Defense Federal Acquisition Regulation Supplement: Multiyear Contracts-Statutory References and Cancellation Ceiling Threshold (DFARS Case 2014-D019), 29981-29983 [2015-12340]
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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.
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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
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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.
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29982
Federal Register / Vol. 80, No. 100 / Tuesday, May 26, 2015 / Rules and Regulations
Small businesses will not be affected
by this rule. The rule will only impact
procedures and authorities internal to
the Government for multiyear contracts
that require a cancellation ceiling up to
$125 million or multiyear contracts for
supplies with a value in excess of $500
million.
The rule imposes no reporting,
recordkeeping, or other information
collection requirements.
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.
217.171
Therefore, 48 CFR part 217 is
amended as follows:
PART 217—SPECIAL CONTRACTING
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.
[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);
■ d. In newly redesignated paragraph
(d)(2), removing ‘‘(e)(1)(i)’’ and adding
‘‘(d)(1)(i)’’ in its place;
■ e. In newly redesignated paragraph
(d)(3), removing ‘‘(e)(2)’’ and adding
‘‘(d)(2)’’ in its place;
■ f. In newly redesignated paragraph
(d)(4), removing ‘‘(e)(1)’’ and adding
‘‘(d)(1)’’ in its place;
■ g. In newly redesignated paragraph
(d)(5) introductory text, removing ‘‘$100
million’’ and adding ‘‘$125 million’’ in
its place; and
■ h. In newly redesignated paragraph
(d)(5)(i) introductory text, removing
‘‘(e)(1)’’ and adding ‘‘(d)(1)’’ in its place.
The revisions read as follows:
wreier-aviles on DSK5TPTVN1PROD with RULES
■
217.170
*
*
General.
*
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*
*
14:03 May 22, 2015
Jkt 235001
[Amended]
4. Amend section 217.171 by—
a. In paragraph (a) introductory text,
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)—
■ i. Removing ‘‘(g)(2)(i)’’ and adding
‘‘(h)(2)(i)’’ in its place;
■ ii. Removing ‘‘(g)(2)’’ and adding
‘‘(h)(2)’’ in its place; and
■ iii. Removing the parenthetical
reference ‘‘(10 U.S.C. 2306b(a)(1)(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)—
■ i. Removing ‘‘217.172(g)(3) and (4)’’
and adding ‘‘paragraphs (h)(3) and (4) of
this section’’ in its place; and
■
■
Amy G. Williams,
Editor, Defense Acquisition Regulations
System.
217.103
(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
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)).
*
*
*
*
*
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ii. 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) introductory text—
■ i. Removing ‘‘(g)(2)(i)’’ and adding
‘‘(h)(2)(i)’’ in its place; and
■ ii. Removing the word ‘‘are’’;
■ i. In newly redesignated paragraph
(h)(2)(ii), removing ‘‘(g)(2)(i)’’ and
adding ‘‘(h)(2)(i)’’ in its place;
■ j. 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 the parenthetical
reference ‘‘(10 U.S.C. 2306b(i)(1)(G))’’
from the end of the second sentence;
and
■ ii. Removing ‘‘USD(C)(P/B)’’ and
adding ‘‘OUSD(C)(P/B)’’ in its place;
■ k. In newly redesignated paragraph
(h)(2)(viii) introductory text, removing
‘‘USD(C)(P/B)’’ and adding
‘‘OUSD(C)(P/B)’’ in its place;
■ l. In newly redesignated paragraph
(h)(5), removing ‘‘(g)(2)’’ and adding
‘‘(h)(2)’’ in its place;
■ m. In newly redesignated paragraph
(h)(6)—
■ i. Removing ‘‘(g)(2)’’ and adding
‘‘(h)(2)’’ in its place; and
■ ii. Removing ‘‘(g)(5)’’ and adding
‘‘(h)(5)’’ in its place;
■ n. In newly redesignated paragraph
(h)(8) introductory text, removing the
parenthetical reference ‘‘(10 U.S.C.
2306b(i)(2))’’; and
■ o. 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 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 (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
E:\FR\FM\26MYR1.SGM
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Federal Register / Vol. 80, No. 100 / Tuesday, May 26, 2015 / Rules and Regulations
Secretary of Defense under
217.172(h)(2) (10 U.S.C. 2306b(m)).
rule. No changes have been made from
the proposed rule.
[FR Doc. 2015–12340 Filed 5–22–15; 8:45 am]
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.
BILLING CODE 5001–06–P
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations
System
48 CFR Chapter 2
RIN 0750–AI46
Defense Federal Acquisition
Regulation Supplement: Appendix F—
Energy Receiving Reports (DFARS
Case 2014–D024)
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 identify the Wide Area
WorkFlow Energy Receiving Report as
the electronic equivalent of the DD
Form 250, Material Inspection and
Receiving Report, for overland
shipments and the DD Form 250–1,
Tanker/Barge Material Inspection And
Receiving Report, for waterborne
shipments.
SUMMARY:
DATES:
Effective May 26, 2015.
FOR FURTHER INFORMATION CONTACT:
Jennifer Johnson, telephone 571–372–
6176.
SUPPLEMENTARY INFORMATION:
wreier-aviles on DSK5TPTVN1PROD with RULES
I. Background
DoD published a proposed rule in the
Federal Register at 79 FR 73539 on
December 11, 2014, to amend Appendix
F of the DFARS to identify the Wide
Area WorkFlow (WAWF) Energy
Receiving Report as the electronic
equivalent of the paper DD Form 250 for
overland shipments and the DD Form
250–1 for waterborne shipments.
DFARS 232.7002, Policy, requires
contractors to submit payment and
receiving reports in electronic form, and
the accepted electronic form identified
in DFARS 232.7003, Procedures, is
WAWF. In addition, the clause at
DFARS 252.232–7003, Electronic
Submission of Payment Requests and
Receiving Reports, requires payment
requests and receiving reports using
WAWF in nearly all cases.
II. Discussion and Analysis
There were no public comments
submitted in response to the proposed
VerDate Sep<11>2014
14:03 May 22, 2015
Jkt 235001
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) Appendix F to identify the
Wide Area WorkFlow (WAWF) Energy
Receiving Report as the electronic
equivalent of the DD Form 250, Material
Inspection and Receiving Report, for
overland shipments and the DD Form
250–1, Tanker/Barge Material
Inspection and Receiving Report, for
waterborne shipments.
DFARS 232.7002, Policy, requires
contractors to submit payment and
receiving reports in electronic form, and
the accepted electronic form is WAWF.
DFARS 232.7003, Procedures, identifies
WAWF as the accepted electronic form.
In addition, the clause at DFARS
252.232–7003, Electronic Submission of
Payment Requests and Receiving
Reports, requires payment requests and
receiving reports using WAWF in nearly
all cases.
No comments were received from the
public regarding the initial regulatory
flexibility analysis.
DoD does not expect this 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. The
rule affects all DoD contractors who are
not exempt from using WAWF. Exempt
classes of contracts are those that are
listed under the seven categories of
contracts at DFARS 232.7002, Policy.
The projected recordkeeping is
limited to that required to properly
record shipping and receiving
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29983
information under Government
contracts. Preparation of these records
requires clerical and analytical skills to
create the documents and input them
into the electronic WAWF system.
There is no significant economic
impact on small entities.
V. Paperwork Reduction Act
The rule contains 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).
However, these changes to the DFARS
do not impose additional information
collection requirements to the
paperwork burden previously approved
under OMB Control Number 0704–0248,
entitled Material Inspection and
Receiving Report.
List of Subjects in 48 CFR Appendix F
to Chapter 2
Government procurement.
Amy G. Williams,
Editor, Defense Acquisition Regulations
System.
Therefore, 48 CFR chapter 2,
subchapter I, is amended in appendix F
as follows:
CHAPTER 2—DEFENSE ACQUISITION
REGULATIONS SYSTEM, DEPARTMENT OF
DEFENSE
1. The authority citation for appendix
F to chapter 2 continues to read as
follows:
■
Authority: 41 U.S.C. 1303 and 48 CFR
chapter 1.
2. Amend appendix F to chapter 2 by:
a. In section F–101, revising
paragraph (a) and the first sentence of
paragraph (b);
■ b. In section F–103, revising
paragraph (d) introductory text;
■ c. In section F–104, revising
paragraph (b) introductory text;
■ d. Revising the part 3 heading; and
■ e. In section F–301, revising
paragraph (b)(13).
The revisions read as follows:
■
■
Appendix F to Chapter 2—Material
Inspection and Inspection and
Receiving Report
*
*
*
*
*
Part 1—Introduction
F–101 General.
(a) This appendix contains procedures and
instructions for the use, preparation, and
distribution of the Wide Area WorkFlow
(WAWF) Receiving Report, the WAWF
Energy RR, and commercial shipping/
packing lists used to document Government
contract quality assurance. The WAWF RR is
the electronic equivalent of the DD Form 250,
Material Inspection and Receiving Report
E:\FR\FM\26MYR1.SGM
26MYR1
]]>Agencies
[Federal Register Volume 80, Number 100 (Tuesday, May 26, 2015)]
[Rules and Regulations]
[Pages 29981-29983]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-12340]
-----------------------------------------------------------------------
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: Final rule.
-----------------------------------------------------------------------
SUMMARY: 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.
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 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.
[[Page 29982]]
Small businesses will not be affected by this rule. The rule will
only impact procedures and authorities internal to the Government for
multiyear contracts that require a cancellation ceiling up to $125
million or multiyear contracts for supplies with a value in excess of
$500 million.
The rule imposes no reporting, recordkeeping, or other information
collection requirements.
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.
Amy G. Williams,
Editor, Defense Acquisition Regulations System.
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. 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);
0
d. In newly redesignated paragraph (d)(2), removing ``(e)(1)(i)'' and
adding ``(d)(1)(i)'' in its place;
0
e. In newly redesignated paragraph (d)(3), removing ``(e)(2)'' and
adding ``(d)(2)'' in its place;
0
f. In newly redesignated paragraph (d)(4), removing ``(e)(1)'' and
adding ``(d)(1)'' in its place;
0
g. In newly redesignated paragraph (d)(5) introductory text, removing
``$100 million'' and adding ``$125 million'' in its place; and
0
h. In newly redesignated paragraph (d)(5)(i) introductory text,
removing ``(e)(1)'' and adding ``(d)(1)'' 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 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 paragraph (a) introductory text, 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)--
0
i. Removing ``(g)(2)(i)'' and adding ``(h)(2)(i)'' in its place;
0
ii. Removing ``(g)(2)'' and adding ``(h)(2)'' in its place; and
0
iii. Removing the parenthetical reference ``(10 U.S.C.
2306b(a)(1)(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)--
0
i. Removing ``217.172(g)(3) and (4)'' and adding ``paragraphs (h)(3)
and (4) of this section'' in its place; and
0
ii. 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) introductory text--
0
i. Removing ``(g)(2)(i)'' and adding ``(h)(2)(i)'' in its place; and
0
ii. Removing the word ``are'';
0
i. In newly redesignated paragraph (h)(2)(ii), removing ``(g)(2)(i)''
and adding ``(h)(2)(i)'' in its place;
0
j. 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 the
parenthetical reference ``(10 U.S.C. 2306b(i)(1)(G))'' 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
k. In newly redesignated paragraph (h)(2)(viii) introductory text,
removing ``USD(C)(P/B)'' and adding ``OUSD(C)(P/B)'' in its place;
0
l. In newly redesignated paragraph (h)(5), removing ``(g)(2)'' and
adding ``(h)(2)'' in its place;
0
m. In newly redesignated paragraph (h)(6)--
0
i. Removing ``(g)(2)'' and adding ``(h)(2)'' in its place; and
0
ii. Removing ``(g)(5)'' and adding ``(h)(5)'' in its place;
0
n. In newly redesignated paragraph (h)(8) introductory text, removing
the parenthetical reference ``(10 U.S.C. 2306b(i)(2))''; and
0
o. 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 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 (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
[[Page 29983]]
Secretary of Defense under 217.172(h)(2) (10 U.S.C. 2306b(m)).
[FR Doc. 2015-12340 Filed 5-22-15; 8:45 am]
BILLING CODE 5001-06-P
