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This rule amends 32 CFR part 552 by removing section 552.16 from the Code of Federal Regulations. The section is being removed because it is obsolete and no longer governs policies and procedures for handling real estate claims founded upon contract. Due to changes in Department of Defense (DoD) policy and guidance covered in DoD Instruction 1340.21, Procedures for Settling Personnel and General Claims and Processing Advanced Decision Requests” (Available online at http://www.dtic.mil/whs/directives/corres/pdf/134021p.pdf), and Department of Defense Directive 1340.20 Settling Personnel and General Claims and Processing Advance Decision Requests” (Available online at http://www.dtic.mil/whs/directives/corres/pdf/134020p.pdf), section 552.16 of 32 CFR part 552 is obsolete and should be removed. The responsibility for the settlement of claims under contract cognizable under 31 U.S.C. 3702 has been delegated to Department of the Army Judge Advocate General (JAG) and Chief Counsel, Army Corps of Engineers by Secretary of Defense. 32 CFR 552.16 and its related internal Army regulation are deemed obsolete. No cost savings have been identified.