Defense Federal Acquisition Regulation Supplement: Modification of DFARS Clause “Notification of Anticipated Contract Termination or Reduction” (DFARS Case 2019-D019), 34535-34536 [2020-11747]

Download as PDF Federal Register / Vol. 85, No. 109 / Friday, June 5, 2020 / Rules and Regulations 225.7010–3 Waiver. 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 simply updates legal and DFARS citations in the clause and removes unnecessary information. This rule does not change the applicability of the affected clause, which does not apply to contracts valued at or below the simplified acquisition threshold, or commercial or commercially available off-the-shelf items. The waiver criteria at 225.7008(a) apply to this restriction. [FR Doc. 2020–11756 Filed 6–4–20; 8:45 am] BILLING CODE 5001–06–P DEPARTMENT OF DEFENSE Defense Acquisition Regulations System 48 CFR Parts 249 and 252 [Docket DARS–2019–0060] 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: Final rule. AGENCY: DoD is issuing a final rule amending 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. The rule is pursuant to action taken by the DoD Regulatory Reform Task Force. DATES: Effective June 5, 2020. FOR FURTHER INFORMATION CONTACT: Ms. Carrie Moore, telephone 571–372–6093. SUPPLEMENTARY INFORMATION: SUMMARY: lotter on DSK9F5VC42PROD with RULES I. Background DoD published a proposed rule in the Federal Register at 84 FR 58366 on October 31, 2019, to identify the dollar thresholds of the implementing statute (10 U.S.C. 2501 note) for DFARS 249.70 and DFARS clause 252.249–7002, Notification of Anticipated Contract Termination or Reduction, in accordance with current DFARS drafting conventions, and update the clause to reflect the current statute under which employee and training opportunities apply under the clause. No public comments were received in response to the proposed rule. Minor editorial changes are made in the final rule to a cross-reference at DFARS 252.249–7002(c)(2) and the formats of the statutory references. VerDate Sep<11>2014 16:46 Jun 04, 2020 Jkt 250001 III. 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. 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: The Department of Defense is amending the Defense Federal Acquisition Regulation Supplement (DFARS) to modify the text of DFARS clause 252.249–7002, Notification of Anticipated Contract Termination or Reduction, to: (1) Update legal and DFARS citations in the clause; (2) remove text that is no longer necessary to implement 10 U.S.C. 2501 note; and (3) conform the clause text to the current DFARS convention for referencing dollar thresholds in a clause. The objective of this rule is to provide accurate and up-to-date information to contractors and maintain consistency within the DFARS clause text. The modification of this DFARS text and clause is pursuant to action PO 00000 Frm 00043 Fmt 4700 Sfmt 4700 34535 taken by the Regulatory Reform Task Force under Executive Order 13777, Enforcing the Regulatory Reform Agenda. No public comments were received in response to the initial regulatory flexibility analysis. DoD does not collect data on the number of small businesses that have been awarded contracts under a major defense programs and have also received notice of contract termination or a substantial reduction in funding resulting from an Appropriations Act. Senior DoD Program Acquisition officials estimate that such notification of the termination or substantial reduction in a major defense program occurs, on average, no more than once or twice per year. This rule is not expected to have a significant impact on small business entities, as it does not impose any new requirements or change any existing requirements for small business entities. This rule does not include any new reporting, recordkeeping, or other compliance requirements for small businesses. DoD did not identify any significant alternatives that would minimize or reduce the significant economic impact, because there is no significant impact on small entities. VI. Paperwork Reduction Act The Paperwork Reduction Act (44 U.S.C. chapter 35) does apply; however, the changes to DFARS 252.249–7002 do not impose additional information collection requirements to the paperwork burden previously approved under OMB Control Number 0704–0533, titled: DFARS Subpart 249— Termination of Contracts. List of Subjects in 48 CFR Parts 249 and 252 Government procurement. Jennifer Lee Hawes, Regulatory Control Officer, Defense Acquisition Regulations System. Therefore, 48 CFR parts 249 and 252 are amended as follows: PART 249—TERMINATION OF CONTRACTS 1. The authority citation for part 249 is revised to read as follows: ■ Authority: 41 U.S.C. 1303 and 48 CFR chapter 1. 2. Amend section 249.7003 by— a. In paragraph (a), removing ‘‘Section 824’’ and ‘‘Job Training Partnership Act (29 U.S.C. 1661 and 1662)’’ and adding ‘‘section 824’’ and ‘‘Workforce Innovation and Opportunity Act (29 ■ ■ E:\FR\FM\05JNR1.SGM 05JNR1 34536 Federal Register / Vol. 85, No. 109 / Friday, June 5, 2020 / Rules and Regulations U.S.C. Chapter 32)’’ in their places, respectively; ■ b. In the paragraph (b) introductory text, removing ‘‘to:’’ and adding ‘‘to—’’ in its place; ■ c. In paragraph (b)(1), removing ‘‘act.’’ And adding ‘‘act; and’’ in its place; ■ d. Revising paragraph (c). The revision reads as follows: 249.7003 Notification of anticipated contract terminations or reductions. * * * * * (c) When subcontracts have been issued, the prime contractor is responsible for— (1) Providing notice of the termination or substantial reduction in funding to all first-tier subcontractors with a subcontract valued equal to or greater than $700,000; and (2) Requiring that each subcontractor— (i) Provide such notice to each of its subcontractors for subcontracts valued greater than $150,000; and (ii) Impose a similar notice and flowdown requirement in subcontracts valued greater than $150,000 at all tiers. ■ 3. Add section 249.7004 to read as follows: 249.7004 Contract clause. Use the clause at 252.249–7002, Notification of Anticipated Contract Termination or Reduction, in all contracts under a major defense program. PART 252—SOLICITATION PROVISIONS AND CONTRACT CLAUSES 4. The authority citation for part 252 continues to read as follows: ■ Authority: 41 U.S.C. 1303 and 48 CFR chapter 1. 5. Amend section 252.249–7002 by— a. In the introductory text, removing ‘‘249.7003(c)’’ and adding ‘‘249.7004’’ in its place; ■ b. Removing the clause date ‘‘(MAY 2019)’’ and adding ‘‘(JUN 2020)’’ in its place; ■ c. Revising paragraphs (b) and (c); ■ d. In paragraph (d)(1), removing ‘‘225.870–4(c)(2)(i)(A)(1)’’ and adding ‘‘249.7003(c)(1)’’ in its place; ■ e. In paragraphs (d)(2)(i) and (ii), removing ‘‘225.870–4(c)(2)(i)(C)’’ and adding ‘‘249.7003(c)(2)(i)’’ and ‘‘249.7003(c)(2)(ii)’’ in their place, respectively; and ■ f. Removing paragraph (e). The revisions read as follows: lotter on DSK9F5VC42PROD with RULES ■ ■ 252.249–7002 Notification of Anticipated Contract Termination or Reduction. * * * VerDate Sep<11>2014 * * 16:46 Jun 04, 2020 Jkt 250001 (b) Scope. This clause implements section 1372 of the National Defense Authorization Act for Fiscal Year 1994 (Pub. L. 103–160) and section 824 of the National Defense Authorization Act for Fiscal Year 1997 (Pub. L. 104–201), which are intended to help establish benefit eligibility under the Workforce Innovation and Opportunity Act (29 U.S.C. chapter 32) for employees of DoD contractors and subcontractors adversely affected by contract terminations or substantial reductions under major defense programs. (c) Notice to employees and state and local officials. (1) Within 2 weeks after the Contracting Officer notifies the Contractor that contract funding will be terminated or substantially reduced, the Contractor shall provide notice of such anticipated termination or reduction to— (i) Each employee representative of the Contractor’s employees whose work is directly related to the defense contract; or (ii) If there is no such representative, each such employee; (iii) The State or entity designated by the State to carry out rapid response activities described in the Workforce Innovation and Opportunity Act (29 U.S.C. 3174(a)(2)(A)(i)); and (iv) The chief elected official of the unit of general local government within which the adverse effect may occur. (2) The notice provided an employee under paragraph (c)(1) of this clause shall have the same effect as a notice of termination to the employee for the purposes of determining whether such employee is eligible for training, adjustment assistance, and employment services under the Workforce Innovation and Opportunity Act (29 U.S.C. Chapter 32). * * * * * [FR Doc. 2020–11747 Filed 6–4–20; 8:45 am] BILLING CODE 5001–06–P DEPARTMENT OF DEFENSE Defense Acquisition Regulations System DoD is correcting final regulations that published in the Federal Register on April 8, 2020, to reflect that the clause date for the DFARS section on duty-free entry should be ‘‘(APR 2020)’’. SUMMARY: DATES: Effective June 5, 2020. Ms. Jennifer L. Hawes, Defense Acquisition Regulations System, OUSD(A&S)DPC(DARS), Room 3B941, 3060 Defense Pentagon, Washington, DC 20301–3060. Telephone 571–372–6115; facsimile 571–372–6094. FOR FURTHER INFORMATION CONTACT: On April 8, 2020, DoD published in the Federal Register at 85 FR 19681 a final rule titled ‘‘Technical Amendments’’. The purpose of this correction is to reflect that the clause date for DFARS 252.225– 7013, Duty-Free Entry, should be ‘‘(APR 2020)’’ and not ‘‘(MAR 2020)’’ as published in the technical amendment. SUPPLEMENTARY INFORMATION: List of Subjects in 48 CFR Part 252 Government procurement. Jennifer Lee Hawes, Regulatory Control Officer, Defense Acquisition Regulations System. Therefore, 48 CFR part 252 is amended as follows: PART 252—SOLICITATION PROVISIONS AND CONTRACT CLAUSES 1. The authority citation for 48 CFR part 252 continues to read as follows: ■ Authority: 41 U.S.C. 1303 and 48 CFR chapter 1. 252.225–7013 3. Amend section 252.225–7013 by removing the clause date of ‘‘(MAR 2020)’’ and adding ‘‘(APR 2020)’’ in its place. ■ [FR Doc. 2020–11755 Filed 6–4–20; 8:45 am] BILLING CODE 5001–06–P 48 CFR Part 252 [Docket DARS–2020–0001] Defense Federal Acquisition Regulation Supplement: Technical Amendment; Correction Defense Acquisition Regulations System, Department of Defense (DoD). ACTION: Correcting amendment. AGENCY: PO 00000 Frm 00044 Fmt 4700 Sfmt 9990 [Amended] E:\FR\FM\05JNR1.SGM 05JNR1

Agencies

[Federal Register Volume 85, Number 109 (Friday, June 5, 2020)]
[Rules and Regulations]
[Pages 34535-34536]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-11747]


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DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Parts 249 and 252

[Docket DARS-2019-0060]
RIN 0750-AK56


Defense Federal Acquisition Regulation Supplement: Modification 
of DFARS Clause ``Notification of Anticipated Contract Termination or 
Reduction'' (DFARS Case 2019-D019)

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 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. The rule is pursuant to 
action taken by the DoD Regulatory Reform Task Force.

DATES: Effective June 5, 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 
58366 on October 31, 2019, to identify the dollar thresholds of the 
implementing statute (10 U.S.C. 2501 note) for DFARS 249.70 and DFARS 
clause 252.249-7002, Notification of Anticipated Contract Termination 
or Reduction, in accordance with current DFARS drafting conventions, 
and update the clause to reflect the current statute under which 
employee and training opportunities apply under the clause. No public 
comments were received in response to the proposed rule. Minor 
editorial changes are made in the final rule to a cross-reference at 
DFARS 252.249-7002(c)(2) and the formats of the statutory references.

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 
simply updates legal and DFARS citations in the clause and removes 
unnecessary information. This rule does not change the applicability of 
the affected clause, which does not apply to contracts valued at or 
below the simplified acquisition threshold, or commercial or 
commercially available off-the-shelf items.

III. 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.

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:
    The Department of Defense is amending the Defense Federal 
Acquisition Regulation Supplement (DFARS) to modify the text of DFARS 
clause 252.249-7002, Notification of Anticipated Contract Termination 
or Reduction, to: (1) Update legal and DFARS citations in the clause; 
(2) remove text that is no longer necessary to implement 10 U.S.C. 2501 
note; and (3) conform the clause text to the current DFARS convention 
for referencing dollar thresholds in a clause. The objective of this 
rule is to provide accurate and up-to-date information to contractors 
and maintain consistency within the DFARS clause text. The modification 
of this DFARS text and clause is pursuant to action taken by the 
Regulatory Reform Task Force under Executive Order 13777, Enforcing the 
Regulatory Reform Agenda.
    No public comments were received in response to the initial 
regulatory flexibility analysis.
    DoD does not collect data on the number of small businesses that 
have been awarded contracts under a major defense programs and have 
also received notice of contract termination or a substantial reduction 
in funding resulting from an Appropriations Act. Senior DoD Program 
Acquisition officials estimate that such notification of the 
termination or substantial reduction in a major defense program occurs, 
on average, no more than once or twice per year. This rule is not 
expected to have a significant impact on small business entities, as it 
does not impose any new requirements or change any existing 
requirements for small business entities.
    This rule does not include any new reporting, recordkeeping, or 
other compliance requirements for small businesses.
    DoD did not identify any significant alternatives that would 
minimize or reduce the significant economic impact, because there is no 
significant impact on small entities.

VI. Paperwork Reduction Act

    The Paperwork Reduction Act (44 U.S.C. chapter 35) does apply; 
however, the changes to DFARS 252.249-7002 do not impose additional 
information collection requirements to the paperwork burden previously 
approved under OMB Control Number 0704-0533, titled: DFARS Subpart 
249--Termination of Contracts.

List of Subjects in 48 CFR Parts 249 and 252

    Government procurement.

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

    Therefore, 48 CFR parts 249 and 252 are amended as follows:

PART 249--TERMINATION OF CONTRACTS

0
1. The authority citation for part 249 is revised to read as follows:

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

0
2. Amend section 249.7003 by--
0
a. In paragraph (a), removing ``Section 824'' and ``Job Training 
Partnership Act (29 U.S.C. 1661 and 1662)'' and adding ``section 824'' 
and ``Workforce Innovation and Opportunity Act (29

[[Page 34536]]

U.S.C. Chapter 32)'' in their places, respectively;
0
b. In the paragraph (b) introductory text, removing ``to:'' and adding 
``to--'' in its place;
0
c. In paragraph (b)(1), removing ``act.'' And adding ``act; and'' in 
its place;
0
d. Revising paragraph (c).
    The revision reads as follows:


249.7003  Notification of anticipated contract terminations or 
reductions.

* * * * *
    (c) When subcontracts have been issued, the prime contractor is 
responsible for--
    (1) Providing notice of the termination or substantial reduction in 
funding to all first-tier subcontractors with a subcontract valued 
equal to or greater than $700,000; and
    (2) Requiring that each subcontractor--
    (i) Provide such notice to each of its subcontractors for 
subcontracts valued greater than $150,000; and
    (ii) Impose a similar notice and flowdown requirement in 
subcontracts valued greater than $150,000 at all tiers.

0
3. Add section 249.7004 to read as follows:


249.7004  Contract clause.

    Use the clause at 252.249-7002, Notification of Anticipated 
Contract Termination or Reduction, in all contracts under a major 
defense program.

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

0
4. The authority citation for part 252 continues to read as follows:

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

0
5. Amend section 252.249-7002 by--
0
a. In the introductory text, removing ``249.7003(c)'' and adding 
``249.7004'' in its place;
0
b. Removing the clause date ``(MAY 2019)'' and adding ``(JUN 2020)'' in 
its place;
0
c. Revising paragraphs (b) and (c);
0
d. In paragraph (d)(1), removing ``225.870-4(c)(2)(i)(A)(1)'' and 
adding ``249.7003(c)(1)'' in its place;
0
e. In paragraphs (d)(2)(i) and (ii), removing ``225.870-4(c)(2)(i)(C)'' 
and adding ``249.7003(c)(2)(i)'' and ``249.7003(c)(2)(ii)'' in their 
place, respectively; and
0
f. Removing paragraph (e).
    The revisions read as follows:


252.249-7002  Notification of Anticipated Contract Termination or 
Reduction.

* * * * *
    (b) Scope. This clause implements section 1372 of the National 
Defense Authorization Act for Fiscal Year 1994 (Pub. L. 103-160) and 
section 824 of the National Defense Authorization Act for Fiscal Year 
1997 (Pub. L. 104-201), which are intended to help establish benefit 
eligibility under the Workforce Innovation and Opportunity Act (29 
U.S.C. chapter 32) for employees of DoD contractors and subcontractors 
adversely affected by contract terminations or substantial reductions 
under major defense programs.
    (c) Notice to employees and state and local officials. (1) Within 2 
weeks after the Contracting Officer notifies the Contractor that 
contract funding will be terminated or substantially reduced, the 
Contractor shall provide notice of such anticipated termination or 
reduction to--
    (i) Each employee representative of the Contractor's employees 
whose work is directly related to the defense contract; or
    (ii) If there is no such representative, each such employee;
    (iii) The State or entity designated by the State to carry out 
rapid response activities described in the Workforce Innovation and 
Opportunity Act (29 U.S.C. 3174(a)(2)(A)(i)); and
    (iv) The chief elected official of the unit of general local 
government within which the adverse effect may occur.
    (2) The notice provided an employee under paragraph (c)(1) of this 
clause shall have the same effect as a notice of termination to the 
employee for the purposes of determining whether such employee is 
eligible for training, adjustment assistance, and employment services 
under the Workforce Innovation and Opportunity Act (29 U.S.C. Chapter 
32).
* * * * *
[FR Doc. 2020-11747 Filed 6-4-20; 8:45 am]
BILLING CODE 5001-06-P