Defense Federal Acquisition Regulation Supplement: Contract Closeout Authority for DoD Services Contracts (DFARS Case 2021-D012), 48366-48368 [2021-18341]

Download as PDF 48366 Federal Register / Vol. 86, No. 165 / Monday, August 30, 2021 / Proposed Rules (collectively ‘‘excluded Indian country lands’’). EPA’s approval under SAFETEA expressly provided that to the extent EPA’s prior approvals of Oklahoma’s environmental programs excluded Indian country, any such exclusions are superseded for the geographic areas of Indian country covered by the EPA’s approval of Oklahoma’s SAFETEA request.6 The approval also provided that future revisions or amendments to Oklahoma’s approved environmental regulatory programs would extend to the covered areas of Indian country (without any further need for additional requests under SAFETEA). As explained above, the EPA is proposing to approve an update to the Oklahoma NESHAP delegation. Consistent with the EPA’s October 1, 2020 SAFETEA approval, if this action is finalized as proposed, Oklahoma’s delegation of the NESHAP program will apply to all areas of Indian country within the State of Oklahoma, other than the excluded Indian country lands.7 XIV. Proposed Action khammond on DSKJM1Z7X2PROD with PROPOSALS In this action, the EPA is proposing to approve an update to the Oklahoma NESHAP delegation that would provide the ODEQ with the authority to implement and enforce certain newly incorporated NESHAP promulgated by the EPA and amendments to existing standards currently delegated, as they existed though June 30, 2019. This proposed delegation to ODEQ extends to sources and activities located in certain areas of Indian country, as explained in section XIII above. 6 EPA’s prior approvals relating to Oklahoma’s NESHAP delegation frequently noted that the NESHAP delegation was not approved to apply in areas of Indian country located in the State. See, e.g., 83 FR 53183 (October 22, 2018). Such prior expressed limitations are superseded by the EPA’s approval of Oklahoma’s SAFETEA request. 7 In accordance with Executive Order 13990, EPA is currently reviewing our October 1, 2020 SAFETEA approval and is engaging in further consultation with tribal governments and discussions with the State of Oklahoma as part of this review. EPA also notes that the October 1, 2020 approval is the subject of a pending challenge in federal court. (Pawnee v. Regan, No. 20–9635 (10th Cir.)). Pending completion of EPA’s review, EPA is proceeding with this proposed action in accordance with the October 1, 2020 approval. EPA’s final action on the NESHAP delegation update will address the scope of the State’s program with respect to Indian country, and may make any appropriate adjustments, based on the status of our review at that time. If EPA’s final action on Oklahoma’s NESHAP delegation update is taken before our review of the SAFETEA approval is complete, EPA may make further changes to the approval of Oklahoma’s NESHAP delegation to reflect the outcome of the SAFETEA review. VerDate Sep<11>2014 16:31 Aug 27, 2021 Jkt 253001 XV. Statutory and Executive Order Reviews Under the CAA, the Administrator has the authority to approve section 112(l) submissions that comply with the provisions of the Act and applicable Federal regulations. In reviewing section 112(l) submissions, the EPA’s role is to approve state choices, provided that they meet the criteria and objectives of the CAA and of the EPA’s implementing regulations. Accordingly, this proposed action would merely approve the State’s request as meeting Federal requirements and does not impose additional requirements beyond those imposed by state law. For that reason, this proposed action: • Is not a ‘‘significant regulatory action’’ subject to review by the Office of Management and Budget under Executive Orders 12866 (58 FR 51735, October 4, 1993) and 13563 (76 FR 3821, January 21, 2011); • Does not impose an information collection burden under the provisions of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.); • Is certified as not having a significant economic impact on a substantial number of small entities under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.); • Does not contain any unfunded mandate or significantly or uniquely affect small governments, as described in the Unfunded Mandates Reform Act of 1995 (Pub. L. 104–4); • Does not have federalism implications as specified in Executive Order 13132 (64 FR 43255, August 10, 1999); • Is not an economically significant regulatory action based on health or safety risks subject to Executive Order 13045 (62 FR 19885, April 23, 1997); • Is not a significant regulatory action subject to Executive Order 13211 (66 FR 28355, May 22, 2001); • Is not subject to requirements of section 12(d) of the National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272 note) because application of those requirements would be inconsistent with the CAA; and • Does not provide the EPA with the discretionary authority to address, as appropriate, disproportionate human health or environmental effects, using practicable and legally permissible methods, under Executive Order 12898 (59 FR 7629, February 16, 1994). This proposal to approve Oklahoma’s request to update the NESHAP delegation will apply, if finalized as proposed, to certain areas of Indian country as discussed in section XIII above, and therefore has tribal PO 00000 Frm 00022 Fmt 4702 Sfmt 4702 implications as specified in Executive Order 13175 (65 FR 67249, November 9, 2000). However, this action will neither impose substantial direct compliance costs on federally recognized tribal governments, nor preempt tribal law. This action will not impose substantial direct compliance costs on federally recognized tribal governments because no actions will be required of tribal governments. This action will also not preempt tribal law as no Oklahoma tribe implements a regulatory program under the CAA, and thus does not have applicable or related tribal laws. Consistent with the EPA Policy on Consultation and Coordination with Indian Tribes (May 4, 2011), the EPA has offered consultation to tribal governments that may be affected by this action. List of Subjects 40 CFR Part 61 Environmental protection, Administrative practice and procedure, Air pollution control, Arsenic, Benzene, Beryllium, Hazardous substances, Mercury, Intergovernmental relations, Reporting and recordkeeping requirements, Vinyl chloride. 40 CFR Part 63 Environmental protection, Administrative practice and procedure, Air pollution control, Hazardous substances, Intergovernmental relations, Reporting and recordkeeping requirements. Authority: 42 U.S.C. 7401 et seq. Dated: August 18, 2021. David Garcia, Director, Air and Radiation Division, Region 6. [FR Doc. 2021–18164 Filed 8–27–21; 8:45 am] BILLING CODE 6560–50–P DEPARTMENT OF DEFENSE Defense Acquisition Regulations System 48 CFR Part 204 [Docket DARS–2021–0017] RIN 0750–AL48 Defense Federal Acquisition Regulation Supplement: Contract Closeout Authority for DoD Services Contracts (DFARS Case 2021–D012) Defense Acquisition Regulations System, Department of Defense (DoD). ACTION: Proposed rule. AGENCY: E:\FR\FM\30AUP1.SGM 30AUP1 Federal Register / Vol. 86, No. 165 / Monday, August 30, 2021 / Proposed Rules II. Discussion and Analysis DoD is proposing to amend the Defense Federal Acquisition Regulation Supplement (DFARS) to implement a section of the National Defense Authorization Act for Fiscal Year 2021. SUMMARY: Comments on the proposed rule should be submitted in writing to the address shown below on or before October 29, 2021, to be considered in the formation of the final rule. DATES: Submit comments identified by DFARS Case 2021–D012, using any of the following methods: Æ Federal eRulemaking Portal: https://www.regulations.gov. Search for ‘‘DFARS Case 2021–D012.’’ Select ‘‘Comment’’ and follow the instructions to submit a comment. Please include your name, company name (if any), and ‘‘DFARS Case 2021–D012’’ on any attached document. Æ Email: osd.dfars@mail.mil. Include DFARS Case 2021–D012 in the subject line of the message. 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 https:// www.regulations.gov, approximately two to three days after submission to verify posting. ADDRESSES: Ms. Kimberly R. Ziegler, telephone 571– 372–6095. FOR FURTHER INFORMATION CONTACT: SUPPLEMENTARY INFORMATION: khammond on DSKJM1Z7X2PROD with PROPOSALS I. Background This rule proposes to amend DFARS subpart 204.8 to implement section 820 of the National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2021 (Pub. L. 116–283). Section 820 amends section 836(b) of the NDAA for FY 2017 (Pub. L. 114–328), as modified by section 824 of the NDAA for FY 2018 (Pub. L. 115–91). Section 836 authorizes DoD contracting officers to close out certain physically complete contracts or groups of contracts through modification of such contracts, without completing the requirements of Federal Acquisition Regulation (FAR) 4.804– 5(a)(3) through (15) based upon the age of the contract action. DoD published a final rule at 84 FR 18153 on April 30, 2019, to implement sections 836 of the NDAA for FY 2017 and 824 of the NDAA for FY 2018. The final rule provided similar authorities for contracts meeting certain criteria that were entered into on a date that was at least 17 fiscal years prior to the current fiscal year. VerDate Sep<11>2014 16:31 Aug 27, 2021 Jkt 253001 Section 820 expands the application of the expedited contract closeout authority of section 836 of the NDAA for FY 2017, implemented at DFARS 204.804(3)(i)(A), to certain contracts or groups of contracts that were awarded at least 7 or 10 fiscal years before the current fiscal year and have completed performance or delivery at least four years prior to the current fiscal year. DFARS 204.804(3)(i)(A) currently provides a blanket application of the 17 fiscal year standard, when certain requirements at 204.804(3)(i)(B) and (C) are met. Section 820 provides two new standards, one of which provides a similar blanket application, but the number of fiscal years is reduced from 17 to 7. The second standard of at least 10 fiscal years only applies to contracts or groups of contracts for military construction, as defined in 10 U.S.C. 2801, or shipbuilding. Both new standards require physical completion (see FAR 4.804–4) at least four years prior to the current fiscal year. III. Applicability to Contracts at or Below the Simplified Acquisition Threshold (SAT) and for Commercial Items, Including Commercially Available Off-The-Shelf (COTS) Items This proposed rule does not create any new solicitation provisions or contract clauses. It does not impact any existing solicitation provisions or contract clauses or their applicability to contracts valued at or below the simplified acquisition threshold or for commercial items, including COTS items. IV. Expected Impact of the Rule DFARS 204.804(3)(i) currently provides for the expedited closeout of contracts or groups of contracts without completion of a reconciliation audit or other corrective actions required by FAR 4.804–5(a)(3) through (15) if certain criteria are met. If a contract was entered into at least 17 years prior to the current fiscal year, is physically complete, and has been determined not reconcilable, the contracting officer may close the contract through a negotiated settlement. This rule reduces the age requirement from 17 years to 10 years for military construction and shipbuilding and 7 years for all other contract actions. The rule adds a new requirement that these contracts must be physically complete at least four years prior to the current fiscal year. The expanded authority will apply to more recent contracts, subject to the other criteria in DFARS 204.804(3)(i), to PO 00000 Frm 00023 Fmt 4702 Sfmt 4702 48367 reduce the current backlog and administration requirements for contracts eligible for closeout. V. 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. VI. Congressional Review Act As required by the Congressional Review Act (5 U.S.C. 801–808) before an interim or final rule takes effect, DoD will submit a copy of the interim or final rule with the form, Submission of Federal Rules Under the Congressional Review Act, to the U.S. Senate, the U.S. House of Representatives, and the Comptroller General of the United States. A major rule under the Congressional Review Act cannot take effect until 60 days after it is published in the Federal Register. This rule is not anticipated to be a major rule under 5 U.S.C. 804. VII. Regulatory Flexibility Act. DoD does not expect this 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 this rule implements requirements primarily for the Government. However, an initial regulatory flexibility analysis has been performed and is summarized as follows: This rule proposes to amend the Defense Federal Acquisition Regulation Supplement (DFARS) to implement section 820 of the National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2021 (Pub. L. 116–283). Section 820 expands the application of the expedited contract closeout authority of section 836 of the NDAA for FY 2017, implemented at DFARS 204.804(3)(i)(A), to certain contracts or groups of contracts that were awarded at least 7 to 10 FYs before the current FY and have completed performance or delivery at least four years prior to the current FY. The new 10-year standard E:\FR\FM\30AUP1.SGM 30AUP1 khammond on DSKJM1Z7X2PROD with PROPOSALS 48368 Federal Register / Vol. 86, No. 165 / Monday, August 30, 2021 / Proposed Rules will apply to contracts or groups of contracts for military construction, as defined in 10 U.S.C. 2801, or shipbuilding, while the 7-year standard will apply to all other contracts. The objective of the rule is to implement the requirements of section 820, which expands the application of the expedited contract closeout authority of section 836 of the NDAA for FY 2017 to more recent, physically complete contracts. The legal basis of the rule is section 820 of the NDAA for FY 2021. This rule will likely affect small entities that have been or will be awarded DoD contracts, including those under FAR part 12 procedures for the acquisition of commercial items, including commercially available offthe-shelf items. Data was obtained from the Electronic Data Access module of the Procurement Integrated Enterprise Environment for contracts that were physically completed at least four years ago and are eligible for closeout between the new standard of 7 or 10 years and the previous standard of at least 17 fiscal years after award. The data were then compared to the Federal Procurement Data System (FPDS) to estimate the number of contracts awarded to small entities. Contracts subject to the previous standard of 17 years are included in this estimate. As of April 2021, the FPDS data indicate that approximately 29,200 contracts, eligible for expedited closeout under the 7-year standard, were awarded to an estimated 4,490 unique small entities. An additional estimated 1,775 contracts, subject to the 10-year standard, were awarded to approximately 576 small entities. As a result, DoD estimates that approximately 5,066 small entities will have the opportunity to benefit from the expanded expedited contract authorities provided in this rule. The rule does not impose any new reporting, recordkeeping, or compliance requirements. The rule does not duplicate, overlap, or conflict with any other Federal rules. There are no practical alternatives that will accomplish the objectives of the statute. 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 the 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 2021–D012), in correspondence. VerDate Sep<11>2014 16:31 Aug 27, 2021 Jkt 253001 VIII. Paperwork Reduction Act This rule does not contain any information collection requirements that require the approval of the Office of Management and Budget (OMB) under the Paperwork Reduction Act (44 U.S.C. chapter 35). List of Subjects in 48 CFR Part 204 Government procurement. amount owed to the contractor is disproportionate to the amount at issue. * * * * * [FR Doc. 2021–18341 Filed 8–27–21; 8:45 am] BILLING CODE 5001–06–P DEPARTMENT OF DEFENSE Defense Acquisition Regulations System Jennifer D. Johnson, Editor/Publisher, Defense Acquisition Regulations System. 48 CFR Parts 215 and 242 Therefore, 48 CFR part 204 is proposed to be amended as follows: RIN 0750–AK95 PART 204—ADMINISTRATIVE AND INFORMATION MATTERS Defense Federal Acquisition Regulation Supplement: Requiring Data Other Than Certified Cost or Pricing Data (DFARS Case 2020–D008) 1. The authority citation for 48 CFR part 204 continues to read as follows: ■ Authority: 41 U.S.C. 1303 and 48 CFR chapter 1. 2. Amend section 204.804 by revising paragraph (3)(i) to read as follows: ■ § 204.804 Closeout of contract files. * * * * * (3)(i) In accordance with section 836 of the National Defense Authorization Act for Fiscal Year 2017 (Pub. L. 114– 328), section 824 of the National Defense Authorization Act for Fiscal Year 2018 (Pub. L. 115–91), and section 820 of the National Defense Authorization Act for Fiscal Year 2021 (Pub. L. 116–283), contracting officers may close out contracts or groups of contracts through issuance of one or more modifications to such contracts without completing a reconciliation audit or other corrective action in accordance with FAR 4.804–5(a)(3) through (15), as appropriate, if each contract— (A)(1) For military construction (as defined at 10 U.S.C. 2801) or shipbuilding, was awarded at least 10 fiscal years before the current fiscal year; or (2) For all other contracts, was awarded at least 7 fiscal years before the current fiscal year; (B) The performance or delivery was completed at least 4 years prior to the current fiscal year; and (C) Has been determined by a contracting official, at least one level above the contracting officer, to be not otherwise reconcilable, because— (1) The contract or related payment records have been destroyed or lost; or (2) Although contract or related payment records are available, the time or effort required to establish the exact amount owed to the U.S. Government or PO 00000 Frm 00024 Fmt 4702 Sfmt 4702 [Docket DARS–2021–0015] 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 implement a section of the National Defense Authorization Act for Fiscal Year 2020 that provides additional requirements relating to the submission of data other than certified cost or pricing data. DATES: Comments on the proposed rule should be submitted in writing to the address shown below on or before October 29, 2021, to be considered in the formation of a final rule. ADDRESSES: Submit comments identified by DFARS Case 2020–D008, using any of the following methods: Æ Federal eRulemaking Portal: https://www.regulations.gov. Search for ‘‘DFARS Case 2020–D008.’’ Select ‘‘Comment’’ and follow the instructions to submit a comment. Please include your name, company name (if any), and ‘‘DFARS Case 2020–D008’’ on any attached document. Æ Email: osd.dfars@mail.mil. Include DFARS Case 2020–D008 in the subject line of the message. 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 https:// www.regulations.gov, approximately two to three days after submission to verify posting. FOR FURTHER INFORMATION CONTACT: Mr. David E. Johnson, telephone 571–372– 6115. SUMMARY: SUPPLEMENTARY INFORMATION: E:\FR\FM\30AUP1.SGM 30AUP1

Agencies

[Federal Register Volume 86, Number 165 (Monday, August 30, 2021)]
[Proposed Rules]
[Pages 48366-48368]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-18341]


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DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Part 204

[Docket DARS-2021-0017]
RIN 0750-AL48


Defense Federal Acquisition Regulation Supplement: Contract 
Closeout Authority for DoD Services Contracts (DFARS Case 2021-D012)

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

ACTION: Proposed rule.

-----------------------------------------------------------------------

[[Page 48367]]

SUMMARY: DoD is proposing to amend the Defense Federal Acquisition 
Regulation Supplement (DFARS) to implement a section of the National 
Defense Authorization Act for Fiscal Year 2021.

DATES: Comments on the proposed rule should be submitted in writing to 
the address shown below on or before October 29, 2021, to be considered 
in the formation of the final rule.

ADDRESSES: Submit comments identified by DFARS Case 2021-D012, using 
any of the following methods:
    [cir] Federal eRulemaking Portal: https://www.regulations.gov. 
Search for ``DFARS Case 2021-D012.'' Select ``Comment'' and follow the 
instructions to submit a comment. Please include your name, company 
name (if any), and ``DFARS Case 2021-D012'' on any attached document.
    [cir] Email: [email protected]. Include DFARS Case 2021-D012 in 
the subject line of the message.
    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 https://www.regulations.gov, approximately two to three days after submission 
to verify posting.

FOR FURTHER INFORMATION CONTACT: Ms. Kimberly R. Ziegler, telephone 
571-372-6095.

SUPPLEMENTARY INFORMATION:

I. Background

    This rule proposes to amend DFARS subpart 204.8 to implement 
section 820 of the National Defense Authorization Act (NDAA) for Fiscal 
Year (FY) 2021 (Pub. L. 116-283). Section 820 amends section 836(b) of 
the NDAA for FY 2017 (Pub. L. 114-328), as modified by section 824 of 
the NDAA for FY 2018 (Pub. L. 115-91). Section 836 authorizes DoD 
contracting officers to close out certain physically complete contracts 
or groups of contracts through modification of such contracts, without 
completing the requirements of Federal Acquisition Regulation (FAR) 
4.804-5(a)(3) through (15) based upon the age of the contract action.
    DoD published a final rule at 84 FR 18153 on April 30, 2019, to 
implement sections 836 of the NDAA for FY 2017 and 824 of the NDAA for 
FY 2018. The final rule provided similar authorities for contracts 
meeting certain criteria that were entered into on a date that was at 
least 17 fiscal years prior to the current fiscal year.

II. Discussion and Analysis

    Section 820 expands the application of the expedited contract 
closeout authority of section 836 of the NDAA for FY 2017, implemented 
at DFARS 204.804(3)(i)(A), to certain contracts or groups of contracts 
that were awarded at least 7 or 10 fiscal years before the current 
fiscal year and have completed performance or delivery at least four 
years prior to the current fiscal year.
    DFARS 204.804(3)(i)(A) currently provides a blanket application of 
the 17 fiscal year standard, when certain requirements at 
204.804(3)(i)(B) and (C) are met. Section 820 provides two new 
standards, one of which provides a similar blanket application, but the 
number of fiscal years is reduced from 17 to 7. The second standard of 
at least 10 fiscal years only applies to contracts or groups of 
contracts for military construction, as defined in 10 U.S.C. 2801, or 
shipbuilding. Both new standards require physical completion (see FAR 
4.804-4) at least four years prior to the current fiscal year.

III. Applicability to Contracts at or Below the Simplified Acquisition 
Threshold (SAT) and for Commercial Items, Including Commercially 
Available Off-The-Shelf (COTS) Items

    This proposed rule does not create any new solicitation provisions 
or contract clauses. It does not impact any existing solicitation 
provisions or contract clauses or their applicability to contracts 
valued at or below the simplified acquisition threshold or for 
commercial items, including COTS items.

IV. Expected Impact of the Rule

    DFARS 204.804(3)(i) currently provides for the expedited closeout 
of contracts or groups of contracts without completion of a 
reconciliation audit or other corrective actions required by FAR 4.804-
5(a)(3) through (15) if certain criteria are met. If a contract was 
entered into at least 17 years prior to the current fiscal year, is 
physically complete, and has been determined not reconcilable, the 
contracting officer may close the contract through a negotiated 
settlement.
    This rule reduces the age requirement from 17 years to 10 years for 
military construction and shipbuilding and 7 years for all other 
contract actions. The rule adds a new requirement that these contracts 
must be physically complete at least four years prior to the current 
fiscal year.
    The expanded authority will apply to more recent contracts, subject 
to the other criteria in DFARS 204.804(3)(i), to reduce the current 
backlog and administration requirements for contracts eligible for 
closeout.

V. 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.

VI. Congressional Review Act

    As required by the Congressional Review Act (5 U.S.C. 801-808) 
before an interim or final rule takes effect, DoD will submit a copy of 
the interim or final rule with the form, Submission of Federal Rules 
Under the Congressional Review Act, to the U.S. Senate, the U.S. House 
of Representatives, and the Comptroller General of the United States. A 
major rule under the Congressional Review Act cannot take effect until 
60 days after it is published in the Federal Register. This rule is not 
anticipated to be a major rule under 5 U.S.C. 804.

VII. Regulatory Flexibility Act.

    DoD does not expect this 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 this rule 
implements requirements primarily for the Government. However, an 
initial regulatory flexibility analysis has been performed and is 
summarized as follows:
    This rule proposes to amend the Defense Federal Acquisition 
Regulation Supplement (DFARS) to implement section 820 of the National 
Defense Authorization Act (NDAA) for Fiscal Year (FY) 2021 (Pub. L. 
116-283). Section 820 expands the application of the expedited contract 
closeout authority of section 836 of the NDAA for FY 2017, implemented 
at DFARS 204.804(3)(i)(A), to certain contracts or groups of contracts 
that were awarded at least 7 to 10 FYs before the current FY and have 
completed performance or delivery at least four years prior to the 
current FY. The new 10-year standard

[[Page 48368]]

will apply to contracts or groups of contracts for military 
construction, as defined in 10 U.S.C. 2801, or shipbuilding, while the 
7-year standard will apply to all other contracts.
    The objective of the rule is to implement the requirements of 
section 820, which expands the application of the expedited contract 
closeout authority of section 836 of the NDAA for FY 2017 to more 
recent, physically complete contracts. The legal basis of the rule is 
section 820 of the NDAA for FY 2021.
    This rule will likely affect small entities that have been or will 
be awarded DoD contracts, including those under FAR part 12 procedures 
for the acquisition of commercial items, including commercially 
available off-the-shelf items. Data was obtained from the Electronic 
Data Access module of the Procurement Integrated Enterprise Environment 
for contracts that were physically completed at least four years ago 
and are eligible for closeout between the new standard of 7 or 10 years 
and the previous standard of at least 17 fiscal years after award. The 
data were then compared to the Federal Procurement Data System (FPDS) 
to estimate the number of contracts awarded to small entities. 
Contracts subject to the previous standard of 17 years are included in 
this estimate.
    As of April 2021, the FPDS data indicate that approximately 29,200 
contracts, eligible for expedited closeout under the 7-year standard, 
were awarded to an estimated 4,490 unique small entities. An additional 
estimated 1,775 contracts, subject to the 10-year standard, were 
awarded to approximately 576 small entities. As a result, DoD estimates 
that approximately 5,066 small entities will have the opportunity to 
benefit from the expanded expedited contract authorities provided in 
this rule.
    The rule does not impose any new reporting, recordkeeping, or 
compliance requirements.
    The rule does not duplicate, overlap, or conflict with any other 
Federal rules.
    There are no practical alternatives that will accomplish the 
objectives of the statute.
    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 the 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 2021-D012), in 
correspondence.

VIII. Paperwork Reduction Act

    This rule does not contain any information collection requirements 
that require the approval of the Office of Management and Budget (OMB) 
under the Paperwork Reduction Act (44 U.S.C. chapter 35).

List of Subjects in 48 CFR Part 204

    Government procurement.

Jennifer D. Johnson,
Editor/Publisher, Defense Acquisition Regulations System.

    Therefore, 48 CFR part 204 is proposed to be amended as follows:

PART 204--ADMINISTRATIVE AND INFORMATION MATTERS

0
1. The authority citation for 48 CFR part 204 continues to read as 
follows:

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

0
2. Amend section 204.804 by revising paragraph (3)(i) to read as 
follows:


Sec.  204.804  Closeout of contract files.

* * * * *
    (3)(i) In accordance with section 836 of the National Defense 
Authorization Act for Fiscal Year 2017 (Pub. L. 114-328), section 824 
of the National Defense Authorization Act for Fiscal Year 2018 (Pub. L. 
115-91), and section 820 of the National Defense Authorization Act for 
Fiscal Year 2021 (Pub. L. 116-283), contracting officers may close out 
contracts or groups of contracts through issuance of one or more 
modifications to such contracts without completing a reconciliation 
audit or other corrective action in accordance with FAR 4.804-5(a)(3) 
through (15), as appropriate, if each contract--
    (A)(1) For military construction (as defined at 10 U.S.C. 2801) or 
shipbuilding, was awarded at least 10 fiscal years before the current 
fiscal year; or
    (2) For all other contracts, was awarded at least 7 fiscal years 
before the current fiscal year;
    (B) The performance or delivery was completed at least 4 years 
prior to the current fiscal year; and
    (C) Has been determined by a contracting official, at least one 
level above the contracting officer, to be not otherwise reconcilable, 
because--
    (1) The contract or related payment records have been destroyed or 
lost; or
    (2) Although contract or related payment records are available, the 
time or effort required to establish the exact amount owed to the U.S. 
Government or amount owed to the contractor is disproportionate to the 
amount at issue.
* * * * *
[FR Doc. 2021-18341 Filed 8-27-21; 8:45 am]
BILLING CODE 5001-06-P