83 FR 24886 - Defense Federal Acquisition Regulation Supplement: Repeal of DFARS Provision “Alternative Line Item Structure” (DFARS Case 2017-D045)
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System Federal Register Volume 83, Issue 104 (May 30, 2018)
Defense Acquisition Regulations System
Federal Register Volume 83, Issue 104 (May 30, 2018)
| Page Range | 24886-24887 | |
| FR Document | 2018-11339 |
[Federal Register Volume 83, Number 104 (Wednesday, May 30, 2018)] [Rules and Regulations] [Pages 24886-24887] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-11339] [[Page 24885]] Vol. 83 Wednesday, No. 104 May 30, 2018 Part III Department of Defense ----------------------------------------------------------------------- 48 CFR Chapter 204, 212, et al. Federal Acquisition Regulations; Final Rules and Proposed Rule Federal Register / Vol. 83 , No. 104 / Wednesday, May 30, 2018 / Rules and Regulations [[Page 24886]] ----------------------------------------------------------------------- DEPARTMENT OF DEFENSE Defense Acquisition Regulations System 48 CFR Parts 204, 212, and 252 [Docket DARS-2017-0016] RIN 0750-AJ55 Defense Federal Acquisition Regulation Supplement: Repeal of DFARS Provision ``Alternative Line Item Structure'' (DFARS Case 2017- D045) 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 remove a provision that provided guidelines to offerors when proposing an alternative line item structure in response to a solicitation. DATES: Effective May 30, 2018. FOR FURTHER INFORMATION CONTACT: Ms. Carrie Moore, telephone 571-372- 6093. SUPPLEMENTARY INFORMATION: I. Background DoD is amending the DFARS to remove DFARS provision 252.204-7011, Alternative Line Item Structure, the associated prescription at DFARS 204.7109(b), and a cross-reference at DFARS 212.301(f)(ii)(C). DFARS provision 252.204-7011 advises offerors that they may propose an alternative to the contract line item structure included in the solicitation. The purpose of this provision is to ensure that the resulting contract structure is economically and administratively advantageous to both the Government and the contractor. This provision is prescribed for use in all solicitations that use Federal Acquisition Regulation (FAR) part 12 procedures for the acquisition of commercial items or for the initial provisioning of spares. However, this DFARS provision is duplicative of the information provided in FAR provision 52.204-22, Alternative Line Item Proposal, which is included in all solicitations. When the DFARS provision was implemented, no standardized guidance on line item structure existed for the Government or contractors. A final rule was published in the Federal Register on January 13, 2017, at 82 FR 4709 to implement a uniform line item structure in the FAR for all Federal Government. That final rule established FAR provision 52.204-22, Alternate Line Item Proposal, which covers the information included in DFARS 252.204-7011. As a result, the DFARS provision is now redundant and can be removed. The removal of this DFARS provision supports a recommendation from the DoD Regulatory Reform Task Force. On February 24, 2017, the President signed Executive Order (E.O.) 13777, ``Enforcing the Regulatory Reform Agenda,'' which established a Federal policy ``to alleviate unnecessary regulatory burdens'' on the American people. In accordance with E.O. 13777, DoD established a Regulatory Reform Task Force to review and validate DoD regulations, including the DFARS. A public notice of the establishment of the DFARS Subgroup to the DoD Regulatory Reform Task Force, for the purpose of reviewing DFARS provisions and clauses, was published in the Federal Register at 82 FR 35741 on August 1, 2017, and requested public input. No public comments were received on this provision. Subsequently, the DoD Task Force reviewed the requirements of DFARS 252.204-7011, Alternate Line Item Structure, and determined that the DFARS coverage was redundant and recommended removal. II. Applicability to Contracts at or Below the Simplified Acquisition Threshold and for Commercial Items, Including Commercially Available Off-the-Shelf Items This rule only removes obsolete DFARS provision 252.204-7011, Alternate A, System for Award Management. Therefore, the rule does not impose any new requirements on contracts at or below the simplified acquisition threshold and for commercial items, including commercially available off-the-shelf items. 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. This rule is not a major rule under 5 U.S.C. 804. IV. Executive Order 13771 This rule is not an E.O. 13771, Reducing and Controlling Regulatory Costs, regulatory action, because this rule is not significant under E.O. 12866. V. Publication of This Final Rule for Public Comment Is Not Required by Statute The statute that applies to the publication of the Federal Acquisition Regulation (FAR) is the Office of Federal Procurement Policy statute (codified at title 41 of the United States Code). Specifically, 41 U.S.C. 1707(a)(1) 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 DoD is not issuing a new regulation; rather, this rule merely removes an obsolete requirement from the DFARS. VI. Regulatory Flexibility Act Because a notice of proposed rulemaking and an opportunity for public comment are not required to be given for this rule under 41 U.S.C. 1707(a)(1) (see section III. of this preamble), the analytical requirements of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) are not applicable. Accordingly, no regulatory flexibility analysis is required and none has been prepared. 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 Parts 204, 212, and 252 Government procurement. Amy G. Williams, Deputy, Defense Acquisition Regulations System. Therefore, 48 CFR parts 204, 212, and 252 are amended as follows: 0 1. The authority citation for parts 204, 212, and 252 continues to read as follows: Authority: 41 U.S.C. 1303 and 48 CFR chapter 1. [[Page 24887]] PART 204--ADMINISTRATIVE MATTERS 0 2. Revise section 204.7109 to read as follows: 204.7109 Contract clause. Use the clause at 252.204-7006, Billing Instructions, in solicitations and contracts if Section G includes-- (a) Any of the standard payment instructions at PGI 204.7108)(d)(1) through (6); or (b) Other payment instructions, in accordance with PGI 204.7108(d)(12), that require contractor identification of the contract line item(s) on the payment request. PART 212--ACQUISITION OF COMMERCIAL ITEMS 212.301 [Amended] 0 3. Amend section 212.301 by-- 0 a. Removing paragraph (f)(ii)(C); and 0 b. Redesignating paragraphs (f)(ii)(D) through (G) as paragraphs (f)(ii)(C) through (F), respectively. PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES 252.204-7011 [Removed and Reserved] 0 4. Remove and reserve section 252.204-7011. [FR Doc. 2018-11339 Filed 5-29-18; 8:45 am] BILLING CODE 5001-06-P
![24886 Federal Register / Vol. 83, No. 104 / Wednesday, May 30, 2018 / Rules and Regulations
DEPARTMENT OF DEFENSE covers the information included in IV. Executive Order 13771
DFARS 252.204–7011. As a result, the This rule is not an E.O. 13771,
Defense Acquisition Regulations DFARS provision is now redundant and Reducing and Controlling Regulatory
System can be removed.
Costs, regulatory action, because this
The removal of this DFARS provision
rule is not significant under E.O. 12866.
48 CFR Parts 204, 212, and 252 supports a recommendation from the
DoD Regulatory Reform Task Force. On V. Publication of This Final Rule for
[Docket DARS–2017–0016]
February 24, 2017, the President signed Public Comment Is Not Required by
RIN 0750–AJ55 Executive Order (E.O.) 13777, Statute
‘‘Enforcing the Regulatory Reform
Defense Federal Acquisition The statute that applies to the
Agenda,’’ which established a Federal
Regulation Supplement: Repeal of publication of the Federal Acquisition
policy ‘‘to alleviate unnecessary
DFARS Provision ‘‘Alternative Line Regulation (FAR) is the Office of Federal
regulatory burdens’’ on the American
Item Structure’’ (DFARS Case 2017– people. In accordance with E.O. 13777, Procurement Policy statute (codified at
D045) DoD established a Regulatory Reform title 41 of the United States Code).
Task Force to review and validate DoD Specifically, 41 U.S.C. 1707(a)(1)
AGENCY: Defense Acquisition requires that a procurement policy,
Regulations System, Department of regulations, including the DFARS. A
public notice of the establishment of the regulation, procedure or form (including
Defense (DoD). an amendment or modification thereof)
DFARS Subgroup to the DoD Regulatory
ACTION: Final rule. must be published for public comment
Reform Task Force, for the purpose of
reviewing DFARS provisions and if it relates to the expenditure of
SUMMARY: DoD is issuing a final rule appropriated funds, and has either a
amending the Defense Federal clauses, was published in the Federal
Register at 82 FR 35741 on August 1, significant effect beyond the internal
Acquisition Regulation Supplement operating procedures of the agency
(DFARS) to remove a provision that 2017, and requested public input. No
public comments were received on this issuing the policy, regulation,
provided guidelines to offerors when procedure, or form, or has a significant
proposing an alternative line item provision. Subsequently, the DoD Task
Force reviewed the requirements of cost or administrative impact on
structure in response to a solicitation. contractors or offerors. This final rule is
DATES: Effective May 30, 2018.
DFARS 252.204–7011, Alternate Line
Item Structure, and determined that the not required to be published for public
FOR FURTHER INFORMATION CONTACT: Ms. comment, because DoD is not issuing a
DFARS coverage was redundant and
Carrie Moore, telephone 571–372–6093. recommended removal. new regulation; rather, this rule merely
SUPPLEMENTARY INFORMATION: removes an obsolete requirement from
II. Applicability to Contracts at or the DFARS.
I. Background Below the Simplified Acquisition
DoD is amending the DFARS to Threshold and for Commercial Items, VI. Regulatory Flexibility Act
remove DFARS provision 252.204–7011, Including Commercially Available Off- Because a notice of proposed
Alternative Line Item Structure, the the-Shelf Items rulemaking and an opportunity for
associated prescription at DFARS This rule only removes obsolete public comment are not required to be
204.7109(b), and a cross-reference at DFARS provision 252.204–7011, given for this rule under 41 U.S.C.
DFARS 212.301(f)(ii)(C). DFARS Alternate A, System for Award 1707(a)(1) (see section III. of this
provision 252.204–7011 advises offerors Management. Therefore, the rule does preamble), the analytical requirements
that they may propose an alternative to not impose any new requirements on of the Regulatory Flexibility Act (5
the contract line item structure included contracts at or below the simplified U.S.C. 601 et seq.) are not applicable.
in the solicitation. The purpose of this acquisition threshold and for Accordingly, no regulatory flexibility
provision is to ensure that the resulting commercial items, including analysis is required and none has been
contract structure is economically and commercially available off-the-shelf prepared.
administratively advantageous to both items. VII. Paperwork Reduction Act
the Government and the contractor. This
provision is prescribed for use in all III. Executive Orders 12866 and 13563 The rule does not contain any
solicitations that use Federal Executive Orders (E.O.s) 12866 and information collection requirements that
Acquisition Regulation (FAR) part 12 13563 direct agencies to assess all costs require the approval of the Office of
procedures for the acquisition of and benefits of available regulatory Management and Budget under the
commercial items or for the initial alternatives and, if regulation is Paperwork Reduction Act (44 U.S.C.
provisioning of spares. necessary, to select regulatory chapter 35).
However, this DFARS provision is approaches that maximize net benefits
List of Subjects in 48 CFR Parts 204,
duplicative of the information provided (including potential economic,
212, and 252
in FAR provision 52.204–22, Alternative environmental, public health and safety
Line Item Proposal, which is included effects, distributive impacts, and Government procurement.
in all solicitations. When the DFARS equity). E.O. 13563 emphasizes the
Amy G. Williams,
provision was implemented, no importance of quantifying both costs
Deputy, Defense Acquisition Regulations
standardized guidance on line item and benefits, of reducing costs, of
System.
structure existed for the Government or harmonizing rules, and of promoting
sradovich on DSK3GMQ082PROD with RULES2
contractors. A final rule was published flexibility. This is not a significant Therefore, 48 CFR parts 204, 212, and
in the Federal Register on January 13, regulatory action and, therefore, was not 252 are amended as follows:
2017, at 82 FR 4709 to implement a subject to review under section 6(b) of ■ 1. The authority citation for parts 204,
uniform line item structure in the FAR E.O. 12866, Regulatory Planning and 212, and 252 continues to read as
for all Federal Government. That final Review, dated September 30, 1993. This follows:
rule established FAR provision 52.204– rule is not a major rule under 5 U.S.C. Authority: 41 U.S.C. 1303 and 48 CFR
22, Alternate Line Item Proposal, which 804. chapter 1.
VerDate Sep<11>2014 17:57 May 29, 2018 Jkt 244001 PO 00000 Frm 00002 Fmt 4701 Sfmt 4700 E:\FR\FM\30MYR2.SGM 30MYR2](https://thefederalregister.org/doc/83_FR_24990/page/1.svg)
![Federal Register / Vol. 83, No. 104 / Wednesday, May 30, 2018 / Rules and Regulations 24887
PART 204—ADMINISTRATIVE SUPPLEMENTARY INFORMATION: reviewing DFARS provisions and
MATTERS clauses, was published in the Federal
I. Background
Register at 82 FR 35741 on August 1,
■ 2. Revise section 204.7109 to read as DoD is amending the DFARS to 2017, and requested public input. Two
follows: remove the DFARS provision 252.222– public comments were received on this
7007, Representation Regarding provision. Both comments
204.7109 Contract clause. Combating Trafficking in Persons, the recommended elimination of the
Use the clause at 252.204–7006, associated provision prescription at provision, as it is unnecessary.
Billing Instructions, in solicitations and DFARS 222.1771, and cross references Subsequently, the DoD Task Force
contracts if Section G includes— to the provision at DFARS 204.1202 and reviewed the requirements of DFARS
(a) Any of the standard payment 212.301. The DFARS provision notified provision 252.222–7007, Representation
instructions at PGI 204.7108)(d)(1) offerors that, by submitting their offer to Regarding Combating Trafficking in
through (6); or the Government, they certify that they
(b) Other payment instructions, in Persons, and determined that the
will not engage in trafficking in persons DFARS coverage was unnecessary and
accordance with PGI 204.7108(d)(12), in performance of the contract, will
that require contractor identification of recommended removal.
have policies in place to protect the
the contract line item(s) on the payment rights of its employees, and have II. Applicability to Contracts at or
request. notified employees and subcontractors Below the Simplified Acquisition
of their responsibility to report Threshold and for Commercial Items,
PART 212—ACQUISITION OF Including Commercially Available Off-
COMMERCIAL ITEMS trafficking in persons violations and
their protection from reprisal for the-Shelf Items
212.301 [Amended] reporting any such violation. This rule does not add any new
■ 3. Amend section 212.301 by— However, the United States provisions or clauses or impact existing
■ a. Removing paragraph (f)(ii)(C); and Government has laws that prohibit provisions or clauses. The rule merely
■ b. Redesignating paragraphs (f)(ii)(D) trafficking in persons at 22 U.S.C. removes DFARS provision 252.222–
through (G) as paragraphs (f)(ii)(C) chapter 78 and Executive Order 13627, 7007, Representation Regarding
through (F), respectively. Strengthening Protections Against Combating Trafficking in Persons that is
Trafficking in Persons in Federal redundant to FAR clause, 52.222–50,
PART 252—SOLICITATION Contracts. In addition, FAR clause, Combating Trafficking in Persons.
PROVISIONS AND CONTRACT 52.222–50, Combating Trafficking in
Persons, provides comprehensive III. Publication of This Final Rule for
CLAUSES
guidance to contractors to ensure their Public Comment is not Required by
252.204–7011 [Removed and Reserved] compliance with the Government’s laws Statute
■ 4. Remove and reserve section and policies on trafficking in persons The statute that applies to the
252.204–7011. when performing under a Federal publication of the Federal Acquisition
[FR Doc. 2018–11339 Filed 5–29–18; 8:45 am] contract. Specifically, the FAR clause Regulation (FAR) is the Office of Federal
BILLING CODE 5001–06–P prohibits contractors from engaging in Procurement Policy statute (codified at
trafficking in persons during the title 41 of the United States Code).
performance of the contract, requires Specifically, 41 U.S.C. 1707(a)(1)
DEPARTMENT OF DEFENSE contractors to notify its employees and requires that a procurement policy,
subcontractors of the Government’s regulation, procedure or form (including
Defense Acquisition Regulations policy on trafficking in persons, and an amendment or modification thereof)
System requires the contractor to have a must be published for public comment
compliance plan in place to ensure if it relates to the expenditure of
48 CFR Parts 204, 212, 222, and 252 agreement with Federal law and policy. appropriated funds, and has either a
[Docket DARS–2018–0016] The purpose of the DFARS provision significant effect beyond the internal
was to simply affirm that the contractor operating procedures of the agency
RIN 0750–AJ67 will comply with Federal trafficking in issuing the policy, regulation,
Defense Federal Acquisition persons laws and policies. The procedure, or form, or has a significant
Regulation Supplement: Repeal of provision contained no guidance or cost or administrative impact on
DFARS Provision ‘‘Representation policy unique to DoD. As such, this contractors or offerors. This final rule is
Regarding Combating Trafficking in DFARS provision is unnecessary and not required to be published for public
Persons’’ (DFARS Case 2018–D003) can be removed. comment, because DoD is not issuing a
The removal of this DFARS text new regulation; rather, this rule merely
AGENCY: Defense Acquisition supports a recommendation from the removes an obsolete provision from the
Regulations System, Department of DoD Regulatory Reform Task Force. On DFARS.
Defense (DoD). February 24, 2017, the President signed
Executive Order (E.O.) 13777, IV. Executive Orders 12866 and 13563
ACTION: Final rule.
‘‘Enforcing the Regulatory Reform Executive Order (E.O.) 12866,
SUMMARY: DoD is issuing a final rule Agenda,’’ which established a Federal Regulatory Planning and Review; and
amending the Defense Federal policy ‘‘to alleviate unnecessary E.O. 13563, Improving Regulation and
Acquisition Regulation Supplement regulatory burdens’’ on the American Regulatory Review, direct agencies to
sradovich on DSK3GMQ082PROD with RULES2
(DFARS) to remove a provision that is people. In accordance with E.O. 13777, assess all costs and benefits of available
no longer necessary and duplicative of DoD established a Regulatory Reform regulatory alternatives and, if regulation
an existing Federal Acquisition Task Force to review and validate DoD is necessary, to select regulatory
Regulation (FAR) clause. regulations, including the DFARS. A approaches that maximize net benefits
DATES: Effective May 30, 2018. public notice of the establishment of the (including potential economic,
FOR FURTHER INFORMATION CONTACT: Ms. DFARS Subgroup to the DoD Regulatory environmental, public health and safety
Carrie Moore, telephone 571–372–6093. Reform Task Force, for the purpose of effects, distributive impacts, and
VerDate Sep<11>2014 17:57 May 29, 2018 Jkt 244001 PO 00000 Frm 00003 Fmt 4701 Sfmt 4700 E:\FR\FM\30MYR2.SGM 30MYR2](https://thefederalregister.org/doc/83_FR_24990/page/2.svg)
Document Created: 2018-05-30 01:01:39
Document Modified: 2018-05-30 01:01:39
| 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 May 30, 2018. | |
| Contact | Ms. Carrie Moore, telephone 571-372- 6093. | |
| FR Citation | 83 FR 24886 | |
| RIN Number | 0750-AJ55 | |
| CFR Citation | 48
CFR
204 48 CFR 212 48 CFR 252 |
2024 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR