13606 Federal Register / Vol. 78, No. 40 / Thursday, February 28, 2013 / Proposed Rules 

226.7200 Scope of subpart. 

226.7201 Definition. 

226.7202 Applicability. 

226.7203 Policy. 

226.7204 Contract clause. 

226.7200 Scope of subpart. 

This subpart implements section 862 

of the National Defense Authorization 

Act for Fiscal Year 2012 (Pub. L. 112– 

81). 

226.7201 Definition. 

‘‘Science, Technology, Engineering, 

and Mathematics (STEM) Programs,’’ as 

used in this subpart, means programs or 

incentives, either formal or informal, 

that encourage the pursuit of education 

and experience in the science, 

technology, engineering, and 

mathematics disciplines. 

226.7202 Applicability. 

This subpart applies to all 

solicitations and contracts. 

226.7203 Policy. 

DoD encourages contractors to 

undertake actions, to the maximum 

extent practicable, that— 

(a) Enhance undergraduate, graduate, 

and doctoral programs in science, 

technology, engineering, and 

mathematics (referred to as ‘‘STEM’’ 

disciplines); 

(b) Make investments, such as 

programming and curriculum 

development, in STEM programs within 

elementary and secondary schools; 

(c) Encourage employees to volunteer 

in Title I schools in order to enhance 

STEM education and programs; 

(d) Make personnel available to advise 

and assist faculty at such colleges and 

universities in the performance of STEM 

research and disciplines critical to the 

functions of DoD; 

(e) Establish partnerships between the 

contractor and historically black 

colleges and universities and minority 

institutions for the purpose of training 

students in scientific disciplines; 

(f) Award scholarships and 

fellowships, and establish cooperative 

work-education programs in scientific 

disciplines; or 

(g) Conduct recruitment activities at 

historically black colleges and 

universities and other minority-serving 

institutions or offer internships or 

apprenticeships. 

226.7204 Contract clause. 

The contracting officer shall insert the 

clause at 252.226–70XX, Encouragement 

of Science, Technology, Engineering, 

and Mathematics (STEM) Programs, in 

all solicitations and contracts. 

PART 252—SOLICITATION 

PROVISIONS AND CONTRACT 

CLAUSES 

■ 4. The authority citation for part 252 

continues to read as follows: 

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

chapter 1. 

■ 5. Section 252.226–70XX is added to 

read as follows: 

252.226–70XX Encouragement of Science, 

Technology, Engineering, and Mathematics 

(STEM) Programs. 

As prescribed in 226.7204, insert the 

following clause: 

Encouragement of Science, Technology, 

Engineering, and Mathematics (STEM) 

Programs (Date) 

(a) Definition. 

‘‘Science, Technology, Engineering, and 

Mathematics (STEM) Programs,’’ as used in 

this clause, means programs and or 

incentives, either formal or informal, that 

encourage the pursuit of education and 

experience in the science, technology, 

engineering, and mathematics disciplines. 

(b) In accordance with section 862 of the 

National Defense Authorization Act for Fiscal 

Year 2012 (Pub. L. 112–81), the Contractor is 

encouraged to undertake actions, to the 

maximum extent practicable, that— 

(1) Enhance undergraduate, graduate, and 

doctoral programs in science, technology, 

engineering, and mathematics (referred to as 

‘‘STEM’’ disciplines); 

(2) Make investments, such as 

programming and curriculum development, 

in STEM programs within elementary and 

secondary schools; 

(3) Encourage employees to volunteer in 

Title I schools in order to enhance STEM 

education and programs; 

(4) Make personnel available to advise and 

assist faculty at such colleges and 

universities in the performance of STEM 

research and disciplines critical to the 

functions of DoD; 

(5) Establish partnerships between the 

contractor and historically black colleges and 

universities and minority institutions for the 

purpose of training students in scientific 

disciplines; 

(6) Award scholarships and fellowships, 

and establish cooperative work-education 

programs in scientific disciplines; or 

(7) Conduct recruitment activities at 

historically black colleges and universities 

and other minority-serving institutions or 

offer internships or apprenticeships. 

(c) Costs. (1) The Contractor shall assume 

the responsibility for all the costs and 

investments in support of the STEM 

disciplines. 

(2) The Contractor will not be reimbursed 

for any costs incurred or associated with the 

support of the STEM disciplines. Any costs 

incurred for supporting the STEM disciplines 

are unallowable under this contract. 

(End of clause) 

[FR Doc. 2013–04352 Filed 2–27–13; 8:45 am] 

BILLING CODE 5001–06–P 

DEPARTMENT OF DEFENSE 

Defense Acquisition Regulations 

System 

48 CFR Part 231 

RIN 0750–AH76 

Defense Federal Acquisition 

Regulation Supplement; Unallowable 

Fringe Benefit Costs (DFARS Case 

2012–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 

explicitly state that fringe benefit costs 

incurred or estimated that are contrary 

to law, employer-employee agreement, 

or an established policy of the 

contractor are unallowable. 

DATES: Comments on the proposed rule 

should be submitted in writing to the 

address shown below on or before April 

29, 2013, to be considered in the 

formation of the final rule. 

ADDRESSES: You may submit comments, 

identified by DFARS Case 2012–D038, 

using any of the following methods: 

Regulations.gov: http:// 

www.regulations.gov. Submit comments 

via the Federal eRulemaking portal by 

inserting ‘‘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 2012– 

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. 

Follow the instructions for submitting 

comments. 

Email: dfars@osd.mil. Include DFARS 

Case 2012–D038 in the subject line of 

the message. 

Fax: 571–372–6094. 

Mail: Defense Acquisition Regulations 

System, Attn: Ms. Amy 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). 


srobinson on DSK4SPTVN1PROD with PROPOSALS
Federal Register / Vol. 78, No. 40 / Thursday, February 28, 2013 / Proposed Rules 13607 

FOR FURTHER INFORMATION CONTACT: Ms. 

Amy Williams, telephone 571–372– 

6106. 

SUPPLEMENTARY INFORMATION: 

I. Background 

DoD is proposing to revise the DFARS 

at 231.205–6 to implement the Director 

of Defense Pricing policy memo 

‘‘Unallowable Costs for Ineligible 

Dependent Health Care Benefits, dated 

February 17, 2012. The rule adds 

paragraph 231.205–6(m)(1) to explicitly 

state that fringe benefit costs incurred or 

estimated that are contrary to law, 

employer-employee agreement, or an 

established policy of the contractor are 

unallowable. 

FAR 42.709, which implements 10 

U.S.C. 2324(a) through (d) and 41 U.S.C. 

4303, covers the assessment of penalties 

against contractors that include 

unallowable indirect costs in final 

indirect cost rate proposals or the final 

statement of costs incurred or estimated 

to be incurred under a fixed-price 

incentive contract. The section applies 

to all contracts in excess of $700,000, 

except fixed-price contracts without 

cost incentives or firm-fixed-price 

contracts for the purchase of 

commercial items. FAR 42.709–1(a) 

provides penalties that apply if the 

indirect cost is expressly unallowable 

under a cost principle in the FAR, or an 

executive agency supplement to the 

FAR. 

FAR 31.205–6(m) states that the costs 

of fringe benefits (which include 

employee health care benefits) are 

allowable to the extent that they are 

reasonable and are required by law, 

employer-employee agreement, or an 

established policy of the contractor. 

Although fringe benefit costs that do not 

meet these criteria are not allowable, the 

FAR does not make them expressly 

unallowable. Specifying these fringe 

benefit costs as expressly unallowable 

in the DFARS makes it clear that the 

penalties at FAR 42.709–1 are 

applicable if a contractor includes such 

unallowable fringe benefit costs in a 

final indirect cost rate proposal or in the 

final statement of costs incurred or 

estimated to be incurred under a fixedprice incentive contract. 

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. The Office of Information 

and Regulatory Affairs has determined 

that 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. 

III. Regulatory Flexibility Act 

DoD has prepared an initial regulatory 

flexibility analysis consistent with 5 

U.S.C. 603. A copy of the analysis may 

be obtained from the point of contact 

specified herein. The analysis is 

summarized as follows: 

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 will only 

impact entities that are submitting 

covered proposals containing 

unallowable indirect fringe benefit 

costs. FAR 31.205–6(m) already states 

what fringe benefit costs are allowable. 

This rule provides explicit clarification 

that fringe benefit costs incurred or 

estimated that are contrary to law, 

employer-employee agreement, or an 

established policy of the contractor are 

unallowable. If this rule takes effect, the 

penalties at FAR 42.709–1 will apply to 

any entity that includes such 

unallowable indirect charges in a final 

indirect cost rate proposal or the final 

statement of costs incurred or estimated 

to be incurred under a fixed-price 

incentive contract for a contract that 

exceeds $700,000. 

At this time, DoD is unable to 

estimate the number of small entities to 

which this rule will apply. According to 

FPDS date for FY 2012, there were 

approximately 3000 contract awards 

exceeding $700,000 to small entities, 

excluding fixed-price contracts without 

cost incentives or any firm-fixed–price 

contract for the purchase of commercial 

items. We estimate that a very small 

percentage of the entities receiving these 

awards would be submitting covered 

proposals containing unallowable fringe 

benefit costs. 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 2012–D038) in 

correspondence. 

IV. 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 231. 

Government procurement. 

Manuel Quinones, 

Editor, Defense Acquisition Regulations 

System. 

Therefore, DoD proposes to amend 48 

CFR parts 231 as follows: 

PART 231—CONTRACT COST 

PRINCIPLES AND PROCEDURES 

■ 1. The authority citation for 48 CFR 

part 231 continues to read as follows: 

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

chapter 1. 

■ 2. Section 231.205–6 is amended by 

adding paragraph (m)(1) to read as 

follows: 

231.205–6 Compensation for personal 

services. 

* * * * * 

(m)(1) Fringe benefit costs incurred or 

estimated that are contrary to law, 

employer-employee agreement, or an 

established policy of the contractor are 

unallowable. 

[FR Doc. 2013–04353 Filed 2–27–13; 8:45 am] 

BILLING CODE 5001–06–P 

DEPARTMENT OF TRANSPORTATION 

Federal Motor Carrier Safety 

Administration 

49 CFR Parts 380, 383, and 384 

[Docket No. FMCSA–2007–27748] 

Minimum Training Requirements for 

Entry-Level Commercial Motor Vehicle 

Operators; Public Listening Session 

AGENCY: Federal Motor Carrier Safety 

Administration (FMCSA), DOT. 

ACTION: Notice of public listening 

session. 

SUMMARY: FMCSA announces that it will 

hold a public listening session to solicit 

ideas and information on the issue of 

entry-level training for drivers of 

commercial motor vehicles (CMVs). 

Specifically, the Agency solicits input 

on factors, issues, and data it should 

consider in anticipation of a rulemaking 

to implement the entry-level driver 


srobinson on DSK4SPTVN1PROD with PROPOSALS