Defense Federal Acquisition Regulation Supplement: Restrictions on Overhaul and Repair of Naval Vessels in Foreign Shipyards (DFARS Case 2021-D021), 73240-73241 [2023-23432]
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Federal Register / Vol. 88, No. 205 / Wednesday, October 25, 2023 / Rules and Regulations
and preventive maintenance or repair
and facilities maintenance. The rule also
establishes the criteria under which
foreign workers or foreign contractors
may be used to perform corrective and
preventive maintenance or repair or
facilities maintenance on a naval vessel.
DoD published a proposed rule in the
Federal Register at 88 FR 17360 on
March 22, 2023, to revise the DFARS to
implement section 1025 of the NDAA
for FY 2021. One respondent submitted
a public comment in response to the
proposed rule.
List of Subjects in 48 CFR Parts 212,
225, and 252
Government procurement.
Jennifer D. Johnson,
Editor/Publisher, Defense Acquisition
Regulations System.
Accordingly, the interim rule
amending 48 CFR parts 212, 225, and
252, which was published at 88 FR
37794 on June 9, 2023, is adopted as
final without change.
■
[FR Doc. 2023–23433 Filed 10–24–23; 8:45 am]
BILLING CODE 6001–FR–P
II. Discussion and Analysis
DoD reviewed the public comment in
the development of the final rule. A
discussion of the comment is provided,
as follows:
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations
System
A. Summary of Significant Changes
48 CFR Part 225
[Docket DARS–2023–0006]
No changes are made to the final rule
as a result of public comments.
RIN 0750–AL39
B. Analysis of Public Comment
Defense Federal Acquisition
Regulation Supplement: Restrictions
on Overhaul and Repair of Naval
Vessels in Foreign Shipyards (DFARS
Case 2021–D021)
Comment: A respondent provided
comments with overall support of the
rule and stated it would save money and
reduce the need for supplies and
preventative maintenance on ships in
foreign shipyards.
Response: DoD acknowledges the
respondent’s support for the rule.
Defense Acquisition
Regulations System, Department of
Defense (DoD).
ACTION: Final rule.
AGENCY:
C. Other Changes
DoD is issuing a final rule
amending the Defense Federal
Acquisition Regulation Supplement
(DFARS) to implement a section of the
National Defense Authorization Act for
Fiscal Year 2021 that restricts overhaul
and repair of a naval vessel in a
shipyard outside the United States or
Guam.
SUMMARY:
DATES:
Kimberly Bass, telephone 703–717–
3446.
SUPPLEMENTARY INFORMATION:
IV. Expected Impact of the Rule
lotter on DSK11XQN23PROD with RULES1
I. Background
DoD is issuing a final rule amending
the DFARS to implement section 1025
of the National Defense Authorization
Act (NDAA) for Fiscal Year (FY) 2021
(Pub. L. 116–283), which amends 10
U.S.C. 8680(a) to restrict the overhaul or
repair of a naval vessel in a shipyard
outside the United States or Guam. The
restriction does not apply to voyage
repairs or to repairs required for damage
sustained due to hostile actions or
interventions. In addition, the
restriction does not apply to a naval
vessel classified as a littoral combat ship
operating on deployment for corrective
15:56 Oct 24, 2023
Jkt 262001
III. Applicability to Contracts at or
Below the Simplified Acquisition
Threshold and for Commercial
Products, Including Commercially
Available Off-the-Shelf 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 or prescriptions for their use.
Effective October 30, 2023.
FOR FURTHER INFORMATION CONTACT:
VerDate Sep<11>2014
Minor editorial changes are made in
paragraph (b) of DFARS 225.7013–2 to
comply with drafting conventions.
Currently, DFARS 225.7013 includes
the restrictions on the construction or
repair of vessels in foreign shipyards.
This rule adds the exception for repairs
necessary to correct damage sustained
due to hostile actions or interventions
and for corrective and preventive
maintenance or repair and facilities
maintenance on naval vessels classified
as littoral combat ships operating on
deployment. Under these exceptions,
the repairs or maintenance described
above may be performed in a shipyard
outside the United States or Guam in
accordance with 10 U.S.C. 8680(a). The
rule also specifies the authorized use of
PO 00000
Frm 00026
Fmt 4700
Sfmt 4700
foreign workers under certain
conditions when a determination is
made by the Secretary of the Navy, who
cannot further delegate the authority to
make such a determination.
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, as amended.
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. 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.
VII. Regulatory Flexibility Act
A final regulatory flexibility analysis
has been prepared consistent with the
Regulatory Flexibility Act, 5 U.S.C. 601,
et seq. and is summarized as follows:
DoD is issuing a final rule amending
the DFARS to implement section 1025
of the National Defense Authorization
Act (NDAA) for Fiscal Year (FY) 2021
(Pub. L. 116–283). Section 1025 amends
10 U.S.C. 8680(a) to restrict the overhaul
or repair of a naval vessel in a shipyard
outside the United States or Guam,
unless the repairs are: (1) voyage repairs
or repairs necessary to correct damage
sustained due to hostile actions or
interventions; or (2) to a naval vessel
classified as a littoral combat ship
operating on deployment for corrective
and preventive maintenance or repair
and facilities maintenance. The final
rule also establishes that: (1) foreign
workers may not be used to perform
corrective and preventive maintenance
or repair on a naval vessel unless the
E:\FR\FM\25OCR1.SGM
25OCR1
Federal Register / Vol. 88, No. 205 / Wednesday, October 25, 2023 / Rules and Regulations
Secretary of the Navy (without further
delegation) makes a determination; and
(2) foreign contractors may not be used
to perform facilities maintenance unless
approved by the Secretary of the Navy.
The objective of the rule is to implement
the restrictions of section 1025 of the
NDAA for FY 2021 on the overhaul or
repair of a naval vessel in a shipyard
outside the United States or Guam, with
exceptions as described in this
paragraph.
No public comments were received in
response to the initial regulatory
flexibility analysis.
DoD reviewed data from the Federal
Procurement Data System for fiscal
years 2020, 2021, and 2022 for contracts
for the repair or overhaul of naval
vessels outside the United States or
Guam that exceeded the simplified
acquisition threshold. DoD awarded a
total of 383 contracts to an average of 76
unique small entities.
It is expected that this rule will
continue to provide small businesses
the opportunity to participate in
acquisitions for the overhaul or repair of
a naval vessel in a shipyard outside the
United States or Guam, since naval
vessel overhaul restrictions currently
exist, and this rule provides exceptions
that allow for U.S. contractor personnel
to perform certain repairs and
maintenance in accordance with 10
U.S.C. 8680(a).
This rule does not include any new
reporting, recordkeeping, or other
compliance requirements for small
entities.
There are no known significant
alternative approaches to the rule that
would meet the requirements of the
statute.
VIII. 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 225
Government procurement.
Jennifer D. Johnson,
Editor/Publisher, Defense Acquisition
Regulations System.
lotter on DSK11XQN23PROD with RULES1
Therefore, 48 CFR part 225 is
amended as follows:
PART 225—FOREIGN ACQUISITION
1. The authority citation for 48 CFR
part 225 continues to read as follows:
■
Authority: 41 U.S.C. 1303 and 48 CFR
chapter 1.
VerDate Sep<11>2014
15:56 Oct 24, 2023
Jkt 262001
225.7013
[Amended]
2. Amend section 225.7013 by
removing the introductory text and
paragraphs (a) and (b).
■ 3. Add sections 225.7013–0,
225.7013–1, and 225.7013–2 to read as
follows:
■
225.7013–0
Scope.
This section implements 10 U.S.C.
8679 and 10 U.S.C. 8680.
225.7013–1
Definitions.
As used in this section—
Corrective and preventive
maintenance or repair means—
(1) Maintenance or repair actions
performed as a result of a failure in
order to return or restore equipment to
acceptable performance levels; and
(2) Scheduled maintenance or repair
actions to prevent or discover functional
failures.
Facilities maintenance means the
effort required to—
(1) Provide housekeeping services
throughout the ship;
(2) Perform coating maintenance and
repair to exterior and interior surfaces
due to normal environmental
conditions; and
(3) Clean mechanical spaces, mission
zones, and topside spaces.
225.7013–2
Restrictions.
(a) Contract award (10 U.S.C. 8679).
Do not award a contract to construct in
a foreign shipyard—
(1) A vessel for any of the armed
forces; or
(2) A major component of the hull or
superstructure of a vessel for any of the
armed forces.
(b) Overhaul, repair, or maintenance
(10 U.S.C. 8680). (1) Do not overhaul,
repair, or maintain, in a shipyard
outside the United States or Guam, a
naval vessel (or any other vessel under
the jurisdiction of the Secretary of the
Navy) homeported in the United States
or Guam.
(2) This restriction on overhaul,
repair, or maintenance does not apply
to—
(i) Voyage repairs; or
(ii) Repairs necessary to correct
damage sustained due to hostile actions
or interventions.
(3) For a naval vessel classified as a
littoral combat ship and operating on
deployment—
(i) Corrective and preventive
maintenance or repair, whether
intermediate or depot level, and
facilities maintenance may be
performed if the work is performed by
U.S. Government personnel or U.S.
contractor personnel—
(A) In a foreign shipyard;
PO 00000
Frm 00027
Fmt 4700
Sfmt 4700
73241
(B) At a facility outside of a foreign
shipyard; or
(C) At any other facility convenient to
the vessel;
(ii) Foreign workers may be used to
perform corrective and preventive
maintenance or repair, only if the
Secretary of the Navy, without power of
delegation, determines that travel by
U.S. Government or contractor
personnel to perform the maintenance
or repair is not advisable for health or
safety reasons; and
(iii) Foreign contractors may perform
facilities maintenance only as approved
by the Secretary of Navy.
[FR Doc. 2023–23432 Filed 10–24–23; 8:45 am]
BILLING CODE 6001–FR–P
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations
System
48 CFR Part 252
[Docket DARS–2023–0038]
RIN 0750–AL98
Defense Federal Acquisition
Regulation Supplement: New
Designated Country—North Macedonia
(DFARS Case 2024–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 add North Macedonia as a
new designated country under the
World Trade Organization Government
Procurement Agreement.
DATES: Effective October 30, 2023.
FOR FURTHER INFORMATION CONTACT: Ms.
Kimberly Bass, 703–717–3446.
SUPPLEMENTARY INFORMATION:
SUMMARY:
I. Background
On June 7, 2023, the World Trade
Organization (WTO) Committee on
Government Procurement approved the
accession of North Macedonia to the
WTO Government Procurement
Agreement (GPA). This final rule
amends the DFARS to add North
Macedonia to the list of World Trade
Organization (WTO) Government
Procurement Agreement (GPA)
countries wherever it appears in the
DFARS, as part of the definition of
‘‘designated country’’.
The Trade Agreements Act (19 U.S.C.
2501 et seq.) provides the authority for
the President to waive the Buy
E:\FR\FM\25OCR1.SGM
25OCR1
]]>Agencies
[Federal Register Volume 88, Number 205 (Wednesday, October 25, 2023)]
[Rules and Regulations]
[Pages 73240-73241]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-23432]
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System
48 CFR Part 225
[Docket DARS-2023-0006]
RIN 0750-AL39
Defense Federal Acquisition Regulation Supplement: Restrictions
on Overhaul and Repair of Naval Vessels in Foreign Shipyards (DFARS
Case 2021-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 implement a section of the
National Defense Authorization Act for Fiscal Year 2021 that restricts
overhaul and repair of a naval vessel in a shipyard outside the United
States or Guam.
DATES: Effective October 30, 2023.
FOR FURTHER INFORMATION CONTACT: Kimberly Bass, telephone 703-717-3446.
SUPPLEMENTARY INFORMATION:
I. Background
DoD is issuing a final rule amending the DFARS to implement section
1025 of the National Defense Authorization Act (NDAA) for Fiscal Year
(FY) 2021 (Pub. L. 116-283), which amends 10 U.S.C. 8680(a) to restrict
the overhaul or repair of a naval vessel in a shipyard outside the
United States or Guam. The restriction does not apply to voyage repairs
or to repairs required for damage sustained due to hostile actions or
interventions. In addition, the restriction does not apply to a naval
vessel classified as a littoral combat ship operating on deployment for
corrective and preventive maintenance or repair and facilities
maintenance. The rule also establishes the criteria under which foreign
workers or foreign contractors may be used to perform corrective and
preventive maintenance or repair or facilities maintenance on a naval
vessel.
DoD published a proposed rule in the Federal Register at 88 FR
17360 on March 22, 2023, to revise the DFARS to implement section 1025
of the NDAA for FY 2021. One respondent submitted a public comment in
response to the proposed rule.
II. Discussion and Analysis
DoD reviewed the public comment in the development of the final
rule. A discussion of the comment is provided, as follows:
A. Summary of Significant Changes
No changes are made to the final rule as a result of public
comments.
B. Analysis of Public Comment
Comment: A respondent provided comments with overall support of the
rule and stated it would save money and reduce the need for supplies
and preventative maintenance on ships in foreign shipyards.
Response: DoD acknowledges the respondent's support for the rule.
C. Other Changes
Minor editorial changes are made in paragraph (b) of DFARS
225.7013-2 to comply with drafting conventions.
III. Applicability to Contracts at or Below the Simplified Acquisition
Threshold and for Commercial Products, Including Commercially Available
Off-the-Shelf 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 or prescriptions for their use.
IV. Expected Impact of the Rule
Currently, DFARS 225.7013 includes the restrictions on the
construction or repair of vessels in foreign shipyards. This rule adds
the exception for repairs necessary to correct damage sustained due to
hostile actions or interventions and for corrective and preventive
maintenance or repair and facilities maintenance on naval vessels
classified as littoral combat ships operating on deployment. Under
these exceptions, the repairs or maintenance described above may be
performed in a shipyard outside the United States or Guam in accordance
with 10 U.S.C. 8680(a). The rule also specifies the authorized use of
foreign workers under certain conditions when a determination is made
by the Secretary of the Navy, who cannot further delegate the authority
to make such a determination.
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, as amended.
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. 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.
VII. Regulatory Flexibility Act
A final regulatory flexibility analysis has been prepared
consistent with the Regulatory Flexibility Act, 5 U.S.C. 601, et seq.
and is summarized as follows:
DoD is issuing a final rule amending the DFARS to implement section
1025 of the National Defense Authorization Act (NDAA) for Fiscal Year
(FY) 2021 (Pub. L. 116-283). Section 1025 amends 10 U.S.C. 8680(a) to
restrict the overhaul or repair of a naval vessel in a shipyard outside
the United States or Guam, unless the repairs are: (1) voyage repairs
or repairs necessary to correct damage sustained due to hostile actions
or interventions; or (2) to a naval vessel classified as a littoral
combat ship operating on deployment for corrective and preventive
maintenance or repair and facilities maintenance. The final rule also
establishes that: (1) foreign workers may not be used to perform
corrective and preventive maintenance or repair on a naval vessel
unless the
[[Page 73241]]
Secretary of the Navy (without further delegation) makes a
determination; and (2) foreign contractors may not be used to perform
facilities maintenance unless approved by the Secretary of the Navy.
The objective of the rule is to implement the restrictions of section
1025 of the NDAA for FY 2021 on the overhaul or repair of a naval
vessel in a shipyard outside the United States or Guam, with exceptions
as described in this paragraph.
No public comments were received in response to the initial
regulatory flexibility analysis.
DoD reviewed data from the Federal Procurement Data System for
fiscal years 2020, 2021, and 2022 for contracts for the repair or
overhaul of naval vessels outside the United States or Guam that
exceeded the simplified acquisition threshold. DoD awarded a total of
383 contracts to an average of 76 unique small entities.
It is expected that this rule will continue to provide small
businesses the opportunity to participate in acquisitions for the
overhaul or repair of a naval vessel in a shipyard outside the United
States or Guam, since naval vessel overhaul restrictions currently
exist, and this rule provides exceptions that allow for U.S. contractor
personnel to perform certain repairs and maintenance in accordance with
10 U.S.C. 8680(a).
This rule does not include any new reporting, recordkeeping, or
other compliance requirements for small entities.
There are no known significant alternative approaches to the rule
that would meet the requirements of the statute.
VIII. 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 225
Government procurement.
Jennifer D. Johnson,
Editor/Publisher, Defense Acquisition Regulations System.
Therefore, 48 CFR part 225 is amended as follows:
PART 225--FOREIGN ACQUISITION
0
1. The authority citation for 48 CFR part 225 continues to read as
follows:
Authority: 41 U.S.C. 1303 and 48 CFR chapter 1.
225.7013 [Amended]
0
2. Amend section 225.7013 by removing the introductory text and
paragraphs (a) and (b).
0
3. Add sections 225.7013-0, 225.7013-1, and 225.7013-2 to read as
follows:
225.7013-0 Scope.
This section implements 10 U.S.C. 8679 and 10 U.S.C. 8680.
225.7013-1 Definitions.
As used in this section--
Corrective and preventive maintenance or repair means--
(1) Maintenance or repair actions performed as a result of a
failure in order to return or restore equipment to acceptable
performance levels; and
(2) Scheduled maintenance or repair actions to prevent or discover
functional failures.
Facilities maintenance means the effort required to--
(1) Provide housekeeping services throughout the ship;
(2) Perform coating maintenance and repair to exterior and interior
surfaces due to normal environmental conditions; and
(3) Clean mechanical spaces, mission zones, and topside spaces.
225.7013-2 Restrictions.
(a) Contract award (10 U.S.C. 8679). Do not award a contract to
construct in a foreign shipyard--
(1) A vessel for any of the armed forces; or
(2) A major component of the hull or superstructure of a vessel for
any of the armed forces.
(b) Overhaul, repair, or maintenance (10 U.S.C. 8680). (1) Do not
overhaul, repair, or maintain, in a shipyard outside the United States
or Guam, a naval vessel (or any other vessel under the jurisdiction of
the Secretary of the Navy) homeported in the United States or Guam.
(2) This restriction on overhaul, repair, or maintenance does not
apply to--
(i) Voyage repairs; or
(ii) Repairs necessary to correct damage sustained due to hostile
actions or interventions.
(3) For a naval vessel classified as a littoral combat ship and
operating on deployment--
(i) Corrective and preventive maintenance or repair, whether
intermediate or depot level, and facilities maintenance may be
performed if the work is performed by U.S. Government personnel or U.S.
contractor personnel--
(A) In a foreign shipyard;
(B) At a facility outside of a foreign shipyard; or
(C) At any other facility convenient to the vessel;
(ii) Foreign workers may be used to perform corrective and
preventive maintenance or repair, only if the Secretary of the Navy,
without power of delegation, determines that travel by U.S. Government
or contractor personnel to perform the maintenance or repair is not
advisable for health or safety reasons; and
(iii) Foreign contractors may perform facilities maintenance only
as approved by the Secretary of Navy.
[FR Doc. 2023-23432 Filed 10-24-23; 8:45 am]
BILLING CODE 6001-FR-P
