Defense Federal Acquisition Regulation Supplement: Quick-Closeout Procedures Threshold (DFARS Case 2021-D001), 12864-12865 [2023-04027]
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12864
Federal Register / Vol. 88, No. 40 / Wednesday, March 1, 2023 / Rules and Regulations
III. Executive Orders 12866 and 13563
PART 252—SOLICITATION
PROVISIONS AND CONTRACT
CLAUSES
252.232–7017
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.
[Removed and Reserved]
5. Remove and reserve section
252.232–7017.
■
[FR Doc. 2023–04028 Filed 2–28–23; 8:45 am]
BILLING CODE 5001–06–P
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations
System
48 CFR Part 242
[Docket DARS–2022–0025]
IV. Congressional Review Act
RIN 0750–AL20
Defense Federal Acquisition
Regulation Supplement: QuickCloseout Procedures Threshold
(DFARS Case 2021–D001)
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 implement a
recommendation from the Government
Accountability Office regarding quickcloseout procedures.
DATES: Effective March 1, 2023.
FOR FURTHER INFORMATION CONTACT:
David E. Johnson, telephone 202–913–
5764.
SUMMARY:
SUPPLEMENTARY INFORMATION:
I. Background
ddrumheller on DSK120RN23PROD with RULES
DoD published a proposed rule in the
Federal Register at 87 FR 65505 on
October 28, 2022, to amend the DFARS
to update the quick-closeout procedures
and expand contracts eligible for quickcloseout. There were no public
comments submitted in response to the
proposed rule. There are no changes
made to the final rule.
II. Applicability to Contracts at or
Below the Simplified Acquisition
Threshold (SAT) and for Commercial
Products, Including Commercially
Available Off-the-Shelf (COTS) Items,
and Commercial Services
This rule does not create any new
solicitation provisions or contract
clauses. It does not impact any existing
solicitation provisions or contract
clauses.
VerDate Sep<11>2014
16:10 Feb 28, 2023
Jkt 259001
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. The Office of
Information and Regulatory Affairs has
determined that this rule is not a major
rule as defined by 5 U.S.C. 804.
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:
This rule revises the DFARS to
implement changes to the indirect cost
rate quick-closeout procedures.
Government Accountability Office
Report 17–738, Federal Contracting:
Additional Management Attention and
Action Needed to Close Contracts and
Reduce Audit Backlog, published
September 2017 recommended that DoD
develop a means for Department-wide
oversight into both components’
progress in meeting goals on closing
contracts and the status of contracts
eligible for closeout. The Advisory
Panel on Streamlining and Codifying
Acquisition Regulations (Section 809
Panel) was established pursuant to
section 809 of the National Defense
Authorization Act for Fiscal Year 2016
(Pub. L. 114–92) to deliver
recommendations that could transform
the defense acquisition system to meet
the threats and demands of the 21st
century. Additionally, the Section 809
PO 00000
Frm 00060
Fmt 4700
Sfmt 4700
Panel recommended authorizing the
settlement of final overhead rates when
it is in the best interest of the
Government and closing complete
contracts regardless of dollar value or
the percentage of unsettled direct and
indirect costs allocable to the contracts
(recommendation 58).
This rule states that the amount of
unsettled direct costs and indirect costs
to be allocated to the contract, task
order, or delivery order will be
considered relatively insignificant when
the total unsettled direct costs or
indirect costs to be allocated do not
exceed $2 million. Additionally, DCMA
administrative contracting officers may
negotiate the settlement of direct and
indirect costs for a specific contract,
task order, or delivery order to be closed
in advance of the determination of final
direct costs and indirect rates set forth
in FAR 42.705 regardless of the dollar
value or percentage of unsettled direct
or indirect costs allocable to the
contract.
There were no public comments
submitted in response to the proposed
rule.
This rule will likely affect small
entities that have been or will be
awarded contracts, task orders, and
delivery orders valued over $2 million.
Data was obtained from the
Procurement Business Intelligence
Service (PBIS) for contracts that were
awarded in fiscal years 2019 through
2021 and eligible for quick-closeout
procedures, were valued at more than
$2 million, and contained one of the
following FAR clauses:
• 52.216–7, Allowable Cost and
Payment (including Alternates I, II, IV);
• 52.216–17, Incentive Price
Revision—Successive Targets (including
Alternate I);
• 52.242–3, Penalties for Unallowable
Costs; and
• 52.242–4, Certification of Final
Indirect Costs.
Data from PBIS revealed DoD awarded
contracts to an average of 832 small
businesses per year in fiscal years 2019
through 2021. Therefore, this rule may
apply to approximately 832 unique
small entities.
The rule does not impose any new
reporting, recordkeeping, or compliance
requirements.
DoD did not identify any significant
alternatives that would minimize or
reduce the significant economic impact
on small entities because this rule is not
expected to have a significant impact on
small entities.
VI. Paperwork Reduction Act
This rule does not contain any
information collection requirements that
E:\FR\FM\01MRR1.SGM
01MRR1
Federal Register / Vol. 88, No. 40 / Wednesday, March 1, 2023 / Rules and Regulations
require the approval of the Office of
Management and Budget under the
Paperwork Reduction Act (44 U.S.C.
chapter 35).
DEPARTMENT OF COMMERCE
List of Subjects in 48 CFR Part 242
50 CFR Part 660
National Oceanic and Atmospheric
Administration
Government procurement.
[Docket No. 230217–0046]
Jennifer D. Johnson,
Editor/Publisher, Defense Acquisition
Regulations System.
RIN 0648–BL48
Therefore, 48 CFR 242 is amended as
follows:
PART 242—CONTRACT
ADMINISTRATION AND AUDIT
SERVICES
National Marine Fisheries
Service (NMFS), National Oceanic and
Atmospheric Administration (NOAA),
Commerce.
ACTION: Final rule; correcting
amendment.
AGENCY:
1. The authority citation for 48 CFR
242 continues to read as follows:
■
Authority: 41 U.S.C. 1303 and 48 CFR
chapter 1.
2. Add section 242.708 to read as
follows:
■
242.708
(a) Defense Contract Management
Agency administrative contracting
officers are authorized to negotiate the
settlement of direct and indirect costs
for a specific contract, task order, or
delivery order to be closed in advance
of the determination of final direct costs
and indirect rates set forth in FAR
42.705, regardless of the dollar value or
percentage of unsettled direct or
indirect costs allocable to the contract,
task order, or delivery order.
(2) In lieu of the thresholds at FAR
42.708(a)(2)(i) and (ii), the amount of
unsettled direct costs and indirect costs
to be allocated to the contract, task
order, or delivery order will be
considered relatively insignificant when
the total unsettled direct costs and
indirect costs to be allocated to any one
contract, task order, or delivery order do
not exceed $2 million, regardless of the
total contract, task order, or delivery
order amount.
ddrumheller on DSK120RN23PROD with RULES
BILLING CODE 5001–06–P
VerDate Sep<11>2014
16:10 Feb 28, 2023
Jkt 259001
NMFS is correcting the 2023–
2024 harvest specifications and
management measures for groundfish
caught in the U.S. exclusive economic
zone seaward of Washington, Oregon,
and California published on December
16, 2022. These corrections are
necessary so the regulations accurately
implement the intent of the Pacific
Fishery Management Council.
DATES: This correction is effective
March 1, 2023. As of March 1, 2023, the
revision to § 660.360(c)(2)(i)(D) in
amendatory instruction 18, of the final
rule published December 11, 2020, at 85
FR 79880, is withdrawn.
ADDRESSES: This rule is accessible at the
Office of the Federal Register website at
https://www.federalregister.gov.
Background information and documents
are available at the NMFS West Coast
Region website at https://
www.fisheries.noaa.gov/action/
amendment-30-pacific-coastgroundfish-fishery-management-plan2023-2024-harvest and the Pacific
Fishery Management Council’s website
at https://www.pcouncil.org/.
FOR FURTHER INFORMATION CONTACT:
Brian Hooper, Fishery Management
Specialist, at 206–526–6117 or
brian.hooper@noaa.gov.
SUPPLEMENTARY INFORMATION: The
Pacific Coast Groundfish Fishery
Management Plan (PCGFMP) and its
implementing regulations at title 50 in
the Code of Federal Regulations (CFR),
part 660, subparts C through G, regulate
fishing for over 90 species of groundfish
seaward of Washington, Oregon, and
California. The Pacific Fishery
Management Council (Council)
SUMMARY:
Quick-closeout procedure.
[FR Doc. 2023–04027 Filed 2–28–23; 8:45 am]
Magnuson-Stevens Act Provisions;
Fisheries Off West Coast States;
Pacific Coast Groundfish Fishery;
Pacific Coast Groundfish Fishery
Management Plan; Amendment 30;
2023–24 Biennial Specifications and
Management Measures; Correcting
Amendment
PO 00000
Frm 00061
Fmt 4700
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12865
develops groundfish harvest
specifications and management
measures for 2 year periods (i.e., a
biennium). NMFS published the final
rule to implement harvest specifications
and management measures for the
2023–2024 biennium for most species
managed under the PCGFMP on
December 16, 2022 (87 FR 77007). That
final rule was effective January 1, 2023.
After publication of the final rule,
NMFS noted the need for corrections to
accurately implement the intent of the
Council.
Corrections
The final rule inadvertently omitted
clarifications regarding declaration
codes for non-bottom contact hook and
line gear for groundfish (e.g., troll, jig
gear, rod and reel gear) (declaration
code 35), open access non-bottom
contact stationary vertical jig gear
(declaration code 36) and open access
non-bottom contact troll gear
(declaration code 37). The final rule
implementing requirements for a
Federal non-trawl logbook (87 FR
59724, October 3, 2022) revised and
added declaration codes to ensure codes
better aligned with the gear profiles
described in the electronic non-trawl
logbook application. The final rule
implementing harvest specifications and
management measures for the 2023–
2024 biennium (87 FR 77007, December
16, 2022) allowed for vessels in the
directed open access fishery targeting
groundfish to operate inside the nontrawl Rockfish Conservation Area (NT–
RCA) from 46°16′ N lat. to the U.S./
Mexico border with non-bottom contact
hook-and-line gear only. The final rule
inadvertently did not add clarifying
language to the declaration codes to
indicate which codes could be used to
fish inside the NT–RCA. This correcting
amendment revises
§ 660.13(d)(4)(iv)(A)(27) through (29) to
clarify that declaration code 35 may be
used only outside the NT–RCA, and
declaration codes 36 and 37 may be
used inside and outside of the NT–RCA.
After the final rule was published,
NMFS received questions on which
declaration code applies when fishing
inside or outside the NT–RCA. This
non-substantive clarification is
consistent with the intent described in
the preamble of the final rule. It
provides needed clarity around the
requirements for non-trawl RCA access
implemented in the final rule.
On page 77016 of the final rule,
paragraph (o)(219) mistakenly republished the existing text at that time
instead of revised text. On page 77020
of the final rule, paragraph (q)(4) also
mistakenly re-published the existing
E:\FR\FM\01MRR1.SGM
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]]>Agencies
[Federal Register Volume 88, Number 40 (Wednesday, March 1, 2023)]
[Rules and Regulations]
[Pages 12864-12865]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-04027]
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System
48 CFR Part 242
[Docket DARS-2022-0025]
RIN 0750-AL20
Defense Federal Acquisition Regulation Supplement: Quick-Closeout
Procedures Threshold (DFARS Case 2021-D001)
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 implement a recommendation
from the Government Accountability Office regarding quick-closeout
procedures.
DATES: Effective March 1, 2023.
FOR FURTHER INFORMATION CONTACT: David E. Johnson, telephone 202-913-
5764.
SUPPLEMENTARY INFORMATION:
I. Background
DoD published a proposed rule in the Federal Register at 87 FR
65505 on October 28, 2022, to amend the DFARS to update the quick-
closeout procedures and expand contracts eligible for quick-closeout.
There were no public comments submitted in response to the proposed
rule. There are no changes made to the final rule.
II. Applicability to Contracts at or Below the Simplified Acquisition
Threshold (SAT) and for Commercial Products, Including Commercially
Available Off-the-Shelf (COTS) Items, and Commercial Services
This rule does not create any new solicitation provisions or
contract clauses. It does not impact any existing solicitation
provisions or contract clauses.
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.
IV. 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. The Office of
Information and Regulatory Affairs has determined that this rule is not
a major rule as defined by 5 U.S.C. 804.
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:
This rule revises the DFARS to implement changes to the indirect
cost rate quick-closeout procedures. Government Accountability Office
Report 17-738, Federal Contracting: Additional Management Attention and
Action Needed to Close Contracts and Reduce Audit Backlog, published
September 2017 recommended that DoD develop a means for Department-wide
oversight into both components' progress in meeting goals on closing
contracts and the status of contracts eligible for closeout. The
Advisory Panel on Streamlining and Codifying Acquisition Regulations
(Section 809 Panel) was established pursuant to section 809 of the
National Defense Authorization Act for Fiscal Year 2016 (Pub. L. 114-
92) to deliver recommendations that could transform the defense
acquisition system to meet the threats and demands of the 21st century.
Additionally, the Section 809 Panel recommended authorizing the
settlement of final overhead rates when it is in the best interest of
the Government and closing complete contracts regardless of dollar
value or the percentage of unsettled direct and indirect costs
allocable to the contracts (recommendation 58).
This rule states that the amount of unsettled direct costs and
indirect costs to be allocated to the contract, task order, or delivery
order will be considered relatively insignificant when the total
unsettled direct costs or indirect costs to be allocated do not exceed
$2 million. Additionally, DCMA administrative contracting officers may
negotiate the settlement of direct and indirect costs for a specific
contract, task order, or delivery order to be closed in advance of the
determination of final direct costs and indirect rates set forth in FAR
42.705 regardless of the dollar value or percentage of unsettled direct
or indirect costs allocable to the contract.
There were no public comments submitted in response to the proposed
rule.
This rule will likely affect small entities that have been or will
be awarded contracts, task orders, and delivery orders valued over $2
million. Data was obtained from the Procurement Business Intelligence
Service (PBIS) for contracts that were awarded in fiscal years 2019
through 2021 and eligible for quick-closeout procedures, were valued at
more than $2 million, and contained one of the following FAR clauses:
52.216-7, Allowable Cost and Payment (including Alternates
I, II, IV);
52.216-17, Incentive Price Revision--Successive Targets
(including Alternate I);
52.242-3, Penalties for Unallowable Costs; and
52.242-4, Certification of Final Indirect Costs.
Data from PBIS revealed DoD awarded contracts to an average of 832
small businesses per year in fiscal years 2019 through 2021. Therefore,
this rule may apply to approximately 832 unique small entities.
The rule does not impose any new reporting, recordkeeping, or
compliance requirements.
DoD did not identify any significant alternatives that would
minimize or reduce the significant economic impact on small entities
because this rule is not expected to have a significant impact on small
entities.
VI. Paperwork Reduction Act
This rule does not contain any information collection requirements
that
[[Page 12865]]
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 Part 242
Government procurement.
Jennifer D. Johnson,
Editor/Publisher, Defense Acquisition Regulations System.
Therefore, 48 CFR 242 is amended as follows:
PART 242--CONTRACT ADMINISTRATION AND AUDIT SERVICES
0
1. The authority citation for 48 CFR 242 continues to read as follows:
Authority: 41 U.S.C. 1303 and 48 CFR chapter 1.
0
2. Add section 242.708 to read as follows:
242.708 Quick-closeout procedure.
(a) Defense Contract Management Agency administrative contracting
officers are authorized to negotiate the settlement of direct and
indirect costs for a specific contract, task order, or delivery order
to be closed in advance of the determination of final direct costs and
indirect rates set forth in FAR 42.705, regardless of the dollar value
or percentage of unsettled direct or indirect costs allocable to the
contract, task order, or delivery order.
(2) In lieu of the thresholds at FAR 42.708(a)(2)(i) and (ii), the
amount of unsettled direct costs and indirect costs to be allocated to
the contract, task order, or delivery order will be considered
relatively insignificant when the total unsettled direct costs and
indirect costs to be allocated to any one contract, task order, or
delivery order do not exceed $2 million, regardless of the total
contract, task order, or delivery order amount.
[FR Doc. 2023-04027 Filed 2-28-23; 8:45 am]
BILLING CODE 5001-06-P
