[Federal Register Volume 89, Number 187 (Thursday, September 26, 2024)]
[Rules and Regulations]
[Pages 78990-78992]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-21091]



[[Page 78989]]

Vol. 89

Thursday,

No. 187

September 26, 2024

Part II





Department of Defense





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 Defense Acquistion Regulations Systems





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48 CFR Parts 204, 212, 247, 252





 Defense Federal Acquisition Regulation Supplement: Modification of 
Notification of Intent To Transport Supplies by Sea (DFARS Case 2020-
D026); Final Rule

Federal Register / Vol. 89 , No. 187 / Thursday, September 26, 2024 / 
Rules and Regulations

[[Page 78990]]


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DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Parts 204, 212, 247, and 252

[Docket DARS-2024-0007]
RIN 0750-AL12


Defense Federal Acquisition Regulation Supplement: Modification 
of Notification of Intent To Transport Supplies by Sea (DFARS Case 
2020-D026)

AGENCY: Defense Acquisition Regulations System, Department of Defense 
(DoD).

ACTION: Final rule.

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SUMMARY: DoD is issuing a final rule amending the Defense Federal 
Acquisition Regulation Supplement (DFARS) to remove a DFARS 
solicitation provision and modify the text of an existing DFARS 
contract clause to include the operative text of that DFARS provision.

DATES: Effective October 1, 2024.

FOR FURTHER INFORMATION CONTACT: David Johnson, telephone 202-913-5764.

SUPPLEMENTARY INFORMATION: 

I. Background

    DoD published a proposed rule in the Federal Register at 89 FR 
20924 on March 26, 2024, to revise the DFARS to remove the solicitation 
provision at DFARS 252.247-7022, Representation of Extent of 
Transportation By Sea, and to revise the contract clause at DFARS 
252.247-7023, Transportation of Supplies by Sea, accordingly, to effect 
the purpose of the provision using only the clause. Two respondents 
submitted public comments in response to the proposed rule.

II. Discussion and Analysis

    DoD reviewed the public comments in the development of the final 
rule. A discussion of the comments is provided, as follows:

A. Summary of Significant Changes From the Proposed Rule

    There are no changes from the proposed rule.

B. Analysis of Public Comments

    Comment: The respondents expressed support for the rule.
    Response: DoD acknowledges the respondents' support.

III. Applicability to Contracts at or Below the Simplified Acquisition 
Threshold (SAT), for Commercial Products (Including Commercially 
Available Off-the-Shelf (COTS) Items), and for Commercial Services

    This final rule removes the provision at DFARS 252.247-7022, along 
with its prescription at DFARS 247.574(a), and amends the clause at 
DFARS 252.247-7032 accordingly to include the substance of the 
provision. However, this final rule does not impose any new 
requirements on contracts at or below the SAT, for commercial products 
including COTS items, or for commercial services. The clause will 
continue to apply to acquisitions at or below the SAT, to acquisitions 
of commercial products including COTS items, and to acquisitions of 
commercial services.

IV. Expected Impact of the Rule

    This change is expected to streamline instructions to contractors 
regarding notifications of transportation of supplies by sea. 
Presently, DFARS provision 252.247-7022 is included in nearly all 
solicitations and DFARS clause 252.247-7023 is included in nearly all 
contracts. By effectively combining the provision and the clause, this 
rule will reduce the number of provisions required to be used in 
solicitations and the number of representations offerors must provide, 
while still maintaining the effect of DFARS provision 252.247-7022. 
Therefore, this rule is expected to reduce administrative burden on 
contractors, including small businesses.

V. 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, as amended.

VI. Congressional Review Act

    As required by the Congressional Review Act (5 U.S.C. 801-808) 
before an interim or final rule takes effect, DoD will submit a copy of 
the interim or final rule with the form, Submission of Federal Rules 
under the Congressional Review Act, to the U.S. Senate, the U.S. House 
of Representatives, and the Comptroller General of the United States. A 
major rule under the Congressional Review Act cannot take effect until 
60 days after it is published in the Federal Register. The Office of 
Information and Regulatory Affairs has determined that this rule is not 
a major rule as defined by 5 U.S.C. 804.

VII. Regulatory Flexibility Act

    A final regulatory flexibility analysis has been prepared 
consistent with the Regulatory Flexibility Act, 5 U.S.C. 601, et seq. 
and is summarized as follows:
    DoD is amending the DFARS to remove a solicitation provision and 
accordingly to modify the text of an existing DFARS contract clause to 
include the operative text of that DFARS provision. The objective of 
this rule is to streamline the instructions to contractors pertaining 
to the transportation of supplies by sea.
    Public comments received in response to the proposed rule raised no 
issues regarding the initial regulatory flexibility analysis.
    This rule will likely affect small entities that will be awarded 
contract actions that include DFARS clause 252.247-7023, Transportation 
of Supplies by Sea. Data was obtained from the Procurement Business 
Intelligence Service for all contracts and modifications that include 
DFARS clause 252.247-7023 for fiscal years 2020 through 2022. DoD 
awarded on average 642,310 contract actions per year that included 
DFARS clause 252.247-7023 to 30,680 unique entities, of which 
approximately 359,315 contract awards (56 percent) were made to 21,070 
unique small entities (69 percent).
    The rule does not impose any new reporting, recordkeeping, or 
compliance requirements.
    There are no known significant alternatives that would accomplish 
the objectives of the rule.

VIII. Paperwork Reduction Act

    The Paperwork Reduction Act (44 U.S.C. chapter 35) applies to this 
rule. However, these changes to the DFARS do not impose additional 
information collection requirements to the paperwork burden previously 
approved by the Office of Management and Budget (OMB) under OMB Control 
Number 0704-0245, entitled Defense Federal Acquisition Regulation 
Supplement (DFARS) Part 247, Transportation and Related Clauses.

[[Page 78991]]

List of Subjects in 48 CFR Parts 204, 212, 247, and 252

    Government procurement.

Jennifer D. Johnson,
Editor/Publisher, Defense Acquisition Regulations System.

    Therefore, the Defense Acquisition Regulations System amends 48 CFR 
parts 204, 212, 247, and 252 as follows:

0
 1. The authority citation for parts 204, 212, 247, and 252 continues 
to read as follows:

    Authority:  41 U.S.C. 1303 and 48 CFR chapter 1.

PART 204--ADMINISTRATIVE AND INFORMATION MATTERS


204.1202  [Amended]

0
2. Amend section 204.1202 by removing paragraph (2)(xv).

PART 212--ACQUISITION OF COMMERCIAL PRODUCTS AND COMMERCIAL 
SERVICES

0
3. Amend section 212.301 by revising paragraph (f)(xxi) to read as 
follows:


212.301  Solicitation provisions and contract clauses for the 
acquisition of commercial products and commercial services.

* * * * *
    (f) * * *
    (xxi) Part 247--Transportation. (A) Use the clause at 252.247-7003, 
Pass-Through of Motor Carrier Fuel Surcharge Adjustment to the Cost 
Bearer, as prescribed in 247.207, to comply with section 884 of Public 
Law 110-417.
    (B) Use the basic or one of the alternates of the clause at 
252.247-7023, Transportation of Supplies by Sea, as prescribed in 
247.574(a), to comply with the Cargo Preference Act of 1904 (10 U.S.C. 
2631(a)).
    (1) Use the basic clause as prescribed in 247.574(a)(1).
    (2) Use the alternate I clause as prescribed in 247.574(a)(2).
    (3) Use the alternate II clause as prescribed in 247.574(a)(3).
    (C) Use the clause 252.247-7025, Reflagging or Repair Work, as 
prescribed in 247.574(b), to comply with 10 U.S.C. 2631(b).
    (D) Use the provision at 252.247-7026, Evaluation Preference for 
Use of Domestic Shipyards--Applicable to Acquisition of Carriage by 
Vessel for DoD Cargo in the Coastwise or Noncontiguous Trade, as 
prescribed in 247.574(c), to comply with section 1017 of Public Law 
109-364.
    (E) Use the clause at 252.247-7027, Riding Gang Member 
Requirements, as prescribed in 247.574(d), to comply with section 3504 
of the National Defense Authorization Act for Fiscal Year 2009 (Pub. L. 
110-417).
    (F) Use the clause at 252.247-7028, Application for U.S. Government 
Shipping Documentation/Instructions, as prescribed in 247.207.

PART 247--TRANSPORTATION


247.574  [Amended]

0
 4. Amend section 247.574--
0
a. By removing paragraph (a);
0
b. By redesignating paragraphs (b) through (e) as paragraphs (a) 
through (d);
0
c. In newly redesignated paragraph (a) introductory text by removing 
``all''; and
0
d. In newly redesignated paragraph (d) by removing ``under chapter 121 
of title 46 U.S.C.'' and adding ``46 U.S.C. chapter 121.'' in its 
place.

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES


252.204-7007  [Amended]

0
 5. Amend section 252.204-7007--
0
a. By removing the provision date of ``NOV 2023'' and adding ``OCT 
2024'' in its place; and
0
b. By removing paragraph (d)(1)(viii).


252.247-7022  [Removed and Reserved]

0
6. Remove and reserve section 252.247-7022.

0
7. Amend section 252.247-7023--
0
a. By revising the introductory text and the clause date;
0
b. By redesignating paragraphs (b) through (i) as paragraphs (c) 
through (j);
0
c. By adding a new paragraph (b);
0
d. By revising newly redesignated paragraphs (e)(2), (f) introductory 
text, and (i);
0
e. In newly redesignated paragraph (j) introductory text by removing 
``(b)(2)'' and adding ``(c)(2)'' in its place;
0
f. In newly redesignated paragraph (j)(1) by removing ``paragraph (i)'' 
and adding ``paragraph (j)'' in its place;
0
g. In newly redesignated paragraph (j)(2) by removing ``paragraphs (a) 
through (e)'' and ``paragraph (i)'' and adding ``paragraphs (a) through 
(f)'' and ``paragraph (j)'' in their places, respectively;
0
h. In Alternate I--
0
i. By revising the introductory text and the clause date;
0
ii. By redesignating paragraphs (b) through (i) as paragraphs (c) 
through (j);
0
iii. By adding a new paragraph (b);
0
iv. By revising newly redesignated paragraphs (e)(2), (f) introductory 
text, and (i);
0
v. In newly redesignated paragraph (j) introductory text by removing 
``(b)(2)'' and adding ``(c)(2)'' in its place;
0
vi. In newly redesignated paragraph (j)(1) by removing ``paragraph 
(i)'' and adding ``paragraph (j)'' in its place;
0
vii. In the newly redesignated paragraph (j)(2) by removing 
``paragraphs (a) through (e)'' and ``paragraph (i)'' and adding 
``paragraphs (a) through (f)'' and ``paragraph (j)'' in their places, 
respectively; and
0
viii. By adding ``(End of clause)'' after newly redesignated paragraph 
(j)(2); and
0
i. In Alternate II--
0
i. By revising the introductory text and the clause date;
0
ii. By redesignating paragraphs (b) through (i) as paragraphs (c) 
through (j);
0
iii. By adding a new paragraph (b);
0
iv. By revising newly redesignated paragraphs (e)(2), (f) introductory 
text, and (i);
0
v. In newly redesignated paragraph (j) introductory text by removing 
``(b)(2)'' and adding ``(c)(2)'' in its place;
0
vi. In newly redesignated paragraph (j)(1) by removing ``paragraph 
(i)'' and adding ``paragraph (j)'' in its place;
0
vii. In newly redesignated paragraph (j)(2) by removing ``paragraphs 
(a) through (e)'' and ``paragraph (i)'' and adding ``paragraphs (a) 
through (f)'' and ``paragraph (j)'' in their places, respectively; and
0
viii. By adding ``(End of clause)'' after newly redesignated paragraph 
(j)(2).
    The revisions and additions read as follows:


252.247-7023  Transportation of Supplies by Sea.

    As prescribed in 247.574(a) and (a)(1), use the following basic 
clause:

Transportation of Supplies by Sea--Basic (OCT 2024)

* * * * *
    (b) If the transportation of supplies by sea is anticipated under 
this contract, the Contractor shall--
    (1) Notify the Contracting Officer and Maritime Administration 
(MARAD) at <a href="/cdn-cgi/l/email-protection#e8ab899a8f87c6a5899a898ca88c879cc68f879e"><span class="__cf_email__" data-cfemail="c685a7b4a1a9e88ba7b4a7a286a2a9b2e8a1a9b0">[email protected]</span></a>--
    (i) Within 3 business days after contract award; or
    (ii) Immediately prior to the shipment departure date necessary to 
meet delivery schedules, whichever is earlier; and
    (2) Include in the notification--
    (i) A statement of the Contractor's intent to transport supplies by 
sea;
    (ii) The contract number; and
    (iii) The task-order or delivery-order number, when applicable.
* * * * *
    (e) * * *

[[Page 78992]]

    (2) Required shipping date(s) and required delivery date(s);
* * * * *
    (f) The Contractor shall, within 30 days after each shipment 
covered by this clause, provide the Contracting Officer and MARAD at 
<a href="/cdn-cgi/l/email-protection#5b183a293c3475163a293a3f1b3f342f753c342d"><span class="__cf_email__" data-cfemail="bbf8dac9dcd495f6dac9dadffbdfd4cf95dcd4cd">[email protected]</span></a>, Attention: Military Team, one copy of the rated on 
board vessel operating carrier's ocean bill of lading, which shall 
contain the following information:
* * * * *
    (i) If the Contractor did not anticipate transporting any supplies 
by sea at the time of contract award and, therefore, did not provide 
the notification required by paragraph (b) of this clause, but prior to 
shipment of supplies, the Contractor learns that supplies will be 
transported by sea, the Contractor shall--
    (1) Provide the notification required by paragraph (b) of this 
clause to the Contracting Officer and MARAD as soon as it is known that 
supplies will be transported by sea; and
    (2) Comply with all the terms and conditions of this clause.
* * * * *
    Alternate I. As prescribed in 247.574(a) and (a)(2), use the 
following clause, which uses a different paragraph (c) than the basic 
clause:

Transportation of Supplies by Sea--Alternate I (OCT 2024)

* * * * *
    (b) If the transportation of supplies by sea is anticipated under 
this contract, the Contractor shall--
    (1) Notify the Contracting Officer and Maritime Administration 
(MARAD) at <a href="/cdn-cgi/l/email-protection#55163427323a7b183427343115313a217b323a23"><span class="__cf_email__" data-cfemail="2e6d4f5c494100634f5c4f4a6e4a415a00494158">[email protected]</span></a>--
    (i) Within 3 business days after contract award; or
    (ii) Immediately prior to the shipment departure date necessary to 
meet delivery schedules, whichever is earlier; and
    (2) Include in the notification--
    (i) A statement of the Contractor's intent to transport supplies by 
sea;
    (ii) The contract number; and
    (iii) The task-order or delivery-order number, when applicable.
* * * * *
    (e) * * *
    (2) Required shipping date(s) and required delivery date(s);
* * * * *
    (f) The Contractor shall, within 30 days after each shipment 
covered by this clause, provide the Contracting Officer and MARAD at 
<a href="/cdn-cgi/l/email-protection#1f5c7e6d787031527e6d7e7b5f7b706b31787069"><span class="__cf_email__" data-cfemail="3f7c5e4d585011725e4d5e5b7f5b504b11585049">[email protected]</span></a>, Attention: Military Team, one copy of the rated on 
board vessel operating carrier's ocean bill of lading, which shall 
contain the following information:
* * * * *
    (i) If the Contractor did not anticipate transporting any supplies 
by sea at the time of contract award and, therefore, did not provide 
the notification required by paragraph (b) of this clause, but prior to 
shipment of the supplies, the Contractor learns that supplies will be 
transported by sea, the Contractor shall--
    (1) Provide the notification required by paragraph (b) of this 
clause to the Contracting Officer and MARAD as soon as it is known that 
supplies will be transported by sea; and
    (2) Comply with all the terms and conditions of this clause.
* * * * *
    Alternate II. As prescribed in 247.574(a) and (a)(3), use the 
following clause, which uses a different paragraph (c) than the basic 
clause:

Transportation of Supplies by Sea--Alternate II (OCT 2024)

* * * * *
    (b) If the transportation of supplies by sea is anticipated under 
this contract, the Contractor shall--
    (1) Notify the Contracting Officer and Maritime Administration 
(MARAD) at <a href="/cdn-cgi/l/email-protection#c487a5b6a3abea89a5b6a5a084a0abb0eaa3abb2"><span class="__cf_email__" data-cfemail="83c0e2f1e4ecadcee2f1e2e7c3e7ecf7ade4ecf5">[email protected]</span></a>--
    (i) Within 3 business days after contract award; or
    (ii) Immediately prior to the shipment departure date necessary to 
meet delivery schedules, whichever is earlier; and
    (2) Include in the notification--
    (i) A statement of the Contractor's intent to transport supplies by 
sea;
    (ii) The contract number; and
    (iii) The task-order or delivery-order number, when applicable.
* * * * *
    (e) * * *
    (2) Required shipping date(s) and required delivery date(s);
* * * * *
    (f) The Contractor shall, within 30 days after each shipment 
covered by this clause, provide the Contracting Officer and MARAD at 
<a href="/cdn-cgi/l/email-protection#abe8cad9ccc485e6cad9cacfebcfc4df85ccc4dd"><span class="__cf_email__" data-cfemail="02416370656d2c4f6370636642666d762c656d74">[email protected]</span></a>, Attention: Military Team, one copy of the rated on 
board vessel operating carrier's ocean bill of lading, which shall 
contain the following information:
* * * * *
    (i) If the Contractor did not anticipate transporting any supplies 
by sea at the time of contract award, and, therefore, did not provide 
the notification required by paragraph (b) of this clause, but prior to 
shipment of the supplies, the Contractor learns after the award of the 
contract that supplies will be transported by sea, the Contractor 
shall--
    (1) Provide the notification required by paragraph (b) of this 
clause to the Contracting Officer and MARAD as soon as it is known that 
supplies will be transported by sea; and
    (2) Comply with all the terms and conditions of this clause.
* * * * *

0
8. Amend section 252.247-7025--
0
a. By revising the section heading; and
0
b. In the introductory text by removing ``247.574(c)'' and adding 
``247.574(b)'' in its place.
    The revision reads as follows:


252.247-7025  Reflagging or Repair Work.

* * * * *


252.247-7026  [Amended]

0
9. Amend section 252.247-7026 in the introductory text by removing 
``247.574(d)'' and adding ``247.574(c)'' in its place.

0
10. Amend section 252.247-7027--
0
a. By revising the section heading; and
0
b. In the introductory text by removing ``247.574(e)'' and adding 
``247.574(d)'' in its place.
    The revision reads as follows:


252.247-7027  Riding Gang Member Requirements.

* * * * *
[FR Doc. 2024-21091 Filed 9-25-24; 8:45 am]
 BILLING CODE 6001-FR-P


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