Defense Federal Acquisition Regulation Supplement: Multiyear Contracts-Statutory References and Cancellation Ceiling Threshold (DFARS Case 2014-D019), 56331-56333 [2014-22368]
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Federal Register / Vol. 79, No. 182 / Friday, September 19, 2014 / Proposed Rules
[EPA–HQ–OAR–2014–0198; FRL–9916–91–
OAR]
charged for copying. The EPA has
established the official public docket
No. EPA–HQ–OAR–2014–0198.
Worldwide Web. The EPA Web site
containing information for this
rulemaking is: https://www.epa.gov/
ozone/snap/regulations.html.
FOR FURTHER INFORMATION CONTACT:
Rebecca von dem Hagen, Stratospheric
Protection Division, Office of
Atmospheric Programs, Mail Code
6205T, Environmental Protection
Agency, 1200 Pennsylvania Ave. NW.,
Washington, DC 20460; telephone
number (202) 343–9445; fax number
(202) 343–2338, email address:
vondemhagen.rebecca@epa.gov. Notices
and rulemakings under EPA’s SNAP
program are available on EPA’s
Stratospheric Ozone Web site at https://
www.epa.gov/ozone/snap/
regulations.html.
RIN 2060–AS18
SUPPLEMENTARY INFORMATION:
List of Subjects in 40 CFR Part 52
Environmental protection, Air
pollution control, Incorporation by
reference, Intergovernmental relations,
Nitrogen dioxide, Particulate matter,
Reporting and recordkeeping
requirements, Sulfur dioxide, Visibility.
Authority: 42 U.S.C. 7401 et seq.
Dated: September 5, 2014.
Jared Blumenfeld,
Regional Administrator, EPA Region IX.
[FR Doc. 2014–22403 Filed 9–18–14; 8:45 am]
BILLING CODE 6560–50–P
ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Part 82
Protection of Stratospheric Ozone:
Change of Listing Status for Certain
Substitutes Under the Significant New
Alternatives Policy Program
Environmental Protection
Agency (EPA).
ACTION: Notice of proposed rulemaking;
extension of public comment period.
AGENCY:
The Environmental Protection
Agency (EPA) is announcing that the
period for providing public comments
on the August 6, 2014, proposed
‘‘Protection of Stratospheric Ozone:
Change of Listing Status for Certain
Substitutes Under the Significant New
Alternatives Policy Program’’ is being
extended by 14 days.
DATES: Comments. The public comment
period for the proposed rule published
August 6, 2014, (79 FR 46126) is being
extended by 14 days to October 20,
2014, in order to provide the public
additional time to submit comments and
supporting information.
ADDRESSES: Comments. Written
comments on the proposed rule may be
submitted to the EPA electronically, by
mail, by facsimile or through hand
delivery/courier. Please refer to the
proposal (79 FR 46126) for the addresses
and detailed instructions.
Docket. Publicly available documents
relevant to this action are available for
public inspection either electronically at
https://www.regulations.gov or in hard
copy at the EPA Docket Center, (EPA/
DC) EPA West, Room 3334, 1301
Constitution Ave. NW., Washington,
DC. The Public Reading Room is open
from 8:30 a.m. to 4:30 p.m., Monday
through Friday, excluding legal
holidays. A reasonable fee may be
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SUMMARY:
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ACTION:
56331
Proposed rule.
DoD is proposing to amend
the Defense Federal Acquisition
Regulation Supplement to update the
cancellation ceiling threshold for
multiyear contracts and to correct
statutory references.
DATES: Comment date: Comments on the
proposed rule should be submitted in
writing to the address shown below on
or before November 18, 2014, to be
considered in the formation of a final
rule.
SUMMARY:
48 CFR Part 217
Submit comments
identified by DFARS Case 2014–D019,
using any of the following methods:
Æ Regulations.gov: https://
www.regulations.gov. Submit comments
via the Federal eRulemaking portal by
entering ‘‘DFARS Case 2014–D019’’
under the heading ‘‘Enter keyword or
ID’’ and selecting ‘‘Search.’’ Select the
link ‘‘Submit a Comment’’ that
corresponds with ‘‘DFARS Case 2014–
D019.’’ Follow the instructions provided
at the ‘‘Submit a Comment’’ screen.
Please include your name, company
name (if any), and ‘‘DFARS Case 2014–
D019’’ on your attached document.
Æ Email: osd.dfars@mail.mil. Include
DFARS Case 2014–D019 in the subject
line of the message.
Æ Fax: 571–372–6094.
Æ Mail: Defense Acquisition
Regulations System, Attn: Ms. Jennifer
Hawes, OUSD(AT&L)DPAP/DARS,
Room 3B941, 3060 Defense Pentagon,
Washington, DC 20301–3060.
Comments received generally will be
posted without change to https://
www.regulations.gov, including any
personal information provided. To
confirm receipt of your comment(s),
please check www.regulations.gov,
approximately two to three days after
submission to verify posting (except
allow 30 days for posting of comments
submitted by mail).
FOR FURTHER INFORMATION CONTACT:
Jennifer Hawes, Defense Acquisition
Regulations System,
OUSD(AT&L)DPAP/DARS, Room
3B941, 3060 Defense Pentagon,
Washington, DC 20301–3060.
Telephone 571–372–6115.
SUPPLEMENTARY INFORMATION:
RIN 0750–AI37
I. Background
Defense Federal Acquisition
Regulation Supplement: Multiyear
Contracts—Statutory References and
Cancellation Ceiling Threshold
(DFARS Case 2014–D019)
DoD is proposing to revise the DFARS
regarding multiyear contracts to correct
statutory references and to update the
cancellation ceiling threshold at DFARS
217.170(e)(1)(iv) and (e)(5) for
consistency with the Federal
Acquisition Regulation (FAR).
Currently, DFARS 217.170(e)(1)(iv)
requires DoD to provide notification to
Comment Period
The EPA is extending the public
comment period for an additional 14
days. The public comment period will
end on October 20, 2014, rather than
October 6, 2014. This will provide the
public additional time to review and
comment on all of the information
available, including the proposed rule
and other materials in the docket.
List of Subjects in 40 CFR Part 82
Environmental protection,
Administrative practice and procedure,
Air pollution control, Incorporation by
reference, Recycling, Reporting and
recordkeeping requirements,
Stratospheric ozone layer.
Dated: September 12, 2014.
Janet G. McCabe,
Assistant Administrator, Office of Air and
Radiation.
[FR Doc. 2014–22382 Filed 9–18–14; 8:45 am]
BILLING CODE 6560–50–P
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations
System
Defense Acquisition
Regulations System, Department of
Defense (DoD).
AGENCY:
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ADDRESSES:
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Federal Register / Vol. 79, No. 182 / Friday, September 19, 2014 / Proposed Rules
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the congressional defense committees at
least 30 days before entering into a
multiyear contract that includes a
cancellation ceiling in excess of $100
million. DoD issued a final rule (75 FR
45072), effective October 1, 2010, to
implement the requirements of section
807 of the National Defense
Authorization Act for Fiscal Year 2005
(Pub. L. 108–375) by escalating
acquisition-related thresholds
throughout the DFARS; however, the
increase to the cancellation ceiling
threshold at DFARS 217.170(e)(1)(iv)
and (e)(5) was not included in the rule,
resulting in a conflict with the
cancellation ceiling threshold of $125
million identified at FAR 17.108(b).
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.
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 2014–D019), in
correspondence.
II. Discussion and Analysis
The rule proposes to amend DFARS
217.170(e)(1)(iv) and (e)(5),
redesignating paragraph (e) as paragraph
(d), and to increase the cancellation
ceiling threshold from $100 million to
$125 million to ensure consistency with
the FAR. This 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 and makes the following
corrections regarding multiyear
contracts for supplies:
• The language at DFARS 217.170(b),
under the ‘‘General’’ section, applies
only to the acquisition of property in
accordance with 10 U.S.C. 2306b. This
language is moved to a new paragraph
(j) under DFARS 217.172, Multiyear
contracts for supplies.
• The current language at 217.172(c)
states that multiyear contracts in
amounts exceeding $500 million must
be specifically authorized by law and
that a multiyear supply contract may be
authorized by an appropriations act or
a law other than an appropriations act.
However, the language at 10 U.S.C.
2306b(i)(3), which addresses the
acquisition of property, states that a
multiyear contract in excess of $500
million must be specifically authorized
by law in an act other than an
appropriations act. In addition, 10
U.S.C. 2306b(l)(3) states that the head of
the agency may not initiate a multiyear
procurement contract for any system (or
component thereof) if the value of the
multiyear contract would exceed $500
million unless authority for the contract
is specifically provided in an
appropriations act. The language at
217.172(c) is corrected and a new
paragraph regarding multiyear
procurement contracts is added.
IV. Regulatory Flexibility Act
List of Subjects in 48 CFR Part 217
Government procurement.
III. Executive Orders 12866 and 13563
Executive Orders (E.O.s) 12866 and
13563 direct agencies to assess all costs
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DoD does not expect this proposed
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. However, an initial regulatory
flexibility analysis has been performed
and is summarized as follows:
This rule proposes to amend the
DFARS regarding multiyear contracts to
ensure consistency with the 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
will correct references to 10 U.S.C.
2306b, 10 U.S.C. 2306c, and section
8008(a) of Public Law 105–56
throughout DFARS subpart 217.1 and
make the following clarifications: (1) 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); and, (2) 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 10 U.S.C. 2306b(i)(3).
Small businesses will not be affected
by this rule. This rule will impact
procedures and authorities internal to
the Government for multiyear contracts
that require a cancellation ceiling up to
$125 million or are valued in excess of
$500 million and are for supplies.
This rule does not add any new
information collection requirements.
The rule does not duplicate, overlap, or
conflict with any other Federal rules. No
alternatives were identified that will
accomplish the objectives of the rule.
DoD invites comments from small
business concerns and other interested
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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).
Manuel Quinones,
Editor, Defense Acquisition Regulations
System.
Therefore, 48 CFR part 217 is
proposed to be amended as follows:
PART 217—SPECIAL CONTACTING
METHODS
1. The authority citation for 48 CFR
part 217 continues to read as follows:
■
Authority: 41 U.S.C. 1303 and 48 CFR
chapter 1.
217.103
[Amended]
2. Amend section 217.103, in the
definition for ‘‘Military installation,’’ by
removing ‘‘(10 U.S.C. 2801(c)(2))’’ and
adding ‘‘(10 U.S.C. 2801(c)(4))’’ in its
place.
■ 3. Amend section 217.170 by—
■ a. Removing paragraph (b);
■ b. Redesignating paragraphs (c),(d),
and (e) as paragraphs (b) (c), and (d),
respectively;
■ c. Revising newly redesignated
paragraphs (d)(1)(ii), (iii), and (iv); and
■ d. In newly redesignated paragraph
(d)(5), removing ‘‘$100 million’’ and
adding ‘‘$125 million’’ in its place.
The revisions read as follows:
■
217.170
General.
*
*
*
*
*
(d)(1) * * *
(ii) Employ economic order quantity
procurement in excess of $20 million in
any one year of the contract (see 10
U.S.C. 2306b(l)(1)(B)(i)(I) and section
8008(a) of Pub. L. 105–56 and similar
sections in subsequent DoD
appropriations acts);
(iii) Involve a contract for advance
procurement leading to a multiyear
contract that employs economic order
quantity procurement in excess of $20
million in any one year (see 10 U.S.C.
2306b(l)(1)(B)(ii) and section 8008(a) of
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Federal Register / Vol. 79, No. 182 / Friday, September 19, 2014 / Proposed Rules
Pub. L. 105–56 and similar sections in
subsequent DoD appropriations acts); or
(iv) Include a cancellation ceiling in
excess of $125 million (see 10 U.S.C.
2306c(d)(4) and 10 U.S.C. 2306b(g)(1)).
*
*
*
*
*
217.171
[Amended]
4. Amend section 217.171 by—
a. In the introductory text of
paragraph (a), removing ‘‘(10 U.S.C.
2306c)’’ and adding ‘‘(10 U.S.C.
2306c(a))’’ in its place;
■ b. In paragraph (a)(5)(iii), adding ‘‘(10
U.S.C. 2306c(b))’’ at the end of the
sentence, before the period;
■ c. In paragraph (b)(3), adding ‘‘(10
U.S.C. 2306c(c))’’ at the end of the
sentence, before the period;
■ d. In paragraph (c)(3), adding ‘‘(10
U.S.C. 2306c(a))’’ at the end of the
sentence, before the period; and
■ e. In paragraph (d), removing ‘‘(10
U.S.C. 2306(c))’’ and adding ‘‘(10 U.S.C.
2306c(d)(2))’’ in its place.
■ 5. Amend section 217.172 by—
■ a. Revising paragraph (c);
■ b. Redesignating paragraphs (d)
through (h) as paragraphs (e) through (i),
respectively;
■ c. Adding a new paragraph (d);
■ d. In newly redesignated paragraph
(f)(1), adding a parenthesis to close the
parenthetical phrase ‘‘(when entered
into or extended)’’ and removing ‘‘(10
U.S.C. 2306b(1)(5))’’ and adding ‘‘(10
U.S.C. 2306b(l)(5))’’ in its place.
■ e. In newly redesignated paragraph
(f)(2), removing the parenthetical
reference ‘‘(10 U.S.C. 2306b(a)(l)(7))’’;
■ f. In newly redesignated paragraph
(g)(1), adding the parenthetical reference
‘‘(10 U.S.C. 2306b(h)(1))’’ before the
semicolon;
■ g. In newly redesignated paragraph
(g)(2), adding the parenthetical reference
‘‘(10 U.S.C. 2306b(h)(2))’’ at the end of
the first sentence, before the period;
■ h. In newly redesignated paragraph
(h)(2)(vii)—
■ i. Adding the parenthetical reference
‘‘(10 U.S.C. 2306b(i)(1)(G))’’ at the end
of the first sentence before the period,
and removing it from the end of the
second sentence; and
■ ii. Removing ‘‘USD(C)(P/B)’’ and
adding ‘‘OUSD(C)(P/B)’’ in its place.
■ i. In newly redesignated paragraph
(h)(2)(viii) introductory text, removing
‘‘USD(C)(P/B)’’ and adding
‘‘OUSD(C)(P/B)’’ in its place.
■ j. In newly redesignated paragraph
(h)(8) introductory text, removing the
parenthetical reference ‘‘(10 U.S.C.
2306b(i)(2))’’; and
■ k. Adding a new paragraph (j).
The revisions and additions read as
follows:
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■
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217.172
Multiyear contracts for supplies.
56333
48 CFR Part 225
ID’’ and selecting ‘‘Search.’’ Select the
link ‘‘Submit a Comment’’ that
corresponds with ‘‘DFARS Case 2014–
D022.’’ Follow the instructions provided
at the ‘‘Submit a Comment’’ screen.
Please include your name, company
name (if any), and ‘‘DFARS Case 2014–
D022’’ on your attached document.
• Email: osd.dfars@mail.mil. Include
DFARS Case 2014–D022 in the subject
line of the message.
• Fax: 571–372–6094.
• Mail: Defense Acquisition
Regulations System, Attn: Amy G.
Williams, OUSD(AT&L)DPAP/DARS,
Room 3B941, 3060 Defense Pentagon,
Washington, DC 20301–3060.
Comments received generally will be
posted without change to https://
www.regulations.gov, including any
personal information provided. To
confirm receipt of your comment(s),
please check www.regulations.gov,
approximately two to three days after
submission to verify posting (except
allow 30 days for posting of comments
submitted by mail).
FOR FURTHER INFORMATION CONTACT: Ms.
Amy G. Williams, Defense Acquisition
Regulations System,
OUSD(AT&L)DPAP/DARS, Room
3B941, 3060 Defense Pentagon,
Washington, DC 20301–3060.
Telephone 571–372–6106.
SUPPLEMENTARY INFORMATION:
RIN 0750–AI36
I. Background
Defense Federal Acquisition
Regulation Supplement: Domestic
Source Restrictions on Certain Naval
Vessel Components (DFARS Case
2014–D022)
DoD is proposing to revise DFARS
225.7010 to implement the domestic
source restrictions in 10 U.S.C. 2534 on
gyrocompasses, electronic navigation
chart systems, steering controls, pumps,
propulsion and machinery control
systems, and totally enclosed lifeboats,
to the extent they are unique to marine
applications.
These restrictions are currently
implemented in the acquisition
regulations of the Defense Logistics
Agency and the Department of the Navy,
the two DoD components that acquire
such naval vessel components. The
restrictions are now being incorporated
into the DFARS because they impact
more than one DoD component.
10 U.S.C. 2534 prohibits acquisition
of these naval vessel components,
unless they are manufactured in the
United States or Canada, except for
acquisitions that do not exceed the
simplified acquisition threshold or
acquisitions of spare or repair parts
needed to support components for naval
vessels manufactured outside the
United States.
The waiver criteria at DFARS
225.7008(a) apply to this restriction.
The Under Secretary of Defense
*
*
*
*
*
(c) Multiyear contracts in amounts
exceeding $500 million must be
specifically authorized by law in an act
other than an appropriations act (10
U.S.C. 2306b(i)(3)).
(d) The head of an agency may not
initiate a multiyear procurement
contract for any system (or component
thereof) if the value of the multiyear
contract would exceed $500 million
unless authority for the contract is
specifically provided in an
appropriations act (10 U.S.C.
2306b(l)(3)).
*
*
*
*
*
(j) Any requests for increased funding
or reprogramming for procurement of a
major system under a multiyear contract
shall be accompanied by an explanation
of how the request for increased funding
affects the determinations made by the
Secretary of Defense under 217.172(g)(2)
(10 U.S.C. 2306b(m)).
[FR Doc. 2014–22368 Filed 9–18–14; 8:45 am]
BILLING CODE 5001–06–P
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations
System
Defense Acquisition
Regulations System, Department of
Defense (DoD).
ACTION: Proposed rule.
AGENCY:
DoD is proposing to amend
the Defense Federal Acquisition
Regulation Supplement (DFARS) to
implement the statutory domestic
source restrictions on acquisition of
certain naval vessel components.
DATES: Comment date: Comments on the
proposed rule should be submitted in
writing to the address shown below on
or before November 18, 2014, to be
considered in the formation of a final
rule.
SUMMARY:
Submit comments
identified by DFARS Case 2014–D022,
using any of the following methods:
• Regulations.gov: https://
www.regulations.gov. Submit comments
via the Federal eRulemaking portal by
entering ‘‘DFARS Case 2014–D022’’
under the heading ‘‘Enter keyword or
ADDRESSES:
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]]>Agencies
[Federal Register Volume 79, Number 182 (Friday, September 19, 2014)]
[Proposed Rules]
[Pages 56331-56333]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-22368]
=======================================================================
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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)
AGENCY: Defense Acquisition Regulations System, Department of Defense
(DoD).
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: DoD is proposing to amend the Defense Federal Acquisition
Regulation Supplement to update the cancellation ceiling threshold for
multiyear contracts and to correct statutory references.
DATES: Comment date: Comments on the proposed rule should be submitted
in writing to the address shown below on or before November 18, 2014,
to be considered in the formation of a final rule.
ADDRESSES: Submit comments identified by DFARS Case 2014-D019, using
any of the following methods:
[cir] Regulations.gov: https://www.regulations.gov. Submit comments
via the Federal eRulemaking portal by entering ``DFARS Case 2014-D019''
under the heading ``Enter keyword or ID'' and selecting ``Search.''
Select the link ``Submit a Comment'' that corresponds with ``DFARS Case
2014-D019.'' Follow the instructions provided at the ``Submit a
Comment'' screen. Please include your name, company name (if any), and
``DFARS Case 2014-D019'' on your attached document.
[cir] Email: osd.dfars@mail.mil. Include DFARS Case 2014-D019 in
the subject line of the message.
[cir] Fax: 571-372-6094.
[cir] Mail: Defense Acquisition Regulations System, Attn: Ms.
Jennifer Hawes, OUSD(AT&L)DPAP/DARS, Room 3B941, 3060 Defense Pentagon,
Washington, DC 20301-3060.
Comments received generally will be posted without change to https://www.regulations.gov, including any personal information provided. To
confirm receipt of your comment(s), please check www.regulations.gov,
approximately two to three days after submission to verify posting
(except allow 30 days for posting of comments submitted by mail).
FOR FURTHER INFORMATION CONTACT: Jennifer Hawes, Defense Acquisition
Regulations System, OUSD(AT&L)DPAP/DARS, Room 3B941, 3060 Defense
Pentagon, Washington, DC 20301-3060. Telephone 571-372-6115.
SUPPLEMENTARY INFORMATION:
I. Background
DoD is proposing to revise the DFARS regarding multiyear contracts
to correct statutory references and to update the cancellation ceiling
threshold at DFARS 217.170(e)(1)(iv) and (e)(5) for consistency with
the Federal Acquisition Regulation (FAR). Currently, DFARS
217.170(e)(1)(iv) requires DoD to provide notification to
[[Page 56332]]
the congressional defense committees at least 30 days before entering
into a multiyear contract that includes a cancellation ceiling in
excess of $100 million. DoD issued a final rule (75 FR 45072),
effective October 1, 2010, to implement the requirements of section 807
of the National Defense Authorization Act for Fiscal Year 2005 (Pub. L.
108-375) by escalating acquisition-related thresholds throughout the
DFARS; however, the increase to the cancellation ceiling threshold at
DFARS 217.170(e)(1)(iv) and (e)(5) was not included in the rule,
resulting in a conflict with the cancellation ceiling threshold of $125
million identified at FAR 17.108(b).
II. Discussion and Analysis
The rule proposes to amend DFARS 217.170(e)(1)(iv) and (e)(5),
redesignating paragraph (e) as paragraph (d), and to increase the
cancellation ceiling threshold from $100 million to $125 million to
ensure consistency with the FAR. This 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 and makes the following corrections
regarding multiyear contracts for supplies:
The language at DFARS 217.170(b), under the ``General''
section, applies only to the acquisition of property in accordance with
10 U.S.C. 2306b. This language is moved to a new paragraph (j) under
DFARS 217.172, Multiyear contracts for supplies.
The current language at 217.172(c) states that multiyear
contracts in amounts exceeding $500 million must be specifically
authorized by law and that a multiyear supply contract may be
authorized by an appropriations act or a law other than an
appropriations act. However, the language at 10 U.S.C. 2306b(i)(3),
which addresses the acquisition of property, states that a multiyear
contract in excess of $500 million must be specifically authorized by
law in an act other than an appropriations act. In addition, 10 U.S.C.
2306b(l)(3) states that the head of the agency may not initiate a
multiyear procurement contract for any system (or component thereof) if
the value of the multiyear contract would exceed $500 million unless
authority for the contract is specifically provided in an
appropriations act. The language at 217.172(c) is corrected and a new
paragraph regarding multiyear procurement contracts is added.
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
DoD does not expect this proposed 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.
However, an initial regulatory flexibility analysis has been performed
and is summarized as follows:
This rule proposes to amend the DFARS regarding multiyear contracts
to ensure consistency with the 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 will correct references to 10 U.S.C. 2306b, 10 U.S.C. 2306c,
and section 8008(a) of Public Law 105-56 throughout DFARS subpart 217.1
and make the following clarifications: (1) 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); and, (2) 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 10 U.S.C.
2306b(i)(3).
Small businesses will not be affected by this rule. This rule will
impact procedures and authorities internal to the Government for
multiyear contracts that require a cancellation ceiling up to $125
million or are valued in excess of $500 million and are for supplies.
This rule does not add any new information collection requirements.
The rule does not duplicate, overlap, or conflict with any other
Federal rules. No alternatives were identified that will accomplish the
objectives of the rule.
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 2014-D019), in
correspondence.
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 217
Government procurement.
Manuel Quinones,
Editor, Defense Acquisition Regulations System.
Therefore, 48 CFR part 217 is proposed to be amended as follows:
PART 217--SPECIAL CONTACTING METHODS
0
1. The authority citation for 48 CFR part 217 continues to read as
follows:
Authority: 41 U.S.C. 1303 and 48 CFR chapter 1.
217.103 [Amended]
0
2. Amend section 217.103, in the definition for ``Military
installation,'' by removing ``(10 U.S.C. 2801(c)(2))'' and adding ``(10
U.S.C. 2801(c)(4))'' in its place.
0
3. Amend section 217.170 by--
0
a. Removing paragraph (b);
0
b. Redesignating paragraphs (c),(d), and (e) as paragraphs (b) (c), and
(d), respectively;
0
c. Revising newly redesignated paragraphs (d)(1)(ii), (iii), and (iv);
and
0
d. In newly redesignated paragraph (d)(5), removing ``$100 million''
and adding ``$125 million'' in its place.
The revisions read as follows:
217.170 General.
* * * * *
(d)(1) * * *
(ii) Employ economic order quantity procurement in excess of $20
million in any one year of the contract (see 10 U.S.C.
2306b(l)(1)(B)(i)(I) and section 8008(a) of Pub. L. 105-56 and similar
sections in subsequent DoD appropriations acts);
(iii) Involve a contract for advance procurement leading to a
multiyear contract that employs economic order quantity procurement in
excess of $20 million in any one year (see 10 U.S.C. 2306b(l)(1)(B)(ii)
and section 8008(a) of
[[Page 56333]]
Pub. L. 105-56 and similar sections in subsequent DoD appropriations
acts); or
(iv) Include a cancellation ceiling in excess of $125 million (see
10 U.S.C. 2306c(d)(4) and 10 U.S.C. 2306b(g)(1)).
* * * * *
217.171 [Amended]
0
4. Amend section 217.171 by--
0
a. In the introductory text of paragraph (a), removing ``(10 U.S.C.
2306c)'' and adding ``(10 U.S.C. 2306c(a))'' in its place;
0
b. In paragraph (a)(5)(iii), adding ``(10 U.S.C. 2306c(b))'' at the end
of the sentence, before the period;
0
c. In paragraph (b)(3), adding ``(10 U.S.C. 2306c(c))'' at the end of
the sentence, before the period;
0
d. In paragraph (c)(3), adding ``(10 U.S.C. 2306c(a))'' at the end of
the sentence, before the period; and
0
e. In paragraph (d), removing ``(10 U.S.C. 2306(c))'' and adding ``(10
U.S.C. 2306c(d)(2))'' in its place.
0
5. Amend section 217.172 by--
0
a. Revising paragraph (c);
0
b. Redesignating paragraphs (d) through (h) as paragraphs (e) through
(i), respectively;
0
c. Adding a new paragraph (d);
0
d. In newly redesignated paragraph (f)(1), adding a parenthesis to
close the parenthetical phrase ``(when entered into or extended)'' and
removing ``(10 U.S.C. 2306b(1)(5))'' and adding ``(10 U.S.C.
2306b(l)(5))'' in its place.
0
e. In newly redesignated paragraph (f)(2), removing the parenthetical
reference ``(10 U.S.C. 2306b(a)(l)(7))'';
0
f. In newly redesignated paragraph (g)(1), adding the parenthetical
reference ``(10 U.S.C. 2306b(h)(1))'' before the semicolon;
0
g. In newly redesignated paragraph (g)(2), adding the parenthetical
reference ``(10 U.S.C. 2306b(h)(2))'' at the end of the first sentence,
before the period;
0
h. In newly redesignated paragraph (h)(2)(vii)--
0
i. Adding the parenthetical reference ``(10 U.S.C. 2306b(i)(1)(G))'' at
the end of the first sentence before the period, and removing it from
the end of the second sentence; and
0
ii. Removing ``USD(C)(P/B)'' and adding ``OUSD(C)(P/B)'' in its place.
0
i. In newly redesignated paragraph (h)(2)(viii) introductory text,
removing ``USD(C)(P/B)'' and adding ``OUSD(C)(P/B)'' in its place.
0
j. In newly redesignated paragraph (h)(8) introductory text, removing
the parenthetical reference ``(10 U.S.C. 2306b(i)(2))''; and
0
k. Adding a new paragraph (j).
The revisions and additions read as follows:
217.172 Multiyear contracts for supplies.
* * * * *
(c) Multiyear contracts in amounts exceeding $500 million must be
specifically authorized by law in an act other than an appropriations
act (10 U.S.C. 2306b(i)(3)).
(d) The head of an agency may not initiate a multiyear procurement
contract for any system (or component thereof) if the value of the
multiyear contract would exceed $500 million unless authority for the
contract is specifically provided in an appropriations act (10 U.S.C.
2306b(l)(3)).
* * * * *
(j) Any requests for increased funding or reprogramming for
procurement of a major system under a multiyear contract shall be
accompanied by an explanation of how the request for increased funding
affects the determinations made by the Secretary of Defense under
217.172(g)(2) (10 U.S.C. 2306b(m)).
[FR Doc. 2014-22368 Filed 9-18-14; 8:45 am]
BILLING CODE 5001-06-P
