65218 Federal Register / Vol. 78, No. 211 / Thursday, October 31, 2013 / Rules and Regulations 

and applicable discounts. In addition, 

describe the nature of the market; or 

(C) For items included on an active Federal 

Supply Service Multiple Award Schedule 

contract, proof that an exception has been 

granted for the schedule item. 

(3) The Offeror grants the Contracting 

Officer or an authorized representative the 

right to examine, at any time before award, 

books, records, documents, or other directly 

pertinent records to verify any request for an 

exception under this provision, and the 

reasonableness of price. For items priced 

using catalog or market prices, or law or 

regulation, access does not extend to cost or 

profit information or other data relevant 

solely to the Offeror’s determination of the 

prices to be offered in the catalog or 

marketplace. 

(4) Requirements for certified cost or 

pricing data. If the Offeror is not granted an 

exception from the requirement to submit 

certified cost or pricing data, the following 

applies: 

(i) The Offeror shall prepare and submit 

certified cost or pricing data and supporting 

attachments in accordance with the 

instructions contained in Table 15–2 of FAR 

15.408, which is incorporated by reference 

with the same force and effect as though it 

were inserted here in full text. The 

instructions in Table 15–2 are incorporated 

as a mandatory format to be used, unless the 

Contracting Officer and the Offeror agree to 

a different format. 

(ii) As soon as practicable after agreement 

on price, but before contract award (except 

for unpriced actions such as letter contracts), 

the offeror shall submit a Certificate of 

Current Cost or Pricing Data, as prescribed by 

FAR 15.406–2. 

(c) If the Offeror is the Canadian 

Commercial Corporation, certified cost or 

pricing data are not required. If the 

Contracting Officer notifies the Canadian 

Commercial Corporation that additional data 

other than certified cost or pricing data are 

required in accordance with 225.870–4(c), 

the Canadian Commercial Corporation shall 

obtain and provide the following: 

(1) Profit rate or fee (as applicable). 

(2) Analysis provided by Public Works and 

Government Services Canada to the Canadian 

Commercial Corporation to determine a fair 

and reasonable price (comparable to the 

analysis required at FAR 15.404–1). 

(3) Data other than certified cost or pricing 

data necessary to permit a determination by 

the U.S. Contracting Officer that the 

proposed price is fair and reasonable [U.S. 

Contracting Officer to provide description of 

the data required in accordance with FAR 

15.403–3(a)(1) with the notification]. 

(4) As specified in FAR 15.403–3(a)(4), an 

offeror who does not comply with a 

requirement to submit data that the U.S. 

Contracting Officer has deemed necessary to 

determine price reasonableness or cost 

realism is ineligible for award unless the 

head of the contracting activity determines 

that it is in the best interest of the 

Government to make the award to that 

offeror. 

(d) If negotiations are conducted, the 

negotiated price should not exceed the 

offered price. 

(End of provision) 

252.215–7009 [Amended] 

■ 13. Section 252.215–7009 is amended 

by, in the introductory text, removing 

‘‘215.408(6)’’ and adding ‘‘215.408(5)’’ 

in its place. 

[FR Doc. 2013–25728 Filed 10–30–13; 8:45 am] 

BILLING CODE 5001–06–P 

DEPARTMENT OF DEFENSE 

Defense Acquisition Regulations 

System 

48 CFR Part 237 

RIN 0750–AI05 

Defense Federal Acquisition 

Regulation Supplement: Private Sector 

Notification Requirements of InSourcing Actions DFARS Case 2012– 

D036 

AGENCY: Defense Acquisition 

Regulations System, Department of 

Defense (DoD). 

ACTION: Interim rule. 

SUMMARY: DoD is issuing an interim rule 

amending the Defense Federal 

Acquisition Regulation Supplement 

(DFARS) to implement a section of the 

National Defense Authorization Act 

regarding private sector notification of 

in-sourcing actions. 

DATES: Effective date: October 31, 2013. 

Comment date: Comments on the 

interim rule should be submitted in 

writing to the address shown below on 

or before December 30, 2013, to be 

considered in the formation of a final 

rule.’’ 

ADDRESSES: Submit comments 

identified by DFARS Case 2012–D036 

using any of the following methods: 

Æ Regulations.gov: http://

www.regulations.gov. Submit comments 

via the Federal eRulemaking portal by 

entering ‘‘DFARS Case 2012–D036’’ 

under the heading ‘‘Enter keyword or 

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

link ‘‘Submit a Comment’’ that 

corresponds with ‘‘DFARS Case 2012– 

D036.’’ Follow the instructions provided 

at the ‘‘Submit a Comment’’ screen. 

Please include your name, company 

name (if any), and ‘‘DFARS Case 2012– 

D036 on your attached document. 

Æ Email: dfars@osd.mil. Include 

DFARS Case 2012–D036 in the subject 

line of the message. 

Æ Fax: 571–372–6094. 

Æ Mail: Defense Acquisition 

Regulations System, Attn: 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; facsimile 

571–372–6101. 

SUPPLEMENTARY INFORMATION: 

I. Background 

This interim rule revises DFARS 

237.102–79 to implement section 938 of 

the National Defense Authorization Act 

(NDAA) for Fiscal Year (FY) 2012 

regarding private sector notification of 

in-sourcing actions. 

II. Discussion and Analysis 

Section 938 of the NDAA requires the 

Secretary of Defense to establish 

procedures for the timely notification of 

any contractor who performs a function 

that the Secretary plans to convert (insource) to performance by DoD civilian 

employees. A written notification will 

be provided to affected incumbent 

contractors within 20 business days of 

the contracting officer’s receipt of a 

decision by the cognizant component 

in-sourcing program official to in-source 

services. The notification will 

summarize why the services are being 

insourced and must be coordinated with 

the component’s in-sourcing program 

official. A copy of the notification will 

be provided to the congressional 

defense committees. 

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 


wreier-aviles on DSK5TPTVN1PROD with RULES
Federal Register / Vol. 78, No. 211 / Thursday, October 31, 2013 / Rules and Regulations 65219 

rule is not a major rule under 5 U.S.C. 

804. 

IV. Regulatory Flexibility Act 

DoD does not expect this interim 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 impacts only those 

incumbent contractors for which an insourcing determination has been made. 

The DFARS change relates solely to a 

notification requirement of a decision, 

made outside of acquisition regulatory 

channels, to convert a contracted 

function to performance by DoD civilian 

employees. The impact of this interim 

rule will be to heighten the awareness 

of impacted firms. An initial regulatory 

flexibility analysis has been performed 

and is summarized as follows: 

This action implements section 938 of 

the National Defense Authorization Act 

(NDAA) for Fiscal Year 2012 regarding 

private sector notification of in-sourcing 

actions. Section 938 of the NDAA 

requires the Secretary of Defense to 

establish procedures for the timely 

notification of any contractor that 

performs a function that the Secretary 

plans to convert (in-source) to 

performance by DoD civilian employees 

and to also provide the congressional 

defense committees a copy of any such 

notification. 

The interim rule will apply to all 

small business concerns that have 

contracts with DoD agencies that are 

being in-sourced. The most recent data 

from the DoD Office of Small Business 

Programs for fiscal years 2009 thru 2012 

shows an average of 59,362 small 

business concerns have contracts with 

DoD. The degree of potential impact of 

this rule to those concerns, however, is 

unknown since there is no way to gauge 

in advance the extent of any future insourcing decisions. 

There are no projected reporting, 

recordkeeping, and other compliance 

requirements associated with this rule. 

The rule does not duplicate, overlap, or 

conflict with any other Federal rules. 

DoD has not identified any alternatives 

that would fulfill the requirements of 

the statute and reduce impact on small 

businesses. Any impact of the rule is 

expected to be beneficial to small 

businesses, by giving them timely 

notification of planned in-sourcing 

actions. 

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 2012–D036), 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). 

VI. Determination To Issue an Interim 

Rule 

A determination has been made under 

the authority of the Secretary of 

Defense, pursuant to 41 U.S.C. 1707(d), 

that urgent and compelling reasons exist 

to promulgate this rule on an interim 

basis without prior opportunity for 

public comment. This action is 

necessary to implement section 938 of 

the National Defense Authorization Act 

(NDAA) for Fiscal Year 2012, which 

requires DoD to provide notification to 

the private sector of in-sourcing action 

determinations. Section 938 requires the 

Secretary of Defense to establish 

procedures for the timely notification of 

any incumbent contractor who performs 

a function that the Secretary plans to 

convert (in-source) to performance by 

DoD civilian employees. The 

notification must also be provided to the 

congressional defense committees. Insourcing decisions may have a 

significant economic effect on firms that 

have contracts with DoD. Firms that are 

not notified on a timely basis of an insourcing determination that impacts 

them have less time to prepare for lost 

revenue and to make staffing 

adjustments. The rule, in addition to 

ensuring that there will be timely 

notification to affected contractors, 

should help facilitate a more seamless 

transition in services when 

implementing in-sourcing requirements. 

Nonetheless, pursuant to 41 U.S.C. 1707 

and FAR 1.501–3(b), DoD will consider 

public comments received in response 

to this interim rule in the formation of 

the final rule. 

List of Subjects in 48 CFR Part 237 

Government procurement. 

Manuel Quinones, 

Editor, Defense Acquisition Regulations 

System. 

Therefore, 48 CFR part 237 are 

amended as follows: 

PART 237—SERVICE CONTRACTING 

■ 1. The authority citation for 48 CFR 

part 237 continues to read as follows: 

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

chapter 1. 

■ 2. Section 237.102–79 is revised to 

read as follows: 

237.102–79 Private sector notification 

requirements in support of in-sourcing 

actions. 

In accordance with 10 U.S.C. 2463, 

contracting officers shall provide 

written notification to affected 

incumbent contractors of Government 

in-sourcing determinations. Notification 

shall be provided within 20 business 

days of the contracting officer’s receipt 

of a decision from the cognizant 

component in-sourcing program official. 

The notification will summarize the 

requiring official’s final determination 

as to why the service is being in-sourced 

and shall be coordinated with the 

component’s in-sourcing program 

official. No formal hiring or contractrelated actions may be initiated prior to 

such notification, except for preliminary 

internal actions associated with hiring 

or contract modification. The 

memorandum on private sector 

notification requirements in support of 

in-sourcing actions is available at PGI 

237.1, under the Supplemental 

Information tab. 

[FR Doc. 2013–25727 Filed 10–30–13; 8:45 am] 

BILLING CODE 5001–06–P 

DEPARTMENT OF DEFENSE 

Defense Acquisition Regulations 

System 

48 CFR Part 245 

RIN 0750–AI03 

Defense Federal Acquisition 

Regulation Supplement: Approval of 

Rental Waiver Requests (DFARS Case 

2013–D006) 

AGENCY: Defense Acquisition 

Regulations System, Department of 

Defense (DoD). 

ACTION: Final rule. 

SUMMARY: DoD is issuing a final rule 

amending the Defense Federal 

Acquisition Regulation Supplement 

(DFARS) to remove the Director of 

Defense Security Cooperation Agency 

from the approval process for waiver or 

reduction of charges for the use of 

Government property on work for 

foreign governments or international 

organizations. 

DATES: Effective October 31, 2013. 

FOR FURTHER INFORMATION CONTACT: 

Annette Gray, telephone 571–372–6093. 

SUPPLEMENTARY INFORMATION: 


wreier-aviles on DSK5TPTVN1PROD with RULES