Federal Register / Vol. 78, No. 211 / Thursday, October 31, 2013 / Rules and Regulations 65219 

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 impacts only those 

incumbent contractors for which an insourcing determination has been made. 

The DFARS change relates solely to a 

notification requirement of a decision, 

made outside of acquisition regulatory 

channels, to convert a contracted 

function to performance by DoD civilian 

employees. The impact of this interim 

rule will be to heighten the awareness 

of impacted firms. An initial regulatory 

flexibility analysis has been performed 

and is summarized as follows: 

This action implements section 938 of 

the National Defense Authorization Act 

(NDAA) for Fiscal Year 2012 regarding 

private sector notification of in-sourcing 

actions. Section 938 of the NDAA 

requires the Secretary of Defense to 

establish procedures for the timely 

notification of any contractor that 

performs a function that the Secretary 

plans to convert (in-source) to 

performance by DoD civilian employees 

and to also provide the congressional 

defense committees a copy of any such 

notification. 

The interim rule will apply to all 

small business concerns that have 

contracts with DoD agencies that are 

being in-sourced. The most recent data 

from the DoD Office of Small Business 

Programs for fiscal years 2009 thru 2012 

shows an average of 59,362 small 

business concerns have contracts with 

DoD. The degree of potential impact of 

this rule to those concerns, however, is 

unknown since there is no way to gauge 

in advance the extent of any future insourcing decisions. 

There are no projected reporting, 

recordkeeping, and other compliance 

requirements associated with this rule. 

The rule does not duplicate, overlap, or 

conflict with any other Federal rules. 

DoD has not identified any alternatives 

that would fulfill the requirements of 

the statute and reduce impact on small 

businesses. Any impact of the rule is 

expected to be beneficial to small 

businesses, by giving them timely 

notification of planned in-sourcing 

actions. 

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–D036), in 

correspondence. 

V. 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). 

VI. Determination To Issue an Interim 

Rule 

A determination has been made under 

the authority of the Secretary of 

Defense, pursuant to 41 U.S.C. 1707(d), 

that urgent and compelling reasons exist 

to promulgate this rule on an interim 

basis without prior opportunity for 

public comment. This action is 

necessary to implement section 938 of 

the National Defense Authorization Act 

(NDAA) for Fiscal Year 2012, which 

requires DoD to provide notification to 

the private sector of in-sourcing action 

determinations. Section 938 requires the 

Secretary of Defense to establish 

procedures for the timely notification of 

any incumbent contractor who performs 

a function that the Secretary plans to 

convert (in-source) to performance by 

DoD civilian employees. The 

notification must also be provided to the 

congressional defense committees. Insourcing decisions may have a 

significant economic effect on firms that 

have contracts with DoD. Firms that are 

not notified on a timely basis of an insourcing determination that impacts 

them have less time to prepare for lost 

revenue and to make staffing 

adjustments. The rule, in addition to 

ensuring that there will be timely 

notification to affected contractors, 

should help facilitate a more seamless 

transition in services when 

implementing in-sourcing requirements. 

Nonetheless, 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 Part 237 

Government procurement. 

Manuel Quinones, 

Editor, Defense Acquisition Regulations 

System. 

Therefore, 48 CFR part 237 are 

amended as follows: 

PART 237—SERVICE CONTRACTING 

■ 1. The authority citation for 48 CFR 

part 237 continues to read as follows: 

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

chapter 1. 

■ 2. Section 237.102–79 is revised to 

read as follows: 

237.102–79 Private sector notification 

requirements in support of in-sourcing 

actions. 

In accordance with 10 U.S.C. 2463, 

contracting officers shall provide 

written notification to affected 

incumbent contractors of Government 

in-sourcing determinations. Notification 

shall be provided within 20 business 

days of the contracting officer’s receipt 

of a decision from the cognizant 

component in-sourcing program official. 

The notification will summarize the 

requiring official’s final determination 

as to why the service is being in-sourced 

and shall be coordinated with the 

component’s in-sourcing program 

official. No formal hiring or contractrelated actions may be initiated prior to 

such notification, except for preliminary 

internal actions associated with hiring 

or contract modification. The 

memorandum on private sector 

notification requirements in support of 

in-sourcing actions is available at PGI 

237.1, under the Supplemental 

Information tab. 

[FR Doc. 2013–25727 Filed 10–30–13; 8:45 am] 

BILLING CODE 5001–06–P 

DEPARTMENT OF DEFENSE 

Defense Acquisition Regulations 

System 

48 CFR Part 245 

RIN 0750–AI03 

Defense Federal Acquisition 

Regulation Supplement: Approval of 

Rental Waiver Requests (DFARS Case 

2013–D006) 

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 the Director of 

Defense Security Cooperation Agency 

from the approval process for waiver or 

reduction of charges for the use of 

Government property on work for 

foreign governments or international 

organizations. 

DATES: Effective October 31, 2013. 

FOR FURTHER INFORMATION CONTACT: 

Annette Gray, telephone 571–372–6093. 

SUPPLEMENTARY INFORMATION: 


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65220 Federal Register / Vol. 78, No. 211 / Thursday, October 31, 2013 / Rules and Regulations 

I. Discussion 

DoD is revising the DFARS to 

implement a policy that will allow 

contracting officers to approve requests 

for waiver or reduction of rental charges 

for the use of Government property on 

work for foreign governments or 

international organizations. Over the 

past year the Director of Defense 

Security Cooperation Agency (DSCA) 

has seen a significant increase in the 

number of requests with extremely low 

dollar values over the rental period. 

Currently, DSCA is required to approve 

requests in which the agency has no 

equities. This final rule will allow the 

contracting officer to process the request 

for waiver or reduction of charges for 

the use of Government property on work 

for foreign governments or international 

organizations without a separate review 

by DSCA. Removing DSCA from the 

approval process will expedite 

contractors’ requests, while still 

protecting the interests of the 

Government. 

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 changes are not substantive 

and only modify 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). 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 

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 

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 245 

Government procurement. 

Manuel Quinones, 

Editor, Defense Acquisition Regulations 

System. 

Therefore, 48 CFR part 245 is 

amended as follows: 

PART 245—GOVERNMENT PROPERTY 

■ 1. The authority citation for 48 CFR 

part 245 continues to read as follows: 

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

chapter 1. 

■ 2. Section 245.302 is amended by 

revising paragraph (3)(ii) to read as 

follows: 

245.302 Contracts with foreign 

governments or international organizations. 

* * * * * 

(3) * * * 

(ii) Requests for waiver or reduction 

of charges for the use of Government 

property on work for foreign 

governments or international 

organizations shall be submitted to the 

contracting officer, who is authorized to 

approve the requests in consultation 

with the appropriate functional 

specialist. 

[FR Doc. 2013–25729 Filed 10–30–13; 8:45 am] 

BILLING CODE 5001–06–P 

DEPARTMENT OF DEFENSE 

Defense Acquisition Regulations 

System 

48 CFR Part 252 

RIN 0750–AI09 

Defense Federal Acquisition 

Regulation Supplement: New 

Designated Country—Croatia (DFARS 

Case 2013–D031) 

AGENCY: Defense Acquisition 

Regulations System, Department of 

Defense (DoD). 

ACTION: Final rule. 

SUMMARY: DoD is issuing a final rule to 

amend the Defense Federal Acquisition 

Regulation Supplement (DFARS) to add 

Croatia as a new designated country 

under the World Trade Organization 

Government Procurement Agreement 

(WTO GPA). Croatia joined the 

European Union, which is a party to the 

WTO GPA, on July 1, 2013. 

DATES: Effective October 31, 2013. 

FOR FURTHER INFORMATION CONTACT: Ms. 

Annette Gray, Defense Acquisition 

Regulations System, OUSD 

(AT&L)DPAP/DARS, Room 3B855, 3060 

Defense Pentagon, Washington, DC 

20301–3060. Telephone 571–372–6093; 

facsimile 571–372–6101. 

SUPPLEMENTARY INFORMATION:

I. Background 

The European Union is a party to the 

WTO GPA and has assumed rights and 

obligations under the WTO GPA on 

behalf of its member states. On July 1, 

2013, Croatia became a member of the 

European Union. Therefore, the 

European Union has committed to 

assume rights and obligations on behalf 

of Croatia under the WTO GPA. On June 

27, 2012, the WTO Committee on 

Government Procurement accepted the 

European Union notification indicating 

Croatia’s coverage. The United States, 

which is also a party to the WTO GPA, 

has agreed to waive discriminatory 

purchasing requirements for eligible 

products and suppliers of Croatia (78 FR 

60368). 

Therefore, this rule adds Croatia to 

the list of World Trade Organization 

Government Procurement Agreement 

countries wherever it appears in the 

DFARS, as part of the definition of 

‘‘designated country.’’ 

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 


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