[Federal Register Volume 70, Number 34 (Tuesday, February 22, 2005)]
[Proposed Rules]
[Pages 8565-8566]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-3196]
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DEPARTMENT OF DEFENSE
48 CFR Part 241
[DFARS Case 2003-D096]
Defense Federal Acquisition Regulation Supplement; Utility Rates
Established by Regulatory Bodies
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 update text pertaining to utility
rates established by independent and nonindependent regulatory bodies.
This proposed rule is a result of a transformation initiative
undertaken by DoD to dramatically change the purpose and content of the
DFARS.
DATES: Comments on the proposed rule should be submitted in writing to
the address shown below on or before April 25, 2005, to be considered
in the formation of the final rule.
ADDRESSES: You may submit comments, identified by DFARS Case 2003-D096,
using any of the following methods:
Federal eRulemaking Portal: http://www.regulations.gov.
Follow the instructions for submitting comments.
Defense Acquisition Regulations Web Site: http://emissary.acq.osd.mil/dar/dfars.nsf/pubcomm. Follow the instructions for
submitting comments.
E-mail: [email protected]. Include DFARS Case 2003-D096 in the
subject line of the message.
Fax: (703) 602-0350.
Mail: Defense Acquisition Regulations Council, Attn: Ms.
Michele Peterson, OUSD(AT&L)DPAP(DAR), IMD 3C132, 3062 Defense
Pentagon, Washington, DC 20301-3062.
Hand Delivery/Courier: Defense Acquisition Regulations
Council, Crystal Square 4, Suite 200A, 241 18th Street, Arlington, VA
22202-3402.
All comments received will be posted to http://emissary.acq.osd.mil/dar/dfars.nsf.
FOR FURTHER INFORMATION CONTACT: Ms. Michele Peterson, (703) 602-0311.
SUPPLEMENTARY INFORMATION:
A. Background
DFARS Transformation is a major DoD initiative to dramatically
change the purpose and content of the DFARS. The objective is to
improve the efficiency and effectiveness of the acquisition process,
while allowing the acquisition workforce the flexibility to innovate.
The transformed DFARS will contain only requirements of law, DoD-wide
policies, delegations of FAR authorities, deviations from FAR
requirements, and policies/procedures that have a significant effect
beyond the internal operating procedures of DoD or a significant cost
or administrative impact on contractors or offerors. Additional
information on the DFARS Transformation initiative is available at
http://www.acq.osd.mil/dpap/dfars/transf.htm.
This proposed rule is a result of the DFARS Transformation
initiative. The proposed changes--
Revise DFARS 241.201 to clarify that utility rates
established by independent regulatory bodies may be relied upon as fair
and reasonable; and
Add DFARS 241.501 to clarify requirements for use of
contract clauses addressing changes in rates for regulated and
unregulated utility services.
This rule was not subject to Office of Management and Budget review
under Executive Order 12866, dated September 30, 1993.
B. Regulatory Flexibility Act
DoD does not expect this 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 the proposed
rule contains clarifying amendments, with no significant change to
contracting policy. 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 subparts in
accordance with 5 U.S.C. 610. Such comments should be
[[Page 8566]]
submitted separately and should cite DFARS Case 2003-D096.
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.
List of Subjects in 48 CFR Part 241
Government procurement.
Michele P. Peterson,
Editor, Defense Acquisition Regulations System.
Therefore, DoD proposes to amend 48 CFR part 241 as follows:
1. The authority citation for 48 CFR part 241 continues to read as
follows:
Authority: 41 U.S.C. 421 and 48 CFR Chapter 1.
PART 241--ACQUISITION OF UTILITY SERVICES
2. Section 241.201 is revised to read as follows:
241.201 Policy.
(1) DoD, as a matter of comity, generally complies with the current
regulations, practices and decisions of independent regulatory bodies.
This policy does not extend to nonindependent regulatory bodies.
(2) Purchases of utility services outside the United States may
use--
(i) Formats and technical provisions consistent with local
practice; and
(ii) Dual language forms and contracts.
(3) Rates established by an independent regulatory body--
(i) Are considered ``prices set by law or regulation'';
(ii) Are sufficient to set prices without obtaining cost or pricing
data (see FAR subpart 15.4); and
(iii) Are a valid basis on which prices can be determined fair and
reasonable.
(4) Compliance with the regulations, practices, and decisions of
independent regulatory bodies as a matter of comity is not a substitute
for the procedures at FAR 41.202(a).
3. Section 241.501 is added to read as follows:
241.501 Solicitation provision and contract clauses.
(d)(1) Use a clause substantially the same as the clause at FAR
52.241-7, Change in Rates or Terms and Conditions of Service for
Regulated Services, when the utility services to be provided are
subject to an independent regulatory body.
(2) Use a clause substantially the same as the clause at FAR
52.241-8, Change in Rates or Terms and Conditions of Service for
Unregulated Services, when the utility services to be provided are not
subject to a regulatory body or are subject to a nonindependent
regulatory body.
[FR Doc. 05-3196 Filed 2-18-05; 8:45 am]
BILLING CODE 5001-08-P