Defense Federal Acquisition Regulation Supplement: Modification of DFARS Clause “Tax Relief” (DFARS Case 2018-D049), 19698-19699 [2020-06725]
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19698
Federal Register / Vol. 85, No. 68 / Wednesday, April 8, 2020 / Rules and Regulations
(b) In accordance with section 852 of
Public Law 115–232, the Contractor shall not
require any further consideration from or
charge fees to the small business
subcontractor when making accelerated
payments, as defined in paragraph (a) of this
clause, to subcontractors under the clause at
FAR 52.232–40, Providing Accelerated
Payments to Small Business Subcontractors.
(c) Subcontracts. Include the substance of
this clause, including this paragraph (c), in
all subcontracts with small business
concerns, including those for the acquisition
of commercial items.
(End of clause)
[FR Doc. 2020–06727 Filed 4–7–20; 8:45 am]
BILLING CODE 5001–06–P
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations
System
48 CFR Parts 229 and 252
[Docket DARS–2019–0036]
RIN 0750–AK13
Defense Federal Acquisition
Regulation Supplement: Modification
of DFARS Clause ‘‘Tax Relief’’ (DFARS
Case 2018–D049)
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 April 8, 2020.
FOR FURTHER INFORMATION CONTACT: Ms.
Carrie Moore, telephone 571–372–6093.
SUPPLEMENTARY INFORMATION:
lotter on DSKBCFDHB2PROD with RULES
SUMMARY:
I. Background
DoD published a proposed rule in the
Federal Register at 84 FR 48512 on
September 13, 2019, to modify DFARS
clause 252.229–7001, Tax Relief, to
incorporate the information included in
DFARS clause 252.229–7000, Invoices
Exclusive of Taxes or Duties. Combining
these clauses results in DFARS clause
252.229–7000 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.’’
VerDate Sep<11>2014
19:34 Apr 07, 2020
Jkt 250001
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 OffThe-Shelf Items
This rule does not create any new
provisions or clauses. The rule
combines two clauses into a single
clause and does not change the
applicability of the affected clauses.
III. 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 20, 1993. This
rule is not a major rule as defined at 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
252.229–7001, Tax Relief, to incorporate
the information included in DFARS
clause 252.229–7000, Invoices Exclusive
of Taxes or Duties. Combining these
clauses will result in DFARS clause
252.229–7000 being removed from the
DFARS. The objective of this rule is to
streamline DoD contract terms and
conditions and contractor
responsibilities pertaining to foreign
taxes and duties. The modification of
these DFARS clauses supports 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 combines two existing
clauses that address the same topic into
PO 00000
Frm 00048
Fmt 4700
Sfmt 4700
a single comprehensive clause. These
clauses apply to solicitations and
contracts awarded to a foreign concern
for contract performance in a foreign
country.
This rule is not expected to impact
small business entities because this rule
only applies to foreign entities. The
Small Business Administration (SBA)
identifies a ‘‘small business’’ as a ‘‘a
business entity organized for profit,
with a place of business located in the
United States, and which operated
primarily within the United States or
which makes a significant contribution
to the U.S. economy through the
payment of taxes or use of American
products, materials, or labor’’ (13 CFR
121.102(a)). This rule only applies to
foreign contractors, which do not meet
the SBA definition of ‘‘small business’’
entities.
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 229 and
252
Government procurement.
Jennifer Lee Hawes,
Regulatory Control Officer, Defense
Acquisition Regulations System.
Therefore, 48 CFR parts 229 and 252
are amended as follows:
■ 1. The authority citation for 48 CFR
parts 229 and 252 continues to read as
follows:
Authority: 41 U.S.C. 1303 and 48 CFR
chapter 1.
PART 229—TAXES
229.402–1
■
[Removed]
2. Remove section 229.402–1.
PART 252—SOLICITATION
PROVISIONS AND CONTRACT
CLAUSES
252.229–7000
[Removed and Reserved]
3. Remove and reserve section
252.229–7000.
■
E:\FR\FM\08APR1.SGM
08APR1
Federal Register / Vol. 85, No. 68 / Wednesday, April 8, 2020 / Rules and Regulations
4. Amend section 252.229–7001 by—
a. In the clause heading, removing the
date ‘‘(SEP 2014)’’ and adding ‘‘(APR
2020)’’ in its place;
■ b. Revising paragraph (b);
■ c. In Alternate I–
■ i. In the clause heading, removing the
date of ‘‘(SEP 2014)’’ and adding ‘‘(APR
2020)’’ in its place; and
■ ii. Revising paragraph (b).
The revisions read as follows:
■
■
252.229–7001
Tax Relief
*
*
*
*
*
(b) Invoices submitted in accordance
with the terms and conditions of this
contract shall be exclusive of all taxes
or duties for which relief is available.
The Contractor’s invoice shall list
separately the gross price, amount of tax
deducted, and net price charged.
*
*
*
*
*
Alternate I. * * *
*
*
*
*
*
(b) Invoices submitted in accordance
with the terms and conditions of this
contract shall be exclusive of all taxes
or duties for which relief is available.
The Contractor’s invoice shall list
separately the gross price, amount of tax
deducted, and net price charged.
*
*
*
*
*
V. Regulatory Flexibility Act
I. Background
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:
The Department of Defense is
amending the Defense Federal
Acquisition Regulation Supplement
(DFARS) to modify the DFARS clause
252.232–7000, Advance Payment Pool,
to incorporate the information 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. The objective of this rule is
to streamline and consolidate the
information provided to contractors
regarding advance payment pool
agreements. The modification of this
DFARS clause supports a
recommendation from the DoD
Regulatory Reform Task Force. No
public comments were received in
response to the initial regulatory
flexibility analysis.
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.
DoD published a proposed rule in the
Federal Register at 84 FR 58364 on
October 31, 2019, to include the text of
DFARS clause 252.232–7001,
Disposition of Payments, in DFARS
clause 252.232–7000, Advance Payment
Pool, and then remove DFARS clause
252.232–7001 from the DFARS. Both
clauses clarify the terms and conditions
that apply when advance payment pool
agreements are authorized under a
contract. As such, these DFARS clauses
can be combined to streamline and
consolidate the information provided to
contractors regarding advance payment
pool agreements. No public comments
were received in response to the
proposed rule. No changes are made in
the final rule from the proposed rule.
II. Applicability to Contracts at or
Below the Simplified Acquisition
Threshold and for Commercial Items,
Including Commercially Available Offthe-Shelf Items
48 CFR Parts 232 and 252
[Docket DARS–2019–0059]
III. Executive Orders 12866 and 13563
RIN 0750–AK50
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.
BILLING CODE 5001–06–P
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations
System
Defense Federal Acquisition
Regulation Supplement: Modification
of DFARS Clause ‘‘Advance Payment
Pool’’ (DFARS Case 2019–D013)
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 April 8, 2020.
FOR FURTHER INFORMATION CONTACT: Ms.
Carrie Moore, telephone 571–372–6093.
SUMMARY:
lotter on DSKBCFDHB2PROD with RULES
SUPPLEMENTARY INFORMATION:
This 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.
[FR Doc. 2020–06725 Filed 4–7–20; 8:45 am]
VerDate Sep<11>2014
19:34 Apr 07, 2020
Jkt 250001
19699
This rule is not subject to E.O. 13771,
because this rule is not a significant
regulatory action under E.O. 12866.
Frm 00049
Fmt 4700
Sfmt 4700
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 232 and
252
Government procurement.
Jennifer Lee Hawes,
Regulatory Control Officer, Defense
Acquisition Regulations System.
Therefore, 48 CFR parts 232 and 252
are 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.
PART 232—CONTRACT FINANCING
232.412–70
IV. Executive Order 13771
PO 00000
VI. Paperwork Reduction Act
[Amended]
2. Amend section 232.412–70 by—
a. Removing paragraph (b);
b. Redesignating paragraph (c) as
paragraph (b); and
■
■
■
E:\FR\FM\08APR1.SGM
08APR1
]]>Agencies
[Federal Register Volume 85, Number 68 (Wednesday, April 8, 2020)]
[Rules and Regulations]
[Pages 19698-19699]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-06725]
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System
48 CFR Parts 229 and 252
[Docket DARS-2019-0036]
RIN 0750-AK13
Defense Federal Acquisition Regulation Supplement: Modification
of DFARS Clause ``Tax Relief'' (DFARS Case 2018-D049)
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 April 8, 2020.
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
48512 on September 13, 2019, to modify DFARS clause 252.229-7001, Tax
Relief, to incorporate the information included in DFARS clause
252.229-7000, Invoices Exclusive of Taxes or Duties. Combining these
clauses results in DFARS clause 252.229-7000 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 does not change the
applicability of the affected clauses.
III. 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 20, 1993. This rule is not a major rule as defined at 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 252.229-7001, Tax Relief, to
incorporate the information included in DFARS clause 252.229-7000,
Invoices Exclusive of Taxes or Duties. Combining these clauses will
result in DFARS clause 252.229-7000 being removed from the DFARS. The
objective of this rule is to streamline DoD contract terms and
conditions and contractor responsibilities pertaining to foreign taxes
and duties. The modification of these DFARS clauses supports 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 combines two existing clauses that address the same
topic into a single comprehensive clause. These clauses apply to
solicitations and contracts awarded to a foreign concern for contract
performance in a foreign country.
This rule is not expected to impact small business entities because
this rule only applies to foreign entities. The Small Business
Administration (SBA) identifies a ``small business'' as a ``a business
entity organized for profit, with a place of business located in the
United States, and which operated primarily within the United States or
which makes a significant contribution to the U.S. economy through the
payment of taxes or use of American products, materials, or labor'' (13
CFR 121.102(a)). This rule only applies to foreign contractors, which
do not meet the SBA definition of ``small business'' entities.
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 229 and 252
Government procurement.
Jennifer Lee Hawes,
Regulatory Control Officer, Defense Acquisition Regulations System.
Therefore, 48 CFR parts 229 and 252 are amended as follows:
0
1. The authority citation for 48 CFR parts 229 and 252 continues to
read as follows:
Authority: 41 U.S.C. 1303 and 48 CFR chapter 1.
PART 229--TAXES
229.402-1 [Removed]
0
2. Remove section 229.402-1.
PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
252.229-7000 [Removed and Reserved]
0
3. Remove and reserve section 252.229-7000.
[[Page 19699]]
0
4. Amend section 252.229-7001 by--
0
a. In the clause heading, removing the date ``(SEP 2014)'' and adding
``(APR 2020)'' in its place;
0
b. Revising paragraph (b);
0
c. In Alternate I-
0
i. In the clause heading, removing the date of ``(SEP 2014)'' and
adding ``(APR 2020)'' in its place; and
0
ii. Revising paragraph (b).
The revisions read as follows:
252.229-7001 Tax Relief
* * * * *
(b) Invoices submitted in accordance with the terms and conditions
of this contract shall be exclusive of all taxes or duties for which
relief is available. The Contractor's invoice shall list separately the
gross price, amount of tax deducted, and net price charged.
* * * * *
Alternate I. * * *
* * * * *
(b) Invoices submitted in accordance with the terms and conditions
of this contract shall be exclusive of all taxes or duties for which
relief is available. The Contractor's invoice shall list separately the
gross price, amount of tax deducted, and net price charged.
* * * * *
[FR Doc. 2020-06725 Filed 4-7-20; 8:45 am]
BILLING CODE 5001-06-P
