Defense Federal Acquisition Regulation Supplement: Multiyear Contract Requirements (DFARS Case 2015-D009), 28730-28731 [2016-10823]
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28730
Federal Register / Vol. 81, No. 90 / Tuesday, May 10, 2016 / Rules and Regulations
3B941, 3060 Defense Pentagon,
Washington, DC 20301–3060.
Telephone 571–372–6115; facsimile
571–372–6094.
PART 215—CONTRACTING BY
NEGOTIATION
This final
rule amends the DFARS as follows—
1. Corrects cross references at DFARS
212.301(f)(xvi), Acquisition of
Information Technology, in paragraphs
(A) and (B);
2. Directs contracting officers to
additional DFARS Procedures,
Guidance, and Information (PGI) by
adding a cross reference at DFARS
215.300 and updates the date of the
Director, Defense Procurement and
Acquisition Policy memorandum
entitled ‘‘Department of Defense Source
Selection Procedures’’;
3. Corrects a threshold at DFARS
215.408(3)(ii)(A)(1)(i) to reflect $750,000
in lieu of $700,000 that was
inadvertently omitted in the inflation
adjustment DFARS Case 2014–D025
published in the Federal Register at 80
FR 36903;
4. Adds DFARS section 216.104 to
provide guidance concerning selection
and negotiation of the most appropriate
contract type and also directs
contracting officers to additional PGI
coverage.
5. Redesignates paragraphs within
DFARS 225.7003–2 to add a new
paragraph (b) to provide an internet link
for more information on specialty
metals restrictions and reporting of
noncompliances.
SUPPLEMENTARY INFORMATION:
List of Subjects in 48 CFR 212, 215, 216,
and 225
Jennifer L. Hawes,
Editor, Defense Acquisition Regulations
System.
Therefore, 48 CFR parts 212, 215, 216,
and 225 are amended as follows:
1. The authority citation for 48 CFR
parts 212, 215, 216, and 225 continues
to read as follows:
■
Authority: 41 U.S.C. 1303 and 48 CFR
chapter 1.
ehiers on DSK5VPTVN1PROD with RULES
215.408
[AMENDED]
4. Amend section 215.408, in
paragraph (3)(ii)(A)(1)(i), by removing
‘‘$700,000’’ and adding ‘‘$750,000’’ in
its place.
■
PART 216—TYPES OF CONTRACTS
5. Add section 216.104 to read as
follows:
■
216.104
2. Amend section 212.301, in
paragraphs (f)(xvi)(A) and (B), by
removing ‘‘239.7603(a)’’ and
‘‘239.7603(b)’’ and adding ‘‘239.7604(a)’’
and ‘‘239.7604(b)’’ in each place,
respectively.
■
Factors in selecting contract type.
Contracting officers shall follow the
principles and procedures in Director,
Defense Procurement and Acquisition
Policy memorandum dated April 1,
2016, entitled ‘‘Guidance on Using
Incentive and Other Contract Types,’’
when selecting and negotiating the most
appropriate contract type for a given
procurement. See PGI 216.104.
PART 225—FOREIGN ACQUISITION
6. Amend section 225.7003–2 by—
■ a. Redesignating paragraphs (a) and
(b) as (1) and (2), respectively;
■ b. Designating the introductory text as
paragraph (a);
■ c. In the newly redesignated
paragraph (1), redesignating paragraphs
(1) through (6) as paragraphs (i) through
(vi), respectively; and
■ d. Adding paragraph (b).
The addition reads as follows:
Jkt 238001
Restrictions.
*
*
*
*
(b) For more information on specialty
metals restrictions and reporting of
noncompliances, see https://
www.acq.osd.mil/dpap/cpic/ic/
restrictions_on_specialty_metals_10_
usc_2533b.html.
[FR Doc. 2016–10830 Filed 5–9–16; 8:45 am]
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Defense Acquisition Regulations
System
48 CFR Part 217
[Docket DARS–2015–0067]
Contracting officers shall follow the
principles and procedures in Director,
Defense Procurement and Acquisition
Policy memorandum dated April 1,
2016, entitled ‘‘Department of Defense
Source Selection Procedures,’’ when
conducting negotiated, competitive
acquisitions utilizing FAR part 15
procedures. See PGI 215.300.
*
[AMENDED]
15:17 May 09, 2016
Scope of subpart.
225.7003–2
PART 212—ACQUISITION OF
COMMERCIAL ITEMS
VerDate Sep<11>2014
215.300
■
Government procurement.
212.301
3. Revise section 215.300 to read as
follows:
■
DEPARTMENT OF DEFENSE
RIN 0750–AI80
Defense Federal Acquisition
Regulation Supplement: Multiyear
Contract Requirements (DFARS Case
2015–D009)
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 implement a section of the
National Defense Authorization Act for
Fiscal Year 2015 and a section of the
Department of Defense Appropriations
Act, 2015, which address various
requirements for multiyear contracts.
DATES: Effective May 10, 2016.
FOR FURTHER INFORMATION CONTACT: Mr.
Christopher Stiller, telephone 571–372–
6176.
SUPPLEMENTARY INFORMATION:
SUMMARY:
I. Background
DoD published a proposed rule in the
Federal Register at 80 FR 81499 on
December 30, 2015, to amend the
DFARS to implement section 816 of the
National Defense Authorization Act for
Fiscal Year 2015 (Pub. L. 113–291) and
section 8010 of the Department of
Defense Appropriations Act, 2015
(Division C, Title VIII of Pub. L. 113–
235), which address various
requirements for multiyear contracts.
There were no public comments
submitted in response to the proposed
rule. There are no changes from the
proposed rule made in the final rule.
II. Applicability to Contracts at or
Below the Simplified Acquisition
Threshold (SAT) and for Commercial
Items, Including Commercially
Available Off-the-Shelf (COTS) Items
This rule does not add any new
provisions or clauses or impact any
existing provisions or clauses.
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,
E:\FR\FM\10MYR1.SGM
10MYR1
Federal Register / Vol. 81, No. 90 / Tuesday, May 10, 2016 / Rules and Regulations
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.
ehiers on DSK5VPTVN1PROD with RULES
IV. Regulatory Flexibility Act
A final regulatory flexibility analysis
(FRFA) has been prepared consistent
with the Regulatory Flexibility Act, 5
U.S.C. 601, et seq. The FRFA is
summarized as follows:
The purpose of this rule is to
implement section 816 of the National
Defense Authorization Act for Fiscal
Year 2015 and section 8010 of the
Department of Defense Appropriations
Act, 2015, which address various
requirements for multiyear contracts.
The rule will amend the Defense
Federal Acquisition Regulation
Supplement to require the head of
agency to—
• Provide written notice to the
congressional defense committees at
least 30 days before termination of any
multiyear contract; and
• For defense acquisition programs
specifically authorized by law to be
carried out using multiyear authority,
ensure the Secretary of Defense certifies
to Congress certain conditions for the
multiyear contract have been met no
later than 30 days before entry into the
contract.
No comments were received from the
public regarding the initial regulatory
flexibility analysis.
The rule is not expected to impact
small entities, because the rule applies
to multiyear contract authorities for
specific major defense acquisition
programs for which small entities would
not have the capacity or infrastructure
to fulfill or sustain. Small entities may
perform under multiyear contracts as
subcontractors; however, the rule
invokes requirements that apply at the
prime contract level.
This rule does not create any new
reporting or recordkeeping
requirements.
There are no known significant
alternatives to the rule. The impact of
this rule on small business is not
expected to be significant because it
only affects DoD internal operating
procedures.
VerDate Sep<11>2014
15:17 May 09, 2016
Jkt 238001
V. Paperwork Reduction Act
List of Subjects in 48 CFR Part 217
Government procurement.
Jennifer Hawes,
Editor, Defense Acquisition Regulations
System.
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.
2. Revise section 217.170(b) to read as
follows:
■
General.
*
*
*
*
*
(b) The head of the agency must
provide written notice to the
congressional defense committees at
least 30 days before termination of any
multiyear contract (section 8010 of
Division C, Title VIII, of the
Consolidated and Further Continuing
Appropriations Act, 2015 (Pub. L. 113–
235) and similar sections in subsequent
DoD appropriations acts).
*
*
*
*
*
■ 3. Amend section 217.172—
■ a. In paragraph (c), by removing ‘‘10
U.S.C. 2306b(i)(3)’’ and adding ‘‘10
U.S.C. 2306b(i)(1)’’ in its place;
■ b. In paragraph (e)(1), by removing the
word ‘‘and’’;
■ c. In paragraph (e)(2), by removing the
period and adding a semicolon in its
place;
■ d. By adding paragraphs (e)(3), (4),
and (5);
■ e. In paragraph (h) introductory text,
by removing ‘‘under the authority
described in paragraph (b) of this
section:’’ and adding ‘‘for a defense
acquisition program that has been
specifically authorized by law to be
carried out using multiyear contract
authority:’’ in its place;
■ f. In paragraph (h)(2) introductory
text, by removing ‘‘March 1 of the year
in which the Secretary requests
legislative authority to enter’’ and
adding ‘‘30 days before entry’’ in its
place and by removing ‘‘10 U.S.C.
2306b(i)(1)(A) through (G)’’ and adding
‘‘10 U.S.C. 2306b(i)(3)’’ in its place;
■ g. In paragraph (h)(2)(i)—
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Fmt 4700
Sfmt 9990
i. By removing ‘‘FAR 17.105’’ and
adding ‘‘FAR 17.105–1’’ in its places;
■ ii. By adding a comma after ‘‘(5)’’; and
■ iii. By removing ‘‘10 U.S.C.
2306b(i)(1)(A)’’ and adding ‘‘10 U.S.C.
2306b(i)(3)(A)’’ in its place;
■ h. In paragraph (h)(2)(ii), by removing
‘‘10 U.S.C. 2306b(i)(1)(B)’’ and adding
‘‘10 U.S.C. 2306b(i)(3)(B)’’ in its place;
■ i. In paragraph (h)(2)(iii), by removing
‘‘10 U.S.C. 2306b(i)(1)(C)’’ and adding
‘‘10 U.S.C. 2306b(i)(3)(C)’’ in its place;
■ j. In paragraph (h)(2)(iv), by removing
‘‘10 U.S.C. 2306b(i)(1)(D)’’ and adding
‘‘10 U.S.C. 2306b(i)(3)(D)’’ in its place;
■ k. In paragraph (h)(2)(v), by removing
‘‘10 U.S.C. 2306b(i)(1)(E)’’ and adding
‘‘10 U.S.C. 2306b(i)(3)(E)’’ in its place;
■ l. In paragraph (h)(2)(vi), by removing
‘‘10 U.S.C. 2306b(i)(1)(F)’’ and adding
‘‘10 U.S.C. 2306b(i)(3)(F)’’ in its place;
■ m. In paragraph (h)(2)(vii), by
removing ‘‘10 U.S.C. 2306b(i)(1)(G)’’ and
adding ‘‘10 U.S.C. 2306b(i)(3)(G)’’ in its
place;
■ n. In paragraph (h)(3), by removing
‘‘10 U.S.C. 2306b(i)(4)(A)’’ and adding
‘‘10 U.S.C. 2306b(i)(5)(A)’’ in its place;
■ o. In paragraph (h)(4), by removing
‘‘10 U.S.C. 2306b(i)(4)(B)’’ and adding
‘‘10 U.S.C. 2306b(i)(5)(B)’’ in its place;
■ p. In paragraph (h)(5), by removing
‘‘10 U.S.C. 2306b(i)(5)’’ and adding ‘‘10
U.S.C. 2306b(i)(6)’’ in its place;
■ q. In paragraph (h)(6), by removing
‘‘10 U.S.C. 2306b(i)(6)’’ and adding ‘‘10
U.S.C. 2306b(i)(7)’’ in its place;
■ r. Removing paragraph (h)(7);
■ s. Redesignating paragraph (h)(8) as
(h)(7); and
■ t. In newly redesignated paragraph
(h)(7) introductory text, adding ‘‘(10
U.S.C. 2306b(i)(4))’’ after ‘‘law’s specific
savings requirement’’ before the period.
The additions read as follows:
■
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).
217.170
28731
217.172
Multiyear contracts for supplies.
*
*
*
*
*
(e) * * *
(3) Cancellation provisions in the
contract do not include consideration of
recurring manufacturing costs of the
contractor associated with the
production of unfunded units to be
delivered under the contract;
(4) The contract provides that
payments to the contractor under the
contract shall not be made in advance
of incurred costs on funded units; and
(5) The contract does not provide for
a price adjustment based on a failure to
award a follow-on contract (section
8010 of Division C, Title VIII, of the
Consolidated and Further Continuing
Appropriations Act, 2015 (Pub. L. 113–
235) and similar sections in subsequent
DoD appropriations acts).
*
*
*
*
*
[FR Doc. 2016–10823 Filed 5–9–16; 8:45 am]
BILLING CODE 5001–06–P
E:\FR\FM\10MYR1.SGM
10MYR1
]]>Agencies
[Federal Register Volume 81, Number 90 (Tuesday, May 10, 2016)]
[Rules and Regulations]
[Pages 28730-28731]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-10823]
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System
48 CFR Part 217
[Docket DARS-2015-0067]
RIN 0750-AI80
Defense Federal Acquisition Regulation Supplement: Multiyear
Contract Requirements (DFARS Case 2015-D009)
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 implement a section of the
National Defense Authorization Act for Fiscal Year 2015 and a section
of the Department of Defense Appropriations Act, 2015, which address
various requirements for multiyear contracts.
DATES: Effective May 10, 2016.
FOR FURTHER INFORMATION CONTACT: Mr. Christopher Stiller, telephone
571-372-6176.
SUPPLEMENTARY INFORMATION:
I. Background
DoD published a proposed rule in the Federal Register at 80 FR
81499 on December 30, 2015, to amend the DFARS to implement section 816
of the National Defense Authorization Act for Fiscal Year 2015 (Pub. L.
113-291) and section 8010 of the Department of Defense Appropriations
Act, 2015 (Division C, Title VIII of Pub. L. 113-235), which address
various requirements for multiyear contracts. There were no public
comments submitted in response to the proposed rule. There are no
changes from the proposed rule made in the final rule.
II. Applicability to Contracts at or Below the Simplified Acquisition
Threshold (SAT) and for Commercial Items, Including Commercially
Available Off-the-Shelf (COTS) Items
This rule does not add any new provisions or clauses or impact any
existing provisions or clauses.
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,
[[Page 28731]]
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 (FRFA) has been prepared
consistent with the Regulatory Flexibility Act, 5 U.S.C. 601, et seq.
The FRFA is summarized as follows:
The purpose of this rule is to implement section 816 of the
National Defense Authorization Act for Fiscal Year 2015 and section
8010 of the Department of Defense Appropriations Act, 2015, which
address various requirements for multiyear contracts. The rule will
amend the Defense Federal Acquisition Regulation Supplement to require
the head of agency to--
Provide written notice to the congressional defense
committees at least 30 days before termination of any multiyear
contract; and
For defense acquisition programs specifically authorized
by law to be carried out using multiyear authority, ensure the
Secretary of Defense certifies to Congress certain conditions for the
multiyear contract have been met no later than 30 days before entry
into the contract.
No comments were received from the public regarding the initial
regulatory flexibility analysis.
The rule is not expected to impact small entities, because the rule
applies to multiyear contract authorities for specific major defense
acquisition programs for which small entities would not have the
capacity or infrastructure to fulfill or sustain. Small entities may
perform under multiyear contracts as subcontractors; however, the rule
invokes requirements that apply at the prime contract level.
This rule does not create any new reporting or recordkeeping
requirements.
There are no known significant alternatives to the rule. The impact
of this rule on small business is not expected to be significant
because it only affects DoD internal operating procedures.
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.
Jennifer Hawes,
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.
0
2. Revise section 217.170(b) to read as follows:
217.170 General.
* * * * *
(b) The head of the agency must provide written notice to the
congressional defense committees at least 30 days before termination of
any multiyear contract (section 8010 of Division C, Title VIII, of the
Consolidated and Further Continuing Appropriations Act, 2015 (Pub. L.
113-235) and similar sections in subsequent DoD appropriations acts).
* * * * *
0
3. Amend section 217.172--
0
a. In paragraph (c), by removing ``10 U.S.C. 2306b(i)(3)'' and adding
``10 U.S.C. 2306b(i)(1)'' in its place;
0
b. In paragraph (e)(1), by removing the word ``and'';
0
c. In paragraph (e)(2), by removing the period and adding a semicolon
in its place;
0
d. By adding paragraphs (e)(3), (4), and (5);
0
e. In paragraph (h) introductory text, by removing ``under the
authority described in paragraph (b) of this section:'' and adding
``for a defense acquisition program that has been specifically
authorized by law to be carried out using multiyear contract
authority:'' in its place;
0
f. In paragraph (h)(2) introductory text, by removing ``March 1 of the
year in which the Secretary requests legislative authority to enter''
and adding ``30 days before entry'' in its place and by removing ``10
U.S.C. 2306b(i)(1)(A) through (G)'' and adding ``10 U.S.C.
2306b(i)(3)'' in its place;
0
g. In paragraph (h)(2)(i)--
0
i. By removing ``FAR 17.105'' and adding ``FAR 17.105-1'' in its
places;
0
ii. By adding a comma after ``(5)''; and
0
iii. By removing ``10 U.S.C. 2306b(i)(1)(A)'' and adding ``10 U.S.C.
2306b(i)(3)(A)'' in its place;
0
h. In paragraph (h)(2)(ii), by removing ``10 U.S.C. 2306b(i)(1)(B)''
and adding ``10 U.S.C. 2306b(i)(3)(B)'' in its place;
0
i. In paragraph (h)(2)(iii), by removing ``10 U.S.C. 2306b(i)(1)(C)''
and adding ``10 U.S.C. 2306b(i)(3)(C)'' in its place;
0
j. In paragraph (h)(2)(iv), by removing ``10 U.S.C. 2306b(i)(1)(D)''
and adding ``10 U.S.C. 2306b(i)(3)(D)'' in its place;
0
k. In paragraph (h)(2)(v), by removing ``10 U.S.C. 2306b(i)(1)(E)'' and
adding ``10 U.S.C. 2306b(i)(3)(E)'' in its place;
0
l. In paragraph (h)(2)(vi), by removing ``10 U.S.C. 2306b(i)(1)(F)''
and adding ``10 U.S.C. 2306b(i)(3)(F)'' in its place;
0
m. In paragraph (h)(2)(vii), by removing ``10 U.S.C. 2306b(i)(1)(G)''
and adding ``10 U.S.C. 2306b(i)(3)(G)'' in its place;
0
n. In paragraph (h)(3), by removing ``10 U.S.C. 2306b(i)(4)(A)'' and
adding ``10 U.S.C. 2306b(i)(5)(A)'' in its place;
0
o. In paragraph (h)(4), by removing ``10 U.S.C. 2306b(i)(4)(B)'' and
adding ``10 U.S.C. 2306b(i)(5)(B)'' in its place;
0
p. In paragraph (h)(5), by removing ``10 U.S.C. 2306b(i)(5)'' and
adding ``10 U.S.C. 2306b(i)(6)'' in its place;
0
q. In paragraph (h)(6), by removing ``10 U.S.C. 2306b(i)(6)'' and
adding ``10 U.S.C. 2306b(i)(7)'' in its place;
0
r. Removing paragraph (h)(7);
0
s. Redesignating paragraph (h)(8) as (h)(7); and
0
t. In newly redesignated paragraph (h)(7) introductory text, adding
``(10 U.S.C. 2306b(i)(4))'' after ``law's specific savings
requirement'' before the period.
The additions read as follows:
217.172 Multiyear contracts for supplies.
* * * * *
(e) * * *
(3) Cancellation provisions in the contract do not include
consideration of recurring manufacturing costs of the contractor
associated with the production of unfunded units to be delivered under
the contract;
(4) The contract provides that payments to the contractor under the
contract shall not be made in advance of incurred costs on funded
units; and
(5) The contract does not provide for a price adjustment based on a
failure to award a follow-on contract (section 8010 of Division C,
Title VIII, of the Consolidated and Further Continuing Appropriations
Act, 2015 (Pub. L. 113-235) and similar sections in subsequent DoD
appropriations acts).
* * * * *
[FR Doc. 2016-10823 Filed 5-9-16; 8:45 am]
BILLING CODE 5001-06-P
