Federal Register / Vol. 75, No. 112 / Friday, June 11, 2010 / Proposed Rules 33237 

Federal Communications Commission. 

Marlene H. Dortch, 

Secretary. 

[FR Doc. 2010–14099 Filed 6–10–10; 8:45 am] 

BILLING CODE 6712–01–P 

DEPARTMENT OF DEFENSE 

Defense Acquisition Regulations 

System 

48 CFR Part 242 

Defense Federal Acquisition 

Regulation Supplement; Contractor 

Insurance/Pension Review (DFARS 

Case 2009–D025) 

AGENCY: Defense Acquisition 

Regulations System, Department of 

Defense (DoD). 

ACTION: Proposed rule with request for 

comments. 

SUMMARY: DoD proposes to remove and 

relocate the requirements for conducting 

a Contractor Insurance/Pension Review 

from Procedures, Guidance, and 

Information to the Defense Acquisition 

Regulation Supplement. 

DATES: Comments on the proposed rule 

should be submitted in writing to the 

address shown below on or before 

August 10, 2010, to be considered in the 

formation of the final rule. 

ADDRESSES: You may submit comments, 

identified by DFARS Case 2009–D025, 

using any of the following methods: 

Federal eRulemaking Portal: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments. 

E-mail: dfars@osd.mil. Include 

DFARS Case 2009–D025 in the subject 

line of the message. 

Fax: 703–602–0350. 

Mail: Defense Acquisition Regulations 

System, Attn: Ms. Mary Overstreet, 

OUSD(AT&L)DPAP(DARS), 3060 

Defense Pentagon, Room 3B855, 

Washington, DC 20301–3060. 

Comments received generally will be 

posted without change to http:// 

www.regulations.gov, including any 

personal information provided. 

FOR FURTHER INFORMATION CONTACT: Ms. 

Mary Overstreet, 703–602–0311. 

SUPPLEMENTARY INFORMATION: 

A. Background 

As part of a DFARS Transformation 

effort, Defense Acquisition Regulation 

Supplement (DFARS) Case 2003–D050, 

published at 71 FR 9273, February 23, 

2006, moved requirements for 

Contractor Insurance/Pension Review 

(CIPR) from DFARS 242.7302 to 

Procedures, Guidance, and Information 

(PGI) 242.7302. This DFARS case 

proposes to move requirements for CIPR 

back to the DFARS from the PGI. The 

threshold and requirements for 

conducting a CIPR are DoD-wide policy 

that has a significant effect beyond the 

internal operating procedures of DoD. 

Since conduct of a CIPR impacts 

industry, as contractors are required to 

provide documentation to support the 

reviews, the requirements for CIPR 

should be located in the DFARS. 

B. 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. The proposed rule merely 

relocates the requirements for CIPR from 

the PGI to the DFARS. 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 2009–D025) in 

correspondence. 

C. Paperwork Reduction Act 

The Paperwork Reduction Act (Pub. 

L. 96–511) applies because information 

collection requirements in the proposed 

rule at DFARS subpart 242.73 are 

currently approved under Office of 

Management and Budget Control 

Number 0704–0250. Relocating the 

requirement has no impact on the 

information collection requirement. 

List of Subjects in 48 CFR Part 242 

Government procurement. 

Ynette R. Shelkin, 

Editor, Defense Acquisition Regulations 

System. 

Therefore, DoD proposes to amend 48 

CFR part 242 as follows: 

PART 242—CONTRACT 

ADMINISTRATION AND AUDIT 

SERVICES 

1. The authority citation for 48 CFR 

part 242 continues to read as follows: 

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

chapter 1. 

2. Revise section 242.7302 to read as 

follows: 

242.7302 Requirements. 

(a)(1) An in-depth CIPR as described 

at DFARS 242.7301(a)(1) shall be 

conducted only when— 

(i) A contractor has $50 million of 

qualifying sales to the Government 

during the contractor’s preceding fiscal 

year; and 

(ii) The ACO, with advice from DCMA 

insurance/pension specialists and 

DCAA auditors, determines a CIPR is 

needed based on a risk assessment of 

the contractor’s past experience and 

current vulnerability. 

(2) Qualifying sales are sales for 

which cost or pricing data were required 

under 10 U.S.C. 2306a, as implemented 

in FAR 15.403, or that are contracts 

priced on other than a firm-fixed-price 

or fixed-price with economic price 

adjustment basis. Sales include prime 

contracts, subcontracts, and 

modifications to such contracts and 

subcontracts. 

(b) A special CIPR that concentrates 

on specific areas of a contractor’s 

insurance programs, pension plans, or 

other deferred compensation plans shall 

be performed for a contractor 

(including, but not limited to, a 

contractor meeting the requirements in 

paragraph (a) of this section) when any 

of the following circumstances exists, 

but only if the circumstance(s) may 

result in a material impact on 

Government contract costs: 

(1) Information reveals a deficiency in 

the contractor’s insurance/pension 

program. 

(2) The contractor proposes or 

implements changes in its insurance, 

pension, or deferred compensation 

plans. 

(3) The contractor is involved in a 

merger, acquisition, or divestiture. 

(4) The Government needs to follow 

up on contractor implementation of 

prior CIPR recommendations. 

(c) The DCAA auditor shall use 

relevant findings and recommendations 

of previously performed CIPRs in 

determining the scope of any audits of 

insurance and pension costs. 

(d) When a Government organization 

believes that a review of the contractor’s 

insurance/pension program should be 

performed, that organization should 

provide a recommendation for a review 

to the ACO. If the ACO concurs, the 

review should be performed as part of 

an ACO-initiated special CIPR or as part 

of a CIPR already scheduled for the near 

future. 

[FR Doc. 2010–14120 Filed 6–10–10; 8:45 am] 

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