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