[Federal Register Volume 71, Number 14 (Monday, January 23, 2006)]
[Rules and Regulations]
[Page 3418]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 06-564]
[[Page 3418]]
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DEPARTMENT OF DEFENSE
48 CFR Part 241
[DFARS Case 2003-D096]
Defense Acquisition Regulations System; Defense Federal
Acquisition Regulation Supplement; Utility Rates Established by
Regulatory Bodies
AGENCY: Defense Acquisition Regulations System, Department of Defense
(DoD).
ACTION: Final rule.
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SUMMARY: DoD has issued a final rule amending the Defense Federal
Acquisition Regulation Supplement (DFARS) to update text pertaining to
utility rates established by independent and nonindependent regulatory
bodies. This rule is a result of a transformation initiative undertaken
by DoD to dramatically change the purpose and content of the DFARS.
DATES: Effective Date: January 23, 2006.
FOR FURTHER INFORMATION CONTACT: Ms. Robin Schulze, Defense Acquisition
Regulations System, OUSD (AT&L) DPAP (DARS), IMD 3C132, 3062 Defense
Pentagon, Washington, DC 20301-3062. Telephone (703) 602-0326;
facsimile (703) 602-0350. Please cite DFARS Case 2003-D096.
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/dars/dfars/transformation/index.htm.
This final rule is a result of the DFARS Transformation initiative.
The rule--
Revises DFARS 241.201 to clarify that utility rates
established by independent regulatory bodies may be relied upon as fair
and reasonable; and
Adds DFARS 241.501 to clarify requirements for use of
contract clauses addressing changes in rates for regulated and
unregulated utility services.
DoD published a proposed rule at 70 FR 8565 on February 22, 2005.
DoD received no comments on the proposed rule. Therefore, DoD has
adopted the proposed rule as a final rule without change.
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 certifies that this final rule will not 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 rule contains clarifying DFARS amendments, with no
significant change to DoD contracting policy.
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.
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Therefore, 48 CFR part 241 is amended as follows:
PART 241--ACQUISITION OF UTILITY SERVICES
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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.
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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).
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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. 06-564 Filed 1-20-06; 8:45 am]
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