Defense Federal Acquisition Regulation Supplement: Approval Threshold for Time-and-Materials and Labor-Hour Contracts (DFARS Case 2014-D020), 29980-29981 [2015-12341]
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Federal Register / Vol. 80, No. 100 / Tuesday, May 26, 2015 / Rules and Regulations
V. Ordering Clauses
ACTION:
16. Accordingly, it is ordered that,
pursuant to sections 1, 4(i)–4(j), 5, 251,
and 303(r) of the Communications Act
of 1934, as amended, 47 U.S.C. 151,
154(i)–(j), 155, 251, 303(r), this Order
approving the North American
Numbering Council’s recommendation
to revise the ‘‘Cancel Flows’’ in the
Local Number Portability Provisioning
Flows, WC Docket No. 07–244, CC
Docket Nos. 95–116 and 99–200, is
adopted.
17. It is further ordered that, pursuant
to sections 1, 4(i)–4(j), 5, 251, and 303(r)
of the Communications Act of 1934, as
amended, 47 U.S.C. 151, 154(i)–(j), 155,
251, 303(r), this Order approving the
North American Numbering Council’s
recommendation to revise the
‘‘Disconnect Process for Ported
Telephone Numbers’’ in the Local
Number Portability Provisioning Flows,
WC Docket No. 07–244, CC Docket Nos.
95–116 and 99–200, is adopted.
18. It is further ordered that, pursuant
to sections 1, 4(i)–4(j), 5, 251, and 303(r)
of the Communications Act of 1934, as
amended, 47 U.S.C. 151, 154(i)–(j), 155,
251, 303(r), this Order approving the
North American Numbering Council’s
recommendation to accept Best Practice
65 and the corresponding revisions to
the Local Number Portability
Provisioning flows, and denying the
North American Numbering Council’s
recommendation to accept Best Practice
30, WC Docket No. 07–244, CC Docket
Nos. 95–116 and 99–200, is adopted.
19. It is further ordered that this Order
shall become effective 30 days after
publication in the Federal Register.
Federal Communications Commission.
Sanford S. Williams,
Assistant Chief, Competition Policy Division,
Wireline Competition Bureau.
[FR Doc. 2015–12633 Filed 5–22–15; 8:45 am]
BILLING CODE 6712–01–P
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations
System
48 CFR Part 216
wreier-aviles on DSK5TPTVN1PROD with RULES
RIN 0750–AI56
Defense Federal Acquisition
Regulation Supplement: Approval
Threshold for Time-and-Materials and
Labor-Hour Contracts (DFARS Case
2014–D020)
Defense Acquisition
Regulations System, Department of
Defense (DoD).
AGENCY:
VerDate Sep<11>2014
14:03 May 22, 2015
Jkt 235001
Final rule.
DoD is issuing a final rule
amending the Defense Federal
Acquisition Regulation Supplement
(DFARS) to establish the level of
approval required for a determination
and findings for time-and-materials and
labor-hour contracts, or portions of
contracts, exceeding $1 million.
SUMMARY:
DATES:
Effective May 26, 2015.
Ms.
Jennifer Johnson, telephone 571–372–
6176.
FOR FURTHER INFORMATION CONTACT:
SUPPLEMENTARY INFORMATION:
I. Background
DoD is issuing a final rule amending
the DFARS to establish the level of
approval required for a determination
and findings (D&F) for time-andmaterials and labor-hour contracts, or
portions of contracts, exceeding $1
million. The D&F must address why
cost-plus-fixed-fee and other contract
types are not appropriate. The approval
requirements in this rule do not apply
to contracts that support contingency or
peacekeeping operations, or that
provide humanitarian assistance,
disaster relief, or recovery from
conventional, nuclear, biological,
chemical, or radiological attack.
II. Publication of This Final Rule for
Public Comment Is Not Required by
Statute
‘‘Publication of proposed
regulations’’, 41 U.S.C. 1707, is the
statute which applies to the publication
of the Federal Acquisition Regulation.
Paragraph (a)(1) of the statute requires
that a procurement policy, regulation,
procedure or form (including an
amendment or modification thereof)
must be published for public comment
if it relates to the expenditure of
appropriated funds, and has either a
significant effect beyond the internal
operating procedures of the agency
issuing the policy, regulation, procedure
or form, or has a significant cost or
administrative impact on contractors or
offerors. This final rule is not required
to be published for public comment
because it pertains to requirements for
internal documentation within DoD,
specifically, determination and findings
for use of the time-and-materials and
labor-hour contract types. These
requirements affect only the internal
operating procedures of the
Government. This final rule is not
required to be published for public
comment, because it has no effect
beyond the internal operating
procedures of DoD, and has no cost or
PO 00000
Frm 00044
Fmt 4700
Sfmt 4700
administrative impact on contractors or
offerors.
III. Executive Orders 12866 and 13563
Executive Orders (E.O.s) 12866 and
13563 direct agencies to assess all costs
and benefits of available regulatory
alternatives and, if regulation is
necessary, to select regulatory
approaches that maximize net benefits
(including potential economic,
environmental, public health and safety
effects, distributive impacts, and
equity). E.O. 13563 emphasizes the
importance of quantifying both costs
and benefits, of reducing costs, of
harmonizing rules, and of promoting
flexibility. This is not a significant
regulatory action and, therefore, was not
subject to review under section 6(b) of
E.O. 12866, Regulatory Planning and
Review, dated September 30, 1993. This
rule is not a major rule under 5 U.S.C.
804.
IV. Regulatory Flexibility Act
The Regulatory Flexibility Act does
not apply to this rule because this final
rule does not constitute a significant
DFARS revision within the meaning of
FAR 1.501–1, and 41 U.S.C. 1707 does
not require publication for public
comment.
V. Paperwork Reduction Act
The rule does not contain any
information collection requirements that
require the approval of the Office of
Management and Budget under the
Paperwork Reduction Act (44 U.S.C.
chapter 35).
List of Subjects in 48 CFR Part 216
Government procurement.
Amy G. Williams,
Editor, Defense Acquisition Regulations
System.
Therefore, 48 CFR part 216 is
amended as follows:
PART 216—TYPES OF CONTRACTS
1. The authority citation for 48 CFR
part 216 continues to read as follows:
■
Authority: 41 U.S.C. 1303 and 48 CFR
chapter 1.
2. Section 216.601 is amended by
revising paragraph (d) to read as
follows:
■
216.601
Time-and-materials contracts.
(d) Limitations.
(i)(A) Approval of determination and
findings for time-and-materials or laborhour contracts.
(1) Base period plus any option
periods is three years or less.
(i) For contracts (including indefinitedelivery contracts) and orders in which
E:\FR\FM\26MYR1.SGM
26MYR1
wreier-aviles on DSK5TPTVN1PROD with RULES
Federal Register / Vol. 80, No. 100 / Tuesday, May 26, 2015 / Rules and Regulations
the portion of the requirement
performed on a time-and-materials or
labor-hour basis exceeds $1 million, the
approval authority for the determination
and findings shall be the senior
contracting official within the
contracting activity. This authority may
not be delegated.
(ii) For contracts (including
indefinite-delivery contracts) and orders
in which the portion of the requirement
performed on a time-and-materials or
labor-hour basis is less than or equal to
$1 million, the determination and
findings shall be approved one level
above the contracting officer.
(2) Base period plus any option
periods exceeds three years. The
authority of the head of the contracting
activity to approve the determination
and findings may not be delegated.
(3) Exception. The approval
requirements in paragraphs (d)(i)(A)(1)
and (2) of this section do not apply to
contracts that—
(i) Support contingency or
peacekeeping operations; or
(ii) Provide humanitarian assistance,
disaster relief, or recovery from
conventional, nuclear, biological,
chemical, or radiological attack.
(B) Content of determination and
findings. The determination and
findings shall contain sufficient facts
and rationale to justify that no other
contract type is suitable. At a minimum,
the determination and findings shall—
(1) Include a description of the market
research conducted;
(2) Establish that it is not possible at
the time of placing the contract or order
to accurately estimate the extent or
duration of the work or to anticipate
costs with any reasonable degree of
certainty;
(3) Address why a cost-plus-fixed-fee
term or other cost-reimbursement,
incentive, or fixed-price contract or
order is not appropriate; for contracts
(including indefinite-delivery contracts)
and orders for noncommercial items
awarded to contractors with adequate
accounting systems, a cost-plus-fixedfee term contract type shall be preferred
over a time-and-materials or labor-hour
contract type;
(4) Establish that the requirement has
been structured to minimize the use of
time-and-materials and labor-hour
requirements (e.g., limiting the value or
length of the time-and-materials or
labor-hour portion of the contract or
order; establishing fixed prices for
portions of the requirement); and
(5) Describe the actions planned to
minimize the use of time-and-materials
and labor-hour contracts on future
acquisitions for the same requirements.
VerDate Sep<11>2014
14:03 May 22, 2015
Jkt 235001
(C) Indefinite-delivery contracts. For
indefinite-delivery contracts, the
contracting officer shall structure
contracts that authorize time-andmaterials orders or labor-hour orders to
also authorize orders on a costreimbursement, incentive, or fixed-price
basis, to the maximum extent
practicable.
*
*
*
*
*
[FR Doc. 2015–12341 Filed 5–22–15; 8:45 am]
BILLING CODE 5001–06–P
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations
System
48 CFR Part 217
RIN 0750–AI37
Defense Federal Acquisition
Regulation Supplement: Multiyear
Contracts—Statutory References and
Cancellation Ceiling Threshold
(DFARS Case 2014–D019)
Defense Acquisition
Regulations System, Department of
Defense (DoD).
ACTION: Final rule.
AGENCY:
DoD is issuing a final rule
amending the Defense Federal
Acquisition Regulation Supplement
(DFARS) to update the cancellation
ceiling threshold for multiyear contracts
and to correct statutory references.
DATES: Effective May 26, 2015.
FOR FURTHER INFORMATION CONTACT:
Jennifer Hawes, telephone 571–372–
6115.
SUMMARY:
SUPPLEMENTARY INFORMATION:
I. Background
DoD published a proposed rule in the
Federal Register at 79 FR 65331 on
September 19, 2014, to amend the
DFARS regarding multiyear contracts to
update the cancellation ceiling
threshold at DFARS 217.170(e)(1)(iv) for
consistency with the Federal
Acquisition Regulation and correct
statutory references. The rule also
corrects references to 10 U.S.C. 2306b,
10 U.S.C. 2306c, and section 8008a of
Public Law 105–56 throughout DFARS
subpart 217.1.
No public comments were submitted
in response to the proposed rule.
II. Discussion
There are only minor editorial
changes in the final rule from the
proposed rule. Cross references
contained within some paragraphs
required revision since several
PO 00000
Frm 00045
Fmt 4700
Sfmt 4700
29981
paragraphs were redesignated and
renumbered due to relocation of text or
the addition of new text.
III. Executive Orders 12866 and 13563
Executive Orders (E.O.s) 12866 and
13563 direct agencies to assess all costs
and benefits of available regulatory
alternatives and, if regulation is
necessary, to select regulatory
approaches that maximize net benefits
(including potential economic,
environmental, public health and safety
effects, distributive impacts, and
equity). E.O. 13563 emphasizes the
importance of quantifying both costs
and benefits, of reducing costs, of
harmonizing rules, and of promoting
flexibility. This is not a significant
regulatory action and, therefore, was not
subject to review under section 6(b) of
E.O. 12866, Regulatory Planning and
Review, dated September 30, 1993. This
rule is not a major rule under 5 U.S.C.
804.
IV. Regulatory Flexibility Act
A final regulatory flexibility analysis
has been prepared consistent with the
Regulatory Flexibility Act, 5 U.S.C. 601,
et seq., and is summarized as follows:
This rule amends the Defense Federal
Acquisition Regulation Supplement
(DFARS) regarding multiyear contracts
to ensure consistency with the Federal
Acquisition Regulation (FAR) and the
underlying statutes. The objective of
this rule is to increase the cancellation
ceiling threshold at DFARS
217.170(e)(1)(iv) from $100 million to
$125 million to ensure consistency with
the threshold at FAR 17.108(b).
In addition, this rule corrects
references to 10 U.S.C. 2306b, 10 U.S.C.
2306c, and section 8008a of Pub. L.
105–56 throughout DFARS subpart
217.1 and makes the following
clarifications:
• Requests for increased funding or
reprogramming for procurement of a
major system is relocated under DFARS
217.172(j) since it is in reference to a
type of multiyear supply contract.
• A multiyear contract for supplies in
excess of $500 million must be
specifically authorized by law in an Act
other than an appropriations Act in
accordance with 10 U.S.C. 2306b(i)(3).
• A multiyear procurement contract
for any system (or component thereof)
with a value greater than $500 million
must be specifically authorized in an
appropriations act in accordance with
10 U.S.C. 2306b(l)(3).
No comments were received from the
public in response to initial regulatory
flexibility analysis published in the
proposed rule.
E:\FR\FM\26MYR1.SGM
26MYR1
]]>Agencies
[Federal Register Volume 80, Number 100 (Tuesday, May 26, 2015)]
[Rules and Regulations]
[Pages 29980-29981]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-12341]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System
48 CFR Part 216
RIN 0750-AI56
Defense Federal Acquisition Regulation Supplement: Approval
Threshold for Time-and-Materials and Labor-Hour Contracts (DFARS Case
2014-D020)
AGENCY: Defense Acquisition Regulations System, Department of Defense
(DoD).
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: DoD is issuing a final rule amending the Defense Federal
Acquisition Regulation Supplement (DFARS) to establish the level of
approval required for a determination and findings for time-and-
materials and labor-hour contracts, or portions of contracts, exceeding
$1 million.
DATES: Effective May 26, 2015.
FOR FURTHER INFORMATION CONTACT: Ms. Jennifer Johnson, telephone 571-
372-6176.
SUPPLEMENTARY INFORMATION:
I. Background
DoD is issuing a final rule amending the DFARS to establish the
level of approval required for a determination and findings (D&F) for
time-and-materials and labor-hour contracts, or portions of contracts,
exceeding $1 million. The D&F must address why cost-plus-fixed-fee and
other contract types are not appropriate. The approval requirements in
this rule do not apply to contracts that support contingency or
peacekeeping operations, or that provide humanitarian assistance,
disaster relief, or recovery from conventional, nuclear, biological,
chemical, or radiological attack.
II. Publication of This Final Rule for Public Comment Is Not Required
by Statute
``Publication of proposed regulations'', 41 U.S.C. 1707, is the
statute which applies to the publication of the Federal Acquisition
Regulation. Paragraph (a)(1) of the statute requires that a procurement
policy, regulation, procedure or form (including an amendment or
modification thereof) must be published for public comment if it
relates to the expenditure of appropriated funds, and has either a
significant effect beyond the internal operating procedures of the
agency issuing the policy, regulation, procedure or form, or has a
significant cost or administrative impact on contractors or offerors.
This final rule is not required to be published for public comment
because it pertains to requirements for internal documentation within
DoD, specifically, determination and findings for use of the time-and-
materials and labor-hour contract types. These requirements affect only
the internal operating procedures of the Government. This final rule is
not required to be published for public comment, because it has no
effect beyond the internal operating procedures of DoD, and has no cost
or administrative impact on contractors or offerors.
III. Executive Orders 12866 and 13563
Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess
all costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health and safety effects, distributive impacts, and equity). E.O.
13563 emphasizes the importance of quantifying both costs and benefits,
of reducing costs, of harmonizing rules, and of promoting flexibility.
This is not a significant regulatory action and, therefore, was not
subject to review under section 6(b) of E.O. 12866, Regulatory Planning
and Review, dated September 30, 1993. This rule is not a major rule
under 5 U.S.C. 804.
IV. Regulatory Flexibility Act
The Regulatory Flexibility Act does not apply to this rule because
this final rule does not constitute a significant DFARS revision within
the meaning of FAR 1.501-1, and 41 U.S.C. 1707 does not require
publication for public comment.
V. Paperwork Reduction Act
The rule does not contain any information collection requirements
that require the approval of the Office of Management and Budget under
the Paperwork Reduction Act (44 U.S.C. chapter 35).
List of Subjects in 48 CFR Part 216
Government procurement.
Amy G. Williams,
Editor, Defense Acquisition Regulations System.
Therefore, 48 CFR part 216 is amended as follows:
PART 216--TYPES OF CONTRACTS
0
1. The authority citation for 48 CFR part 216 continues to read as
follows:
Authority: 41 U.S.C. 1303 and 48 CFR chapter 1.
0
2. Section 216.601 is amended by revising paragraph (d) to read as
follows:
216.601 Time-and-materials contracts.
(d) Limitations.
(i)(A) Approval of determination and findings for time-and-
materials or labor-hour contracts.
(1) Base period plus any option periods is three years or less.
(i) For contracts (including indefinite-delivery contracts) and
orders in which
[[Page 29981]]
the portion of the requirement performed on a time-and-materials or
labor-hour basis exceeds $1 million, the approval authority for the
determination and findings shall be the senior contracting official
within the contracting activity. This authority may not be delegated.
(ii) For contracts (including indefinite-delivery contracts) and
orders in which the portion of the requirement performed on a time-and-
materials or labor-hour basis is less than or equal to $1 million, the
determination and findings shall be approved one level above the
contracting officer.
(2) Base period plus any option periods exceeds three years. The
authority of the head of the contracting activity to approve the
determination and findings may not be delegated.
(3) Exception. The approval requirements in paragraphs (d)(i)(A)(1)
and (2) of this section do not apply to contracts that--
(i) Support contingency or peacekeeping operations; or
(ii) Provide humanitarian assistance, disaster relief, or recovery
from conventional, nuclear, biological, chemical, or radiological
attack.
(B) Content of determination and findings. The determination and
findings shall contain sufficient facts and rationale to justify that
no other contract type is suitable. At a minimum, the determination and
findings shall--
(1) Include a description of the market research conducted;
(2) Establish that it is not possible at the time of placing the
contract or order to accurately estimate the extent or duration of the
work or to anticipate costs with any reasonable degree of certainty;
(3) Address why a cost-plus-fixed-fee term or other cost-
reimbursement, incentive, or fixed-price contract or order is not
appropriate; for contracts (including indefinite-delivery contracts)
and orders for noncommercial items awarded to contractors with adequate
accounting systems, a cost-plus-fixed-fee term contract type shall be
preferred over a time-and-materials or labor-hour contract type;
(4) Establish that the requirement has been structured to minimize
the use of time-and-materials and labor-hour requirements (e.g.,
limiting the value or length of the time-and-materials or labor-hour
portion of the contract or order; establishing fixed prices for
portions of the requirement); and
(5) Describe the actions planned to minimize the use of time-and-
materials and labor-hour contracts on future acquisitions for the same
requirements.
(C) Indefinite-delivery contracts. For indefinite-delivery
contracts, the contracting officer shall structure contracts that
authorize time-and-materials orders or labor-hour orders to also
authorize orders on a cost-reimbursement, incentive, or fixed-price
basis, to the maximum extent practicable.
* * * * *
[FR Doc. 2015-12341 Filed 5-22-15; 8:45 am]
BILLING CODE 5001-06-P
