Defense Federal Acquisition Regulation Supplement: Modification of DFARS Clause, “Payment for Subline Items Not Separately Priced” (DFARS Case 2018-D050), 58362-58364 [2019-23801]

Download as PDF khammond on DSKJM1Z7X2PROD with PROPOSALS 58362 Federal Register / Vol. 84, No. 211 / Thursday, October 31, 2019 / Proposed Rules through (14) of this section, as appropriate; or * * * * * (3) The owner or operator of an affected source or process unit may establish expanded or replacement operating limits for the monitoring parameters listed in paragraphs (e)(2) and (10) through (14) of this section and established in paragraph (j)(1) or (2) of this section during subsequent performance tests using the test methods in § 63.865. * * * * * (5) New, expanded, or replacement operating limits for the monitoring parameter values listed in paragraphs (e)(2) and (10) through (14) of this section should be determined as described in paragraphs (j)(5)(i) and (ii) of this section. (i) The owner or operator of an affected source or process unit that uses a wet scrubber must set minimum operating limits as described in paragraph (j)(5)(i)(A) and (B) of this section. (A) Set the minimum scrubbing liquid flow rate operating limit as the lowest of the 1-hour average scrubbing liquid flow rate values associated with each test run demonstrating compliance with the applicable emission limit in § 63.862. (B) Set the minimum scrubber pressure drop operating limit as the lowest of the 1-hour average pressure drop values associated with each test run demonstrating compliance with the applicable emission limit in § 63.862; or for a smelt dissolving tank dynamic wet scrubber operating at ambient pressure or for low energy entrainment scrubbers where fan speed does not vary, set the minimum operating limit using one of the methods in paragraph (j)(5)(i)(B)(1) through (3) of this section. (1) The minimum fan amperage operating limit must be set as the midpoint between the lowest of the 1hour average fan amperage values associated with each test run demonstrating compliance with the applicable emission limit in § 63.862 and the no-load amperage value. The no-load amperage value must be determined using manufacturers specifications, or by performing a noload test of the fan motor for each smelt dissolving tank scrubber. It must be verified that the scrubber fan is operating within 5 percent of the design RPM during the emissions performance test; or (2) The minimum percent full load amperage (PFLA) to the fan motor must be set as the percent of full load amps under no-load, plus 10 percent. The VerDate Sep<11>2014 16:20 Oct 30, 2019 Jkt 250001 PFLA is calculated by dividing the noload amperage value by the highest of the 1-hour average fan amperage values associated with each test run demonstrating compliance with the applicable emission limit in § 63.862 multiplied by 100. The no-load amperage value must be determined using manufacturers specifications, or by performing a no-load test of the fan motor for each smelt dissolving tank scrubber. It must be verified that the scrubber fan is operating within 5 percent of the design RPM during the emissions performance test; or (3) The minimum RPM must be set as 95 percent of the design RPM. * * * * * ■ 8. Section 63.867 is amended by revising paragraph (c)(3)(iii)(C)(1) to read as follows: § 63.867 Reporting requirements. * * * * * (c) * * * (3) * * * (iii) * * * (C) * * * (1) The operating limits established during the performance test for scrubbing liquid flow rate and pressure drop across the scrubber (or alternatively, fan amperage or RPM if used for smelt dissolving tank scrubbers). * * * * * [FR Doc. 2019–23616 Filed 10–30–19; 8:45 am] BILLING CODE 6560–50–P DEPARTMENT OF DEFENSE Defense Acquisition Regulations System Comments on the proposed rule should be submitted in writing to the address shown below on or before December 30, 2019, to be considered in the formation of a final rule. ADDRESSES: Submit comments identified by DFARS Case 2018–D050, 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–D050’’ under the heading ‘‘Enter keyword or ID’’ and selecting ‘‘Search.’’ Select the link ‘‘Submit a Comment’’ that corresponds with ‘‘DFARS Case 2018– D050.’’ Follow the instructions provided at the ‘‘Submit a Comment’’ screen. Please include your name, company name (if any), and ‘‘DFARS Case 2018– D050’’ on your attached document. Æ Email: osd.dfars@mail.mil. Include DFARS Case 2018–D050 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: DATES: I. Background 48 CFR Parts 204 and 252 [Docket DARS–2019–0049] RIN 0750–AK14 Defense Federal Acquisition Regulation Supplement: Modification of DFARS Clause, ‘‘Payment for Subline Items Not Separately Priced’’ (DFARS Case 2018–D050) 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 clarify its intent and conform its language to current DFARS terminology, pursuant to action taken by the Regulatory Reform Task Force. SUMMARY: PO 00000 Frm 00022 Fmt 4702 Sfmt 4702 This rule proposes to modify the clause at DFARS 252.204–7002, Payment for Subline Items Not Separately Priced, to simplify the clause text and conform terminology used in the text to current Government contract line item structure terminology. This update will clarify the intent of the clause, as it pertains to payment on contracts that contain not separately priced (NSP) items, when applicable. The rule also adds a prescription for DFARS 252.204–7002 in the applicable DFARS subpart 204.7109, Contract Clauses. II. Discussion and Analysis DFARS clause 252.204–7002 is included in solicitations and contracts when the value of a NSP contract line or subline item is included in the price of another contract line or subline item, and it is necessary to withhold payment E:\FR\FM\31OCP1.SGM 31OCP1 khammond on DSKJM1Z7X2PROD with PROPOSALS Federal Register / Vol. 84, No. 211 / Thursday, October 31, 2019 / Proposed Rules on the priced contract line or subline item until the related NSP item has been delivered. The clause prohibits contractors from billing the Government for a priced item that contains the value of a NSP item until the related NSP items have also been delivered to and accepted by the Government. While use of the clause is discretionary, it is beneficial to DoD in situations when NSP items are individual deliverables on a contract, even though the NSP items are a part or component of a priced item on another contract line or subline item. Currently, the clause text can be read as prohibiting the contractor from billing for any portion of a contract line or subline item that is associated with an NSP item until all of the NSP items have also been delivered to and accepted by the Government. It is not the intent of the Government to prohibit any and all payment on such contract line or subline items until all deliveries have been made and accepted for both the priced and NSP items. This rule simplifies the clause text to clarify that a contractor can bill the Government for the individual unit price of a delivered item, once the NSP item associated with the individually priced item has also been delivered and accepted by the Government. The rule also conforms the text of the clause to the current contract line item structure terminology by replacing ‘‘contract line item’’ with ‘‘contract line or subline item’’ and adds a prescription for the DFARS clause in the applicable section of DFARS 204.71. 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. No public comments were received on these clauses. Subsequently, the DoD Task Force reviewed the requirements of DFARS clause 252.204–7002 and determined that the clause should be revised. VerDate Sep<11>2014 16:20 Oct 30, 2019 Jkt 250001 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. The rule updates language used in the clause text to clarify its intent and conform with current contract line item structure terminology. This rule does not change the applicability of the affected clause. 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 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 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 for contractors or changing any existing policies and practices. 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 modify the text of DFARS clause 252.204–7002, Payment for Subline Items Not Separately Priced, to simplify and conform the clause text to current Government contract line item structure terminology, pursuant to action taken by the Regulatory Reform Task Force. The objective of this proposed rule is to clarify the intent of the clause for contractors, when submitting invoices under contracts that contain items that are not separately priced (NSP). The modification of these DFARS clauses PO 00000 Frm 00023 Fmt 4702 Sfmt 4702 58363 implements a recommendation from the DoD Regulatory Reform Task Force. Based on an average of data for fiscal year 2016 through 2018 from the Federal Procurement Data System and Electronic Document Access, DoD awards annually approximately 12,435 contracts that include DFARS clause 252.204–7002 to 2,544 unique entities. Of the 12,435 awards, approximately 4,924 contracts (40 percent) are awarded to approximately 1,564 unique small business entities (60 percent). However, based on the available data and the objective of the rule, DoD does not anticipate that this proposed rule will significantly impact small business entities. This proposed 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 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–D050) in correspondence. 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 204 and 252 Government procurement. Jennifer Lee Hawes, Regulatory Control Officer, Defense Acquisition Regulations System. Therefore, 48 CFR parts 204 and 252 are proposed to be amended as follows: ■ 1. The authority citation for 48 CFR parts 204 and 252 continues to read as follows: Authority: 41 U.S.C. 1303 and 48 CFR chapter 1. PART 204—ADMINISTRATIVE MATTERS ■ 2. Amend section 204.7104–1 by— E:\FR\FM\31OCP1.SGM 31OCP1 58364 Federal Register / Vol. 84, No. 211 / Thursday, October 31, 2019 / Proposed Rules a. In paragraph (b)(3)(iii), removing ‘‘subsection’’ and adding ‘‘section’’ in its place; ■ b. Revising paragraph (b)(3)(iv). The revision reads as follows: (End of clause) ■ 204.7104–1 252.204–7006 Criteria for establishing. * * * * * (b) * * * (3) * * * (iv) When the price for items not separately priced is included in the price of another contract line or subline item, it may be necessary to withhold payment on the priced contract line or subline item until the included line or subline items that are not separately priced have been delivered. See the clause at 252.204–7002, Payment for Contract Line or Subline Items Not Separately Priced. ■ 3. Revise section 204.7109 to read as follows: 204.7109 Contract clauses. (a) Use the clause at 252.204–7002, Payment for Contract Line or Subline Items Not Separately Priced, in solicitations and contracts when the price for items not separately priced is included in the price of another contract line or subline item. (b) Use the clause at 252.204–7006, Billing Instructions, in solicitations and contracts if Section G includes— (1) Any of the standard payment instructions at PGI 204.7108(b)(2); or (2) Other payment instructions, in accordance with PGI 204.7108(d)(12), that require contractor identification of the contract line item(s) on the payment request. PART 252—SOLICITATION PROVISIONS AND CONTRACT CLAUSES 4. Revise section 252.204–7002 to read as follows: ■ 252.204–7002 Payment for Contract Line or Subline Items Not Separately Priced. khammond on DSKJM1Z7X2PROD with PROPOSALS As prescribed in 204.7109(a), use the following clause: Payment for Contract Line or Subline Items Not Separately Priced (Date) (a) If the schedule in this contract contains any contract line or subline items identified as not separately priced (NSP), it means that the unit price for the NSP line or subline item is included in the unit price of another, related line or subline item. (b) The Contractor shall not invoice the Government for an item that includes in its price an NSP item until— (1) The Contractor has also delivered the NSP item included in the price of the item being invoiced; and (2) The Government has accepted the NSP item. (c) This clause does not apply to technical data. VerDate Sep<11>2014 16:20 Oct 30, 2019 Jkt 250001 [Amended] 5. Amend section 252.204–7006 introductory text by removing ‘‘204.7109’’ and adding ‘‘204.7109(b)’’ in its place. ■ [FR Doc. 2019–23801 Filed 10–30–19; 8:45 am] BILLING CODE 5001–06–P DEPARTMENT OF DEFENSE Defense Acquisition Regulations System 48 CFR Parts 232 and 252 [Docket DARS–2019–0059] RIN 0750–AK50 Defense Federal Acquisition Regulation Supplement: Modification of DFARS Clause, ‘‘Advanced Payment Pool’’ (DFARS Case 2019–D013) 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 another DFARS clause on the same subject in an effort to streamline contract terms and conditions for contractors. DATES: Comments on the proposed rule should be submitted in writing to the address shown below on or before December 30, 2019, to be considered in the formation of a final rule. ADDRESSES: Submit comments identified by DFARS Case 2019–D013, using any of the following methods: Æ Federal eRulemaking Portal: https:// www.regulations.gov. Search for ‘‘DFARS Case 2019–D013.’’ Select ‘‘Comment Now’’ and follow the instructions to submit a comment. Please include ‘‘DFARS Case 2019– D013’’ on any attached documents. Æ Email: osd.dfars@mail.mil. Include DFARS Case 2019–D013 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, SUMMARY: PO 00000 Frm 00024 Fmt 4702 Sfmt 4702 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 rule proposes to modify the clause at DFARS 252.232–7000, Advance Payment Pool, to incorporate the information currently included in DFARS clause 252.232–7001, Disposition of Payments, and make minor changes to simplify the clause text. Combining these clauses will result in 252.232–7001 being removed from the DFARS. II. Discussion and Analysis When applying for advance payments under a contract in accordance with Federal Acquisition Regulation (FAR) 32.408, contractors must provide the name and address of the financial institution, also referred to as the ‘‘disbursing office,’’ at which the contractor will establish a special account to serve as the depository for the advance payments. FAR 32.406(b) requires the Government to use either a letter of credit or a direct Treasury check to make advance payments to a contractor, unless a waiver is obtained from the Treasury Department. A letter of credit is issued by the Government when the contract and the contractor meet certain criteria. The letter of credit enables the contractor to withdraw Government funds from the special account to cover the contractor’s own disbursements of cash for contract performance. If the contract and/or contractor cannot meet the criteria, a letter of credit is not issued, and the contractor must submit a properly certified invoice or voucher to the Government for approval. Upon approval of the invoice or voucher, a dual Treasury check is issued to the disbursing office for dissemination to the contractor’s special account. Prior to contract award and in accordance with FAR 32.4, the Government executes a determination supported by a written findings, authorization for the use of advance payment, and an agreement identifying the terms and conditions for advance payment under the contract. FAR clause 52.232–12, Advanced Payments, is included in all solicitations and contracts under which the Government will provide advance payments. The FAR clause advises contractors that advance payment will be made via a letter of credit or submission of a properly certified and approved invoice. E:\FR\FM\31OCP1.SGM 31OCP1

Agencies

[Federal Register Volume 84, Number 211 (Thursday, October 31, 2019)]
[Proposed Rules]
[Pages 58362-58364]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-23801]


=======================================================================
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DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Parts 204 and 252

[Docket DARS-2019-0049]
RIN 0750-AK14


Defense Federal Acquisition Regulation Supplement: Modification 
of DFARS Clause, ``Payment for Subline Items Not Separately Priced'' 
(DFARS Case 2018-D050)

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 DFARS 
clause to clarify its intent and conform its language to current DFARS 
terminology, 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 December 30, 2019, to be 
considered in the formation of a final rule.

ADDRESSES: Submit comments identified by DFARS Case 2018-D050, 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-D050'' 
under the heading ``Enter keyword or ID'' and selecting ``Search.'' 
Select the link ``Submit a Comment'' that corresponds with ``DFARS Case 
2018-D050.'' Follow the instructions provided at the ``Submit a 
Comment'' screen. Please include your name, company name (if any), and 
``DFARS Case 2018-D050'' on your attached document.
    [cir] Email: [email protected]. Include DFARS Case 2018-D050 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 rule proposes to modify the clause at DFARS 252.204-7002, 
Payment for Subline Items Not Separately Priced, to simplify the clause 
text and conform terminology used in the text to current Government 
contract line item structure terminology. This update will clarify the 
intent of the clause, as it pertains to payment on contracts that 
contain not separately priced (NSP) items, when applicable. The rule 
also adds a prescription for DFARS 252.204-7002 in the applicable DFARS 
subpart 204.7109, Contract Clauses.

II. Discussion and Analysis

    DFARS clause 252.204-7002 is included in solicitations and 
contracts when the value of a NSP contract line or subline item is 
included in the price of another contract line or subline item, and it 
is necessary to withhold payment

[[Page 58363]]

on the priced contract line or subline item until the related NSP item 
has been delivered. The clause prohibits contractors from billing the 
Government for a priced item that contains the value of a NSP item 
until the related NSP items have also been delivered to and accepted by 
the Government. While use of the clause is discretionary, it is 
beneficial to DoD in situations when NSP items are individual 
deliverables on a contract, even though the NSP items are a part or 
component of a priced item on another contract line or subline item.
    Currently, the clause text can be read as prohibiting the 
contractor from billing for any portion of a contract line or subline 
item that is associated with an NSP item until all of the NSP items 
have also been delivered to and accepted by the Government. It is not 
the intent of the Government to prohibit any and all payment on such 
contract line or subline items until all deliveries have been made and 
accepted for both the priced and NSP items. This rule simplifies the 
clause text to clarify that a contractor can bill the Government for 
the individual unit price of a delivered item, once the NSP item 
associated with the individually priced item has also been delivered 
and accepted by the Government.
    The rule also conforms the text of the clause to the current 
contract line item structure terminology by replacing ``contract line 
item'' with ``contract line or subline item'' and adds a prescription 
for the DFARS clause in the applicable section of DFARS 204.71.
    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. No public comments 
were received on these clauses. Subsequently, the DoD Task Force 
reviewed the requirements of DFARS clause 252.204-7002 and determined 
that the clause should be revised.

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. 
The rule updates language used in the clause text to clarify its intent 
and conform with current contract line item structure terminology. This 
rule does not change the applicability of the affected clause.

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 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

    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 for contractors 
or changing any existing policies and practices. 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 modify the text of DFARS 
clause 252.204-7002, Payment for Subline Items Not Separately Priced, 
to simplify and conform the clause text to current Government contract 
line item structure terminology, pursuant to action taken by the 
Regulatory Reform Task Force.
    The objective of this proposed rule is to clarify the intent of the 
clause for contractors, when submitting invoices under contracts that 
contain items that are not separately priced (NSP). The modification of 
these DFARS clauses implements a recommendation from the DoD Regulatory 
Reform Task Force.
    Based on an average of data for fiscal year 2016 through 2018 from 
the Federal Procurement Data System and Electronic Document Access, DoD 
awards annually approximately 12,435 contracts that include DFARS 
clause 252.204-7002 to 2,544 unique entities. Of the 12,435 awards, 
approximately 4,924 contracts (40 percent) are awarded to approximately 
1,564 unique small business entities (60 percent). However, based on 
the available data and the objective of the rule, DoD does not 
anticipate that this proposed rule will significantly impact small 
business entities.
    This proposed 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 
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-D050) 
in correspondence.

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 204 and 252

    Government procurement.

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

    Therefore, 48 CFR parts 204 and 252 are proposed to be amended as 
follows:

0
1. The authority citation for 48 CFR parts 204 and 252 continues to 
read as follows:

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

PART 204--ADMINISTRATIVE MATTERS

0
2. Amend section 204.7104-1 by--

[[Page 58364]]

0
a. In paragraph (b)(3)(iii), removing ``subsection'' and adding 
``section'' in its place;
0
b. Revising paragraph (b)(3)(iv).
    The revision reads as follows:


204.7104-1   Criteria for establishing.

* * * * *
    (b) * * *
    (3) * * *
    (iv) When the price for items not separately priced is included in 
the price of another contract line or subline item, it may be necessary 
to withhold payment on the priced contract line or subline item until 
the included line or subline items that are not separately priced have 
been delivered. See the clause at 252.204-7002, Payment for Contract 
Line or Subline Items Not Separately Priced.
0
3. Revise section 204.7109 to read as follows:


204.7109   Contract clauses.

    (a) Use the clause at 252.204-7002, Payment for Contract Line or 
Subline Items Not Separately Priced, in solicitations and contracts 
when the price for items not separately priced is included in the price 
of another contract line or subline item.
    (b) Use the clause at 252.204-7006, Billing Instructions, in 
solicitations and contracts if Section G includes--
    (1) Any of the standard payment instructions at PGI 204.7108(b)(2); 
or
    (2) Other payment instructions, in accordance with PGI 
204.7108(d)(12), that require contractor identification of the contract 
line item(s) on the payment request.

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

0
4. Revise section 252.204-7002 to read as follows:


252.204-7002   Payment for Contract Line or Subline Items Not 
Separately Priced.

    As prescribed in 204.7109(a), use the following clause:

Payment for Contract Line or Subline Items Not Separately Priced (Date)

    (a) If the schedule in this contract contains any contract line 
or subline items identified as not separately priced (NSP), it means 
that the unit price for the NSP line or subline item is included in 
the unit price of another, related line or subline item.
    (b) The Contractor shall not invoice the Government for an item 
that includes in its price an NSP item until--
    (1) The Contractor has also delivered the NSP item included in 
the price of the item being invoiced; and
    (2) The Government has accepted the NSP item.
    (c) This clause does not apply to technical data.
(End of clause)


252.204-7006   [Amended]

0
5. Amend section 252.204-7006 introductory text by removing 
``204.7109'' and adding ``204.7109(b)'' in its place.

[FR Doc. 2019-23801 Filed 10-30-19; 8:45 am]
 BILLING CODE 5001-06-P

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