83 FR 30824 - Defense Federal Acquisition Regulation Supplement: Repeal of DFARS Clause “Pricing Adjustments” (DFARS Case 2018-D032)

DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System

Federal Register Volume 83, Issue 126 (June 29, 2018)

Page Range		30824-30825
FR Document		2018-14044

DoD is issuing a final rule amending the Defense Federal Acquisition Regulation Supplement (DFARS) to remove a clause that is duplicative of an existing Federal Acquisition Regulation (FAR) clause rendering the DFARS clause unnecessary.

Federal Register, Volume 83 Issue 126 (Friday, June 29, 2018)

[Federal Register Volume 83, Number 126 (Friday, June 29, 2018)]
[Rules and Regulations]
[Pages 30824-30825]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-14044]



[[Page 30823]]

Vol. 83

Friday,

No. 126

June 29, 2018

Part II





Department of Defense





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Defense Acquisition Regulations System





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48 CFR Parts 202, 208, 212, et al.





Federal Acquisition Regulations; Final Rules

Federal Register / Vol. 83 , No. 126 / Friday, June 29, 2018 / Rules 
and Regulations

[[Page 30824]]


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DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Parts 208, 212, 214, 215, 216, 225, and 252

[Docket DARS-2018-0033]
RIN 0750-AJ93


Defense Federal Acquisition Regulation Supplement: Repeal of 
DFARS Clause ``Pricing Adjustments'' (DFARS Case 2018-D032)

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 clause that is 
duplicative of an existing Federal Acquisition Regulation (FAR) clause 
rendering the DFARS clause unnecessary.

DATES: Effective June 29, 2018.

FOR FURTHER INFORMATION CONTACT: Ms. Carrie Moore, telephone 571-372-
6093.

SUPPLEMENTARY INFORMATION: 

I. Background

    DoD is amending the DFARS to remove the DFARS clause 252.215-7000, 
Pricing Adjustments, the clause prescription at DFARS 215.408, and the 
associated cross-references at DFARS 208.404, 212.301, 214.201, 
216.506, 225.870, and introductory text for various 252.215 clauses to 
adjust clause prescription references.
    The DFARS clause is included in solicitations and contracts that 
contain the FAR clause 52.215-11, Price Reduction for Defective 
Certified Cost or Pricing Data--Modifications, FAR 52.215-12, 
Subcontractor Certified Cost or Pricing Data, or FAR 52.215-13, 
Subcontractor Certified Cost or Pricing Data--Modifications. DFARS 
clause 252.215-7000 defines the term ``pricing adjustment'' as the 
aggregate increases and/or decreases in cost plus applicable profits. 
This term is adequately defined in the associated FAR clauses and this 
DFARS clause can be removed.
    The removal of this DFARS text 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 notification 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 clause 252.215-7000, Pricing Adjustments, 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 does not add any new solicitation provisions or contract 
clauses. This rule only removes obsolete DFARS clause 252.215-7010, 
Pricing Adjustments. 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 Order (E.O.) 12866, Regulatory Planning and Review; and 
E.O. 13563, Improving Regulation and Regulatory Review, 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. The Office of Management and Budget, Office of Information 
and Regulatory Affairs (OIRA), has determined that this is not a 
significant regulatory action as defined under section 3(f) of E.O. 
12866 and, therefore, was not subject to review under section 6(b). 
This rule is not a major rule as defined at 5 U.S.C. 804(2).

IV. Executive Order 13771

    This rule is not an E.O. 13771, Reducing Regulation 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 
clause 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 V. 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 208, 212, 214, 215, 216, 225, and 
252

    Government procurement.

Amy G. Williams,
Deputy, Defense Acquisition Regulations System.

    Therefore, 48 CFR parts 208, 212, 214, 215, 216, 225, and 252 are 
amended as follows:

0
1. The authority citation for parts 208, 212, 214, 215, 216, 225, and 
252 continues to read as follows:

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

[[Page 30825]]

PART 208--REQUIRED SOURCES OF SUPPLIES AND SERVICES


208.404   [Amended]

0
2. Amend section 208.404, in paragraph (a)(iv), by removing 
``215.408(3)'' and ``215.408(4)'' and adding ``215.371-6'' and 
``215.408(3)'' in their place, respectively.

PART 212--ACQUISITION OF COMMERCIAL ITEMS


212.301   [Amended]

0
3. Amend section 212.301 by--
0
a. In paragraph (f)(vi)(A), removing ``215.408(3)(i)'' and adding 
``215.408(2)(i)'' in its place;
0
b. In paragraph (f)(vi)(B), removing ``215.408(3)(ii)'' and adding 
``215.408(2)(ii)'' in its place;
0
c. In paragraph (f)(vi)(D), removing ``215.408(4)'' and adding 
``215.408(3)'' in its place;
0
d. In paragraph (f)(vi)(E), removing ``215.408(6)(i)'' and adding 
``215.408(5)(i)'' in its place;
0
e. In paragraph (f)(vi)(E)(1), removing ``215.408(6)(i)(A)'' and adding 
``215.408(5)(i)(A)'' in its place; and
0
f. In paragraph (f)(vi)(E)(2), removing ``215.408(6)(i)(B)'' and adding 
``215.408(5)(i)(B)'' in its place.

PART 214--SEALED BIDDING


214.201-6   [Amended]

0
4. Amend section 214.201-6 by removing ``215.408(3) and (4)'' and 
adding ``215.371-6 and 215.408(3)'' in its place.

PART 215--CONTRACTING BY NEGOTIATION


215.408   [Amended]

0
5. Amend section 215.408 by--
0
a. Removing paragraph (1);
0
b. Redesignating paragraphs (2) through (7) as paragraphs (1) through 
(6);
0
c. In newly redesignated paragraph (2)(i)(A)(2), removing ``paragraph 
(3)(i)(A)(1)'' and adding ``paragraph (2)(i)(A)(1) of this section'' in 
its place; and
0
d. In newly redesignated paragraphs (2)(ii)(A)(2) and (2)(ii)(A)(3)(i), 
removing ``paragraph (3)(ii)(A) (1)'' and adding ``paragraph 
(2)(ii)(A)(1) of this section'' in its place.

PART 216--TYPES OF CONTRACTS


216.506   [Amended]

0
6. Amend section 216.506, in paragraph (S-70), by removing ``215.408(3) 
and (4)'' and adding ``215.371-6 and 215.408(3)'' in its place.

PART 225--FOREIGN ACQUISITION


225.870-4  [Amended]

0
7. Amend section 225.870-4, in paragraph (c)(3), by removing 
``215.408(3)(i) and (ii)'' and adding ``215.408(2)(i) and (ii)'' in its 
place.

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES


252.215-7000  [Removed and Reserved]

0
8. Remove and reserve 252.215-7000.


252.215-7002  [Amended]

0
9. Amend section 252.215-7002, in the introductory text, by removing 
``215.408(2)'' and adding ``215.408(1)'' in its place.


252.215-7003  [Amended]

0
10. Amend section 252.215-7003, in the introductory text, by removing 
``215.408(3)(i)'' and adding ``215.408(2)(i)'' in its place.


252.215-7004  [Amended]

0
11. Amend section 252.215-7004, in the introductory text, by removing 
``215.408(3)(ii)'' and adding ``215.408(2)(ii)'' in its place.


252.215-7008  [Amended]

0
12. Amend section 252.215-7008, in the introductory text, by removing 
``215.408(4)'' and adding ``215.408(3)'' in its place.


252.215-7009  [Amended]

0
13. Amend section 252.215-7009 by, in the Basic clause introductory 
text, removing ``215.408(5)'' and adding ``215.408(4)'' in its place.


252.215-7010  [Amended]

0
14. Amend section 252.215-7010 by--
0
a. In the Basic clause introductory text, removing ``215.408(6)(i) and 
(6)(i)(A)'' and adding ``215.408(5)(i) and (5)(i)(A)'' in its place; 
and
0
b. In the Alternate I clause introductory text, removing 
``215.408(6)(i) and (6)(i)(B)'' and adding ``215.408(5)(i) and 
(5)(i)(B)'' in its place.


252.215-7011  [Amended]

0
15. Amend section 252.215-7011, in the introductory text, by removing 
``215.408(6)(ii)'' and adding ``215.408(5)(ii)'' in its place.


252.215-7012  [Amended]

0
16. Amend section 252.215-7012, in the introductory text, by removing 
``215.408(6)(iii)'' and adding ``215.408(5)(iii)'' in its place.


252.215-7013  [Amended]

0
17. Amend section 252.215-7013, in the introductory text, by removing 
``215.408(7)'' and adding ``215.408(6)'' in its place.

[FR Doc. 2018-14044 Filed 6-28-18; 8:45 am]
 BILLING CODE 5001-06-P

30824 Federal Register / Vol. 83, No. 126 / Friday, June 29, 2018 / Rules and Regulations

DEPARTMENT OF DEFENSE DoD established a Regulatory Reform V. Publication of This Final Rule for
Task Force to review and validate DoD Public Comment Is Not Required by
Defense Acquisition Regulations regulations, including the DFARS. A Statute
System public notification of the establishment
of the DFARS Subgroup to the DoD The statute that applies to the
48 CFR Parts 208, 212, 214, 215, 216, Regulatory Reform Task Force, for the publication of the Federal Acquisition
225, and 252 purpose of reviewing DFARS provisions Regulation (FAR) is the Office of Federal
[Docket DARS–2018–0033] and clauses, was published in the Procurement Policy statute (codified at
Federal Register at 82 FR 35741 on title 41 of the United States Code.
RIN 0750–AJ93 August 1, 2017, and requested public Specifically, 41 U.S.C 1707(a)(1)
input. No public comments were requires that a procurement policy,
Defense Federal Acquisition received on this provision. regulation, procedure or form (including
Regulation Supplement: Repeal of Subsequently, the DoD Task Force an amendment or modification thereof)
DFARS Clause ‘‘Pricing Adjustments’’ reviewed the requirements of DFARS
(DFARS Case 2018–D032) must be published for public comment
clause 252.215–7000, Pricing if it relates to the expenditure of
AGENCY: Defense Acquisition Adjustments, and determined that the appropriated funds, and has either a
Regulations System, Department of DFARS coverage was redundant and significant effect beyond the internal
Defense (DoD). recommended removal. operating procedures of the agency
ACTION: Final rule. II. Applicability to Contracts at or issuing the policy, regulation,
Below the Simplified Acquisition procedure, or form, or has a significant
SUMMARY: DoD is issuing a final rule
Threshold and for Commercial Items, cost or administrative impact on
amending the Defense Federal
Acquisition Regulation Supplement Including Commercially Available Off- contractors or offerors. This final rule is
(DFARS) to remove a clause that is the-Shelf Items not required to be published for public
duplicative of an existing Federal comment, because DoD is not issuing a
This rule does not add any new
Acquisition Regulation (FAR) clause new regulation; rather, this rule merely
solicitation provisions or contract
rendering the DFARS clause clauses. This rule only removes obsolete removes an obsolete clause from the
unnecessary. DFARS clause 252.215–7010, Pricing DFARS.
DATES: Effective June 29, 2018. Adjustments. Therefore, the rule does VI. Regulatory Flexibility Act
FOR FURTHER INFORMATION CONTACT: Ms. not impose any new requirements on
Carrie Moore, telephone 571–372–6093. contracts at or below the simplified Because a notice of proposed
acquisition threshold and for rulemaking and an opportunity for
SUPPLEMENTARY INFORMATION:
commercial items, including public comment are not required to be
I. Background commercially available off-the-shelf given for this rule under 41 U.S.C.
DoD is amending the DFARS to items. 1707(a)(1) (see section V. of this
remove the DFARS clause 252.215– III. Executive Orders 12866 and 13563 preamble), the analytical requirements
7000, Pricing Adjustments, the clause of the Regulatory Flexibility Act (5
prescription at DFARS 215.408, and the Executive Order (E.O.) 12866, U.S.C. 601 et seq.) are not applicable.
associated cross-references at DFARS Regulatory Planning and Review; and Accordingly, no regulatory flexibility
208.404, 212.301, 214.201, 216.506, E.O. 13563, Improving Regulation and analysis is required and none has been
225.870, and introductory text for Regulatory Review, direct agencies to prepared.
various 252.215 clauses to adjust clause assess all costs and benefits of available
prescription references. regulatory alternatives and, if regulation VII. Paperwork Reduction Act
The DFARS clause is included in is necessary, to select regulatory
The rule does not contain any
solicitations and contracts that contain approaches that maximize net benefits
(including potential economic, information collection requirements that
the FAR clause 52.215–11, Price
environmental, public health and safety require the approval of the Office of
Reduction for Defective Certified Cost or
effects, distributive impacts, and Management and Budget under the
Pricing Data—Modifications, FAR
52.215–12, Subcontractor Certified Cost equity). E.O. 13563 emphasizes the Paperwork Reduction Act (44 U.S.C.
or Pricing Data, or FAR 52.215–13, importance of quantifying both costs chapter 35).
Subcontractor Certified Cost or Pricing and benefits, of reducing costs, of List of Subjects in 48 CFR Parts 208,
Data—Modifications. DFARS clause harmonizing rules, and of promoting 212, 214, 215, 216, 225, and 252
252.215–7000 defines the term ‘‘pricing flexibility. The Office of Management
adjustment’’ as the aggregate increases and Budget, Office of Information and Government procurement.
and/or decreases in cost plus applicable Regulatory Affairs (OIRA), has
determined that this is not a significant Amy G. Williams,
profits. This term is adequately defined
in the associated FAR clauses and this regulatory action as defined under Deputy, Defense Acquisition Regulations
DFARS clause can be removed. section 3(f) of E.O. 12866 and, therefore, System.
The removal of this DFARS text was not subject to review under section
Therefore, 48 CFR parts 208, 212, 214,
supports a recommendation from the 6(b). This rule is not a major rule as
215, 216, 225, and 252 are amended as
DoD Regulatory Reform Task Force. On defined at 5 U.S.C. 804(2).
sradovich on DSK3GMQ082PROD with RULES2

follows:
February 24, 2017, the President signed IV. Executive Order 13771
Executive Order (E.O.) 13777, ■ 1. The authority citation for parts 208,
‘‘Enforcing the Regulatory Reform This rule is not an E.O. 13771, 212, 214, 215, 216, 225, and 252
Agenda,’’ which established a Federal Reducing Regulation and Controlling continues to read as follows:
policy ‘‘to alleviate unnecessary Regulatory Costs, regulatory action,
Authority: 41 U.S.C. 1303 and 48 CFR
regulatory burdens’’ on the American because this rule is not significant under
chapter 1.
people. In accordance with E.O. 13777, E.O. 12866.

VerDate Sep<11>2014 18:09 Jun 28, 2018 Jkt 244001 PO 00000 Frm 00002 Fmt 4701 Sfmt 4700 E:\FR\FM\29JNR2.SGM 29JNR2

Document Created: 2018-06-29 01:13:43
Document Modified: 2018-06-29 01:13:43

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 June 29, 2018.
Contact		Ms. Carrie Moore, telephone 571-372- 6093.
FR Citation		83 FR 30824
RIN Number		0750-AJ93
CFR Citation		48 CFR 208 48 CFR 212 48 CFR 214 48 CFR 215 48 CFR 216 48 CFR 225 48 CFR 252

83 FR 30824 - Defense Federal Acquisition Regulation Supplement: Repeal of DFARS Clause “Pricing Adjustments” (DFARS Case 2018-D032)

DEPARTMENT OF DEFENSEDefense Acquisition Regulations System

Federal Register Volume 83, Issue 126 (June 29, 2018)

DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System