Acquisition regulations: Contract financing; flexible progress payments method,

[Federal Register: February 23, 1999 (Volume 64, Number 35)]

[Rules and Regulations]

[Page 8731]

From the Federal Register Online via GPO Access [wais.access.gpo.gov]

[DOCID:fr23fe99-16]

[[Page 8731]]

DEPARTMENT OF DEFENSE

48 CFR Parts 232 and 252

[DFARS Case 98-D400]

Defense Federal Acquisition Regulation Supplement; Flexible Progress Payments

AGENCY: Department of Defense (DoD).

ACTION: Final rule.

SUMMARY: The Director of Defense Procurement has issued a final rule amending the Defense Federal Acquisition Regulation Supplement (DFARS) to remove references to the flexible progress payments method of contract financing. Prior to issuance of this rule, the DFARS coverage did not permit use of flexible progress payments for contracts awarded as a result of solicitations issued on or after November 11, 1993.

EFFECTIVE DATE: February 23, 1999.

FOR FURTHER INFORMATION CONTACT: Ms. Sandra G. Haberlin, Defense Acquisition Regulations Council, PDUSD (A&T) DP (DAR), IMD 3D139, 3062 Defense Pentagon, Washington, DC 20301-3062. Telephone (703) 602-0131; telefax (703) 602-0350. Please cite DFARS Case 98-D400.

SUPPLEMENTARY INFORMATION:

1. Background

   This final rule removes references to flexible progress payments from the DFARS. Prior to issuance of this rule, Table 32-1 at DFARS 232.502-1-71 indicated that flexible progress payments were not permitted for contracts awarded as a result of solicitations issued on or after November 11, 1993. Therefore, this rule does not reflect a policy change but merely removes obsolete coverage.

   This final rule is unchanged from the proposed rule that was published in the Federal Register on September 8, 1998 (63 FR 47460). All comments received in response to the proposed rule were considered in the development of the final rule.

2. Regulatory Flexibility Act

   The Department of Defense 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 most contracts awarded to small entities have a dollar value less than the simplified acquisition threshold, and, therefore, would not use the flexible progress payments method of financing. In addition, prior to issuance of this rule, flexible progress payments were not permitted for contracts awarded as a result of solicitations issued on or after November 11, 1993.

3. Paperwork Reduction Act

   The Paperwork Reduction Act does not apply because the final 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 Parts 232 and 252

   Government procurement. Michele P. Peterson, Executive Editor, Defense Acquisition Regulations Council.

   Therefore, 48 CFR Parts 232 and 252 are amended as follows:

   1. The authority citation for 48 CFR Parts 232 and 252 continues to read as follows:

      Authority: 41 U.S.C. 421 and 48 CFR Chapter 1.

      PART 232--CONTRACT FINANCING

   2. Section 232.501 is revised to read as follows:

      232.501 General.

      232.501-1 [Amended]

   3. Section 232.501-1 is amended by removing paragraph (a)(iii).

      232.501-2 [Amended]

   4. Section 232.501-2 is amended in the second sentence by revising the parenthetical ``(232.171)'' to read ``(see 232.071)''.

      232.502-1-71 [Removed]

   5. Section 232.502-1-71 is removed.

      232.502-4-70 [Amended]

   6. Section 232.502-4-70 is amended by removing paragraph (b) and redesignating paragraph (c) as paragraph (b).

      PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

      252.232-7003 [Removed and Reserved]

   7. Section 252.232-7003 is removed and reserved.

   8. Section 252.232-7004 is amended by revising the introductory text to read as follows:

      252.232-7004 DoD progress payment rates.

      As prescribed in 232.502-4-70(b), use the following clause: * * * * *

      [FR Doc. 99-4344Filed2-22-99; 8:45 am]

      BILLING CODE 5000-04-M