Notice & Comment

DoD Seeks Comment on Procedures for Afghanistan Contract Payments, by Shannon Allen

The Department of Defense (“DoD”) seeks public comment on a proposal to amend the Defense Federal Acquisition Regulation Supplement (“DFARS”). This proposed rule aims to include policies and procedures regarding payment for contracts for performance in Afghanistan into the DFARS. The DoD intends to promulgate policy and procedures on the use of a new solicitation provision that provides notice that the “payment currency” used for “contracts for performance in Afghanistan” will be “dependent on the nationality of the vendor.” This rule applies the procedures concerning payment currency contained in the U.S. Central Command’s Fragmentary Order (“FRAGO”) 09-1567 and FRAGO 10-143.

Specifically, the “solicitation provision” states that if the contract is awarded to a “host nation vendor (Afghan),” then the contractor will “receive payment in Afghani (local currency)” through an “electronic funds transfer to a local (Afghan) banking institution.” The DoD’s proposal further provides that contracts will not be awarded to “host nation vendors (Afghans)” that are not banking locally. In addition, the proposed amendment states that if awarded to “other than a host nation vendor,” then the contract will be awarded in U.S. currency.

Changes are added to “provide direction” to contracting officers, so they can follow the procedures included in the DFARS Procedures, Guidance, and Information (“PGI”) 225.7703(c), when they issue “solicitations” and “contracts for performance” in “Afghanistan.” The DoD does not anticipate that this proposal will have a “significant economic impact” on a considerable quantity of small entities because this proposed amendment simply provides mandates for payment to host nation vendors for performance in Afghanistan. Finally, the proposed rule does not duplicate, overlap, or conflict with any other Federal rules.

Comments may be about any aspect of this proposal including, but not limited to:

  • the assessment of costs and benefits of available regulatory alternatives;
  • if regulation is necessary;
  • the selected regulatory approach that maximize net benefits
  • the potential economic, environmental, or public health and safety effects; or
  • how this proposal reduces cost, harmonizes rules, or promotes flexibility.

Interested parties are invited to submit comments, identified by DFARS Case 2013-D029, by March 31, 2014, by any of the following methods:

  • Email: Include DFARS Case 2013-D029 in the subject line of the message;
  • Fax: 571-372-6094;
  • Mail: Defense Acquisition Regulations System, Attn: Mr. Mark Gomersall, OUSD(AT&L)DPAP(DARS), Room 3B855, 3060 Defense Pentagon, Washington, DC 20301-3060.

This post was originally published on the legacy ABA Section of Administrative Law and Regulatory Practice Notice and Comment blog, which merged with the Yale Journal on Regulation Notice and Comment blog in 2015.

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