81 FR 78011 - Defense Federal Acquisition Regulation Supplement: Contiguous United States (DFARS Case 2016-D005)

DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System

Federal Register Volume 81, Issue 214 (November 4, 2016)

Page Range		78011-78012
FR Document		2016-26367

DoD is issuing a final rule to amend the Defense Federal Acquisition Regulation Supplement (DFARS) to remove the acronym for contiguous United States.

Federal Register, Volume 81 Issue 214 (Friday, November 4, 2016)

[Federal Register Volume 81, Number 214 (Friday, November 4, 2016)]
[Rules and Regulations]
[Pages 78011-78012]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-26367]


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DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Part 247

[Docket DARS-2016-0036]
RIN 0750-AJ09


Defense Federal Acquisition Regulation Supplement: Contiguous 
United States (DFARS Case 2016-D005)

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

[[Page 78012]]


ACTION: Final rule.

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

SUMMARY: DoD is issuing a final rule to amend the Defense Federal 
Acquisition Regulation Supplement (DFARS) to remove the acronym for 
contiguous United States.

DATES: Effective November 4, 2016.

FOR FURTHER INFORMATION CONTACT: Ms. Julie Hammond, telephone 571-372-
6174.

SUPPLEMENTARY INFORMATION: 

I. Background

    DoD is amending the DFARS to remove the acronym for contiguous 
United States (CONUS). While the term ``contiguous United States 
(CONUS)'' is defined in Federal Acquisition Regulation (FAR) 2.101, the 
acronym is sometimes misinterpreted as ``continental United States.'' 
Spelling out the acronym in the DFARS will eliminate any confusion.

II. Discussion and Analysis

    DFARS 274.301 is amended to update the reference to transportation 
guidance in DFARS Procedures, Guidance, and Information and, as a 
result, remove the acronym CONUS.
    DFARS 274.301-71 is amended to spell out ``the contiguous United 
States'' in lieu of CONUS.

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 case does not add any new provisions or clauses or impact any 
existing provisions or clauses.

IV. 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 entitled ``Publication of Proposed Regulations.'' Paragraph (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 is just 
removing and spelling out the acronym for ``contiguous United States''.

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. This rule is not a major rule 
under 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

    The 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 247

    Government procurement.

Jennifer L. Hawes,
Editor, Defense Acquisition Regulations System.
    Therefore, 48 CFR part 247 is amended as follows:

PART 247--TRANSPORTATION

0
1. The authority citation for 48 CFR part 247 continues to read as 
follows:

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


247.301   [Amended]

0
2. In section 247.301, remove the phrase ``that require shipments to 
destinations outside CONUS''.


247.301-71   [Amended]

0
3. In section 247.301-71, remove ``outside CONUS'' and add ``outside 
the contiguous United States'' in its place.

[FR Doc. 2016-26367 Filed 11-3-16; 8:45 am]
 BILLING CODE 5001-06-P

Federal Register / Vol. 81, No. 214 / Friday, November 4, 2016 / Rules and Regulations 78011

(including potential economic, Development Technical Descriptions,’’ a prerequisite for the subsequent
environmental, public health and safety in accordance with the Paperwork determination of allowability, the
effects, distributive impacts, and Reduction Act (44 U.S.C. chapter 35); contractor shall—
equity). E.O. 13563 emphasizes the however, the impact of this rule is (i) Engage in a technical interchange
importance of quantifying both costs negligible. Currently, contractors are with a technical or operational DoD
and benefits, of reducing costs, of required to (1) report IR&D projects to Government employee before IR&D
harmonizing rules, and of promoting DTIC using the DTIC’s online IR&D costs are generated so that contractor
flexibility. This is not a significant database and (2) update these inputs at plans and goals for IR&D projects benefit
regulatory action and, therefore, was not least annually and when the project is from the awareness of and feedback by
subject to review under section 6(b) of completed. This rule merely changes the a DoD Government employee who is
E.O. 12866, Regulatory Planning and web address for submission of this informed of related ongoing and future
Review, dated September 30, 1993. This report and requires major contractors to potential interest opportunities. If the
rule is not a major rule under 5 U.S.C. include in the report the name of the contractor does not have a point of
804. DoD Government employee with which contact for the technical interchange,
a technical interchange was held and the contractor may contact the Office of
V. Regulatory Flexibility Act
the date of such interchange. the Assistant Secretary of Defense for
A final regulatory flexibility analysis Research and Engineering (OASD R&E).
has been prepared consistent with the List of Subjects in 48 CFR Parts 231 and
Contact information for OASD R&E can
Regulatory Flexibility Act, 5 U.S.C. 601, 242
be found at http://www.acq.osd.mil/rd/
et seq., and is summarized as follows: Government procurement. contacts/; and
The objective of this final rule is to (1) (ii) Use the online input form for IR&D
Jennifer L. Hawes,
ensure that both independent research projects reported to DTIC to document
and development (IR&D) performers and Editor, Defense Acquisition Regulations
System. the technical interchange, which
their potential DoD customers have includes the name of the DoD
sufficient awareness of each other’s Therefore, 48 CFR parts 231 and 242 Government employee and the date the
efforts and (2) provide industry with are amended as follows: technical interchange occurred.
feedback on the relevance of proposed ■ 1. The authority citation for 48 CFR (iv) Contractors not meeting the
and completed IR&D work. parts 231 and 242 continues to read as threshold of a major contractor are
There were no significant issues follows: encouraged to use the DTIC online input
raised by the public in response to the Authority: 41 U.S.C. 1303 and 48 CFR form to report IR&D projects to provide
initial regulatory flexibility analysis. chapter 1. DoD with visibility into the technical
DoD does not expect this final rule to content of the contractors’ IR&D
have a significant economic impact on PART 231—CONTRACT COST activities.
a substantial number of small entities, PRINCIPLES AND PROCEDURES
because DFARS 231.205–18(c)(iii) * * * * *
applies only to major contractors, which ■ 2. Amend section 231.205–18 by—
■ a. Revising paragraph (c)(iii)(C); PART 242—CONTRACT
are defined as those whose covered ADMINISTRATION AND AUDIT
segments allocated a total of more than ■ b. Redesignating paragraphs (c)(iv)
and (v) as paragraphs (c)(v) and (vi), SERVICES
$11 million in IR&D and bid and
proposal costs to covered contracts respectively; and 242.771–3 [Amended]
■ c. Adding a new paragraph (c)(iv).
during the preceding fiscal year. The 3. In section 242.771–3, amend
The revision and addition read as ■
final rule requires major contractors to paragraph (d) introductory text by
follows:
communicate proposed new IR&D removing ‘‘Director, Defense Research
efforts to DoD personnel in a technical 231.205–18 Independent research and and Engineering (OUSD(AT&L)DDR&E)’’
interchange prior to the initiation of development and bid and proposal costs.
and adding ‘‘Office of the Assistant
such investments. * * * * * Secretary of Defense for Research and
This rule impacts existing reporting (c) * * * Engineering (OASD R&E)’’ in its place.
and recordkeeping requirements in a (iii) * * *
very minor way. Only one element is (C) For annual IR&D costs to be [FR Doc. 2016–26366 Filed 11–3–16; 8:45 am]
being added to the existing reporting allowable— BILLING CODE 5001–06–P
requirement to require major contractors (1) The IR&D projects generating the
to include the name of the DoD costs must be reported to the Defense
employee with which a technical Technical Information Center (DTIC) DEPARTMENT OF DEFENSE
interchange was held and the date of using the DTIC’s online input form and
Defense Acquisition Regulations
such interchange. instructions at http://
System
There are no known significant www.defenseinnovation
alternatives to the rule. The rule impacts marketplace.mil/;
(2) The inputs must be updated at 48 CFR Part 247
major contractors and, as such, will
have minimal impact on small entities. least annually and when the project is [Docket DARS–2016–0036]
completed;
VI. Paperwork Reduction Act (3) Copies of the input and updates
RIN 0750–AJ09
asabaliauskas on DSK3SPTVN1PROD with RULES

The final rule affects the information must be made available for review by Defense Federal Acquisition
collection requirements at Defense the cognizant administrative contracting Regulation Supplement: Contiguous
Federal Acquisition Regulation officer (ACO) and the cognizant Defense United States (DFARS Case 2016–
Supplement (DFARS) 231.205–18, Contract Audit Agency auditor to D005)
currently approved under the Office of support the allowability of the costs;
Management and Budget (OMB) Control and AGENCY: Defense Acquisition
Number 0704–0483, entitled (4) For IR&D projects initiated in the Regulations System, Department of
‘‘Independent Research and contractor’s fiscal year 2017 and later, as Defense (DoD).

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78012 Federal Register / Vol. 81, No. 214 / Friday, November 4, 2016 / Rules and Regulations

ACTION: Final rule. V. Executive Orders 12866 and 13563 DEPARTMENT OF DEFENSE
SUMMARY: DoD is issuing a final rule to Executive Orders (E.O.s) 12866 and Defense Acquisition Regulations
amend the Defense Federal Acquisition 13563 direct agencies to assess all costs System
Regulation Supplement (DFARS) to and benefits of available regulatory
remove the acronym for contiguous alternatives and, if regulation is 48 CFR Parts 212 and 252
United States. necessary, to select regulatory
approaches that maximize net benefits [Docket DARS–2016–0015]
DATES: Effective November 4, 2016.
(including potential economic, RIN 0750–AI93
FOR FURTHER INFORMATION CONTACT: Ms. environmental, public health and safety
Julie Hammond, telephone 571–372– effects, distributive impacts, and Defense Federal Acquisition
6174. equity). E.O. 13563 emphasizes the Regulation Supplement: Pilot Program
SUPPLEMENTARY INFORMATION: importance of quantifying both costs on Acquisition of Military Purpose
and benefits, of reducing costs, of Nondevelopmental Items (DFARS Case
I. Background harmonizing rules, and of promoting 2016–D014)
DoD is amending the DFARS to flexibility. This is not a significant
AGENCY: Defense Acquisition
remove the acronym for contiguous regulatory action and, therefore, was not
Regulations System, Department of
United States (CONUS). While the term subject to review under section 6(b) of
Defense (DoD).
‘‘contiguous United States (CONUS)’’ is E.O. 12866, Regulatory Planning and
ACTION: Final rule.
defined in Federal Acquisition Review, dated September 30, 1993. This
Regulation (FAR) 2.101, the acronym is rule is not a major rule under 5 U.S.C. SUMMARY: DoD is adopting as final, with
sometimes misinterpreted as 804. changes, an interim rule amending the
‘‘continental United States.’’ Spelling VI. Regulatory Flexibility Act Defense Federal Acquisition Regulation
out the acronym in the DFARS will Supplement (DFARS) to implement a
eliminate any confusion. The Regulatory Flexibility Act does section of the National Defense
not apply to this rule because this final Authorization Act for Fiscal Year 2016
II. Discussion and Analysis rule does not constitute a significant that changes the criteria for the pilot
DFARS 274.301 is amended to update DFARS revision within the meaning of program for acquisition of military
the reference to transportation guidance FAR 1.501–1, and 41 U.S.C. 1707 does purpose nondevelopmental items.
in DFARS Procedures, Guidance, and not require publication for public DATES: Effective November 4, 2016.
Information and, as a result, remove the comment.
FOR FURTHER INFORMATION CONTACT: Ms.
acronym CONUS. VII. Paperwork Reduction Act Carrie Moore, telephone 571–372–6093.
DFARS 274.301–71 is amended to SUPPLEMENTARY INFORMATION:
spell out ‘‘the contiguous United States’’ The rule does not contain any
in lieu of CONUS. information collection requirements that I. Background
require the approval of the Office of DoD published an interim rule in the
III. Applicability to Contracts at or Management and Budget under the
Below the Simplified Acquisition Federal Register at 80 FR 42557 on June
Paperwork Reduction Act (44 U.S.C. 30, 2016, to implement section 892 of
Threshold (SAT) and for Commercial chapter 35).
Items, Including Commercially the National Defense Authorization
Available Off-the-Shelf (COTS) Items List of Subjects in 48 CFR Part 247 Action (NDAA) for Fiscal Year (FY)
2016 (Pub. L. 114–92). Section 892
This case does not add any new Government procurement. removes the requirements under the
provisions or clauses or impact any pilot program for the use of competitive
existing provisions or clauses. Jennifer L. Hawes,
procedures and for awards to be made
Editor, Defense Acquisition Regulations
IV. Publication of This Final Rule for System. to nontraditional defense contractors.
Public Comment Is Not Required by Section 892 also increases the threshold
Therefore, 48 CFR part 247 is for use of the pilot program to contracts
Statute
amended as follows: up to $100 million. Two respondents
The statute that applies to the submitted public comments in response
publication of the FAR is 41 U.S.C. 1707 PART 247—TRANSPORTATION to the interim rule.
entitled ‘‘Publication of Proposed
Regulations.’’ Paragraph (a)(1) of the ■ 1. The authority citation for 48 CFR II. Discussion and Analysis
statute requires that a procurement part 247 continues to read as follows: DoD reviewed the public comments in
policy, regulation, procedure, or form Authority: 41 U.S.C. 1303 and 48 CFR the development of the final rule. A
(including an amendment or chapter 1. discussion of the comments received
modification thereof) must be published and the changes made to the rule as a
for public comment if it relates to the 247.301 [Amended]
result of those comments is provided, as
expenditure of appropriated funds, and ■ 2. In section 247.301, remove the follows:
has either a significant effect beyond the phrase ‘‘that require shipments to
internal operating procedures of the A. Summary of Significant Changes
destinations outside CONUS’’. From the Interim Rule
asabaliauskas on DSK3SPTVN1PROD with RULES

agency issuing the policy, regulation,
procedure, or form, or has a significant 247.301–71 [Amended] One change is made in the final rule
cost or administrative impact on as a result of a public comment. The
contractors or offerors. This final rule is ■ 3. In section 247.301–71, remove prescription at DFARS 212.7103 for
not required to be published for public ‘‘outside CONUS’’ and add ‘‘outside the DFARS provision 252.212–7002, Pilot
comment, because it is just removing contiguous United States’’ in its place. Program for Acquisition of Military-
and spelling out the acronym for [FR Doc. 2016–26367 Filed 11–3–16; 8:45 am] Purpose Nondevelopmental Items, is
‘‘contiguous United States’’. BILLING CODE 5001–06–P revised to clarify its use in solicitations

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Document Created: 2018-02-14 08:26:10
Document Modified: 2018-02-14 08:26:10

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Rules and Regulations
Action		Final rule.
Dates		Effective November 4, 2016.
Contact		Ms. Julie Hammond, telephone 571-372- 6174.
FR Citation		81 FR 78011
RIN Number		0750-AJ09

81 FR 78011 - Defense Federal Acquisition Regulation Supplement: Contiguous United States (DFARS Case 2016-D005)

DEPARTMENT OF DEFENSEDefense Acquisition Regulations System

Federal Register Volume 81, Issue 214 (November 4, 2016)

DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System