Federal Register / Vol. 79, No. 238 / Thursday, December 11, 2014 / Rules and Regulations 73499 

I. Background 

DoD published an interim rule in the 

Federal Register at 79 FR 44314 on July 

31, 2014, to implement sections of the 

Military Construction and Veterans 

Affairs, and Related Agencies 

Appropriations Act, 2014, that restricts 

use of military construction funds in 

various countries, including countries 

bordering the Arabian Sea. Since 1997, 

sections 111 and 112 of the annual 

military construction appropriations 

acts restrict use of military construction 

funds for acquisitions exceeding certain 

dollar thresholds of architect-engineer 

services and military construction to be 

performed in certain countries. With 

some exceptions, these restrictions 

require award to a U.S. firm or provide 

a preference for award to a U.S. firm. 

One respondent submitted a public 

comment in response to the interim 

rule. 

II. Discussion and Analysis 

DoD reviewed the public comment in 

the development of the final rule. The 

comment did not result in any changes 

in the final rule. A discussion of the 

comment is provided, as follows: 

Comment: The respondent disagreed 

with the substitution of ‘‘Arabian Sea’’ 

for the ‘‘Arabian Gulf’’ for the following 

reasons: 

• The respondent viewed the rule as 

a ‘‘degradation of the intent of the law.’’ 

• The respondent viewed the rule as 

harmful to all U.S. businesses, small 

and large, interested in construction 

projects in countries that border the 

Arabian Gulf, due to loss of the 20 

percent preference. 

The respondent suggested extension 

of the preferences for U.S. businesses 

when awarding military construction or 

architect-engineer contracts in countries 

bordering the Arabian Gulf to contracts 

in countries bordering the Arabian Sea. 

Response: The interim rule was 

issued in order to comply with the law. 

For several years, the restrictions in the 

annual military construction 

appropriations acts have applied the use 

of military construction funds in 

countries bordering the Arabian Sea, not 

the Arabian Gulf. The law does not 

provide the option to provide the 20 

percent preference to U.S. firms 

performing construction projects in 

countries that border the Arabian Gulf. 

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 

A final regulatory flexibility analysis 

has been prepared consistent with the 

Regulatory Flexibility Act, 5 U.S.C. 601, 

et seq., and is summarized as follows: 

This rule is necessary to implement 

the preference for award only to U.S. 

firms when awarding certain military 

construction and architect-engineer 

contracts to be performed in countries 

bordering the Arabian Sea. 

The objective of this rule is to 

implement sections 111 and 112 of the 

Military Construction and Veterans 

Affairs, and Related Agencies 

Appropriations Act, 2014 (Division J of 

Pub. L. 113–76). This rule revises the 

preference for award to U.S. firms of 

military construction contracts that have 

an estimated value greater than 

$1,000,000 and the restriction requiring 

award only to U.S. firms for architectengineer contracts that have an 

estimated value greater than $500,000, 

to make it applicable to contracts to be 

performed in a country bordering the 

Arabian Sea, rather than a country 

bordering the Arabian Gulf (as required 

in earlier statutes). 

One respondent stated that the rule 

would cause harm to U.S. small 

business entities engaged in 

construction projects in countries 

bordering the Arabian Gulf, due to loss 

of the 20 percent preference. There was 

no change made to the rule as the result 

of this comment, because the law no 

longer provides a preference for U.S. 

businesses (small or large) performing 

construction projects in countries 

bordering the Arabian Gulf. The law 

changed the applicability of the 

preference from military construction 

projects in countries bordering the 

Arabian Gulf to military construction 

projects bordering the Arabian Sea. 

This will only apply to a very limited 

number of small entities—those entities 

that submit offers in response to 

solicitations for military construction 

contracts that have an estimated value 

greater than $1,000,000 and architectengineer contracts that have an 

estimated value greater than $500,000, 

when the contracts are to be performed 

in countries bordering the Arabian Sea. 

There is a requirement for offerors to 

indicate in their offer whether they are 

a U.S. firm. 

This rule does not impose any 

significant economic impact on small 

firms. The offeror must represent if it is 

a U.S. firm, but in return is granted a 

preference. DoD did not identify any 

alternatives that could reduce the 

burden and still meet the objectives of 

the rule. 

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). However, it modifies the 

prescription for use of the provision at 

DFARS 252.236–7010, Overseas 

Military Construction—Preference for 

United States Firms, currently approved 

under OMB Clearance 0704–0255, 

Defense Federal Acquisition Regulation 

Supplement (DFARS) Part 236, 

Construction and Architect-Engineer 

Contracts, an amount of less than 8 

hours. Any change in the burden hours 

due to the changed prescription is 

negligible. 

List of Subjects in 48 CFR Parts 225 and 

236 

Government procurement. 

Manuel Quinones, 

Editor, Defense Acquisition Regulations 

System. 

■ Accordingly, the interim rule 

amending 48 CFR part 225 and 236, 

which was published at 79 FR 44314 on 

July 31, 2014, is adopted as a final rule 

without change. 

[FR Doc. 2014–28815 Filed 12–10–14; 8:45 am] 

BILLING CODE 5001–06–P 

DEPARTMENT OF DEFENSE 

Defense Acquisition Regulations 

System 

48 CFR Parts 225 and 252 

RIN 0750–AI47 

Defense Federal Acquisition 

Regulation Supplement: Elimination of 

Quarterly Reporting of Actual 

Performance Outside the United States 

(DFARS Case 2015–D001) 

AGENCY: Defense Acquisition 

Regulations System, Department of 

Defense (DoD). 

ACTION: Final rule. 


tkelley on DSK3SPTVN1PROD with RULES
73500 Federal Register / Vol. 79, No. 238 / Thursday, December 11, 2014 / Rules and Regulations 

SUMMARY: DoD is issuing a final rule 

amending the Defense Federal 

Acquisition Regulation Supplement 

(DFARS) to eliminate the requirement 

for quarterly reporting of actual contract 

performance outside the United States. 

DATES: Effective December 11, 2014. 

FOR FURTHER INFORMATION CONTACT: Ms. 

Amy G. Williams, telephone 571–372– 

6106. 

SUPPLEMENTARY INFORMATION: 

I. Background 

As part of a DFARS streamlining 

initiative, DoD is eliminating the 

requirement for quarterly reporting of 

actual contract performance outside the 

United States (DFARS 252.225–7006, 

Quarterly Reporting of Actual Contract 

Performance Outside the United States) 

and associated text in DFARS subpart 

225.72. This report is not required by 

statute. 

DoD is retaining the provision at 

252.225–7003, Report of Intended 

Performance Outside the United States 

and Canada—Submission with Offer, 

and the clause at 252.225–7004, Report 

of Intended Performance Outside the 

United States and Canada—Submission 

After Award, both of which are required 

by 10 U.S.C. 2410g. 

II. Publication of This Final Rule for 

Public Comment Is Not Required by 

Statute 

‘‘Publication of proposed 

regulations’’, 41 U.S.C. 1707, is the 

statute which applies to the publication 

of the Federal Acquisition Regulation. 

Paragraph (a)(1) of the statute requires 

that a procurement policy, regulation, 

procedure or form (including an 

amendment or modification thereof) 

must be published for public comment 

if it relates to the expenditure of 

appropriated funds, and has either a 

significant effect beyond the internal 

operating procedures of the agency 

issuing the policy, regulation, procedure 

or form, or has a significant cost or 

administrative impact on contractors or 

offerors. This final rule is not required 

to be published for public comment, 

because this rule just eliminates 

obsolete text. 

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 

The Regulatory Flexibility Act does 

not apply to this rule because this final 

rule does not constitute a significant 

DFARS revision within the meaning of 

FAR 1.501–1, and 41 U.S.C. 1707 does 

not require publication for public 

comment. 

V. Paperwork Reduction Act 

This rule slightly reduces the 

information collection requirements 

currently approved under OMB Control 

Number 0704–0229, titled Defense 

Federal Acquisition Regulation 

Supplement (DFARS) Part 225, Foreign 

Acquisition, in accordance with the 

Paperwork Reduction Act (44 U.S.C. 

chapter 35). Removing the requirement 

for the DFARS 252.225–7006 quarterly 

reports reduced the burden hours 

approved by OMB in 0704–0229 by 225 

hours, from 64,256 hours to 64,031 

hours. An OMB Form 83–C Change 

Request has been processed by OMB to 

reduce the burden accordingly. 

List of Subjects in 48 CFR Parts 225 and 

252 

Government procurement. 

Manuel Quinones, 

Editor, 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. Revise section 225.7201 to read as 

follows: 

225.7201 Policy. 

10 U.S.C. 2410g requires offerors and 

contractors to notify DoD of any 

intention to perform a DoD contract 

outside the United States and Canada 

when the contract could be performed 

inside the United States or Canada. 

225.7204 [Amended] 

■ 3. Amend section 225.7204 by— 

■ a. In paragraph (a), adding the word 

‘‘and’’ after the semicolon; 

■ b. In paragraph (b), removing the 

semicolon and adding a period; and 

■ c. Removing paragraph (c). 

PART 252—SOLICITATION 

PROVISIONS AND CONTRACT 

CLAUSES 

252.225–7006 [Removed and Reserved] 

■ 4. Remove and reserve 252.225–7005. 

[FR Doc. 2014–28816 Filed 12–10–14; 8:45 am] 

BILLING CODE 5001–06–P 

DEPARTMENT OF DEFENSE 

48 CFR Parts 235, 237, and 252 

RIN 0750–AI22 

Defense Federal Acquisition 

Regulation Supplement: Animal 

Welfare (DFARS Case 2013–D038) 

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 comply with the 

Department of Defense Instruction that 

addresses the use of animals in DoD 

programs. 

DATES: Effective December 11, 2014. 

FOR FURTHER INFORMATION CONTACT: Ms. 

Janetta Brewer, telephone 571–372– 

6104. 

SUPPLEMENTARY INFORMATION: 

I. Background 

DoD published a proposed rule in the 

Federal Register at 79 FR 35717 on June 

24, 2014, to revise DFARS 235.072, 

subpart 237.1, and the clause at 

252.235–7002, Animal Welfare, to be 

consistent with the Department of 

Defense Instruction (DoDI) 3216.01 

entitled ‘‘Use of Animals in DoD 

Programs,’’ which governs DoD 

supported research, development, test, 

and evaluation or training that uses 

vertebrate animals, and the acquisition 

of animals. One respondent submitted 

two comments on the proposed rule. 

II. Discussion and Analysis 

DoD reviewed the public comments in 

the development of the final rule, and 

one change was made. A discussion of 

the comments is provided below. 

Comment: The respondent 

recommended that DFARS section 

237.17X be revised to prescribe use of 

the clause at 252.235–7002. 

Response: The clause at 252.235– 

7002, Animal Welfare, is prescribed 


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