45490 Federal Register / Vol. 78, No. 145 / Monday, July 29, 2013 / Proposed Rules 

last three digits of this document in the 

docket number field. 

64. User assistance is available for 

eLibrary and the Commission’s Web site 

during normal business hours from the 

Commission’s Online Support at (202) 

502–6652 (toll free at 1–866–208–3676) 

or email at ferconlinesupport@ferc.gov, 

or the Public Reference Room at (202) 

502–8371, TTY (202) 502–8659. Email 

the Public Reference Room at 

public.referenceroom@ferc.gov. 

By direction of the Commission. 

Kimberly D. Bose, 

Secretary. 

[FR Doc. 2013–18000 Filed 7–26–13; 8:45 am] 

BILLING CODE 6717–01–P 

DEPARTMENT OF STATE 

48 CFR Parts 645 and 652 

[Public Notice 8395] 

RIN 1400–AC33 

Department of State Acquisition 

Regulation 

AGENCY: State Department. 

ACTION: Proposed rule. 

SUMMARY: This proposed rule will 

update the Department of State 

Acquisition Regulation (DOSAR) to 

conform to recent Federal Acquisition 

Regulation (FAR) changes and adds a 

new DOSAR clause and provision 

regarding reporting certain categories of 

Government-furnished and contractoracquired property. 

DATES: The Department will accept 

comments from the public up to 

September 27, 2013. 

ADDRESSES: You may submit comments 

by any of the following methods: 

• Email: RamirezIM2@state.gov. You 

must include the RIN in the subject line 

of your message. 

• Mail (paper, disk, or CD–ROM 

submissions): Ella Ramirez, Senior 

Procurement Analyst, Policy Division, 

Department of State, Office of the 

Procurement Executive, 2201 C Street 

NW., Suite 900, State Annex Number 

27, Washington, DC 20522–0602. 

• Fax: 703–875–6155. 

• Persons with access to the Internet 

may also view this notice and provide 

comments by going to the 

regulations.gov Web site at http:// 

www.regulations.gov/index.cfm and 

searching on docket DOS–2013–8395. 

FOR FURTHER INFORMATION CONTACT: Ella 

Ramirez, Senior Procurement Analyst, 

Policy Division, Department of State, 

Office of the Procurement Executive, 

2201 C Street NW., Suite 900, State 

Annex Number 27, Washington, DC 

20522–0602; email address: 

RamirezIM2@state.gov. 

SUPPLEMENTARY INFORMATION: 

Background 

This proposed rule provides updates 

to the DOSAR Government Property 

coverage to correspond with current 

FAR requirements and to implement 

Department of State policies regarding 

Government Property. The proposed 

rule would make the following changes: 

• Update DOSAR Part 645, 

Government Property to conform to the 

current version of FAR Part 45. FAR 

Part 45 was completely revised and restructured in 2007. Part 45 has been 

updated since, most recently in April 

2012. DOSAR Part 645 was last updated 

in 1999, and is therefore out of date. 

• Add a new DOSAR provision and 

clause regarding management and 

reporting of Government-furnished and 

contractor-acquired property. The 

provision at DOSAR 652.245–70, Status 

of Property Management System, was 

inadvertently left out of the previously 

approved information collection and it 

is now being added to update the 

DOSAR rule. The provision requests 

information from offerors regarding 

their property management systems in 

order to comply with FAR 45.201(c), 

which says that the solicitation shall 

require all offerors to submit a 

description of the offeror’s property 

management system, plan, and any 

customary commercial practices, 

voluntary consensus standards, or 

industry-leading practices and 

standards to be used by the offeror in 

managing Government property. 

Additionally, the Department must be 

able to determine if there will be a need 

for a review of the prospective 

contractor’s property control system. 

The new clause at DOSAR 652.245–71, 

Accounting for Government Property, 

requests quarterly reporting of U.S. 

Department of State capitalized property 

which consists of the following: 

Æ Highway motor vehicles and 

aircraft, regardless of cost, that are 

provided by the Government or 

acquired by a contractor for the 

Government; 

Æ Software exceeding $500,000 in 

value, including labor costs to develop, 

that is provided by the Government or 

acquired by a contractor for the account 

of the Government; and 

Æ Personal property greater than 

$25,000 (and not included in the above 

list) that is provided by the Government 

or acquired by the contractor for the 

account of the Government. The 

personal property must be complete 

within itself; must not lose its identity 

or become a component part of other 

property when put into use; and is of a 

durable nature with an estimated useful 

life expectancy to exceed two years. 

This clause is being added due to the 

need to obtain current data to support 

the Department of State (DOS) financial 

statements. From a financial accounting 

perspective, DOS must have a way of 

keeping track of its capital assets; 

therefore, this clause requires reporting 

of all personal property that meets the 

criteria for capitalization, as set forth in 

the Foreign Affairs Manual (FAM) at 4 

FAM 734.2. 

Regulatory Findings 

Administrative Procedure Act 

In accordance with provisions of the 

Administrative Procedure Act, the 

Department is publishing this proposed 

rule and inviting public comment. 

Regulatory Flexibility Act 

The Department of State, in 

accordance with the Regulatory 

Flexibility Act (5 U.S.C. 605(b)), has 

reviewed this regulation and, by 

approving it, certifies that this rule will 

not have a significant economic impact 

on a substantial number of small 

entities. This determination was based 

on the fact that the reporting 

requirements are targeted at a very 

narrow segment of government property 

and based on a determination that there 

are only 14 contractors who are 

currently subject to the reporting 

requirements of the clause. Only four of 

these are small business concerns. Thus, 

it was concluded that the rule will not 

have a significant economic impact on 

a substantial number of small entities. 

Unfunded Mandates Act of 1995 

This rule will not result in the 

expenditure by State, local, and tribal 

governments, in the aggregate, or by the 

private sector, of $100 million or more 

in any year and it will not significantly 

or uniquely affect small governments. 

Therefore, no actions were deemed 

necessary under the provisions of the 

Unfunded Mandates Act of 1995. 

Small Business Regulatory 

Enforcement Fairness Act of 1996 

This rule is not a major rule as 

defined by the Small Business 

Regulatory Enforcement Act of 1996 (5 

U.S.C. 801 et seq.). This rule will not 

result in an annual effect on the 

economy of $100 million or more; a 

major increase in costs or prices; or 

significant adverse effects on 

competition, employment, investment, 

productivity, innovation, or on the 

ability of United States-based 


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companies to compete with foreignbased companies in domestic and 

import markets. This determination was 

based on the fact that the reporting 

requirements are targeted at a very 

narrow segment of government 

property, and on a determination that 

there are only 14 contractors who are 

currently subject to the reporting 

requirements of the clause. The rule 

does not place new requirements on 

contract performance, but merely 

addresses reporting of existing 

information. 

Executive Orders 12866 and 13563 

Executive Orders (E.O.) 12866 and 

13563 direct agencies to assess 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 emphasized the importance 

of quantifying both costs and benefits, of 

reducing costs, of harmonizing rules, 

and of promoting flexibility. The 

Department of State does not consider 

this rule to be a ‘‘significant regulatory 

action’’ under Executive Order 12866, 

section 3(f), Regulatory Planning and 

Review. 

In addition, the Department is exempt 

from Executive Order 12866 except to 

the extent that it is promulgating 

regulations in conjunction with a 

domestic agency that are significant 

regulatory actions. The Department has 

nevertheless reviewed the regulation to 

ensure its consistency with the 

regulatory philosophy and principles set 

forth in the Executive Orders and finds 

that the benefits of the proposed rule 

outweigh any costs. 

Executive Order 13132 

This rule will not have substantial 

direct effects on the States, on the 

relationship between the national 

government and the States, or on the 

distribution of power and 

responsibilities among the various 

levels of government. Therefore, in 

accordance with section 6 of Executive 

Order 13132, it is determined that this 

rule does not have sufficient federalism 

implications to require consultations or 

warrant the preparation of a federalism 

summary impact statement. 

Executive Order 13175 

The Department has determined that 

this rulemaking will not have tribal 

implications, will not impose 

substantial direct compliance costs on 

Indian tribal governments, and will not 

pre-empt tribal law. Accordingly, the 

requirements of Executive Order 13175 

do not apply to this rulemaking. 

Paperwork Reduction Act 

The Paperwork Reduction Act of 1980 

(44 U.S.C. Chapter 35) applies, because 

the proposed rule imposes information 

collection requirements that require the 

approval of the Office of Management 

and Budget under 44 U.S.C. 3501 et seq. 

The Department of State is seeking 

OMB approval for the information 

collection described below. 

• Title of Information Collection: 

Department of State Acquisition 

Regulation (DOSAR) 652.245–70, Status 

of Property Management System 

• OMB Control Number: 1405–0050 

• Type of Request: Revision of 

Currently Approved Collection 

• Originating Office: Bureau of 

Administration, Office of Procurement 

Executive, Policy Division (A/OPE/PD) 

• Form Number: None 

• Respondents: Business and other 

for-profit and not-for-profit 

organizations wishing to receive 

Department of State contracts. 

• Estimated Total Number of 

Respondents: 3,466 

• Estimated Total Number of 

Responses: 9,330 

• Average Time Per Response: 30 

hours 

• Total Estimated Burden Time: 

275,984 

• Frequency: On Occasion 

• Obligation to Respond: Required to 

Obtain or Retain a Benefit 

The total number of responses was 

increased by fourteen from 9,316 to 

9,330. As a result of this change, the 

total estimated burden was increased 

from 275,970 hours to 275,984 hours. 

The increase in the responses and the 

burden is due to the impact of this 

DOSAR provision. 

The Department will accept 

comments from the public up to 

September 27, 2013. 

ADDRESSES: You may submit comments 

by any of the following methods: 

• Web: www.Regulations.gov, search 

for this notice by using this rule’s 

docket number—DOS–2013–8395. 

• E-Mail: RamirezIM2@state.gov with 

the subject line, ‘‘DOSAR Rule 

Comments.’’ 

• Fax: 703–875–6155 

Direct requests for additional 

information regarding the collection 

listed in this notice, including requests 

for copies of the proposed collection 

instrument and supporting documents, 

to Ella Ramirez, Senior Procurement 

Analyst, who may be reached at (703) 

516–1693, or at RamirezIM2@state.gov. 

Abstract of proposed collection: 

The proposed rule will update the 

Department of State Acquisition 

Regulation (DOSAR) to conform to 

recent Federal Acquisition Regulation 

(FAR) changes, and adds a new DOSAR 

provision, 652.245–70, regarding 

reporting on the status of offeror’s 

property management systems. 

Respondents are offerors on solicitations 

for contracts under which specified 

government property will be provided. 

This is an existing IC, 1405–0050, 

Department of State Acquisition 

Regulation (DOSAR) 652.245–70, Status 

of Property Management System. This 

provision was inadvertently left out of 

the previously approved Information 

Collection package. The new provision 

is being inserted into the DOSAR and 

concurrently added into the current IC. 

The new DOSAR provision (and IC 

requirement) asks for procedures for 

government property management 

(transportation, software, personal 

property). Over the course of the last 

two fiscal years (FY 11 and FY 12), only 

four solicitations were issued under 

which this new reporting was required, 

and on those solicitations, an average of 

2.3 submissions was received. Based on 

conversations with a sample of 

submitters, we estimate that 

approximately 1.0 hour is required to 

research, document and incorporate the 

information into the proposal. 

We are soliciting public comments to 

permit the Department to: 

• Evaluate whether the proposed 

information collection is necessary for 

the proper functions of the Department. 

• Evaluate the accuracy of our 

estimate of the time and cost burden for 

this proposed collection, including the 

validity of the methodology and 

assumptions used. 

• Enhance the quality, utility, and 

clarity of the information to be 

collected. 

• Minimize the reporting burden on 

those who are to respond, including the 

use of automated collection techniques 

or other forms of information 

technology. 

Please note that comments submitted 

in response to this Notice are public 

record. Before including any detailed 

personal information, you should be 

aware that your comments as submitted, 

including your personal information, 

will be available for public review. 

Legal Authorities are as follows: 

(1) Code of Federal Regulations, title 48, 

chapter 6, Department of State 

Acquisition Regulation 

(2) Code of Federal Regulations, title 48, 

chapter 1, Federal Acquisition 

Regulation 

(3) Public Law 103–236, Foreign 

Relations Authorization Act, Fiscal 

Years 1994 and 1995 


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45492 Federal Register / Vol. 78, No. 145 / Monday, July 29, 2013 / Proposed Rules 

(4) Foreign Service Buildings Act of 

1926, as amended (22 U.S.C. 302) 

(5) Omnibus Diplomatic Security and 

Antiterrorism Act of 1986 (22 U.S.C. 

4852) 

(6) Foreign Relations Authorization Act, 

Fiscal Years 1990 and 1991 (22 U.S.C. 

4864) 

Methodology: 

The information collections may be 

sent to the Office of Finance via email 

at RM-FPRAPROP@state.gov. 

List of Subjects in 48 CFR Parts 645 and 

652 

Government procurement, Electronic 

commerce, Contracts. 

Accordingly, for reasons set forth in 

the preamble, title 48, chapter 6 of the 

Code of Federal Regulations is proposed 

to be amended as follows: 

■ 1. Revise part 645 to read as follows: 

PART 645—GOVERNMENT PROPERTY 

Subpart 645.1—General 

Sec. 

645.107 Contract clauses. 

645.107–70 DOSAR contract clause and 

solicitation provision. 

Authority: 40 U.S.C. 121; 22 U.S.C. 2651a; 

48 CFR Subpart 1.3. 

645.107 Contract clauses. 

645.107–70 DOSAR contract clause 

and solicitation provision. 

(a) The contracting officer shall insert 

the provision at 652.245–70, Status of 

Property Management System, in 

solicitations when any of the following 

conditions apply: 

(1) Highway motor vehicles and 

aircraft, regardless of cost, are provided 

by the Government or acquired by the 

contractor for the account of the 

Government; 

(2) Software exceeding $500,000 in 

value, including labor costs to develop, 

is provided by the Government or 

acquired by the contractor for the 

account of the Government; or 

(3) Personal property greater than 

$25,000 (and not in paragraphs (a)(1) or 

(2) of this section) is provided by the 

Government or acquired by the 

contractor for the account of the 

Government. The personal property 

must be complete within itself; does not 

lose its identity or become a component 

part of other property when put into 

use; and is of a durable nature with an 

estimated useful life expectancy to 

exceed two years. 

(b) The contracting officer shall insert 

the clause at 652.245–71, Accounting 

for Government Property, in all 

solicitations and contracts than contain 

the provision at 652.245–70. 

PART 652—SOLICITATION 

PROVISIONS AND CONTRACT 

CLAUSES 

■ 2. The authority citation for part 652 

continues to read as follows: 

Authority: 40 U.S.C. 486(c); 22 U.S.C. 

2658. 

■ 3. Add section 652.245–70 to read as 

follows: 

652.245–70 Status of Property 

Management System. 

As prescribed in 645.107–70(a), insert 

the following provision: 

Status of Property Management System 

(DATE) 

(a) When used in this provision, 

government-furnished property, government 

property, and contractor-acquired property 

are as defined in FAR 45.101. 

(b) Offerors shall include in their quote or 

offer: 

(1) Whether the offeror’s property 

management system that will be used on this 

contract to track government-furnished 

property and/or contractor-acquired property 

has been determined to be adequate by a 

Federal property manager; 

(2) The name, address, telephone number 

and email address of both the— 

(i) Cognizant Administrative Contracting 

Officer (ACO) responsible for review and 

determination of adequacy of the contractor’s 

property system; and 

(ii) The cognizant contractor government 

property manager; 

(3) The voluntary consensus standard or 

industry leading practices and standards to 

be used in the management of government 

property, or existing property management 

plans, methods, practices or procedures for 

accounting of property. 

(End of provision) 

■ 4. Add section 652.245–71 to read as 

follows: 

652.245–71 Accounting for Government 

Property. 

As prescribed in 645.107–70(b), insert 

the following clause: 

Accounting for Government Property 

(DATE) 

(a) Definitions. As used in this clause: 

Disposition means government property 

that has been removed from use on the 

contract. 

Highway motor vehicle means any vehicle, 

self propelled or drawn by mechanical 

power, designed and operated principally for 

highway transportation of property or 

passengers. (41 CFR 102–34.35) 

(b) The Contractor shall establish and 

maintain a property management system that 

is in accordance with the clause at FAR 

52.245–1, Government Property. This clause 

supplements these requirements by 

specifying the U.S. Department of State 

capitalized property reporting requirements. 

(c) The Contractor shall submit 

electronically one report on an annual basis 

and three other reports on a quarterly basis 

for the following: 

(1) Where highway motor vehicles and 

aircraft, regardless of cost, are provided by 

the Government or acquired by the 

Contractor for the account of the 

Government; 

(2) Where software exceeding $500,000 in 

value, including labor cost to develop, is 

provided by the Government or acquired by 

the Contractor for the account of the 

Government; or 

(3) Where personal property greater than 

$25,000 (not in paragraph (c)(1) or (c)(2) of 

this clause) is provided by the Government 

or acquired by the Contractor for the account 

of the Government. The personal property 

must be complete within itself; does not lose 

its identity or become a component part of 

other property when put into use; and is of 

a durable nature with an estimated useful life 

expectancy to exceed two years. 

(d) The Contractor shall submit all annual 

and quarterly reports in the following format, 

except as stated in paragraph (e) of this 

clause: 

(1) Property shall be grouped by the 

following property classifications: 

(i) Highway motor vehicles; 

(ii) Communications equipment; 

(iii) Information technology (formerly 

called automated data processing) 

equipment; 

(iv) Reproduction equipment; 

(v) Security equipment; 

(vi) Software; 

(vii) Software-in-development; 

(viii) Medical equipment; 

(ix) Aircraft property; and 

(x) Other depreciable personal property. 

(2) Data elements for each unit of property 

shall include: 

(i) Contract number: Federal Government 

contract or purchase order number; 

(ii) Task Order number; 

(iii) Property classification: From 

classification listed in paragraph (d)(1) of this 

clause; 

(iv) Denotation as either governmentfurnished property (GFP) or contractoracquired property (CAP); 

(v) Noun name of property (i.e. generator); 

(vi) Description of property; 

(vii) Manufacturer; 

(viii) Model; 

(ix) Serial number; 

(x) National Stock Number if applicable 

(xi) Unique-item identifier or equivalent: 

such as barcode label (tag number) or systemassigned number. For highway motor 

vehicles, this must be the vehicle 

identification number (VIN); 

(xii) Date received: Date contractor took 

possession; 

(xiii) Date placed in service; 

(xiv) Acquisition method: 

(A) Contractor Acquired Property (CAP); or 

(B) Government-furnished property (GFP); 

(If from another DOS contract, or government 

agency, please specify). 

(xv) Acquisition cost (As defined in FAR 

clause 52.245–1(a)): Use estimated fairmarket value for property transferred or 

donated, at the time acquired, if actual cost 

is unknown; 

(xvi) Estimated useful life in years: The 

period during which the property is expected 


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to provide the service for which it was 

intended. This should normally be 

equivalent to the depreciation schedule; 

(xvii) Current location of the property: 

Country and city 

(xviii) Disposal Date 

(xix) Disposal Method 

(e) The Contractor shall submit a full 

property report, as described in this clause, 

including affirmation, for the report covering 

the first quarter of the base contract. 

Thereafter, submission of reports shall follow 

the time frames outlined in paragraph (h) of 

this clause. Quarterly property reports, other 

than the annual report, may be either full 

property reports or only updates to the full 

property report. Quarterly reports do not 

require affirmations even when the 

Contractor chooses to submit a full property 

report. Affirmations are only required for the 

report covering the first quarter of the 

contract and the annual report for each 

subsequent option year of the contract. If the 

Contractor submits a full property report, 

dispositions subsequent to any previous 

report must also be identified in the report. 

If a Contractor submits a quarterly report in 

the form of an update, the update shall 

include acquisitions and dispositions. 

(f) The Contractor shall provide any 

required affirmation in the following format. 

The affirmation shall be signed by the 

Contractor’s managerial personnel (as 

defined in FAR clause 52.245–1): 

‘‘I hereby affirm that a physical inventory 

of the government property (as defined in 

Federal Acquisition Regulation (FAR) 45.101) 

of Department of State contract number 

(insert contract number) has been completed 

as of (insert date), the inventory has been 

reconciled to our records and the property 

information in our report, and that to the best 

of my knowledge and belief, this inventory 

is accurate, current, and complete. 

Signed: 

lllllllllllllllllllll

Printed: 

lllllllllllllllllllll

Title: 

lllllllllllllllllllll

Date: 

lllllllllllllllllllll

(g) In addition to the information required 

above, the Contractor shall include in all 

property reports: 

(1) The current degree to which properly 

qualified Government personnel have 

evaluated the Contractor’s property 

management system as being an adequate 

property management system; 

(2) The name, mailing address, telephone 

number, and email address of the qualified 

Government person(s) who performed the 

evaluation of the Contractor’s property 

management system; and 

(3) The cognizant contractor government 

property manager. 

(h) Reports shall cover the following time 

periods and are due on the following dates: 

Report Period covered Due date 

1st Quarter Report ................................................ For 1st quarter ending December 31 ...................................... January 15. 

2nd Quarter Report ...............................................

(Annual Property Report) ......................................

For 2nd quarter ending March 31 ........................................... April 30. 

3rd Quarter Report ............................................... For 3rd quarter ending June 30 .............................................. July 15. 

4th Quarter Report ................................................ For 4th quarter ending September 30 .................................... October 8. 

(i) The Contractor shall send a copy of all 

reports to the individuals listed below. The 

Contractor shall submit reports in electronic 

format as an attachment to an email. The 

affirmation described in paragraph (f) of this 

clause shall be in Adobe Acrobat (.pdf) 

format (including the signature), while the 

inventories, both quarterly and annual, shall 

be in Microsoft Excel format (Adobe Acrobat 

and Microsoft Excel versions shall be 

compatible with versions used by DOS). 

Send all reports to: 

(1) The contracting officer; 

(2) The Property Administrator; 

(3) The contracting officer’s representative 

(COR); 

(4) Propertyreports@state.gov; 

(5) RM-FPRA-PROP@state.gov; and 

(6) All individuals listed below (if any): 

(i) Contracting officer shall list individuals, 

if any. 

(ii) [Reserved] 

(j) The Contractor shall cooperate by 

responding timely to all follow up questions 

and requests for supporting documentation 

whether requested by the Department or 

external auditors. 

(End of clause) 

Dated: June 12, 2013. 

Corey M. Rindner, 

Procurement Executive, Department of State. 

[FR Doc. 2013–18167 Filed 7–26–13; 8:45 am] 

BILLING CODE 4710–24–P 


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