65562 Federal Register / Vol. 83, No. 245 / Friday, December 21, 2018 / Rules and Regulations 

footwear to enlisted members of the 

Armed Forces upon their initial entry 

into the Armed Forces. 

With regard to implementation of 

section 881(b), this rule will not apply 

to any small entities at the prime 

contract level, as there are only a few 

prime contractors for the restricted 

items, which are all U.S. firms that are 

other than small businesses. For the 

definition of ‘‘small business,’’ the 

Regulatory Flexibility Act refers to the 

Small Business Act, which in turn 

allows the U.S. Small Business 

Administration (SBA) Administrator to 

specify detailed definitions or standards 

(5 U.S.C. 601(3) and 15 U.S.C. 632(a)). 

The SBA regulations at 13 CFR 

121.105(a)(1) discuss who is a small 

business, providing that except for small 

agricultural cooperatives, a business 

concern eligible for assistance from SBA 

as a small business is a business entity 

organized for profit, with a place of 

business located in the United States, 

and which operates primarily within the 

United States or which makes a 

significant contribution to the U.S. 

economy through payment of taxes or 

use of American products, materials or 

labor. Therefore, if an item currently 

purchased from a U.S. entity that is 

other than a small business were to be 

purchased from an entity in the 

Australia or the United Kingdom, there 

could be an impact on a few small 

entities that are currently subcontractors 

to a U.S. prime contractor. 

There are no reporting, recordkeeping, 

or other compliance requirements of the 

rule, other than to furnish athletic 

footwear compliant with the Berry 

Amendment and the other restricted 

items manufactured by a manufacturer 

that is part of the national technology 

and industrial base (which is now 

expanded to include the United 

Kingdom and Australia, as well as the 

United States and Canada). 

By extending the restriction of the 

Berry Amendment to acquisitions that 

do not exceed simplified acquisition 

threshold, this rule may benefit small 

entities that can provide Berry 

Amendment-compliant athletic 

footwear, because they may be more 

able to compete for smaller acquisitions. 

DoD was unable to identify any 

alternatives that would meet the 

requirements of the statutes). 

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 225 and 

252 

Government procurement. 

Jennifer Lee Hawes, 

Regulatory Control Officer, Defense 

Acquisition Regulations System. 

Therefore, 48 CFR parts 225 and 252 

are amended as follows: 

■ 1. The authority citation for 48 CFR 

parts 225 and 252 continues to read as 

follows: 

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

chapter 1. 

PART 225—FOREIGN ACQUISITION 

■ 2. Amend section 225.7002–2 by 

revising paragraph (a) to read as follows: 

225.7002–2 Exceptions. 

* * * * * 

(a) Acquisitions at or below the 

simplified acquisition threshold, except 

for athletic footwear purchased by DoD 

for use by members of the Army, Navy, 

Air Force, or Marine Corps upon their 

initial entry into the Armed Forces 

(section 817 of the National Defense 

Authorization Act for Fiscal Year 2017 

(Pub. L. 114–328)). 

* * * * * 

225.7002–3 [Amended] 

■ 3. Amend section 225.7002–3, in 

paragraph (a) by removing ‘‘commercial 

items, that exceed the simplified 

acquisition threshold’’ and adding 

‘‘commercial items’’ in its place. 

225.7004–1 [Amended] 

■ 4. Amend section 225.7004–1 by 

removing ‘‘United States or Canada’’ 

and adding ‘‘United States, Australia, 

Canada, or the United Kingdom’’ in its 

place. 

225.7004–3 [Amended] 

■ 5. Amend section 225.7004–3 by: 

■ a. In paragraph (a) by removing 

‘‘manufactured in the United States or 

Canada’’ and adding ‘‘manufactured in 

the United States, Australia, Canada, or 

the United Kingdom’’ in two places. 

■ b. In paragraphs (a), (b), and (c) by 

removing ‘‘United States and Canada’’ 

and adding ‘‘United States, Australia, 

Canada, or the United Kingdom’’ in its 

place wherever it appears. 

225.7006–1 [Amended] 

■ 6. Amend section 225.7006–1 by 

removing ‘‘United States or Canada’’ 

and adding ‘‘United States, Australia, 

Canada, or the United Kingdom’’ in its 

place. 

■ 7. Revise section 225.7006–3 to read 

as follows: 

225.7006–3 Waiver. 

The waiver criteria at 225.7008(a) 

apply to this restriction. 

■ 8. Amend section 225.7006–4 by 

revising paragraphs (a)(2) and (b)(2) to 

read as follows: 

225.7006–4 Solicitation provision and 

contract clause. 

(a) * * * 

(2) A waiver has been granted. 

(b) * * * 

(2) A waiver has been granted. 

PART 252—SOLICITATION 

PROVISIONS AND CONTRACT 

CLAUSES 

252.225–7037 [Amended] 

■ 9. Amend section 252.225–7037 by: 

■ a. Removing the provision date of 

‘‘(JUN 2012)’’ and adding ‘‘(DEC 2018)’’ 

in its place; and 

■ b. In paragraphs (a) and (b), removing 

‘‘outlying areas, Canada,’’ and adding 

‘‘outlying areas, Australia, Canada,’’ in 

its place in both places. 

252.225–7038 [Amended] 

■ 10. Amend section 252.225–7038 by: 

■ a. Removing the provision date of 

‘‘(JUN 2005)’’ and adding ‘‘(DEC 2018)’’ 

on its place; and 

■ b. Removing ‘‘outlying areas, 

Canada,’’ and adding ‘‘outlying areas, 

Australia, Canada,’’ in its place. 

[FR Doc. 2018–27557 Filed 12–20–18; 8:45 am] 

BILLING CODE 5001–06–P 

DEPARTMENT OF DEFENSE 

Defense Acquisition Regulations 

System 

48 CFR Part 252 

[Docket DARS–2018–0018] 

RIN 0750–AJ42 

Defense Federal Acquisition 

Regulation Supplement: Submission of 

Summary Subcontract Reports 

(DFARS Case 2017–D005) 

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 change the entity to which 

contractors submit Summary 

Subcontract Reports in the Electronic 

Subcontracting Reporting System (eSRS) 

and to change the entity that 

acknowledges receipt of, or rejects, the 

reports in eSRS. 


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Federal Register / Vol. 83, No. 245 / Friday, December 21, 2018 / Rules and Regulations 65563 

DATES: Effective December 21, 2018. 

FOR FURTHER INFORMATION CONTACT: Ms. 

Jennifer D. Johnson, telephone 571– 

372–6100. 

SUPPLEMENTARY INFORMATION: 

I. Background 

DoD published a proposed rule in the 

Federal Register at 83 FR 30666 on June 

29, 2018, to implement a policy that 

streamlines the submission and review 

of Summary Subcontract Reports (SSRs) 

for DoD contractors and brings the 

DFARS into compliance with changes to 

the Federal Acquisition Regulation 

(FAR). Instead of submitting multiple 

SSRs to departments and agencies 

within DoD, contractors with individual 

subcontracting plans will submit a 

single, consolidated SSR in eSRS at the 

DoD level. The consolidated SSR will be 

acknowledged or rejected in eSRS at the 

DoD level. 

There were no public comments 

submitted in response to the proposed 

rule. There are no changes made to the 

final rule. 

II. Applicability to Contracts at or 

Below the Simplified Acquisition 

Threshold and for Commercial Items, 

Including Commercially Available Offthe-Shelf Items 

This rule amends the clause at DFARS 

252.219–7003, Small Business 

Subcontracting Plan (DoD Contracts), 

and its Alternate I. The objective of the 

rule is to simplify the submission and 

review of SSRs in eSRS. 

DoD does not apply the clause and its 

Alternate I to solicitations and contracts 

with a value at or below the Simplified 

Acquisition Threshold, because 

subcontracting plans are not required at 

that dollar value. 

DoD currently applies the clause and 

its Alternate I to solicitations and 

contracts for the acquisition of 

commercial items, including 

commercially available off-the-shelf 

(COTS) items, as defined at FAR 2.101. 

Not applying this guidance to contracts 

for the acquisition of commercial items, 

including COTS items, would exclude 

contracts intended to be included in the 

streamlined SSRs and undermine the 

overarching purpose of the rule. As 

such, DoD is applying the rule to 

contracts for the acquisition of 

commercial items, including COTS 

items. 

III. Expected Cost Savings 

This rule amends the DFARS to 

implement a policy that streamlines the 

submission and review of SSRs for DoD 

contractors. Instead of the current 

practice of submitting multiple SSRs to 

various departments or agencies within 

DoD, contractors with individual 

subcontracting plans will submit one 

consolidated SSR at the DoD level in 

eSRS. The consolidated SSR will be 

acknowledged or rejected in eSRS at the 

DoD level. 

This rule impacts only large 

businesses that have individual 

subcontracting plans and at least one 

contract with DoD. Although the clause 

at DFARS 252.219–7003, Small 

Business Subcontracting Plan (DoD 

Contracts), and its Alternate I currently 

require large business contractors to 

submit SSRs to the department or 

agency within DoD that administers the 

majority of the contractor’s individual 

subcontracting plans, these contractors 

frequently must submit SSRs to each 

department or agency within DoD with 

which they have contracts. This results 

in extra work for the contractors and 

creates problems with duplicate 

subcontracting data. By requiring 

submission and review of SSRs at the 

DoD level, this rule resolves these 

issues. 

The following is a summary of the 

estimated public cost savings calculated 

in 2016 dollars at a 7-percent discount 

rate and in perpetuity: 

Summary Public Government Total 

Present Value ............................................................................................................ ¥$384,404 ¥$101,487 ¥$485,891 

Annualized Costs ....................................................................................................... ¥26,908 ¥7,104 ¥34,012 

Annualized Value Costs (as of 2016 if Year 1 is 2019) ............................................ ¥21,965 ¥5,799 ¥27,764 

To access the full regulatory cost 

analysis for this rule, go to the Federal 

eRulemaking Portal at 

www.regulations.gov, search for 

‘‘DFARS Case 2017–D005,’’ click ‘‘Open 

Docket,’’ and view ‘‘Supporting 

Documents.’’ 

IV. 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. 

V. Executive Order 13771 

This final rule is considered to be an 

E.O. 13771 deregulatory action. The 

total annualized value of the cost 

savings is $27,764 (as of 2016 if Year 1 

is 2019). Details on the estimated cost 

savings can be found in section III of 

this preamble. 

VI. Regulatory Flexibility Act 

A final regulatory flexibility analysis 

(FRFA) has been prepared consistent 

with the Regulatory Flexibility Act, 5 

U.S.C. 601, et seq. The FRFA is 

summarized as follows: 

This final rule is necessary to provide 

updates on the submission and review 

of Summary Subcontract Reports (SSRs) 

in the Electronic Subcontracting 

Reporting System (eSRS). This rule 

amends the DFARS to require 

contractors with individual 

subcontracting plans to submit a single, 

consolidated SSR in eSRS at the DoD 

level instead of submitting multiple 

SSRs to departments and agencies 

within DoD. The consolidated SSR will 

be acknowledged or rejected in eSRS at 

the DoD level. The rule will bring the 

clause at DFARS 252.219–7003, Small 

Business Subcontracting Plan (DoD 

Contracts), and its Alternate I, into 

compliance with the requirement for a 

consolidated SSR in the clause at FAR 

52.219–9, Small Business 

Subcontracting Plan. 

There were no issues raised by the 

public in response to the initial 

regulatory flexibility analysis provided 

in the proposed rule. 

The rule will apply to DoD 

contractors who have individual 

subcontracting plans and must comply 

with the clause at DFARS 252.219– 

7003. Small entities are not required to 

comply with this clause and, therefore, 

will not be affected by the rule. 


amozie on DSK3GDR082PROD with RULES
65564 Federal Register / Vol. 83, No. 245 / Friday, December 21, 2018 / Rules and Regulations 

The rule does not impose any 

reporting or recordkeeping requirements 

on any small entities. 

There are no known alternative 

approaches that would accomplish the 

stated objectives. 

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 Part 252 

Government procurement. 

Jennifer Lee Hawes, 

Regulatory Control Officer, Defense 

Acquisition Regulations System. 

Therefore, 48 CFR part 252 is 

amended as follows: 

PART 252—SOLICITATION 

PROVISIONS AND CONTRACT 

CLAUSES 

■ 1. The authority citation for part 252 

continues to read as follows: 

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

chapter 1. 

■ 2. Amend section 252.219–7003 by— 

■ a. Removing the clause date of ‘‘(APR 

2018)’’ and adding ‘‘(DEC 2018)’’ in its 

place; 

■ b. Revising paragraphs (a), (b), 

(f)(1)(ii), and (f)(2)(ii); 

■ c. Removing paragraph (f)(2)(iii); and 

■ d. In Alternate I— 

■ i. Removing the clause date of ‘‘(APR 

2018)’’ and adding ‘‘(DEC 2018)’’ in its 

place; and 

■ ii. Revising paragraphs (a), (b), 

(f)(1)(ii), and (f)(2). 

The revisions reads as follows: 

252.219–7003 Small Business 

Subcontracting Plan (DoD Contracts). 

* * * * * 

(a) Definitions. Summary Subcontract 

Report (SSR) Coordinator, as used in 

this clause, means the individual who is 

registered in the Electronic 

Subcontracting Reporting System (eSRS) 

at the Department of Defense level and 

is responsible for acknowledging receipt 

or rejecting SSRs submitted under an 

individual subcontracting plan in eSRS 

for the Department of Defense. 

(b) Subcontracts awarded to qualified 

nonprofit agencies designated by the 

Committee for Purchase From People 

Who Are Blind or Severely Disabled (41 

U.S.C. 8502–8504), may be counted 

toward the Contractor’s small business 

subcontracting goal. 

* * * * * 

(f)(1) * * * 

(ii) Submit the consolidated SSR for 

an individual subcontracting plan to the 

‘‘Department of Defense.’’ 

(2) * * * 

(ii) The authority to acknowledge 

receipt of or reject SSRs submitted 

under an individual subcontracting plan 

resides with the SSR Coordinator. 

* * * * * 

Alternate I. * * * 

(a) Definitions. Summary Subcontract 

Report (SSR) Coordinator, as used in 

this clause, means the individual who is 

registered in the Electronic 

Subcontracting Reporting System (eSRS) 

at the Department of Defense level and 

is responsible for acknowledging receipt 

or rejecting SSRs submitted under an 

individual subcontracting plan in eSRS 

for the Department of Defense. 

(b) Subcontracts awarded to qualified 

nonprofit agencies designated by the 

Committee for Purchase From People 

Who Are Blind or Severely Disabled (41 

U.S.C. 8502–8504), may be counted 

toward the Contractor’s small business 

subcontracting goal. 

* * * * * 

(f)(1) * * * 

(ii) Submit the consolidated SSR to 

the ‘‘Department of Defense.’’ 

(2) For DoD, the authority to 

acknowledge receipt of or reject SSRs 

submitted under an individual 

subcontracting plan in eSRS resides 

with the SSR Coordinator. 

* * * * * 

[FR Doc. 2018–27556 Filed 12–20–18; 8:45 am] 

BILLING CODE 5001–06–P 

DEPARTMENT OF TRANSPORTATION 

Federal Motor Carrier Safety 

Administration 

49 CFR Part 383 

[Docket No. FMCSA–2016–0346] 

RIN 2126–AB98 

Commercial Learner’s Permit Validity 

AGENCY: Federal Motor Carrier Safety 

Administration (FMCSA), DOT. 

ACTION: Final rule. 

SUMMARY: FMCSA amends the Federal 

Motor Carrier Safety Regulations 

(FMCSRs) to allow States the option of 

issuing a commercial learner’s permit 

(CLP) with an expiration date of up to 

one year from the date of initial 

issuance. The CLP must be valid for no 

more than one year from the initial date 

of issuance without requiring the CLP 

holder to retake the general and 

endorsement knowledge tests. CLPs 

issued for a period of less than one year 

may be renewed provided the CLP is not 

valid for more than one year from the 

date of initial issuance. This rule does 

not require a State to revise its current 

CLP issuance practices, unless it 

chooses to do so. This rule is a 

deregulatory action as defined by 

Executive Order (E.O.) 13771, 

‘‘Reducing Regulation and Controlling 

Regulatory Costs.’’ 

DATES: This final rule is effective 

February 19, 2019. 

Petitions for Reconsideration of this 

final rule must be submitted to the 

FMCSA Administrator no later than 

January 22, 2019. 

FOR FURTHER INFORMATION CONTACT: Mr. 

Selden Fritschner, CDL Division, 

Federal Motor Carrier Safety 

Administration, 1200 New Jersey 

Avenue SE, Washington, DC 20590– 

0001, by email at Selden.Fritschner@

dot.gov, or by telephone at 202–366– 

0677. If you have questions on viewing 

or submitting material to the docket, 

contact Docket Services, telephone (202) 

366–9826. 

SUPPLEMENTARY INFORMATION: 

I. Rulemaking Documents 

A. Availability of Rulemaking 

Documents 

For access to docket FMCSA–2016– 

0346 to read background documents and 

comments received, go to http://

www.regulations.gov at any time, or to 

Docket Services at U.S. Department of 

Transportation, Room W12–140, 1200 

New Jersey Avenue SE, Washington, DC 

20590, between 9 a.m. and 5 p.m., 

Monday through Friday, except Federal 

holidays. 

B. Privacy Act 

In accordance with 5 U.S.C. 553(c), 

DOT solicits comments from the public 

to better inform its rulemaking process. 

DOT posts these comments, without 

edit, including any personal information 

the commenter provides, to 

www.regulations.gov, as described in 

the system of records notice (DOT/ALL– 

14 FDMS), which can be reviewed at 

www.dot.gov/privacy. 

II. Executive Summary 

Purpose and Summary of the Major 

Provisions 

This final rule allows States the 

option of issuing a CLP valid for up to 

one year from the date of initial 

issuance. Within that one year period, 

the CLP may be renewed at the State’s 

discretion, but if it is renewed, the CLP 

may not be valid for more than a total 

of one year from the date of initial 


amozie on DSK3GDR082PROD with RULES