Federal Register / Vol. 79, No. 102 / Wednesday, May 28, 2014 / Proposed Rules 30535 

§ 68b.11 Under what circumstances can 

the service or payment obligation be 

canceled, waived, or suspended? 

(a) Any obligation of a participant for 

service or payment to the federal 

government under this part will be 

canceled upon the death of the 

participant. 

(b) The Director may waive or 

suspend any service or payment 

obligation incurred by the participant 

upon request whenever compliance by 

the participant: 

(1) Is impossible, or 

(2)(i) Would involve extreme 

hardship, and 

(ii) If enforcement of the service or 

payment obligation would be 

unconscionable, as required by section 

487 D(e) of the Act, 42 U.S.C. 288–4(e). 

(c) The Director may approve a 

request for a suspension of the service 

or payment obligations for a period of 

one year. A renewal of this suspension 

may also be granted. 

(d) Compliance by a participant with 

a service or payment obligation will be 

considered impossible if the Director 

determines, on the basis of information 

and documentation as may be required, 

that the participant suffers from a 

physical or mental disability resulting 

in the permanent inability of the 

participant to perform the service or 

other activities that would be necessary 

to comply with the obligation. 

(e) In determining whether to waive 

or suspend any or all of the service or 

payment obligations of a participant as 

imposing an undue hardship and being 

against equity and good conscience, the 

Director, on the basis of information and 

documentation as may be required, will 

consider: 

(1) the participant’s present financial 

resources and obligations; 

(2) the participant’s estimated future 

financial resources and obligations; and 

(3) the extent to which the participant 

has problems of a personal nature, such 

as physical or mental disability or 

terminal illness in the immediate 

family, which so intrude on the 

participant’s present and future ability 

to perform as to raise a presumption that 

the individual will be unable to begin or 

complete the obligation incurred. 

§ 68b.12 What other regulations and 

statutes apply? 

Several other regulations and statutes 

apply to this part. These include, but are 

not necessarily limited to: 

(a) Debt Collection Act of 1982 (31 

U.S.C. 3701 et seq.); 

(b) Debt Collection Improvement Act 

of 1996 (31 U.S.C. 3701 note); 

(c) Fair Credit Reporting Act (15 

U.S.C. 1681 et seq.); 

(d) Federal Debt Collection 

Procedures Act of 1990 (28 U.S.C. 176); 

and 

(e) Privacy Act of 1974 (5 U.S.C 552a). 

Dated: April 15, 2014. 

Francis S. Collins, 

Director, National Institutes of Health. 

Approved: 

Kathleen Sebelius, 

Secretary. 

[FR Doc. 2014–12180 Filed 5–27–14; 8:45 am] 

BILLING CODE 4140–01–P 

DEPARTMENT OF DEFENSE 

Defense Acquisition Regulations 

System 

48 CFR Parts 217, 234, 237, and 252 

RIN 0750–AI27 

Defense Federal Acquisition 

Regulation Supplement: Clauses With 

Alternates—Special Contracting 

Methods, Major System Acquisition, 

and Service Contracting (DFARS Case 

2014–D004) 

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 

revise and update clauses and their 

prescriptions for special contracting 

methods, major system acquisition, and 

service contracting to create basic and 

alternate clauses structured in a manner 

to facilitate use of automated contract 

writing systems. The rule also includes 

the full text of each alternate, rather 

than only showing the paragraphs that 

differ from the basic clause. 

DATES: Comment Date: Comments on 

the proposed rule should be submitted 

in writing to the address shown below 

on or before July 28, 2014, to be 

considered in the formation of a final 

rule. 

ADDRESSES: Submit comments 

identified by DFARS Case 2014–D004, 

using any of the following methods: 

Æ Regulations.gov: http://

www.regulations.gov. Submit comments 

via the Federal eRulemaking portal by 

entering ‘‘DFARS Case 2014–D004’’ 

under the heading ‘‘Enter keyword or 

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

link ‘‘Submit a Comment’’ that 

corresponds with ‘‘DFARS Case 2014– 

D004.’’ Follow the instructions provided 

at the ‘‘Submit a Comment’’ screen. 

Please include your name, company 

name (if any), and ‘‘DFARS Case 2014– 

D004’’ on your attached document. 

Æ Email: osd.dfars@mail.mil. Include 

DFARS Case 2014–D004 in the subject 

line of the message. 

Æ Fax: 571–372–6094. 

Æ Mail: Defense Acquisition 

Regulations System, Attn: Ms. Janetta 

Brewer, 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: Ms. 

Janetta Brewer, Defense Acquisition 

Regulations System, 

OUSD(AT&L)DPAP/DARS, Room 

3B855, 3060 Defense Pentagon, 

Washington, DC 20301–3060. 

Telephone 571–372–6104. 

SUPPLEMENTARY INFORMATION: 

I. Background 

DoD is undertaking a revision of 

provisions and clauses with alternates 

and the associated prescriptions, in 

order to clarify usage and facilitate the 

use of automated contract writing 

systems. These proposed changes do not 

affect the meaning or applicability of the 

provisions or clauses. 

II. Discussion 

This proposed rule addresses DFARS 

parts 217, 234, and 237 clauses that 

have alternates. The affected clauses 

are— 

• 252.217–7000, Exercise of Option to 

Fulfill Foreign Military Sales 

Commitments, with one alternate; 

• 252.234–7003 Notice of Cost and 

Software Data Reporting System, with 

one alternate; 

• 252.234–7004 Cost and Software 

Data Reporting System, with one 

alternate; 

• 252.237–7002 Award to Single 

Offeror, with one alternate; and 

• 252.237–7016 Delivery Tickets, 

with two alternates. 

The naming convention results in 

proposed new clause titles, e.g., 

Exercise of Option to Fulfill Foreign 

Military Sales Commitments—Basic, 

and Exercise of Option to Fulfill Foreign 

Military Sales Commitments—Alternate 

I. 

An umbrella prescription is proposed 

to be added for the elements common to 

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30536 Federal Register / Vol. 79, No. 102 / Wednesday, May 28, 2014 / Proposed Rules 

the basic clause and alternate. The 

specific prescription for the basic clause 

and alternate would then address only 

the requirements for their use that 

enable the selection of the basic or the 

alternate. The planned changes will 

increase the clarity and ease of use but 

will not revise the applicability of the 

clause or provision in any way. The 

presentation of the text of alternates 

would no longer consist solely of 

paragraphs that are different from the 

basic clause, but would instead include 

the entire full text of the alternate 

clause. Further, this proposed rule 

would also revise the applicable clause 

preface, i.e., the language in part 252 

that precedes a provision, clause, or 

alternate. The clause preface language is 

being tailored to identify the specific 

clause prescription reference for each 

basic and alternate clause and to 

delineate how the basic and alternate 

clauses differ. 

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. 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 it merely revises the 

prescriptions for solicitation provisions 

and clauses with alternates, and 

includes the full text of each provision 

or clause for each alternate. However, an 

initial regulatory flexibility analysis has 

been performed and is summarized as 

follows: 

The purpose of this case is to amend 

the Defense Federal Acquisition 

Regulation Supplement (DFARS) to 

create unique prescriptions for the basic 

version and each alternate of DFARS 

parts 217, 234, and 237 solicitations 

provisions and clauses, and to include 

the full text of each clause alternate. 

The use of automated contract writing 

systems will be facilitated by having 

unique prescriptions for the basic 

version and each alternate of DFARS 

solicitations provisions and clauses. The 

current convention requires the 

prescription for the basic provision or 

clause to address all the possibilities 

covered by the alternates, and then the 

prescription for each alternate addresses 

only what is different for the use of that 

particular alternate. This rule will revise 

the prescriptions so that the basic 

solicitation provision or clause and each 

alternate is unique and stands on its 

own. The prescriptions will not be 

revised in any way to change when they 

are applicable to offerors, contractors, or 

subcontractors. 

Additionally, the inclusion of the full 

text of each provision or clause alternate 

aims to make the terms of a provision 

or clause alternate clearer to offerors, as 

well as to DoD contracting officers. 

Instead of the current convention for 

alternates to show only paragraphs 

changed from the basic version of the 

provision or clause, this rule proposes 

to include the full text of each version 

of the clause. This will assist in making 

the terms of the clause clearer, because 

all paragraph substitutions will have 

already been made. Inapplicable 

paragraphs from the basic version of the 

clause that are superseded by the 

alternate are not included in the 

solicitation or contract to prevent 

confusion. 

Potential offerors, including small 

businesses, may be affected by this rule 

by seeing an unfamiliar format for 

clause alternates in solicitations and 

contracts issued by DoD contracting 

activities. According to the Federal 

Procurement Data System, in fiscal year 

2012, DoD made approximately 270,000 

contract awards (not including 

modification and orders) that exceeded 

the micro-purchase threshold, of which 

approximately 180,000 (67%) were 

awarded to small businesses. It is 

unknown how many of these contracts 

were awarded that included an alternate 

to a DFARS provision or clause. Nothing 

substantive will change in solicitations 

or contracts for potential offerors, and 

only the appearance of how clause 

alternates are presented in the 

solicitations and contracts will be 

changed. This rule may result in 

potential offerors, including small 

businesses, expending more time to 

become familiar with and to understand 

the new format of the clause alternates 

in full text contained in contracts issued 

by any DoD contracting activity. The 

rule also anticipates saving contractors 

time by making all paragraph 

substitutions from the basic version of 

the clause, and not requiring the 

contractors to read inapplicable 

paragraphs contained in the basic 

version of the clause where alternates 

are also included in the solicitations 

and contracts. The overall burden 

caused by this rule is expected to be 

negligible and will not be any greater on 

small businesses than it is on large 

businesses. 

This rule does not add any new 

information collection requirements. 

The rule does not duplicate, overlap, or 

conflict with any other Federal rules. No 

alternatives were identified that will 

accomplish the objectives of the rule. 

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 2014–D004), in 

correspondence. 

V. 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 217, 

234, 237, and 252 

Government procurement. 

Manuel Quinones, 

Editor, Defense Acquisition Regulations 

System. 

Therefore, 48 CFR parts 217, 234, 237, 

and 252 are proposed to be amended as 

follows: 

■ 1. The authority citation for parts 217, 

234, 237, and 252 continues to read as 

follows: 

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

chapter 1. 

PART 217—SPECIAL CONTRACTING 

METHODS 

■ 2. In section 217.208–70, revise 

paragraph (a) to read as follows: 

217.208–70 Additional clauses. 

(a) Use the basic or the alternate of the 

clause at 252.217–7000, Exercise of 

Option to Fulfill Foreign Military Sales 

Commitments, in solicitations and 

contracts when an option may be used 

for Foreign Military Sales requirements. 

Do not use the basic or the alternate of 

this clause in contracts for 

establishment or replenishment of DoD 

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Federal Register / Vol. 79, No. 102 / Wednesday, May 28, 2014 / Proposed Rules 30537 

inventories or stocks, or acquisitions 

made under DoD cooperative logistics 

support arrangements. 

(1) Use the basic clause when the 

Foreign Military Sales country is known 

at the time of solicitation or award. 

(2) Use the alternate I clause when the 

foreign military sale country is not 

known at the time of solicitation or 

award. 

* * * * * 

PART 234—MAJOR SYSTEM 

ACQUISITION 

■ 3. Revise section 234.7101 to read as 

follows: 

234.7101 Solicitation provision and 

contract clause. 

(a) Use the basic or the alternate of the 

provision at 252.234–7003, Notice of 

Cost and Software Data Reporting 

System, in any solicitation that includes 

the basic or the alternate of the clause 

at 252.234–7004, Cost and Software 

Data Reporting. 

(1) Use the basic provision when the 

solicitation includes the clause at 

252.234–7004, Cost and Software Data 

Reporting—Basic. 

(2) Use the alternate I provision when 

the solicitation includes the clause at 

252.234–7004, Cost and Software Data 

Reporting—Alternate I. 

(b) Use the basic or the alternate of the 

clause at 252.234–7004, Cost and 

Software Data Reporting System, in 

solicitations that include major defense 

acquisition programs or major 

automated information system programs 

as follows: 

(1) Use the basic clause in 

solicitations and contracts for major 

defense acquisition programs or major 

automated information system programs 

that exceed $50 million. 

(2) Use the alternate I clause in 

solicitations and contracts for major 

defense acquisition programs or major 

automated information system programs 

with a value equal to or greater than $20 

million but less than or equal to $50 

million, when so directed by the 

program manager with the approval of 

the OSD Deputy Director, Cost 

Assessment. 

PART 237—SERVICE CONTRACTING 

■ 4. In section 237.7003, revise 

paragraph (a) to read as follows: 

237.7003 Solicitation provisions and 

contract clauses. 

(a) Use the basic or the alternate of the 

provision at 252.237–7002, Award to 

Single Offeror, in solicitations and 

contracts for mortuary services. 

(1) Use the basic provision in all 

sealed bid solicitations for mortuary 

services. 

(2) Use the alternate I provision in all 

negotiated solicitations for mortuary 

services. 

* * * * * 

■ 5. In section 237.7101, revise 

paragraph (e) to read as follows: 

237.7101 Solicitation provisions and 

contract clauses. 

* * * * * 

(e) Use the basic or an alternate of the 

clause at 252.237–7016, Delivery 

Tickets, in all solicitations and contracts 

for laundry and dry cleaning services. 

(1) Use the basic clause when services 

are not to be provided on a bulk weight 

basis. 

(2) Use the alternate I clause when 

services are for bag type laundry to be 

provided on a bulk weight basis. 

(3) Use the alternate II clause when 

services are unsorted laundry to be 

provided on a bulk weight basis. 

* * * * * 

PART 252—SOLICITATION 

PROVISIONS AND CONTRACT 

CLAUSES 

■ 6. Amend section 252.217–7000 by— 

■ a. Revising the introductory text, 

clause title and date; and 

■ b. Revising Alternate I. 

The revisions read as follows: 

252.217–7000 Exercise of Option to Fulfill 

Foreign Military Sales Commitments. 

As prescribed in 217.208–70(a), use 

one of the following clauses: 

Basic. As prescribed in 217.208– 

70(a)(1), use the following clause. 

Exercise of Option To Fulfill Foreign 

Military Sales Commitments—Basic 

(Date) 

* * * * * 

Alternate I. As prescribed in 217.208– 

70(a)(2), use the following clause, which 

uses a different paragraph (b) than 

paragraph (b) of the basic clause. 

Exercise of Option To Fulfill Foreign 

Military Sales Commitments—Alternate 

I (Date) 

(a) The Government may exercise the 

option(s) of this contract to fulfill foreign 

military sales commitments. 

(b) On the date the option is exercised, the 

Government shall identify the foreign 

country for the purpose of negotiating any 

equitable adjustment attributable to foreign 

military sales. Failure to agree on an 

equitable adjustment shall be treated as a 

dispute under the Disputes clause of this 

contract. 

(End of clause) 

■ 7. Amend section 252.234–7003 by— 

■ a. Revising the introductory text, 

clause title and date; and 

■ b. Revising Alternate I. 

The revisions read as follows: 

252.234–7003 Notice of Cost and Software 

Data Reporting System 

As prescribed in 234.7101(a) use one 

of the following provisions: 

Basic. As prescribed in 234.7101(a)(1), 

use the following provision. 

Notice of Cost and Software Data 

Reporting System—Basic (Date) 

* * * * * 

Alternate I. As prescribed in 

234.7101(a)(2), use the following 

provision, which uses a different 

paragraph (c) than the basic provision. 

Notice of Cost and Software Data 

Reporting System—Alternate I (Date) 

(a) This solicitation includes— 

(1) The Government-approved cost and 

software data reporting (CSDR) plan for the 

contract, DD Form 2794; and 

(2) The related Resource Distribution 

Table. 

(b) As part of its proposal, the offeror 

shall— 

(1) Describe the process to be used to 

satisfy the requirements of the DoD 5000.04– 

M–1, CSDR Manual, and the Governmentapproved CSDR plan for the proposed 

contract; 

(2) Demonstrate how contractor cost and 

data reporting (CCDR) will be based, to the 

maximum extent possible, upon actual cost 

transactions and not cost allocations; 

(3) Demonstrate how the data from its 

accounting system will be mapped into the 

standard reporting categories required in the 

CCDR data item descriptions; 

(4) Describe how recurring and 

nonrecurring costs will be segregated; 

(5) Provide comments on the adequacy of 

the CSDR contract plan and related Resource 

Distribution Table; and 

(6) Submit the DD Form 1921, Cost Data 

Summary Report, and DD Form 1921–1, 

Functional Cost-Hour Report, with its pricing 

proposal. 

(c) CSDR reporting will be required for 

subcontractors for selected subcontracts 

identified in the CSDR contract plan as 

requiring such reporting. The offeror shall 

identify, by providing comments on the 

Resource Distribution Table, the 

subcontractors, or, if the subcontractors have 

not been selected, the subcontracted effort. 

(End of provision) 

■ 8. Amend section 252.234–7004 by— 

■ a. Revising the introductory text, 

clause title and date; and 

■ b. Revising Alternate I. 

The revisions read as follows: 

252.234–7004 Cost and Software Data 

Reporting System 

As prescribed in 234.7101(b), use one 

of the following clauses: 

Basic. As prescribed at 234.7101(b)(1), 

use the following clause. 

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30538 Federal Register / Vol. 79, No. 102 / Wednesday, May 28, 2014 / Proposed Rules 

Cost and Software Data Reporting 

System—Basic (Date) 

* * * * * 

Alternate I. As prescribed in 

234.7101(b)(2), use the following clause, 

which uses a different paragraph (b) 

than the basic clause. 

Cost and Software Data Reporting 

System—Alternate I (Date) 

(a) In the performance of this contract, the 

Contractor shall use— 

(1) A documented standard cost and 

software data reporting (CSDR) process that 

satisfies the guidelines contained in the DoD 

5000.04–M–1, CSDR Manual; 

(2) Management procedures that provide 

for generation of timely and reliable 

information for the contractor cost data 

reports (CCDRs) and software resources data 

reports (SRDRs) required by the CCDR and 

SRDR data items of this contract; and 

(3) The Government-approved CSDR plan 

for this contract, DD Form 2794, and the 

related Resource Distribution Table as the 

basis for reporting in accordance with the 

required CSDR data item descriptions (DIDs). 

(b) The Contractor shall require CSDR 

reporting from selected subcontractors 

identified in the CSDR contract plan as 

requiring such reporting. If the Contractor 

changes subcontractors or makes new awards 

for selected subcontract effort, the Contractor 

shall notify the Government. 

(End of clause) 

■ 9. Amend section 252.237–7002 by— 

■ a. Revising the introductory text, 

provision title and date; and 

■ b. Revising Alternate I. 

The revisions read as follows: 

252.237–7002 Award to Single Offeror. 

As prescribed in 237.7003(a), use one 

of the following provisions: 

Basic. As prescribed in 237.7003(a)(1), 

use the following provision. 

Award to Single Offeror—Basic (Date) 

* * * * * 

Alternate I. As prescribed in 

237.7003(a)(2), use the following 

provision, which uses a different 

paragraph (d) than the basic provision. 

Award to Single Offeror—Alternate I 

(Date) 

(a) Award shall be made to a single offeror. 

(b) Offerors shall include unit prices for 

each item. Failure to include unit prices for 

each item will be cause for rejection of the 

entire offer. 

(c) The Government will evaluate offers on 

the basis of the estimated quantities shown. 

(d) Award will be made to that responsive, 

responsible offeror whose total aggregate 

offer is in the best interest of the 

Government. 

(End of provision) 

■ 10. Amend section 252.237–7016 by— 

■ a. Revising the introductory text, 

provision title and date; and 

■ b. Revising Alternate I and Alternate 

II. 

The revisions read as follows: 

252.237–7016 Delivery Tickets. 

As prescribed in 237.7101(e), use one 

of the following clauses: 

Basic. As prescribed in 237.7101(e)(1), 

use the following clause. 

Delivery Tickets—Basic (Date) 

* * * * * 

Alternate I. As prescribed in 

237.7101(e)(2), use the following clause, 

which includes paragraphs (c), (d), and 

(e) not included in the basic clause. 

Delivery Tickets—Alternate I (Date) 

(a) The Contractor shall complete delivery 

tickets in the number of copies required and 

in the form approved by the Contracting 

Officer, when it receives the articles to be 

serviced. 

(b) The Contractor shall include one copy 

of each delivery ticket with its invoice for 

payment. 

(c) Before the Contractor picks up articles 

for service under this contract, the 

Contracting Officer will ensure that— 

(1) Each bag contains only articles within 

a single bag type as specified in the schedule; 

and 

(2) Each bag is weighed and the weight and 

bag type are identified on the bag. 

(d) The Contractor shall, at time of 

pickup— 

(1) Verify the weight and bag type and 

record them on the delivery ticket; and 

(2) Provide the Contracting Officer, or 

representative, a copy of the delivery ticket. 

(e) At the time of delivery, the Contractor 

shall record the weight and bag type of 

serviced laundry on the delivery ticket. The 

Contracting Officer will ensure that this 

weight and bag type are verified at time of 

delivery. 

(End of clause) 

Alternate II. As prescribed in 

237.7101(e)(3), use the following clause, 

which includes paragraphs (c), (d), and 

(e) not included in the basic clause. 

Delivery Tickets—Alternate II (Date) 

(a) The Contractor shall complete delivery 

tickets in the number of copies required and 

in the form approved by the Contracting 

Officer, when it receives the articles to be 

serviced. 

(b) The Contractor shall include one copy 

of each delivery ticket with its invoice for 

payment. 

(c) Before the Contractor picks up articles 

for service under this contract, the 

Contracting Officer will ensure that each bag 

is weighed and that the weight is identified 

on the bag. 

(d) The Contractor, at time of pickup, shall 

verify and record the weight on the delivery 

ticket and shall provide the Contracting 

Officer, or representative, a copy of the 

delivery ticket. 

(e) At the time of delivery, the Contractor 

shall record the weight of serviced laundry 

on the delivery ticket. The Contracting 

Officer will ensure that this weight is verified 

at time of delivery. 

(End of clause) 

[FR Doc. 2014–12134 Filed 5–27–14; 8:45 am] 

BILLING CODE 5001–06–P 

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