Defense Federal Acquisition Regulation Supplement: Pilot Program on Acquisition of Military Purpose Nondevelopmental Items (DFARS Case 2016-D014), 78012-78013 [2016-26368]
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78012
ACTION:
Federal Register / Vol. 81, No. 214 / Friday, November 4, 2016 / Rules and Regulations
V. Executive Orders 12866 and 13563
Final rule.
DoD is issuing a final rule to
amend the Defense Federal Acquisition
Regulation Supplement (DFARS) to
remove the acronym for contiguous
United States.
DATES: Effective November 4, 2016.
FOR FURTHER INFORMATION CONTACT: Ms.
Julie Hammond, telephone 571–372–
6174.
SUMMARY:
SUPPLEMENTARY INFORMATION:
I. Background
DoD is amending the DFARS to
remove the acronym for contiguous
United States (CONUS). While the term
‘‘contiguous United States (CONUS)’’ is
defined in Federal Acquisition
Regulation (FAR) 2.101, the acronym is
sometimes misinterpreted as
‘‘continental United States.’’ Spelling
out the acronym in the DFARS will
eliminate any confusion.
II. Discussion and Analysis
DFARS 274.301 is amended to update
the reference to transportation guidance
in DFARS Procedures, Guidance, and
Information and, as a result, remove the
acronym CONUS.
DFARS 274.301–71 is amended to
spell out ‘‘the contiguous United States’’
in lieu of CONUS.
III. Applicability to Contracts at or
Below the Simplified Acquisition
Threshold (SAT) and for Commercial
Items, Including Commercially
Available Off-the-Shelf (COTS) Items
asabaliauskas on DSK3SPTVN1PROD with RULES
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.
VII. 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).
Jennifer L. Hawes,
Editor, Defense Acquisition Regulations
System.
Therefore, 48 CFR part 247 is
amended as follows:
The statute that applies to the
publication of the 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 removing
and spelling out the acronym for
‘‘contiguous United States’’.
Jkt 241001
VI. Regulatory Flexibility Act
Government procurement.
IV. Publication of This Final Rule for
Public Comment Is Not Required by
Statute
21:31 Nov 03, 2016
Defense Acquisition Regulations
System
List of Subjects in 48 CFR Part 247
This case does not add any new
provisions or clauses or impact any
existing provisions or clauses.
VerDate Sep<11>2014
DEPARTMENT OF DEFENSE
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.
PART 247—TRANSPORTATION
1. The authority citation for 48 CFR
part 247 continues to read as follows:
■
Authority: 41 U.S.C. 1303 and 48 CFR
chapter 1.
247.301
[Amended]
2. In section 247.301, remove the
phrase ‘‘that require shipments to
destinations outside CONUS’’.
■
247.301–71
[Amended]
3. In section 247.301–71, remove
‘‘outside CONUS’’ and add ‘‘outside the
contiguous United States’’ in its place.
■
[FR Doc. 2016–26367 Filed 11–3–16; 8:45 am]
BILLING CODE 5001–06–P
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48 CFR Parts 212 and 252
[Docket DARS–2016–0015]
RIN 0750–AI93
Defense Federal Acquisition
Regulation Supplement: Pilot Program
on Acquisition of Military Purpose
Nondevelopmental Items (DFARS Case
2016–D014)
Defense Acquisition
Regulations System, Department of
Defense (DoD).
ACTION: Final rule.
AGENCY:
DoD is adopting as final, with
changes, an interim rule amending the
Defense Federal Acquisition Regulation
Supplement (DFARS) to implement a
section of the National Defense
Authorization Act for Fiscal Year 2016
that changes the criteria for the pilot
program for acquisition of military
purpose nondevelopmental items.
DATES: Effective November 4, 2016.
FOR FURTHER INFORMATION CONTACT: Ms.
Carrie Moore, telephone 571–372–6093.
SUPPLEMENTARY INFORMATION:
SUMMARY:
I. Background
DoD published an interim rule in the
Federal Register at 80 FR 42557 on June
30, 2016, to implement section 892 of
the National Defense Authorization
Action (NDAA) for Fiscal Year (FY)
2016 (Pub. L. 114–92). Section 892
removes the requirements under the
pilot program for the use of competitive
procedures and for awards to be made
to nontraditional defense contractors.
Section 892 also increases the threshold
for use of the pilot program to contracts
up to $100 million. Two respondents
submitted public comments in response
to the interim rule.
II. Discussion and Analysis
DoD reviewed the public comments in
the development of the final rule. A
discussion of the comments received
and the changes made to the rule as a
result of those comments is provided, as
follows:
A. Summary of Significant Changes
From the Interim Rule
One change is made in the final rule
as a result of a public comment. The
prescription at DFARS 212.7103 for
DFARS provision 252.212–7002, Pilot
Program for Acquisition of MilitaryPurpose Nondevelopmental Items, is
revised to clarify its use in solicitations
E:\FR\FM\04NOR6.SGM
04NOR6
Federal Register / Vol. 81, No. 214 / Friday, November 4, 2016 / Rules and Regulations
to the acquisition of commercial items,
including COTS items.
when use of the pilot program is
planned and the applicability criteria
are met.
B. Analysis of Public Comments
1. General
Comment: One respondent
recommended rewording the
prescription at DFARS 212.7103 to
clarify proper use of the provision.
Response: The prescription at DFARS
212.7103 is revised to state, ‘‘Use the
provision at 252.212–7002, Pilot
Program for Acquisition of MilitaryPurpose Nondevelopmental Items, in
solicitations when use of the pilot
program is planned and the
applicability criteria of 212.7102–1 are
met.’’
2. Implementation
Comment: One respondent suggested
revising the text at DFARS 212.7102–
1(d) to capture the removal of the
requirement to use competitive
procedures under the pilot program by
adding, ‘‘Each contract entered into
under the pilot program shall be exempt
from the requirement for the use of
competitive procedures.’’
Response: The respondent’s
suggestion is outside the scope of the
authority provided by section 892. The
statute removes the requirement that
each contract under the pilot program
be awarded using the competitive
procedures at 10 U.S.C. chapter 137.
Section 892 does not provide any
further exemptions to the competition
requirements outlined in the FAR and
DFARS. The interim rule accomplishes
the goal of section 892 by removing
from the applicability criteria for the
pilot program at DFARS 212.7102–1 the
requirement to award using competitive
procedures. No additional text is
required.
asabaliauskas on DSK3SPTVN1PROD with RULES
III. Applicability to Contracts at or
Below the Simplified Acquisition
Threshold (SAT) and for Commercial
Items, Including Commercially
Available Off-the-Shelf (COTS) Items
The requirements of section 892 of the
NDAA for FY 2016 do not apply to
contracts at or below the SAT.
Additionally, while FAR part 12
commercial procedures may be used to
acquire military purpose
nondevelopmental items under this
pilot program, the rule does not apply
VerDate Sep<11>2014
21:31 Nov 03, 2016
Jkt 241001
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 final rule amends the Defense
Federal Acquisition Regulation
Supplement (DFARS) to implement
section 892 of the National Defense
Authorization Act for Fiscal Year 2016.
The objective of the rule is to modify the
criteria for the pilot program at DFARS
212.71, Pilot Program for the
Acquisition of Military Purpose
Nondevelopmental Items, to increase
the opportunities for use of the program.
The rule removes the criteria that
contracts must be awarded to
‘‘nontraditional defense contractors’’
and awards must be made using
competitive procedures. The rule also
increases the dollar threshold for the
program to allow use on procurements
up to $100 million.
There were no significant issues
raised by the public in response to the
initial regulatory flexibility analysis
provided in the interim rule.
The changes to the pilot program will
have a positive economic impact on
small businesses that did not meet the
definition of ‘‘nontraditional defense
contractors’’ and have developed
products that could be applied to a
military purpose. According to data
available in the Federal Procurement
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78013
Data System for FY 2015, 6,514 unique
small businesses were awarded a DoD
contract in excess of the certified cost
and pricing threshold ($750,000) and
therefore did not meet the definition of
‘‘nontraditional defense contractor.’’
Prior to the changes made by this rule
these small businesses were not eligible
for an award under the pilot program.
These small businesses will now be able
to participate in the pilot program if
they are developing a military purpose
nondevelopmental item.
This rule does not impose any new
reporting, recordkeeping, or other
compliance requirements. No significant
alternatives were identified during the
development of this rule.
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 Parts 212 and
252
Government procurement.
Jennifer L. Hawes,
Editor, Defense Acquisition Regulations
System.
Accordingly, the interim rule
amending 48 CFR parts 212 and 252,
which was published in the Federal
Register at 80 FR 42557 on June 30,
2016, is adopted as a final rule with the
following change:
PART 212—ACQUISITION OF
COMMERCIAL ITEMS
1. The authority citation for part 212
continues to read as follows:
■
Authority: 41 U.S.C. 1303 and 48 CFR
chapter 1.
2. Revise section 212.7103 to read as
follows:
■
212.7103
Solicitation provision.
Use the provision at 252.212–7002,
Pilot Program for Acquisition of
Military-Purpose Nondevelopmental
Items, in solicitations when use of the
pilot program is planned and the
applicability criteria of 212.7102–1 are
met.
[FR Doc. 2016–26368 Filed 11–3–16; 8:45 am]
BILLING CODE 5001–06–P
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04NOR6
]]>Agencies
[Federal Register Volume 81, Number 214 (Friday, November 4, 2016)]
[Rules and Regulations]
[Pages 78012-78013]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-26368]
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System
48 CFR Parts 212 and 252
[Docket DARS-2016-0015]
RIN 0750-AI93
Defense Federal Acquisition Regulation Supplement: Pilot Program
on Acquisition of Military Purpose Nondevelopmental Items (DFARS Case
2016-D014)
AGENCY: Defense Acquisition Regulations System, Department of Defense
(DoD).
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: DoD is adopting as final, with changes, an interim rule
amending the Defense Federal Acquisition Regulation Supplement (DFARS)
to implement a section of the National Defense Authorization Act for
Fiscal Year 2016 that changes the criteria for the pilot program for
acquisition of military purpose nondevelopmental items.
DATES: Effective November 4, 2016.
FOR FURTHER INFORMATION CONTACT: Ms. Carrie Moore, telephone 571-372-
6093.
SUPPLEMENTARY INFORMATION:
I. Background
DoD published an interim rule in the Federal Register at 80 FR
42557 on June 30, 2016, to implement section 892 of the National
Defense Authorization Action (NDAA) for Fiscal Year (FY) 2016 (Pub. L.
114-92). Section 892 removes the requirements under the pilot program
for the use of competitive procedures and for awards to be made to
nontraditional defense contractors. Section 892 also increases the
threshold for use of the pilot program to contracts up to $100 million.
Two respondents submitted public comments in response to the interim
rule.
II. Discussion and Analysis
DoD reviewed the public comments in the development of the final
rule. A discussion of the comments received and the changes made to the
rule as a result of those comments is provided, as follows:
A. Summary of Significant Changes From the Interim Rule
One change is made in the final rule as a result of a public
comment. The prescription at DFARS 212.7103 for DFARS provision
252.212-7002, Pilot Program for Acquisition of Military-Purpose
Nondevelopmental Items, is revised to clarify its use in solicitations
[[Page 78013]]
when use of the pilot program is planned and the applicability criteria
are met.
B. Analysis of Public Comments
1. General
Comment: One respondent recommended rewording the prescription at
DFARS 212.7103 to clarify proper use of the provision.
Response: The prescription at DFARS 212.7103 is revised to state,
``Use the provision at 252.212-7002, Pilot Program for Acquisition of
Military-Purpose Nondevelopmental Items, in solicitations when use of
the pilot program is planned and the applicability criteria of
212.7102-1 are met.''
2. Implementation
Comment: One respondent suggested revising the text at DFARS
212.7102-1(d) to capture the removal of the requirement to use
competitive procedures under the pilot program by adding, ``Each
contract entered into under the pilot program shall be exempt from the
requirement for the use of competitive procedures.''
Response: The respondent's suggestion is outside the scope of the
authority provided by section 892. The statute removes the requirement
that each contract under the pilot program be awarded using the
competitive procedures at 10 U.S.C. chapter 137. Section 892 does not
provide any further exemptions to the competition requirements outlined
in the FAR and DFARS. The interim rule accomplishes the goal of section
892 by removing from the applicability criteria for the pilot program
at DFARS 212.7102-1 the requirement to award using competitive
procedures. No additional text is required.
III. Applicability to Contracts at or Below the Simplified Acquisition
Threshold (SAT) and for Commercial Items, Including Commercially
Available Off-the-Shelf (COTS) Items
The requirements of section 892 of the NDAA for FY 2016 do not
apply to contracts at or below the SAT. Additionally, while FAR part 12
commercial procedures may be used to acquire military purpose
nondevelopmental items under this pilot program, the rule does not
apply to the acquisition of commercial items, including COTS items.
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 final rule amends the Defense Federal Acquisition Regulation
Supplement (DFARS) to implement section 892 of the National Defense
Authorization Act for Fiscal Year 2016. The objective of the rule is to
modify the criteria for the pilot program at DFARS 212.71, Pilot
Program for the Acquisition of Military Purpose Nondevelopmental Items,
to increase the opportunities for use of the program. The rule removes
the criteria that contracts must be awarded to ``nontraditional defense
contractors'' and awards must be made using competitive procedures. The
rule also increases the dollar threshold for the program to allow use
on procurements up to $100 million.
There were no significant issues raised by the public in response
to the initial regulatory flexibility analysis provided in the interim
rule.
The changes to the pilot program will have a positive economic
impact on small businesses that did not meet the definition of
``nontraditional defense contractors'' and have developed products that
could be applied to a military purpose. According to data available in
the Federal Procurement Data System for FY 2015, 6,514 unique small
businesses were awarded a DoD contract in excess of the certified cost
and pricing threshold ($750,000) and therefore did not meet the
definition of ``nontraditional defense contractor.'' Prior to the
changes made by this rule these small businesses were not eligible for
an award under the pilot program. These small businesses will now be
able to participate in the pilot program if they are developing a
military purpose nondevelopmental item.
This rule does not impose any new reporting, recordkeeping, or
other compliance requirements. No significant alternatives were
identified during the development of this rule.
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 Parts 212 and 252
Government procurement.
Jennifer L. Hawes,
Editor, Defense Acquisition Regulations System.
Accordingly, the interim rule amending 48 CFR parts 212 and 252,
which was published in the Federal Register at 80 FR 42557 on June 30,
2016, is adopted as a final rule with the following change:
PART 212--ACQUISITION OF COMMERCIAL ITEMS
0
1. The authority citation for part 212 continues to read as follows:
Authority: 41 U.S.C. 1303 and 48 CFR chapter 1.
0
2. Revise section 212.7103 to read as follows:
212.7103 Solicitation provision.
Use the provision at 252.212-7002, Pilot Program for Acquisition of
Military-Purpose Nondevelopmental Items, in solicitations when use of
the pilot program is planned and the applicability criteria of
212.7102-1 are met.
[FR Doc. 2016-26368 Filed 11-3-16; 8:45 am]
BILLING CODE 5001-06-P
