Federal Register / Vol. 77, No. 19 / Monday, January 30, 2012 / Proposed Rules 4637 

DEPARTMENT OF DEFENSE 

Defense Acquisition Regulations 

System 

48 CFR Parts 212, 242, 247, 252, and 

253 

RIN 0750–AH53 

Defense Federal Acquisition 

Regulation Supplement: Shipping 

Instructions (DFARS Case 2011–D052) 

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 

update the form used by contractors to 

request shipping instructions and the 

associated contract clause and clause 

prescription to cover both commercial 

and Government bills of lading, and to 

relocate the coverage within the DFARS. 

DATES: Comment Date: Comments on 

the proposed rule should be submitted 

in writing to the address shown below 

on or before March 30, 2012, to be 

considered in the formation of a final 

rule. 

ADDRESSES: Submit comments 

identified by DFARS Case 2011–D052, 

using any of the following methods: 

Æ Regulations.gov: http:// 

www.regulations.gov. Submit comments 

via the Federal eRulemaking portal by 

inserting ‘‘DFARS Case 2011–D052’’ 

under the heading ‘‘Enter keyword or 

ID’’ and selecting ‘‘Search.’’ Select the 

link ‘‘Submit a Comment’’ that 

corresponds with ‘‘DFARS Case 2011– 

D052.’’ Follow the instructions provided 

at the ‘‘Submit a Comment’’ screen. 

Please include your name, company 

name (if any), and ‘‘DFARS Case 2011– 

D052’’ on your attached document. 

Æ Email: dfars@osd.mil. Include 

DFARS Case 2011–D052 in the subject 

line of the message. 

Æ Fax: (703) 602–0350. 

Æ Mail: Defense Acquisition 

Regulations System, Attn: Meredith 

Murphy, OUSD(AT&L)DPAP/DARS, 

Room 3B855, 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: 

Meredith Murphy, telephone (703) 602– 

1302. 

SUPPLEMENTARY INFORMATION: 

I. Background 

Since 1991, DoD has used the clause 

at DFARS 252.242–7003, Application 

for U.S. Government Shipping 

Documentation/Instructions, to instruct 

contractors to use the DD Form 1659, 

entitled ‘‘Application for U.S. 

Government Shipping Documentation/ 

Instructions,’’ to request instructions for 

shipment from the Transportation 

Officer or contract administration office. 

In recent years, however, DoD primarily 

uses commercial bills of lading (with 

some exceptions for international 

shipments, noncontiguous domestic 

trade shipments, and/or customs 

considerations) where use of 

Government bills of lading is 

appropriate. Therefore, the preferred 

term is ‘‘bill(s) of lading,’’ which 

includes both commercial and 

Government bills of lading. 

FAR Case 2002–005, published as a 

final rule on April 19, 2006, moved FAR 

subpart 42.14, Traffic and 

Transportation Management, to FAR 

part 47, Transportation. As a result of 

publication of FAR Case 2002–005, this 

rule proposes to delete or relocate 

material, as necessary, from DFARS 

242.14, by— 

• Relocating the clause prescription 

at DFARS 242.1404–2–70 to DFARS 

247.207, with revisions that will 

simplify and clarify requirements for 

use of the DFARS clause, and removing 

the obsolete clause prescription at 

DFARS 242.1404–2 because the 

prescribed clauses are no longer 

required; 

• Including the clause prescription 

for DFARS 252.247–70XX in DFARS 

212.301, as this clause is applicable 

under commercial contracts; 

• Relocating the clause to DFARS 

252.247–70XX from its current location 

in DFARS 252.242–7003, to align with 

the relocation of related DFARS 

coverage on transportation and related 

services, and deleting the single word 

‘‘Government’’ in both the clause and 

the DD Form 1659; 

• Removing the obsolete requirement 

to use the DD Form 1659 when using 

the clauses at FAR 52.242–10, F.o.b. 

Origin—Government Bills of Lading or 

Prepaid Postage, or 52.242–11, F.o.b. 

Origin—Government Bills of Lading or 

Indicia Mail; 

• Relocating the shipping instructions 

at DFARS 242.1403 to DFARS 

247.101(h), and deleting the obsolete 

shipping instructions; and 

• Removing DFARS 242.1405, as this 

same reference is included in FAR 

47.207–10. 

The DD Form 1659 will also be 

corrected to replace the word 

‘‘contractor’’ with ‘‘commercial’’ when 

expanding the term Commercial and 

Government Entity (CAGE) Code in the 

legend. The term ‘‘continental United 

States’’ will be corrected to ‘‘contiguous 

United States.’’ 

II. 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. 

III. Regulatory Flexibility Act 

DoD does not expect this 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 there are no substantive 

changes being made by this rule. The 

rule proposes only to delete the word 

‘‘Government’’ in front of ‘‘Bill(s) of 

Lading’’ in the DD Form 1659 and the 

associated clause at DFARS 252.247– 

70XX (previously DFARS 252.242– 

7003) in order to clarify that the DD 

Form 1659 can be used to request a bill 

of lading that inputs these shipments 

into the Defense Transportation System. 

The purpose of this form is to obtain 

shipping instructions, a common 

practice that has been in effect since 

1991, and does not impose an additional 

hardship on any entity. Many services/ 

agencies have moved toward an 

electronic environment eliminating the 

need to submit the DD Form 1659, 

Application for U.S. Government 

Shipping Documentation/Instructions. 

In these instances, shipment requests 

are obtained through an automated 

system. 

Therefore, an initial regulatory 

flexibility analysis has not been 

performed. However, DoD invites 

comments from small business concerns 

and other interested parties on the 


emcdonald on DSK29S0YB1PROD with PROPOSALS2
4638 Federal Register / Vol. 77, No. 19 / Monday, January 30, 2012 / Proposed Rules 

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 2011–D052), in 

correspondence. 

IV. Paperwork Reduction Act 

This rule contains information 

collection requirements in the clause at 

DFARS 252.247–70XX, Application for 

U.S. Government Shipping 

Documentation/Instructions, and the 

associated form, DD Form 1659, 

Application for U.S. Government 

Shipping Documentation/Instructions 

(previously, the clause at DFARS 

252.242–7003), currently approved 

through March 31, 2013, under OMB 

Control Number 0704–0250, titled 

DFARS part 242, Contract 

Administration and Audit Services, in 

accordance with the Paperwork 

Reduction Act (44 U.S.C. chapter 35). 

The reduction in paperwork burden 

realized through use of electronic 

request systems is negligible because 

preparation of the DD Form 1659, a 

common practice since 1991, is not a 

significant administrative burden. 

Additionally, there is a negligible 

impact on paperwork burden resulting 

from revisions to the DD form, because 

only the single word ‘‘Government,’’ in 

front of ‘‘Bill(s) of Lading’’ is being 

revised, and two terms are being 

updated. There are no substantive 

changes being made either to the form 

or to the associated clause at DFARS 

252.247–70XX. 

List of Subjects in 48 CFR Parts 212, 

242, 247, 252, and 253 

Accounting, Government 

procurement. 

Ynette R. Shelkin, 

Editor, Defense Acquisition Regulations 

System. 

Therefore, DoD proposes to amend 48 

CFR parts 212, 242, 247, 252, and 253 

as follows: 

1. The authority citation for 48 CFR 

parts 212, 242, 247, 252, and 253 is 

revised to read as follows: 

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

chapter 1. 

PART 212—ACQUISITION OF 

COMMERCIAL ITEMS 

2. In section 212.301, add paragraph 

(f)(iv)(N) to read as follows: 

212.301 Solicitation provisions and 

contract clauses for the acquisition of 

commercial items. 

(f) * * * 

(iv) * * * 

(N) Use the clause at 252.247–70XX, 

Application for U.S. Government 

Shipping Documentation/Instructions, 

as prescribed in 247.207. 

* * * * * 

PART 242—CONTRACT 

ADMINISTRATION AND AUDIT 

SERVICES 

Subpart 242.14—[Removed] 

3. Remove subpart 242.14. 

PART 247—TRANSPORTATION 

4. Add subpart 247.1, consisting of 

section 247.101, to read as follows: 

Subpart 247.1—General 

247.101 Policies 

(h) Shipping documents covering 

f.o.b. origin shipments. (i) Procedures 

for the contractor to obtain bills of 

lading are in the clause at 252.247– 

70XX, Application for U.S. Government 

Shipping Documentation/Instructions. 

(ii) The term ‘‘commercial bills of 

lading’’ includes the use of any 

commercial form or procedure. 

5. Revise section 247.207 to read as 

follows: 

247.207 Solicitation provisions, contract 

clauses, and special requirements. 

(1) Use the clause at 252.247–7003, 

Pass-Through of Motor Carrier Fuel 

Surcharge Adjustment to the Cost 

Bearer, in solicitations and contracts for 

carriage, including acquisitions of 

commercial items, in which a motor 

carrier, broker, or freight forwarder will 

provide or arrange truck transportation 

services that provide for a fuel-related 

adjustment. 

(2) Use the clause at 252.247–70XX, 

Application for U.S. Government 

Shipping Documentation/Instructions, 

in solicitations and contracts, including 

acquisitions of commercial items, when 

shipping under Bills of Lading and 

Domestic Route Order under f.o.b. 

origin contracts, Export Traffic Release 

regardless of f.o.b. terms, or foreign 

military sales shipments. 

6. In subpart 247.2, add sections 

247.207–11 and 247.207–70 to read as 

follows: 

247.207–11 Volume movements within the 

contiguous United States. 

For reporting of volume movements 

within the contiguous United States, 

follow the procedures at PGI 247.207– 

11. 

247.207–70 Demurrage and detention 

charges. 

Follow the procedures for demurrage 

and detention charges at PGI 247.207– 

70. 

PART 252—SOLICITATION 

PROVISIONS AND CONTRACT 

CLAUSES 

252.242–7003 [Removed and Reserved] 

7. Section 252.242–7003 is removed 

and reserved. 

8. Section 252.247–70XX is added to 

read as follows: 

252.247–70XX Application for U.S. 

Government Shipping Documentation/ 

Instructions. 

As prescribed in 247.207, use the 

following clause: 

APPLICATION FOR U.S. 

GOVERNMENT SHIPPING 

DOCUMENTATION/INSTRUCTIONS 

(DATE) 

(a) Except as provided in paragraph (b) of 

this clause, the Contractor shall request bills 

of lading by submitting a DD Form 1659, 

Application for U.S. Government Shipping 

Documentation/Instructions, to the— 

(1) Transportation Officer, if named in the 

contract schedule; or 

(2) Contract administration office. 

(b) If an automated system is available for 

shipment requests, use service/agency 

systems (e.g., Navy’s Global Freight 

Management–Electronic Transportation 

Acquisition (GFM–ETA) and Financial Air 

Clearance Transportation System (FACTS) 

Shipment Processing Module, Air Force’s 

Cargo Movement Operations System, 

DCMA’s Shipment Instruction Request (SIR) 

e-Tool application, and DLA’s Distribution 

Standard System Vendor Shipment Module) 

in lieu of DD Form 1659. 

(End of clause) 

[FR Doc. 2012–1494 Filed 1–27–12; 8:45 am] 

BILLING CODE 5001–06–P 

DEPARTMENT OF DEFENSE 

Defense Acquisition Regulations 

System 

48 CFR Parts 232 and 252 

RIN 0750–AH54 

Defense Federal Acquisition 

Regulation Supplement; PerformanceBased Payments (DFARS Case 2011– 

D045) 

AGENCY: Defense Acquisition 

Regulations System, Department of 

Defense (DoD). 

ACTION: Proposed rule. 

SUMMARY: DoD is proposing to amend 

the Defense Federal Acquisition 


emcdonald on DSK29S0YB1PROD with PROPOSALS2