Federal Register / Vol. 79, No. 121 / Tuesday, June 24, 2014 / Proposed Rules 35715 

Operational Tracker (SPOT) System, 

which is approved through August 31, 

2016, for 150,000 burden hours. 

List of Subjects in 48 CFR Parts 212, 

225, and 252 

Government procurement. 

Amy G. Williams, 

Deputy, Defense Acquisition Regulations 

System. 

Therefore, 48 CFR parts 212, 225, and 

252 are proposed to be amended as 

follows: 

■ 1. The authority citation for parts 212, 

225, 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. In section 212.301, redesignate 

paragraphs (f)(xlv) through (lxx) as 

paragraphs (f)(xlvi) through (lxxi) and 

add a new paragraph (f)(xlv) to read as 

follows: 

212.301 Solicitation provisions and 

contract clauses for the acquisition of 

commercial items. 

(f) * * * 

(xlv) Use the clause at 252.225–7039, 

Defense Contractors Performing Private 

Security Functions Outside the United 

States, as prescribed in 225.302–6, to 

comply with section 2 of Pub. L. 110– 

181, as amended. 

* * * * * 

PART 225—FOREIGN ACQUISITION 

■ 3. Add sections 225.302, 225.302–2, 

and 225.302–6 to subpart 225.3 to read 

as follows: 

225.302 Contractors performing private 

security functions outside the United 

States. 

225.302–2 Definitions. 

Peace operation, as used in this 

section, means a military mission to 

contain conflict, redress the peace, and 

shape the environment to support 

reconciliation and rebuilding and 

facilitate the transition to legitimate 

governance. 

225.302–6 Contract clause. 

Use the clause at 252.225–7039, 

Defense Contractors Performing Private 

Security Functions Outside the United 

States, in solicitations and contracts, 

including solicitations and contracts 

using FAR part 12 procedures for the 

acquisition of commercial items, when 

private security functions are to be 

performed outside the United States 

in— 

(1) Contingency operations; 

(2) Combat operations, as designated 

by the Secretary of Defense; 

(3) Other significant military 

operations (as defined in 32 CFR part 

159), designated by the Secretary of 

Defense, and only upon agreement of 

the Secretary of Defense and the 

Secretary of State; 

(4) Humanitarian or peace operations; 

or 

(5) Other military operations or 

military exercises, when designated by 

the Combatant Commander. 

PART 252—SOLICITATION 

PROVISIONS AND CONTRACT 

CLAUSES 

■ 4. Add section 252.225–7039 to read 

as follows: 

252.225–7039 Defense Contractors 

Performing Private Security Functions 

Outside the United States. 

As prescribed in 225.302–6, insert the 

following clause: 

DEFENSE CONTRACTORS PERFORMING 

PRIVATE SECURITY FUNCTIONS 

OUTSIDE THE UNITED STATES (DATE) 

(a) Definition. Peace operation, as used in 

this clause, means a military mission to 

contain conflict, redress the peace, and shape 

the environment to support reconciliation 

and rebuilding and facilitate the transition to 

legitimate governance. 

(b) Requirements. The Contractor shall— 

(1) Register in the Synchronized 

Predeployment and Operational Tracker 

(SPOT)— 

(i) Weapons to be carried by or available 

to be used by personnel performing private 

security functions; and 

(ii) Armored vehicles, helicopters, and 

other vehicles operated by personnel 

performing private security functions; and 

(2) Comply with ANSI/ASIS PSC.1–2012, 

American National Standard, Management 

System for Quality of Private Security 

Company Operations—Requirements with 

Guidance (located at www.acq.osd.mil/log/

PS/p_vault/item_1997-PSC_1_STD.PDF). 

(c) Subcontracts. The Contractor shall 

include the substance of this clause, 

including paragraph (b) of this clause, in 

subcontracts, including subcontracts for 

commercial items, when private security 

functions will be performed outside the 

United States in areas of— 

(1) Contingency operations; 

(2) Combat operations, as designated by the 

Secretary of Defense; 

(3) Other significant military operations (as 

defined in 32 CFR part 159), designated by 

the Secretary of Defense upon agreement of 

the Secretary of State; 

(4) Humanitarian or peace operations; or 

(5) Other military operations or military 

exercises, when designated by the Combatant 

Commander. 

(End of clause) 

[FR Doc. 2014–14594 Filed 6–23–14; 8:45 am] 

BILLING CODE 5001–06–P 

DEPARTMENT OF DEFENSE 

Defense Acquisition Regulations 

System 

48 CFR Parts 229 and 252 

RIN 0750–AI26 

Defense Federal Acquisition 

Regulation Supplement: Taxes— 

Foreign Contracts in Afghanistan 

(DFARS Case 2014–D003) 

AGENCY: Defense Acquisition 

Regulations System, Department of 

Defense (DoD). 

ACTION: Proposed rule. 

SUMMARY: DoD is proposing to amend 

the Defense Federal Acquisition 

Regulation Supplement (DFARS) to 

notify contractors of requirements 

relating to Afghan taxes. 

DATES: Comment Date: Comments on 

the proposed rule should be submitted 

in writing to the address shown below 

on or before August 25, 2014, to be 

considered in the formation of a final 

rule. 

ADDRESSES: Submit comments 

identified by DFARS Case 2014–D003, 

using any of the following methods: 

Æ Regulations.gov: http://

www.regulations.gov. Submit comments 

via the Federal eRulemaking portal by 

entering ‘‘DFARS Case 2014–D003’’ 

under the heading ‘‘Enter keyword or 

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

link ‘‘Submit a Comment’’ that 

corresponds with ‘‘DFARS Case 2014– 

D003.’’ Follow the instructions provided 

at the ‘‘Submit a Comment’’ screen. 

Please include your name, company 

name (if any), and ‘‘DFARS Case 2014– 

D003’’ on your attached document. 

Æ Email: osd.dfars@mail.mil. Include 

DFARS Case 2014–D003 in the subject 

line of the message. 

Æ Fax: 571–372–6094. 

Æ Mail: Defense Acquisition 

Regulations System, Attn: Ms. Jennifer 

Hawes, OUSD(AT&L)DPAP/DARS, 

Room 3B941, 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 http://

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. 

Jennifer Hawes, telephone 571–372– 

6115. 

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35716 Federal Register / Vol. 79, No. 121 / Tuesday, June 24, 2014 / Proposed Rules 

SUPPLEMENTARY INFORMATION: 

I. Background 

DoD is proposing to revise the DFARS 

to add two new clauses to notify 

contractors of requirements relating to 

Afghan taxes for contracts performed in 

Afghanistan. 

II. Discussion and Analysis 

Agreements established between the 

United States (U.S.) Forces and the 

Afghanistan government exempt U.S. 

contractors from paying liability for 

Afghan taxes. The two clauses included 

in the proposed rule, which implement 

the tax exemptions, are as follows: 

• DFARS 252.229–70XX, TaxesForeign Contracts in Afghanistan, would 

be required to be included in all 

solicitations and contracts with 

performance in Afghanistan, unless the 

clause at 252.229–70YY is used. The 

Agreement regarding the U.S. Forces 

and Afghanistan also exempts the 

acquisition, importation, exportation, 

and use of articles and services in the 

Republic of Afghanistan by or on behalf 

of the Government of the United States 

of America in implementing this 

agreement from any taxes, customs, 

duties, or similar charges in 

Afghanistan, and contractors shall 

exclude any Afghan taxes, customs, 

duties, or similar charges from contract 

prices. 

• DFARS 252.229–70YY, TaxesForeign Contracts in Afghanistan 

(Military Technical Agreement), would 

be required to be included in all 

solicitations and contracts with 

performance in Afghanistan awarded on 

behalf of NATO if approval from the 

Director, Defense Procurement and 

Acquisition Policy, Office of the Under 

Secretary of Defense for Acquisition, 

Technology, and Logistics, is obtained 

prior to each use. 

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 

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., because this rule applies to 

requirements for taxes to be paid under 

contracts that are performed in 

Afghanistan. However, an initial 

regulatory flexibility analysis has been 

performed and is summarized as 

follows. 

This rule proposes to amend the 

DFARS by incorporating DFARS clause 

252.229–70XX, Taxes-Foreign Contracts 

in Afghanistan, to be used in all 

solicitations and contracts with 

performance in Afghanistan, unless 

DFARS clause 252.229–70YY is used. 

This rule also includes DFARS clause 

252.229–70YY, Taxes-Foreign Contracts 

in Afghanistan (Military Technical 

Agreement), to be used in all 

solicitations and contracts with 

performance in Afghanistan awarded on 

behalf of NATO, which are governed by 

the Military Technical Agreement, and 

upon approval of the Director, Defense 

Procurement and Acquisition Policy, 

Office of the Under Secretary of Defense 

for Acquisition, Technology, and 

Logistics. 

DoD does not expect this proposed 

rule to have a significant economic 

impact on a substantial number of small 

entities because this rule addresses 

requirements for taxes under contracts 

performed in Afghanistan. The 

proposed rule does not duplicate, 

overlap, or conflict with any other 

Federal rules. 

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 2014–D003), in 

correspondence. 

V. Paperwork Reduction Act 

The rule does not contain 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 Parts 229 and 

252 

Government procurement. 

Amy G. Williams, 

Deputy, Defense Acquisition Regulations 

System. 

Therefore, 48 CFR parts 229 and 252 

are proposed to be amended as follows: 

■ 1. The authority citation for parts 229 

and 252 continues to read as follows: 

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

chapter 1. 

PART 229—TAXES 

■ 2. Amend section 229.402–70 by 

adding paragraphs (k) and (l) to read as 

follows: 

229.402–70 Additional provisions and 

clauses. 

* * * * * 

(k) Use the clause at 252.229–70XX, 

Taxes—Foreign Contracts in 

Afghanistan, in all solicitations and 

contracts with performance in 

Afghanistan, unless the clause at 

252.229–70YY is used. 

(l) Use the clause at 252.229–70YY, 

Taxes—Foreign Contracts in 

Afghanistan (Military Technical 

Agreement), in all solicitations and 

contracts with performance in 

Afghanistan awarded on behalf of 

NATO, which are governed by the 

Military Technical Agreement, if 

approval from the Director, Defense 

Procurement and Acquisition Policy, 

Office of the Under Secretary of Defense 

for Acquisition, Technology, and 

Logistics, has been obtained prior to 

each use. 

PART 252—SOLICITATION 

PROVISIONS AND CONTRACT 

CLAUSES 

■ 3. Add section 252.229–70XX to read 

as follows: 

252.229–70XX Taxes—Foreign Contracts 

in Afghanistan. 

As prescribed in 229.402–70(k), use 

the following clause: 

TAXES—FOREIGN CONTRACTS IN 

AFGHANISTAN (DATE) 

(a) This acquisition is covered by the 

Agreement regarding the Status of United 

States Military and Civilian Personnel of the 

U.S. Department of Defense Present in 

Afghanistan with Cooperative Efforts in 

Response to Terrorism, Humanitarian and 

Civic Assistance, Military Training and 

Exercises, and other Activities, entered into 

between the United States and Afghanistan, 

which was concluded by an exchange of 

diplomatic notes (U.S. Embassy Kabul note 

No. 202, dated September 26, 2002; 

Afghanistan Ministry of Foreign Affairs notes 

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Federal Register / Vol. 79, No. 121 / Tuesday, June 24, 2014 / Proposed Rules 35717 

791 and 93, dated December 12, 2002, and 

May 28, 2003, respectively), and entered into 

force on May 28, 2003. 

(b) The Agreement exempts the 

Government of the United States of America 

and its contractors, subcontractors, and 

contractor personnel from paying any tax or 

similar charge assessed within Afghanistan. 

The Agreement also exempts the acquisition, 

importation, exportation, and use of articles 

and services in the Republic of Afghanistan 

by or on behalf of the Government of the 

United States of America in implementing 

this agreement from any taxes, customs, 

duties, or similar charges in Afghanistan. 

(c) The Contractor shall exclude any 

Afghan taxes, customs, duties, or similar 

charges from the contract price. 

(d) The Agreement does not exempt 

Afghan employees of DoD contractors and 

subcontractors from Afghan tax laws. To the 

extent required by Afghan law, the 

Contractor shall withhold tax from the wages 

of these employees and to remit those 

payments to the appropriate Afghanistan 

taxing authority. These withholdings are an 

individual’s liability, not a tax against the 

Contractor. 

(e) The Contractor shall include the 

substance of this clause, including this 

paragraph (e), in all subcontracts, including 

subcontracts for commercial items. 

(End of clause) 

■ 4. Add section 252.229–70YY to read 

as follows: 

252.229–70YY Taxes—Foreign Contracts 

in Afghanistan (Military Technical 

Agreement). 

As prescribed in 229.402–70(l), use 

the following clause: 

TAXES—FOREIGN CONTRACTS IN 

AFGHANISTAN (MILITARY TECHNICAL 

AGREEMENT) (DATE) 

(a) This acquisition is covered by the 

Military Technical Agreement (MTA) entered 

into between the International Security 

Assistance Forces (ISAF) and Interim 

Administration of Afghanistan in April 2002 

and the 2011 Letter of Interpretation issued 

on March 9, 2011. 

(b) The MTA establishes the basic rules 

and exempts NATO/ISAF and its contractors 

and subcontractors from paying any tax or 

similar charge assessed within Afghanistan. 

The MTA also exempts the acquisition, 

importation, exportation and use of supplies 

and services in Afghanistan from all Afghan 

taxes, fees, duties or other form of revenue 

generation. 

(c) The Contractor shall exclude any 

Afghan taxes, customs duties or similar 

charges from its contract price, except as 

modified in paragraph (d) of this clause. 

(d) The ISAF 2011 Letter of Interpretation 

modified the MTA’s tax exemption effective 

March 21, 2011. 

(1) Local contractors are subject to tax for 

profits earned from NATO/ISAF contracts or 

subcontract and may include that tax in its 

contract price. The goods, materials, and 

supplies acquired and the services provided 

by local contractors for the use of NATO/

ISAF, NATO member states, and non-NATO 

member states participating in the ISAF 

remain exempt from other taxes, duties, sales 

or other taxes, import fees, or fees of any 

kind. The Contractor may include the tax on 

profits in the contract price. 

(2) Afghan citizens employed by NATO/

ISAF contractors and subcontractors are 

subject to Afghan tax laws. To the extent 

required by Afghan law, the Contractor shall 

withhold tax from the wages of these 

employees and to remit those withholdings 

to the Afghanistan Revenue Department. 

These withholdings are an individual’s 

liability, not a tax against the Contractor. 

(e) The Contractor shall include the 

substance of this clause, including this 

paragraph (e), in all subcontracts including 

subcontracts for commercial items. 

(End of clause) 

[FR Doc. 2014–14595 Filed 6–23–14; 8:45 am] 

BILLING CODE 5001–06–P 

DEPARTMENT OF DEFENSE 

Defense Acquisitions Regulations 

System 

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: Proposed rule. 

SUMMARY: DoD is proposing to amend 

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: Comment Date: Comments on 

the proposed rule should be submitted 

in writing to the address shown below 

on or before August 25, 2014, to be 

considered in the formation of a final 

rule. 

ADDRESSES: Submit comments 

identified by DFARS Case 2013–D038 

using any of the following methods: 

Æ Regulations.gov: http://

www.regulations.gov. Submit comments 

via the Federal eRulemaking portal by 

entering ‘‘DFARS Case 2012–D038’’ 

under the heading ‘‘Enter keyword or 

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

link ‘‘Submit a Comment’’ that 

corresponds with ‘‘DFARS Case 2013– 

D038.’’ Follow the instructions provided 

at the ‘‘Submit a Comment’’ screen. 

Please include your name, company 

name (if any), and ‘‘DFARS Case 2012– 

D038’’ on your attached document. 

Æ Email: osd.dfars@mail.mil. Include 

DFARS Case 2013–D038 in the subject 

line of the message. 

Æ Fax: 571–372–6094. 

Æ Mail: Defense Acquisition 

Regulations System, Attn: Ms. Janetta 

Brewer, OUSD(AT&L)DPAP/DARS, 

Room 3B941, 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. 

Janetta Brewer, Defense Acquisition 

Regulations System, 

OUSD(AT&L)DPAP/DARS, Room 

3B941, 3060 Defense Pentagon, 

Washington, DC 20301–3060, 

Telephone 571–372–6104. 

SUPPLEMENTARY INFORMATION: 

I. Background 

This rule proposes to revise DFARS 

235.072, 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 DoDsupported research, development, test, 

and evaluation or training that uses 

vertebrate animals, and the acquisition 

of animals. 

II. Discussion and Analysis 

The rule proposes to prescribe 

inclusion of the clause at DFARS 

252.235–7002 in solicitations and 

contracts involving research, 

development, test, and evaluation or 

training that uses live vertebrate 

animals. Contractors shall acquire and 

care for animals in accordance with the 

pertinent laws of the United States, the 

regulations of the Department of 

Agriculture, DoDI 3216.01, and agency 

implementing regulations. The rule also 

proposes to make contractor facilities 

available for inspection by the 

appropriate officials. It also adds 

DFARS 237.17X to address training that 

uses live vertebrate animals and to 

provide a cross-reference to DFARS 

235.072. 

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 

mstockstill on DSK4VPTVN1PROD with PROPOSALS