42826 Federal Register / Vol. 83, No. 165 / Friday, August 24, 2018 / Proposed Rules 

(d) * * * 

(1) No photovoltaic devices will be 

utilized in performance of the contract, 

or such photovoltaic devices have an 

estimated value that does not exceed the 

micro-purchase threshold. 

(2) If more than the micro-purchase 

threshold but less than $25,000— 

* * * * * 

(3) If $25,000 or more but less than 

$80,317— 

(i) The offeror certifies that each 

photovoltaic device to be utilized in 

performance of the contract is a 

domestic photovoltaic device; 

(ii) The offeror certifies that each 

photovoltaic device to be utilized in 

performance of the contract is a 

Canadian photovoltaic device or a 

qualifying country photovoltaic device 

[Offeror to specify country of origin 

lllll]; or 

(iii) The foreign (other than Canadian 

or qualifying country) photovoltaic 

devices to be utilized in performance of 

the contract are the product of 

lllll. [Offeror to specify country 

of origin, if known, and provide 

documentation that the cost of a 

domestic photovoltaic device would be 

unreasonable in comparison to the cost 

of the proposed foreign photovoltaic 

device, i.e. that the price of the foreign 

photovoltaic device plus 50 percent is 

less than the price of a comparable 

domestic photovoltaic device.] 

(4) If $80,317 or more but less than 

$100,000— 

(i) The offeror certifies that each 

photovoltaic device to be utilized in 

performance of the contract is a 

domestic photovoltaic device; 

(ii) The offeror certifies that each 

photovoltaic device to be utilized in 

performance of the contract is a Free 

Trade Agreement country photovoltaic 

device (other than a Bahrainian, Korean, 

Moroccan, Panamanian, or Peruvian 

photovoltaic device) or a qualifying 

country photovoltaic device [Offeror to 

specify country of origin lllll]; or 

(iii) The offered foreign photovoltaic 

devices (other than those from countries 

listed in paragraph (d)(4)(ii) of this 

provision) are the product of 

lllll. [Offeror to specify country 

of origin, if known, and provide 

documentation that the cost of a 

domestic photovoltaic device would be 

unreasonable in comparison to the cost 

of the proposed foreign photovoltaic 

device, i.e. that the price of the foreign 

photovoltaic device plus 50 percent is 

less than the price of a comparable 

domestic photovoltaic device.] 

(5) If $100,000 or more but less than 

$180,000— 

(i) The offeror certifies that each 

photovoltaic device to be utilized in 

performance of the contract is a 

domestic photovoltaic device; 

(ii) The offeror certifies that each 

photovoltaic device to be utilized in 

performance of the contract is a Free 

Trade Agreement country photovoltaic 

device (other than a Bahrainian, 

Moroccan, Panamanian, or Peruvian 

photovoltaic device) or a qualifying 

country photovoltaic device [Offeror to 

specify country of origin lllll]; or 

(iii) The offered foreign photovoltaic 

devices (other than those from countries 

listed in paragraph (d)(5)(ii) of this 

provision) are the product of 

lllll. [Offeror to specify country 

of origin, if known, and provide 

documentation that the cost of a 

domestic photovoltaic device would be 

unreasonable in comparison to the cost 

of the proposed foreign photovoltaic 

device, i.e. that the price of the foreign 

photovoltaic device plus 50 percent is 

less than the price of a comparable 

domestic photovoltaic device.] 

(6) If $180,000 or more, the Offeror 

certifies that each photovoltaic device to 

be used in performance of the contract 

is— 

(i) A U.S.-made photovoltaic device; 

or 

(ii) A designated country photovoltaic 

device or a qualifying country 

photovoltaic device. [Offeror to specify 

country of origin lllll.] 

(End of provision) 

[FR Doc. 2018–18240 Filed 8–23–18; 8:45 am] 

BILLING CODE 5001–06–P 

DEPARTMENT OF DEFENSE 

Defense Acquisition Regulations 

System 

48 CFR Parts 212, 247, and 252 

[Docket DARS–2018–0040] 

RIN 0750–AJ94 

Defense Federal Acquisition 

Regulation Supplement: Modification 

of DFARS Clause ‘‘Transportation of 

Supplies by Sea’’ (DFARS Case 2018– 

D028) 

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 

modify the text of an existing DFARS 

clause to include the text of another 

DFARS clause, in order to streamline 

instructions to contractors regarding 

notifications of transportation of 

supplies by sea. 

DATES: Comments on the proposed rule 

should be submitted in writing to the 

address shown below on or before 

October 23, 2018, to be considered in 

the formation of a final rule. 

ADDRESSES: Submit comments 

identified by DFARS Case 2018–D028, 

using any of the following methods: 

Æ Federal eRulemaking Portal: 

http://www.regulations.gov. Search for 

‘‘DFARS Case 2018–D028’’. Select 

‘‘Submit a Comment Now’’ and follow 

the instructions provided to submit a 

comment. Please include ‘‘DFARS Case 

2018–D028’’ on any attached document. 

O Email: osd.dfars@mail.mil. Include 

DFARS Case 2018–D028 in the subject 

line of the message. 

Æ Fax: 571–372–6094. 

Æ Mail: Defense Acquisition 

Regulations System, Attn: Carrie Moore, 

OUSD(A&S)DPC/DARS, Room 3B941, 

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). 

FOR FURTHER INFORMATION CONTACT: Ms. 

Carrie Moore, telephone 571–372–6093. 

SUPPLEMENTARY INFORMATION: 

I. Background 

This rule proposes to modify DFARS 

clause 252.247–7023, Transportation of 

Supplies By Sea, to include the 

instructions currently specified in 

DFARS clause 252.247–7024, 

Notification of Supplies By Sea. 

Combining these clauses will result in 

DFARS clause 252.247–7024 being 

removed. 

II. Discussion and Analysis 

DFARS provision 252.247–7022, 

Representation of Extent of 

Transportation By Sea, is included in 

solicitations and requires an offeror to 

represent with its offer whether it 

anticipates that supplies will or will not 

be transported by sea in the 

performance of the contract. 

DFARS clause 252.247–7023 is 

included in all contracts, except for 

those that directly purchase ocean 

transportation services, and provides 

contractors with terms and conditions 

that apply when transporting supplies 

by sea under the contract. 

DFARS clause 252.247–7024, 

Notification of Transportation of 


sradovich on DSK3GMQ082PROD with PROPOSALS
Federal Register / Vol. 83, No. 165 / Friday, August 24, 2018 / Proposed Rules 42827 

Supplies By Sea, is included in 

contracts when the contractor indicated 

in DFARS provision 252.247–7022 that 

it did not anticipate transporting 

supplies by sea. The clause requires the 

contractor to notify the Government in 

the event that, during performance of 

the contract, the contractor learns that 

supplies will be transported by sea, and 

requires the contractor to comply with 

the terms and conditions in DFARS 

clause 252.247–7023. 

Since DFARS clause 252.247–7023 is 

included in all contracts, and DFARS 

clause 252.247–7024 is associated with 

the requirements of 252.247–7023, the 

text of the two clauses can be combined 

to help minimize the number of clauses 

contained in the contract, while still 

maintaining the intent of both clauses. 

The modification 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. The 

DoD Task Force reviewed the 

requirements of DFARS clause 252.247– 

7023 and 252.247–7024 and determined 

that the clauses could be combined. 

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. Two respondents submitted a 

public comment on these clauses 

summarized as follows: 

Comment: Both respondents 

recommended DoD remove these 

clauses, as they are based on the 

requirements of the Cargo Preference 

Act of 1904 (10 U.S.C. 2631), which was 

written at a time before many modern 

forms of cargo transportation were 

invented and overly burdens the DoD 

supply chain to use US-flag ships. The 

respondents also suggested that DoD 

follow the less burdensome Cargo 

Preference Act of 1954 (46 U.S.C. 

1241(b)). 

Response: DoD must comply with the 

requirements of 10 U.S.C. 2631. 

Currently, 10 U.S.C. 2631 requires 100 

percent of all items for or owned by DoD 

that require transportation by sea be 

carried exclusively on U.S. flag vessels. 

This cargo policy helps retain and 

encourage a privately owned and 

operated U.S.-flag merchant marine, 

which benefits the U.S. in terms of trade 

and in times of emergency. It is not in 

the Government’s best interests to 

rescind 10 U.S.C. 2631. In the event that 

a U.S.-flag vessel is not available for 

timely shipment or the freight charges 

are excessive or unreasonable, the 

clause permits the contractor to submit 

a request to use a foreign-flag vessel to 

the contracting officer. For this reason, 

DoD does not concur that the DoD 

supply chain is necessarily 

overburdened by this Act. 

III. Applicability to Contracts at or 

Below the Simplified Acquisition 

Threshold and for Commercial Items, 

including Commercially Available Offthe-Shelf Items 

This rule does not create any new 

provisions or clauses. This rule merely 

consolidates existing instructions 

regarding notifications of transportation 

of supplies by sea in a single DFARS 

clause. 

IV. Executive Orders 12866 and 13563 

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). 

V. Executive Order 13771 

This proposed rule is not expected to 

be an E.O. 13771, Reducing Regulation 

and Controlling Regulatory Costs, 

regulatory action, because this proposed 

rule is not significant under E.O. 12866. 

VI. Regulatory Flexibility Act 

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 the rule is not creating 

any new requirements or changing any 

existing requirements for contractors. 

However, an initial regulatory flexibility 

analysis has been performed and is 

summarized as follows: 

The Department of Defense (DoD) is 

proposing to modify DFARS clause 

252.247–7023, Transportation of 

Supplies By Sea, to include the 

instructions currently specified in 

DFARS clause 252.247–7024, 

Notification of Supplies By Sea. 

Combining these clauses will result in 

DFARS clause 252.247–7024 being 

removed. 

The objective of this proposed rule is 

to streamline the instructions to 

contractors pertaining to the 

transportation of supplies by sea. The 

combination of these DFARS clauses 

supports a recommendation from the 

DoD Regulatory Reform Task Force 

under Executive Order 13771, Reducing 

Regulation and Controlling Regulatory 

Costs. 

Based on data available in the Federal 

Procurement Data System for fiscal year 

2016, DoD awarded approximately 

83,000 contract actions that included 

DFARS clause 252.247–7023 to 22,000 

unique entities, of which approximately 

39,000 awards (47 percent) were made 

to 15,000 unique small businesses 

entities (68 percent). 

This proposed rule does not include 

any new reporting, recordkeeping, or 

other compliance requirements for small 

businesses. 

This rule does not duplicate, overlap, 

or conflict with any other Federal rules. 

There are no known significant 

alternative approaches to the proposed 

rule that would meet the proposed 

objectives. 

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 2018–D028) in 

correspondence. 

VI. 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 0704–0245, 

titled: Defense Federal Acquisition 

Regulation Supplement (DFARS) Part 

247, Transportation and Related 

Clauses. 


sradovich on DSK3GMQ082PROD with PROPOSALS
42828 Federal Register / Vol. 83, No. 165 / Friday, August 24, 2018 / Proposed Rules 

List of Subjects in 48 CFR Parts 212, 

247, and 252 

Government procurement. 

Jennifer Lee Hawes, 

Regulatory Control Officer, Defense 

Acquisition Regulations System. 

Therefore, 48 CFR parts 212, 247, and 

252 are proposed to be amended as 

follows: 

■ 1. The authority citation for 48 CFR 

parts 212, 247, and 252 continues to 

read as follows: 

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

chapter 1. 

PART 212—ACQUISITION OF 

COMMERCIAL ITEMS 

212.301 [Amended] 

■ 2. Amend section 212.301 by: 

■ a. Removing paragraph (f)(xix)(D); 

■ b. Redesignating paragraphs (f)(xix)(E) 

through (H) as paragraphs (f)(xix)(D) 

through (G), respectively; 

■ c. In the newly redesignated 

paragraph (f)(xix)(D), removing 

‘‘247.574(d)’’ and adding ‘‘247.574(c)’’ 

in its place; 

■ d. In the newly redesignated 

paragraph (f)(xix)(E), removing 

‘‘247.574(e)’’ and adding ‘‘247.574(d)’’ 

in its place; 

■ e. In the newly redesignated 

paragraph (f)(xix)(F), removing 

‘‘247.574(f)’’ and adding ‘‘247.574(e)’’ in 

its place; and 

■ f. In the newly redesignated paragraph 

(f)(xix)(G), removing ‘‘U.S’’ and adding 

‘‘U.S.’’ in its place. 

PART 247—TRANSPORTATION 

247.574 [Amended] 

■ 3. Amend section 247.574 by: 

■ a. Removing paragraph (c); and 

■ b. Redesignating paragraphs (d) 

through (f) as paragraphs (c) through (e), 

respectively. 

PART 252—SOLICITATION 

PROVISIONS AND CONTRACT 

CLAUSES 

■ 4. Amend section 252.247–7023 by: 

■ a. In the clause heading, removing the 

date ‘‘(APR 2014)’’ and adding 

‘‘(DATE)’’ in its place; 

■ b. Redesignating paragraph (h) as 

paragraph (i); 

■ c. Adding a new paragraph (h); and 

■ d. In the newly redesignated 

paragraphs (i)(1) and (2), removing 

‘‘paragraph (h)’’ and adding ‘‘paragraph 

(i)’’ in both places; 

■ e. In Alternate I: 

■ i. In the clause heading, removing the 

date of ‘‘(APR 2014)’’ and adding 

‘‘(DATE)’’ in its place; 

■ ii. Redesignating paragraph (h) as 

paragraph (i); 

■ iii. Adding a new paragraph (h); and 

■ iv. In the newly redesignated 

paragraphs (i)(1) and (2), removing 

‘‘paragraph (h)’’ and adding ‘‘paragraph 

(i)’’ in both places; 

■ f. In Alternate II— 

■ i. In the clause heading, removing the 

date of ‘‘(APR 2014)’’ and adding 

‘‘(DATE)’’ in its place; 

■ ii. Redesignating paragraph (h) as 

paragraph (i); 

■ iii. Adding a new paragraph (h); and 

■ iv. In the newly redesignated 

paragraphs (i)(1) and (2), removing 

‘‘paragraph (h)’’ and adding ‘‘paragraph 

(i)’’ in both places. 

The additions read as follows: 

252.247–7023 Transportation of Supplies 

by Sea. 

* * * * * 

(h) If the Contractor has indicated by 

the response to the solicitation 

provision, Representation of Extent of 

Transportation by Sea, that it did not 

anticipate transporting by sea any 

supplies; however, after the award of 

this contract, the Contractor learns that 

supplies will be transported by sea, the 

Contractor— 

(1) Shall notify the Contracting Officer 

of that fact; and 

(2) Hereby agrees to comply with all 

the terms and conditions of this clause. 

* * * * * 

Alternate I. * * * 

* * * * * 

(h) If the Contractor has indicated by 

the response to the solicitation 

provision, Representation of Extent of 

Transportation by Sea, that it did not 

anticipate transporting by sea any 

supplies; however, after the award of 

this contract, the Contractor learns that 

supplies will be transported by sea, the 

Contractor— 

(1) Shall notify the Contracting Officer 

of that fact; and 

(2) Hereby agrees to comply with all 

the terms and conditions of this clause. 

* * * * * 

Alternate II. * * * 

* * * * * 

(h) If the Contractor has indicated by 

the response to the solicitation 

provision, Representation of Extent of 

Transportation by Sea, that it did not 

anticipate transporting by sea any 

supplies, but the contractor learns after 

the award of the contract that supplies 

will be transported by sea, the 

Contractor shall notify the Contracting 

Officer of that fact. 

* * * * * 

252.247–7024 [Removed and Reserved] 

■ 4. Remove and reserve section 

252.247–7024. 

252.247–7025 [Amended] 

■ 5. Amend section 252.247–7025, in 

the introductory text, by removing 

‘‘247.574(d)’’ and adding ‘‘247.574(c)’’ 

in its place. 

252.247–7026 [Amended] 

■ 6. Amend section 252.247–7026, in 

the introductory text, by removing 

‘‘247.574(e)’’ and adding ‘‘247.574(d)’’ 

in its place. 

252.247–7027 [Amended] 

■ 7. Amend section 252.247–7027, in 

the introductory text, by removing 

‘‘247.574(f)’’ and adding ‘‘247.574(e)’’ in 

its place. 

[FR Doc. 2018–18246 Filed 8–23–18; 8:45 am] 

BILLING CODE 5001–06–P 

DEPARTMENT OF DEFENSE 

Defense Acquisition Regulations 

System 

48 CFR Parts 225 and 252 

[Docket DARS–2018–0004] 

RIN 0750–AJ22 

Defense Federal Acquisition 

Regulation Supplement: Restrictions 

on Acquisitions From Foreign Sources 

(DFARS Case 2017–D011) 

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 

implement sections of the National 

Defense Authorization Act for Fiscal 

Year 2017 to apply domestic source 

requirements to acquisitions at or below 

the simplified acquisition threshold 

when acquiring athletic footwear to be 

furnished to enlisted members of the 

Armed Forces upon their initial entry 

into the Armed Forces, and add 

Australia and the United Kingdom to 

the definition of the ‘‘National 

Technology and Industrial Base.’’ 

DATES: Comments on the proposed rule 

should be submitted in writing to the 

address shown below on or before 

October 23, 2018, to be considered in 

the formation of a final rule. 

ADDRESSES: Submit comments 

identified by DFARS Case 2017–D011, 

using any of the following methods: 

Æ Federal eRulemaking Portal: http:// 

www.regulations.gov. Search for 


sradovich on DSK3GMQ082PROD with PROPOSALS