Adjustments to Prices Under Shipbuilding Contracts

DEPARTMENT OF DEFENSE

Department of the Navy

48 CFR Parts 5243 and 5252

RIN 0703-AA34

Adjustments to Prices Under Shipbuilding Contracts

AGENCY: Department of the Navy, DOD.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: The Department of the Navy (DON) is removing certain

regulations for adjustments to prices under shipbuilding contracts

contained in the Navy Acquisition Procedures Supplement (48 CFR part

5243, Secs. 5252.243-9000 and 5252.243-9001). The National Defense

Authorization Act of Fiscal Year 1998 eliminated the statutory

authority for these rules. Such rules are now unnecessary and are

removed immediately. Providing for a comment period before final action

in this case would be unnecessary, impracticable, and contrary to

public interest. However, DON will accept and consider comments from

interested persons in evaluating the effect of this action.

DATES: Effective Date of Removal: May 1, 1998.

Comment Date: Comments on this removal action should be submitted

in writing to the address shown below on or before June 30, 1998.

ADDRESSES: Interested parties should submit written comments to

Department of the Navy, Office of the Assistant Secretary of the Navy

(Research, Development and Acquisition) Acquisition and Business

Management, 2211 South Clark Place, Arlington, Virginia, 22244-5104.

FOR FURTHER INFORMATION CONTACT: Mr. Michael G. Shaffer, (703)602-1263.

SUPPLEMENTARY INFORMATION:

A. Background

The Department of Defense Authorization Act, 1985 (Pub. L. 98-525

Sec. 1234(a), 98 Stat. 2604, Oct. 19, 1984) established certain

limitations on price adjustments made to shipbuilding contracts, which

were codified at 10 U.S.C. 2405. The DON published proposed rules to

implement the requirements of 10 U.S.C. 2405 in the Federal Register on

Nov. 16, 1989 (54 FR 47689). A correction and extension of the public

comment period was published in the Federal Register on Feb. 2, 1990

(55 FR 3603). Revised proposed rules and notice of additional public

comment period and public hearing were published in the Federal

Register on Jun. 29, 1990 (55 FR 26708). Extension of the public

comment period and rescheduling of the public hearing were published in

the Federal Register on Aug. 16 and Oct. 26, 1990 (55 FR 33541 and

43150). An interim rule and request for comments was published in the

Federal Register on Dec. 5, 1991 (56 FR 63664). This interim rule added

to title 48 of the Code of Federal Regulations a new Part 5243, as well

as new Secs. 5252.243-9000 and 5252.243-9001, and was made effective on

Dec. 5, 1991. No final rule was published.

Section 810 of the National Defense Authorization Act for Fiscal

Year 1998 (Pub. L. 105-85, 111 Stat. 1839, Nov. 18, 1997) repealed 10

U.S.C. 2405, making the Navy's implementing regulations contained in 48

CFR parts 5243 and 5252 unnecessary. For this reason, the Navy is now

removing and reserving 48 CFR part 5243 in its entirety, as well as

Secs. 5252.243-9000 and 5252.243-9001.

While the Navy is removing part 5243 in its entirety from the Code

of Federal Regulations, information and policy statements regarding

contract modifications remain in part 5243 of the Navy Acquisition

Procedures Supplement (``NAPS''), which may be accessed at

www.abm.rda.hq.navy.mil/naps, or by contacting the office listed in the

ADDRESSES block.

B. Determination To Remove Without Prior Public Comment

This removal action is being issued as a final rule without a

public comment period as an exception to the DON's standard practice of

soliciting comments during the rulemaking process. Providing a period

for public comment in this case would be unnecessary, impracticable,

and contrary to the public interest. This determination is based on two

factors. First, removal of these rules is entirely administrative and

corrective in nature, not requiring the exercise of agency discretion.

Second, to allow these rules to remain in the Code of Federal

Regulations any longer may mislead and confuse the public regarding

statutory requirements relating to adjustments of any price under a

shipbuilding contract for the amount set forth in a claim, request for

equitable adjustment, or demand for payment.

C. Matters of Regulatory Procedure

Executive Order 12866, Regulatory Planning and Review

Removal of these rules does not meet the definition of

``significant regulatory action'' for purposes of E.O. 12866.

[[Page 24130]]

Regulatory Flexibility Act

Removal of these rules will not have a significant economic impact

on a substantial number of small entities for purposes of the

Regulatory Flexibility Act (5 U.S.C. chapter 6).

Paperwork Reduction Act

Removal of these rules will not impose collection of information

requirements for purposes of the Paperwork Reduction Act (44 U.S.C.

chapter 35, 5 CFR Part 1320).

List of Subjects in 48 CFR Parts 5243 and 5252

Government procurement.

Dated: April 22, 1998.

Michael I. Quinn,

Commander, Judge Advocate General's Corps, U.S. Navy, Federal Register

Liaison Officer.

Under the authority of Sec. 810 of Pub. L. 105-85, and for the

reasons set forth in the preamble, remove and reserve part 5243 and

Sections 5252.243-9000 and 5252.243-9001 of title 48 of the Code of

Federal Regulations.

[FR Doc. 98-11592 Filed 4-30-98; 8:45 am]

BILLING CODE 3810-FF-P