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Federal Register / Vol. 72, No.

58 / Tuesday, March 27, 2007 / Rules and Regulations 14239

as those terms are defined at § 358.3(l); ■ 1. The authority citation for 48 CFR DEPARTMENT OF DEFENSE
and parts 215, 225, and 253 continues to
(2) With respect to an electric read as follows: Defense Acquisition Regulations
Transmission Provider, engages in System
Authority: 41 U.S.C. 421 and 48 CFR
marketing, sales or brokering activities Chapter 1.
as those terms are defined at § 358.3(e). 48 CFR Parts 225 and 252
* * * * * PART 215—CONTRACTING BY RIN 0750–AF34
[FR Doc. E7–5497 Filed 3–26–07; 8:45 am] NEGOTIATION
BILLING CODE 6717–01–P Defense Federal Acquisition
215.404–71–3 [Amended] Regulation Supplement; Prohibition on
Acquisition from Communist Chinese
■ 2. Section 215.404–71–3 is amended
Military Companies (DFARS Case
in paragraph (b)(7), in the first sentence, 2006–D007)
DEPARTMENT OF DEFENSE
by removing ‘‘(see 230.7101–1(a))’’ and
Defense Acquisition Regulations adding in its place ‘‘(see http:// AGENCY: Defense Acquisition
System www.treasurydirect.gov/govt/rates/tcir/ Regulations System, Department of
tcir_opdirsemi.htm)’’. Defense (DoD).
48 CFR Parts 215, 225, and 253 ACTION: Final rule.
215.404–71–4 [Amended]
Defense Federal Acquisition SUMMARY: DoD has adopted as final,
■ 3. Section 215.404–71–4 is amended without change, an interim rule
Regulation Supplement; Technical in paragraph (e)(2) by removing ‘‘(see
Amendments amending the Defense Federal
230.7001)’’. Acquisition Regulation Supplement
AGENCY: Defense Acquisition (DFARS) to implement Section 1211 of
Regulations System, Department of PART 225—FOREIGN ACQUISITION
the National Defense Authorization Act
Defense (DoD). 225.7014 [Amended] for Fiscal Year 2006. Section 1211
ACTION: Final rule. prohibits DoD from acquiring United
■ 4. Section 225.7014 is amended by States Munitions List items from
SUMMARY: DoD is making technical removing ‘‘236.274(a)’’ and adding in its Communist Chinese military
amendments to the Defense Federal place ‘‘236.273(a)’’. companies.
Acquisition Regulation Supplement EFFECTIVE DATE: March 27, 2007.
■ 5. Section 225.7401 is amended by
(DFARS) to update references within the
DFARS text. revising the section heading and FOR FURTHER INFORMATION CONTACT: Ms.
paragraph (a) to read as follows: Amy Williams, Defense Acquisition
EFFECTIVE DATE: March 27, 2007. Regulations System,
FOR FURTHER INFORMATION CONTACT: Ms. 225.7401 Contracts requiring performance OUSD(AT&L)DPAP(DARS), IMD 3C132,
Michele Peterson, Defense Acquisition or delivery in a foreign country. 3062 Defense Pentagon, Washington, DC
Regulations System, (a) If an acquisition requires 20301–3062. Telephone (703) 602–0328;
OUSD(AT&L)DPAP(DARS), IMD 3C132, performance of work in a foreign facsimile (703) 602–0350. Please cite
3062 Defense Pentagon, Washington, DC country by contractor personnel other DFARS Case 2006–D007.
20301–3062. Telephone (703) 602–0311; than host country personnel, or delivery SUPPLEMENTARY INFORMATION:
facsimile (703) 602–0350. of items to a Unified Combatant A. Background
SUPPLEMENTARY INFORMATION: This final Command designated operational area,
rule amends DFARS text as follows: follow the procedures at PGI DoD published an interim rule at 71
• Sections 215.404–71–3 and 225.7401(a). FR 53045 on September 8, 2006, to
215.404–71–4. Removes obsolete cross- implement Section 1211 of the National
references, and adds a reference to the * * * * * Defense Authorization Act for Fiscal
TreasuryDirect Web site for interest rate Year 2006 (Public Law 109–163).
PART 253—FORMS Section 1211 prohibits DoD from
information.
• Section 225.7014. Updates a cross- acquiring goods or services, through a
■ 6. Subpart 253.3 is added to read as contract or a subcontract with a
reference.
follows: Communist Chinese military company,
• Section 225.7401. Updates the
section to provide a more specific if the goods or services being acquired
Subpart 253.3—Illustration of Forms are on the munitions list of the
description of the Procedures,
Guidance, and Information (PGI) text 253.303 Agency forms. International Trafficking in Arms
referenced in paragraph (a). Regulations (the United States
• Part 253. Adds a reference to the DoD forms are available at http:// Munitions List (USML) at 22 CFR Part
DoD Forms Management Program Web www.dtic.mil/whs/directives/infomgt/ 121).
site. forms/formsprogram.htm. One source submitted comments on
[FR Doc. E7–5476 Filed 3–26–07; 8:45 am] the interim rule. That source
List of Subjects in 48 CFR Parts 215, recommended addition of an exception
BILLING CODE 5001–08–P
225, and 253 to the policy that, before issuance of a
Government procurement. solicitation, the requirements activity
must notify the contracting officer
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Michele P. Peterson, whether the items to be acquired are on


Editor, Defense Acquisition Regulations the USML. The exception would apply
System. to items that include critical military
■ Therefore, 48 CFR parts 215, 225, and technology, since those items are
253 are amended as follows: already subject to controls that limit

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14240 Federal Register / Vol. 72, No. 58 / Tuesday, March 27, 2007 / Rules and Regulations

issuance of the solicitation and the DEPARTMENT OF DEFENSE However, there may be several
associated technical data package to contracting officers providing
United States and Canadian firms. Defense Acquisition Regulations administrative support for a contract.
DoD does not agree with the System Therefore, DoD has revised the rule to
recommended change. A company make this approval the responsibility of
located in the United States or Canada 48 CFR Parts 232 and 252 the contracting officer administering the
could fall within the definition of a RIN 0750–AF28 contract for payment.
Communist Chinese military company if 2. Comment: One respondent stated
it is owned or controlled by, or affiliated Defense Federal Acquisition there should be a distinction between
with, an element of the Government or Regulation Supplement; Electronic the requirement for contractors to
armed forces of the People’s Republic of Submission and Processing of submit payment requests in electronic
China. Also, the prohibition applies to Payment Requests (DFARS Case form and the requirement for DoD
subcontracts as well as contracts. An 2005–D009) procurement officials to process
item of critical military technology supporting documents in electronic
could contain a subcontracted AGENCY: Defense Acquisition form.
component that is not subject to the Regulations System, Department of DoD Response: It is DoD policy for all
same controls as the end item, but is on Defense (DoD). required documentation to be submitted
the USML. Therefore, the contracting ACTION: Final rule. and processed in electronic form to
officer needs the specified notification facilitate the payment process. DoD
SUMMARY: DoD has issued a final rule
from the requirements activity to believes the DFARS rule implements
identify all USML items and to ensure amending the Defense Federal this policy and has made no related
that the clause at DFARS 252.225–7007 Acquisition Regulation Supplement changes regarding this requirement in
is included in solicitations and (DFARS) to update policy addressing the final rule.
contracts for those items. requirements for DoD contractors to 3. Comment: One respondent
submit payment requests in electronic recommended limiting the alternative
This rule was not subject to Office of
form. The rule clarifies the situations payment request methods to
Management and Budget review under
under which DoD will grant exceptions conventional mail or facsimile. The
Executive Order 12866, dated
to requirements for electronic respondent pointed out that each new
September 30, 1993.
submission of payment requests. alternative method of submission
B. Regulatory Flexibility Act EFFECTIVE DATE: March 27, 2007. requires the establishment of business
DoD certifies that this final rule will FOR FURTHER INFORMATION CONTACT: Mr. rules to properly monitor payment
not have a significant economic impact John McPherson, Defense Acquisition requests and to ensure timely payment.
on a substantial number of small entities Regulations System, In addition, submission by methods
within the meaning of the Regulatory OUSD(AT&L)DPAP(DARS), IMD 3C132, such as e-mail will require the printing
Flexibility Act, 5 U.S.C. 601, et seq., 3062 Defense Pentagon, Washington, DC and scanning of documents and will
because the rule affects only those 20301–3062. Telephone (703) 602–0296; increase the workload of the payment
entities that are a part of the industrial facsimile (703) 602–0350. Please cite office.
base of the People’s Republic of China DFARS Case 2005–D009. DoD Response: The final rule includes
or that are owned or controlled by, or SUPPLEMENTARY INFORMATION: changes that limit the alternative
affiliated with, an element of the payment request methods to
A. Background conventional mail or facsimile. DoD
Government or armed forces of the
People’s Republic of China. This final rule amends DFARS recognizes that the Defense Finance and
Subpart 232.70 and the corresponding Accounting Service (DFAS) has
C. Paperwork Reduction Act contract clause at 252.232–7003 to established procedures with adequate
The Paperwork Reduction Act does clarify the situations under which DoD controls for the paper and facsimile
not apply, because the rule does not will grant exceptions to requirements submission process to ensure
impose any information collection for electronic submission of payment prevention of duplicate payments and to
requirements that require the approval requests. provide an adequate audit trail. E-mail
of the Office of Management and Budget DoD published a proposed rule at 71 submission is not viable at this time,
under 44 U.S.C. 3501, et seq. FR 14149 on March 21, 2006. Two because DFAS presently does not have
sources submitted comments on the procedures in place to process such
List of Subjects in 48 CFR Parts 225 and proposed rule. A discussion of the submissions and to maintain sufficient
252 comments is provided below. process control.
Government procurement. 1. Comment: One respondent This rule was not subject to Office of
recommended expansion of the DFARS Management and Budget review under
Michele P. Peterson,
text that permits the administrative Executive Order 12866, dated
Editor, Defense Acquisition Regulations contracting officer to authorize September 30, 1993.
System.
submission of a non-electronic payment
B. Regulatory Flexibility Act
Interim Rule Adopted as Final Without request, to also provide this authority to
Change the procuring contracting officer. The DoD certifies that this final rule will
respondent stated that the expansion is not have a significant economic impact
■ Accordingly, the interim rule necessary to identify authorized officials on a substantial number of small entities
amending 48 CFR Parts 225 and 252, for contracts that are not administered within the meaning of the Regulatory
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which was published at 71 FR 53045 on by the Defense Contract Management Flexibility Act, 5 U.S.C. 601, et seq.,
September 8, 2006, is adopted as a final Agency. because the rule is designed to avoid
rule without change. DoD Response: DoD agrees that this any such impact by permitting
[FR Doc. E7–5480 Filed 3–26–07; 8:45 am] authority belongs to the contracting alternative means of requesting payment
BILLING CODE 5001–08–P officer administering the contract. when submission of electronic payment

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