30824 Federal Register / Vol. 83, No. 126 / Friday, June 29, 2018 / Rules and Regulations 

DEPARTMENT OF DEFENSE 

Defense Acquisition Regulations 

System 

48 CFR Parts 208, 212, 214, 215, 216, 

225, and 252 

[Docket DARS–2018–0033] 

RIN 0750–AJ93 

Defense Federal Acquisition 

Regulation Supplement: Repeal of 

DFARS Clause ‘‘Pricing Adjustments’’ 

(DFARS Case 2018–D032) 

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 a clause that is 

duplicative of an existing Federal 

Acquisition Regulation (FAR) clause 

rendering the DFARS clause 

unnecessary. 

DATES: Effective June 29, 2018. 

FOR FURTHER INFORMATION CONTACT: Ms. 

Carrie Moore, telephone 571–372–6093. 

SUPPLEMENTARY INFORMATION: 

I. Background 

DoD is amending the DFARS to 

remove the DFARS clause 252.215– 

7000, Pricing Adjustments, the clause 

prescription at DFARS 215.408, and the 

associated cross-references at DFARS 

208.404, 212.301, 214.201, 216.506, 

225.870, and introductory text for 

various 252.215 clauses to adjust clause 

prescription references. 

The DFARS clause is included in 

solicitations and contracts that contain 

the FAR clause 52.215–11, Price 

Reduction for Defective Certified Cost or 

Pricing Data—Modifications, FAR 

52.215–12, Subcontractor Certified Cost 

or Pricing Data, or FAR 52.215–13, 

Subcontractor Certified Cost or Pricing 

Data—Modifications. DFARS clause 

252.215–7000 defines the term ‘‘pricing 

adjustment’’ as the aggregate increases 

and/or decreases in cost plus applicable 

profits. This term is adequately defined 

in the associated FAR clauses and this 

DFARS clause can be removed. 

The removal of this DFARS text 

supports a recommendation from the 

DoD Regulatory Reform Task Force. On 

February 24, 2017, the President signed 

Executive Order (E.O.) 13777, 

‘‘Enforcing the Regulatory Reform 

Agenda,’’ which established a Federal 

policy ‘‘to alleviate unnecessary 

regulatory burdens’’ on the American 

people. In accordance with E.O. 13777, 

DoD established a Regulatory Reform 

Task Force to review and validate DoD 

regulations, including the DFARS. A 

public notification of the establishment 

of the DFARS Subgroup to the DoD 

Regulatory Reform Task Force, for the 

purpose of reviewing DFARS provisions 

and clauses, was published in the 

Federal Register at 82 FR 35741 on 

August 1, 2017, and requested public 

input. No public comments were 

received on this provision. 

Subsequently, the DoD Task Force 

reviewed the requirements of DFARS 

clause 252.215–7000, Pricing 

Adjustments, and determined that the 

DFARS coverage was redundant and 

recommended removal. 

II. Applicability to Contracts at or 

Below the Simplified Acquisition 

Threshold and for Commercial Items, 

Including Commercially Available Offthe-Shelf Items 

This rule does not add any new 

solicitation provisions or contract 

clauses. This rule only removes obsolete 

DFARS clause 252.215–7010, Pricing 

Adjustments. Therefore, the rule does 

not impose any new requirements on 

contracts at or below the simplified 

acquisition threshold and for 

commercial items, including 

commercially available off-the-shelf 

items. 

III. Executive Orders 12866 and 13563 

Executive Order (E.O.) 12866, 

Regulatory Planning and Review; and 

E.O. 13563, Improving Regulation and 

Regulatory Review, 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 Management 

and Budget, Office of Information and 

Regulatory Affairs (OIRA), has 

determined that this is not a significant 

regulatory action as defined under 

section 3(f) of E.O. 12866 and, therefore, 

was not subject to review under section 

6(b). This rule is not a major rule as 

defined at 5 U.S.C. 804(2). 

IV. Executive Order 13771 

This rule is not an E.O. 13771, 

Reducing Regulation and Controlling 

Regulatory Costs, regulatory action, 

because this rule is not significant under 

E.O. 12866. 

V. Publication of This Final Rule for 

Public Comment Is Not Required by 

Statute 

The statute that applies to the 

publication of the Federal Acquisition 

Regulation (FAR) is the Office of Federal 

Procurement Policy statute (codified at 

title 41 of the United States Code. 

Specifically, 41 U.S.C 1707(a)(1) 

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 DoD is not issuing a 

new regulation; rather, this rule merely 

removes an obsolete clause from the 

DFARS. 

VI. Regulatory Flexibility Act 

Because a notice of proposed 

rulemaking and an opportunity for 

public comment are not required to be 

given for this rule under 41 U.S.C. 

1707(a)(1) (see section V. of this 

preamble), the analytical requirements 

of the Regulatory Flexibility Act (5 

U.S.C. 601 et seq.) are not applicable. 

Accordingly, no regulatory flexibility 

analysis is required and none has been 

prepared. 

VII. 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 208, 

212, 214, 215, 216, 225, and 252 

Government procurement. 

Amy G. Williams, 

Deputy, Defense Acquisition Regulations 

System. 

Therefore, 48 CFR parts 208, 212, 214, 

215, 216, 225, and 252 are amended as 

follows: 

■ 1. The authority citation for parts 208, 

212, 214, 215, 216, 225, and 252 

continues to read as follows: 

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

chapter 1. 


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Federal Register / Vol. 83, No. 126 / Friday, June 29, 2018 / Rules and Regulations 30825 

PART 208—REQUIRED SOURCES OF 

SUPPLIES AND SERVICES 

208.404 [Amended] 

■ 2. Amend section 208.404, in 

paragraph (a)(iv), by removing 

‘‘215.408(3)’’ and ‘‘215.408(4)’’ and 

adding ‘‘215.371–6’’ and ‘‘215.408(3)’’ 

in their place, respectively. 

PART 212—ACQUISITION OF 

COMMERCIAL ITEMS 

212.301 [Amended] 

■ 3. Amend section 212.301 by— 

■ a. In paragraph (f)(vi)(A), removing 

‘‘215.408(3)(i)’’ and adding 

‘‘215.408(2)(i)’’ in its place; 

■ b. In paragraph (f)(vi)(B), removing 

‘‘215.408(3)(ii)’’ and adding 

‘‘215.408(2)(ii)’’ in its place; 

■ c. In paragraph (f)(vi)(D), removing 

‘‘215.408(4)’’ and adding ‘‘215.408(3)’’ 

in its place; 

■ d. In paragraph (f)(vi)(E), removing 

‘‘215.408(6)(i)’’ and adding 

‘‘215.408(5)(i)’’ in its place; 

■ e. In paragraph (f)(vi)(E)(1), removing 

‘‘215.408(6)(i)(A)’’ and adding 

‘‘215.408(5)(i)(A)’’ in its place; and 

■ f. In paragraph (f)(vi)(E)(2), removing 

‘‘215.408(6)(i)(B)’’ and adding 

‘‘215.408(5)(i)(B)’’ in its place. 

PART 214—SEALED BIDDING 

214.201–6 [Amended] 

■ 4. Amend section 214.201–6 by 

removing ‘‘215.408(3) and (4)’’ and 

adding ‘‘215.371–6 and 215.408(3)’’ in 

its place. 

PART 215—CONTRACTING BY 

NEGOTIATION 

215.408 [Amended] 

■ 5. Amend section 215.408 by— 

■ a. Removing paragraph (1); 

■ b. Redesignating paragraphs (2) 

through (7) as paragraphs (1) through 

(6); 

■ c. In newly redesignated paragraph 

(2)(i)(A)(2), removing ‘‘paragraph 

(3)(i)(A)(1)’’ and adding ‘‘paragraph 

(2)(i)(A)(1) of this section’’ in its place; 

and 

■ d. In newly redesignated paragraphs 

(2)(ii)(A)(2) and (2)(ii)(A)(3)(i), removing 

‘‘paragraph (3)(ii)(A) (1)’’ and adding 

‘‘paragraph (2)(ii)(A)(1) of this section’’ 

in its place. 

PART 216—TYPES OF CONTRACTS 

216.506 [Amended] 

■ 6. Amend section 216.506, in 

paragraph (S–70), by removing 

‘‘215.408(3) and (4)’’ and adding 

‘‘215.371–6 and 215.408(3)’’ in its place. 

PART 225—FOREIGN ACQUISITION 

225.870–4 [Amended] 

■ 7. Amend section 225.870–4, in 

paragraph (c)(3), by removing 

‘‘215.408(3)(i) and (ii)’’ and adding 

‘‘215.408(2)(i) and (ii)’’ in its place. 

PART 252—SOLICITATION 

PROVISIONS AND CONTRACT 

CLAUSES 

252.215–7000 [Removed and Reserved] 

■ 8. Remove and reserve 252.215–7000. 

252.215–7002 [Amended] 

■ 9. Amend section 252.215–7002, in 

the introductory text, by removing 

‘‘215.408(2)’’ and adding ‘‘215.408(1)’’ 

in its place. 

252.215–7003 [Amended] 

■ 10. Amend section 252.215–7003, in 

the introductory text, by removing 

‘‘215.408(3)(i)’’ and adding 

‘‘215.408(2)(i)’’ in its place. 

252.215–7004 [Amended] 

■ 11. Amend section 252.215–7004, in 

the introductory text, by removing 

‘‘215.408(3)(ii)’’ and adding 

‘‘215.408(2)(ii)’’ in its place. 

252.215–7008 [Amended] 

■ 12. Amend section 252.215–7008, in 

the introductory text, by removing 

‘‘215.408(4)’’ and adding ‘‘215.408(3)’’ 

in its place. 

252.215–7009 [Amended] 

■ 13. Amend section 252.215–7009 by, 

in the Basic clause introductory text, 

removing ‘‘215.408(5)’’ and adding 

‘‘215.408(4)’’ in its place. 

252.215–7010 [Amended] 

■ 14. Amend section 252.215–7010 by— 

■ a. In the Basic clause introductory 

text, removing ‘‘215.408(6)(i) and 

(6)(i)(A)’’ and adding ‘‘215.408(5)(i) and 

(5)(i)(A)’’ in its place; and 

■ b. In the Alternate I clause 

introductory text, removing 

‘‘215.408(6)(i) and (6)(i)(B)’’ and adding 

‘‘215.408(5)(i) and (5)(i)(B)’’ in its place. 

252.215–7011 [Amended] 

■ 15. Amend section 252.215–7011, in 

the introductory text, by removing 

‘‘215.408(6)(ii)’’ and adding 

‘‘215.408(5)(ii)’’ in its place. 

252.215–7012 [Amended] 

■ 16. Amend section 252.215–7012, in 

the introductory text, by removing 

‘‘215.408(6)(iii)’’ and adding 

‘‘215.408(5)(iii)’’ in its place. 

252.215–7013 [Amended] 

■ 17. Amend section 252.215–7013, in 

the introductory text, by removing 

‘‘215.408(7)’’ and adding ‘‘215.408(6)’’ 

in its place. 

[FR Doc. 2018–14044 Filed 6–28–18; 8:45 am] 

BILLING CODE 5001–06–P 

DEPARTMENT OF DEFENSE 

Defense Acquisition Regulations 

System 

48 CFR Parts 202, 215, 225, and 252 

[Docket–DARS–2015–0027] 

RIN 0750–AI59 

Defense Federal Acquisition 

Regulation Supplement: Offset Costs 

(DFARS Case 2015–D028) 

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 implement a section of the 

National Defense Authorization Act for 

Fiscal Year 2016 related to costs 

associated with indirect offsets under 

foreign military sales (FMS) agreements 

and expand on the prior interim rule 

guidance related to FMS offset costs. 

DATES: Effective June 29, 2018. 

FOR FURTHER INFORMATION CONTACT: Mr. 

Mark Gomersall, telephone 571–372– 

6176. 

SUPPLEMENTARY INFORMATION: 

I. Background 

DoD published an interim rule in the 

Federal Register (80 FR 31309) on June 

2, 2015, to amend the DFARS to state 

that all offset costs that involve benefits 

provided by the U.S. defense contractor 

to the FMS customer that are unrelated 

to the item being purchased under the 

Letter of Offer and Acceptance (LOA) 

(indirect offset costs) are deemed 

reasonable, with no further analysis 

necessary on the part of the contracting 

officer, provided that the U.S. defense 

contractor submits to the contracting 

officer a signed offset agreement or other 

documentation showing that the FMS 

customer has made the provision of an 

indirect offset of a certain dollar value 

a condition of the FMS acquisition. 

To expand on the interim rule 

guidance and incorporate the 

requirements of section 812 of the 

National Defense Authorization Act 

(NDAA) for Fiscal Year (FY) 2016, DoD 


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