Defense Federal Acquisition Regulation Supplement: Modification of Prize Authority for Advanced Technology Achievements (DFARS Case 2022-D014), 79000-79001 [2024-21094]
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Federal Register / Vol. 89, No. 187 / Thursday, September 26, 2024 / Rules and Regulations
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations
System
48 CFR Part 206
[Docket DARS–2024–0014]
RIN 0750–AL65
Defense Federal Acquisition
Regulation Supplement: Modification
of Prize Authority for Advanced
Technology Achievements (DFARS
Case 2022–D014)
Defense Acquisition
Regulations System, Department of
Defense (DoD).
AGENCY:
ACTION:
Final rule.
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 2022 that provides
procedures and approval and reporting
requirements for contracts awarded as
prizes for advanced technology
achievements.
SUMMARY:
DATES:
Effective October 1, 2024.
Mr.
Jon Snyder, telephone 703–945–5341.
FOR FURTHER INFORMATION CONTACT:
SUPPLEMENTARY INFORMATION:
khammond on DSKJM1Z7X2PROD with RULES2
I. Background
DoD published a proposed rule in the
Federal Register at 89 FR 31680 on
April 25, 2024, to implement section
822 of the National Defense
Authorization Act (NDAA) for Fiscal
Year (FY) 2022 (Pub. L. 117–81), which
amends 10 U.S.C. 4025. Section 822
provides the authority to carry out
advanced technology prize programs to
award contracts to recognize
outstanding achievements in basic,
advanced, and applied research;
technology development; and prototype
development. Section 822 specifies the
award of a contract as a prize is a
competitive procedure if the solicitation
is widely advertised. Section 822 also
requires approval of such awards that
exceed $10,000 and congressional
reporting for contracts that exceed $10
million. There were no public
comments submitted in response to the
proposed rule. There are no changes
made to the final rule.
VerDate Sep<11>2014
17:15 Sep 25, 2024
Jkt 262001
II. Applicability to Contracts At or
Below the Simplified Acquisition
Threshold (SAT), for Commercial
Products (Including Commercially
Available Off-the-Shelf (COTS) Items),
and for Commercial Services
This final rule does not create any
new solicitation provisions or contract
clauses. It does not impact any existing
solicitation provisions or contract
clauses or their applicability to
contracts valued at or below the
simplified acquisition threshold, for
commercial products including COTS
items, or for commercial services.
III. Expected Impact of the Rule
Prior to the enactment of the NDAA
for FY 2022, 10 U.S.C. 4025 (formerly 10
U.S.C. 2374a) did not provide for the
award of contracts as prizes for
outstanding achievements in basic,
advanced, and applied research;
technology development; and prototype
development. This final rule
implements the authority to award
contracts as prizes under certain
conditions.
This final rule may increase
participation in prize competitions and
decrease the lead time to deliver to the
warfighter achievements in basic,
advanced, and applied research;
technology development; and prototype
development. This final rule may help
to expand the defense industrial base by
providing a way for entities that are new
to DoD procurement to obtain DoD
contracts. It may also streamline the
competitive process, which could
reduce Government administrative costs
associated with competitive negotiated
acquisitions. For this reason, the
difference in the cost of managing a
contract instead of another type of prize
is expected to be negligible.
Data provided from the Office of the
Under Secretary of Defense for Research
and Engineering indicates there were a
total of 809 cash prizes awarded from
FY 2021 to FY 2023, or approximately
270 per year, worth a total of about $3.5
million annually. DoD estimates 20
percent of these 270 historical cash
prize awards, or 54 cash prize awards
worth a total of approximately $700,000,
would be converted to contracts.
Therefore, DoD estimates that
approximately 54 entities per year
would be awarded contracts or a
combination of contracts, other
agreements (e.g., grants, cooperative
agreements, other transaction
agreements), and cash prizes as a result
of the changes in this final rule.
IV. Executive Orders 12866 and 13563
Executive Orders (E.O.s) 12866 and
13563 direct agencies to assess all costs
PO 00000
Frm 00012
Fmt 4701
Sfmt 4700
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, as amended.
V. Congressional Review Act
As required by the Congressional
Review Act (5 U.S.C. 801–808) before an
interim or final rule takes effect, DoD
will submit a copy of the interim or
final rule with the form, Submission of
Federal Rules under the Congressional
Review Act, to the U.S. Senate, the U.S.
House of Representatives, and the
Comptroller General of the United
States. A major rule under the
Congressional Review Act cannot take
effect until 60 days after it is published
in the Federal Register. The Office of
Information and Regulatory Affairs has
determined that this rule is not a major
rule as defined by 5 U.S.C. 804.
VI. Regulatory Flexibility Act
A final regulatory flexibility analysis
has been prepared consistent with the
Regulatory Flexibility Act, 5 U.S.C. 601,
et seq. and is summarized as follows:
This rule is necessary to implement
section 822 of the National Defense
Authorization Act (NDAA) for Fiscal
Year (FY) 2022 (Pub. L. 117–81), which
amends 10 U.S.C. 4025, Prizes for
advanced technology achievements.
Section 822 provides advanced
technology prize programs authority to
award contracts to recognize
outstanding achievements in basic,
advanced, and applied research;
technology development; and prototype
development. Section 822 also provides
that the award of a contract as a prize
is a competitive procedure if the prize
program solicitation is widely
advertised. Section 822 also requires
approval of such awards exceeding
$10,000 and congressional reporting for
contracts exceeding $10 million. The
objective of this final rule is to
implement section 822 of the NDAA for
FY 2022.
There were no significant issues
raised by the public in response to the
initial regulatory flexibility analysis.
Data provided from the Office of the
Under Secretary of Defense for Research
and Engineering indicates there were a
E:\FR\FM\26SER2.SGM
26SER2
Federal Register / Vol. 89, No. 187 / Thursday, September 26, 2024 / Rules and Regulations
total of 809 cash prizes awarded from
FY 2021 to FY 2023, or approximately
270 per year, worth a total of about $3.5
million annually. During this three-year
period, DoD awarded a total of 636 cash
prizes to small entities, which is an
average of 212 per year. DoD estimates
20 percent of these 212 historical cash
prize awards, or 42 cash prize awards
worth a total of approximately $545,000,
would be converted to contracts.
Therefore, DoD estimates that
approximately 42 small entities per year
would be awarded contracts or a
combination of contracts, other
agreements (e.g., grants, cooperative
agreements, other transaction
agreements), and cash prizes as a result
of the changes in this final rule.
Therefore, DoD does not anticipate that
this final rule will have a significant
impact on small entities.
The rule does not impose any new
reporting, recordkeeping, or other
compliance requirements for small
entities.
There are no known alternatives that
would accomplish the stated objectives
of the applicable statute.
VII. Paperwork Reduction Act
This final 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 206
Government procurement.
1. The authority citation for 48 CFR
part 206 continues to read as follows:
■
Authority: 41 U.S.C. 1303 and 48 CFR
chapter 1.
2. Amend section 206.102–70 by—
a. Designating the text as paragraph
(a); and
■ b. Adding paragraph (b).
The addition reads as follows:
■
■
khammond on DSKJM1Z7X2PROD with RULES2
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations
System
48 CFR Parts 204 and 217
[Docket DARS–2024–0030]
RIN 0750–AL70
Defense Federal Acquisition
Regulation Supplement: Data
Universal Numbering System to
Unique Entity Identifier Transition
(DFARS Case 2022–D023)
Defense Acquisition
Regulations System, Department of
Defense (DoD).
AGENCY:
ACTION:
Final rule.
DoD is issuing a final rule
amending the Defense Federal
Acquisition Regulation Supplement
(DFARS) to align the DFARS with the
Federal Acquisition Regulation (FAR)
transition from the Data Universal
Numbering System to the unique entity
identifier in the System for Award
Management.
SUMMARY:
Effective October 1, 2024.
Tonya DeSaussure, telephone 202–805–
1388.
SUPPLEMENTARY INFORMATION:
I. Background
PART 206—COMPETITION
REQUIREMENTS
Other competitive procedures.
(a) * * *
(b) The award of a contract as a prize
resulting from a competitive selection of
prize recipients for advanced
technology achievements is a
competitive procedure (10 U.S.C.
4025(f)), when the solicitation is widely
17:15 Sep 25, 2024
BILLING CODE 6001–FR–P
FOR FURTHER INFORMATION CONTACT:
Therefore, the Defense Acquisition
Regulations System amends 48 CFR part
206 as follows:
VerDate Sep<11>2014
[FR Doc. 2024–21094 Filed 9–25–24; 8:45 am]
DATES:
Jennifer D. Johnson,
Editor/Publisher, Defense Acquisition
Regulations System.
206.102–70
advertised, including through the
Governmentwide point of entry (see
FAR part 5). See PGI 206.102–70 for
approval requirements.
Jkt 262001
DoD is issuing a final rule amending
the DFARS to transition from the use of
the Data Universal Numbering System
(DUNS) number to the unique entity
identifier as a means of identifying
Federal contractors. The FAR published
a final rule implementing the change
from the DUNS number to the unique
entity identifier in the Federal Register
on November 18, 2015 (80 FR 72035).
As a supplement to the FAR, the DFARS
is required to reflect the same
terminology. The unique entity
identifier is the authoritative identifier
at the Federal level. This transition
allows the Government to streamline the
entity identification and validation
process, making it easier and less
burdensome on entities to do business
with the Federal Government.
PO 00000
Frm 00013
Fmt 4701
Sfmt 4700
79001
II. 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,
Publication of Proposed Regulations.
Subsection (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 there is no significant
cost or administrative impact on
contractors or offerors. The FAR already
requires contractors and offerors to use
a unique entity identifier; this final rule
merely updates the terminology used in
the DFARS.
III. Applicability to Contracts At or
Below the Simplified Acquisition
Threshold (SAT), for Commercial
Products (Including Commercially
Available Off-the-Shelf (COTS) Items),
and for Commercial Services
This final rule does not create any
new solicitation provisions or contract
clauses. It does not impact any existing
solicitation provisions or contract
clauses or their applicability to
contracts valued at or below the
simplified acquisition threshold, for
commercial products including COTS
items, or for commercial services.
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, as amended.
V. Congressional Review Act
As required by the Congressional
Review Act (5 U.S.C. 801–808) before an
interim or final rule takes effect, DoD
E:\FR\FM\26SER2.SGM
26SER2
]]>Agencies
[Federal Register Volume 89, Number 187 (Thursday, September 26, 2024)]
[Rules and Regulations]
[Pages 79000-79001]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-21094]
[[Page 79000]]
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System
48 CFR Part 206
[Docket DARS-2024-0014]
RIN 0750-AL65
Defense Federal Acquisition Regulation Supplement: Modification
of Prize Authority for Advanced Technology Achievements (DFARS Case
2022-D014)
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 2022 that provides
procedures and approval and reporting requirements for contracts
awarded as prizes for advanced technology achievements.
DATES: Effective October 1, 2024.
FOR FURTHER INFORMATION CONTACT: Mr. Jon Snyder, telephone 703-945-
5341.
SUPPLEMENTARY INFORMATION:
I. Background
DoD published a proposed rule in the Federal Register at 89 FR
31680 on April 25, 2024, to implement section 822 of the National
Defense Authorization Act (NDAA) for Fiscal Year (FY) 2022 (Pub. L.
117-81), which amends 10 U.S.C. 4025. Section 822 provides the
authority to carry out advanced technology prize programs to award
contracts to recognize outstanding achievements in basic, advanced, and
applied research; technology development; and prototype development.
Section 822 specifies the award of a contract as a prize is a
competitive procedure if the solicitation is widely advertised. Section
822 also requires approval of such awards that exceed $10,000 and
congressional reporting for contracts that exceed $10 million. There
were no public comments submitted in response to the proposed rule.
There are no changes made to the final rule.
II. Applicability to Contracts At or Below the Simplified Acquisition
Threshold (SAT), for Commercial Products (Including Commercially
Available Off-the-Shelf (COTS) Items), and for Commercial Services
This final rule does not create any new solicitation provisions or
contract clauses. It does not impact any existing solicitation
provisions or contract clauses or their applicability to contracts
valued at or below the simplified acquisition threshold, for commercial
products including COTS items, or for commercial services.
III. Expected Impact of the Rule
Prior to the enactment of the NDAA for FY 2022, 10 U.S.C. 4025
(formerly 10 U.S.C. 2374a) did not provide for the award of contracts
as prizes for outstanding achievements in basic, advanced, and applied
research; technology development; and prototype development. This final
rule implements the authority to award contracts as prizes under
certain conditions.
This final rule may increase participation in prize competitions
and decrease the lead time to deliver to the warfighter achievements in
basic, advanced, and applied research; technology development; and
prototype development. This final rule may help to expand the defense
industrial base by providing a way for entities that are new to DoD
procurement to obtain DoD contracts. It may also streamline the
competitive process, which could reduce Government administrative costs
associated with competitive negotiated acquisitions. For this reason,
the difference in the cost of managing a contract instead of another
type of prize is expected to be negligible.
Data provided from the Office of the Under Secretary of Defense for
Research and Engineering indicates there were a total of 809 cash
prizes awarded from FY 2021 to FY 2023, or approximately 270 per year,
worth a total of about $3.5 million annually. DoD estimates 20 percent
of these 270 historical cash prize awards, or 54 cash prize awards
worth a total of approximately $700,000, would be converted to
contracts. Therefore, DoD estimates that approximately 54 entities per
year would be awarded contracts or a combination of contracts, other
agreements (e.g., grants, cooperative agreements, other transaction
agreements), and cash prizes as a result of the changes in this final
rule.
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, as amended.
V. Congressional Review Act
As required by the Congressional Review Act (5 U.S.C. 801-808)
before an interim or final rule takes effect, DoD will submit a copy of
the interim or final rule with the form, Submission of Federal Rules
under the Congressional Review Act, to the U.S. Senate, the U.S. House
of Representatives, and the Comptroller General of the United States. A
major rule under the Congressional Review Act cannot take effect until
60 days after it is published in the Federal Register. The Office of
Information and Regulatory Affairs has determined that this rule is not
a major rule as defined by 5 U.S.C. 804.
VI. Regulatory Flexibility Act
A final regulatory flexibility analysis has been prepared
consistent with the Regulatory Flexibility Act, 5 U.S.C. 601, et seq.
and is summarized as follows:
This rule is necessary to implement section 822 of the National
Defense Authorization Act (NDAA) for Fiscal Year (FY) 2022 (Pub. L.
117-81), which amends 10 U.S.C. 4025, Prizes for advanced technology
achievements. Section 822 provides advanced technology prize programs
authority to award contracts to recognize outstanding achievements in
basic, advanced, and applied research; technology development; and
prototype development. Section 822 also provides that the award of a
contract as a prize is a competitive procedure if the prize program
solicitation is widely advertised. Section 822 also requires approval
of such awards exceeding $10,000 and congressional reporting for
contracts exceeding $10 million. The objective of this final rule is to
implement section 822 of the NDAA for FY 2022.
There were no significant issues raised by the public in response
to the initial regulatory flexibility analysis.
Data provided from the Office of the Under Secretary of Defense for
Research and Engineering indicates there were a
[[Page 79001]]
total of 809 cash prizes awarded from FY 2021 to FY 2023, or
approximately 270 per year, worth a total of about $3.5 million
annually. During this three-year period, DoD awarded a total of 636
cash prizes to small entities, which is an average of 212 per year. DoD
estimates 20 percent of these 212 historical cash prize awards, or 42
cash prize awards worth a total of approximately $545,000, would be
converted to contracts. Therefore, DoD estimates that approximately 42
small entities per year would be awarded contracts or a combination of
contracts, other agreements (e.g., grants, cooperative agreements,
other transaction agreements), and cash prizes as a result of the
changes in this final rule. Therefore, DoD does not anticipate that
this final rule will have a significant impact on small entities.
The rule does not impose any new reporting, recordkeeping, or other
compliance requirements for small entities.
There are no known alternatives that would accomplish the stated
objectives of the applicable statute.
VII. Paperwork Reduction Act
This final 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 206
Government procurement.
Jennifer D. Johnson,
Editor/Publisher, Defense Acquisition Regulations System.
Therefore, the Defense Acquisition Regulations System amends 48 CFR
part 206 as follows:
PART 206--COMPETITION REQUIREMENTS
0
1. The authority citation for 48 CFR part 206 continues to read as
follows:
Authority: 41 U.S.C. 1303 and 48 CFR chapter 1.
0
2. Amend section 206.102-70 by--
0
a. Designating the text as paragraph (a); and
0
b. Adding paragraph (b).
The addition reads as follows:
206.102-70 Other competitive procedures.
(a) * * *
(b) The award of a contract as a prize resulting from a competitive
selection of prize recipients for advanced technology achievements is a
competitive procedure (10 U.S.C. 4025(f)), when the solicitation is
widely advertised, including through the Governmentwide point of entry
(see FAR part 5). See PGI 206.102-70 for approval requirements.
[FR Doc. 2024-21094 Filed 9-25-24; 8:45 am]
BILLING CODE 6001-FR-P
