),
respectively.
■
PART 252—SOLICITATION
PROVISIONS AND CONTRACT
CLAUSES
3. Revise section 252.239–7004 to
read as follows:
■
252.239–7004
Services.
Orders for Facilities and
As prescribed in 239.7411(a), use the
following clause:
khammond on DSKBBV9HB2PROD with RULES2
ORDERS FOR FACILITIES AND
SERVICES (SEP 2019)
(a) Definitions. As used in this clause—
Governmental regulatory body means the
Federal Communications Commission, any
statewide regulatory body, or any body with
less than statewide jurisdiction when
operating under the state authority.
Regulatory bodies whose decisions are not
subject to judicial appeal and regulatory
bodies which regulate a company owned by
the same entity that creates the regulatory
body are not governmental regulatory bodies.
(b) The Contractor shall acknowledge a
communication service authorization or
other type order for supplies and facilities
by—
(1) Commencing performance after receipt
of an order; or
(2) Written acceptance by a duly
authorized representative.
(c) The Contractor shall furnish the
services and facilities under this agreement/
contract in accordance with all applicable
tariffs, rates, charges, regulations,
requirements, terms, and conditions of—
(1) Service and facilities furnished or
offered by the Contractor to the general
public or the Contractor’s subscribers; or
(2) Service as lawfully established by a
governmental regulatory body.
(d) The Government will not prepay for
services.
(e) For nontariffed services, the Contractor
shall charge the Government at the lowest
rate and under the most favorable terms and
conditions for similar service and facilities
offered to any other customer.
(f) Recurring charges for services and
facilities shall, in each case, start with the
satisfactory beginning of service or provision
of facilities or equipment and are payable
monthly in arrears.
(g) Expediting charges are costs necessary
to get services earlier than normal. Examples
are overtime pay or special shipment. When
authorized, expediting charges shall be the
additional costs incurred by the Contractor
and the subcontractor. The Government shall
pay expediting charges only when—
(1) They are provided for in the tariff
established by a governmental regulatory
body; or
(2) They are authorized in a
communication service authorization or
other contractual document.
(h) When services normally provided are
technically unacceptable and the
development, fabrication, or manufacture of
VerDate Sep<11>2014
18:37 Sep 12, 2019
Jkt 247001
special equipment is required, the
Government may—
(1) Provide the equipment; or
(2) Direct the Contractor to acquire the
equipment or facilities. If the Contractor
acquires the equipment or facilities, the
acquisition shall be competitive, if
practicable.
(i) If at any time the Government defers or
changes its orders for any of the services but
does not cancel or terminate them, the
amount paid or payable to the Contractor for
the services deferred or modified shall be
equitably adjusted under applicable tariffs
filed by the Contractor with the regulatory
commission in effect at the time of deferral
or change. If no tariffs are in effect, the
Government and the Contractor shall
equitably adjust the rates by mutual
agreement. Failure to agree on any
adjustment shall be a dispute concerning a
question of fact within the meaning of the
Disputes clause of this contract.
(End of clause)
252.239–7005
[Removed and Reserved]
4. Remove and reserve section
252.239–7005.
■
[FR Doc. 2019–19558 Filed 9–12–19; 8:45 am]
BILLING CODE 5001–06–P
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations
System
48 CFR Part 252
[Docket DARS–2019–0049]
RIN 0750–AK49
Defense Federal Acquisition
Regulation Supplement: Modification
of DFARS Clause ‘‘Release of Past
Infringement’’ (DFARS Case 2019–
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 update pronouns used in a
clause.
DATES: Effective September 13, 2019.
FOR FURTHER INFORMATION CONTACT: Ms.
Carrie Moore, telephone 571–372–6093.
SUPPLEMENTARY INFORMATION:
SUMMARY:
I. Background
DoD is amending the DFARS to
update the pronouns used in DFARS
clause 252.227.7001, Release of Past
Infringement. This clause is included,
when necessary, in contracts that
contain patent release and settlement
PO 00000
Frm 00005
Fmt 4701
Sfmt 4700
48499
agreements, license agreements, and
assignments. The clause addresses the
release of claims or demands of certain
inventions associated with the contract.
Within the clause text the contractor is
identified using the pronouns ‘‘he’’ or
‘‘him.’’ Current drafting convention
simplifies and clarifies clause language
by referring to a contractor as ‘‘the
contractor’’ in clause text. This rule
updates this clause to conform the text
to current drafting conventions.
II. Discussion and Analysis
The modification of this DFARS text
implements 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. One
public comment was received on this
clause.
Comment: The respondent advised
that the clause is never used and should
be deleted from the DFARS. The
respondent recommended that, instead
of the clause, a policy statement
permitting DoD to enter into settlement
agreements where patent and copyright
infringement is alleged by a third party
owner of a patent or copyright would
suffice.
Response: DFARS clause 252.227–
7001 serves as an agreement, through
incorporation in the contract, between
DoD and the contractor that, by
execution of the contract, the contractor
releases DoD from all claims and
demands the contractor has (or will
have) against DoD for the use or
manufacture by DoD of inventions
specifically covered by patents and
applications identified under the
contract. The clause applies to the
requirements and content of the
individual contract. As such, the clause
is necessary, when applicable, in the
contract to represent the agreement to
such terms by both parties, as they
relate to the specific contract. A general
statement of policy does not fulfill the
intent of this clause. Additionally, the
clause is available for use, when
applicable and necessary, and can be
modified to meet particular
E:\FR\FM\13SER2.SGM
13SER2
]]>Agencies
[Federal Register Volume 84, Number 178 (Friday, September 13, 2019)]
[Rules and Regulations]
[Pages 48498-48499]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-19558]
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System
48 CFR Parts 239 and 252
[Docket DARS-2019-0017]
RIN 0750-AK10
Defense Federal Acquisition Regulation Supplement: Modification
of DFARS Clause ``Orders for Facilities and Services'' (DFARS Case
2018-D045)
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 modify the text of an
existing DFARS clause to include the text of another DFARS clause 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: Effective September 13, 2019.
FOR FURTHER INFORMATION CONTACT: Ms. Carrie Moore, telephone 571-372-
6093.
SUPPLEMENTARY INFORMATION:
I. Background
DoD published a proposed rule in the Federal Register at 84 FR
18228 on April 30, 2019, to modify the DFARS clause 252.239-7004,
Orders for Facilities and Services, to incorporate the information in
DFARS clause 252.239-7005, Rates, Charges, and Services, and make minor
changes to simplify the clause text. Combining these clauses results in
252.239-7005 being removed from the DFARS. The rule implements a
recommendation of the DoD Regulatory Reform Task Force established
under Executive Order (E.O.) 13777, ``Enforcing the Regulatory Reform
Agenda.''
No public comments were received in response to the proposed rule.
No changes from the proposed rule are made in the final rule.
II. Applicability to Contracts at or Below the Simplified Acquisition
Threshold and for Commercial Items, Including Commercially Available
Off-the-Shelf Items
This rule does not create any new provisions or clauses. The rule
combines two clauses into a single clause and makes minor modifications
to simplify clause text. This rule does not change the applicability of
the affected clauses.
III. Executive Orders 12866 and 13563
Executive Orders (E.O.s) 12866 and E.O. 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. 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.
V. Regulatory Flexibility Act
A final regulatory flexibility analysis (FRFA) has been prepared
consistent with the Regulatory Flexibility Act, 5 U.S.C. 601, et seq.
The FRFA is summarized as follows:
DoD is amending DFARS clause 252.239-7004, Orders for Facilities
and Services, to include the text of DFARS clause 252.239-7005, Rates,
Charges, and Services. Combining these two clauses permits DFARS
252.239-7005 to be removed from the DFARS.
The objective of this rule is to streamline contract terms and
conditions pertaining to telecommunications services. The modification
of these DFARS clauses supports a recommendation from the DoD
Regulatory Reform Task Force. The modification of these DFARS clauses
implements a recommendation from the DoD Regulatory Reform Task Force
under E.O. 13771.
No public comments were received in response to the initial
regulatory flexibility analysis.
This rule is not expected to have a significant economic impact on
a substantial number of small entities within the meaning of the
Regulatory Flexibility Act, 5 U.S.C. 601, et seq., because it is simply
combining two existing clauses that address the same topic into a
single comprehensive clause.
Based on fiscal year (FY) 2018 data from the Federal Procurement
Data System, the Government awarded approximately 8,670 contracts and
orders for services under the Product and Supply Code (PSC) D3--
Information Technology and Telecommunications. Of the 8,670 contracts
and orders awarded, approximately 28% of the awards were made to 1,050
unique small businesses entities. The PSC D3 does not breakdown further
into information technology services and telecommunications services;
therefore, the number of contracts and orders awarded in FY 2018
exclusively for telecommunications services is estimated to be fewer
than the number awarded in FY 2018 under PSC D3 in its entirety.
This rule does not include any new reporting, recordkeeping, or
other compliance requirements for small businesses. This rule does not
duplicate, overlap, or conflict with any other Federal rules. There are
no known significant alternative approaches to the rule that would meet
the stated objectives. This rule is not expected to have a significant
economic impact on small entities.
VI. Paperwork Reduction Act
The rule does not contain any information collection requirements
that require the approval of the Office of Management and Budget under
the Paperwork Reduction Act (44 U.S.C. chapter 35).
List of Subjects in 48 CFR Parts 239 and 252
Government procurement.
Jennifer Lee Hawes,
Regulatory Control Officer, Defense Acquisition Regulations System.
Therefore, 48 CFR parts 239 and 252 are amended as follows:
0
1. The authority citation for parts 239 and 252 continues to read as
follows:
Authority: 41 U.S.C. 1303 and 48 CFR chapter 1.
PART 239-ACQUISITION OF INFORMATION TECHNOLOGY
239.7411 [Amended]
0
2. Amend section 239.7411 by--
0
a. Removing paragraph (a)(3); and
[[Page 48499]]
0
b. Redesignating paragraphs (a)(4) and (5) as paragraphs (a)(3) and
(4), respectively.
PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
0
3. Revise section 252.239-7004 to read as follows:
252.239-7004 Orders for Facilities and Services.
As prescribed in 239.7411(a), use the following clause:
ORDERS FOR FACILITIES AND SERVICES (SEP 2019)
(a) Definitions. As used in this clause--
Governmental regulatory body means the Federal Communications
Commission, any statewide regulatory body, or any body with less
than statewide jurisdiction when operating under the state
authority. Regulatory bodies whose decisions are not subject to
judicial appeal and regulatory bodies which regulate a company owned
by the same entity that creates the regulatory body are not
governmental regulatory bodies.
(b) The Contractor shall acknowledge a communication service
authorization or other type order for supplies and facilities by--
(1) Commencing performance after receipt of an order; or
(2) Written acceptance by a duly authorized representative.
(c) The Contractor shall furnish the services and facilities
under this agreement/contract in accordance with all applicable
tariffs, rates, charges, regulations, requirements, terms, and
conditions of--
(1) Service and facilities furnished or offered by the
Contractor to the general public or the Contractor's subscribers; or
(2) Service as lawfully established by a governmental regulatory
body.
(d) The Government will not prepay for services.
(e) For nontariffed services, the Contractor shall charge the
Government at the lowest rate and under the most favorable terms and
conditions for similar service and facilities offered to any other
customer.
(f) Recurring charges for services and facilities shall, in each
case, start with the satisfactory beginning of service or provision
of facilities or equipment and are payable monthly in arrears.
(g) Expediting charges are costs necessary to get services
earlier than normal. Examples are overtime pay or special shipment.
When authorized, expediting charges shall be the additional costs
incurred by the Contractor and the subcontractor. The Government
shall pay expediting charges only when--
(1) They are provided for in the tariff established by a
governmental regulatory body; or
(2) They are authorized in a communication service authorization
or other contractual document.
(h) When services normally provided are technically unacceptable
and the development, fabrication, or manufacture of special
equipment is required, the Government may--
(1) Provide the equipment; or
(2) Direct the Contractor to acquire the equipment or
facilities. If the Contractor acquires the equipment or facilities,
the acquisition shall be competitive, if practicable.
(i) If at any time the Government defers or changes its orders
for any of the services but does not cancel or terminate them, the
amount paid or payable to the Contractor for the services deferred
or modified shall be equitably adjusted under applicable tariffs
filed by the Contractor with the regulatory commission in effect at
the time of deferral or change. If no tariffs are in effect, the
Government and the Contractor shall equitably adjust the rates by
mutual agreement. Failure to agree on any adjustment shall be a
dispute concerning a question of fact within the meaning of the
Disputes clause of this contract.
(End of clause)
252.239-7005 [Removed and Reserved]
0
4. Remove and reserve section 252.239-7005.
[FR Doc. 2019-19558 Filed 9-12-19; 8:45 am]
BILLING CODE 5001-06-P
