Federal Register / Vol. 79, No. 198 / Tuesday, October 14, 2014 / Rules and Regulations 61579 

the Port (COTP) Pittsburgh or a 

designated representative. 

DATES: The regulations in 33 CFR 

165.801 will be enforced with actual 

notice on October 20, November 2, and 

December 28, 2014 from 7:30 p.m. until 

8:50 p.m. 

FOR FURTHER INFORMATION CONTACT: If 

you have questions on this notice of 

enforcement, call or email Ariana 

Mohnke, Marine Safety Unit Pittsburgh, 

U.S. Coast Guard, at telephone (412) 

644–5808, email Ariana.L.Mohnke@

uscg.mil. 

SUPPLEMENTARY INFORMATION: The Coast 

Guard will enforce the Safety Zone for 

the annual Pittsburgh Steeler/Steelers 

Fireworks listed in 33 CFR 165.801 

Table 1, Entry No. 54; Sector Ohio 

Valley on October 20th, November 2nd, 

and December 28th, 2014 from 7:30 p.m. 

until 8:50 p.m. 

Under the provisions of 33 CFR 

165.801, entry into the safety zone listed 

in Table 1, Entry No. 54; Sector Ohio 

Valley, is prohibited unless authorized 

by the COTP or a designated 

representative. Persons or vessels 

desiring to enter into or passage through 

the safety zone must request permission 

from the COTP Pittsburgh or a 

designated representative. If permission 

is granted, all persons and vessels shall 

comply with the instructions of the 

COTP Pittsburgh or designated 

representative. 

This notice is issued under authority 

of 5 U.S.C. 552(a); 33 U.S.C. 1231; 46 

U.S.C. Chapter 701, 3306, 3703; 50 

U.S.C. 191, 195; 33 CFR 1.05–1, 6.04–1, 

6.04–6, and 160.5; Public Law 107–295, 

116 Stat. 2064; Department of Homeland 

Security Delegation No. 0170.1. In 

addition to this notice in the Federal 

Register, the Coast Guard will provide 

the maritime community with advance 

notification of this enforcement period 

via Local Notice to Mariners and 

updates via Marine Information 

Broadcasts. 

If the COTP Pittsburgh or designated 

representative determines that the safety 

zone need not be enforced for the full 

duration stated in this notice of 

enforcement, he or she may use a 

Broadcast Notice to Mariners to grant 

general permission to enter the 

regulated area. 

Dated: September 4, 2014. 

L.N. Weaver, 

Commander, U.S. Coast Guard, Captain of 

the Port, Pittsburgh. 

[FR Doc. 2014–24429 Filed 10–10–14; 8:45 am] 

BILLING CODE 9110–04–P 

DEPARTMENT OF DEFENSE 

Defense Acquisition Regulation 

System 

48 CFR Parts 205, 206, 215, 219, 226, 

232, 235, 252, and Appendix I to 

Chapter 2 

RIN 0750–AH45 

Defense Acquisition Regulation 

Supplement: Deletion of Text 

Implementing 10 U.S.C. 2323 (DFARS 

Case 2011–D038) 

AGENCY: Defense Acquisition 

Regulations System, Department of 

Defense (DoD). 

ACTION: Interim rule. 

SUMMARY: DoD is issuing an interim rule 

amending the Defense Federal 

Acquisition Regulation Supplement 

(DFARS) to remove language based on 

10 U.S.C. 2323. This action is necessary 

because the statute has expired. 

DATES: Effective October 14, 2014. 

Comment Date: Comments on the 

interim rule should be submitted in 

writing to the address shown below on 

or before December 15, 2014, to be 

considered in the formation of a final 

rule. 

ADDRESSES: Submit comments 

identified by DFARS Case 2011–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 2011–D038’’ 

under the heading ‘‘Enter keyword or 

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

link ‘‘Submit a Comment’’ that 

corresponds with ‘‘DFARS Case 2011– 

D038.’’ Follow the instructions provided 

at the ‘‘Submit a Comment’’ screen. 

Please include your name, company 

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

D038’’ on your attached document. 

Æ Email: osd.dfars@mail.mil. Include 

DFARS Case 2011–D038 in the subject 

line of the message. 

Æ Fax: 571–372–6094. 

Æ Mail: Defense Acquisition 

Regulations System, Attn: Lee Renna, 

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. 

Lee Renna, telephone 571–372–6095. 

SUPPLEMENTARY INFORMATION: 

I. Background 

This interim rule revises the DFARS 

to implement changes resulting from the 

expiration of 10 U.S.C. 2323 on 

September 30, 2009. Section 2323 of 

Title 10 was the underlying statutory 

authority for DoD’s Small 

Disadvantaged Business (SDB) program, 

including the establishment of a specific 

goal within the overall 5 percent SDB 

goal for the award of prime contracts 

and subcontracts to historically black 

colleges and universities (HBCUs) and 

minority institutions (MIs). DoD’s 

fundamental policy to provide the 

maximum practicable number of 

contracting opportunities for SDB 

concerns and, in defense-related 

research and development, the 

maximum number of opportunities for 

HBCUs and MIs, is unchanged by this 

rule, as demonstrated by the following: 

—DoD’s annual SDB goal is 5 percent of 

the total value of all prime contract 

and subcontract awards for each fiscal 

year, in keeping with 15(g) of the 

Small Business Act, Pub. L. 85–536, 

as amended, (15 U.S.C. 644(g)). DoD 

has met or exceeded this goal every 

fiscal year since 2001. 

—DoD contracting officers may continue 

to use incentives to encourage prime 

contractors to increase subcontracting 

opportunities with all small business 

types, including SDBs. 

—DoD contracting officers will continue 

to evaluate the extent of small 

business participation, including that 

of SDBs, in solicitations and contracts 

that require subcontracting plans, as 

well as the past performance of 

offerors’ achievement of their small 

business subcontracting goals. 

—In addition, section 252 of the 

National Defense Authorization Act 

for Fiscal Year (FY) 2010 (codified at 

10 U.S.C. 2362) authorized the 

Secretary of Defense to establish a 

program to provide assistance to 

HBCUs and MIs in defense-related 

research, development, testing, and 

evaluation activities. This statutory 

authority is used in support of DoD’s 

annual HBCU/MI Broad Agency 

Announcement. 

II. Discussion and Analysis 

The following is a summary of the 

revisions to the DFARS: 

—Removal of DFARS 205.207(d) 

subparagraphs (i) and (ii), which 

provided guidance for synopsizing 

HBCU and MI set-asides, and update 

the PGI reference in subparagraph 

(iii). 

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61580 Federal Register / Vol. 79, No. 198 / Tuesday, October 14, 2014 / Rules and Regulations 

—Removal of DFARS 206.203, which 

provided guidance pertaining to 

HBCU and MI set-asides under the 

authority of 10 U.S.C. 2323; 

—Revision of DFARS 215.304 to (1) 

Remove the references to HBCUs and 

MIs and (2) add language to clarify the 

extent of small business participation 

in performance of the contract that 

shall be addressed during source 

selection for acquisitions requiring 

subcontracting plans. 

—Removal of DFARS 219.000, which 

stated purpose was to implement 10 

U.S.C. 2323. 

—Removal of DFARS 219.001 because 

(1) This SDB definition was provided 

for the purpose of implementing 10 

U.S.C. 2323, specifically as it 

pertained to the eligibility for the 

special progress payment rate for 

SDBs, and reporting contract actions 

in Federal Procurement Data System. 

—Removal of DFARS 219.201(f) and 

219.202–5, as these data collection 

and reporting requirements stemmed 

from 10 U.S.C 2323. A conforming 

change was made to DFARS 219.202. 

—Removal of DFARS 219.502–3, which 

provided guidance for applying the 

SDB price evaluation adjustment to 

partial small business set-asides. 

—Removal of DFARS 219.703(a)(2)(A) 

and (B), since there are no longer 

DoD-unique eligibility requirements 

for SDBs, HBCUs, and/or MIs. 

—Removal of DFARS 219.704(1) since 

DoD prime contractors can no longer 

consider subcontract awards to 

HBCUs and MIs as a component of 

their SDB goal. 

—Revision of DFARS 219.705–4 to 

remove the requirement for DoD 

contracting officer to consider the 

extent to which a prime contractor 

will restrict competition to HBCUs 

and/or MIs in fulfillment of its 

subcontracting plan. 

—Removal of DFARS subpart 219.11 

since there is no longer a statutory 

authority for the SDB price evaluation 

adjustment. 

—Removal of DFARS subpart 219.12, 

which addressed monetary incentives 

to prime contractors to increase 

subcontracting opportunities for SDBs 

pursuant to 10 U.S.C. 2323. However, 

DoD continues to employ monetary 

incentives for prime contractors, 

pursuant to FAR 19.7, as a means of 

encouraging efforts of prime 

contractors to maximize 

subcontracting opportunities with all 

small business concerns, including 

SDBs. 

—Removal of DFARS subpart 226.3, 

which implemented 10 U.S.C. 2323 

for HBCU and MI set-asides. 

—Revision of DFARS 232.501–1 to 

remove authorizing language for the 

95 percent progress payment rate for 

SDBs. The customary progress 

payment rate for all small businesses, 

including SDBs, is 90 percent. 

—Removal of DFARS 232.502–1, which 

permitted progress payments to SDBs 

if the contract involved $65,000 or 

more. 

—Revision of DFARS 232.502–470(b) to 

remove the reference to SDBs in 

keeping with the revision to the 

associated DFARS clause at 252.232– 

7004. 

—Removal of DFARS 235.016, since its 

stated purpose was to implement 

section 1207 of Public Law 99–661, 

which was codified at 10 U.S.C. 2323. 

Broad agency announcements, 

however, may still be used to 

encourage HBCUs and MIs to submit 

proposals in specific areas of 

scientific interest to DoD. 

—Revision of DFARS DFARS clause 

252.219–7003, Small Business 

Subcontracting Plan (DoD Contracts), 

to remove the DoD-specific 

definitions for SDB, HBCU, and MI, 

and authorities stemming from 10 

U.S.C. 2323. In addition, the 

requirement for the Year End 

Supplementary Report for Small 

Disadvantaged Businesses and the 

Small Disadvantaged Business 

Participation report have been 

removed, since both requirements 

stemmed from 10 U.S.C. 2323. 

—Revision of DFARS clause 252.219– 

7004, Small Business Subcontracting 

Plan (Test Program), to remove the 

reporting requirement stemming from 

10 U.S.C. 2323 for (1) DoD prime 

contractors regarding HBCUs and MIs, 

and (2) the Year End Supplementary 

Report for Small Disadvantaged 

Businesses. 

—Removal of DFARS clause 252.226– 

7000, Notice of Historically Black 

College or University and Minority 

Institution Set-Aside, since 10 U.S.C. 

2323 was the authority for the HBCU 

and MI set-aside program. 

—Revision of DFARS clause 252.232– 

7004, Small Business Subcontracting 

Plan (Test Program),to remove 

language pertaining to the 95 percent 

SDB progress payment rate. The 

customary progress payment rate/

liquidation rate that is applicable to 

all small businesses, including SDBs, 

is 90 percent. 

—Revision of DFARS Appendix I–101– 

5 to remove the DoD-unique 

definition for an SDB concern. 

—Removal of DFARS Appendix I– 

112.1(c), which references FAR 

52.219–26, Small Disadvantaged 

Business Program—Incentive 

Subcontracting. The clause and the 

subcontracting incentives connected 

with the clause no longer exist, since 

both were based on the authority of 10 

U.S.C. 2323. 

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 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 interim 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 it does not change the 

fundamental procurement policies that 

DoD has used to achieve strong small 

disadvantaged business (SDB) 

participation or to encourage the 

involvement of historically black 

colleges and universities (HBCUs) and 

minority institutions (MIs) in defenserelated research, development, testing, 

and evaluation activities. However, an 

initial regulatory flexibility analysis has 

been performed and is summarized as 

follows: 

The purpose of this rule is to remove 

language based on 10 U.S.C. 2323. 

Section 2323 of Title 10 expired on 

September 30, 2009. This interim rule 

amends the DFARS to remove or revise 

clauses, provisions, and guidance 

conditioned solely on section 1207 of 

the National Defense Authorization Act 

of 1987, Public Law 99–661, as codified 

at 10 U.S.C. 2323. 

Under the authority of 10 U.S.C. 2323, 

DoD established an SDB participation 

program. This statute served as the basis 

for certain solicitation techniques used 

by DoD to further its SDB participation 

rate, such as the price evaluation 

adjustment for SDB concerns and the 

set-aside program for HBCUs and MIs. 

In FY 2008, the last complete fiscal 

year for which the DoD SDB program 

was in effect, DoD awarded 

approximately 29,292 contracts to small 

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Federal Register / Vol. 79, No. 198 / Tuesday, October 14, 2014 / Rules and Regulations 61581 

disadvantaged businesses, inclusive of 

approximately 329 DoD awards made to 

HBCUs and MIs. These figures represent 

the population of small entities that may 

be affected by the expiration of 10 

U.S.C. 2323. Several factors, however, 

mitigate the impact of this change, such 

as the following: 

—Section 15(g) of the Small Business 

Act (Pub. L. 85–536, as amended), (15 

U.S.C. 644(g)), requires all Federal 

agencies to make every attempt to 

achieve the annual Governmentwide 

goal for participation by SDBs. The 

statutory SDB goal is not less than 5 

percent of the total value of all prime 

contract and subcontract awards for 

each fiscal year. DoD has met or 

exceeded the 5 percent SDB goal since 

FY 2001. 

—DoD contracting officers may continue 

to employ incentives in solicitations 

and contracts, when inclusion of such 

incentives is, in the judgment of the 

contracting officer, necessary to 

increase subcontracting opportunities 

for small businesses, service-disabled 

veteran-owned small businesses, 

HUBZone small businesses, womenowned small businesses, as well as 

small disadvantaged businesses. 

Additionally, in keeping with SBA’s 

regulations at 13 CFR 125.3(g), the 

extent of participation of all small 

businesses, including small 

disadvantaged businesses, in 

performance of the contract shall be 

addressed as part of the source 

selection for negotiated DoD 

acquisitions that have subcontracting 

opportunities. The past performance 

of offerors in complying with 

subcontracting goals with all small 

businesses, including SDBs, shall also 

be evaluated in DoD acquisitions. 

—The effect of the permanent 

elimination of the price evaluation 

adjustment for SDB concerns is 

negligible. The authority for this 

adjustment had not been used by DoD 

since 2001 because, under 10 U.S.C. 

2323, DoD was prohibited from using 

the price evaluation adjustment if, 

during the previous fiscal year, it had 

achieved a 5 percent or greater SDB 

achievement. DoD has achieved the 5 

percent SDB goal had been met or 

exceeded each year. 

—In FY 2009, Congress passed, and on 

September 30, 2009, the President 

signed into law, the National Defense 

Authorization Act for FY 2010 (Pub. 

L. 111–84). Section 252 of the law, 

codified at 10 U.S.C 2362, gave the 

Secretary of Defense, and the 

Secretary of each military department, 

the authority to carry out a program 

to enhance participation of HBCUs 

and MIs in defense research programs. 

DoD has annually issued broad 

agency announcements in support of 

this program since FY 2010. 

This rule does not impose new 

reporting, recordkeeping or other 

compliance requirements. There are no 

rules that duplicate, overlap, or conflict 

with this rule. 

The desired outcome to remove 

language in the DFARS that is based 

solely on 10 U.S.C. 2323 is best 

achieved by implementation of the 

interim rule as stated herein. There are 

no known alternatives since the DFARS 

language that implemented this law 

must be removed since the underlying 

statute, 10 U.S.C. 2323 has expired. 

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 2011–D038), in 

correspondence. 

V. Paperwork Reduction Act 

This 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). The associated information 

collection requirements are covered by 

the FAR under OMB Control numbers 

9000–0150, 9000–0006, and 9000–007, 

which are being addressed accordingly 

under FAR Case 2009–016. 

VI. Determination To Issue an Interim 

Rule 

A determination has been made under 

the authority of the Secretary of Defense 

that urgent and compelling reasons exist 

to promulgate this interim rule without 

prior opportunity for public comment. 

This action is necessary because the 

statutory authority provided under 10 

U.S.C. 2323 has expired; necessitating 

the removal of the law’s implementing 

regulations in the DFARS. So long as 

this implementing language remains in 

the DFARS, there is a high risk that a 

DoD contracting officer will 

inadvertently attempt to execute a 

contractual action based on an expired 

legal authority. So as to avoid this 

situation, the DFARS changes described 

herein must be made as soon as 

possible. However, pursuant to 41 

U.S.C. 1707 and FAR 1.501–3(b), DoD 

will consider public comments received 

in response to this interim rule in the 

formation of the final rule. 

List of Subjects in 48 CFR Parts 205, 

206, 215, 219, 226, 232, 235, 252, and 

Appendix I to Chapter 2 

Government procurement. 

Manuel Quinones, 

Editor, Defense Acquisition Regulations 

System. 

Therefore, 48 CFR parts 205, 206, 215, 

219, 226, 232, 235, 252, and Appendix 

I to Chapter 2 are amended as follows: 

■ 1. The authority citation for 48 CFR 

parts 205, 206, 215, 219, 226, 232, 235, 

252, and Appendix I to chapter 2 

continues to read as follows: 

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

chapter 1. 

PART 205—PUBLICIZING CONTRACT 

ACTIONS 

■ 2. Amend section 205.207 by revising 

paragraph (d) to read as follows: 

205.207 Preparation and transmittal of 

synopses. 

* * * * * 

(d) For special notices for small 

business events, follow the procedures 

at PGI 205.207(d). 

PART 206—COMPETITION 

REQUIREMENTS 

206.203 [Removed] 

■ 3. Remove section 206.203. 

PART 215—CONTRACTING BY 

NEGOTIATION 

■ 4. Amend section 215.304 by revising 

paragraph (c)(i) to read as follows: 

215.304 Evaluation factors and significant 

subfactors. 

(c)(i) In acquisitions that require use 

of the clause at FAR 52.219–9, Small 

Business Subcontracting Plan, other 

than those based on the lowest price 

technically acceptable source selection 

process (see FAR 15.101–2), the extent 

of participation of small businesses (to 

include service-disabled veteran-owned 

small business concerns, HUBZone 

small business concerns, small 

disadvantaged business concerns, and 

women-owned small business concerns) 

in performance of the contract shall be 

addressed in source selection. The 

contracting officer shall evaluate the 

extent to which offerors identify and 

commit to small business performance 

of the contract, whether as a joint 

venture, teaming arrangement, or 

subcontractor. 

(A) See PGI 215.304(c)(i)(A) for 

examples of evaluation factors. 

(B) Proposals addressing the extent of 

small business performance shall be 

separate from subcontracting plans 

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61582 Federal Register / Vol. 79, No. 198 / Tuesday, October 14, 2014 / Rules and Regulations 

submitted pursuant to the clause at FAR 

52.219–9 and shall be structured to 

allow for consideration of offers from 

small businesses. 

(C) When an evaluation assesses the 

extent that small businesses are 

specifically identified in proposals, the 

small businesses considered in the 

evaluation shall be listed in any 

subcontracting plan submitted pursuant 

to FAR 52.219–9 to facilitate 

compliance with 252.219–7003(e). 

* * * * * 

PART 219—SMALL BUSINESS 

PROGRAMS 

219.000 [Removed] 

■ 5. Remove section 219.000. 

219.001 [Removed] 

■ 6. Remove section 219.001. 

219.201 [Amended] 

■ 7. Amend section 219.201 by 

removing paragraph (f). 

219.202–1 [Amended] 

■ 8. Amend section 219.202–1 by 

removing ‘‘PGI 205.207(d)(ii)’’ and 

adding ‘‘PGI 205.207(d)’’ in its place. 

219.202–5 [Removed] 

■ 9. Remove section 219.202–5. 

219.502–3 [Removed] 

■ 10. Remove section 219.502–3. 

219.703 [Amended] 

■ 11. Amend section 219.703 by 

removing paragraphs (a)(2)(A) and (B). 

219.704 [Amended] 

■ 12. Amend section 219.704 by— 

■ a. Removing paragraph (1); and 

■ b. Redsignating paragraph (2) as 

paragraph (1), and paragraph (3) as 

paragraph (2), respectively. 

■ 13. Revise section 219.705–4 to read 

as follows: 

219.705–4 Reviewing the subcontracting 

plan. 

(d) Challenge any subcontracting plan 

that does not contain positive goals. A 

small disadvantaged business goal of 

less than five percent must be approved 

one level above the contracting officer. 

Subpart 219.11 [Removed] 

■ 14. Remove subpart 219.11, consisting 

of sections 219.1101 and 219.1102. 

Subpart 219.12 [Removed] 

■ 15. Remove subpart 219.12, consisting 

of sections 219.1203 and 219.1204. 

PART 226—OTHER SOCIOECONOMIC 

PROGRAMS 

Subpart 226.3 [Removed] 

■ 16. Remove subpart 226.3, consisting 

of sections 226.370 and 226.370–1 

through 226.370–9. 

PART 232—CONTRACT FINANCING 

■ 17. Revise section 232.501–1 to read 

as follows: 

232.501–1 Customary progress payment 

rates. 

(a) The customary progress payment 

rates for DoD contracts, including 

contracts that contain foreign military 

sales (FMS) requirements, are 80 

percent for large business concerns and 

90 percent for small business concerns. 

232.502–1 [Removed] 

■ 18. Remove section 232.502–1. 

232.502–4–70(b) [Amended] 

■ 19. Amend section 232.502–4–70(b) to 

remove the phrase ‘‘or small 

disadvantaged business’’. 

PART 235—RESEARCH AND 

DEVELOPMENT CONTRACTING 

235.016 [Removed] 

■ 20. Remove section 235.016. 

PART 252—SOLICITATION 

PROVISIONS AND CONTRACT 

CLAUSES 

■ 21. Amend section 252.219–7003 by— 

■ a. Removing the clause date ‘‘(AUG 

2012)’’ and adding ‘‘(OCT 2014)’’ in its 

place; 

■ b. Revising paragraph (a); 

■ c. Removing paragraphs (b) and (c); 

■ d. Redesignating paragraph (d) as 

paragraph (b); 

■ e. Redesignating paragraphs (e) 

through (h) as (c) through (f), 

respectively; 

■ f. In the newly redesignated paragraph 

(c) removing ‘‘subcontracts awarded’’ 

and adding ‘‘subcontracts awarded to’’ 

in its place; 

■ g. In the newly redesignated 

paragraph (f)— 

■ i. In paragraph (f)(2)(i), removing 

‘‘(h)(1)(i)’’ and adding ‘‘(f)(1)(i)’’ in its 

place; 

■ ii. In paragraph (f)(2)(ii), removing 

‘‘(h)(2)(iii)’’ and adding ‘‘(f)(2)(iii)’’ in its 

place; and 

■ iii. Removing paragraphs (f)(2)(iv) and 

(v). 

■ h. Revising the Alternate I clause. 

The revisions read as follows: 

252.219–7003 Small Business 

Subcontracting Plan (DoD Contracts). 

* * * * * 

(a) Definition. Summary Subcontract 

Report (SSR) Coordinator, as used in 

this clause, means the individual at the 

department or agency level who is 

registered in eSRS and is responsible for 

acknowledging receipt or rejecting SSRs 

in eSRS for the department or agency. 

* * * * * 

Alternate I (OCT 2014) 

As prescribed in 219.708(b)(1)(A)(2), 

substitute the following paragraph 

(f)(1)(i) for (f)(1)(i) in the basic clause: 

(f)(1)(i) The Standard Form 294 

Subcontracting Report for Individual 

Contracts shall be submitted in accordance 

with the instructions on that form; paragraph 

(f)(2)(i) is inapplicable. 

■ 22. Section 252.219–7004 is amended 

by— 

■ a. Removing the clause date ‘‘(JAN 

2011)’’ and adding ‘‘(OCT 2014)’’ in its 

place; 

■ b. Revising paragraph (d) introductory 

text; 

■ c. Removing paragraph (e); and 

■ d. Redesignating paragraphs (f) and (g) 

as paragraphs (e) and (f), respectively. 

The revision reads as follows: 

252.219–7004 Small Business 

Subcontracting Plan (Test Program). 

* * * * * 

(d) The Contractor shall submit SSRs 

using eSRS at http://www.esrs.gov. The 

reports shall provide information on 

subcontract awards to small business 

concerns, veteran-owned small business 

concerns, service-disabled veteranowned small business concerns, 

HUBZone small business concerns, 

small disadvantaged business concerns, 

and women-owned small business 

concerns. Purchases from a corporation, 

company, or subdivision that is an 

affiliate of the prime Contractor or 

subcontractor are not included in these 

reports. Subcontract award data 

reported by prime contractors and 

subcontractors shall be limited to 

awards made to their immediate nexttier subcontractors. Credit cannot be 

taken for awards made to lower-tier 

subcontractors unless the Contractor or 

subcontractor has been designated to 

receive a small business or small 

disadvantaged business credit from a 

member firm of the Alaska Native— 

Corporations or an Indian tribe. Only 

subcontracts involving performance in 

the U.S. or its outlying areas should be 

included in these reports. 

* * * * * 

252.226–7000 [Removed] 

■ 23. Remove section 252.226–7000. 

■ 24. Revise section 252.232–7004 to 

read as follows: 

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Federal Register / Vol. 79, No. 198 / Tuesday, October 14, 2014 / Rules and Regulations 61583 

252.232–7004 DoD Progress Payment 

Rates. 

As prescribed in 232.502–4–70(b), use 

the following clause: 

DOD PROGRESS PAYMENT RATES 

(OCT 2014) 

If the Contractor is a small business 

concern, the Progress Payments clause of this 

contract is modified to change each mention 

of the progress payment rate and liquidations 

rate (excepting paragraph (k), Limitations on 

Undefinitized Contract Actions) to 90 

percent. 

(End of clause) 

■ 25. Amend Appendix I to Chapter 2 

by: 

■ a. Revising section I–101.5(a.) 

■ b. Amending section I–112.1 by 

removing paragraph (c). 

The revision reads as follows: 

Appendix I to Chapter 2—Policy and 

Procedures for the DoD Pilot MentorProtege Program 

* * * * * 

I–101.5 * * * 

(a) An SDB concern as defined in 13 CFR 

124.1002; 

* * * * * 

[FR Doc. 2014–24225 Filed 10–10–14; 8:45 am] 

BILLING CODE 5001–06–P 

DEPARTMENT OF DEFENSE 

Defense Acquisition Regulation 

System 

48 CFR Part 247 

RIN 0750–AI38 

Defense Federal Acquisition 

Regulation: Ocean Transportation by 

U.S.-Flag Vessels (DFARS Case 2014– 

D012) 

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 remove text regarding 

contracting officer responsibilities, 

when purchasing ocean transportation 

services, that are procedural in nature. 

DATES: Effective October 14, 2014. 

FOR FURTHER INFORMATION CONTACT: Ms. 

Veronica Fallon, telephone 571–372– 

6098. 

SUPPLEMENTARY INFORMATION: 

I. Discussion 

DoD is revising DFARS 247.572 and 

247.573 to include a statement of 

delegated authority and to remove 

guidance that is internal to DoD 

concerning procedures contracting 

officers must follow when purchasing 

ocean transportation services. The 

internal DoD guidance removed from 

DFARS will be addressed in revised 

DFARS Procedures, Guidance and 

Information (PGI) 247.573. 

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 the change is not substantive 

and only modifies the internal operating 

procedures of DoD. 

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). EO 13563 emphasizes the 

importance of quantifying both costs 

and benefits, of reducing costs, or 

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 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 247 

Government procurement. 

Manuel Quinones, 

Editor, Defense Acquisition Regulations 

System. 

Therefore, 48 CFR part 247 is 

amended as follows: 

PART 247—TRANSPORTATION 

■ 1. The authority citation for 48 CFR 

part 247 continues to read as follows: 

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

chapter 1. 

■ 2. Section 247.572 paragraph (a) is 

revised to read as follows: 

247.572 Policy. 

(a) In accordance with 10 U.S.C. 

2631(a), DoD contractors shall transport 

supplies, as defined in the clause at 

252.247–7023, Transportation of 

Supplies by Sea, exclusively on U.S.- 

flag vessels unless— 

(1) Those vessels are not available; 

(2) The proposed charges to the 

Government are higher than charges to 

private persons for the transportation of 

like goods; or 

(3) The proposed freight charges are 

excessive or unreasonable. 

* * * * * 

■ 3. Section 247.573 heading is revised 

and new text added to read as follows: 

247.573 General. 

(a) Delegated authority. Pursuant to 

10 U.S.C. 2631(a) and Secretary of 

Defense Memorandum dated February 

7, 2012, (see PGI 245.573) the authority 

to make determinations of excessive 

ocean liner rates and excessive charter 

rates is delegated to— 

(1) The Commander, United States 

Transportation Command, for excessive 

ocean liner rate determinations; and 

(2) The Secretary of the Navy for 

excessive charter rate determinations. 

(b) Procedures. (1) Contracting officers 

shall follow the procedures at PGI 

247.573(b)(1) when purchase of ocean 

transportation services is incidental to a 

contract for supplies, services, or 

construction. 

(2) Contracting officers shall follow 

the procedures at PGI 247.573(b)(2) 

when direct purchase of ocean 

transportation services is the principal 

purpose of the contract. 

(3) Agency and department 

procedures relating to annual reporting 

requirements of information received 

mstockstill on DSK4VPTVN1PROD with RULES