71560 Federal Register / Vol. 75, No. 226 / Wednesday, November 24, 2010 / Rules and Regulations 

calling (214) 665–7430 or by e-mail at 

peace.michelle@epa.gov. 

SUPPLEMENTARY INFORMATION: Because 

EPA received adverse comments, we are 

withdrawing the direct final exclusion 

for ExxonMobil Refining and Supply 

Company—Beaumont Refinery, 

published on October 1, 2010, 75 FR 

60632. We stated that in the direct final 

rule that if we received adverse 

comment by November 1, 2010, the 

direct final rule would not take effect 

and we would publish a timely 

withdrawal in the Federal Register. We 

subsequently received adverse comment 

on that direct final rule. We will address 

the comments submitted in a 

subsequent final action which will be 

based on the parallel proposed rule also 

published on October 1, 2010, 75 FR 

60689. As stated in the direct final rule 

and the parallel proposed rule, we will 

not institute a second comment period 

on this action. 

Dated: November 16, 2010. 

Bill Luthans, 

Acting Director, Multimedia Planning and 

Permitting Division. 

■ Accordingly, the amendments to the 

rule published on October 1, 2010, 75 

FR 60632 are withdrawn as of 

November 24, 2010 until an action 

making the exclusion final is published. 

[FR Doc. 2010–29630 Filed 11–23–10; 8:45 am] 

BILLING CODE 6560–50–P 

DEPARTMENT OF DEFENSE 

Defense Acquisition Regulations 

System 

48 CFR Parts 215, 234, 242, and 252 

RIN 0750–AG46 

Defense Federal Acquisition 

Regulation Supplement; Cost and 

Software Data Reporting System 

(DFARS Case 2008–D027) 

AGENCY: Defense Acquisition 

Regulations System, Department of 

Defense (DoD). 

ACTION: Final rule. 

SUMMARY: DoD is issuing a final rule to 

amend the Defense Federal Acquisition 

Regulation Supplement (DFARS) to 

address DoD Cost and Software Data 

Reporting system requirements for 

Major Defense Acquisition Programs 

and Major Automated Information 

Systems. 

DATES: Effective Date: November 24, 

2010. 

FOR FURTHER INFORMATION CONTACT: Ms. 

Mary Overstreet, Telephone 703–602– 

0311. 

SUPPLEMENTARY INFORMATION: 

I. Background 

The DoD cost and software data 

reporting (CSDR) system establishes 

requirements for proposals and contract 

performance for major defense 

acquisition programs (as defined in 10 

U.S.C. 2430) and major automated 

information systems (as defined in 10 

U.S.C. 2445a). 

During the proposal process, offerors 

are required to— 

• Describe the process to be used to 

satisfy the requirements of the CSDR 

Manual (DoD 5000.04–M–1) and the 

Government-approved CSDR plan; and 

• Submit certain cost information 

with the pricing proposal. 

During contract performance, the 

contractor is required to— 

• Use a documented CSDR process 

for reporting; 

• Use the Government-approved 

contract CSDR plan as the basis for 

reporting; and 

• Require subcontractors to comply 

with the cost and software data 

reporting requirements. 

DoD published a proposed rule at 75 

FR 25165 on May 7, 2010. The public 

comment period closed July 6, 2010. 

Two respondents submitted comments 

that are grouped under four comment 

categories. Based on public comments, 

changes were made to the proposed 

rule. Major changes in the final rule are 

as follows: 

• Explaining that the two principal 

components of the CSDR system are the 

contractor cost data reporting (CCDR) 

and the software resources data 

reporting (SRDR) (DFARS 234.7100(a)). 

• Clarifying the solicitation and 

contract clause prescriptions (DFARS 

234.7101). 

• Including the approval authority for 

applying the CSDR requirements at 

lower dollar thresholds (DFARS 

234.7101(b)(2)). 

• Removing the requirement to 

submit DD Form 1921–2, Progress Curve 

Report, with the offeror’s pricing 

proposal (DFARS 252.234–7003(b)(6)). 

• Removing the reference to DD Form 

1921–3, Contractor Business Data 

Report (DFARS 242.503–2(b) and 

252.234–7004, Cost and Software Data 

Reporting System). 

• Restructuring the solicitation 

provision to clarify proposal submission 

requirements (DFARS 252.234–7003). 

• Providing an Alternate I to the 

solicitation provision and to the clause 

to accommodate CSDR requirements at 

lower dollar thresholds (DFARS 

252.234–7003 and 252.234–7004). 

II. Discussion and Analysis 

The following paragraphs address the 

four categories of comments and DoD 

responses: 

1. DD 1921–2, Progress Curve Report 

Comment: A respondent noted that 

DD Form 1921–2 Progress Curve Report, 

required to be submitted by offerors, in 

accordance with paragraph (a)(3) of 

DFARS 252.234–70XX in the proposed 

rule, is designed to collect unit/lot cost 

data and is, therefore, not applicable to 

contracts that do not procure units or 

lots. The respondent recommended 

revising the solicitation requirements. 

Response: DoD agrees that the DD 

1921–2 is not required to be submitted 

with the contractor’s pricing proposal 

and has revised DFARS provision 

252.234–7003 in the final rule 

accordingly. 

2. The DD 1921–3, Contractor Business 

Data Report 

a. Basis for Reporting 

Comment: A respondent noted that 

paragraph (a)(3) of DFARS 252.234– 

70YY in the proposed rule directs ‘‘the 

Contractor (to) use DD Form 1921–3, 

Contractor Business Data Report, as the 

basis for reporting in accordance with 

the required CSDR data item 

descriptions (DIDs).’’ DD Form 1921–3, 

Contractor Business Data Report, is not 

a basis for reporting, but is a report to 

be prepared and submitted by the 

contractor in accordance with DID DI– 

FNCL–81765A. The respondent 

suggested removing the reference to DD 

Form 1921–3. 

Response: DoD agrees and deleted the 

requirement for DD Form 1921–3, 

Contractor Business Data Report, from 

clause 252.234–7004 in the final rule. 

b. Exempt Below $50 Million 

Comment: One respondent asked if a 

subcontractor is exempt from reporting 

if it incurs less than $50 million on a 

program, or if the reporting 

requirements apply to all levels of 

subcontractors regardless of level of 

participation in the program. 

Response: DoD revised the solicitation 

provision and contract clause to clarify 

applicability to subcontracts. 

c. Specific Guidance Is Necessary 

Comment: One respondent had 

numerous questions concerning the 

completion of DD Form 1921–3. 

Response: Questions relating to DD 

Form 1921–3 preparation guidance are 

outside the scope of this rule and 

should be referred directly to the 


jlentini on DSKJ8SOYB1PROD with RULES
Federal Register / Vol. 75, No. 226 / Wednesday, November 24, 2010 / Rules and Regulations 71561 

Defense Cost and Resource Center. 

References to DD Form 1921–3 have 

been removed from this final rule. 

3. Solicitation Provision and Contract 

Clause Prescriptions 

Comment: A respondent noted that 

‘‘Paragraphs (a) and (b) of 234.7101, 

Solicitation provision and contract 

clause, appear to be intended to 

distinguish between solicitation 

instructions and contract requirements, 

as well as Contractor Cost Data 

Reporting (CCDR) thresholds (> $50M) 

versus Software Resources Data 

Reporting (SRDR) thresholds (> $20M).’’ 

Accordingly, the respondent suggested 

revising the paragraphs to clarify the 

distinctions. 

Response: DoD agrees and has revised 

the cited paragraphs accordingly. 

4. Contractor Cost and Data Reporting 

Application 

Comment: One respondent asked 

whether cost allocations are going to be 

considered valid contract costs and if 

this supersedes FAR 31.201. The 

respondent also asked what allowance 

is provided for contractors with 

accounting software that does not 

accommodate the additional data fields 

necessary to map the offeror’s 

accounting system to the CCDR data 

item descriptions. 

Response: DoD notes that the 5000 

series regulations express a strong 

preference for actual cost data. 

However, the use of cost allocations is 

not prohibited; clause 252.234–7003 

asks for actual cost data to be used ‘‘to 

the maximum extent possible’’ 

(emphasis added). On the second point, 

DoD notes that the required mapping 

does not necessitate unique software 

applications. DoD expects its 

contractors to use standard and readily 

available electronic software 

applications such as electronic 

spreadsheets (e.g., MS-Excel®) or word 

processing formats (e.g., MS-Word®). 

III. Executive Order 12866 

This is not a significant regulatory 

action and, therefore, was not subject to 

review under section 6(b) of Executive 

Order 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 has prepared a final regulatory 

flexibility analysis consistent with 5 

U.S.C. 604. A copy of the analysis may 

be obtained from the individual 

specified herein. The analysis is 

summarized as follows: 

The objective of the rule is to set forth 

cost and software data reporting (CSDR) 

system reporting requirements that are 

essential for DoD to estimate the cost of 

current and future weapon systems. The 

data are also very useful in performing 

contract price analysis, comparing 

prices of similar systems, and for 

capturing contractor-provided cost 

estimates in standard formats to 

facilitate comparison across several 

contractors. 

The rule will apply to DoD major 

defense acquisition program (MDAP) 

and major automated information 

system (MAIS) contractors. Due to the 

magnitude of these major programs, 

most small businesses are not MDAP or 

MAIS contractors. DoD solicited 

comments from small entities and other 

interested parties (proposed rule at 75 

FR 25165). No comments were received 

from small entities on the impact of this 

rule and none of the comments was in 

response to the initial regulatory 

flexibility analysis. Therefore, there is 

no change to the rule in this regard. 

This final rule sets forth existing DoD 

CSDR requirements for weapon system 

programs for proposal submission and 

contract performance. 

During the proposal process, in 

response to solicitations, offerors are 

required to— 

• Describe the standard CSDR process 

to be used to satisfy the requirements of 

the CSDR Manual, DoD 5000.04–M–1, 

and the Government approved CSDR 

plan, DD Form 2794, and the related 

Resource Distribution Table (RDT); 

• Provide comments on the adequacy 

of the CSDR contract plan, and the 

related RDT contained in the 

solicitation; and, 

• Submit with their pricing proposal: 

DD Form 1921, Cost Data Summary 

Report, and DD Form 1921–1, 

Functional Cost-Hour Report. 

During contract performance, the 

contractor will be required to— 

• Utilize a documented CSDR process 

that satisfies the guidelines contained in 

the DoD 5000.04–M–1, CSDR Manual; 

• Use management procedures that 

provide for generation of timely and 

reliable information for the two 

principal components of the CSDR 

system: Contractor cost data reports and 

software resources data reports; 

• Use the Government-approved 

contract CSDR plan, DD Form 2794, 

with the related RDT; and 

• Require subcontractors, or 

subcontracted effort if subcontractors 

have not been selected, to comply with 

the CSDR requirements. 

This final rule is not expected 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., as 

most MDAP and MAIS contractors are 

large businesses. For reporting, 

contractors are expected to use standard 

and readily available electronic software 

applications such as electronic 

spreadsheets (e.g., MS-Excel®) or word 

processing formats (e.g., MS-Word®) to 

show the necessary mapping from their 

accounting systems into the standard 

CCDR formats. 

V. Paperwork Reduction Act 

The information collection 

requirements associated with this rule 

were approved by the Office of 

Management and Budget under 

Clearance Number 0704–0188, 

Acquisition Management Systems and 

Data Requirements Control List. The 

revisions in the final rule will not 

change the burden hours approved 

under Clearance Number 0704–0188. 

List of Subjects in 48 CFR Parts 215, 

234, 242, and 252 

Government procurement. 

Ynette R. Shelkin, 

Editor, Defense Acquisition Regulations 

System. 

■ Therefore, 48 CFR parts 215, 234, 242, 

and 252 are amended as follows: 

■ 1. The authority citation for 48 CFR 

parts 215, 234, 242, and 252 continues 

to read as follows: 

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

chapter 1. 

PART 215—CONTRACTING BY 

NEGOTIATION 

215.403–5 [Removed] 

■ 2. Remove section 215.403–5. 

PART 234—MAJOR SYSTEM 

ACQUISITION 

■ 3. Subpart 234.71 is added to read as 

follows: 

Subpart 234.71—Cost and Software Data 

Reporting 

Sec. 

234.7100 Policy. 

234.7101 Solicitation provision and 

contract clause. 

Subpart 234.71—Cost and Software 

Data Reporting 

234.7100 Policy. 

(a) The cost and software data 

reporting (CSDR) requirement is 

mandatory for major defense acquisition 

programs (as defined in 10 U.S.C. 2430), 

and major automated information 

system programs (as defined in 10 

U.S.C. 2445a) as specified in DoDI 


jlentini on DSKJ8SOYB1PROD with RULES
71562 Federal Register / Vol. 75, No. 226 / Wednesday, November 24, 2010 / Rules and Regulations 

5000.02, Operation of the Defense 

Acquisition System and the DoD 

5000.04–M–1, CSDR Manual. The CSDR 

system is applied in accordance with 

the reporting requirements established 

in DoDI 5000.02. The two principal 

components of the CSDR system are 

contractor cost data reporting and 

software resources data reporting. 

(b) Prior to contract award, 

contracting officers shall consult with 

the Defense Cost and Resource Center to 

determine that the offeror selected for 

award has proposed a standard CSDR 

system, as described in the offeror’s 

proposal in response to the provision at 

252.234–7003, that is in compliance 

with DoDI 5000.02, Operation of the 

Defense Acquisition System, and the 

DoD 5000.04–M–1, CSDR Manual. 

(c) Contact information for the 

Defense Cost and Resource Center and 

the Deputy Director, Cost Assessment, is 

located at PGI 234.7100. 

234.7101 Solicitation provision and 

contract clause. 

(a)(1) Use the provision at 252.234– 

7003, Notice of Cost and Software Data 

Reporting System, in all solicitations 

that include the clause at 252.234–7004, 

Cost and Software Data Reporting. 

(2) Use the provision with its 

Alternate I when the clause at 252.234– 

7004, Cost and Software Data Reporting, 

is used with its Alternate I. 

(b)(1) Use the clause at 252.234–7004, 

Cost and Software Data Reporting 

System, in all solicitations and contracts 

for major defense acquisition programs 

and major automated information 

system programs that exceed $50 

million. 

(2) Use the clause with its Alternate 

I in solicitations and contracts for major 

defense acquisition programs and major 

automated information system programs 

with a value equal to or greater than $20 

million but less than or equal to $50 

million, when so directed by the 

program manager with the approval of 

the OSD Deputy Director, Cost 

Assessment. 

PART 242—CONTRACT 

ADMINISTRATION AND AUDIT 

SERVICES 

■ 4. Designate the current text of section 

242.503–2 as paragraph (a) and add new 

paragraph (b) to read as follows: 

242.503–2 Postaward conference 

procedure. 

* * * * * 

(b) For contracts that include the 

clause at 252.234–7004, Cost and 

Software Data Reporting, postaward 

conferences shall include a discussion 

of the contractor’s standard cost and 

software data reporting (CSDR) process 

that satisfies the guidelines contained in 

the DoD 5000.04–M–1, CSDR Manual, 

and the requirements in the 

Government-approved CSDR plan for 

the contract, DD Form 2794, and related 

Resource Distribution Table. 

PART 252—SOLICITATION 

PROVISIONS AND CONTRACT 

CLAUSES 

■ 5. Add section 252.234–7003 to read 

as follows: 

252.234–7003 Notice of Cost and Software 

Data Reporting System. (NOV 2010) 

As prescribed in 234–7101(a)(1), use 

the following provision: 

NOTICE OF COST AND SOFTWARE 

DATA REPORTING SYSTEM (NOV 

2010) 

(a) This solicitation includes— 

(1) The Government-approved cost and 

software data reporting (CSDR) plan for the 

contract, DD Form 2794; and 

(2) The related Resource Distribution 

Table. 

(b) As part of its proposal, the offeror 

shall— 

(1) Describe the process to be used to 

satisfy the requirements of the DoD 5000.04– 

M–1, CSDR Manual, and the Governmentapproved CSDR plan for the proposed 

contract; 

(2) Demonstrate how contractor cost and 

data reporting (CCDR) will be based, to the 

maximum extent possible, upon actual cost 

transactions and not cost allocations; 

(3) Demonstrate how the data from its 

accounting system will be mapped into the 

standard reporting categories required in the 

CCDR data item descriptions; 

(4) Describe how recurring and 

nonrecurring costs will be segregated; 

(5) Provide comments on the adequacy of 

the CSDR contract plan and related Resource 

Distribution Table; and 

(6) Submit the DD Form 1921, Cost Data 

Summary Report, and DD Form 1921–1, 

Functional Cost-Hour Report, with its pricing 

proposal. 

(c) CSDR reporting will be required for 

subcontractors at any tier with a subcontract 

that exceeds $50 million. The offeror shall 

identify, by providing comments on the 

Resource Distribution Table, the 

subcontractors, or, if the subcontractors have 

not been selected, the subcontracted effort in 

this category. 

(End of provision) 

Alternate I (NOV 2010). As prescribed 

in 234.7101(a)(2), substitute the 

following paragraph (c) for paragraph (c) 

of the basic provision: 

(c) CSDR reporting will be required for 

subcontractors for selected subcontracts 

identified in the CSDR contract plan as 

requiring such reporting. The offeror shall 

identify, by providing comments on the 

Resource Distribution Table, the 

subcontractors, or, if the subcontractors have 

not been selected, the subcontracted effort. 

■ 6. Add section 252.234–7004 to read 

as follows: 

252.234–7004 Cost and Software Data 

Reporting System. (NOV 2010) 

As prescribed in 234.7101(b)(1), use 

the following clause: 

COST AND SOFTWARE DATA 

REPORTING SYSTEM (NOV 2010) 

(a) In the performance of this contract, the 

Contractor shall use— 

(1) A documented standard cost and 

software data reporting (CSDR) process that 

satisfies the guidelines contained in the DoD 

5000.04–M–1, CSDR Manual; 

(2) Management procedures that provide 

for generation of timely and reliable 

information for the contractor cost data 

reports (CCDRs) and software resources data 

reports (SRDRs) required by the CCDR and 

SRDR data items of this contract; and 

(3) The Government-approved CSDR plan 

for this contract, DD Form 2794, and the 

related Resource Distribution Table as the 

basis for reporting in accordance with the 

required CSDR data item descriptions. 

(b) The Contractor shall require CSDR 

reporting from subcontractors at any tier with 

a subcontract that exceeds $50 million. If, for 

subcontracts that exceed $50 million, the 

Contractor changes subcontractors or makes 

new subcontract awards, the Contractor shall 

notify the Government. 

(End of clause) 

Alternate I (NOV 2010). As prescribed 

in 234.7101(b)(2), substitute the 

following paragraph (b) for paragraph 

(b) of the basic clause: 

(b) The Contractor shall require CSDR 

reporting from selected subcontractors 

identified in the CSDR contract plan as 

requiring such reporting. If the Contractor 

changes subcontractors or makes new awards 

for selected subcontract effort, the Contractor 

shall notify the Government. 

[FR Doc. 2010–29496 Filed 11–23–10; 8:45 am] 

BILLING CODE 5001–08–P 

DEPARTMENT OF DEFENSE 

Defense Acquisition Regulations 

System 

48 CFR Parts 217, 234, and 235 

RIN 0750–AG76 

Defense Federal Acquisition 

Regulation Supplement; Contract 

Authority for Advanced Component 

Development or Prototype Units 

(DFARS Case 2009–D034) 

AGENCY: Defense Acquisition 

Regulations System, Department of 

Defense (DoD). 

ACTION: Confirmation of interim final 

rule. 


jlentini on DSKJ8SOYB1PROD with RULES