Federal Register / Vol. 83, No. 165 / Friday, August 24, 2018 / Rules and Regulations 42787 

Authority: 21 U.S.C. 321(q), 346a and 371. 

■ 2. In § 180.910, revise the zinc oxide 

entry in the table to read as follows: 

§ 180.910 Inert ingredients used pre- and 

post-harvest; exemptions from the 

requirement of a tolerance. 

* * * * * 

Inert ingredients Limits Uses 

*******

Zinc oxide (CAS Reg. No. 

1314–13–2).

Not more than 15% by weight in pesticide formulations when used as stabilizer ....... Coating agent, stabilizer. 

*******

[FR Doc. 2018–18402 Filed 8–23–18; 8:45 am] 

BILLING CODE 6560–50–P 

DEPARTMENT OF DEFENSE 

Defense Acquisition Regulations 

System 

48 CFR Part 231 

[Docket DARS–2017–0013] 

RIN 0750–AJ51 

Defense Federal Acquisition 

Regulation Supplement: Repeal of 

Independent Research and 

Development Technical Interchange 

(DFARS Case 2017–D041) 

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 requirement for 

major contractors to have a technical 

interchange with the Government prior 

to generating independent research and 

development costs. 

DATES: Effective August 24, 2018. 

FOR FURTHER INFORMATION CONTACT: Ms. 

Carrie Moore, telephone 571–372–6093. 

SUPPLEMENTARY INFORMATION: 

I. Background 

DoD is amending the DFARS to 

remove the text at DFARS 231.205– 

18(c)(iii)(C)(4), which requires major 

contractors to engage in and document 

a technical interchange with the 

Government, prior to generating 

independent research and development 

(IR&D) costs for IR&D projects initiated 

in fiscal year 2017 and later, in order for 

those costs to be determined allowable. 

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 notice 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. No public comments were 

received on this DFARS requirement in 

response to the notice. Subsequently, 

the DoD Task Force reviewed the 

requirements of DFARS 231.205– 

18(c)(iii)(C)(4) and determined that the 

DFARS coverage was outmoded and 

recommended removal, since requiring 

a technical interchange between the 

Government and major contractors is 

unnecessary. The objective of the 

interchange can be met through other 

means. 

II. Applicability to Contracts At or 

Below the Simplified Acquisition 

Threshold and for Commercial Items, 

Including Commercially Available Offthe-Shelf Items 

This rule only removes an unneeded 

requirement in the DFARS that required 

a technical interchange between the 

Government and certain contractors. 

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 offthe-shelf items. 

III. Expected Cost Savings 

Effective November 4, 2016, DFARS 

231.205–18(c)(iii)(C)(4) was revised to 

require contractors to engage in a 

technical interchange with the 

Government, prior to the generation of 

IR&D costs for IR&D projects initiated in 

fiscal year 2017 and later, in order for 

those costs to be allowable. This 

requirement causes the contractor to 

expend time preparing for a discussion, 

contacting appropriate Government 

personnel, and discussing the IR&D 

project. Since contractors commonly 

pool all of their IR&D project costs to 

develop a single billing rate, this 

requirement would necessitate 

contractors having to discuss all of the 

IR&D projects contained in their billing 

rate. While some contractors may have 

a single project, many have close to 100 

or more, which could be significantly 

burdensome. 

This requirement applies to major 

contractors seeking to include IR&D 

costs as part of their reimbursable costs 

under a contract. Major contractors are 

defined as those whose covered 

segments allocated a total of more than 

$11 million in IR&D and bid and 

proposal costs to covered contracts 

during the preceding fiscal year; 

therefore, small entities are not expected 

to meet the definition of a major 

contractor or to be impacted. IR&D costs 

are most commonly included in 

noncommercial, cost-type contracts that 

are subject to certified cost and pricing 

data and cost accounting standards. 

This rule removes the requirement for 

major contractors to have a technical 

interchange with the Government prior 

to generating IR&D costs. Removal of 

this requirement will result in freeing 

contractors to pursue IR&D projects 

without including the Government in 

those preliminary decisions. 

DoD has performed a regulatory cost 

analysis on this rule. The following is a 

summary of the estimated public 

annualized cost savings, calculated in 

2016 dollars at a 7-percent discount rate 

in perpetuity: 

Annualized 7% ¥$1.7 million 

Present Value 7% ¥$24.0 million 

To access the full Regulatory Cost 

Analysis for this rule, go to the Federal 

eRulemaking Portal at 

www.regulations.gov, search for 

‘‘DFARS Case 2017–D041,’’ click ‘‘Open 

Docket,’’ and view ‘‘Supporting 

Documents.’’ 


sradovich on DSK3GMQ082PROD with RULES
42788 Federal Register / Vol. 83, No. 165 / Friday, August 24, 2018 / Rules and Regulations 

IV. 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. 

V. Executive Order 13771 

This final rule is considered to be an 

E.O. 13771, Reducing Regulation and 

Controlling Regulatory Costs, 

deregulatory action. Details on the 

estimated cost savings can be found in 

section III. of this preamble. 

VI. 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 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 requirement from 

the DFARS. 

VII. 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. 

VIII. Paperwork Reduction Act 

The Paperwork Reduction Act (44 

U.S.C. chapter 35) does apply; however, 

these changes to the DFARS do not 

impose additional information 

collection requirements to the 

paperwork burden previously approved 

under OMB Control Number 0704–0483, 

entitled ‘‘Independent Research and 

Development Technical Descriptions.’’ 

Repeal of this rule does not impact the 

IR&D reporting that continues to be 

required annually, when the IR&D 

project is completed, under OMB 

Control Number 0704–0483. 

List of Subjects in 48 CFR Part 231 

Government procurement. 

Jennifer Lee Hawes, 

Regulatory Control Officer, Defense 

Acquisition Regulations System. 

Therefore, 48 CFR part 231 is 

amended as follows: 

PART 231—CONTRACT COST 

PRINCIPLES AND PROCEDURES 

■ 1. The authority citation for part 231 

continues to read as follows: 

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

1. 

231.205–18 [Amended] 

■ 2. Amend section 231.205–18 by: 

■ a. Adding ‘‘and’’ to the end of 

paragraph (c)(iii)(C)(2); 

■ b. Removing ‘‘; and’’ from the end of 

paragraph (c)(iii)(C)(3) and adding a 

period in its place; and 

■ c. Removing paragraph (c)(iii)(C)(4). 

[FR Doc. 2018–18239 Filed 8–23–18; 8:45 am] 

BILLING CODE 5001–06–P 

DEPARTMENT OF DEFENSE 

Defense Acquisition Regulations 

System 

48 CFR Parts 247 and 252 

[Docket DARS–2018–0041] 

RIN 0750–AK04 

Defense Federal Acquisition 

Regulation Supplement: Repeal of 

DFARS Clause ‘‘Removal of 

Contractor’s Employees’’ (DFARS Case 

2018–D042) 

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 no 

longer necessary. 

DATES: Effective August 24, 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 252.247– 

7006, Removal of Contractor’s 

Employees, and the associated clause 

prescription at DFARS 247.270–4. The 

DFARS clause served as an agreement 

from the contractor to only use 

experienced, responsible, and capable 

people to perform the work under the 

stevedoring contract. The clause also 

advised the contractor that the 

contracting officer may require the 

contractor to remove from the job, 

employees who endanger persons or 

property or whose employment is 

inconsistent with the interest of military 

security. 

II. Discussion and Analysis 

The information conveyed in DFARS 

clause 252.247–7006 is directly related 

to performance of the work under a 

stevedoring contract. It is more 

appropriate to define what the 

Government considers an experienced, 

responsible, and capable employee to be 

in a performance work statement, not a 

contract clause, because those 

requirements may change depending on 

various factors of the work being 

performed. If the need to remove 

employees from performing under the 

contract exists, it should be identified in 

the performance work statement. The 

removal and replacement of employees 

directly relates to the contractor’s ability 

to perform and staff the work under the 

contract. As such, this DFARS clause is 

unnecessary and 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 notice 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. One 

public comment was received on this 


sradovich on DSK3GMQ082PROD with RULES