FR 2021-01197

The document, issued by the Defense Acquisition Regulations System of the Department of Defense (DoD), is a notice regarding the planned revision and extension of a rule under the Defense Federal Acquisition Regulation Supplement (DFARS). This rule relates to the acquisition of commercial satellite services from certain foreign entities. The regulation requires businesses that deal with commercial satellite services to provide specific information to ensure they are compliant with the rules prohibiting the acquisition of such services from certain foreign entities. Public comments are invited until February 18, 2021, to provide input on this information collection process.

The notice outlines that the regulation in question involves a paperwork requirement that businesses must fulfill to continue benefiting from related contracts. This affects approximately 235 respondents annually, with an estimated total burden time of 58 hours per year. This means on average, each business will spend about 15 minutes preparing their response.

Significant Issues and Concerns

One of the main issues with the document is the lack of clarity regarding which foreign entities are prohibited from offering commercial satellite services. Without specifying the entities or the criteria used to determine which ones are banned, stakeholders may be uncertain about compliance requirements. This absence of detailed guidance might lead to confusion and increased administrative workload as businesses try to ascertain their compatibility with the rule.

Additionally, the submission process for public comments is somewhat convoluted. The document provides multiple methods and points of contact for submitting comments, such as email and the Federal eRulemaking Portal. While offering multiple channels can be beneficial, it also risks complicating the process and might discourage participation if not clearly explained.

Another point of concern is the lack of explanation for the predicted number of respondents. With only 235 respondents identified, the approach to estimating this number is not clear from the document. This raises questions about the comprehensiveness and accuracy of the data collection effort, potentially omitting significant numbers of stakeholders affected by the regulation.

Impact on the Public and Specific Stakeholders

Broadly, the document impacts all businesses that offer, or plan to offer, commercial satellite services potentially conflicting with the specified prohibitions. Ensuring compliance might necessitate additional administrative work for these companies, potentially diverting resources from other business activities.

For specific stakeholders, such as satellite service providers, the regulation can have mixed impacts. Positively, it might provide a level playing field by preventing entities from banned jurisdictions from participating in the market, thus fostering fair competition. On the negative side, the ambiguity and potentially heavier administrative burden could challenge smaller businesses that might lack the resources to ensure full compliance efficiently.

Overall, while the revision and extension of this rule aim to mitigate security risks associated with foreign satellite services, they also highlight the need for clear, accessible guidelines and an efficient feedback process. Ensuring stakeholders fully understand the requirements and can easily engage with the regulatory process would likely enhance compliance and the efficacy of this regulatory effort.