Rule2022-08816
Defense Federal Acquisition Regulation Supplement: Repeal of DFARS Provision “Payment in Local Currency (Afghanistan)” (DFARS Case 2022-D001)
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
April 28, 2022
Effective
April 28, 2022
Issuing agencies
Defense DepartmentDefense Acquisition Regulations System
Abstract
DoD is issuing a final rule amending the Defense Federal Acquisition Regulation Supplement (DFARS) to remove a solicitation provision that is no longer necessary.
Full Text
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<title>Federal Register, Volume 87 Issue 82 (Thursday, April 28, 2022)</title>
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[Federal Register Volume 87, Number 82 (Thursday, April 28, 2022)]
[Rules and Regulations]
[Pages 25152-25153]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-08816]
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DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System
48 CFR Parts 232 and 252
[Docket DARS-2022-0009]
RIN 0750-AL53
Defense Federal Acquisition Regulation Supplement: Repeal of
DFARS Provision ``Payment in Local Currency (Afghanistan)'' (DFARS Case
2022-D001)
AGENCY: Defense Acquisition Regulations System, Department of Defense
(DoD).
ACTION: Final rule.
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SUMMARY: DoD is issuing a final rule amending the Defense Federal
Acquisition Regulation Supplement (DFARS) to remove a solicitation
provision that is no longer necessary.
DATES: Effective April 28, 2022.
FOR FURTHER INFORMATION CONTACT: Ms. Barbara J. Salcido, telephone 571-
372-6102.
SUPPLEMENTARY INFORMATION:
I. Background
As required at DFARS subpart 232.72, Payment in Local Currency
(Afghanistan), DFARS solicitation provision 252.232-7014, Payment in
Local Currency (Afghanistan), is included in all solicitations,
including solicitations using Federal Acquisition Regulation (FAR) part
12 procedures for the acquisition of commercial items, for performance
in Afghanistan. The provision notifies host nation (Afghan) vendors
that the contract resulting from the solicitation will be paid in local
currency (Afghani) via electronic funds transfer to a local (Afghan)
banking institution unless an exception applies. It also notifies host
nation vendors that contracts would not be awarded if they did not bank
locally. Host nation vendors were required to submit quotations and
offers in U.S. dollars, but the contract would be converted to Afghani
using the current U.S. budget rate (i.e., U.S. Treasury rate of
exchange) upon award.
Due to the drawdown of operations in Afghanistan, the text at DFARS
232.72 and solicitation provision 252.232-7014 are no longer required.
The U.S. Department of the Treasury has placed the Taliban, the de
facto government in Afghanistan, on the Office of Foreign Assets
Control Sanction List. Therefore, payment cannot be made to an Afghan
vendor in Afghani via electronic funds to an Afghan banking
institution. Consequently, this rule is repealing DFARS subpart 232.72
and solicitation provision 252.232-7014, since these requirements are
rendered inoperable with the drawdown of operations in Afghanistan.
II. Publication of This Final Rule for Public Comment Is Not Required
by Statute
The statute that applies to the publication of the FAR is 41 U.S.C.
1707, Publication of Proposed Regulations. Subsection (a)(1) of the
statute requires that a procurement policy, regulation, procedure or
form (including an amendment or modification thereof) must be published
for public comment if it relates to the expenditure of appropriated
funds and has either a significant effect beyond the internal operating
procedures of the agency issuing the policy, regulation, procedure or
form, or has a significant cost or administrative impact on contractors
or offerors. This final rule is not required to be published for public
comment, because the rule is merely removing an obsolete solicitation
provision from the DFARS. The rule does not have a significant cost or
administrative impact on contractors or offerors and does not have a
significant effect beyond DoD's internal operating procedures.
III. Applicability to Contracts at or Below the Simplified Acquisition
Threshold, for Commercial Products Including Commercially Available
Off-the-Shelf Items, and for Commercial Services
This rule only removes obsolete DFARS subpart 232.72, Payment in
Local Currency (Afghanistan), and DFARS solicitation provision 252.232-
7014, Payment in Local Currency (Afghanistan). The rule does not impose
any new requirements on contracts valued at or below the simplified
acquisition threshold, for commercial products including commercially
available off-the-shelf items, or for commercial services.
IV. Executive Orders 12866 and 13563
Executive Orders (E.O.) 12866 and E.O. 13563 direct agencies to
assess all costs and benefits of available regulatory alternatives and,
if regulation is necessary, to select regulatory approaches that
maximize net benefits (including potential economic, environmental,
public health and safety effects, distributive impacts, and equity).
E.O. 13563 emphasizes the importance of quantifying both costs and
benefits, of reducing costs, of harmonizing rules, and of promoting
flexibility. This is not a significant regulatory action and,
therefore, was not subject to review under section 6(b) of E.O. 12866,
Regulatory Planning and Review, dated September 30, 1993.
V. Congressional Review Act
As required by the Congressional Review Act (5 U.S.C. 801-808)
before an interim or final rule takes effect, DoD will submit a copy of
the interim or final rule with the form, Submission of Federal Rules
under the Congressional Review Act, to the U.S. Senate, the U.S. House
of Representatives, and the Comptroller General of the United States. A
major rule under the Congressional Review Act cannot take effect until
60 days after it is published in the Federal Register. The Office of
Information and Regulatory Affairs has
[[Page 25153]]
determined that this rule is not a major rule as defined by 5 U.S.C.
804.
VI. Regulatory Flexibility Act
The Regulatory Flexibility Act does not apply to this rule because
this final rule does not constitute a significant DFARS revision within
the meaning of FAR 1.501-1, and 41 U.S.C. 1707 does not require
publication for public comment.
VII. Paperwork Reduction Act
The rule does not contain any information collection requirements
that require the approval of the Office of Management and Budget under
the Paperwork Reduction Act (44 U.S.C. chapter 35).
List of Subjects in 48 CFR Parts 232 and 252
Government procurement.
Jennifer D. Johnson,
Editor/Publisher, Defense Acquisition Regulations System.
Therefore, 48 CFR parts 232 and 252 are amended as follows:
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1. The authority citation for 48 CFR parts 232 and 252 continues to
read as follows:
Authority: 41 U.S.C. 1303 and 48 CFR chapter 1.
PART 232--CONTRACT FINANCING
Subpart 232.72 [Removed and Reserved]
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2. Subpart 232.72, consisting of sections 232.7200, 232.7201, and
232.7202, is removed and reserved.
PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
252.232-7014 [Removed and Reserved]
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3. Section 252.232-7014 is removed and reserved.
[FR Doc. 2022-08816 Filed 4-27-22; 8:45 am]
BILLING CODE 5001-06-P
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</html>Indexed from Federal Register on April 28, 2022.
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