Federal Register / Vol. 76, No. 182 / Tuesday, September 20, 2011 / Rules and Regulations 58137 

(i) Must be an employee, military or 

civilian, of the U.S. Government, a 

foreign government, or a North Atlantic 

Treaty Organization/coalition partner. 

In no case shall contractor personnel 

serve as CORs; 

* * * * * 

[FR Doc. 2011–23950 Filed 9–19–11; 8:45 am] 

BILLING CODE 5001–08–P 

DEPARTMENT OF DEFENSE 

Defense Acquisition Regulations 

System 

48 CFR Parts 201, 209, 212, 215, 219, 

232, 237, 243, 252, and Appendix I to 

Chapter 2 

RIN 0750–AG38 

Defense Federal Acquisition 

Regulation Supplement; Positive Law 

Codification of Title 41 U.S.C. (DFARS 

Case 2011–D036) 

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 conform references 

throughout the DFARS to the new 

Codification of Title 41, United States 

Code, ‘‘Public Contracts.’’ 

DATES: Effective date: September 20, 

2011. 

FOR FURTHER INFORMATION CONTACT: 

Ms. Amy Williams, 703–602–0328. 

SUPPLEMENTARY INFORMATION: 

I. Background 

On January 4, 2011, Public Law 111– 

350 enacted a new codified version of 

Title 41, United States Code (U.S.C.), 

entitled ‘‘Public Contracts.’’ The 

purpose of this final rule is to update all 

references to Title 41 in the DFARS to 

conform to the recodification. 

DoD has issued a final rule because 

this rule does not have a significant 

effect beyond the internal operating 

procedures of DoD and does not have a 

significant cost or administrative impact 

on contractors or offerors. Therefore 

public comment is not required in 

accordance with 41 U.S.C. 1303. 

II. Executive Orders 12866 and 13563 

Executive Orders 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). Executive Order 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 Executive Order 

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 

The Regulatory Flexibility Act does 

not apply to this rule. This final rule 

does not constitute a significant DFARS 

revision within the meaning of FAR 

1.501 and public comment is not 

required in accordance with 41 U.S.C. 

1707. 

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 Parts 201, 

209, 212, 215, 219, 232, 237, 243, 252, 

and Appendix I to Chapter 2 

Government procurement. 

Mary Overstreet, 

Editor, Defense Acquisition Regulations 

System. 

Therefore, 48 CFR parts 201, 209, 212, 

215, 219, 232, 237, 243, 252 and 

appendix I to chapter II are amended as 

follows: 

■ 1. The authority citation for 48 CFR 

parts 201, 209, 212, 215, 219, 232, 237, 

243, 252, and appendix I to chapter II 

continues to read as follows: 

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

chapter 1. 

PART 201—FEDERAL ACQUISITION 

REGULATIONS SYSTEM 

201.107 [Amended] 

■ 2. Amend section 201.107 by— 

■ (a) Removing ‘‘Section’’ from the 

introductory text and adding in its place 

‘‘section’’; and 

■ (b) Removing ‘‘425’’ from the 

introductory text and adding in its place 

‘‘1304’’. 

201.304 [Amended] 

■ 3. Amend section 201.304(2) by— 

■ (a) Removing ‘‘Section’’ and adding in 

its place ‘‘section’’; and 

■ (b) Removing ‘‘425’’ and adding in its 

place ‘‘1304’’. 

PART 209—CONTRACTOR 

QUALIFICATIONS 

209.406–2 [Amended] 

■ 4. Amend section 209.406–2(2) by— 

■ (a) Removing ‘‘Section’’ and adding in 

its place ‘‘section’’; 

■ (b) Removing ‘‘(Pub. L. 110–181)’’; 

and 

■ (c) Removing ‘‘423(e)(3)(A)(iii)’’ and 

adding in its place ‘‘2105(c)(1)(C)’’. 

PART 212—ACQUISITION OF 

COMMERCIAL ITEMS 

212.207 [Amended] 

■ 5. Amend section 212.207— 

■ (a) In paragraph (b)(i) by removing 

‘‘403(12)(E)’’ and adding in its place 

‘‘103’’; and 

■ (b) In paragraph (b)(iii)(A) by 

removing ‘‘403(12)(F)’’ and adding in its 

place ‘‘103’’. 

PART 215—CONTRACTING BY 

NEGOTIATION 

■ 6. Revise the heading of section 

215.403–1 to read as follows: 

215.403–1 Prohibition on obtaining cost or 

pricing data (10 U.S.C. 2306a and 41 U.S.C. 

chapter 35). 

* * * * * 

PART 219—SMALL BUSINESS 

PROGRAMS 

219.703 [Amended] 

■ 7. Amend section 219.703(a) 

introductory text by— 

■ (a) Removing ‘‘46–48’’ and adding in 

its place ‘‘8502–8504’’; and 

■ (b) Removing ‘‘Section’’ and adding in 

its place ‘‘section’’. 

PART 232—CONTRACT FINANCING 

232.803 [Amended] 

■ 8. Amend section 232.803(d) by 

removing ‘‘Section 3737(e) of the 

Revised Statutes (41 U.S.C. 15)’’ and 

adding in its place ‘‘41 U.S.C. 6305’’. 

PART 237—SERVICE CONTRACTING 

237.102–71 [Amended] 

■ 9. Amend section 237.102–71(a)(2) by 

removing ‘‘357(b)’’ and adding in its 

place ‘‘6701’’. 

PART 243—CONTRACT 

MODIFICATIONS 

243.204–71 [Amended] 

■ 10. Amend section 242.204–71(c) by 

removing ‘‘605(c)’’ and adding in its 

place ‘‘7103’’. 


sroberts on DSK5SPTVN1PROD with RULES
58138 Federal Register / Vol. 76, No. 182 / Tuesday, September 20, 2011 / Rules and Regulations 

PART 252—SOLICITATION 

PROVISIONS AND CONTRACT 

CLAUSES 

252.203–7000 [Amended] 

■ 11. Amend section 252.203–7000 by— 

■ (a) Removing the clause date of ‘‘(JAN 

2009)’’ and adding in its place ‘‘(SEP 

2011)’’; 

■ (b) In paragraph (a)(2)(i) introductory 

text, removing ‘‘403(16)’’ and adding in 

its place ‘‘131’’; and 

■ (c) In paragraph (c), removing 

‘‘423(e)(3)’’ and adding in its place 

‘‘2105(c)’’. 

252.212–7001 [Amended] 

■ 12. Amend section 252.212–7001 by— 

■ (a) Removing the clause date of ‘‘(AUG 

2011)’’ and adding in its place ‘‘(SEP 

2011)’’; and 

■ (b) In paragraph (b)(2) removing 

‘‘Section’’ and adding in its place 

‘‘section’’; 

■ (c) In paragraph (b)(2) removing the 

word ‘‘note’’. 

252.219–7003 [Amended] 

■ 13. Amend section 252.219–7003 by— 

■ (a) Removing the clause date of ‘‘(OCT 

2010)’’ and adding in its place ‘‘(SEP 

2011)’’; and 

■ (b) In paragraph (d), removing ‘‘46– 

48’’ and adding in its place ‘‘8502– 

8504’’. 

252.225–7001 [Amended] 

■ 14. Amend section 252.225–7001 by— 

■ (a) Removing the clause date of ‘‘(JAN 

2009)’’ and adding in its place ‘‘(SEP 

2011)’’; 

■ (b) In paragraph (b), removing 

‘‘Section 10a-d’’ and adding in its place 

‘‘chapter 83’’; and 

■ (c) In paragraph (b) removing ‘‘431’’ 

and adding in its place ‘‘1907’’. 

252.227–7037 [Amended] 

■ 15. Amend section 252.227–7037 by— 

■ (a) Removing the clause date ‘‘(SEP 

1999)’’ and adding in its place ‘‘(SEP 

2011)’’; and 

■ (b) In paragraph (e)(3), removing ‘‘601, 

et seq.’’ and adding in its place ‘‘7101’’. 

APPENDIX I TO CHAPTER 2— 

[Amended] 

■ 16. Amend section I–101.4 by 

removing ‘‘46’’ and adding in its place 

‘‘8502’’. 

[FR Doc. 2011–23951 Filed 9–19–11; 8:45 am] 

BILLING CODE ;P 

DEPARTMENT OF DEFENSE 

Defense Acquisition Regulations 

System 

48 CFR Parts 204, 212, and 252 

RIN 0750–AH02 

Defense Federal Acquisition 

Regulation Supplement (DFARS); 

Alternative Line Item Structure (DFARS 

Case 2010–D017) 

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 establish a standard 

procedure for offerors to propose an 

alternative line item structure that 

reflects the offeror’s business practices 

for selling and billing commercial items 

and initial provisioning spares for 

weapon systems 

DATES: Effective Date: September 20, 

2011. 

FOR FURTHER INFORMATION CONTACT: Mr. 

Julian E. Thrash, 703–602–0310. 

SUPPLEMENTARY INFORMATION: 

I. Background 

DoD published a proposed rule in the 

Federal Register at 76 FR 21847 on 

April 19, 2011, to add DFARS language 

that provides offerors the opportunity to 

propose an alternative line item 

structure in solicitations for commercial 

items and initial provisioning spares. 

This DFARS change will allow offerors 

to provide information about their 

products that may not have been known 

to the Government prior to issuance of 

the solicitation. No public comments 

were received regarding the proposed 

rule. 

DoD identified the need to propose an 

alternative line item structure during 

process reviews and working group 

sessions that assessed destinationacceptance procedures. The process 

reviews performed by DoD cross-service 

working groups, which were chartered 

by the Defense Finance and Accounting 

System, examined issues causing 

problems in the receipt and acceptance 

phase for contract deliverables and 

payments. 

This group determined that the level 

of detail in the requirements description 

and line item structure is not always 

sufficient for delivery, payment, and 

subsequent inventory management of 

the items delivered. For example, the 

contract line item may be for a desktop 

computer, but the actual items 

delivered, invoiced, and inventoried 

may reflect a separate monitor, 

keyboard, and central processing unit. 

The resultant misalignment of 

transaction detail (i.e., contract line 

item, invoiced unit, delivery and 

inventory unit) is the cause of failures 

in the electronic processes of the DoD’s 

business enterprise requiring manual 

intervention with potential delays in 

contractor payment. 

To address this recurring problem, 

this rule establishes and standardizes a 

process to enable offerors to propose 

changes in their offer to the 

solicitation’s line item structure. 

Establishing such a process is a first step 

towards managing variation in these 

transactions by eliminating or reducing 

manual intervention. 

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. 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 certifies that this final rule will 

not 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 the rule does not impose any 

additional requirements on small 

businesses. Further, this change does 

not add to, or delete from existing 

requirements or authorities for entities 

to include alternative line item 

structures in their offers. This rule is 

formalizing a process to facilitate 

offerors’ ability to request changes to the 

line item structure. 

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). 


sroberts on DSK5SPTVN1PROD with RULES