Defense Federal Acquisition Regulation Supplement; Limitations on Procurements With Non-Defense Agencies (DFARS Case 2009-D027), 32639-32640 [2010-13525]
Download as PDF
Federal Register / Vol. 75, No. 109 / Tuesday, June 8, 2010 / Rules and Regulations
List of Subjects in 48 CFR Parts 217 and
234
Government procurement.
Ynette R. Shelkin,
Editor, Defense Acquisition Regulations
System.
(B) $20 million.
(2) A contract line item or contract
option may not be exercised under this
authority after September 30, 2014.
[FR Doc. 2010–13524 Filed 6–7–10; 8:45 am]
BILLING CODE 5001–08–P
Therefore, 48 CFR parts 217 and 234
are amended as follows:
■ 1. The authority citation for 48 CFR
parts 217 and 234 continues to read as
follows:
■
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations
System
Authority: 41 U.S.C. 421 and 48 CFR
chapter 1.
48 CFR Part 217
PART 217—SPECIAL CONTRACTING
METHODS
RIN 0750–AG67
2. Section 217.202 is revised as
follows:
■
217.202
Use of options.
(1) See PGI 217.202 for guidance on
the use of options.
(2) See 234.005–1 for limitations on
the use of contract options for the
provision of advanced component
development or prototype of technology
developed under the contract or the
delivery of initial or additional
prototype items.
PART 234—MAJOR SYSTEM
ACQUISITION
3. Section 234.005–1 is added to read
as follows:
■
emcdonald on DSK2BSOYB1PROD with RULES2
234.005–1
Competition.
(1) A contract that is initially awarded
from the competitive selection of a
proposal resulting from a general
solicitation may contain a contract line
item or contract option for the provision
of advanced component development or
prototype of technology developed
under the contract or the delivery of
initial or additional prototype items if
the item or a prototype thereof is created
as the result of work performed under
the contract only when it adheres to the
following limitations:
(i) The contract line item or contract
option shall be limited to the minimal
amount of initial or additional prototype
items that will allow for timely
competitive solicitation and award of a
follow-on development or production
contract for those items.
(ii) The term of the contract line item
or contract option shall be for not more
than 12 months.
(iii) The dollar value of the work to
be performed pursuant to the contract
line item or contract option shall not
exceed the lesser of—
(A) The amount that is three times the
dollar value of the work previously
performed under the contract; or
VerDate Mar<15>2010
17:31 Jun 07, 2010
Jkt 220001
Defense Federal Acquisition
Regulation Supplement; Limitations on
Procurements With Non-Defense
Agencies (DFARS Case 2009–D027)
AGENCY: Defense Acquisition
Regulations System, Department of
Defense (DoD).
ACTION: Interim rule with request for
comments.
SUMMARY: DoD is issuing an interim rule
to implement section 806 of the
National Defense Authorization Act for
Fiscal Year 2010 authorizing the placing
of contracts for property and services in
excess of the simplified acquisition
threshold by certain non-DoD agencies
for the performance of a joint program
conducted to meet the needs of DoD and
the non-DoD agency.
DATES: Effective Date: June 8, 2010.
Comment Date: Comments on the
interim rule should be submitted in
writing to the address shown below on
or before August 9, 2010, to be
considered in the formation of the final
rule.
ADDRESSES: Submit comments
identified by DFARS Case 2009–D027,
using any of the following methods:
Æ Federal eRulemaking Portal: https://
www.regulations.gov. Follow the
instructions for submitting comments.
Æ E-mail: dfars@osd.mil. Include
DFARS Case 2009–D027 in the subject
line of the message.
Æ Fax: (703) 602–0350.
Æ Mail: Defense Acquisition
Regulations System, Attn: Meredith
Murphy, OUSD(AT&L)DPAP(DARS),
3060 Defense Pentagon, Room 3B855,
Washington, DC 20301–3060.
Comments received generally will be
posted without change to https://
www.regulations.gov, including any
personal information provided.
FOR FURTHER INFORMATION CONTACT: Ms.
Meredith Murphy, Telephone 703–602–
1302.
SUPPLEMENTARY INFORMATION:
PO 00000
Frm 00003
Fmt 4701
Sfmt 4700
32639
A. Background
Section 854 of the National Defense
Authorization Act for Fiscal Year 2005
(Pub. L. 108–375) prescribed policy for
the acquisition of supplies and services
through the use of contracts or orders
issued by non-DoD agencies. Section
801(b) of the National Defense
Authorization Act for Fiscal Year 2008
(Pub. L. 110–181) authorized a DoD
acquisition official to procure property
and services in excess of the simplified
acquisition threshold through a nonDoD agency only if: (1) The non-DoD
agency agreed to adhere to defense
procurement requirements; or (2) the
Under Secretary of Defense (AT&L)
certified that the procurement is in the
best interest of DoD.
Section 806 of the National Defense
Authorization Act for Fiscal Year 2010
(Pub. L. 111–84) amended the
limitations placed on procurements by
non-DoD agencies by exempting such
procurements that are (a) entered into
by a non-DoD agency that is an element
of the intelligence community and (b)
when the procurement is for the
performance of a joint program
conducted to meet the needs of DoD and
the non-DoD agency. Section 806
referred to section 3(4) of the National
Security Act of 1947 (50 U.S.C. 401a(4))
to identify non-DoD agencies that are an
element of the intelligence community.
B. Discussion
The National Security Act of 1947
defines the term ‘‘intelligence
community’’ to include a number of
defense and non-defense agencies and
portions of such agencies. The
definition of ‘‘non-DoD agency that is an
element of the intelligence community’’
replicates the statutory list, absent the
DoD agencies.
DFARS subpart 217.78 is amended by
adding the definition at 217.7801 and
excluding such agencies from the
requirements of 217.7802(a) when the
procurement is for performance of a
joint program conducted to meet the
needs of DoD and the non-DoD agency.
This is not a significant regulatory
action, and, therefore, was not subject to
review under section 6(b) of Executive
Order 12866, Regulatory Planning and
Review, dated September 30, 1993. This
rule is not a major rule under 5 U.S.C.
604.
C. Regulatory Flexibility Act
DoD does not expect this interim rule
to have a significant economic impact
on a substantial number of small entities
within the meaning of the Regulatory
Flexibility Act, 5 U.S.C. 601, et seq.,
because section 806 affects only internal
E:\FR\FM\08JNR2.SGM
08JNR2
32640
Federal Register / Vol. 75, No. 109 / Tuesday, June 8, 2010 / Rules and Regulations
government operations and procedures.
The interim rule does not impose any
additional requirements on small
businesses. Therefore, an Initial
Regulatory Flexibility Analysis has not
been performed. DoD invites comments
from small business concerns and other
interested parties on the expected
impact of this rule on small entities.
DoD will also consider comments
from small entities concerning the
existing regulations in subparts affected
by this rule in accordance with 5 U.S.C.
610. Interested parties must submit such
comments separately and should cite 5
U.S.C. 610 (DFARS Case 2009–D027) in
correspondence.
D. Paperwork Reduction Act
The Paperwork Reduction Act does
not apply because the changes to the
DFARS do not impose information
collection requirements that require the
approval of the Office of Management
and Budget under 44 U.S.C. 3501, et
seq.
E. Determination To Issue an Interim
Rule
A determination has been made under
the authority of the Secretary of Defense
that urgent and compelling reasons exist
to promulgate this interim rule without
prior opportunity for public comment.
This action is necessary because the
statute became effective upon
enactment, and it is imperative that DoD
contracting officers be aware of the
limitations on interagency procurements
and the circumstances under which
certain programs need not be delayed by
such limitations. However, pursuant to
41 U.S.C. 418b and FAR 1.501–3, DoD
will consider public comments received
in response to this interim rule in the
formation of the final rule.
List of Subjects in 48 CFR Part 217
Government procurement.
Fiscal Year 2005 (Pub. L. 108–375),
section 801 of the National Defense
Authorization Act for Fiscal Year 2008
(Pub. L. 110–181), and section 806 of
the National Defense Authorization Act
for Fiscal Year 2010 (Pub. L. 111–84);
and
*
*
*
*
*
■ 3. Section 217.7801 is amended by
adding the following definition in
appropriate alphabetical order:
(DFARS) to reflect a determination of
the Secretary of Defense that it is
inconsistent with the public interest to
apply the restrictions of the Buy
American Act to the acquisition of
articles, materials, and supplies
produced or manufactured in Finland.
DATES: Effective Date: June 8, 2010.
FOR FURTHER INFORMATION CONTACT: Ms.
Amy Williams, 703–602–0328.
SUPPLEMENTARY INFORMATION:
217.7801
A. Background
Definitions.
*
*
*
*
*
Non-DoD agency that is an element of
the intelligence community means the
Office of the Director of National
Intelligence; the Central Intelligence
Agency; the intelligence elements of the
Federal Bureau of Investigation; the
intelligence elements of the Department
of Energy; the Bureau of Intelligence
and Research of the Department of State;
the Office of Intelligence and Analysis
of the Department of the Treasury; and
the elements of the Department of
Homeland Security concerned with the
analysis of intelligence information,
including the Office of Intelligence of
the Coast Guard.
■ 4. Section 217.7802 is amended by
adding paragraph (a)(3) to read as
follows:
217.7802
Policy.
(a) * * *
(3) The limitation in paragraph (a) of
this section does not apply to contracts
entered into by a non-DoD agency that
is an element of the intelligence
community for the performance of a
joint program conducted to meet the
needs of DoD and the non-DoD agency.
*
*
*
*
*
[FR Doc. 2010–13525 filed 6–7–10; 8:45 am]
BILLING CODE 5001–08–P
DEPARTMENT OF DEFENSE
Ynette R. Shelkin,
Editor, Defense Acquisition Regulations
System.
Defense Acquisition Regulations
System
Therefore, 48 CFR part 217 is
amended as follows:
48 CFR Part 225
■
PART 217—SPECIAL CONTRACTING
METHODS
1. The authority citation for 48 CFR
part 217 continues to read as follows:
emcdonald on DSK2BSOYB1PROD with RULES2
■
Authority: 41 U.S.C. 421 and 48 CFR
chapter 1.
2. Section 217.7800 is amended by
revising paragraph (a) to read as follows:
■
217.7800
Scope of subpart.
*
*
*
*
*
(a) Implements section 854 of the
National Defense Authorization Act for
VerDate Mar<15>2010
17:31 Jun 07, 2010
Jkt 220001
[DFARS Case 2009–D022]
Defense Federal Acquisition
Regulation Supplement; Finland—
Public Interest Exception to the Buy
American Act
AGENCY: Defense Acquisition
Regulations System; Department of
Defense (DoD).
ACTION: Final rule.
SUMMARY: DoD is issuing this final rule
amending the Defense Federal
Acquisition Regulation Supplement
PO 00000
Frm 00004
Fmt 4701
Sfmt 4700
A reciprocal defense procurement
memorandum of understanding (RDP
MOU) between the government of
Finland and the Government of the
United States has been in effect since
1991. The governments have negotiated
and concluded a new RDP MOU to
provide an updated basis for continued
cooperation in defense procurement.
The RDP MOU provides that, in relation
to defense procurement, each country
will accord to the industries of the other
country treatment no less favorable than
that accorded to its own industries, to
the extent consistent with its laws,
regulations, and international
obligations.
The reciprocal opportunities that the
RDP MOU affords to the governments
and their defense industries enhances
mutual military readiness and promotes
standardization and interoperability of
equipment between the armed forces of
the two countries. Therefore, DoD has
made a blanket determination that it is
inconsistent with the public interest to
apply the restrictions of the Buy
American Act to the acquisition of
articles, materials, and supplies
produced or manufactured in Finland.
DoD is issuing this rule as a final rule
because this rule does not have a
significant effect beyond the internal
operating procedures of DoD and does
not have a significant cost or
administrative impact on contractors or
offerors. Therefore, public comment is
not required in accordance with 41
U.S.C. 418b(a).
‘‘Qualifying country’’ is defined at
225.003(10). The status as a qualifying
country entitles these countries to
various benefits, both as a matter of DoD
policy and as legislated by Congress.
The evaluation procedures at DFARS
subpart 225.5 treat all qualifying
country end products equally. Finland
is a qualifying country, as listed at
225.003(10), entitled to all these
benefits. However, at DFARS 225.872–1,
the qualifying countries are divided into
two lists. Most are listed in paragraph
(a), but a few are listed in paragraph (b).
For the countries in paragraph (a), DoD
has already made a blanket
E:\FR\FM\08JNR2.SGM
08JNR2
Agencies
[Federal Register Volume 75, Number 109 (Tuesday, June 8, 2010)]
[Rules and Regulations]
[Pages 32639-32640]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-13525]
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System
48 CFR Part 217
RIN 0750-AG67
Defense Federal Acquisition Regulation Supplement; Limitations on
Procurements With Non-Defense Agencies (DFARS Case 2009-D027)
AGENCY: Defense Acquisition Regulations System, Department of Defense
(DoD).
ACTION: Interim rule with request for comments.
-----------------------------------------------------------------------
SUMMARY: DoD is issuing an interim rule to implement section 806 of the
National Defense Authorization Act for Fiscal Year 2010 authorizing the
placing of contracts for property and services in excess of the
simplified acquisition threshold by certain non-DoD agencies for the
performance of a joint program conducted to meet the needs of DoD and
the non-DoD agency.
DATES: Effective Date: June 8, 2010.
Comment Date: Comments on the interim rule should be submitted in
writing to the address shown below on or before August 9, 2010, to be
considered in the formation of the final rule.
ADDRESSES: Submit comments identified by DFARS Case 2009-D027, using
any of the following methods:
[cir] Federal eRulemaking Portal: https://www.regulations.gov.
Follow the instructions for submitting comments.
[cir] E-mail: dfars@osd.mil. Include DFARS Case 2009-D027 in the
subject line of the message.
[cir] Fax: (703) 602-0350.
[cir] Mail: Defense Acquisition Regulations System, Attn: Meredith
Murphy, OUSD(AT&L)DPAP(DARS), 3060 Defense Pentagon, Room 3B855,
Washington, DC 20301-3060.
Comments received generally will be posted without change to https://www.regulations.gov, including any personal information provided.
FOR FURTHER INFORMATION CONTACT: Ms. Meredith Murphy, Telephone 703-
602-1302.
SUPPLEMENTARY INFORMATION:
A. Background
Section 854 of the National Defense Authorization Act for Fiscal
Year 2005 (Pub. L. 108-375) prescribed policy for the acquisition of
supplies and services through the use of contracts or orders issued by
non-DoD agencies. Section 801(b) of the National Defense Authorization
Act for Fiscal Year 2008 (Pub. L. 110-181) authorized a DoD acquisition
official to procure property and services in excess of the simplified
acquisition threshold through a non-DoD agency only if: (1) The non-DoD
agency agreed to adhere to defense procurement requirements; or (2) the
Under Secretary of Defense (AT&L) certified that the procurement is in
the best interest of DoD.
Section 806 of the National Defense Authorization Act for Fiscal
Year 2010 (Pub. L. 111-84) amended the limitations placed on
procurements by non-DoD agencies by exempting such procurements that
are (a) entered into by a non-DoD agency that is an element of the
intelligence community and (b) when the procurement is for the
performance of a joint program conducted to meet the needs of DoD and
the non-DoD agency. Section 806 referred to section 3(4) of the
National Security Act of 1947 (50 U.S.C. 401a(4)) to identify non-DoD
agencies that are an element of the intelligence community.
B. Discussion
The National Security Act of 1947 defines the term ``intelligence
community'' to include a number of defense and non-defense agencies and
portions of such agencies. The definition of ``non-DoD agency that is
an element of the intelligence community'' replicates the statutory
list, absent the DoD agencies.
DFARS subpart 217.78 is amended by adding the definition at
217.7801 and excluding such agencies from the requirements of
217.7802(a) when the procurement is for performance of a joint program
conducted to meet the needs of DoD and the non-DoD agency.
This is not a significant regulatory action, and, therefore, was
not subject to review under section 6(b) of Executive Order 12866,
Regulatory Planning and Review, dated September 30, 1993. This rule is
not a major rule under 5 U.S.C. 604.
C. Regulatory Flexibility Act
DoD does not expect this interim rule to have a significant
economic impact on a substantial number of small entities within the
meaning of the Regulatory Flexibility Act, 5 U.S.C. 601, et seq.,
because section 806 affects only internal
[[Page 32640]]
government operations and procedures. The interim rule does not impose
any additional requirements on small businesses. Therefore, an Initial
Regulatory Flexibility Analysis has not been performed. DoD invites
comments from small business concerns and other interested parties on
the expected impact of this rule on small entities.
DoD will also consider comments from small entities concerning the
existing regulations in subparts affected by this rule in accordance
with 5 U.S.C. 610. Interested parties must submit such comments
separately and should cite 5 U.S.C. 610 (DFARS Case 2009-D027) in
correspondence.
D. Paperwork Reduction Act
The Paperwork Reduction Act does not apply because the changes to
the DFARS do not impose information collection requirements that
require the approval of the Office of Management and Budget under 44
U.S.C. 3501, et seq.
E. Determination To Issue an Interim Rule
A determination has been made under the authority of the Secretary
of Defense that urgent and compelling reasons exist to promulgate this
interim rule without prior opportunity for public comment. This action
is necessary because the statute became effective upon enactment, and
it is imperative that DoD contracting officers be aware of the
limitations on interagency procurements and the circumstances under
which certain programs need not be delayed by such limitations.
However, pursuant to 41 U.S.C. 418b and FAR 1.501-3, DoD will consider
public comments received in response to this interim rule in the
formation of the final rule.
List of Subjects in 48 CFR Part 217
Government procurement.
Ynette R. Shelkin,
Editor, Defense Acquisition Regulations System.
0
Therefore, 48 CFR part 217 is amended as follows:
PART 217--SPECIAL CONTRACTING METHODS
0
1. The authority citation for 48 CFR part 217 continues to read as
follows:
Authority: 41 U.S.C. 421 and 48 CFR chapter 1.
0
2. Section 217.7800 is amended by revising paragraph (a) to read as
follows:
217.7800 Scope of subpart.
* * * * *
(a) Implements section 854 of the National Defense Authorization
Act for Fiscal Year 2005 (Pub. L. 108-375), section 801 of the National
Defense Authorization Act for Fiscal Year 2008 (Pub. L. 110-181), and
section 806 of the National Defense Authorization Act for Fiscal Year
2010 (Pub. L. 111-84); and
* * * * *
0
3. Section 217.7801 is amended by adding the following definition in
appropriate alphabetical order:
217.7801 Definitions.
* * * * *
Non-DoD agency that is an element of the intelligence community means
the Office of the Director of National Intelligence; the Central
Intelligence Agency; the intelligence elements of the Federal Bureau of
Investigation; the intelligence elements of the Department of Energy;
the Bureau of Intelligence and Research of the Department of State; the
Office of Intelligence and Analysis of the Department of the Treasury;
and the elements of the Department of Homeland Security concerned with
the analysis of intelligence information, including the Office of
Intelligence of the Coast Guard.
0
4. Section 217.7802 is amended by adding paragraph (a)(3) to read as
follows:
217.7802 Policy.
(a) * * *
(3) The limitation in paragraph (a) of this section does not apply
to contracts entered into by a non-DoD agency that is an element of the
intelligence community for the performance of a joint program conducted
to meet the needs of DoD and the non-DoD agency.
* * * * *
[FR Doc. 2010-13525 filed 6-7-10; 8:45 am]
BILLING CODE 5001-08-P