71926 Federal Register / Vol. 76, No. 224 / Monday, November 21, 2011 / Proposed Rules 

252.229–7005 Tax Exemptions (Spain). 

* * * * * 

(a) As the Contractor represented in 

its offer, the contract prices, including 

subcontract prices, does not include the 

taxes identified herein, or any other 

taxes from which the United States 

Government is exempt. 

* * * * * 

15. Add section 252.229–70XX to read 

as follows: 

252.229–70XX Tax Exemptions (Italy)— 

Representation. 

As prescribed in 229.402–70(c)(2), use 

the following provision: 

Tax Exemptions (Italy)— 

Representation (Date) 

(a) Exemptions. The United States 

Government is exempt from payment 

of— 

(1) Imposta Valore Aggiunto (IVA) tax 

in accordance with Article 72 of the IVA 

implementing decree on all supplies 

and services sold to United States 

Military Commands in Italy; and 

(2) The other taxes specified in 

paragraph (c) of the clause DFARS 

252.229–7003, Tax Exemptions (Italy). 

(b) Representation. By submission of 

its offer, the offeror represents that the 

offered price, including the prices of 

subcontracts to be awarded under the 

contract, does not include the taxes 

identified herein, or any other taxes 

from which the United States 

Government is exempt. 

(End of provision) 

16. Add section 252.229–70YY to read 

as follows: 

252.229–70YY Tax Exemptions (Spain)— 

Representation. 

As prescribed in 229.402–70(e)(2), use 

the following clause: 

Tax Exemptions (Spain)— 

Representation (Date) 

(a) Exemptions. In accordance with 

tax relief agreements between the 

United States Government and the 

Spanish Government, and because the 

resultant contract arises from the 

activities of the United States Forces in 

Spain, the contract will be exempt from 

the excise, luxury, and transaction taxes 

listed in paragraph (b) of the clause 

DFARS 252.229–7005, Tax Exemptions 

(Spain). 

(b) Representation. By submission of 

its offer, the offeror represents that the 

offered price, including the prices of 

subcontracts to be awarded under the 

contract, does not include the taxes 

identified herein, or any other taxes 

from which the United States 

Government is exempt. 

(End of provision) 

[FR Doc. 2011–29857 Filed 11–18–11; 8:45 am] 

BILLING CODE 5001–06–P 

DEPARTMENT OF DEFENSE 

Defense Acquisition Regulations 

System 

48 CFR Parts 212, 244, and 252 

RIN 0750–AH39 

Defense Federal Acquisition 

Regulation Supplement: Applicability 

of Hexavalent Chromium Policy to 

Commercial Items (DFARS Case 2011– 

D047) 

AGENCY: Defense Acquisition 

Regulations System, Department of 

Defense (DoD). 

ACTION: Proposed rule. 

SUMMARY: DoD is proposing to amend 

the Defense Federal Acquisition 

Regulation Supplement to clarify the 

applicability to commercial items of 

DoD policies relating to the use of 

materials containing hexavalent 

chromium. 

DATES: Comment Date: Comments on 

the proposed rule should be submitted 

in writing to the address shown below 

on or before January 20, 2012, to be 

considered in the formation of a final 

rule. 

ADDRESSES: Submit comments 

identified by DFARS Case 2011–D047, 

using any of the following methods: 

Æ Regulations.gov: http:// 

www.regulations.gov. 

Submit comments via the Federal 

eRulemaking portal by inputting 

‘‘DFARS Case 2011–D047’’ under the 

heading ‘‘Enter keyword or ID’’ and 

selecting ‘‘Search.’’ Select the link 

‘‘Submit a Comment’’ that corresponds 

with ‘‘DFARS Case 2011–D047.’’ Follow 

the instructions provided at the ‘‘Submit 

a Comment’’ screen. Please include your 

name, company name (if any), and 

‘‘DFARS Case 2009–D047’’ on your 

attached document. 

Æ Email: dfars@osd.mil. Include 

DFARS Case 2011–D047 in the subject 

line of the message. 

Æ Fax: 703–602–0350. 

Æ Mail: Defense Acquisition 

Regulations System, Attn: Amy G. 

Williams, 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 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. 

Amy G. Williams, telephone 703–602– 

0328. 

SUPPLEMENTARY INFORMATION: 

I. Background 

DoD published a final rule at in the 

Federal Register at 76 FR 25569 on May 

5, 2011, to implement in the Defense 

Federal Acquisition Regulation 

Supplement (DFARS) the DoD policy 

addressing the serious human health 

and environmental risks related to the 

use of hexavalent chromium. 

Hexavalent chromium is a chemical that 

has been used in numerous DoD 

weapons systems platforms due to its 

corrosion protection properties. 

However, hexavalent chromium is a 

known carcinogen. The final rule 

minimized the use of materials 

containing hexavalent chromium in 

items acquired by DoD, including the 

creation of a new DFARS clause, 

252.223–7008, Prohibition of 

Hexavalent Chromium, which prohibits 

the contractor from providing any 

deliverables or construction material 

that— 

(1) Contains hexavalent chromium in 

a concentration greater than 0.1 percent 

by weight in any homogeneous material; 

or 

(2) Requires the removal or 

reapplication of hexavalent chromium 

materials during subsequent 

sustainment phases of the deliverable or 

construction material. 

The final rule prescribed use of the 

clause in solicitations and contracts for 

supplies, maintenance and repair 

services, or construction, unless an 

exception at DFARS 223.7304 applies or 

use has been authorized in accordance 

with DFARS 223.7305. 

II. Discussion and Analysis 

The preamble to the final rule stated 

the clear intent that the rule should 

apply to commercial items. In response 

to a respondent who requested an 

exception for all commercial items, DoD 

stated that to provide an exception for 

all commercial items will jeopardize the 

intent of the rule and be contrary to DoD 

policy (section II.F.). 

However, although the final rule did 

not specify an exception for commercial 

items, the rule overlooked the need to 

separately prescribe the clause in part 

212 in order to require use of the clause 

in acquisitions conducted under part 

212. FAR 12.301(d)(1) states that 

prescriptions contained elsewhere in 

the FAR do not apply to acquisitions 

under FAR part 12, unless separately 

included in FAR part 12. 

Therefore, this rule proposes to 

correct that oversight and provide at 


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Federal Register / Vol. 76, No. 224 / Monday, November 21, 2011 / Proposed Rules 71927 

DFARS 212.301(f) the requirement for 

use of DFARS 252.223–7008 in 

contracts for the acquisition of 

commercial items, as prescribed at 

223.7306. In addition, in order to flow 

the requirement down to commercial 

subcontracts under a noncommercial 

prime contract, the clause DFARS 

252.223–7008 must be added to the list 

of clauses in DFARS 252.244–7000, 

Subcontracts for Commercial Items and 

Commercial Components (DoD 

Contracts). 

In addition, the prescription at 

DFARS 244.403 for use of 252.244–7000 

was simplified, so that DFARS 244.403 

does not require update every time a 

clause is added to the list in 252.244– 

7000 for flow down to subcontracts for 

commercial items. Further, 252.244– 

7000 states that the listed clauses shall 

flow down when applicable. This rule 

augments the list of clauses in 252.244– 

7000 with indication of the conditions 

of applicability for each clause. 

III. Executive Orders 1286 and 13565 

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 a significant 

regulatory action and, therefore, was 

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 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 this rule is just correcting a 

drafting oversight in the rule published 

on May 5, 2011. DoD certified that that 

rule would not have a significant 

economic impact on a substantial 

number of small entities. Therefore, an 

initial regulatory flexibility analysis has 

not been performed. 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 201X–D047), 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 Part 212, 244, 

and 252 

Government procurement. 

Mary Overstreet, 

Editor, Defense Acquisition Regulation 

Supplement. 

Therefore DoD proposes to amend 48 

CFR parts 212, 244, and 252 as follows: 

1. The authority citation for 48 CFR 

parts 212, 244, and 252 continues to 

read as follows: 

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

chapter 1. 

PART 212—ACQUISITION OF 

COMMERCIAL ITEMS 

2. Amend section 212.301 by— 

(a) Redesignating paragraphs (f)(iv)(E) 

through (L) as paragraphs (f)(iv)(F) 

through (M); and 

(b) Adding new paragraph (f)(iv)(E) to 

read as follows: 

212.301 Solicitation provisions and 

contract clauses for the acquisition of 

commercial items. 

* * * * * 

(E) Use the clause at 252.223–7008, 

Prohibition of Hexavalent Chromium, as 

prescribed at 223.7306. 

* * * * * 

PART 244—SUBCONTRACTING 

POLICIES AND PROCEDURES 

3. Revise section 244.403 to read as 

follows: 

244.403 Contract clause. 

Use the clause at 252.244–7000, 

Subcontracts for Commercial Items and 

Commercial Components (DoD 

Contracts), in solicitations and contracts 

for supplies or services other than 

commercial items that contain any of 

the clauses listed in the clause at 

252.244–7000. 

PART 252—SOLICITATION 

PROVISIONS AND CONTRACT 

CLAUSES 

4. Revise section 252.244–7000 to 

read as follows: 

252.244–7000 Subcontracts for 

Commercial Items and Commercial 

Components (DoD Contracts). 

As prescribed in 244.403, use the 

following clause: 

SUBCONTRACTS FOR COMMERCIAL 

ITEMS AND COMMERCIAL 

COMPONENTS (DOD CONTRACTS) 

(DATE) 

In addition to the clauses listed in 

paragraph (c) of the Subcontracts for 

Commercial Items clause of this contract 

(Federal Acquisition Regulation 52.244–6), 

the Contractor shall include the terms of the 

following clauses, if applicable, in 

subcontracts for commercial items or 

commercial components, awarded at any tier 

under this contract: 

(a) 252.223–7008, Prohibition of 

Hexavalent Chromium, if the subcontract is 

for supplies, maintenance and repair 

services, or construction materials. 

(b) 252.225–7009, Restriction on 

Acquisition of Certain Articles Containing 

Specialty Metals (JAN 2011) (10 U.S.C. 

2533b), if flow down is required in 

accordance with paragraph (e) of DFARS 

clause 252.225–7009. 

(c) 252.225–7039, Contractors Performing 

Private Security Functions (AUG 2011) 

(Section 862 of Pub. L. 110–181, as amended 

by section 853 of Pub. L. 110–417 and 

sections 831 and 832 of Pub. L. 111–383), if 

the subcontract will be performed in areas of 

contingency operations, complex 

contingency operations, or other military 

operations or exercises designated by the 

Combatant Commander. 

(d) 252.227–7015, Technical Data— 

Commercial Items (SEP 2011), if applicable 

(see 227.7102–4(a)), if flow down is required 

in accordance with paragraph (e) of DFARS 

clause 252.227–7015. 

(e) 252.227–7037, Validation of Restrictive 

Markings on Technical Data (SEP 2011), if 

applicable (see 227.7102–4(c)), if the 

subcontract or supplier at any tier requires 

the delivery of technical data. 

(f) 252.236–7013 Requirement for 

Competition Opportunity for American Steel 

Producers, Fabricators, and Manufacturers 

(JAN 2009) (Pub. L. 110–329, Division E, 

Section 108), if the subcontract involves the 

acquisition of steel as a construction 

material. 

(g) 252.237–7010 Prohibition on 

Interrogation of Detainees by Contractor 

Personnel (NOV 2010) (Section 1038 of Pub. 

L. 111–84), if the subcontract may require 

subcontractor personnel to interact with 

detainees in the course of their duties. 

(h) 252.237–7019 Training for Contractor 

Personnel Interacting with Detainees (SEP 

2006) (Section 1092 of Pub. L. 108–375), if 

the subcontract may require subcontractor 

personnel to interact with detainees in the 

course of their duties. 

(i) 252.246–7003 Notification of Potential 

Safety Issues (JAN 2007), if flow down is 

required in accordance with paragraph (f) of 

DFARS clause 252.246–7003. 

(j) 252.247–7023 Transportation of 

Supplies by Sea (MAY 2002) (10 U.S.C. 

2631), if flow down is required in accordance 


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71928 Federal Register / Vol. 76, No. 224 / Monday, November 21, 2011 / Proposed Rules 

with paragraph (h) of DFARS clause 252.247– 

7023. 

(k) 252.247–7024 Notification of 

Transportation of Supplies by Sea (MAR 

2000) (10 U.S.C. 2631), if flow down is 

required in accordance with paragraph (b) of 

DFARS clause 252.247–7024. 

(End of clause) 

[FR Doc. 2011–29861 Filed 11–18–11; 8:45 am] 

BILLING CODE 5001–06–P 

DEPARTMENT OF DEFENSE 

Defense Acquisition Regulations 

System 

48 CFR Part 232 and 252 

RIN 0750–AH40 

Defense Federal Acquisition 

Regulation Supplement; Updates to 

Wide Area WorkFlow (DFARS Case 

2011–D027) 

AGENCY: Defense Acquisition 

Regulations System, Department of 

Defense (DoD). 

ACTION: Proposed rule. 

SUMMARY: DoD is proposing to amend 

the Defense Federal Acquisition 

Regulation Supplement to update 

policies on the submission of payment 

requests and receiving reports in 

electronic format. 

DATES: Comments on the proposed rule 

should be submitted in writing to the 

address shown below on or before 

January 20, 2012, to be considered in 

the formation of the final rule. 

ADDRESSES: Submit comments 

identified by DFARS case 2011–D027, 

using any of the following methods: 

Æ Regulations.gov: http:// 

www.regulations.gov. Submit comments 

via the Federal eRulemaking portal by 

inputting ‘‘DFARS Case 2011–D027’’ 

under the heading ‘‘Enter keyword or 

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

link ‘‘Submit a Comment’’ that 

corresponds with ‘‘DFARS Case 2011– 

D027.’’ Follow the instructions provided 

at the ‘‘Submit a Comment’’ screen. 

Please include your name, company 

name (if any), and ‘‘DFARS Case 2011– 

D027’’ on your attached document. 

Æ Email: dfars@osd.mil. Include 

DFARS Case 2011–D027 in the subject 

line of the message. 

Æ Fax: (703) 602–0350. 

Æ 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 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. 

SUPPLEMENTARY INFORMATION: 

I. Background 

DoD proposes to update policy and 

procedures in the Defense Federal 

Acquisition Regulation Supplement 

(DFARS) for electronic submission of 

payment requests and receiving reports 

through Wide Area WorkFlow (WAWF) 

and TRICARE Encounter Data System 

(TEDS). WAWF, which electronically 

interfaces with the primary DoD 

payment systems, is the accepted DoD 

system for generating invoices and 

receiving reports. TEDS is an accepted 

system for processing payment requests 

for rendered TRICARE health care 

services. 

The capabilities of WAWF have 

expanded to enable use in a wider 

variety of environments by a wider 

variety of users. As such, this rule is 

intended to expand the use of WAWF 

for submission of payment requests and 

receiving reports and to standardize 

processes and instructions on the use of 

WAWF by accomplishing the following 

DFARS revisions: 

• Update 232.7002(a)(1) to clarify that 

only payment requests (not receiving 

reports) for contracts paid for with the 

Governmentwide commercial purchase 

card are excepted from using WAWF; 

• Remove the exception to the use of 

WAWF at 232.7002(a)(2) for contracts 

awarded to foreign vendors; 

• Update 232.7002(a)(3) to specify a 

WAWF exception for contracts awarded 

by contracting officers for contingency, 

humanitarian, peacekeeping, or 

emergency response operations only 

when the use of WAWF is not feasible 

by the contractor; 

• Update 232.7002(a)(4) to specify a 

WAWF exception for purchases made 

for an unusual or compelling need as 

defined in Federal Acquisition 

Regulation (FAR) 6.302–2 only when 

the use of WAWF is not feasible; 

• Remove, at 232.7003(b), the 

contracting officer’s authority to allow a 

contractor to submit a payment request 

and receiving report using an electronic 

form other than WAWF, unless a 

written determination is provided to the 

Senior Procurement Executive; 

• Add at 232.7003(c), the use of TEDS 

for submitting and processing TRICARE 

payment requests and receiving reports 

for rendered health care services; and 

• Provide a standard WAWF payment 

clause. 

II. 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 a significant 

regulatory action and, therefore, was 

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. 

III. Regulatory Flexibility Act 

DoD expects that this proposed rule 

may 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. 

Therefore, an Initial Regulatory 

Flexibility Analysis has been prepared 

and is summarized as follows: 

The rule incorporates WAWF’s new 

capability of capturing receiving reports 

for contracts paid for with a 

Governmentwide commercial purchase 

card and clarifies exceptions to the use 

of WAWF only when it is not feasible. 

The rule also consolidates and 

standardizes instructions to contractors 

on how to use the WAWF application. 

Furthermore, it eliminates locally 

defined methods that are in some cases 

causing confusion and inefficiencies, 

and it incorporates the use of TEDS for 

medical services requiring Health 

Insurance Portability and 

Accountability Act data not handled by 

WAWF. 

DoD made small business awards to 

60,000 companies in Fiscal Year 2010. 

With the exception of less than 4,000 

companies that only received awards 

paid with a purchase card, this will be 

a simplification of procedures by 

allowing contractors to use the same 

process and systems for all DoD 

shipments. 

This rule does not impose any new 

reporting or recordkeeping 

requirements. 

The rule does not duplicate, overlap, 

or conflict with any other Federal rules. 

There are no significant alternatives to 

accomplish the stated objectives of this 

rule. 


wreier-aviles on DSK3TPTVN1PROD with PROPOSALS