83_FR_42991 83 FR 42826 - Defense Federal Acquisition Regulation Supplement: Modification of DFARS Clause “Transportation of Supplies by Sea” (DFARS Case 2018-D028)

83 FR 42826 - Defense Federal Acquisition Regulation Supplement: Modification of DFARS Clause “Transportation of Supplies by Sea” (DFARS Case 2018-D028)

DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System

Federal Register Volume 83, Issue 165 (August 24, 2018)

Page Range42826-42828
FR Document2018-18246

DoD is proposing to amend the Defense Federal Acquisition Regulation Supplement (DFARS) to modify the text of an existing DFARS clause to include the text of another DFARS clause, in order to streamline instructions to contractors regarding notifications of transportation of supplies by sea.

Federal Register, Volume 83 Issue 165 (Friday, August 24, 2018) 
[Federal Register Volume 83, Number 165 (Friday, August 24, 2018)]
[Proposed Rules]
[Pages 42826-42828]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-18246]


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DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Parts 212, 247, and 252

[Docket DARS-2018-0040]
RIN 0750-AJ94


Defense Federal Acquisition Regulation Supplement: Modification 
of DFARS Clause ``Transportation of Supplies by Sea'' (DFARS Case 2018-
D028)

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

ACTION: Proposed rule.

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

SUMMARY: DoD is proposing to amend the Defense Federal Acquisition 
Regulation Supplement (DFARS) to modify the text of an existing DFARS 
clause to include the text of another DFARS clause, in order to 
streamline instructions to contractors regarding notifications of 
transportation of supplies by sea.

DATES: Comments on the proposed rule should be submitted in writing to 
the address shown below on or before October 23, 2018, to be considered 
in the formation of a final rule.

ADDRESSES: Submit comments identified by DFARS Case 2018-D028, using 
any of the following methods:
    [cir] Federal eRulemaking Portal: http://www.regulations.gov. 
Search for ``DFARS Case 2018-D028''. Select ``Submit a Comment Now'' 
and follow the instructions provided to submit a comment. Please 
include ``DFARS Case 2018-D028'' on any attached document. O Email: 
[email protected]. Include DFARS Case 2018-D028 in the subject line of 
the message.
    [cir] Fax: 571-372-6094.
    [cir] Mail: Defense Acquisition Regulations System, Attn: Carrie 
Moore, OUSD(A&S)DPC/DARS, Room 3B941, 3060 Defense Pentagon, 
Washington, DC 20301-3060.
    Comments received generally will be posted without change to http://www.regulations.gov, including any personal information provided. To 
confirm receipt of your comment(s), please check www.regulations.gov, 
approximately two to three days after submission to verify posting 
(except allow 30 days for posting of comments submitted by mail).

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

SUPPLEMENTARY INFORMATION: 

I. Background

    This rule proposes to modify DFARS clause 252.247-7023, 
Transportation of Supplies By Sea, to include the instructions 
currently specified in DFARS clause 252.247-7024, Notification of 
Supplies By Sea. Combining these clauses will result in DFARS clause 
252.247-7024 being removed.

II. Discussion and Analysis

    DFARS provision 252.247-7022, Representation of Extent of 
Transportation By Sea, is included in solicitations and requires an 
offeror to represent with its offer whether it anticipates that 
supplies will or will not be transported by sea in the performance of 
the contract.
    DFARS clause 252.247-7023 is included in all contracts, except for 
those that directly purchase ocean transportation services, and 
provides contractors with terms and conditions that apply when 
transporting supplies by sea under the contract.
    DFARS clause 252.247-7024, Notification of Transportation of

[[Page 42827]]

Supplies By Sea, is included in contracts when the contractor indicated 
in DFARS provision 252.247-7022 that it did not anticipate transporting 
supplies by sea. The clause requires the contractor to notify the 
Government in the event that, during performance of the contract, the 
contractor learns that supplies will be transported by sea, and 
requires the contractor to comply with the terms and conditions in 
DFARS clause 252.247-7023.
    Since DFARS clause 252.247-7023 is included in all contracts, and 
DFARS clause 252.247-7024 is associated with the requirements of 
252.247-7023, the text of the two clauses can be combined to help 
minimize the number of clauses contained in the contract, while still 
maintaining the intent of both clauses.
    The modification 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. The DoD Task 
Force reviewed the requirements of DFARS clause 252.247-7023 and 
252.247-7024 and determined that the clauses could be combined.
    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. Two respondents 
submitted a public comment on these clauses summarized as follows:
    Comment: Both respondents recommended DoD remove these clauses, as 
they are based on the requirements of the Cargo Preference Act of 1904 
(10 U.S.C. 2631), which was written at a time before many modern forms 
of cargo transportation were invented and overly burdens the DoD supply 
chain to use US-flag ships. The respondents also suggested that DoD 
follow the less burdensome Cargo Preference Act of 1954 (46 U.S.C. 
1241(b)).
    Response: DoD must comply with the requirements of 10 U.S.C. 2631. 
Currently, 10 U.S.C. 2631 requires 100 percent of all items for or 
owned by DoD that require transportation by sea be carried exclusively 
on U.S. flag vessels. This cargo policy helps retain and encourage a 
privately owned and operated U.S.-flag merchant marine, which benefits 
the U.S. in terms of trade and in times of emergency. It is not in the 
Government's best interests to rescind 10 U.S.C. 2631. In the event 
that a U.S.-flag vessel is not available for timely shipment or the 
freight charges are excessive or unreasonable, the clause permits the 
contractor to submit a request to use a foreign-flag vessel to the 
contracting officer. For this reason, DoD does not concur that the DoD 
supply chain is necessarily overburdened by this Act.

III. 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 create any new provisions or clauses. This rule 
merely consolidates existing instructions regarding notifications of 
transportation of supplies by sea in a single DFARS clause.

IV. Executive Orders 12866 and 13563

    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).

V. Executive Order 13771

    This proposed rule is not expected to be an E.O. 13771, Reducing 
Regulation and Controlling Regulatory Costs, regulatory action, because 
this proposed rule is not significant under E.O. 12866.

VI. Regulatory Flexibility Act

    DoD does not expect this proposed rule to have a significant 
economic impact on a substantial number of small entities within the 
meaning of the Regulatory Flexibility Act, 5 U.S.C. 601 et seq., 
because the rule is not creating any new requirements or changing any 
existing requirements for contractors. However, an initial regulatory 
flexibility analysis has been performed and is summarized as follows:
    The Department of Defense (DoD) is proposing to modify DFARS clause 
252.247-7023, Transportation of Supplies By Sea, to include the 
instructions currently specified in DFARS clause 252.247-7024, 
Notification of Supplies By Sea. Combining these clauses will result in 
DFARS clause 252.247-7024 being removed.
    The objective of this proposed rule is to streamline the 
instructions to contractors pertaining to the transportation of 
supplies by sea. The combination of these DFARS clauses supports a 
recommendation from the DoD Regulatory Reform Task Force under 
Executive Order 13771, Reducing Regulation and Controlling Regulatory 
Costs.
    Based on data available in the Federal Procurement Data System for 
fiscal year 2016, DoD awarded approximately 83,000 contract actions 
that included DFARS clause 252.247-7023 to 22,000 unique entities, of 
which approximately 39,000 awards (47 percent) were made to 15,000 
unique small businesses entities (68 percent).
    This proposed rule does not include any new reporting, 
recordkeeping, or other compliance requirements for small businesses.
    This rule does not duplicate, overlap, or conflict with any other 
Federal rules.
    There are no known significant alternative approaches to the 
proposed rule that would meet the proposed objectives.
    DoD invites comments from small business concerns and other 
interested parties on the expected impact of this rule on small 
entities. DoD will also consider comments from small entities 
concerning the existing regulations in subparts affected by this rule 
in accordance with 5 U.S.C. 610. Interested parties must submit such 
comments separately and should cite 5 U.S.C. 610 (DFARS Case 2018-D028) 
in correspondence.

VI. Paperwork Reduction Act

    The Paperwork Reduction Act (44 U.S.C. chapter 35) does apply; 
however, these changes to the DFARS do not impose additional 
information collection requirements to the paperwork burden previously 
approved under OMB Control Number 0704-0245, titled: Defense Federal 
Acquisition Regulation Supplement (DFARS) Part 247, Transportation and 
Related Clauses.

[[Page 42828]]

List of Subjects in 48 CFR Parts 212, 247, and 252

    Government procurement.

Jennifer Lee Hawes,
Regulatory Control Officer, Defense Acquisition Regulations System.

    Therefore, 48 CFR parts 212, 247, and 252 are proposed to be 
amended as follows:

0
1. The authority citation for 48 CFR parts 212, 247, and 252 continues 
to read as follows:

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

PART 212--ACQUISITION OF COMMERCIAL ITEMS


212.301  [Amended]

0
2. Amend section 212.301 by:
0
a. Removing paragraph (f)(xix)(D);
0
b. Redesignating paragraphs (f)(xix)(E) through (H) as paragraphs 
(f)(xix)(D) through (G), respectively;
0
c. In the newly redesignated paragraph (f)(xix)(D), removing 
``247.574(d)'' and adding ``247.574(c)'' in its place;
0
d. In the newly redesignated paragraph (f)(xix)(E), removing 
``247.574(e)'' and adding ``247.574(d)'' in its place;
0
e. In the newly redesignated paragraph (f)(xix)(F), removing 
``247.574(f)'' and adding ``247.574(e)'' in its place; and
0
f. In the newly redesignated paragraph (f)(xix)(G), removing ``U.S'' 
and adding ``U.S.'' in its place.

PART 247--TRANSPORTATION


247.574  [Amended]

0
3. Amend section 247.574 by:
0
a. Removing paragraph (c); and
0
b. Redesignating paragraphs (d) through (f) as paragraphs (c) through 
(e), respectively.

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

0
4. Amend section 252.247-7023 by:
0
a. In the clause heading, removing the date ``(APR 2014)'' and adding 
``(DATE)'' in its place;
0
b. Redesignating paragraph (h) as paragraph (i);
0
c. Adding a new paragraph (h); and
0
d. In the newly redesignated paragraphs (i)(1) and (2), removing 
``paragraph (h)'' and adding ``paragraph (i)'' in both places;
0
e. In Alternate I:
0
i. In the clause heading, removing the date of ``(APR 2014)'' and 
adding ``(DATE)'' in its place;
0
ii. Redesignating paragraph (h) as paragraph (i);
0
iii. Adding a new paragraph (h); and
0
iv. In the newly redesignated paragraphs (i)(1) and (2), removing 
``paragraph (h)'' and adding ``paragraph (i)'' in both places;
0
f. In Alternate II--
0
i. In the clause heading, removing the date of ``(APR 2014)'' and 
adding ``(DATE)'' in its place;
0
ii. Redesignating paragraph (h) as paragraph (i);
0
iii. Adding a new paragraph (h); and
0
iv. In the newly redesignated paragraphs (i)(1) and (2), removing 
``paragraph (h)'' and adding ``paragraph (i)'' in both places.
    The additions read as follows:


252.247-7023  Transportation of Supplies by Sea.

* * * * *
    (h) If the Contractor has indicated by the response to the 
solicitation provision, Representation of Extent of Transportation by 
Sea, that it did not anticipate transporting by sea any supplies; 
however, after the award of this contract, the Contractor learns that 
supplies will be transported by sea, the Contractor--
    (1) Shall notify the Contracting Officer of that fact; and
    (2) Hereby agrees to comply with all the terms and conditions of 
this clause.
* * * * *
    Alternate I. * * *
* * * * *
    (h) If the Contractor has indicated by the response to the 
solicitation provision, Representation of Extent of Transportation by 
Sea, that it did not anticipate transporting by sea any supplies; 
however, after the award of this contract, the Contractor learns that 
supplies will be transported by sea, the Contractor--
    (1) Shall notify the Contracting Officer of that fact; and
    (2) Hereby agrees to comply with all the terms and conditions of 
this clause.
* * * * *
    Alternate II. * * *
* * * * *
    (h) If the Contractor has indicated by the response to the 
solicitation provision, Representation of Extent of Transportation by 
Sea, that it did not anticipate transporting by sea any supplies, but 
the contractor learns after the award of the contract that supplies 
will be transported by sea, the Contractor shall notify the Contracting 
Officer of that fact.
* * * * *


252.247-7024  [Removed and Reserved]

0
4. Remove and reserve section 252.247-7024.


252.247-7025  [Amended]

0
5. Amend section 252.247-7025, in the introductory text, by removing 
``247.574(d)'' and adding ``247.574(c)'' in its place.


252.247-7026  [Amended]

0
6. Amend section 252.247-7026, in the introductory text, by removing 
``247.574(e)'' and adding ``247.574(d)'' in its place.


252.247-7027  [Amended]

0
7. Amend section 252.247-7027, in the introductory text, by removing 
``247.574(f)'' and adding ``247.574(e)'' in its place.

[FR Doc. 2018-18246 Filed 8-23-18; 8:45 am]
 BILLING CODE 5001-06-P

42826 Federal Register / Vol. 83, No. 165 / Friday, August 24, 2018 / Proposed Rules (d) * * * performance of the contract is a notifications of transportation of (1) No photovoltaic devices will be domestic photovoltaic device; supplies by sea. utilized in performance of the contract, (ii) The offeror certifies that each DATES: Comments on the proposed rule or such photovoltaic devices have an photovoltaic device to be utilized in should be submitted in writing to the estimated value that does not exceed the performance of the contract is a Free address shown below on or before micro-purchase threshold. Trade Agreement country photovoltaic October 23, 2018, to be considered in (2) If more than the micro-purchase device (other than a Bahrainian, the formation of a final rule. threshold but less than $25,000— Moroccan, Panamanian, or Peruvian ADDRESSES: Submit comments * * * * * photovoltaic device) or a qualifying identified by DFARS Case 2018–D028, (3) If $25,000 or more but less than country photovoltaic device [Offeror to using any of the following methods: $80,317— specify country of origin lllll]; or Æ Federal eRulemaking Portal: (i) The offeror certifies that each (iii) The offered foreign photovoltaic http://www.regulations.gov. Search for photovoltaic device to be utilized in devices (other than those from countries ‘‘DFARS Case 2018–D028’’. Select performance of the contract is a listed in paragraph (d)(5)(ii) of this ‘‘Submit a Comment Now’’ and follow domestic photovoltaic device; provision) are the product of the instructions provided to submit a (ii) The offeror certifies that each lllll. [Offeror to specify country comment. Please include ‘‘DFARS Case photovoltaic device to be utilized in of origin, if known, and provide 2018–D028’’ on any attached document. performance of the contract is a documentation that the cost of a O Email: osd.dfars@mail.mil. Include Canadian photovoltaic device or a domestic photovoltaic device would be DFARS Case 2018–D028 in the subject qualifying country photovoltaic device unreasonable in comparison to the cost line of the message. [Offeror to specify country of origin of the proposed foreign photovoltaic Æ Fax: 571–372–6094. lllll]; or device, i.e. that the price of the foreign Æ Mail: Defense Acquisition (iii) The foreign (other than Canadian photovoltaic device plus 50 percent is Regulations System, Attn: Carrie Moore, or qualifying country) photovoltaic less than the price of a comparable OUSD(A&S)DPC/DARS, Room 3B941, devices to be utilized in performance of domestic photovoltaic device.] 3060 Defense Pentagon, Washington, DC the contract are the product of (6) If $180,000 or more, the Offeror 20301–3060. lllll. [Offeror to specify country certifies that each photovoltaic device to Comments received generally will be of origin, if known, and provide be used in performance of the contract posted without change to http:// documentation that the cost of a is— www.regulations.gov, including any domestic photovoltaic device would be (i) A U.S.-made photovoltaic device; personal information provided. To unreasonable in comparison to the cost or confirm receipt of your comment(s), of the proposed foreign photovoltaic (ii) A designated country photovoltaic please check www.regulations.gov, device, i.e. that the price of the foreign device or a qualifying country approximately two to three days after photovoltaic device plus 50 percent is photovoltaic device. [Offeror to specify submission to verify posting (except less than the price of a comparable country of origin lllll.] allow 30 days for posting of comments domestic photovoltaic device.] submitted by mail). (4) If $80,317 or more but less than (End of provision) FOR FURTHER INFORMATION CONTACT: Ms. $100,000— [FR Doc. 2018–18240 Filed 8–23–18; 8:45 am] Carrie Moore, telephone 571–372–6093. (i) The offeror certifies that each BILLING CODE 5001–06–P SUPPLEMENTARY INFORMATION: photovoltaic device to be utilized in performance of the contract is a I. Background domestic photovoltaic device; DEPARTMENT OF DEFENSE This rule proposes to modify DFARS (ii) The offeror certifies that each clause 252.247–7023, Transportation of photovoltaic device to be utilized in Defense Acquisition Regulations Supplies By Sea, to include the performance of the contract is a Free System instructions currently specified in Trade Agreement country photovoltaic DFARS clause 252.247–7024, device (other than a Bahrainian, Korean, 48 CFR Parts 212, 247, and 252 Notification of Supplies By Sea. Moroccan, Panamanian, or Peruvian Combining these clauses will result in photovoltaic device) or a qualifying [Docket DARS–2018–0040] DFARS clause 252.247–7024 being country photovoltaic device [Offeror to RIN 0750–AJ94 removed. specify country of origin lllll]; or (iii) The offered foreign photovoltaic II. Discussion and Analysis Defense Federal Acquisition devices (other than those from countries Regulation Supplement: Modification DFARS provision 252.247–7022, listed in paragraph (d)(4)(ii) of this of DFARS Clause ‘‘Transportation of Representation of Extent of provision) are the product of Supplies by Sea’’ (DFARS Case 2018– Transportation By Sea, is included in lllll. [Offeror to specify country D028) solicitations and requires an offeror to of origin, if known, and provide represent with its offer whether it documentation that the cost of a AGENCY: Defense Acquisition anticipates that supplies will or will not domestic photovoltaic device would be Regulations System, Department of be transported by sea in the unreasonable in comparison to the cost Defense (DoD). performance of the contract. of the proposed foreign photovoltaic DFARS clause 252.247–7023 is sradovich on DSK3GMQ082PROD with PROPOSALS ACTION: Proposed rule. device, i.e. that the price of the foreign included in all contracts, except for photovoltaic device plus 50 percent is SUMMARY: DoD is proposing to amend those that directly purchase ocean less than the price of a comparable the Defense Federal Acquisition transportation services, and provides domestic photovoltaic device.] Regulation Supplement (DFARS) to contractors with terms and conditions (5) If $100,000 or more but less than modify the text of an existing DFARS that apply when transporting supplies $180,000— clause to include the text of another by sea under the contract. (i) The offeror certifies that each DFARS clause, in order to streamline DFARS clause 252.247–7024, photovoltaic device to be utilized in instructions to contractors regarding Notification of Transportation of VerDate Sep<11>2014 19:08 Aug 23, 2018 Jkt 244001 PO 00000 Frm 00022 Fmt 4702 Sfmt 4702 E:\FR\FM\24AUP1.SGM 24AUP1

Federal Register / Vol. 83, No. 165 / Friday, August 24, 2018 / Proposed Rules 42827 Supplies By Sea, is included in which benefits the U.S. in terms of trade analysis has been performed and is contracts when the contractor indicated and in times of emergency. It is not in summarized as follows: in DFARS provision 252.247–7022 that the Government’s best interests to The Department of Defense (DoD) is it did not anticipate transporting rescind 10 U.S.C. 2631. In the event that proposing to modify DFARS clause supplies by sea. The clause requires the a U.S.-flag vessel is not available for 252.247–7023, Transportation of contractor to notify the Government in timely shipment or the freight charges Supplies By Sea, to include the the event that, during performance of are excessive or unreasonable, the instructions currently specified in the contract, the contractor learns that clause permits the contractor to submit DFARS clause 252.247–7024, supplies will be transported by sea, and a request to use a foreign-flag vessel to Notification of Supplies By Sea. requires the contractor to comply with the contracting officer. For this reason, Combining these clauses will result in the terms and conditions in DFARS DoD does not concur that the DoD DFARS clause 252.247–7024 being clause 252.247–7023. supply chain is necessarily removed. Since DFARS clause 252.247–7023 is overburdened by this Act. included in all contracts, and DFARS The objective of this proposed rule is clause 252.247–7024 is associated with III. Applicability to Contracts at or to streamline the instructions to the requirements of 252.247–7023, the Below the Simplified Acquisition contractors pertaining to the text of the two clauses can be combined Threshold and for Commercial Items, transportation of supplies by sea. The to help minimize the number of clauses including Commercially Available Off- combination of these DFARS clauses contained in the contract, while still the-Shelf Items supports a recommendation from the maintaining the intent of both clauses. This rule does not create any new DoD Regulatory Reform Task Force The modification of this DFARS text provisions or clauses. This rule merely under Executive Order 13771, Reducing supports a recommendation from the consolidates existing instructions Regulation and Controlling Regulatory DoD Regulatory Reform Task Force. On regarding notifications of transportation Costs. February 24, 2017, the President signed of supplies by sea in a single DFARS Based on data available in the Federal Executive Order (E.O.) 13777, Enforcing clause. Procurement Data System for fiscal year the Regulatory Reform Agenda, which 2016, DoD awarded approximately established a Federal policy ‘‘to IV. Executive Orders 12866 and 13563 83,000 contract actions that included alleviate unnecessary regulatory E.O. 12866, Regulatory Planning and DFARS clause 252.247–7023 to 22,000 burdens’’ on the American people. In Review, and E.O. 13563, Improving unique entities, of which approximately accordance with E.O. 13777, DoD Regulation and Regulatory Review, 39,000 awards (47 percent) were made established a Regulatory Reform Task direct agencies to assess all costs and to 15,000 unique small businesses Force to review and validate DoD benefits of available regulatory entities (68 percent). regulations, including the DFARS. The alternatives and, if regulation is DoD Task Force reviewed the necessary, to select regulatory This proposed rule does not include requirements of DFARS clause 252.247– approaches that maximize net benefits any new reporting, recordkeeping, or 7023 and 252.247–7024 and determined (including potential economic, other compliance requirements for small that the clauses could be combined. environmental, public health and safety businesses. A public notice of the establishment effects, distributive impacts, and This rule does not duplicate, overlap, of the DFARS Subgroup to the DoD equity). E.O. 13563 emphasizes the or conflict with any other Federal rules. Regulatory Reform Task Force, for the importance of quantifying both costs There are no known significant purpose of reviewing DFARS provisions and benefits, of reducing costs, of alternative approaches to the proposed and clauses, was published in the harmonizing rules, and of promoting rule that would meet the proposed Federal Register at 82 FR 35741 on flexibility. The Office of Management objectives. August 1, 2017, and requested public and Budget, Office of Information and input. Two respondents submitted a DoD invites comments from small Regulatory Affairs (OIRA), has business concerns and other interested public comment on these clauses determined that this is not a significant summarized as follows: parties on the expected impact of this regulatory action as defined under rule on small entities. DoD will also Comment: Both respondents section 3(f) of E.O. 12866 and, therefore, recommended DoD remove these consider comments from small entities was not subject to review under section concerning the existing regulations in clauses, as they are based on the 6(b). This rule is not a major rule as requirements of the Cargo Preference subparts affected by this rule in defined at 5 U.S.C. 804(2). accordance with 5 U.S.C. 610. Interested Act of 1904 (10 U.S.C. 2631), which was written at a time before many modern V. Executive Order 13771 parties must submit such comments forms of cargo transportation were This proposed rule is not expected to separately and should cite 5 U.S.C. 610 invented and overly burdens the DoD be an E.O. 13771, Reducing Regulation (DFARS Case 2018–D028) in supply chain to use US-flag ships. The and Controlling Regulatory Costs, correspondence. respondents also suggested that DoD regulatory action, because this proposed VI. Paperwork Reduction Act follow the less burdensome Cargo rule is not significant under E.O. 12866. Preference Act of 1954 (46 U.S.C. The Paperwork Reduction Act (44 1241(b)). VI. Regulatory Flexibility Act U.S.C. chapter 35) does apply; however, Response: DoD must comply with the DoD does not expect this proposed these changes to the DFARS do not sradovich on DSK3GMQ082PROD with PROPOSALS requirements of 10 U.S.C. 2631. rule to have a significant economic impose additional information Currently, 10 U.S.C. 2631 requires 100 impact on a substantial number of small collection requirements to the percent of all items for or owned by DoD entities within the meaning of the paperwork burden previously approved that require transportation by sea be Regulatory Flexibility Act, 5 U.S.C. 601 under OMB Control Number 0704–0245, carried exclusively on U.S. flag vessels. et seq., because the rule is not creating titled: Defense Federal Acquisition This cargo policy helps retain and any new requirements or changing any Regulation Supplement (DFARS) Part encourage a privately owned and existing requirements for contractors. 247, Transportation and Related operated U.S.-flag merchant marine, However, an initial regulatory flexibility Clauses. VerDate Sep<11>2014 19:08 Aug 23, 2018 Jkt 244001 PO 00000 Frm 00023 Fmt 4702 Sfmt 4702 E:\FR\FM\24AUP1.SGM 24AUP1

42828 Federal Register / Vol. 83, No. 165 / Friday, August 24, 2018 / Proposed Rules List of Subjects in 48 CFR Parts 212, ■ ii. Redesignating paragraph (h) as 252.247–7024 [Removed and Reserved] 247, and 252 paragraph (i); ■ 4. Remove and reserve section Government procurement. ■ iii. Adding a new paragraph (h); and 252.247–7024. ■ iv. In the newly redesignated Jennifer Lee Hawes, 252.247–7025 [Amended] paragraphs (i)(1) and (2), removing Regulatory Control Officer, Defense ‘‘paragraph (h)’’ and adding ‘‘paragraph ■ 5. Amend section 252.247–7025, in Acquisition Regulations System. (i)’’ in both places; the introductory text, by removing ‘‘247.574(d)’’ and adding ‘‘247.574(c)’’ Therefore, 48 CFR parts 212, 247, and ■ f. In Alternate II— in its place. 252 are proposed to be amended as ■ i. In the clause heading, removing the follows: date of ‘‘(APR 2014)’’ and adding 252.247–7026 [Amended] ■ 1. The authority citation for 48 CFR ‘‘(DATE)’’ in its place; ■ 6. Amend section 252.247–7026, in parts 212, 247, and 252 continues to ■ ii. Redesignating paragraph (h) as the introductory text, by removing read as follows: paragraph (i); ‘‘247.574(e)’’ and adding ‘‘247.574(d)’’ Authority: 41 U.S.C. 1303 and 48 CFR ■ iii. Adding a new paragraph (h); and in its place. chapter 1. ■ iv. In the newly redesignated 252.247–7027 [Amended] paragraphs (i)(1) and (2), removing PART 212—ACQUISITION OF ■ 7. Amend section 252.247–7027, in ‘‘paragraph (h)’’ and adding ‘‘paragraph COMMERCIAL ITEMS the introductory text, by removing (i)’’ in both places. ‘‘247.574(f)’’ and adding ‘‘247.574(e)’’ in 212.301 [Amended] The additions read as follows: its place. ■ 2. Amend section 212.301 by: 252.247–7023 Transportation of Supplies [FR Doc. 2018–18246 Filed 8–23–18; 8:45 am] ■ a. Removing paragraph (f)(xix)(D); by Sea. BILLING CODE 5001–06–P ■ b. Redesignating paragraphs (f)(xix)(E) * * * * * through (H) as paragraphs (f)(xix)(D) (h) If the Contractor has indicated by through (G), respectively; the response to the solicitation DEPARTMENT OF DEFENSE ■ c. In the newly redesignated provision, Representation of Extent of paragraph (f)(xix)(D), removing Transportation by Sea, that it did not Defense Acquisition Regulations ‘‘247.574(d)’’ and adding ‘‘247.574(c)’’ anticipate transporting by sea any System in its place; supplies; however, after the award of ■ d. In the newly redesignated this contract, the Contractor learns that 48 CFR Parts 225 and 252 paragraph (f)(xix)(E), removing supplies will be transported by sea, the [Docket DARS–2018–0004] ‘‘247.574(e)’’ and adding ‘‘247.574(d)’’ Contractor— in its place; RIN 0750–AJ22 (1) Shall notify the Contracting Officer ■ e. In the newly redesignated of that fact; and Defense Federal Acquisition paragraph (f)(xix)(F), removing (2) Hereby agrees to comply with all Regulation Supplement: Restrictions ‘‘247.574(f)’’ and adding ‘‘247.574(e)’’ in the terms and conditions of this clause. on Acquisitions From Foreign Sources its place; and * * * * * (DFARS Case 2017–D011) ■ f. In the newly redesignated paragraph (f)(xix)(G), removing ‘‘U.S’’ and adding Alternate I. * * * AGENCY: Defense Acquisition ‘‘U.S.’’ in its place. * * * * * Regulations System, Department of (h) If the Contractor has indicated by Defense (DoD). PART 247—TRANSPORTATION the response to the solicitation ACTION: Proposed rule. 247.574 [Amended] provision, Representation of Extent of Transportation by Sea, that it did not SUMMARY: DoD is proposing to amend ■ 3. Amend section 247.574 by: the Defense Federal Acquisition anticipate transporting by sea any ■ a. Removing paragraph (c); and Regulation Supplement (DFARS) to supplies; however, after the award of ■ b. Redesignating paragraphs (d) implement sections of the National this contract, the Contractor learns that through (f) as paragraphs (c) through (e), Defense Authorization Act for Fiscal supplies will be transported by sea, the respectively. Year 2017 to apply domestic source Contractor— (1) Shall notify the Contracting Officer requirements to acquisitions at or below PART 252—SOLICITATION the simplified acquisition threshold PROVISIONS AND CONTRACT of that fact; and (2) Hereby agrees to comply with all when acquiring athletic footwear to be CLAUSES furnished to enlisted members of the the terms and conditions of this clause. ■ 4. Amend section 252.247–7023 by: Armed Forces upon their initial entry * * * * * into the Armed Forces, and add ■ a. In the clause heading, removing the Alternate II. * * * Australia and the United Kingdom to date ‘‘(APR 2014)’’ and adding ‘‘(DATE)’’ in its place; * * * * * the definition of the ‘‘National ■ b. Redesignating paragraph (h) as (h) If the Contractor has indicated by Technology and Industrial Base.’’ paragraph (i); the response to the solicitation DATES: Comments on the proposed rule ■ c. Adding a new paragraph (h); and provision, Representation of Extent of should be submitted in writing to the sradovich on DSK3GMQ082PROD with PROPOSALS ■ d. In the newly redesignated Transportation by Sea, that it did not address shown below on or before paragraphs (i)(1) and (2), removing anticipate transporting by sea any October 23, 2018, to be considered in ‘‘paragraph (h)’’ and adding ‘‘paragraph supplies, but the contractor learns after the formation of a final rule. (i)’’ in both places; the award of the contract that supplies ADDRESSES: Submit comments ■ e. In Alternate I: will be transported by sea, the identified by DFARS Case 2017–D011, ■ i. In the clause heading, removing the Contractor shall notify the Contracting using any of the following methods: date of ‘‘(APR 2014)’’ and adding Officer of that fact. Æ Federal eRulemaking Portal: http:// ‘‘(DATE)’’ in its place; * * * * * www.regulations.gov. Search for VerDate Sep<11>2014 19:08 Aug 23, 2018 Jkt 244001 PO 00000 Frm 00024 Fmt 4702 Sfmt 4702 E:\FR\FM\24AUP1.SGM 24AUP1


Document Created: 2018-08-24 04:14:29
Document Modified: 2018-08-24 04:14:29
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionProposed rule.
DatesComments on the proposed rule should be submitted in writing to
ContactMs. Carrie Moore, telephone 571-372- 6093.
FR Citation83 FR 42826 
RIN Number0750-AJ94
CFR Citation48 CFR 212
48 CFR 247
48 CFR 252
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