Federal Register / Vol. 79, No. 40 / Friday, February 28, 2014 / Proposed Rules 11381 

4. To facilitate full, frank and open 

discussion and presentations, any Neutral 

who has participated in a non-binding ADR 

procedure that has failed to resolve the 

underlying dispute will be recused from 

further participation in the matter unless the 

parties expressly agree otherwise in writing 

and the Board concurs. Further, the recused 

Neutral will not discuss the merits of the 

dispute or substantive matters involved in 

the ADR proceedings with other Board 

personnel. 

5. Written material prepared specifically 

for use in an ADR proceeding, oral 

presentations made at an ADR proceeding, 

and all discussions in connection with such 

proceedings between the parties and the 

Neutral are confidential and, unless 

otherwise specifically agreed by the parties, 

inadmissible as evidence in any pending or 

future Board proceeding involving the parties 

or matter in dispute. However, evidence 

otherwise admissible before the Board is not 

rendered inadmissible because of its use in 

the ADR proceeding. 

6. The ADR method and the procedures 

and requirements implementing the ADR 

method will be prescribed by the written 

agreement of the parties and approved by the 

Board. ADR methods can be used 

successfully at any stage of the litigation. 

7. The following are examples of ADR 

methods commonly used at the Board: 

(a) Nonbinding— 

Mediations: A Neutral is an Administrative 

Judge who will not normally hear or have 

any formal or informal decision-making 

authority in the matter and who is appointed 

for the purpose of facilitating settlement. In 

many circumstances, settlement can be 

fostered by a frank, in-depth discussion of 

the strengths and weaknesses of each party’s 

position with the Neutral. The agenda for 

meetings with the Neutral will be flexible to 

accommodate the requirements of the case. 

To further the settlement effort, the Neutral 

may meet with the parties either jointly or 

individually. A Neutral’s recommendations 

are not binding on the parties. When this 

method is selected, the ADR agreement must 

contain a provision in which the parties and 

counsel agree not to subpoena the Neutral in 

any legal action or administrative proceeding 

of any kind to produce any notes or 

documents related to the ADR proceeding or 

to testify concerning any such notes or 

documents or concerning his/her thoughts or 

impressions. 

(b) Binding— 

Summary Proceeding With Binding 

Decision: A summary proceeding with 

binding decision is a procedure whereby the 

resolution of the appeal is expedited and the 

parties try their appeal informally before an 

Administrative Judge. A binding ‘‘bench’’ 

decision may be issued upon conclusion of 

the proceeding, or a binding summary 

written decision will be issued by the judge 

no later than ten days following the later of 

conclusion of the proceeding or receipt of a 

transcript. The parties must agree in the ADR 

agreement that all decisions, rulings, and 

orders by the Board under this method shall 

be final, conclusive, not appealable, and may 

not be set aside, except for fraud. All such 

decisions, rulings, and orders will have no 

precedential value. Pre-hearing, hearing, and 

post-hearing procedures and rules applicable 

to appeals generally will be modified or 

eliminated to expedite resolution of the 

appeal. 

(c) Other Agreed Methods—The parties and 

the Board may agree upon other informal 

methods, binding or nonbinding that are 

structured and tailored to suit the 

requirements of the individual case. 

8. The above-listed ADR procedures are 

intended to shorten and simplify the Board’s 

more formalized procedures. Generally, if the 

parties resolve their dispute by agreement, 

they benefit in terms of cost and time savings 

and maintenance or restoration of amicable 

relations. The Board will not view the 

parties’ participation in ADR proceedings as 

a sign of weakness. Any method adopted for 

dispute resolution depends upon both parties 

having a firm, good faith commitment to 

resolve their differences. Absent such 

intention, the best structured dispute 

resolution procedure is unlikely to be 

successful. 

[FR Doc. 2014–04153 Filed 2–27–14; 8:45 am] 

BILLING CODE 5001–06–P 

DEPARTMENT OF DEFENSE 

Defense Acquisition Regulations 

System 

48 CFR Parts 229 and 252 

RIN 0750–AI19 

Defense Federal Acquisition 

Regulation Supplement: Clauses With 

Alternates—Taxes (DFARS Case 2013– 

D025) 

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 

create an overarching prescription for a 

tax-related clause with an alternate and 

adds a separate prescription for the 

basic clause. The rule also proposes to 

include in the regulation the full text of 

the alternate clause. 

DATES: Comments on the proposed rule 

should be submitted in writing to the 

address shown below on or before April 

29, 2014, to be considered in the 

formation of a final rule. 

ADDRESSES: Submit comments 

identified by DFARS Case 2013–D025, 

using any of the following methods: 

Æ Regulations.gov: http://

www.regulations.gov. Submit comments 

via the Federal eRulemaking portal by 

entering ‘‘DFARS Case 2013–D025’’ 

under the heading ‘‘Enter keyword or 

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

link ‘‘Submit a Comment’’ that 

corresponds with ‘‘DFARS Case 2013– 

D025.’’ Follow the instructions provided 

at the ‘‘Submit a Comment’’ screen. 

Please include your name, company 

name (if any), and ‘‘DFARS Case 2013– 

D025’’ on your attached document. 

Æ Email: dfars@mail.mil. Include 

DFARS Case 2013–D025 in the subject 

line of the message. 

Æ Fax: 571–372–6094. 

Æ Mail: Defense Acquisition 

Regulations System, Attn: Ms. Annette 

Gray, 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: 

Annette Gray, Defense Acquisition 

Regulations System, 

OUSD(AT&L)DPAP/DARS, Room 

3B855, 3060 Defense Pentagon, 

Washington, DC 20301–3060. 

Telephone 571–372–6093. 

SUPPLEMENTARY INFORMATION: 

I. Background 

DoD is undertaking a revision of 

provisions and clauses with alternates 

and the associated prescriptions, in 

order to clarify usage and facilitate the 

use of automated contract writing 

systems. These changes do not affect the 

meaning or applicability of the 

provisions or clauses. 

II. Discussion 

This proposed rule addresses the 

single DFARS part 229 clause that has 

an alternate, 252.229–7001, Tax Relief. 

The naming convention results in 

proposed new clause titles, i.e., Tax 

Relief—Basic and Tax Relief—Alternate 

I. 

An umbrella prescription is proposed 

for the elements common to the basic 

clause and the alternate. The specific 

prescriptions for the basic clause and 

the alternate address only the 

requirements for their use that enable 

the selection of the basic or the 

alternate. The planned changes will 

increase the clarity and ease of use but 

will not revise the applicability in any 

way. The presentation of the text of the 

clause alternate in the regulations 

would no longer consist solely of 

paragraph (d) with a reference to the 

basic clause, but would include the 

entire text of paragraphs (a) through (c) 


emcdonald on DSK67QTVN1PROD with PROPOSALS
11382 Federal Register / Vol. 79, No. 40 / Friday, February 28, 2014 / Proposed Rules 

along with paragraph (d). Further, this 

proposed rule also revises the 

applicable clause preface, i.e., the 

language in part 252 that precedes the 

clause, but still identifies the difference 

from the basic clause. 

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 

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 it merely revises the 

prescriptions for a basic clause with 

alternate, and includes the full text of 

the clause in the alternate. However, an 

initial regulatory flexibility analysis has 

been performed and is summarized as 

follows: 

The purpose of this rule is to amend 

the Defense Federal Acquisition 

Regulation Supplement (DFARS) to 

create an overarching prescription for 

use of the basic and alternate of DFARS 

clause 252.229–7001, Tax Relief, a 

separate prescription for the basic 

clause, and to include the full text of the 

clause alternate. 

Employing a prescription for the basic 

version and alternate of DFARS clause 

252.229–7001 will facilitate the use of 

automated contract writing systems. The 

current convention requires the 

prescription for the basic provision or 

clause to address all the possibilities 

covered by the alternates, and then the 

prescription for each alternate addresses 

only what is different for the use of that 

particular alternate. Instead of the 

current convention for alternates to 

show only paragraphs changed from the 

basic version of the provision or clause, 

this rule proposes to include the full 

text of the clause alternate. 

There will be no impact on small 

business entities since DFARS clause 

252.229–7001 is used only in 

solicitations and contracts when award 

is made to a foreign concern and 

performance is in a foreign country. 

This rule does not add any new 

information collection requirements. 

The rule does not duplicate, overlap, or 

conflict with any other Federal rules. No 

alternatives were identified that will 

accomplish the objectives of the rule. 

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 2013–D025), 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). 

List of Subjects in 48 CFR Parts 229 and 

252 

Government procurement. 

Manuel Quinones, 

Editor, Defense Acquisition Regulations 

System. 

Therefore, 48 CFR parts 229 and 252 

are proposed to be amended as follows: 

■ 1. The authority citation for parts 229 

and 252 continues to read as follows: 

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

chapter 1. 

PART 229—TAXES 

■ 2. Revise section 229.402–70 to read 

as follows: 

229.402–70 Additional clauses. 

(a) Use the basic or the alternate of the 

clause at 252.229–7001, Tax Relief, in 

solicitations and contracts when a 

contract will be awarded to a foreign 

concern for performance in a foreign 

country. 

(1) Use the clause Tax Relief—Basic 

in solicitations and contracts when the 

contract will be performed in a foreign 

country other than Germany. 

(2) Use the clause Tax Relief— 

Alternate I in solicitations and contracts 

when the contract will be performed in 

Germany. 

PART 252—SOLICITATION 

PROVISIONS AND CONTRACT 

CLAUSES 

■ 3. Amend section 252.229–7001 by— 

■ a. Revising the introductory text, 

clause title and date; and 

■ b. Revising Alternate I. 

252.229–7001 Tax Relief. 

As prescribed in 229.402–70(a), use 

one of the following clauses: 

Basic. As prescribed at 229.402–70(a)(1), 

use the following clause. 

Tax Relief—Basic (Date) 

* * * * * 

Alternate I. As prescribed at 229.402– 

70(a)(2), use the following clause, which 

adds a paragraph (d) not included in the 

basic clause. 

Tax Relief—Alternate (Date) 

(a) Prices set forth in this contract are 

exclusive of all taxes and duties from which 

the United States Government is exempt by 

virtue of tax agreements between the United 

States Government and the Contractor’s 

government. The following taxes or duties 

have been excluded from the contract price: 

NAME OF TAX: (Offeror insert) RATE 

(PERCENTAGE): (Offeror insert) 

(b) The Contractor’s invoice shall list 

separately the gross price, amount of tax 

deducted, and net price charged. 

(c) When items manufactured to United 

States Government specifications are being 

acquired, the Contractor shall identify the 

materials or components intended to be 

imported in order to ensure that relief from 

import duties is obtained. If the Contractor 

intends to use imported products from 

inventories on hand, the price of which 

includes a factor for import duties, the 

Contractor shall ensure the United States 

Government’s exemption from these taxes. 

The Contractor may obtain a refund of the 

import duties from its government or request 

the duty-free import of an amount of supplies 

or components corresponding to that used 

from inventory for this contract. 

(d) Tax relief will be claimed in Germany 

pursuant to the provisions of the Agreement 

Between the United States of America and 

Germany Concerning Tax Relief to be 

Accorded by Germany to United States 

Expenditures in the Interest of Common 

Defense. The Contractor shall use 

Abwicklungsschein fuer abgabenbeguenstigte 

Lieferungen/Leistungen nach dem Offshore 

Steuerabkommen (Performance Certificate for 

Tax-Free Deliveries/Performance according 

to the Offshore Tax Relief Agreement) or 

other documentary evidence acceptable to 

the German tax authorities. All purchases 

made and paid for on a tax-free basis during 

a 30-day period may be accumulated, totaled, 

and reported as tax-free. 

(End of clause) 

[FR Doc. 2014–04157 Filed 2–27–14; 8:45 am] 

BILLING CODE 5001–06–P 


emcdonald on DSK67QTVN1PROD with PROPOSALS