Defense Federal Acquisition Regulation Supplement: Contract Administration Office Functions Relating to Direct Costs (DFARS Case 2022-D021), 17354-17355 [2023-05674]
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17354
Federal Register / Vol. 88, No. 55 / Wednesday, March 22, 2023 / Rules and Regulations
The revision reads as follows:
252.228–7003
Capture and Detention.
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*
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■ 9. Amend section 252.228–7005—
■ a. By revising the section heading; and
■ b. In the introductory text by
removing ‘‘228.370(d)’’ and adding
‘‘228.371(d)’’ in its place.
The revision reads as follows:
252.228–7005 Mishap Reporting and
Investigation Involving Aircraft, Missiles,
and Space Launch Vehicles.
*
*
*
*
*
10. Amend section 252.228–7006—
a. By revising the section heading; and
b. In the introductory text by
removing ‘‘228.370(e)’’ and adding
‘‘228.371(e)’’ in its place.
The revision reads as follows:
■
■
■
252.228–7006 Compliance with Spanish
Laws and Insurance.
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*
*
*
*
11. Add section 252.228–7007 to read
as follows:
■
252.228–7007 Public Aircraft and State
Aircraft Operations—Liability.
As prescribed in 228.371(f), use the
following clause:
lotter on DSK11XQN23PROD with RULES2
Public Aircraft and State Aircraft
Operations—Liability (Mar 2023)
(a) Definitions. As used in this clause—
Civil aircraft means an aircraft other than
a public aircraft or state aircraft.
Public aircraft means an aircraft that meets
the definition in 49 U.S.C. 40102(a)(41) and
the qualifications in 49 U.S.C. 40125.
Specifically, a public aircraft means any of
the following:
(1) An aircraft used only for the
Government, except as provided in
paragraphs (5) and (7) of this definition.
(2) An aircraft owned by the Government
and operated by any person for purposes
related to crew training, equipment
development, or demonstration, except as
provided in paragraph (7) of this definition.
(3) An aircraft owned and operated by the
government of a State, the District of
Columbia, or a territory or possession of the
United States or a political subdivision of
one of these governments, except as provided
in paragraph (7) of this definition.
(4) An aircraft exclusively leased for at
least 90 continuous days by the government
of a State, the District of Columbia, or a
territory or possession of the United States or
a political subdivision of one of these
governments, except as provided in
paragraph (7) of this definition.
(5) An aircraft owned or operated by the
armed forces or chartered to provide
transportation or other commercial air
service to the armed forces under the
conditions specified by 49 U.S.C. 40125(c). In
the preceding sentence, the term ‘‘other
commercial air service’’ means an aircraft
operation that—
(i) Is within the United States territorial
airspace;
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17:56 Mar 21, 2023
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(ii) The Administrator of the Federal
Aviation Administration determines is
available for compensation or hire to the
public; and
(iii) Must comply with all applicable civil
aircraft rules under title 14, Code of Federal
Regulations.
(6) An unmanned aircraft that is owned
and operated, or exclusively leased for at
least 90 continuous days, by an Indian Tribal
government, as defined in section 102 of the
Robert T. Stafford Disaster Relief and
Emergency Assistance Act (42 U.S.C. 5122),
except as provided in paragraph (7) of this
definition.
(7) As described in 49 U.S.C. 40125(b), an
aircraft described in paragraph (1), (2), (3), or
(4) of this definition does not qualify as a
public aircraft when the aircraft is used for
commercial purposes or to carry an
individual other than a crewmember or a
qualified non-crewmember.
Public aircraft operation means operation
of an aircraft that meets the legal definition
of public aircraft established in 49 U.S.C.
40102(a)(41) and the legal qualifications for
public aircraft status outlined in 49 U.S.C.
40125.
State aircraft means an aircraft operated by
the Government for sovereign,
noncommercial purposes such as military,
customs, and police services. Military aircraft
are afforded status as state aircraft. In very
rare circumstances, DoD-contracted aircraft
may be designated, in writing, by a
responsible Government official pursuant to
DoD Directive 4500.54E, DoD Foreign
Clearance Program, to be operated in state
aircraft status, and such status cannot be
deemed without a written designation by an
authorized Government official.
(b) Combined regulation/instruction. Upon
award, for contract performance to be
conducted as a public aircraft operation, the
Contractor shall be bound by the operating
procedures contained in the combined
regulation/instruction entitled ‘‘Contractor’s
Flight and Ground Operations’’ (Air Force
Instruction 10–220, Army Regulation 95–20,
NAVAIR Instruction 3710.1 (Series), Coast
Guard Instruction M13020.3 (Series), and
Defense Contract Management Agency
Instruction 8210–1 (Series)) in effect on the
date of contract award.
(c) Contractor liability for operations for
contract performance conducted as public
aircraft operations or state aircraft
operations.
(1) The Contractor assumes responsibility
for all damage or injury to persons or
property, including the Contractor’s
employees and property, and Government
personnel and property, occasioned through
the use, maintenance, and operation of the
Contractor’s aircraft or other equipment by,
or the action of, the Contractor or the
Contractor’s employees and agents.
(2) The Contractor, at the Contractor’s
expense, shall maintain adequate public
liability and property damage insurance,
including hull insurance for the Contractor’s
aircraft, during the duration of this contract,
insuring the Contractor against all claims for
injury or damage.
(3) The Contractor shall maintain workers’
compensation and other legally required
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insurance with respect to the Contractor’s
own employees and agents.
(4) The Government will in no event be
liable or responsible for damage or injury to
any person or property occasioned through
the use, maintenance, or operation of any
aircraft or other equipment by, or the action
of, the Contractor or the Contractor’s
employees and agents in performing under
this contract, and the Government shall be
indemnified and saved harmless against
claims for damage or injury in such cases.
(End of clause)
[FR Doc. 2023–05673 Filed 3–21–23; 8:45 am]
BILLING CODE 5001–06–P
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations
System
48 CFR Part 242
[Docket DARS–2023–0007]
RIN 0750–AL69
Defense Federal Acquisition
Regulation Supplement: Contract
Administration Office Functions
Relating to Direct Costs (DFARS Case
2022–D021)
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 clarify when a contract
administration office has authority to
negotiate and settle direct costs
questioned in incurred cost audits.
DATES: Effective March 22, 2023.
FOR FURTHER INFORMATION CONTACT:
David E. Johnson, telephone 202–913–
5764.
SUMMARY:
SUPPLEMENTARY INFORMATION:
I. Background
DoD is issuing a final rule to amend
the DFARS by adding to section
242.302(b) an additional contract
administrative function delegable from a
procuring contracting office to a
contract administration office. DFARS
242.302(b) specifies functions
performed by the contract
administration office ‘‘only when and to
the extent specifically authorized’’ by
the procuring contracting office, as
stated in Federal Acquisition Regulation
(FAR) 42.302. Any administrative
functions unspecified under FAR 42.302
or DFARS 242.302, and not otherwise
delegated, remain the responsibility of
the procuring contracting office. This
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22MRR2
Federal Register / Vol. 88, No. 55 / Wednesday, March 22, 2023 / Rules and Regulations
rule explicitly allows delegation of
authority from the procuring contracting
office to the Government contract
administration office to negotiate and
settle direct costs questioned in
incurred cost audits.
II. Publication of This Final Rule for
Public Comment Is Not Required by
Statute
The statute that applies to the
publication of the FAR is 41 U.S.C.
1707, Publication of Proposed
Regulations. Subsection (a)(1) of the
statute requires that a procurement
policy, regulation, procedure, or form
(including an amendment or
modification thereof) must be published
for public comment if it relates to the
expenditure of appropriated funds, and
has either a significant effect beyond the
internal operating procedures of the
agency issuing the policy, regulation,
procedure, or form, or has a significant
cost or administrative impact on
contractors or offerors. This final rule is
not required to be published for public
comment, because it merely involves
assignment among DoD agencies of an
existing contract administrative
function. This rule does not have a
significant cost or administrative impact
on contractors or offerors, and it does
not have a significant effect beyond
DoD’s internal operating procedures.
III. Applicability to Contracts at or
Below the Simplified Acquisition
Threshold, for Commercial Services,
and for Commercial Products,
Including Commercially Available Offthe-Shelf Items
This rule does not create any new
solicitation provisions or contract
clauses. It does not impact any existing
solicitation provisions or contract
clauses or prescriptions for their use.
lotter on DSK11XQN23PROD with RULES2
IV. 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.
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17:56 Mar 21, 2023
Jkt 259001
V. 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.
VI. Regulatory Flexibility Act
The Regulatory Flexibility Act does
not apply to this rule because this final
rule does not constitute a significant
DFARS revision within the meaning of
FAR 1.501–1, and 41 U.S.C. 1707 does
not require publication for public
comment.
VII. Paperwork Reduction Act
This 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 Part 242
Government procurement.
Jennifer D. Johnson,
Editor/Publisher, Defense Acquisition
Regulations System.
Therefore, 48 CFR part 242 is
amended as follows:
PART 242—CONTRACT
ADMINISTRATION AND AUDIT
SERVICES
1. The authority citation for 48 CFR
part 242 continues to read as follows:
■
Authority: 41 U.S.C. 1303 and 48 CFR
chapter 1.
2. Amend section 242.302 by adding
paragraph (b)(S–71) to read as follows:
■
242.302
Contract administration functions.
*
*
*
*
*
(b) * * *
(S–71)(A) Except for classified
contracts, negotiate or settle questioned
direct costs in an incurred cost audit.
The procuring contracting officer may
delegate this authority to the contract
administration office (CAO) only upon
prior coordination and agreement with
the CAO. Upon such delegation, the
procuring contracting officer shall
provide the CAO access within 30 days
to all supporting documentation in their
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17355
possession related to the questioned
direct costs in an incurred cost audit.
(B) After settlement of the questioned
direct costs, the CAO shall provide the
procuring contracting office the results
of the settlement. The procuring
contracting office shall make any
adjustments resulting from the
settlement on affected contracts and
report such adjustments to the CAO.
[FR Doc. 2023–05674 Filed 3–21–23; 8:45 am]
BILLING CODE 5001–06–P
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations
System
48 CFR Parts 243 and 252
[Docket DARS–2023–0001]
Defense Federal Acquisition
Regulation Supplement: Technical
Amendments
Defense Acquisition
Regulations System, Department of
Defense (DoD).
ACTION: Final rule.
AGENCY:
DoD is making technical
amendments to the Defense Federal
Acquisition Regulation Supplement
(DFARS) to provide needed editorial
changes.
DATES: Effective March 22, 2023.
FOR FURTHER INFORMATION CONTACT:
Jennifer D. Johnson, telephone 703–
717–8226.
SUPPLEMENTARY INFORMATION: This final
rule makes the following changes:
1. A final rule published at 88 FR
6578 on January 31, 2023, provided an
incorrect reference at amendatory
instruction 149 by citing ‘‘242.205–71’’
in lieu of ‘‘243.205–71’’. This rule
provides the correct amendatory
instruction.
2. This rule amends section 252.215–
7009, Proposal Adequacy Checklist, at
item 18 in the column entitled
‘‘Submission item’’ in the introductory
text and paragraph a by updating
terminology referencing commercial
products.
SUMMARY:
List of Subjects in 48 CFR Parts 243 and
252
Government procurement.
Jennifer D. Johnson,
Editor/Publisher, Defense Acquisition
Regulations System.
Therefore, 48 CFR parts 243 and 252
are amended as follows:
■ 1. The authority citation for 48 CFR
parts 243 and 252 continues to read as
follows:
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22MRR2
]]>Agencies
[Federal Register Volume 88, Number 55 (Wednesday, March 22, 2023)]
[Rules and Regulations]
[Pages 17354-17355]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-05674]
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System
48 CFR Part 242
[Docket DARS-2023-0007]
RIN 0750-AL69
Defense Federal Acquisition Regulation Supplement: Contract
Administration Office Functions Relating to Direct Costs (DFARS Case
2022-D021)
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 clarify when a contract
administration office has authority to negotiate and settle direct
costs questioned in incurred cost audits.
DATES: Effective March 22, 2023.
FOR FURTHER INFORMATION CONTACT: David E. Johnson, telephone 202-913-
5764.
SUPPLEMENTARY INFORMATION:
I. Background
DoD is issuing a final rule to amend the DFARS by adding to section
242.302(b) an additional contract administrative function delegable
from a procuring contracting office to a contract administration
office. DFARS 242.302(b) specifies functions performed by the contract
administration office ``only when and to the extent specifically
authorized'' by the procuring contracting office, as stated in Federal
Acquisition Regulation (FAR) 42.302. Any administrative functions
unspecified under FAR 42.302 or DFARS 242.302, and not otherwise
delegated, remain the responsibility of the procuring contracting
office. This
[[Page 17355]]
rule explicitly allows delegation of authority from the procuring
contracting office to the Government contract administration office to
negotiate and settle direct costs questioned in incurred cost audits.
II. Publication of This Final Rule for Public Comment Is Not Required
by Statute
The statute that applies to the publication of the FAR is 41 U.S.C.
1707, Publication of Proposed Regulations. Subsection (a)(1) of the
statute requires that a procurement policy, regulation, procedure, or
form (including an amendment or modification thereof) must be published
for public comment if it relates to the expenditure of appropriated
funds, and has either a significant effect beyond the internal
operating procedures of the agency issuing the policy, regulation,
procedure, or form, or has a significant cost or administrative impact
on contractors or offerors. This final rule is not required to be
published for public comment, because it merely involves assignment
among DoD agencies of an existing contract administrative function.
This rule does not have a significant cost or administrative impact on
contractors or offerors, and it does not have a significant effect
beyond DoD's internal operating procedures.
III. Applicability to Contracts at or Below the Simplified Acquisition
Threshold, for Commercial Services, and for Commercial Products,
Including Commercially Available Off-the-Shelf Items
This rule does not create any new solicitation provisions or
contract clauses. It does not impact any existing solicitation
provisions or contract clauses or prescriptions for their use.
IV. 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.
V. 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.
VI. Regulatory Flexibility Act
The Regulatory Flexibility Act does not apply to this rule because
this final rule does not constitute a significant DFARS revision within
the meaning of FAR 1.501-1, and 41 U.S.C. 1707 does not require
publication for public comment.
VII. Paperwork Reduction Act
This 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 Part 242
Government procurement.
Jennifer D. Johnson,
Editor/Publisher, Defense Acquisition Regulations System.
Therefore, 48 CFR part 242 is amended as follows:
PART 242--CONTRACT ADMINISTRATION AND AUDIT SERVICES
0
1. The authority citation for 48 CFR part 242 continues to read as
follows:
Authority: 41 U.S.C. 1303 and 48 CFR chapter 1.
0
2. Amend section 242.302 by adding paragraph (b)(S-71) to read as
follows:
242.302 Contract administration functions.
* * * * *
(b) * * *
(S-71)(A) Except for classified contracts, negotiate or settle
questioned direct costs in an incurred cost audit. The procuring
contracting officer may delegate this authority to the contract
administration office (CAO) only upon prior coordination and agreement
with the CAO. Upon such delegation, the procuring contracting officer
shall provide the CAO access within 30 days to all supporting
documentation in their possession related to the questioned direct
costs in an incurred cost audit.
(B) After settlement of the questioned direct costs, the CAO shall
provide the procuring contracting office the results of the settlement.
The procuring contracting office shall make any adjustments resulting
from the settlement on affected contracts and report such adjustments
to the CAO.
[FR Doc. 2023-05674 Filed 3-21-23; 8:45 am]
BILLING CODE 5001-06-P
