[Federal Register Volume 67, Number 50 (Thursday, March 14, 2002)]
[Proposed Rules]
[Pages 11455-11456]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-5954]
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DEPARTMENT OF DEFENSE
48 CFR Part 252
[DFARS Case 2000-D029]
Defense Federal Acquisition Regulation Supplement; Restriction on
Contingent Fees for Foreign Military Sales--Commercial Items
AGENCY: Department of Defense (DoD).
ACTION: Proposed rule with request for comments.
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SUMMARY: DoD is proposing to amend the Defense Federal Acquisition
Regulation Supplement (DFARS) to remove a clause from the list of
clauses included in contracts for commercial items to implement
provisions of law or Executive orders. The clause proposed for removal
pertains to restrictions on contingent fees for foreign military sales.
DATES: Comments on the proposed rule should be submitted in writing to
the address shown below on or before May 13, 2002, to be considered in
the formation of the final rule.
ADDRESSES: Respondents may submit comments directly on the World Wide
Web at http://emissary.acq.osd.mil/dar/dfars.nsf/pubcomm. As an
alternative, respondents may e-mail comments to: [email protected].
Please cite DFARS Case 2000-D029 in the subject line of e-mailed
comments.
Respondents that cannot submit comments using either of the above
methods may submit comments to: Defense Acquisition Regulations
Council, Attn: Ms. Amy Williams, OUSD(AT&L)DP(DAR), IMD 3C132, 3062
Defense Pentagon, Washington, DC 20301-3062; facsimile (703) 602-0350.
Please cite DFARS Case 2000-D029.
At the end of the comment period, interested parties may view
public comments on the World Wide Web at http://emissary.acq.osd.mil/dar/dfars.nsf.
FOR FURTHER INFORMATION CONTACT: Ms. Amy Williams, (703) 602-0328.
SUPPLEMENTARY INFORMATION:
A. Background
The clause at DFARS 252.212-7001, Contract Terms and Conditions
Required to Implement Statutes or Executive Orders Applicable to
Defense Acquisitions of Commercial Items, includes a list of clauses
that may be included in a contract for commercial items to implement
provisions of law or Executive orders. Included on the list is the
clause at DFARS 252.225-7027, Restriction on Contingent Fees for
Foreign Military Sales, which cites 22 U.S.C. 2779 as its statutory
basis. However, the clause at DFARS 252.225-7027 does not implement 22
U.S.C. 2779, which requires in subsection (c) that no fee may be
included in the amount paid under a contract unless the amount is
reasonable, allocable, and not made to a person who has used improper
influence. The clause at DFARS 252.225-7027 implements DoD policy only,
requiring that, in order for the costs of certain contingent fees to be
allowable, the Government must identify the fees and the foreign
military sales customer must approve payment of the fees in writing
before contract award. This requirement has little effect in commercial
contracts where the price the Government pays is generally a fixed
price, not based on cost analysis.
This rule was not subject to Office of Management and Budget review
under Executive Order 12866, dated September 30, 1993.
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., because most
firms that pay or receive contingent fees for foreign military sales
are not small business concerns. Therefore, DoD has not performed an
initial regulatory flexibility analysis. DoD invites comments from
small businesses and other interested parties. DoD also will consider
comments from small entities concerning the affected DFARS subpart in
accordance with 5 U.S.C. 610. Such comments should be submitted
separately and should cite DFARS Case 2000-D029.
C. Paperwork Reduction Act
The Paperwork Reduction Act does not apply because the rule does
not impose any information collection requirements that require the
approval of the Office of Management and Budget under 44 U.S.C. 3501,
et seq.
[[Page 11456]]
List of Subjects in 48 CFR Part 252
Government procurement.
Michele P. Peterson,
Executive Editor, Defense Acquisition Regulations Council.
Therefore, DoD proposes to amend 48 CFR part 252 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.
PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
252.212-7001 [Amended]
2. Section 252.212-7001 is amended as follows:
a. By revising the clause date to read ``(XXX 2002)'', and
b. In paragraph (b), by removing the entry ``____ 252.225-7027
Restriction on Contingent Fees for Foreign Military Sales (MAR 1998)
(22 U.S.C. 2779).''.
[FR Doc. 02-5954 Filed 3-13-02; 8:45 am]
BILLING CODE 5001-08-U