[Federal Register Volume 62, Number 201 (Friday, October 17, 1997)]
[Proposed Rules]
[Pages 54017-54018]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-27437]
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DEPARTMENT OF DEFENSE
48 CFR Part 252
[DFARS Case 97-D029]
Defense Federal Acquisition Regulation Supplement; Reporting of
Contract Performance Outside the United States
AGENCY: Department of Defense (DoD).
ACTION: Proposed rule with request for comments.
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SUMMARY: The Director of Defense Procurement is proposing to amend the
Defense Federal Acquisition Regulation Supplement (DFARS) to raise the
threshold for reporting contract performance outside the United States
from $25,000 to the simplified acquisition threshold, under contracts
exceeding $500,000.
DATES: Comment date: Comments on the proposed rule should be submitted
in writing to the address shown below on or before December 16, 1997,
to be considered in the formulation of the final rule.
ADDRESSES: Interested parties should submit written comments to:
Defense Acquisition Regulations Council, Attn: Ms. Amy Williams, PDUSD
(A&T) DP (DAR), IMD 3D139, 3062 Defense Pentagon, Washington, DC 20301-
3062. Telefax number (703) 602-0350.
E-mail comments submitted over the Internet should be addressed to:
[email protected]
Please cite DFARS Case 97-D029 in all correspondence related to
this issue. E-mail comments should cite DFARS Case 97-D029 in the
subject line.
FOR FURTHER INFORMATION CONTACT: Ms. Amy Williams, (703) 602-0131.
SUPPLEMENTARY INFORMATION:
A. Background
The clause at DFARS 252.225-7026, Reporting of Contract Performance
Outside the United States, presently requires a contractor to submit a
report to the Deputy Director of Defense Procurement (Foreign
Contracting) under a contract exceeding $500,000, when any part that
exceeds $25,000 will be performed outside the United States, unless a
foreign place of performance is the principal place of performance and
was indicated as such in the offer for the contract. This rule proposes
to increase the $25,000 threshold to the simplified acquisition
threshold ($100,000). In addition, the rule proposes to increase the
threshold for incorporation of the clause in first-tier subcontracts
from $100,000 to $500,000. These amendments are expected to reduce
information collection requirements by approximately 40 percent.
B. Regulatory Flexibility Act
The proposed rule is not expected 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. Annually,
approximately 55 contractors submit a total of approximately 1400
reports of contract performance outside the United States. Reporting
varies from 1 to 50 reports per contractor. Most of the contractors
that submit the reports are not small businesses, and the report is not
excessively time-consuming. An initial regulatory flexibility analysis
has therefore not been performed. Comments are invited from small
businesses and other interested parties. Comments from small entities
concerning the affected DFARS subpart also will be considered in
accordance with 5 U.S.C. 610. Such comments should be submitted
separately and should cite DFARS Case 97-D029 in correspondence.
C. Paperwork Reduction Act
The rule will result in a reduction of paperwork burden on
contractors. The clause at DFARS 252.225-7026 presently has an approved
annual information collection requirement of 900 hours under Office of
Management and Budget Clearance Number 0704-0229. Based on a review of
1995 and 1996 data, it is estimated that the amendments in this rule
will reduce annual information collection requirements by approximately
360 hours.
List of Subjects in 48 CFR Part 252
Government procurement.
Michele P. Peterson,
Executive Editor, Defense Acquisition Regulations Council.
Therefore, 48 CFR part 252 is proposed to be amended as follows:
1. The authority citation for 48 CFR Part 252 continues to read as
follows:
Authority: 41 U.S.C. 421 and 48 CFR Chapter 1.
[[Page 54018]]
PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
2. Section 252.225-7026 is amended by revising the clause date and
the introductory text of paragraph (a)(3); by redesignating paragraphs
(d)(i), (d)(ii), and (d)(iii) as paragraphs (d)(1), (d)(2), and (d)(3),
respectively; and by revising paragraph (c)(1). The revised text reads
as follows:
252.225-7026 Reporting of Contract Performance Outside the United
States.
* * * * *
REPORTING OF CONTRACT PERFORMANCE OUTSIDE THE UNITED STATES (XXX
19XX)
(a) * * *
(3) Contracts exceeding $500,000, when any part that exceeds the
simplified acquisition threshold in Part 2 of the Federal Acquisition
Regulation will be performed outside the United States, unless a
foreign place of performance is--
* * * * *
(c) * * *
(1) The Contractor shall include a clause substantially the same as
this one in all first-tier subcontracts exceeding $500,000, except
subcontracts for commercial items, construction, ores, natural gases,
utilities, petroleum products and crudes, timber (logs), or
subsistence.
* * * * *
[FR Doc. 97-27437 Filed 10-16-97; 8:45 am]
BILLING CODE 5000-04-M