Federal Register / Vol. 76, No. 75 / Tuesday, April 19, 2011 / Proposed Rules 21847 

appropriate, disproportionate human 

health or environmental effects, using 

practicable and legally permissible 

methods, under Executive Order 12898 

(59 FR 7629, February 16, 1994). 

In addition, this rule does not have 

tribal implications as specified by 

Executive Order 13175 (65 FR 67249, 

November 9, 2000), because the SIP is 

not approved to apply in Indian country 

located in the state, and EPA notes that 

it will not impose substantial direct 

costs on tribal governments or preempt 

tribal law. 

List of Subjects in 40 CFR Part 52 

Environmental protection, Air 

pollution control, Incorporation by 

reference, Intergovernmental relations, 

Nitrogen dioxide, Ozone, Particulate 

matter, Reporting and recordkeeping 

requirements, Volatile Organic 

Compounds. 

Authority: 42 U.S.C. 7401 et seq. 

Dated: April 12, 2011. 

Carol Rushin, 

Acting Regional Administrator, Region 8. 

[FR Doc. 2011–9451 Filed 4–18–11; 8:45 am] 

BILLING CODE 6560–50–P 

DEPARTMENT OF DEFENSE 

Defense Acquisition Regulations 

System 

48 CFR Parts 204, 212, and 252 

RIN 0750–AH02 

Defense Federal Acquisition 

Regulation Supplement (DFARS), 

Alternative Line-Item Structure (DFARS 

Case 2010–D017) 

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 

establish a standard procedure for 

offerors to propose an alternative lineitem structure that reflects the offeror’s 

business practices for selling and billing 

commercial items and initial 

provisioning spares for weapon systems. 

A new solicitation provision is provided 

to facilitate offerors’ ability to propose 

such changes to the solicitation 

structure in their offer. 

DATES: Comments on this proposed rule 

should be submitted in writing to the 

address shown below on or before June 

20, 2011, to be considered in the 

formation of the final rule. 

ADDRESSES: Submit comments 

identified by DFARS Case 2010–D017, 

using any of the following methods: 

• Regulations.gov: http:// 

www.regulations.gov. Submit comments 

via the Federal eRulemaking portal by 

inputting ‘‘DFARS Case 2010–D017’’ 

under the heading ‘‘Enter keyword or 

ID’’ and selecting ‘‘Search.’’ Select the 

link ‘‘Submit a Comment’’ that 

corresponds with ‘‘DFARS Case 2010– 

D017.’’ Follow the instructions provided 

at the ‘‘Submit a Comment’’ screen. 

Please include your name, company 

name (if any), and ‘‘DFARS Case 2010– 

D017’’ on your attached document. 

Follow the instructions for submitting 

comments. 

• E-mail: dfars@osd.mil. Include 

DFARS Case 2010–D017 in the subject 

line of the message. 

• Fax: 703–602–0350. 

• Mail: Defense Acquisition 

Regulations System, Attn: Mr. Julian 

Thrash, OUSD (AT&L) DPAP/DARS, 

Room 3B855, 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 http://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: Mr. 

Julian Thrash, 703–602–0310. 

I. Background 

DoD is proposing to add new DFARS 

language that provides offerors the 

opportunity to propose an alternative 

line-item structure in solicitations for 

commercial items and initial 

provisioning spares. This proposed 

DFARS change will allow offerors to 

provide information about their 

products that may not have been known 

to the Government prior to issuance of 

the solicitation. 

DoD identified the need to propose an 

alternative line-item structure during 

process reviews and working group 

sessions that assessed destinationacceptance procedures. The process 

reviews performed by DoD cross-service 

working groups, which were chartered 

by the Defense Finance and Accounting 

System, examined issues causing 

problems in the receipt and acceptance 

phase for contract deliverables and 

payments. 

This group determined that the level 

of detail in the requirements description 

and line-item structure is not always 

sufficient for delivery, payment, and 

subsequent inventory management of 

the items delivered. For example, the 

contract line item may be for a desktop 

computer, but the actual items 

delivered, invoiced, and inventoried 

may reflect a separate monitor, 

keyboard, and central processing unit. 

The resultant misalignment of 

transaction detail (i.e., contract line 

item, invoiced unit, delivery and 

inventory unit) is the cause of failures 

in the electronic processes of the DoD’s 

business enterprise requiring manual 

intervention with potential delays in 

contractor payment. 

To address this recurring problem, 

this rule is establishing and 

standardizing a process to enable 

offerors to propose changes in their offer 

to the solicitation’s line-item structure. 

Establishing such a process is a first step 

towards managing variation in these 

transactions by eliminating or reducing 

manual intervention. 

II. Proposed DFARS Changes 

DoD is proposing to revise the DFARS 

by adding— 

—Paragraph (g) at 204.7103–1, Criteria 

for establishing; 

—A provision prescription at 

204.7109(b); 

—Reference to the new provision at 

212.301 Solicitation provisions and 

contract clauses for the acquisition of 

commercial items; and 

—A provision at 252.204–70XX, 

Alternative Line-Item Structure. 

Although DoD believes the authority 

to use an alternative line-item structure 

currently exists within the Federal 

Acquisition Regulation (FAR), offerors 

may not be aware of, or be reluctant to 

use, this authority to propose an 

alternative line-item structure. For 

example— 

—FAR 15.203(a)(2) permits the 

contracting officer to authorize 

offerors to propose alternative terms, 

conditions, and contract line-item 

number structure. 

—FAR 12.213, Other Commercial 

Practices, encourages the contracting 

officer to consider other commercial 

practices for incorporation into the 

solicitation and contract, if 

appropriate. FAR 52.212–1(e), 

Instructions to Offerors—Commercial 

Items, Multiple Offers, encourages 

offerors to submit multiple offers 

presenting alternative terms and 

conditions for commercial items for 

satisfying the requirements of the 

solicitation. 

Notwithstanding the above, offerors 

may not understand that they have this 

latitude as they are not proposing 

alternate line-item structure to reflect 


jdjones on DSK8KYBLC1PROD with PROPOSALS-1
21848 Federal Register / Vol. 76, No. 75 / Tuesday, April 19, 2011 / Proposed Rules 

their business practices. DoD expects 

that formalizing the ability to propose 

an alternative line-item structure in a 

standard DFARS provision for 

commercial items and initial 

provisioning spares for weapon systems 

will prevent contract administration and 

payment problems. Therefore, DoD 

welcomes public comment on this 

subject. 

III. Executive Order 12866 and 

Executive Order 13563 

Executive Orders 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). Executive Order 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 Executive Order 

12866, Regulatory Planning and Review, 

dated September 30, 1993. This rule is 

not a major rule under 5 U.S.C. 804. 

IV. Regulatory Flexibility Act 

DoD does not expect this 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 does not impose any 

additional requirements on small 

businesses. Further, this change does 

not add to, or delete from existing 

requirements or authorities for entities 

to include alternative line-item 

structures in their offers. This rule is 

formalizing a process to facilitate 

offerors’ ability to request changes to the 

line-item structure. Therefore, DoD has 

not performed an initial regulatory 

flexibility analysis. DoD invites 

comments from small businesses 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 2010–D017), in 

correspondence. 

V. Paperwork Reduction Act 

The rule does not impose any new 

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. 

Mary Overstreet, 

Editor, Defense Acquisition Regulations 

System. 

Therefore, DoD proposes to amend 48 

CFR parts 204, 212, and 252 as follows: 

1. The authority citation for 48 CFR 

parts 204, 212, and 252 continue to read 

as follows: 

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

chapter 1. 

PART 204—ADMINISTRATIVE 

MATTERS 

2. Amend Section 204.7103–1 by 

adding paragraph (g) to read as follows: 

204.7103–1 Criteria for establishing. 

* * * * * 

(g) Certain commercial items and 

initial provisioning spares for weapons 

systems are requested and subsequently 

solicited using units of measure such as 

kit, set, or lot. However, there are times 

when individual items within that kit, 

set, or lot are not grouped and delivered 

in a single shipment. This creates 

potential contract administration issues 

with inspection, acceptance, and 

payment. In such cases, solicitations 

should be structured to allow offerors to 

provide information about products that 

may not have been known to the 

Government prior to solicitation and 

propose an alternate line-item structure 

as long as the alternate is consistent 

with the requirements of DFARS 204.71, 

which provides explicit guidance on the 

use of contract line items and subline 

items, and PGI 204.71. 

3. Revise section 204.7109 to read as 

follows: 

204.7109 Contract clauses. 

(a) Use the clause at 252.204–7006, 

Billing Instructions, in solicitations and 

contracts if Section G includes— 

(1) Any of the standard payment 

instructions at PGI 204.7108(d)(1) 

through (6); or 

(2) 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. 

(b) Use the provision at 252.204– 

70XX, Alternative Line-Item Structure, 

in solicitations for commercial items 

and initial provisioning spares. 

PART 212—ACQUISITION OF 

COMMERCIAL ITEMS 

4. Amend section 212.301 by revising 

paragraph (f)(iv) to read as follows: 

212.301 Solicitation provisions and 

contract clauses for the acquisition of 

commercial items. 

(f) * * * 

(iv) Use provisions and clauses 

prescribed elsewhere in DFARS as 

follows: 

(A) Use the provision at 252.204– 

70XX, Alternative Line Item Structure, 

as prescribed in 204.7109(b). 

(B) Use the provision at 252.209– 

7001, Disclosure of Ownership or 

Control by the Government of a 

Terrorist Country, as prescribed in 

209.104–70(a). 

(C) Use the clause at 252.211–7003, 

Item Identification and Valuation, as 

prescribed in 211.274–4. 

(D) Use the clause at 252.211–7006, 

Radio Frequency Identification, as 

prescribed in 211.275–3. 

(E) Use the provision at 252.225– 

7010, Commercial Derivative Military 

Article—Specialty Metals Compliance 

Certificate, as prescribed in 225.7003– 

5(b). 

(F) Use the clause at 252.225–7040, 

Contractor Personnel Authorized to 

Accompany U.S. Armed Forces 

Deployed Outside the United States, as 

prescribed in 225.7402–4. 

(G) Use the clause at 252.225–7043, 

Antiterrorism/Force Protection Policy 

for Defense Contractors Outside the 

United States, in solicitations and 

contracts that include the clause at 

252.225–7040. 

(H) Use the clause at 252.232–7009, 

Mandatory Payment by 

Governmentwide Commercial Purchase 

Card, as prescribed in 232.1110. 

(I) Use the clause at 252.232–7010, 

Levies on Contract Payments, as 

prescribed in 232.7102. 

(J) Use the clause at 252.232–7011, 

Payments in Support of Emergencies 

and Contingency Operations, as 

prescribed in 232.908. 

(K) Use the clause at 252.246–7003, 

Notification of Potential Safety Issues, 

as prescribed in 246.371. 

(L) Use the provision at 252.247– 

7026, Evaluation Preference for Use of 

Domestic Shipyards—Applicable to 

Acquisition of Carriage by Vessel for 

DoD Cargo in the Coastwise or 

Noncontiguous Trade, as prescribed in 

247.574(e). 

(M) Use the clause at 252.247–7027, 

Riding Gang Member Requirements, as 

prescribed in 247.574(f). 

* * * * * 


jdjones on DSK8KYBLC1PROD with PROPOSALS-1
Federal Register / Vol. 76, No. 75 / Tuesday, April 19, 2011 / Proposed Rules 21849 

PART 252—SOLICITATION 

PROVISIONS AND CONTRACT 

CLAUSES 

5. Add section 252.204–70XX to read 

as follows: 

252.204–70XX Alternative Line-Item 

Structure. 

As prescribed in 204.7109(b), insert 

the following provision: 

ALTERNATIVE LINE-ITEM 

STRUCTURE (DATE) 

(a) Line items are the basic structural 

elements in a solicitation or contract that 

provide for the organization of contract 

requirements to facilitate pricing, delivery, 

inspection, acceptance and payment. Line 

items are organized into contract line items, 

subline items, and exhibit line items. 

Separate line items should be established to 

account for separate pricing, identification 

(see DFARS 211.274), deliveries, or funding. 

The Government recognizes that the line item 

structure in this solicitation may not conform 

to every offeror’s practices. Failure to correct 

these issues can result in difficulties in 

accounting for deliveries and processing 

payments. Therefore, offerors are invited to 

propose an alternative line item structure for 

items on which bids, proposals, or quotes are 

requested in this solicitation to ensure that 

the resulting contract structure is 

economically and administratively 

advantageous to the Government and the 

Contractor. 

(b) If an alternative line-item structure is 

proposed, the structure must be consistent 

with DFARS 204.71 and PGI 204.71. A 

sample line-item structure and a proposed 

alternative structure are as follows: 

Solicitation 

Item No. Supplies/service Quantity Unit Unit price Amount 

0001 ............. Computer, Desktop with CPU, Monitor, Keyboard and Mouse ....................... 20 EA ... .................... ....................

Alternative line-item structure offer where 

monitors are shipped separately. 

Item 

No. Supplies/service Quantity Unit Unit price Amount 

0001 Computer, Desktop with CPU, Keyboard and Mouse .................................................. 20 EA ... .................... ....................

0002 Monitor .......................................................................................................................... 20 EA ... .................... ....................

(End of provision)] 

[FR Doc. 2011–8966 Filed 4–18–11; 8:45 am] 

BILLING CODE 5001–08–P 

DEPARTMENT OF DEFENSE 

Defense Acquisition Regulations 

System 

48 CFR Part 213 

RIN 0750–AH07 

Defense Federal Acquisition 

Regulation Supplement; Ships 

Bunkers Easy Acquisition (SEA) Card®

and Aircraft Ground Services (DFARS 

Case 2009–D019) 

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 

allow the use of U.S. Government fuel 

cards in lieu of a Purchase OrderInvoice-Voucher for fuel, oil, and 

refueling-related items for purchases not 

exceeding the simplified acquisition 

threshold. 

DATES: Comments on the proposed rule 

should be submitted in writing to the 

address shown below on or before June 

20, 2011, to be considered in the 

formation of the final rule. 

ADDRESSES: You may submit comments, 

identified by DFARS Case 2009–D019, 

using any of the following methods: 

• Regulations.gov: http:// 

www.regulations.gov. Submit comments 

via the Federal eRulemaking portal by 

inputting ‘‘DFARS Case 2009–D019’’ 

under the heading ‘‘Enter keyword or 

ID’’ and selecting ‘‘Search.’’ Select the 

link ‘‘Submit a Comment’’ that 

corresponds with ‘‘DFARS Case 2009– 

D019.’’ Follow the instructions provided 

at the ‘‘Submit a Comment’’ screen. 

Please include your name, company 

name (if any), and ‘‘DFARS Case 2009– 

D019’’ on your attached document. 

Follow the instructions for submitting 

comments. 

E-mail: dfars@osd.mil. Include 

DFARS Case 2009–D019 in the subject 

line of the message. 

Fax: 703–602–0350. 

Mail: Defense Acquisition Regulations 

System, Attn: Mr. Dustin Pitsch, OUSD 

(AT&L) DPAP/DARS, Room 3B855, 

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 http://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: Mr. 

Dustin Pitsch, Telephone: 703–602– 

1014. 

SUPPLEMENTARY INFORMATION: 

I. Background 

The military services and the U.S. 

Coast Guard have small vessels that 

must procure fuel away from their home 

stations. Due to their smaller size and 

unique mission requirements, these 

vessels are unable to use the Defense 

Energy Support Center (DESC) bunkers 

contracts at major seaports. Previously, 

DFARS 213.306(a)(1)(A) authorized only 

the use of the Aviation Into-plane 

Reimbursement (AIR) Card® up to the 

simplified acquisition threshold 

specifically for aviation fuel and oil. 

Refueling stops often include other 

ground refueling-related services that 

exceed the micro-purchase threshold. 

Due to port restrictions on vessel 

movements, bunkering merchants do 

not typically provide support to smaller 

vessels. These smaller vessels frequent 

‘‘marina-type merchants.’’ These small 

vessels fulfill valid mission needs in 

direct support of national security. 

Unlike larger vessels with more 

predictable movements, small vessels’ 

needs are often unpredictable and farreaching geographically. 

DoD proposes to add language at 

DFARS section 213.306(a)(1)(A) to 

include purchases of marine fuel, oil, 

and refueling-related items using the 

Ships Bunkers Easy Acquisition (SEA) 


jdjones on DSK8KYBLC1PROD with PROPOSALS-1