97-27437. Defense Federal Acquisition Regulation Supplement; Reporting of Contract Performance Outside the United States

[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 [phone].
    E-mail comments submitted over the Internet should be addressed to: 
[e-mail]
    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, [phone].

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