Defense Federal Acquisition Regulation Supplement: Modification of DFARS Clause, “Advanced Payment Pool” (DFARS Case 2019-D013), 58364-58366 [2019-23803]
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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.
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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.
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[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
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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.
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Federal Register / Vol. 84, No. 211 / Thursday, October 31, 2019 / Proposed Rules
DFARS clause 252.232–7000 is
included in all contracts that will be
subject to an advance payment pool
agreement with a nonprofit organization
or educational institution. The DFARS
clause supplements the FAR clause by
notifying contractors that advance
payments will also be made in
accordance with the findings,
determinations, and authorization for
advance payment and the terms and
conditions of the advance payment pool
agreement.
DFARS clause 252.232–7001,
Disposition of Payments, is also
included in contracts that will be
subject to an advanced payment pool
agreement with a nonprofit organization
or educational institution, but only
when advance payments will not be
made by the disbursing office (i.e., when
a letter of credit has not been issued
under the contract and the contractor
must submit an invoice of voucher in
accordance with the FAR clause). The
DFARS clause supplements the FAR
clause by clarifying for contractors that
advance payments will be made via a
dual Treasury check forwarded to the
disbursing office for distribution to the
contractor.
This rule proposes to combine both
DFARS clauses, by adding text to
DFARS clause 252.232–7000 to clarify
for contractors when a dual Treasury
check will be used to make payment
under the contract. This information
was previously included in DFARS
clause 252.232–7001 and the associated
prescription. By combining these
clauses, DFARS clause 252.232–7001
may be removed from the DFARS.
This rule does not change any existing
processes or add any new requirements
for either DoD or the public. Both
DFARS clauses supplement the FAR
clause and clarify the terms and
conditions that apply when advance
payment pool agreements are authorized
under the contract. As such, these
DFARS clauses can be combined to
streamline and consolidate the
information provided to contractors
regarding advanced payment pool
agreements.
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
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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 clauses 252.232–7000 and
252.232–7001 and determined that the
clauses could be combined.
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
combines two clauses on the same topic
into a single clause and makes minor
modifications to simplify clause text.
This rule does not change the
applicability of the affected clauses,
which are not included in solicitations
and contracts that are valued at or below
the simplified acquisition threshold or
for commercial items, including
commercially available off-the-shelf
items.
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
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
PO 00000
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58365
analysis has been performed and is
summarized as follows:
DoD is proposing to modify the
DFARS clause 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. This rule is pursuant to
action taken by the DoD Regulatory
Reform Task Force.
The objective of this proposed rule is
to streamline and consolidate the
information provided to contractors
regarding advanced payment pool
agreements.
DoD does not collect data on the
number of contracts awarded to small
business entities that involve advanced
payment pool agreements with a
nonprofit organization or educational
institution; therefore, DoD is unable to
estimate the number of small entities
that will be impacted by this rule.
However, DoD does not expect small
businesses entities to be significantly
impacted by this rule, because the rule
does not change any existing processes
or impose any additional burdens.
Instead, the rule streamlines and
clarifies the information currently
provided under the two clauses.
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 2019–D013) 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).
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Federal Register / Vol. 84, No. 211 / Thursday, October 31, 2019 / Proposed Rules
List of Subjects in 48 CFR Parts 232 and
252
Defense Acquisition Regulations
System
Government procurement.
Jennifer Lee Hawes,
Regulatory Control Officer, Defense
Acquisition Regulations System.
48 CFR Parts 249 and 252
[Docket DARS–2019–0060]
Therefore, 48 CFR parts 232 and 252
are proposed to be amended as follows:
1. The authority citation for 48 CFR
parts 232 and 252 continues to read as
follows:
■
Authority: 41 U.S.C. 1303 and 48 CFR
chapter 1.
2. Amend section 232.412–70 by—
a. Removing paragraph (b);
■ b. Redesignating paragraph (c) as (b);
and
■ c. In the newly redesignated
paragraph (b), removing ‘‘(See subpart
219.71)’’ and adding ‘‘(see subpart
219.71)’’ in its place.
■
■
PART 252—SOLICITATION
PROVISIONS AND CONTRACT
CLAUSES
3. Amend section 252.232–7000 by—
a. Removing the clause date of ‘‘(DEC
1991)’’ and adding ‘‘(DATE)’’ in its
place;
■ b. In paragraph (b), removing ‘‘(insert
the name of the contractor)’’ and adding
‘‘[insert the name of the Contractor]’’ in
its place;
■ c. Adding paragraph (c).
The addition reads as follows:
■
■
Advance payment pool.
*
*
*
*
*
(c) When a letter of credit has not
been issued to the Contractor in
conjunction with the contract, payment
will be by a dual payee Treasury check
made payable to the Contractor or the
disbursing office in the Advance
Payment Pool Agreement and will be
forwarded to that disbursing office for
appropriate disposition.
*
*
*
*
*
252.232–700
[Removed and Reserved]
4. Remove and reserve section
252.232–7001.
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■
252.232–7005
[Amended]
5. Amend section 252.232–7005 in the
introductory text by removing
‘‘232.412–70(c)’’ and adding ‘‘232.412–
70(b)’’ in its place.
■
[FR Doc. 2019–23803 Filed 10–30–19; 8:45 am]
BILLING CODE 5001–06–P
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RIN 0750–AK56
Defense Federal Acquisition
Regulation Supplement: Modification
of DFARS Clause ‘‘Notification of
Anticipated Contract Termination or
Reduction’’ (DFARS Case 2019–D019)
Defense Acquisition
Regulations System, Department of
Defense (DoD).
ACTION: Proposed rule.
AGENCY:
PART 232—CONTRACT FINANCING
252.232–7000
I. Background
DEPARTMENT OF DEFENSE
DoD is proposing to amend
the Defense Federal Acquisition
Regulation Supplement (DFARS) to
update legal and DFARS citations in an
existing DFARS clause, conform the
clause text to the current DFARS
convention regarding the use of dollar
thresholds in contract clauses, and
remove clause text that is no longer
needed to implement the underlying
statutory language.
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–D019,
using any of the following methods:
Æ Federal eRulemaking Portal: https://
www.regulations.gov. Search for
‘‘DFARS Case 2018–D019.’’ Select
‘‘Comment Now’’ and follow the
instructions to submit a comment.
Please include ‘‘DFARS Case 2019–
D019’’ on any attached documents.
Æ Email: osd.dfars@mail.mil. Include
DFARS Case 2019–D019 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:
SUMMARY:
PO 00000
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Within the DFARS, statutory
acquisition-related dollar thresholds
that are subject to inflation adjustment
under 41 U.S.C. 1908 are identified in
the applicable DFARS policy section.
Any clause that relies on such a
threshold will reference the threshold in
the applicable DFARS policy section,
instead of citing the actual dollar value.
This drafting convention ensures that
inflation adjustments of statutory
acquisition-related thresholds apply to
existing contracts and subcontracts in
effect on the date of the adjustment.
To conform to this drafting
convention, this rule proposes to modify
the DFARS subpart 249.70 to add the
pertinent dollar thresholds of 10 U.S.C.
2501 note, Notice to Contractors and
Employees Upon Proposed Termination
or Substantial Reduction in Major
Defense Programs, and modify DFARS
clause 252.249–7002, Notification of
Anticipated Contract Termination or
Reduction, to add references to the
statutory thresholds cited at DFARS
subpart 249.70.
In addition, DFARS clause 252.249–
7002 advises contractors of the benefits
that may be available to affected
employees through the Job Training
Partnership Act (29 U.S.C. 1661 and
1662; Pub. L. 97–300). The Job Training
and Partnership Act was repealed and
superseded by the Workforce
Investment Partnership Act (29 U.S.C.
chapter 30; Pub. L. 105–220), which was
later repealed and superseded by the
Workforce Innovation and Opportunity
Act (29 U.S.C. chapter 32; Pub. L. 113–
128). This rule proposes to modify
DFARS clause 252.249–7002 to reflect
the current statute associated with the
10 U.S.C. 2501 note and make other
conforming changes.
II. Discussion and Analysis
DFARS clause 252.249–7002 is
included in all contracts under a major
defense program and implements the
requirements of 10 U.S.C. 2501 note.
The 10 U.S.C. 2501 note requires
contractors, upon receiving notice of
contract termination or a substantial
reduction in funding resulting from an
appropriations act, to provide notice of
the anticipated termination or
substantial reduction to first-tier
subcontractors with a subcontract of
$700,000 or more, and flow down the
notification to lower-tier subcontractors
with a subcontract of $150,000 or more.
To implement the dollar thresholds of
the 10 U.S.C. 2501 note in accordance
with the current DFARS drafting
convention, the rule adds the relevant
dollar thresholds in DFARS 249.7003,
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]]>Agencies
[Federal Register Volume 84, Number 211 (Thursday, October 31, 2019)]
[Proposed Rules]
[Pages 58364-58366]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-23803]
-----------------------------------------------------------------------
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)
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 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:
[cir] 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.
[cir] Email: [email protected]. Include DFARS Case 2019-D013 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 252.232-7000,
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.
[[Page 58365]]
DFARS clause 252.232-7000 is included in all contracts that will be
subject to an advance payment pool agreement with a nonprofit
organization or educational institution. The DFARS clause supplements
the FAR clause by notifying contractors that advance payments will also
be made in accordance with the findings, determinations, and
authorization for advance payment and the terms and conditions of the
advance payment pool agreement.
DFARS clause 252.232-7001, Disposition of Payments, is also
included in contracts that will be subject to an advanced payment pool
agreement with a nonprofit organization or educational institution, but
only when advance payments will not be made by the disbursing office
(i.e., when a letter of credit has not been issued under the contract
and the contractor must submit an invoice of voucher in accordance with
the FAR clause). The DFARS clause supplements the FAR clause by
clarifying for contractors that advance payments will be made via a
dual Treasury check forwarded to the disbursing office for distribution
to the contractor.
This rule proposes to combine both DFARS clauses, by adding text to
DFARS clause 252.232-7000 to clarify for contractors when a dual
Treasury check will be used to make payment under the contract. This
information was previously included in DFARS clause 252.232-7001 and
the associated prescription. By combining these clauses, DFARS clause
252.232-7001 may be removed from the DFARS.
This rule does not change any existing processes or add any new
requirements for either DoD or the public. Both DFARS clauses
supplement the FAR clause and clarify the terms and conditions that
apply when advance payment pool agreements are authorized under the
contract. As such, these DFARS clauses can be combined to streamline
and consolidate the information provided to contractors regarding
advanced payment pool agreements.
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 clauses 252.232-7000 and 252.232-
7001 and determined that the clauses could be combined.
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 combines two clauses on the same topic into a single clause
and makes minor modifications to simplify clause text. This rule does
not change the applicability of the affected clauses, which are not
included in solicitations and contracts that are valued at or below the
simplified acquisition threshold or for commercial items, including
commercially available off-the-shelf items.
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
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:
DoD is proposing to modify the DFARS clause 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. This rule is
pursuant to action taken by the DoD Regulatory Reform Task Force.
The objective of this proposed rule is to streamline and
consolidate the information provided to contractors regarding advanced
payment pool agreements.
DoD does not collect data on the number of contracts awarded to
small business entities that involve advanced payment pool agreements
with a nonprofit organization or educational institution; therefore,
DoD is unable to estimate the number of small entities that will be
impacted by this rule. However, DoD does not expect small businesses
entities to be significantly impacted by this rule, because the rule
does not change any existing processes or impose any additional
burdens. Instead, the rule streamlines and clarifies the information
currently provided under the two clauses.
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 2019-D013)
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).
[[Page 58366]]
List of Subjects in 48 CFR Parts 232 and 252
Government procurement.
Jennifer Lee Hawes,
Regulatory Control Officer, Defense Acquisition Regulations System.
Therefore, 48 CFR parts 232 and 252 are proposed to be amended as
follows:
0
1. The authority citation for 48 CFR parts 232 and 252 continues to
read as follows:
Authority: 41 U.S.C. 1303 and 48 CFR chapter 1.
PART 232--CONTRACT FINANCING
0
2. Amend section 232.412-70 by--
0
a. Removing paragraph (b);
0
b. Redesignating paragraph (c) as (b); and
0
c. In the newly redesignated paragraph (b), removing ``(See subpart
219.71)'' and adding ``(see subpart 219.71)'' in its place.
PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
0
3. Amend section 252.232-7000 by--
0
a. Removing the clause date of ``(DEC 1991)'' and adding ``(DATE)'' in
its place;
0
b. In paragraph (b), removing ``(insert the name of the contractor)''
and adding ``[insert the name of the Contractor]'' in its place;
0
c. Adding paragraph (c).
The addition reads as follows:
252.232-7000 Advance payment pool.
* * * * *
(c) When a letter of credit has not been issued to the Contractor
in conjunction with the contract, payment will be by a dual payee
Treasury check made payable to the Contractor or the disbursing office
in the Advance Payment Pool Agreement and will be forwarded to that
disbursing office for appropriate disposition.
* * * * *
252.232-700 [Removed and Reserved]
0
4. Remove and reserve section 252.232-7001.
252.232-7005 [Amended]
0
5. Amend section 252.232-7005 in the introductory text by removing
``232.412-70(c)'' and adding ``232.412-70(b)'' in its place.
[FR Doc. 2019-23803 Filed 10-30-19; 8:45 am]
BILLING CODE 5001-06-P
