Defense Federal Acquisition Regulation Supplement: Repeal of DFARS Clause “Tariff Information” (DFARS Case 2018-D044), 34576-34578 [2020-11753]

Agencies

• Defense Acquisition Regulations System
• DEPARTMENT OF DEFENSE

[Federal Register Volume 85, Number 109 (Friday, June 5, 2020)]
[Proposed Rules]
[Pages 34576-34578]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-11753]


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DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Parts 239 and 252

[Docket DARS-2019-0031]
RIN 0750-AK07


Defense Federal Acquisition Regulation Supplement: Repeal of 
DFARS Clause ``Tariff Information'' (DFARS Case 2018-D044)

AGENCY: Defense Acquisition Regulations System, Department of Defense 
(DoD).

ACTION: Proposed rule.

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SUMMARY: DoD is proposing to amend the Defense Federal Acquisition 
Regulation Supplement (DFARS) to remove a clause that is no longer 
necessary.

DATES: Comments on the proposed rule should be submitted in writing to 
the address shown below on or before August 4, 2020, to be considered 
in the formation of a final rule.

ADDRESSES: Submit comments identified by DFARS Case 2018-D044, using 
any of the following methods:
    [cir] Federal eRulemaking Portal: https://www.regulations.gov. 
Search for ``DFARS Case 2018-D044''. Select ``Submit a Comment Now'' 
and follow the instructions provided to submit a comment. Please 
include ``DFARS Case 2018-D044'' on any attached document.
    [cir] Email: [email protected]. Include DFARS Case 2018-D044 in 
the subject line of the message.
    [cir] Fax: 571-372-6094.
    [cir] Mail: Defense Acquisition Regulations System, Attn: Ms. 
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:

[[Page 34577]]

I. Background

    DoD is proposing to amend the DFARS to remove the DFARS clause 
252.239-7006, Tariff Information, and the associated clause 
prescription at DFARS 239.7411(a). This clause is prescribed for use in 
solicitations, contracts, and basic agreements for telecommunications 
services. The clause requires the contractor to provide the contracting 
officer with the following information:
     Upon request, a copy of the contractor's existing tariffs.
     Before filing, a copy of any application to be made to a 
regulatory agency that requests new or changes to rates, charges, 
services, or regulations related to any tariff or to any of the 
facilities or services furnished primarily to the Government.
     Upon request, all supporting documentation prepared in 
connection with any application to a regulatory agency.
     Notice of any application that anyone other than the 
contractor files with a regulatory body which affects or will affect 
the rate or conditions of services under the agreement or contract.
    This clause was added to the DFARS to implement a standardized 
approach across DoD for addressing critical issues associated with the 
acquisition of telecommunication services. Since its implementation, 
technological advances, and the passage of additional telecommunication 
regulations at 47 CFR 42.10, have made this DFARS clause unnecessary. 
Pursuant to 47 CFR 42.10, telecommunications carriers are now required 
to make tariff and non-tariff information available to the public 
online at the carrier's internet website and to update the information 
regularly. Additionally, online databases and tools have been created 
to track and monitor changes in telecommunications tariffs, prices, and 
services. Since contracting officers are now able review carriers' 
websites and access online tariff tools and databases as needed, it is 
unnecessary and burdensome to require the contractor to provide this 
information separately to the contracting officer in accordance with 
the clause. As such, this DFARS clause can be removed.
    The removal 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. Public notification 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 28041 on June 20, 2017 
(see also 82 FR 35741 (August 1, 2017)), and requested public input. No 
public comments were received on this clause. Subsequently, the DoD 
Task Force reviewed the requirements of DFARS clause 252.239-7006, 
Tariff Information, and determined that the DFARS coverage was 
unnecessary and recommended removal.

II. Applicability to Contracts at or Below the Simplified Acquisition 
Threshold and for Commercial Items, Including Commercially Available 
Off-the-Shelf Items

    This rule only removes obsolete DFARS clause 252.239-7006, Tariff 
Information. Therefore, the rule does not impose any new requirements 
on contracts at or below the simplified acquisition threshold and for 
commercial items, including commercially available off-the-shelf items.

III. Expected Cost Savings

    This rule impacts only telecommunication service providers who do 
business, or want to do business, with DoD. DFARS clause 252.239-7006, 
Tariff Information, requires telecommunications service contractors to 
submit certain tariff and non-tariff information to DoD when requested 
by the contracting officer or as specified in the clause. Removal of 
this DFARS clause is expected to result in savings for both DoD and DoD 
contractors that provide telecommunications services.
    The following is a summary of the estimated public and Government 
cost savings:

----------------------------------------------------------------------------------------------------------------
                             Summary                                  Public        Government         Total
----------------------------------------------------------------------------------------------------------------
Present Value...................................................     -$1,624,014       -$406,000     -$2,030,014
Annualized Costs................................................        -113,681         -28,420        -142,101
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    To access the full Regulatory Cost Analysis for this rule, go to 
the Federal eRulemaking Portal at www.regulations.gov, search for 
``DFARS Case 2018-D044,'' click ``Open Docket,'' and view ``Supporting 
Documents.''

IV. Executive Orders 12866 and 13563

    E.O.s 12866 and 13563 direct agencies to assess all costs and 
benefits of available regulatory alternatives and, if regulation is 
necessary, to select regulatory approaches that maximize net benefits 
(including potential economic, environmental, public health and safety 
effects, distributive impacts, and equity). E.O. 13563 emphasizes the 
importance of quantifying both costs and benefits, of reducing costs, 
of harmonizing rules, and of promoting flexibility. This is not a 
significant regulatory action and, therefore, was not subject to review 
under section 6(b) of E.O. 12866, Regulatory Planning and Review, dated 
September 30, 1993. This rule is not a major rule under 5 U.S.C. 804.

V. Executive Order 13771

    This rule is expected to be an E.O. 13771 deregulatory action. We 
estimate that this rule generates $2.03 million in annualized cost 
savings, discounted at 7 percent relative to year 2016, over a 
perpetual time horizon. Details on the estimated cost savings can be 
found in section III. of this preamble.

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 only applies to major weapon system acquisition 
programs. However, an initial regulatory flexibility analysis has been 
performed and is summarized as follows:
    DoD is proposing to amend the Defense Federal Acquisition 
Regulation Supplement (DFARS) to implement a recommendation from the 
DoD Regulatory Task Force established pursuant to Executive Order 
13777, Enforcing the Regulatory Reform Agenda, to repeal the clause at 
DFARS 252.239-7006, Tariff Information, and the associated clause 
prescription at DFARS 239.7411(a).
    The objective of this rule is to remove the requirement for 
contractors to report

[[Page 34578]]

tariff information under the DFARS clause. The legal basis for this 
change is 41 U.S.C. 1303.
    According to the Electronic Document Access database, DoD awards 
approximately 855 contracts to 83 unique contractors each year that 
include DFARS clause 252.239-7006. It is estimated that 171 of those 
contracts are awarded to small entities.
    This proposed rule does not include any new reporting or 
recordkeeping requirements for small entities. Rather this rule reduces 
the information collection requirements approved under OMB Control 
Number 0704-0341. Small entities will no longer be required to provide 
tariff information to the contracting officer in accordance with DFARS 
clause 252.239-7006.
    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 policy objective of the 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 2018-D044), in 
correspondence.

VII. Paperwork Reduction Act

    This rule affects the information collection requirements in the 
DFARS provision 252.239-7006, Tariff Information, currently approved 
under OMB Control Number 0704-0341, entitled ``Defense Federal 
Acquisition Regulation Supplement (DFARS) Part 239, Acquisition of 
Information Technology and associated clauses at DFARS 252.239-7000 and 
252.239-7006.'' The rule revises an information collection requirement, 
which requires the approval of OMB under the Paperwork Reduction Act 
(44 U.S.C. chapter 35). Accordingly, DoD has submitted a request to OMB 
for approval of a revised information collection.

A. Public Reporting Burden

    Public reporting burden for this previously approved collection of 
information is estimated to average 2 hours per response, including the 
time for reviewing instructions, searching existing data sources, 
gathering and maintaining the data needed, and completing and reviewing 
the collection of information. This rule proposes to eliminate DFARS 
252.239-7006, Tariff Information, thereby reducing the associated 
current annual reporting burden and OMB inventory of hours as follows:
    Respondents: 83.
    Responses per respondent: Approximately 10.3.
    Total annual responses: 855.
    Hours per response: 2 hours.
    Total response Burden Hours: 1,710.
    Request for Comments Regarding Paperwork Burden Reduction. Written 
comments and recommendations on the proposed reduction of this 
information collection should be sent to Ms. Jasmeet Seehra at the 
Office of Management and Budget, Desk Officer for DoD, Room 10236, New 
Executive Office Building, Washington, DC 20503, or email 
[email protected], with a copy to the Defense Acquisition 
Regulations System, Attn: Carrie Moore; OUSD(A&S)DPC/DARS, Room 3B941, 
3060 Defense Pentagon, Washington, DC 20301-3060. Comments can be 
received from 30 to 60 days after the date of this notification, but 
comments to OMB will be most useful if received by OMB within 30 days 
after the date of this notification.
    To request more information on this proposed information collection 
or to obtain a copy of the proposal and associated collection 
instruments, please write to the Defense Acquisition Regulations 
System, Attn: Carrie Moore, OUSD(A&S)DPC/DARS, Room 3B941, 3060 Defense 
Pentagon, Washington, DC 20301-3060, or email [email protected]. 
Include DFARS Case 2018-D044 in the subject line of the message.

List of Subjects in 48 CFR Parts 239 and 252

    Government procurement.

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

    Therefore, 48 CFR parts 239 and 252 are proposed to be amended as 
follows:

0
1. The authority citation for 48 CFR parts 239 and 252 continues to 
read as follows:

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

PART 239--ACQUISITION OF INFORMATION TECHNOLOGY


239.7411   [Amended]

0
2. Amend section 239.7411 by removing paragraph (a)(3) and 
redesignating paragraph (a)(4) as paragraph (a)(3).

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES


252.239-7006   [Removed and Reserved]

0
3. Remove and reserve section 252.239-7006.

[FR Doc. 2020-11753 Filed 6-4-20; 8:45 am]
 BILLING CODE 5001-06-P