Defense Federal Acquisition Regulation Supplement: Treatment of Interagency and State and Local Purchases (DFARS Case 2016-D009), 42562-42563 [2016-15249]

Download as PDF 42562 Federal Register / Vol. 81, No. 126 / Thursday, June 30, 2016 / Rules and Regulations or denying award fees for such period or for recovering all or part of award fees previously paid for such period. (e) Rule of construction. The duty of the Contractor to comply with the requirements of this clause shall not be reduced or diminished by the failure of a higher- or lower-tier Contractor or subcontractor to comply with the clause requirements or by a failure of the contracting activity to provide required oversight. * * * * * [FR Doc. 2016–15247 Filed 6–29–16; 8:45 am] BILLING CODE 5001–06–P II. Discussion and Analysis There are no changes from the proposed rule made in the final rule. The one respondent that submitted a comment fully supported the proposed rule. DEPARTMENT OF DEFENSE Defense Acquisition Regulations System 48 CFR Part 225 [Docket DARS–2016–0007] RIN 0750–AI88 Defense Federal Acquisition Regulation Supplement: Treatment of Interagency and State and Local Purchases (DFARS Case 2016–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 2016 that is entitled ‘‘Treatment of Interagency and State and Local Purchases.’’ This section provides that contracts executed by DoD as a result of the transfer of contracts from the General Services Administration or for which DoD serves as an item manager for products on behalf of the General Services Administration shall not be subject to certain domestic source restrictions, to the extent that such contracts are for the purchase of products by other Federal agencies or State or local governments. DATES: Effective June 30, 2016. FOR FURTHER INFORMATION CONTACT: Ms. Amy G. Williams, telephone 571–372– 6106. SUPPLEMENTARY INFORMATION: srobinson on DSK5SPTVN1PROD with RULES SUMMARY: I. Background DoD published a proposed rule in the Federal Register at 81 FR 17053 on March 25, 2016, to implement section 897 of the National Defense Authorization Act for Fiscal Year 2016 (Pub. L. 114–92). Section 897 provides VerDate Sep<11>2014 20:00 Jun 29, 2016 Jkt 238001 that contracts executed by DoD as a result of the transfer of contracts from the General Services Administration or for which DoD serves as an item manager for products on behalf of the General Services Administration shall not be subject to the requirements under 10 U.S.C. chapter 148 (National Defense Technology and Industrial Base, Defense Investment, and Defense Conversion), to the extent that such contracts are for the purchase of products by other Federal agencies or State or local governments. One respondent submitted public comments in response to the proposed rule. III. Applicability to Contracts at or Below the Simplified Acquisition Threshold and for Commercial Items, Including Commercially Available Offthe-Shelf Items This case does not add any new provisions or clauses or impact any existing provisions or clauses. IV. 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. V. 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: This rule implements section 897 of the National Defense Authorization Act for Fiscal Year 2016. The objective of this rule is to eliminate the domestic source restrictions of 10 U.S.C. chapter 148 when contracts executed by DoD as a result of the transfer of contracts from the General Services Administration or PO 00000 Frm 00110 Fmt 4700 Sfmt 4700 for which DoD serves as an item manager for products on behalf of the General Services Administration, to the extent that such contracts are for the purchase of products by other Federal agencies or State or local governments. There were no significant issues raised by the public in response to the initial regulatory flexibility analysis. DoD does not anticipate frequent application of this rule. The rule removes the domestic source restriction for the specified items in the specified circumstances. In the rare instance in which the circumstances of the statute apply, it is possible that an item could be acquired from a foreign source, rather than a domestic source, which could potentially be a small business. It is not possible to estimate the number of small entities that may be affected, because it is unknown the extent to which the given circumstances may occur. There are no projected reporting, recordkeeping, or other compliance requirements. DoD has not identified any alternatives that would minimize any economic impact on small entities and still meet the requirements of the statute. VI. 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 225 Government procurement. Jennifer L. Hawes, Editor, Defense Acquisition Regulations System. Therefore, 48 CFR part 225 is amended as follows: PART 225—FOREIGN ACQUISITION 1. The authority citation for 48 CFR part 225 continues to read as follows: ■ Authority: 41 U.S.C. 1303 and 48 CFR chapter 1. 2. Amend section 225.7002–2 by adding paragraph (o) to read as follows: ■ 225.7002–2 * Exceptions. * * * * (o) Acquisitions that are interagency, State, or local purchases that are executed by DoD as a result of the transfer of contracts from the General Services Administration or for which DoD serves as an item manager for products on behalf of the General Services Administration. According to section 897 of the National Defense E:\FR\FM\30JNR1.SGM 30JNR1 Federal Register / Vol. 81, No. 126 / Thursday, June 30, 2016 / Rules and Regulations Authorization Act for Fiscal Year 2016 (Pub. L. 114–92), such contracts shall not be subject to requirements under chapter 148 of title 10, United States Code (including 10 U.S.C. 2533a), to the extent such contracts are for purchases of products by other Federal agencies or State or local governments. [FR Doc. 2016–15249 Filed 6–29–16; 8:45 am] BILLING CODE 5001–06–P DEPARTMENT OF DEFENSE Defense Acquisition Regulations System 48 CFR Part 252 [Docket DARS–2016–0022] RIN 0750–AI98 Defense Federal Acquisition Regulation Supplement: New Designated Country—Ukraine (DFARS Case 2016–D026) Defense Acquisition Regulations System, Department of Defense (DoD). AGENCY: ACTION: Final rule. DoD is issuing a final rule to amend the Defense Federal Acquisition Regulation Supplement (DFARS) to add Ukraine as a new designated country under the World Trade Organization Government Procurement Agreement. SUMMARY: DATES: Effective June 30, 2016. Mr. Christopher Stiller, telephone 571–372– 6176. FOR FURTHER INFORMATION CONTACT: SUPPLEMENTARY INFORMATION: srobinson on DSK5SPTVN1PROD with RULES I. Background On November 11, 2015, the World Trade Organization (WTO) Committee on Government Procurement approved the accession of Ukraine to the WTO Government Procurement Agreement (GPA). Ukraine submitted its instrument of accession to the Secretary General of the WTO on April 18, 2016. The GPA entered into force for Ukraine on May 18, 2016. The United States, which is also a party to the GPA, has agreed to waive discriminatory purchasing requirements for eligible products and suppliers of Ukraine beginning on May 18, 2016. Therefore, this rule adds Ukraine to the list of WTO GPA countries wherever it appears in the DFARS, as part of the definition of ‘‘designated country’’. VerDate Sep<11>2014 20:00 Jun 29, 2016 Jkt 238001 II. Applicability to Contracts at or Below the Simplified Acquisition Threshold and for Commercial Items, Including Commercially Available Offthe-Shelf Items This rule only updates the list of designated countries in the DFARS by adding the newly designated country of Ukraine. The definition of ‘‘designated country’’ is updated in each of the following clauses; however, this revision does not impact the clause prescriptions for use, or applicability at or below the simplified acquisition threshold, or applicability to commercial items. The clauses are: DFARS 252.225–7017, Photovoltaic Devices; DFARS 252.225–7021, Trade Agreements; and DFARS 252.225–7045, Balance of Payments Program— Construction Material Under Trade Agreements. III. Publication of This Final Rule for Public Comment is not Required by Statute The statute that applies to the publication of the Federal Acquisition Regulation (FAR) is 41 U.S.C. 1707 entitled ‘‘Publication of Proposed Regulations.’’ Paragraph (a)(1) of the statute requires that a procurement policy, regulation, procedure or form (including an amendment or modification thereof) must be published for public comment if it relates to the expenditure of appropriated funds, and has either a significant effect beyond the internal operating procedures of the agency issuing the policy, regulation, procedure or form, or has a significant cost or administrative impact on contractors or offerors. This final rule is not required to be published for public comment, because it is just updating the lists of designated countries in order to reflect that Ukraine is now a member of the WTO GPA. These requirements affect only the internal operating procedures of the Government. IV. 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 PO 00000 Frm 00111 Fmt 4700 Sfmt 4700 42563 E.O. 12866, Regulatory Planning and Review, dated September 30, 1993. This rule is not a major rule under 5 U.S.C. 804. V. Regulatory Flexibility Act The Regulatory Flexibility Act does not apply to this rule because this final rule does not constitute a significant DFARS revision within the meaning of FAR 1.501–1, and 41 U.S.C. 1707 does not require publication for public comment. VI. Paperwork Reduction Act This rule affects the information collection requirements in the provisions at DFARS 252.225–7020, Trade Agreements Certificate, and 252.225–7018, Photovoltaic Devices— Certificate, currently approved under OMB Control Number 0704–0229, entitled ‘‘Defense Federal Acquisition Regulation Supplement Part 225, Foreign Acquisition, and related clauses,’’ in accordance with the Paperwork Reduction Act (44 U.S.C. chapter 35). The impact, however, is negligible, because the rule only affects the response of an offeror that is offering a product of Ukraine in an acquisition that exceeds $191,000. In 252.225–7018, the offeror of a product from Ukraine must now check a box at (d)(6)(i) of the provision. However, the offeror no longer needs to list a product from Ukraine under ‘‘other end products’’ at 252.225–7020(c)(2), because Ukraine is now a designated country. List of Subjects in 48 CFR Part 252 Government procurement. Jennifer L. Hawes, Editor, Defense Acquisition Regulations System. Therefore, 48 CFR part 252 is amended as follows: PART 252—SOLICITATION PROVISIONS AND CONTRACT CLAUSES 1. The authority citation for 48 CFR part 252 continues to read as follows: ■ Authority: 41 U.S.C. 1303 and 48 CFR chapter 1. 252.225–7017 [Amended] 2. Amend section 252.225–7017 by— a. Removing the clause date of ‘‘(JAN 2016)’’ and adding ‘‘(JUN 2016)’’ in its place; and ■ b. In paragraph (a), in the definition of ‘‘designated country’’ in paragraph (i), adding, in alphabetical order, the country of ‘‘Ukraine’’. ■ ■ 252.225–7021 ■ [Amended] 3. Amend section 252.225–7021 by— E:\FR\FM\30JNR1.SGM 30JNR1

Agencies

[Federal Register Volume 81, Number 126 (Thursday, June 30, 2016)]
[Rules and Regulations]
[Pages 42562-42563]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-15249]


-----------------------------------------------------------------------

DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Part 225

[Docket DARS-2016-0007]
RIN 0750-AI88


Defense Federal Acquisition Regulation Supplement: Treatment of 
Interagency and State and Local Purchases (DFARS Case 2016-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 2016 that is 
entitled ``Treatment of Interagency and State and Local Purchases.'' 
This section provides that contracts executed by DoD as a result of the 
transfer of contracts from the General Services Administration or for 
which DoD serves as an item manager for products on behalf of the 
General Services Administration shall not be subject to certain 
domestic source restrictions, to the extent that such contracts are for 
the purchase of products by other Federal agencies or State or local 
governments.

DATES: Effective June 30, 2016.

FOR FURTHER INFORMATION CONTACT: Ms. Amy G. Williams, telephone 571-
372-6106.

SUPPLEMENTARY INFORMATION:

I. Background

    DoD published a proposed rule in the Federal Register at 81 FR 
17053 on March 25, 2016, to implement section 897 of the National 
Defense Authorization Act for Fiscal Year 2016 (Pub. L. 114-92). 
Section 897 provides that contracts executed by DoD as a result of the 
transfer of contracts from the General Services Administration or for 
which DoD serves as an item manager for products on behalf of the 
General Services Administration shall not be subject to the 
requirements under 10 U.S.C. chapter 148 (National Defense Technology 
and Industrial Base, Defense Investment, and Defense Conversion), to 
the extent that such contracts are for the purchase of products by 
other Federal agencies or State or local governments. One respondent 
submitted public comments in response to the proposed rule.

II. Discussion and Analysis

    There are no changes from the proposed rule made in the final rule. 
The one respondent that submitted a comment fully supported the 
proposed rule.

III. Applicability to Contracts at or Below the Simplified Acquisition 
Threshold and for Commercial Items, Including Commercially Available 
Off-the-Shelf Items

    This case does not add any new provisions or clauses or impact any 
existing provisions or clauses.

IV. 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.

V. 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:
    This rule implements section 897 of the National Defense 
Authorization Act for Fiscal Year 2016. The objective of this rule is 
to eliminate the domestic source restrictions of 10 U.S.C. chapter 148 
when contracts executed by DoD as a result of the transfer of contracts 
from the General Services Administration or for which DoD serves as an 
item manager for products on behalf of the General Services 
Administration, to the extent that such contracts are for the purchase 
of products by other Federal agencies or State or local governments.
    There were no significant issues raised by the public in response 
to the initial regulatory flexibility analysis.
    DoD does not anticipate frequent application of this rule. The rule 
removes the domestic source restriction for the specified items in the 
specified circumstances. In the rare instance in which the 
circumstances of the statute apply, it is possible that an item could 
be acquired from a foreign source, rather than a domestic source, which 
could potentially be a small business. It is not possible to estimate 
the number of small entities that may be affected, because it is 
unknown the extent to which the given circumstances may occur.
    There are no projected reporting, recordkeeping, or other 
compliance requirements.
    DoD has not identified any alternatives that would minimize any 
economic impact on small entities and still meet the requirements of 
the statute.

VI. 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 225

    Government procurement.

Jennifer L. Hawes,
Editor, Defense Acquisition Regulations System.
    Therefore, 48 CFR part 225 is amended as follows:

PART 225--FOREIGN ACQUISITION

0
1. The authority citation for 48 CFR part 225 continues to read as 
follows:

    Authority: 41 U.S.C. 1303 and 48 CFR chapter 1.


0
2. Amend section 225.7002-2 by adding paragraph (o) to read as follows:


225.7002-2  Exceptions.

* * * * *
    (o) Acquisitions that are interagency, State, or local purchases 
that are executed by DoD as a result of the transfer of contracts from 
the General Services Administration or for which DoD serves as an item 
manager for products on behalf of the General Services Administration. 
According to section 897 of the National Defense

[[Page 42563]]

Authorization Act for Fiscal Year 2016 (Pub. L. 114-92), such contracts 
shall not be subject to requirements under chapter 148 of title 10, 
United States Code (including 10 U.S.C. 2533a), to the extent such 
contracts are for purchases of products by other Federal agencies or 
State or local governments.

[FR Doc. 2016-15249 Filed 6-29-16; 8:45 am]
BILLING CODE 5001-06-P