Defense Federal Acquisition Regulation Supplement: Expediting Contract Closeout (DFARS Case 2017-D042), 19719-19720 [2020-06724]
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Federal Register / Vol. 85, No. 68 / Wednesday, April 8, 2020 / Proposed Rules
225.7703–2
[Amended]
PART 228—BONDS AND INSURANCE
228.102–1
13. Amend section 228.102–1, in the
introductory text and paragraph (1), by
removing ‘‘$35,000’’ and adding
‘‘$40,000’’ in its place in both places.
PART 236—CONSTRUCTION AND
ARCHITECT–ENGINEER CONTRACTS
[Amended]
14. Amend section 236.303–1 in
paragraph (a)(4)(i) introductory text and
(a)(4)(ii) by removing ‘‘$4 million’’ and
adding ‘‘$4.5 million’’ in its place in
both places.
■
PART 237—SERVICE CONTRACTING
237.170–2
[Amended]
15. Amend section 237.170–2 in
paragraphs (a)(1) and (2) by removing
‘‘$93 million’’ and adding ‘‘$100
million’’ in its place in both places.
■
PART 246—QUALITY ASSURANCE
16. Amend section 246.402
introductory text by removing
‘‘$300,000’’ and adding ‘‘$350,000’’ in
its place.
■
PART 250—EXTRAORDINARY
CONTRACTUAL ACTIONS AND THE
SAFETY ACT
250.102–1
[Amended]
17. Amend section 250.102–1 in
paragraph (b) by removing ‘‘$70,000’’
and adding ‘‘$75,000’’ in its place.
[Amended]
18. Amend section 250.102–1–70 in
paragraph (b)(1) by removing ‘‘$70,000’’
and adding ‘‘$75,000’’ in its place.
■
lotter on DSKBCFDHB2PROD with PROPOSALS
PART 252—SOLICITATION
PROVISIONS AND CONTRACT
CLAUSES
252.225–7003
[Amended]
19. Amend section 252.225–7003 by—
a. Removing the clause date ‘‘(OCT
2015)’’ and adding ‘‘(DATE)’’ in its
place; and
■ b. In paragraph (b)(1), removing
‘‘$13.5 million’’ and adding ‘‘$15
million’’ in its place; and
■
■
VerDate Sep<11>2014
17:42 Apr 07, 2020
BILLING CODE 5001–06–P
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations
System
48 CFR Parts 204, 232, and 252
Jkt 250001
RIN 0750–AJ52
Defense Acquisition Regulation
System, Department of Defense (DoD).
ACTION: Proposed rule.
AGENCY:
DoD is proposing to amend
the Defense Federal Acquisition
Regulation Supplement to provide for
expedited contract closeout through a
waiver by the contractor and the
Government of entitlement to any
residual dollar amounts that are due to
either party at the time of final contract
closeout. The changes are necessary to
establish an expedited contract closeout
agreement that will save administrative
costs for both the contractor and the
Government.
SUMMARY:
Comments on the proposed rule
should be submitted in writing using
one of the methods shown in ADDRESSES
on or before June 8, 2020, to be
considered in the formation of a final
rule.
DATES:
Submit comments in
response to DFARS CASE 2017–D042 by
any of the following methods:
• Regulations.gov: https://
www.regulations.gov. Submit comments
via Federal Rulemaking portal by
entering ‘‘DFARS Case 2017–D042’’
under the heading ‘‘Enter keyword of
ID’’ and selecting ‘‘Search.’’ Select the
link ‘‘Submit a Comment’’ that
corresponds with ‘‘DFARS Case 2017–
D042.’’ Follow the instructions provided
at the ‘‘Submit a Comment’’ screen.
Please include your name, company
name (if any), and ‘‘DFARS Case 2017–
D042’’ on your attached document.
• Email: osd.dfars@mail.mil. Include
DFARS Case 2017–D042 in the subject
line of the message.
• Fax: 571–372–6094.
• Mail: Defense Acquisition
Regulations System, Attn: Ms. Kimberly
Bass, OUSD(A&S)DPC/DARS, Room
PO 00000
Frm 00019
Fmt 4702
3B941, 3060 Defense Pentagon,
Washington, DC 20301–3060.
Comments received generally will be
posted without change to https://
www.regulation.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.
Kimberly Bass, telephone 571–372–
6174.
SUPPLEMENTARY INFORMATION:
Defense Federal Acquisition
Regulation Supplement: Expediting
Contract Closeout (DFARS Case 2017–
D042)
ADDRESSES:
■
250.102–1–70
[FR Doc. 2020–06733 Filed 4–7–20; 8:45 am]
[Docket DARS–2019–0047]
[Amended]
■
236.303–1
c. In paragraph (b)(2)(i) removing
‘‘$700,000’’ and adding ‘‘$750,000’’ in
its place.
■
12. Amend section 225.7703–2 by—
a. In paragraph (b)(2)(i) by removing
‘‘$93 million’’ and adding ‘‘$100
million’’ in its place; and
■ b. In paragraph (b)(2)(ii) introductory
text by removing ‘‘Director, Defense
Procurement and Acquisition Policy’’
and adding ‘‘Principal Director, Defense
Pricing and Contracting’’ in its place
and by removing ‘‘$93 million’’ and
adding ‘‘$100 million’’ in its place.
■
■
19719
Sfmt 4702
I. Background
DoD is proposing to add a new
DFARS contract clause that allows for
an expedited contract closeout
agreement between the contractor and
the Government that will save
administrative costs for both the
contractor and the Government. The
clause will be used when the
contracting officer intends to expedite
the contract closeout process by having
the contractor and the Government
waive entitlement to any residual dollar
amounts up to $1,000 at the time of final
contract closeout. The objective of the
rule is to reduce the amount of time and
money expended on reconciling small
dollar residual dollar amounts in order
to close out contracts.
II. Discussion and Analysis
The proposed DFARS clause 252.204–
70XX, Expediting Contract Closeout,
provides an agreement by the
Government and contractor to waive
any entitlement that otherwise might
accrue to either party in any amount of
$1,000 or less at the time of final
contract closeout. The new clause will
be prescribed at DFARS 204.804–70 for
use in solicitations and contracts,
including those under FAR part 12
procedures for acquisition of
commercial items, when the contracting
officer intends to expedite contract
closeout through such a waiver.
III. Applicability to Contracts at or
Below the Simplified Acquisition
Threshold and for Commercial Items,
Including Commercially Available Offthe-Shelf Items
This rule proposes to create a new
clause DFARS 252.204–70XX,
Expediting Contract Closeout. DoD
plans to apply this clause to
solicitations and contracts for the
acquisition of commercial items,
including commercially available offthe-shelf items, and to acquisitions
valued at or below the simplified
E:\FR\FM\08APP1.SGM
08APP1
19720
Federal Register / Vol. 85, No. 68 / Wednesday, April 8, 2020 / Proposed Rules
acquisition threshold. These categories
of acquisitions are those most likely to
benefit from expedited contract
closeout.
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, or reducing costs, or
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.
lotter on DSKBCFDHB2PROD with PROPOSALS
V. Executive Order 13771
This rule is not expected to be subject
to E.O. 13771, because this rule is not
a significant regulatory action.
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. An initial regulatory flexibility
analysis (IRFA) has been performed and
is summarized as follows:
The Department of Defense (DoD)
proposes amending the Defense Federal
Acquisition Regulation Supplement
(DFARS) to add a new contract clause
252.204–70XX, Expediting Contract
Closeout, to expedite contract closeout
on contracts with a residual dollar
amount of $1,000 or less at the time of
final closeout.
The objective of the proposed clause
is to facilitate expedited contract
closeout and avoid excessive
administrative costs for both the
contractor and the Government to
reconcile relatively small residual dollar
amounts in order to close out a contract.
The proposed rule will apply to small
entities that have been or will be
awarded contracts, including those
under FAR part 12 procedures for the
acquisition of commercial items. DoD is
unable to estimate the total number of
small entities that have DoD contracts
with a residual amount of $1,000 or less;
however, the Defense Contract
Management Agency (DCMA) was able
to provide information on contracts
administered by DCMA. According to
VerDate Sep<11>2014
17:42 Apr 07, 2020
Jkt 250001
data available in Mechanization of
Contract Administration Services/
Shared Data Warehouse as of June 2019,
there were 11,831 flexibly-priced
contracts with residual dollar amounts
of $1,000 or less, of which 3,507
contracts were awarded to small
entities. The average residual amount on
these contracts was $70.
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).
The 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 requirements
of the proposed rule.
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 2017–D042), in
correspondence.
VIII. 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,
212, and 252
Government procurement.
Jennifer Lee Hawes,
Regulatory Control Officer, Defense
Acquisition Regulations System.
Therefore, 48 CFR parts 204, 212, and
252 are proposed to be amended as
follows:
■ 1. The authority citation for 48 CFR
parts 204, 212, and 252 continues to
read as follows:
Authority: 41 U.S.C. 1303 and 48 CFR
chapter 1.
part 12 procedures for the acquisition of
commercial items, when the contracting
officer intends to expedite contract
closeout through the waiver of
entitlement to any residual dollar
amounts by the contractor and the
Government at the time of final contract
closeout.
PART 212—ACQUISITION OF
COMMERCIAL ITEMS
3. Amend section 212.301 by adding
paragraph (f)(ii)(K) to read as follows:
■
212.301 Solicitation provisions and
contract clauses for the acquisition of
commercial items.
(f) * * *
(ii) * * *
(K) Use the clause at 252.204–70XX,
Expediting Contract Closeout, as
prescribed in 204.804–70.
*
*
*
*
*
PART 252—SOLICITATION
PROVISIONS AND CONTRACT
CLAUSES
4. Add section 252.204–70XX to read
as follows:
■
252.204–70XX
closeout.
Expediting contract
As prescribed in 204.804–70, use the
following clause:
Expediting Contract Closeout (DATE)
(a) Both the Government and the
Contractor agree to waive any entitlement
that otherwise might accrue to either party in
any residual dollar amount of $1,000 or less
at the time of final contract closeout.
(b) A residual dollar amount includes all
money owed to either party at the end of the
contract and as a result of the contract,
excluding amounts connected in any way
with taxation or a violation of law or
regulation.
(c) For purposes of determining residual
dollar amounts, offsets (for example across
multiple contracts or orders) may be
considered to the extent permitted by law.
(End of clause)
[FR Doc. 2020–06724 Filed 4–7–20; 8:45 am]
BILLING CODE 5001–06–P
PART 204—ADMINISTRATIVE AND
INFORMATION MATTERS
2. Add section 204.804–70 to read as
follows:
■
204.804–70
Contract clause.
Use the clause at 252.204–70XX,
Expediting Contract Closeout, in
solicitations and contracts, including
solicitations and contracts using FAR
PO 00000
Frm 00020
Fmt 4702
Sfmt 9990
E:\FR\FM\08APP1.SGM
08APP1
]]>Agencies
[Federal Register Volume 85, Number 68 (Wednesday, April 8, 2020)]
[Proposed Rules]
[Pages 19719-19720]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-06724]
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System
48 CFR Parts 204, 232, and 252
[Docket DARS-2019-0047]
RIN 0750-AJ52
Defense Federal Acquisition Regulation Supplement: Expediting
Contract Closeout (DFARS Case 2017-D042)
AGENCY: Defense Acquisition Regulation System, Department of Defense
(DoD).
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: DoD is proposing to amend the Defense Federal Acquisition
Regulation Supplement to provide for expedited contract closeout
through a waiver by the contractor and the Government of entitlement to
any residual dollar amounts that are due to either party at the time of
final contract closeout. The changes are necessary to establish an
expedited contract closeout agreement that will save administrative
costs for both the contractor and the Government.
DATES: Comments on the proposed rule should be submitted in writing
using one of the methods shown in ADDRESSES on or before June 8, 2020,
to be considered in the formation of a final rule.
ADDRESSES: Submit comments in response to DFARS CASE 2017-D042 by any
of the following methods:
Regulations.gov: https://www.regulations.gov. Submit
comments via Federal Rulemaking portal by entering ``DFARS Case 2017-
D042'' under the heading ``Enter keyword of ID'' and selecting
``Search.'' Select the link ``Submit a Comment'' that corresponds with
``DFARS Case 2017-D042.'' Follow the instructions provided at the
``Submit a Comment'' screen. Please include your name, company name (if
any), and ``DFARS Case 2017-D042'' on your attached document.
Email: [email protected]. Include DFARS Case 2017-D042 in
the subject line of the message.
Fax: 571-372-6094.
Mail: Defense Acquisition Regulations System, Attn: Ms.
Kimberly Bass, 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.regulation.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. Kimberly Bass, telephone 571-372-
6174.
SUPPLEMENTARY INFORMATION:
I. Background
DoD is proposing to add a new DFARS contract clause that allows for
an expedited contract closeout agreement between the contractor and the
Government that will save administrative costs for both the contractor
and the Government. The clause will be used when the contracting
officer intends to expedite the contract closeout process by having the
contractor and the Government waive entitlement to any residual dollar
amounts up to $1,000 at the time of final contract closeout. The
objective of the rule is to reduce the amount of time and money
expended on reconciling small dollar residual dollar amounts in order
to close out contracts.
II. Discussion and Analysis
The proposed DFARS clause 252.204-70XX, Expediting Contract
Closeout, provides an agreement by the Government and contractor to
waive any entitlement that otherwise might accrue to either party in
any amount of $1,000 or less at the time of final contract closeout.
The new clause will be prescribed at DFARS 204.804-70 for use in
solicitations and contracts, including those under FAR part 12
procedures for acquisition of commercial items, when the contracting
officer intends to expedite contract closeout through such a waiver.
III. Applicability to Contracts at or Below the Simplified Acquisition
Threshold and for Commercial Items, Including Commercially Available
Off-the-Shelf Items
This rule proposes to create a new clause DFARS 252.204-70XX,
Expediting Contract Closeout. DoD plans to apply this clause to
solicitations and contracts for the acquisition of commercial items,
including commercially available off-the-shelf items, and to
acquisitions valued at or below the simplified
[[Page 19720]]
acquisition threshold. These categories of acquisitions are those most
likely to benefit from expedited contract closeout.
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,
or reducing costs, or 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 expected to be subject to E.O. 13771, because this
rule is not a significant regulatory action.
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. An
initial regulatory flexibility analysis (IRFA) has been performed and
is summarized as follows:
The Department of Defense (DoD) proposes amending the Defense
Federal Acquisition Regulation Supplement (DFARS) to add a new contract
clause 252.204-70XX, Expediting Contract Closeout, to expedite contract
closeout on contracts with a residual dollar amount of $1,000 or less
at the time of final closeout.
The objective of the proposed clause is to facilitate expedited
contract closeout and avoid excessive administrative costs for both the
contractor and the Government to reconcile relatively small residual
dollar amounts in order to close out a contract.
The proposed rule will apply to small entities that have been or
will be awarded contracts, including those under FAR part 12 procedures
for the acquisition of commercial items. DoD is unable to estimate the
total number of small entities that have DoD contracts with a residual
amount of $1,000 or less; however, the Defense Contract Management
Agency (DCMA) was able to provide information on contracts administered
by DCMA. According to data available in Mechanization of Contract
Administration Services/Shared Data Warehouse as of June 2019, there
were 11,831 flexibly-priced contracts with residual dollar amounts of
$1,000 or less, of which 3,507 contracts were awarded to small
entities. The average residual amount on these contracts was $70.
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).
The 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 requirements of the proposed
rule.
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 2017-D042), in
correspondence.
VIII. 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, 212, and 252
Government procurement.
Jennifer Lee Hawes,
Regulatory Control Officer, Defense Acquisition Regulations System.
Therefore, 48 CFR parts 204, 212, and 252 are proposed to be
amended as follows:
0
1. The authority citation for 48 CFR parts 204, 212, and 252 continues
to read as follows:
Authority: 41 U.S.C. 1303 and 48 CFR chapter 1.
PART 204--ADMINISTRATIVE AND INFORMATION MATTERS
0
2. Add section 204.804-70 to read as follows:
204.804-70 Contract clause.
Use the clause at 252.204-70XX, Expediting Contract Closeout, in
solicitations and contracts, including solicitations and contracts
using FAR part 12 procedures for the acquisition of commercial items,
when the contracting officer intends to expedite contract closeout
through the waiver of entitlement to any residual dollar amounts by the
contractor and the Government at the time of final contract closeout.
PART 212--ACQUISITION OF COMMERCIAL ITEMS
0
3. Amend section 212.301 by adding paragraph (f)(ii)(K) to read as
follows:
212.301 Solicitation provisions and contract clauses for the
acquisition of commercial items.
(f) * * *
(ii) * * *
(K) Use the clause at 252.204-70XX, Expediting Contract Closeout,
as prescribed in 204.804-70.
* * * * *
PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
0
4. Add section 252.204-70XX to read as follows:
252.204-70XX Expediting contract closeout.
As prescribed in 204.804-70, use the following clause:
Expediting Contract Closeout (DATE)
(a) Both the Government and the Contractor agree to waive any
entitlement that otherwise might accrue to either party in any
residual dollar amount of $1,000 or less at the time of final
contract closeout.
(b) A residual dollar amount includes all money owed to either
party at the end of the contract and as a result of the contract,
excluding amounts connected in any way with taxation or a violation
of law or regulation.
(c) For purposes of determining residual dollar amounts, offsets
(for example across multiple contracts or orders) may be considered
to the extent permitted by law.
(End of clause)
[FR Doc. 2020-06724 Filed 4-7-20; 8:45 am]
BILLING CODE 5001-06-P
