# Adjustments to Prices Under Shipbuilding Contracts > Briefs, arguments, decisions, and more. URL: https://www.frixlaw.com/law-library/documents/fr%3A98-11592 ## Record - **Collection:** Federal Register - **Document type:** Rule - **Published:** May 1, 1998 - **Citation:** 63 FR 24129 ## Text 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 --- Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/fr%3A98-11592. Public record. Not legal advice.