[Federal Register Volume 63, Number 84 (Friday, May 1, 1998)]
[Rules and Regulations]
[Pages 24129-24130]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-11592]


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DEPARTMENT OF DEFENSE

Department of the Navy

48 CFR Parts 5243 and 5252

RIN 0703-AA34


Adjustments to Prices Under Shipbuilding Contracts

AGENCY: Department of the Navy, DOD.

ACTION: Final rule.

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SUMMARY: The Department of the Navy (DON) is removing certain 
regulations for adjustments to prices under shipbuilding contracts 
contained in the Navy Acquisition Procedures Supplement (48 CFR part 
5243, Secs. 5252.243-9000 and 5252.243-9001). The National Defense 
Authorization Act of Fiscal Year 1998 eliminated the statutory 
authority for these rules. Such rules are now unnecessary and are 
removed immediately. Providing for a comment period before final action 
in this case would be unnecessary, impracticable, and contrary to 
public interest. However, DON will accept and consider comments from 
interested persons in evaluating the effect of this action.

DATES: Effective Date of Removal: May 1, 1998.
    Comment Date: Comments on this removal action should be submitted 
in writing to the address shown below on or before June 30, 1998.

ADDRESSES: Interested parties should submit written comments to 
Department of the Navy, Office of the Assistant Secretary of the Navy 
(Research, Development and Acquisition) Acquisition and Business 
Management, 2211 South Clark Place, Arlington, Virginia, 22244-5104.

FOR FURTHER INFORMATION CONTACT: Mr. Michael G. Shaffer, (703)602-1263.

SUPPLEMENTARY INFORMATION:

A. Background

    The Department of Defense Authorization Act, 1985 (Pub. L. 98-525 
Sec. 1234(a), 98 Stat. 2604, Oct. 19, 1984) established certain 
limitations on price adjustments made to shipbuilding contracts, which 
were codified at 10 U.S.C. 2405. The DON published proposed rules to 
implement the requirements of 10 U.S.C. 2405 in the Federal Register on 
Nov. 16, 1989 (54 FR 47689). A correction and extension of the public 
comment period was published in the Federal Register on Feb. 2, 1990 
(55 FR 3603). Revised proposed rules and notice of additional public 
comment period and public hearing were published in the Federal 
Register on Jun. 29, 1990 (55 FR 26708). Extension of the public 
comment period and rescheduling of the public hearing were published in 
the Federal Register on Aug. 16 and Oct. 26, 1990 (55 FR 33541 and 
43150). An interim rule and request for comments was published in the 
Federal Register on Dec. 5, 1991 (56 FR 63664). This interim rule added 
to title 48 of the Code of Federal Regulations a new Part 5243, as well 
as new Secs. 5252.243-9000 and 5252.243-9001, and was made effective on 
Dec. 5, 1991. No final rule was published.
    Section 810 of the National Defense Authorization Act for Fiscal 
Year 1998 (Pub. L. 105-85, 111 Stat. 1839, Nov. 18, 1997) repealed 10 
U.S.C. 2405, making the Navy's implementing regulations contained in 48 
CFR parts 5243 and 5252 unnecessary. For this reason, the Navy is now 
removing and reserving 48 CFR part 5243 in its entirety, as well as 
Secs. 5252.243-9000 and 5252.243-9001.
    While the Navy is removing part 5243 in its entirety from the Code 
of Federal Regulations, information and policy statements regarding 
contract modifications remain in part 5243 of the Navy Acquisition 
Procedures Supplement (``NAPS''), which may be accessed at 
www.abm.rda.hq.navy.mil/naps, or by contacting the office listed in the 
ADDRESSES block.

B. Determination To Remove Without Prior Public Comment

    This removal action is being issued as a final rule without a 
public comment period as an exception to the DON's standard practice of 
soliciting comments during the rulemaking process. Providing a period 
for public comment in this case would be unnecessary, impracticable, 
and contrary to the public interest. This determination is based on two 
factors. First, removal of these rules is entirely administrative and 
corrective in nature, not requiring the exercise of agency discretion. 
Second, to allow these rules to remain in the Code of Federal 
Regulations any longer may mislead and confuse the public regarding 
statutory requirements relating to adjustments of any price under a 
shipbuilding contract for the amount set forth in a claim, request for 
equitable adjustment, or demand for payment.

C. Matters of Regulatory Procedure

Executive Order 12866, Regulatory Planning and Review

    Removal of these rules does not meet the definition of 
``significant regulatory action'' for purposes of E.O. 12866.

[[Page 24130]]

Regulatory Flexibility Act

    Removal of these rules will not have a significant economic impact 
on a substantial number of small entities for purposes of the 
Regulatory Flexibility Act (5 U.S.C. chapter 6).

Paperwork Reduction Act

    Removal of these rules will not impose collection of information 
requirements for purposes of the Paperwork Reduction Act (44 U.S.C. 
chapter 35, 5 CFR Part 1320).

List of Subjects in 48 CFR Parts 5243 and 5252

    Government procurement.

    Dated: April 22, 1998.
Michael I. Quinn,
Commander, Judge Advocate General's Corps, U.S. Navy, Federal Register 
Liaison Officer.

    Under the authority of Sec. 810 of Pub. L. 105-85, and for the 
reasons set forth in the preamble, remove and reserve part 5243 and 
Sections 5252.243-9000 and 5252.243-9001 of title 48 of the Code of 
Federal Regulations.

[FR Doc. 98-11592 Filed 4-30-98; 8:45 am]
BILLING CODE 3810-FF-P