Defense Federal Acquisition Regulation Supplement: Market Research and Consideration of Value for the Determination of Price (DFARS Case 2019-D027), 34530-34532 [2020-11748]

Download as PDF 34530 Federal Register / Vol. 85, No. 109 / Friday, June 5, 2020 / Rules and Regulations (S–71) In accordance with section 823 of the National Defense Authorization Act for Fiscal Year 2020 (Pub. L. 116– 92), the head of the procuring activity is the approval authority for a proposed sole-source 8(a) contract exceeding $100 million. This authority may only be delegated to an officer or employee who— (1) If a member of the armed forces, is serving in a rank above brigadier general or rear admiral (lower half); or (2) If a civilian, is serving in a position with a grade under the General Schedule (or any other schedule for civilian officers or employees) that is comparable to or higher than the grade of major general or rear admiral. List of Subjects in 48 CFR Part 208 Government procurement. Jennifer Lee Hawes, Regulatory Control Officer, Defense Acquisition Regulations System. PART 219—SMALL BUSINESS PROGRAMS Therefore, 48 CFR part 208 is amended as follows: 5. Amend section 219.808–1 by adding paragraph (a) to read as follows: PART 208—REQUIRED SOURCES OF SUPPLIES AND SERVICES 219.808–1 ■ ■ Sole source. * * * * * (a) In lieu of the threshold at FAR 19.808–1(a), the SBA may not accept for negotiation a DoD sole-source 8(a) contract exceeding $100 million unless DoD has completed a justification in accordance with FAR 6.303 and 206.303–1(b). 1. The authority citation for 48 CFR part 208 continues to read as follows: Authority: 41 U.S.C. 1303 and 48 CFR chapter 1. 2. Revise section 208.002 to read as follows: ■ 208.002 Priorities for use of mandatory Government sources. (a)(1) Supplies. (i) See the guidance at PGI 208.002(a)(1)(i) to obtain information on available items in DoD’s property inventories. (v) See subpart 208.70, Coordinated Acquisition, and subpart 208.74, Enterprise Software Agreements. [FR Doc. 2020–11750 Filed 6–4–20; 8:45 am] BILLING CODE 5001–06–P DEPARTMENT OF DEFENSE Defense Acquisition Regulations System [FR Doc. 2020–11752 Filed 6–4–20; 8:45 am] BILLING CODE 5001–06–P 48 CFR Part 208 [Docket DARS–2020–0001] DEPARTMENT OF DEFENSE Defense Federal Acquisition Regulation Supplement: Technical Amendments Defense Acquisition Regulations System Defense Acquisition Regulations System, Department of Defense (DoD). ACTION: Final rule. 48 CFR Parts 210, 212, 215, and 234 DoD is making needed technical amendments to update the Defense Federal Acquisition Regulation Supplement (DFARS). DATES: Effective June 5, 2020. FOR FURTHER INFORMATION CONTACT: Ms. Jennifer L. Hawes, Defense Acquisition Regulations System, OUSD(A&S)DPC(DARS), Room 3B941, 3060 Defense Pentagon, Washington, DC 20301–3060. Telephone 571–372–6115; facsimile 571–372–6094. SUPPLEMENTARY INFORMATION: This final rule amends the DFARS as follows. Defense Federal Acquisition Regulation Supplement: Market Research and Consideration of Value for the Determination of Price (DFARS Case 2019–D027) AGENCY: SUMMARY: lotter on DSK9F5VC42PROD with RULES Section 208.002 heading is corrected to align with the Federal Acquisition Regulation naming convention for this section and to add new paragraphs (a)(1) introductory text and (a)(1)(i) to provide a notice to contracting officers to see DFARS Procedures, Guidance, and Information 208.002(a)(1)(i) to obtain information on available items in DoD’s property inventories. In paragraph (a)(1)(v), two references to ‘‘Subpart’’ are changed to ‘‘subpart’’. VerDate Sep<11>2014 16:46 Jun 04, 2020 Jkt 250001 [Docket DARS–2019–0050] RIN 0750–AK65 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 several sections SUMMARY: PO 00000 Frm 00038 Fmt 4700 Sfmt 4700 of the National Defense Authorization Act for Fiscal Year 2017 to address how contracting officers may require the offeror to submit relevant information to support market research for price analysis, and allow an offeror to submit information relating to the value of a commercial item to aid in the determination of the reasonableness of the price of such item. DATES: Effective June 5, 2020. FOR FURTHER INFORMATION CONTACT: Ms. Amy Williams, telephone 571–372– 6106. SUPPLEMENTARY INFORMATION: I. Background DoD published a proposed rule in the Federal Register at 84 FR 50812 on September 26, 2019, to implement sections 871 and 872 of the National Defense Authorization Act for Fiscal Year 2017 (Pub. L. 114–328). Section 871 modifies 10 U.S.C. 2377, Preference for acquisition of commercial items, to state that, to the extent necessary to support market research for determination of the reasonableness of the price of commercial items, the contracting officer shall use the information submitted under 10 U.S.C. 2379(d) in the case of major weapon systems acquired as commercial items; and in the case of other items, the contracting officer may require the offeror to submit relevant information. Section 872 modifies 10 U.S.C. 2379, Requirement for determination by Secretary of Defense and notification to Congress before procurement of major weapon systems as commercial items, to allow an offeror to submit information or analysis relating to the value of a commercial item. One respondent submitted public comments in response to the proposed rule. II. Discussion and Analysis DoD reviewed the public comments in the development of the final rule. A discussion of the comments and the changes made to the rule as a result of those comments are provided as follows: A. Summary of Significant Changes The final rule removes the discussion of value analysis at DFARS 234.7002(d)(5) and the associated definition of ‘‘value analysis’’ at DFARS 234.7001 from the proposed rule. B. Analysis of Public Comments Comment: The respondent supports the proposed rule, with a few exceptions. The respondent stated that in the proposed definition of ‘‘value analysis’’ at DFARS 234.7001, ‘‘cost’’ E:\FR\FM\05JNR1.SGM 05JNR1 Federal Register / Vol. 85, No. 109 / Friday, June 5, 2020 / Rules and Regulations should be replaced with ‘‘price.’’ According to the respondent, this is consistent with the Contract Pricing Reference Guide, which states, ‘‘A value analysis estimate results from a specialized analysis of the function of a product and its related price.’’ In addition, the respondent recommended that the word ‘‘legitimate’’ should be removed from the proposed DFARS 234.7002(d)(5), because ‘‘legitimate’’ is a subjective term that cannot be measured. According to the respondent, the policy should leave the determination of value to the discretion of the contracting officer. Response: The final rule deletes the discussion of the use of value analysis and the associated definition. This discussion and definition are not necessary for implementation of the statute, which provides that an offeror may submit information or analysis relating to the value of a commercial item to aid in the determination of the reasonableness of the price of such item and that the contracting officer may consider such information or analysis in addition to other information submitted. The final rule still provides a reference to guidance at DFARS Procedures Guidance and Information 234.7003(d)(5), which in turn references to the Department of Defense Guidebook for Acquiring Commercial Items, Part B, Commercial Item Pricing—the more current guidebook. lotter on DSK9F5VC42PROD with RULES III. Applicability to Contracts at or Below the Simplified Acquisition Threshold and for Commercial Items, Including Commercially Available Offthe-Shelf Items This rule does not propose to add or modify any provisions, clauses, or the prescriptions for any 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. VerDate Sep<11>2014 16:46 Jun 04, 2020 Jkt 250001 V. Executive Order 13771 This rule is not subject to E.O. 13771, because this rule is not significant regulatory action under E.O. 12866. VI. Regulatory Flexibility Act DoD does not expect this final rule to have a significant economic impact on a substantial number of small entities within the meaning of the Regulatory Flexibility Act, 5 U.S.C. 601, et seq. However, a final regulatory flexibility analysis has been prepared and is summarized as follows: This final rule is issued in order to implement sections 871 and 872 of the National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2017 (Pub. L. 114–328). The objective of this rule is to address the use of market research and consideration of value to support the determination of price reasonableness when acquiring commercial items. The legal basis of the rule is sections 871 and 872 of the NDAA for FY 2017. There were no public comments in response to the initial regulatory flexibility analysis. Based on data from the Federal Procurement Data System, DoD awarded 38,000 new commercial contracts to 16,429 small entities in FY 2018. There are an additional unknown number of small entities that submitted offers and did not receive awards (estimated at several thousand). This rule does not impose any new reporting, recordkeeping, or other compliance requirements on small entities. DFARS 252.215–7010, Requirements for Certified Cost or Pricing Data, and Data Other Than Certified Cost or Pricing Data, already requires offerors to provide information necessary to determine that the price is fair and reasonable. Offerors are allowed, but not required, to submit information or analysis relating to the value of a commercial item for consideration by the contracting officer in determining price reasonableness. DoD did not identify any significant alternatives that would minimize or reduce the significant economic impact, because there is no significant impact on small entities. VII. Paperwork Reduction Act The rule does not contain any new 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) or impact any existing information collection requirements. PO 00000 Frm 00039 Fmt 4700 Sfmt 4700 34531 List of Subjects in 48 CFR Parts 210, 212, 215, and 234 Government procurement. Jennifer Lee Hawes, Regulatory Control Officer, Defense Acquisition Regulations System. Therefore, 48 CFR parts 210, 212, 215, and 234 are amended as follows: ■ 1. The authority citation for 48 CFR parts 210, 212, 215, and 234 continues to read as follows: Authority: 41 U.S.C. 1303 and 48 CFR chapter 1. PART 210—MARKET RESEARCH 2. Amend section 210.001 by— a. In paragraph (a) introductory text removing ‘‘, agencies shall’’; ■ b. Redesignating paragraphs (a)(i) and (ii) as paragraphs (a)(i)(A) and (B), respectively; ■ c. In the newly redesignated paragraph (a)(i)(A) removing ‘‘Conduct’’ and adding ‘‘Agencies shall conduct’’ in its place; ■ d. In the newly redesignated paragraph (a)(i)(B) removing the period and adding ‘‘; and’’ in its place; and ■ e. Adding a new paragraph (a)(ii). The addition reads as follows: ■ ■ 210.001 Policy. * * * * * (a) * * * (ii) Contracting officers shall use market research, where appropriate, to inform price reasonableness determinations (see 212.209 and 234.7002). * * * * * PART 212—ACQUISITION OF COMMERCIAL ITEMS 3. Amend section 212.209 by revising paragraph (a) to read as follows: ■ 212.209 Determination of price reasonableness. (a) In accordance with 10 U.S.C. 2377(d), agencies shall conduct or obtain market research to support the determination of the reasonableness of price for commercial items contained in any bid or offer submitted in response to an agency solicitation. To the extent necessary to support such market research, the contracting officer— (1) In the case of major weapon systems items acquired as commercial items in accordance with subpart 234.70, shall use information submitted under 234.7002(d); and (2) In the case of other items, may require the offeror to submit other relevant information. * * * * * E:\FR\FM\05JNR1.SGM 05JNR1 34532 Federal Register / Vol. 85, No. 109 / Friday, June 5, 2020 / Rules and Regulations ACTION: PART 215—CONTRACTING BY NEGOTIATION 215.403–3 Requiring data other than certified cost or pricing data. * * * * * (c) Commercial items. For determinations of price reasonableness of major weapon systems acquired as commercial items, see 234.7002(d). PART 234—MAJOR SYSTEM ACQUISITION 5. Revise section 234.7001 to read as follows: ■ Definition. As used in this subpart— Major weapon system means a weapon system acquired pursuant to a major defense acquisition program. ■ 6. Amend section 234.7002 by revising paragraph (d) introductory text and adding paragraph (d)(5) to read as follows: 234.7002 Policy. * * * * * (d) * * * See 212.209(a) for requirements of 10 U.S.C. 2377 with regard to market research. * * * * * (5) An offeror may submit information or analysis relating to the value of a commercial item to aid in the determination of the reasonableness of the price of such item. A contracting officer may consider such information or analysis in addition to the information submitted pursuant to paragraphs (d)(1) and (2) of this section. For additional guidance see PGI 234.7002(d)(5). [FR Doc. 2020–11748 Filed 6–4–20; 8:45 am] BILLING CODE 5001–06–P DEPARTMENT OF DEFENSE Defense Acquisition Regulations System 48 CFR Part 215 [Docket DARS–2020–0015] lotter on DSK9F5VC42PROD with RULES RIN 0750–AK91 Defense Federal Acquisition Regulation Supplement: Repeal of Annual Reporting Requirements to Congressional Defense Committees (DFARS Case 2020–D004) Defense Acquisition Regulations System, Department of Defense (DoD). AGENCY: VerDate Sep<11>2014 16:46 Jun 04, 2020 Jkt 250001 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 2018. DATES: Effective June 5, 2020. FOR FURTHER INFORMATION CONTACT: Ms. Kimberly R. Ziegler, telephone 571– 372–6095. SUPPLEMENTARY INFORMATION: SUMMARY: 4. Amend section 215.403–3 by adding paragraph (c) to read as follows: ■ 234.7001 Final rule. I. Background DoD is amending the DFARS to implement section 1051 of the National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2018 (Pub. L. 115–91). Section 1051 repealed numerous DoD reporting requirements to Congress, to include the annual reporting requirements for commercial items and exceptional case exceptions and waivers under section 817 of the NDAA for FY 2003 (Pub. L. 107–314). The section 817 reporting requirements and guidance regarding exceptions and waivers to cost or pricing data requirements were implemented at DFARS 215.403–3(c). Pursuant to section 1051, this rule removes the reporting requirements and guidance. II. Applicability to Contracts at or Below the Simplified Acquisition Threshold and for Commercial Items, Including Commercially Available Offthe-Shelf Items This rule does not create or revise any solicitation provisions or contract clauses. This rule removes rescinded reporting requirements for exceptions and waivers of cost or pricing data to congressional defense committees. 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 Office of Federal Procurement Policy statute (codified at title 41 of the United States Code). Specifically, 41 U.S.C. 1707(a)(1) 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 the rule merely PO 00000 Frm 00040 Fmt 4700 Sfmt 4700 removes two statutory reporting requirements that have been rescinded. IV. Executive Orders 12866 and 13563 Executive Orders (E.O.) 12866 and E.O. 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. Executive Order 13771 This rule is not subject to E.O. 13771, because this rule is not a significant regulatory action under E.O. 12866. VI. Regulatory Flexibility Act Because a notice of proposed rulemaking and an opportunity for public comment are not required to be given for this rule under 41 U.S.C. 1707(a)(1) (see section III. of this preamble), the analytical requirement of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) are not applicable. Accordingly, no regulatory flexibility analysis is required, and none has been prepared. 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). List of Subjects in 48 CFR Part 215 Government procurement. Jennifer Lee Hawes, Regulatory Control Officer, Defense Acquisition Regulations System. Therefore, 48 CFR part 215 is amended as follows: PART 215—CONTRACTING BY NEGOTIATION 1. The authority for 48 CFR part 215 continues to read as follows: ■ Authority: 41 U.S.C. 1303 and 48 CFR chapter 1. ■ 2. Amend section 215.403–1 by— E:\FR\FM\05JNR1.SGM 05JNR1

Agencies

[Federal Register Volume 85, Number 109 (Friday, June 5, 2020)]
[Rules and Regulations]
[Pages 34530-34532]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-11748]


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

DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Parts 210, 212, 215, and 234

[Docket DARS-2019-0050]
RIN 0750-AK65


Defense Federal Acquisition Regulation Supplement: Market 
Research and Consideration of Value for the Determination of Price 
(DFARS Case 2019-D027)

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 several sections 
of the National Defense Authorization Act for Fiscal Year 2017 to 
address how contracting officers may require the offeror to submit 
relevant information to support market research for price analysis, and 
allow an offeror to submit information relating to the value of a 
commercial item to aid in the determination of the reasonableness of 
the price of such item.

DATES: Effective June 5, 2020.

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

SUPPLEMENTARY INFORMATION: 

I. Background

    DoD published a proposed rule in the Federal Register at 84 FR 
50812 on September 26, 2019, to implement sections 871 and 872 of the 
National Defense Authorization Act for Fiscal Year 2017 (Pub. L. 114-
328). Section 871 modifies 10 U.S.C. 2377, Preference for acquisition 
of commercial items, to state that, to the extent necessary to support 
market research for determination of the reasonableness of the price of 
commercial items, the contracting officer shall use the information 
submitted under 10 U.S.C. 2379(d) in the case of major weapon systems 
acquired as commercial items; and in the case of other items, the 
contracting officer may require the offeror to submit relevant 
information. Section 872 modifies 10 U.S.C. 2379, Requirement for 
determination by Secretary of Defense and notification to Congress 
before procurement of major weapon systems as commercial items, to 
allow an offeror to submit information or analysis relating to the 
value of a commercial item. One respondent submitted public comments in 
response to the proposed rule.

II. Discussion and Analysis

    DoD reviewed the public comments in the development of the final 
rule. A discussion of the comments and the changes made to the rule as 
a result of those comments are provided as follows:

A. Summary of Significant Changes

    The final rule removes the discussion of value analysis at DFARS 
234.7002(d)(5) and the associated definition of ``value analysis'' at 
DFARS 234.7001 from the proposed rule.

B. Analysis of Public Comments

    Comment: The respondent supports the proposed rule, with a few 
exceptions. The respondent stated that in the proposed definition of 
``value analysis'' at DFARS 234.7001, ``cost''

[[Page 34531]]

should be replaced with ``price.'' According to the respondent, this is 
consistent with the Contract Pricing Reference Guide, which states, ``A 
value analysis estimate results from a specialized analysis of the 
function of a product and its related price.''
    In addition, the respondent recommended that the word 
``legitimate'' should be removed from the proposed DFARS 
234.7002(d)(5), because ``legitimate'' is a subjective term that cannot 
be measured. According to the respondent, the policy should leave the 
determination of value to the discretion of the contracting officer.
    Response: The final rule deletes the discussion of the use of value 
analysis and the associated definition. This discussion and definition 
are not necessary for implementation of the statute, which provides 
that an offeror may submit information or analysis relating to the 
value of a commercial item to aid in the determination of the 
reasonableness of the price of such item and that the contracting 
officer may consider such information or analysis in addition to other 
information submitted. The final rule still provides a reference to 
guidance at DFARS Procedures Guidance and Information 234.7003(d)(5), 
which in turn references to the Department of Defense Guidebook for 
Acquiring Commercial Items, Part B, Commercial Item Pricing--the more 
current guidebook.

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

    This rule does not propose to add or modify any provisions, 
clauses, or the prescriptions for any 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. Executive Order 13771

    This rule is not subject to E.O. 13771, because this rule is not 
significant regulatory action under E.O. 12866.

VI. Regulatory Flexibility Act

    DoD does not expect this final rule to have a significant economic 
impact on a substantial number of small entities within the meaning of 
the Regulatory Flexibility Act, 5 U.S.C. 601, et seq. However, a final 
regulatory flexibility analysis has been prepared and is summarized as 
follows:
    This final rule is issued in order to implement sections 871 and 
872 of the National Defense Authorization Act (NDAA) for Fiscal Year 
(FY) 2017 (Pub. L. 114-328). The objective of this rule is to address 
the use of market research and consideration of value to support the 
determination of price reasonableness when acquiring commercial items. 
The legal basis of the rule is sections 871 and 872 of the NDAA for FY 
2017.
    There were no public comments in response to the initial regulatory 
flexibility analysis.
    Based on data from the Federal Procurement Data System, DoD awarded 
38,000 new commercial contracts to 16,429 small entities in FY 2018. 
There are an additional unknown number of small entities that submitted 
offers and did not receive awards (estimated at several thousand).
    This rule does not impose any new reporting, recordkeeping, or 
other compliance requirements on small entities. DFARS 252.215-7010, 
Requirements for Certified Cost or Pricing Data, and Data Other Than 
Certified Cost or Pricing Data, already requires offerors to provide 
information necessary to determine that the price is fair and 
reasonable. Offerors are allowed, but not required, to submit 
information or analysis relating to the value of a commercial item for 
consideration by the contracting officer in determining price 
reasonableness.
    DoD did not identify any significant alternatives that would 
minimize or reduce the significant economic impact, because there is no 
significant impact on small entities.

VII. Paperwork Reduction Act

    The rule does not contain any new 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) or 
impact any existing information collection requirements.

List of Subjects in 48 CFR Parts 210, 212, 215, and 234

    Government procurement.

Jennifer Lee Hawes,
Regulatory Control Officer, Defense Acquisition Regulations System.

    Therefore, 48 CFR parts 210, 212, 215, and 234 are amended as 
follows:

0
1. The authority citation for 48 CFR parts 210, 212, 215, and 234 
continues to read as follows:

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

PART 210--MARKET RESEARCH

0
2. Amend section 210.001 by--
0
a. In paragraph (a) introductory text removing ``, agencies shall'';
0
b. Redesignating paragraphs (a)(i) and (ii) as paragraphs (a)(i)(A) and 
(B), respectively;
0
c. In the newly redesignated paragraph (a)(i)(A) removing ``Conduct'' 
and adding ``Agencies shall conduct'' in its place;
0
d. In the newly redesignated paragraph (a)(i)(B) removing the period 
and adding ``; and'' in its place; and
0
e. Adding a new paragraph (a)(ii).
    The addition reads as follows:


210.001  Policy.

* * * * *
    (a) * * *
    (ii) Contracting officers shall use market research, where 
appropriate, to inform price reasonableness determinations (see 212.209 
and 234.7002).
* * * * *

PART 212--ACQUISITION OF COMMERCIAL ITEMS

0
3. Amend section 212.209 by revising paragraph (a) to read as follows:


212.209  Determination of price reasonableness.

    (a) In accordance with 10 U.S.C. 2377(d), agencies shall conduct or 
obtain market research to support the determination of the 
reasonableness of price for commercial items contained in any bid or 
offer submitted in response to an agency solicitation. To the extent 
necessary to support such market research, the contracting officer--
    (1) In the case of major weapon systems items acquired as 
commercial items in accordance with subpart 234.70, shall use 
information submitted under 234.7002(d); and
    (2) In the case of other items, may require the offeror to submit 
other relevant information.
* * * * *

[[Page 34532]]

PART 215--CONTRACTING BY NEGOTIATION

0
4. Amend section 215.403-3 by adding paragraph (c) to read as follows:


215.403-3  Requiring data other than certified cost or pricing data.

* * * * *
    (c) Commercial items. For determinations of price reasonableness of 
major weapon systems acquired as commercial items, see 234.7002(d).

PART 234--MAJOR SYSTEM ACQUISITION

0
5. Revise section 234.7001 to read as follows:


234.7001  Definition.

    As used in this subpart--
    Major weapon system means a weapon system acquired pursuant to a 
major defense acquisition program.

0
6. Amend section 234.7002 by revising paragraph (d) introductory text 
and adding paragraph (d)(5) to read as follows:


234.7002  Policy.

* * * * *
    (d) * * * See 212.209(a) for requirements of 10 U.S.C. 2377 with 
regard to market research.
* * * * *
    (5) An offeror may submit information or analysis relating to the 
value of a commercial item to aid in the determination of the 
reasonableness of the price of such item. A contracting officer may 
consider such information or analysis in addition to the information 
submitted pursuant to paragraphs (d)(1) and (2) of this section. For 
additional guidance see PGI 234.7002(d)(5).

[FR Doc. 2020-11748 Filed 6-4-20; 8:45 am]
 BILLING CODE 5001-06-P