Federal Register / Vol. 69, No. 210 / Monday, November 1, 2004 / Rules and Regulations 63331

that have a significant effect beyond the 

internal operating procedures of DoD or 

a significant cost or administrative 

impact on contractors or offerors. 

Additional information on the DFARS 

Transformation initiative is available at 

http://www.acq.osd.mil/dpap/dfars/

transf.htm.

This final rule is a result of the 

DFARS Transformation initiative. The 

rule amends DFARS 212.504 to remove 

the Trade Agreements Act (19 U.S.C. 

2512) and the Buy American Act (41 

U.S.C. 10) from the list of laws 

inapplicable to subcontracts for the 

acquisition of commercial items. 

Inclusion of these laws on the list is 

unnecessary, because the Government 

does not apply the restrictions of the 

Buy American Act or the Trade 

Agreements Act at the subcontract level. 

The prime contractor is responsible for 

providing an end product that meets the 

requirements of the Acts. 

DoD published a proposed rule at 69 

FR 8151 on February 23, 2004. DoD 

received one comment in response to 

the proposed rule, and that comment 

supported the rule. Therefore, DoD has 

adopted the proposed rule as a final 

rule, with the addition of a correction to 

a cross-reference in 212.504(a). 

This rule was not subject to Office of 

Management and Budget review under 

Executive Order 12866, dated 

September 30, 1993. 

B. Regulatory Flexibility Act 

DoD certifies that this final rule will 

not 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 a clarification of the 

Government’s existing policy of not 

applying the Buy American Act or the 

Trade Agreements Act at the 

subcontract level. 

C. Paperwork Reduction Act 

The Paperwork Reduction Act does 

not apply because the rule does not 

impose any information collection 

requirements that require the approval 

of the Office of Management and Budget 

under 44 U.S.C. 3501, et seq.

List of Subjects in 48 CFR Part 212 

Government procurement.

Michele P. Peterson, 

Executive Editor, Defense Acquisition 

Regulations Council.

■ Therefore, 48 CFR part 212 is amended 

as follows:

■ 1. The authority citation for 48 CFR 

part 212 continues to read as follows:

Authority: 41 U.S.C. 421 and 48 CFR 

Chapter 1.

PART 212—ACQUISITION OF 

COMMERCIAL ITEMS

212.504 [Amended]

■ 2. Section 212.504 is amended as 

follows:

■ a. By removing paragraphs (a)(xxiii) 

and (a)(xxiv);

■ b. By redesignating paragraph (a)(xxv) 

as paragraph (a)(xxiii); and

■ c. In newly designated paragraph 

(a)(xxiii), in the second sentence, by 

removing ‘‘225.7019–2(b)’’ and adding in 

its place ‘‘225.7009–2(b)’’.

[FR Doc. 04–24282 Filed 10–29–04; 8:45 am] 

BILLING CODE 5001–08–P

DEPARTMENT OF DEFENSE

48 CFR Part 231 

[DFARS Case 2003–D036] 

Defense Federal Acquisition 

Regulation Supplement; Cost 

Principles and Procedures

AGENCY: Department of Defense (DoD).

ACTION: Final rule.

SUMMARY: DoD has issued a final rule 

amending the Defense Federal 

Acquisition Regulation Supplement 

(DFARS) to update text pertaining to 

contract cost principles. This rule is a 

result of a transformation initiative 

undertaken by DoD to dramatically 

change the purpose and content of the 

DFARS.

DATES: Effective November 1, 2004.

FOR FURTHER INFORMATION CONTACT: Mr. 

Thaddeus Godlewski, Defense 

Acquisition Regulations Council, 

OUSD(AT&L)DPAP(DAR), IMD 3C132, 

3062 Defense Pentagon, Washington, DC 

20301–3062. Telephone (703) 602–2022; 

facsimile (703) 602–0350. Please cite 

DFARS Case 2003–D036.

SUPPLEMENTARY INFORMATION: 

A. Background 

DFARS Transformation is a major 

DoD initiative to dramatically change 

the purpose and content of the DFARS. 

The objective is to improve the 

efficiency and effectiveness of the 

acquisition process, while allowing the 

acquisition workforce the flexibility to 

innovate. The transformed DFARS will 

contain only requirements of law, DoDwide policies, delegations of FAR 

authorities, deviations from FAR 

requirements, and policies/procedures 

that have a significant effect beyond the 

internal operating procedures of DoD or 

a significant cost or administrative 

impact on contractors or offerors. 

Additional information on the DFARS 

Transformation initiative is available at 

http://www.acq.osd.mil/dpap/dfars/

transf.htm. 

This final rule is a result of the 

DFARS Transformation initiative. The 

DFARS changes—

• Delete the text at DFARS 231.205–

10, Cost of money, because it is 

redundant of the text in DFARS Subpart 

230.70, Facilities Capital Employed for 

Facilities in Use. 

• Clarify the text at DFARS 231.205–

22, Legislative lobbying costs, to specify 

that these costs are statutorily 

unallowable. 

• Revise the text at DFARS 231.205–

70, External restructuring costs, to—

1. Eliminate unnecessary references to 

fiscal years 1995, 1997, and 1998 

legislation. 

2. Delete text at 231.205–

70(c)(1)(iv)(A) and (B) regarding 

business combinations that occurred on 

or before November 18, 1997. This text 

is unnecessary, because external 

restructurings normally must be 

initiated within 3 years of a business 

combination. 

3. Delete text at 231.205–70(d), 

Procedures and ACO responsibilities. 

This text has been relocated to the new 

DFARS companion resource, 

Procedures, Guidance, and Information 

(PGI). A final rule addressing the 

purpose and structure of PGI is 

published elsewhere in this issue of the 

Federal Register under DFARS Case 

2003–D090, Procedures, Guidance, and 

Information. PGI is available at http://

www.acq.osd.mil/dpap/dars/index.htm. 

DoD published a proposed rule at 69 

FR 8154 on February 23, 2004. DoD 

received no comments on the proposed 

rule. Therefore, DoD has adopted the 

proposed rule as a final rule without 

change. 

This rule was not subject to Office of 

Management and Budget review under 

Executive Order 12866, dated 

September 30, 1993. 

B. Regulatory Flexibility Act 

DoD certifies that this final rule will 

not 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 clarifies existing 

DFARS text, and deletes DFARS text 

that is redundant, outdated, or 

procedural, but makes no significant 

change to contracting policy. 

C. Paperwork Reduction Act 

The Paperwork Reduction Act does 

not apply because the rule does not 

impose any information collection 

requirements that require the approval 

63332 Federal Register / Vol. 69, No. 210 / Monday, November 1, 2004 / Rules and Regulations 

of the Office of Management and Budget 

under 44 U.S.C. 3501, et seq.

List of Subjects in 48 CFR Part 231 

Government procurement.

Michele P. Peterson, 

Executive Editor, Defense Acquisition 

Regulations Council.

■ Therefore, 48 CFR part 231 is amended 

as follows:

■ 1. The authority citation for 48 CFR 

part 231 continues to read as follows:

Authority: 41 U.S.C. 421 and 48 CFR 

chapter 1.

PART 231—CONTRACT COST 

PRINCIPLES AND PROCEDURES

231.205–10 [Removed]

■ 2. Section 231.205–10 is removed.

■ 3. Section 231.205–22 is revised to 

read as follows:

231.205–22 Legislative lobbying costs. 

(a) Costs associated with preparing 

any material, report, list, or analysis on 

the actual or projected economic or 

employment impact in a particular State 

or congressional district of an 

acquisition program for which all 

research, development, testing, and 

evaluation has not been completed also 

are unallowable (10 U.S.C. 2249).

■ 4. Section 231.205–70 is amended by 

revising paragraphs (a), (c), and (d) to 

read as follows:

231.205–70 External restructuring costs.

(a) Scope. This subsection—

(1) Prescribes policies and procedures 

for allowing contractor external 

restructuring costs when savings would 

result for DoD; and 

(2) Implements 10 U.S.C. 2325.

* * * * *

(c) Limitations on cost allowability.

(1) Restructuring costs associated with 

external restructuring activities shall not 

be allowed unless—

(i) Such costs are allowable in 

accordance with FAR Part 31 and 

DFARS Part 231; 

(ii) An audit of projected restructuring 

costs and restructuring savings is 

performed; 

(iii) The cognizant administrative 

contracting officer (ACO) reviews the 

audit report and the projected costs and 

projected savings, and negotiates an 

advance agreement in accordance with 

paragraph (d) of this subsection; and 

(iv) For business combinations that 

occur after November 18, 1997, the 

Under Secretary of Defense 

(Acquisition, Technology, and Logistics) 

or the Principal Deputy determines in 

writing that the audited projected 

savings for DoD resulting from the 

restructuring will exceed either—

(A) The costs allowed by a factor of 

at least two to one; or 

(B) The cost allowed, and the business 

combination will result in the 

preservation of a critical capability that 

might otherwise be lost to DoD. 

(2) The audit, review, certification, 

and determination required by 

paragraph (c)(1) of this subsection shall 

not apply to any business combination 

for which payments for restructuring 

costs were made before August 15, 1994, 

or for which the cognizant ACO 

executed an advance agreement 

establishing cost ceilings based on 

audit/negotiation of detailed cost 

proposals for individual restructuring 

projects before August 15, 1994. 

(d) Procedures and ACO 

responsibilities. As soon as it is known 

that the contractor will incur 

restructuring costs for external 

restructuring activities, the cognizant 

ACO shall follow the procedures at PGI 

231.205–70(d).

* * * * *

[FR Doc. 04–24288 Filed 10–29–04; 8:45 am] 

BILLING CODE 5001–08–P

DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric 

Administration

50 CFR Part 660

[Docket No. 040429134–4135–01; I.D. 

102504B]

Fisheries Off West Coast States and in 

the Western Pacific; West Coast 

Salmon Fisheries; Inseason Action 

#12—Adjustment of the Commercial 

Salmon Fishery from Humbug 

Mountain, Oregon to the OregonCalifornia Border

AGENCY: National Marine Fisheries 

Service (NMFS), National Oceanic and 

Atmospheric Administration (NOAA), 

Commerce.

ACTION: Modification of fishing season; 

request for comments.

SUMMARY: NMFS announces that the 

commercial salmon fishery in the area 

from Humbug Mountain, OR to the 

Oregon-California Border was modified 

to be open September 1 through 

September 3, September 8 through 

September 10, and September 15 

through September 30, or until the 

attainment of the 3,000 chinook quota, 

with a modified possession and landing 

limit of 50 chinook per day per vessel. 

This action was necessary to conform to 

the 2004 management goals. The 

intended effect of this action is to allow 

the fishery to operate within the seasons 

and quotas as specified in the 2004 

annual management measures.

DATES: Adjustment in the area from 

Humbug Mountain, OR to the OregonCalifornia Border effective 0001 hours 

local time (l.t.) September 1, 2004, until 

the chinook quota is taken, or 2359 

hours l.t., September 30, 2004; after 

which the fishery will remain closed 

until opened through an additional 

inseason action for the west coast 

salmon fisheries, which will be 

published in the Federal Register, or 

until the effective date of the next 

scheduled open period announced in 

the 2005 annual management measures. 

Comments will be accepted through 

November 16, 2004.

ADDRESSES: Comments on this action 

must be mailed to D. Robert Lohn, 

Regional Administrator, Northwest 

Region, NMFS, NOAA, 7600 Sand Point 

Way N.E., Bldg. 1, Seattle, WA 98115–

0070; or faxed to 206–526–6376; or Rod 

McInnis, Regional Administrator, 

Southwest Region, NMFS, NOAA, 501 

W. Ocean Blvd., Suite 4200, Long 

Beach, CA 90802–4132; or faxed to 562–

980–4018. Comments can also be 

submitted via e-mail at the 

2004salmonIA12.nwr@noaa.gov

address, or through the internet at the 

Federal eRulemaking Portal: http://

www.regulations.gov. Follow the 

instructions for submitting comments 

and include the docket number in the 

subject line of the message. Information 

relevant to this document is available 

for public review during business hours 

at the Office of the Regional 

Administrator, Northwest Region, 

NMFS.

FOR FURTHER INFORMATION CONTACT:

Christopher Wright, 206–526–6140.

SUPPLEMENTARY INFORMATION: The 

Regional Administrator modified the 

season for the commercial salmon 

fishery in the area from Humbug 

Mountain, OR to the Oregon-California 

Border to be open September 1 through 

September 3, September 8 through 

September 10, and September 15 

through September 30, or until the 

attainment of the 3,000 chinook quota, 

with a modified possession and landing 

limit of 50 chinook per day per vessel. 

On August 19, 2004, the Regional 

Administrator determined that the 

available catch and effort data indicated 

that the quota of 3,000 chinook may be 

achieved quickly, and that provisions to 

slow the catch were needed to avoid 

exceeding the quota.

All other restrictions remained in 

effect as announced for 2004 ocean