80 FR 51751 - Defense Federal Acquisition Regulation Supplement: Use of Military Construction Funds (DFARS Case 2015-D006)

DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System

Federal Register Volume 80, Issue 165 (August 26, 2015)

Page Range		51751-51752
FR Document		2015-20872

DoD has adopted as final, without change, an interim rule amending the Defense Federal Acquisition Regulation Supplement (DFARS) to implement a section of the Military Construction and Veterans Affairs and Related Agencies Appropriations Act, 2015, to require offerors bidding on DoD military construction contracts to provide opportunity for competition to American steel producers, fabricators, and manufacturers; and restrict use of military construction funds in certain foreign countries, including countries that border the Arabian Gulf.

Federal Register, Volume 80 Issue 165 (Wednesday, August 26, 2015)

[Federal Register Volume 80, Number 165 (Wednesday, August 26, 2015)]
[Rules and Regulations]
[Pages 51751-51752]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-20872]


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

DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Parts 225 and 236

[Docket No. DARS-2015-0019]
RIN 0750-AI52


Defense Federal Acquisition Regulation Supplement: Use of 
Military Construction Funds (DFARS Case 2015-D006)

AGENCY: Defense Acquisition Regulations System, Department of Defense 
(DoD).

ACTION: Final rule.

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

SUMMARY: DoD has adopted as final, without change, an interim rule

[[Page 51752]]

amending the Defense Federal Acquisition Regulation Supplement (DFARS) 
to implement a section of the Military Construction and Veterans 
Affairs and Related Agencies Appropriations Act, 2015, to require 
offerors bidding on DoD military construction contracts to provide 
opportunity for competition to American steel producers, fabricators, 
and manufacturers; and restrict use of military construction funds in 
certain foreign countries, including countries that border the Arabian 
Gulf.

DATES: Effective August 26, 2015.

FOR FURTHER INFORMATION CONTACT: Ms. Julie Hammond, telephone 571-372-
6174.

SUPPLEMENTARY INFORMATION: 

I. Background

    DoD published an interim rule in the Federal Register at 80 FR 
15909 on March 26, 2015, to implement sections 108, 111, and 112 of the 
Military Construction and Veterans Affairs and Related Agencies 
Appropriations Act, 2015 (division I of the Consolidated and Further 
Continuing Resolution Appropriations Act, 2015, Pub. L. 113-235), 
enacted December 16, 2014.

II. Discussion and Analysis

    There were no public comments submitted in response to the interim 
rule. The interim rule has been converted to a final rule, without 
change.

III. 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.

IV. 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 require offerors bidding on DoD military 
construction contracts to provide opportunity for competition to 
American steel producers, fabricators, and manufacturers, and implement 
the preference for award only to U.S. firms when awarding certain 
military construction and architect-engineer contracts to be performed 
in countries bordering the Arabian Gulf.
    The objective of this rule is to implement sections 108, 111, and 
112 of the Military Construction and Veterans Affairs, and Related 
Agencies Appropriations Act, 2015 (division I of Pub. L. 113-235). This 
rule extends the applicability of the requirement to provide 
opportunity for competition to American steel producers, fabricators, 
and manufacturers, and revises the preference for award to U.S. firms 
of military construction contracts that have an estimated value greater 
than $1,000,000 and the restriction requiring award only to U.S. firms 
for architect-engineer contracts that have an estimated value greater 
than $500,000, to make it applicable to contracts to be performed in a 
country bordering the Arabian Gulf, rather than a country bordering the 
Arabian Sea (as required in earlier statutes).
    No comments were received from the public relative to the 
publication of the initial regulatory flexibility analysis in the 
interim rule.
    Section 108 will benefit any small business entities involved in 
producing, fabricating, or manufacturing steel products to be used in 
military construction. Sections 111 and 112 will only apply to a very 
limited number of small entities--those entities that submit offers in 
response to solicitations for military construction contracts that have 
an estimated value greater than $1,000,000 and architect-engineer 
contracts that have an estimated value greater than $500,000, when the 
contracts are to be performed in countries bordering the Arabian Gulf.
    The rule does not impose any additional reporting, recordkeeping, 
and other compliance requirements.
    No alternatives were identified that will accomplish the objectives 
of the statutes and the rule.

V. 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 225 and 236

    Government procurement.

Jennifer L. Hawes,
Editor, Defense Acquisition Regulations System.

    Accordingly, the interim rule amending 48 CFR parts 225 and 236, 
which was published at 80 FR 15909 on March 26, 2015, is adopted as a 
final rule without change.

[FR Doc. 2015-20872 Filed 8-25-15; 8:45 am]
 BILLING CODE 5001-06-P

Federal Register / Vol. 80, No. 165 / Wednesday, August 26, 2015 / Rules and Regulations 51751

since the subject matter is now List of Subjects in 48 CFR Part 217 for one or more other departments or
addressed in FAR subpart 17.7. Government procurement. agencies of the Federal Government.
II. Publication of This Final Rule for Jennifer L. Hawes, 217.770 Procedures.
Public Comment Is Not Required by Editor, Defense Acquisition Regulations Departments and agencies shall
Statute System. establish and maintain procedures for
The statute that applies to the reviewing and approving orders placed
Therefore, 48 CFR part 217 is
publication of the Federal Acquisition for supplies and services under non-
amended as follows:
Regulation is 41 U.S.C. 1707, DoD contracts, whether through direct
Publication of Proposed Regulations. PART 217—SPECIAL CONTRACTING acquisition or assisted acquisition,
Paragraph (a)(1) of the statute requires METHODS when the amount of the order exceeds
that a procurement policy, regulation, the simplified acquisition threshold.
procedure or form (including an ■ 1. The authority citation for 48 CFR These procedures shall include—
part 217 continues to read as follows: (a) Evaluating whether using a non-
amendment or modification thereof)
DoD contract for the acquisition is in the
must be published for public comment Authority: 41 U.S.C. 1303 and 48 CFR
chapter 1. best interest of DoD. Factors to be
if it has either a significant effect
considered include—
beyond the internal operating ■ 2. Add subpart 217.7 to read as (1) Satisfying customer requirements;
procedures of the agency issuing the follows: (2) Schedule;
policy, regulation, procedure or form, or (3) Cost effectiveness (taking into
has a significant cost or administrative Subpart 217.7—Interagency account discounts and fees). In order to
impact on contractors or offerors. This Acquisitions: Acquisitions by ensure awareness of the total cost of fees
final rule is not required to be published Nondefense Agencies on Behalf of the associated with use of a non-DoD
for public comment, because it deletes Department of Defense contract, follow the procedures at PGI
duplicative text and relocates text 217.703(1)(iii); and
Sec.
within the DFARS. These DFARS (4) Contract administration (including
217.700 Scope of subpart.
updates are administrative in nature and 217.701 Definitions. oversight);
therefore do not have a significant cost 217.770 Procedures. (b) Determining that the tasks to be
or administrative impact on contractors accomplished or supplies to be
or offerors. Subpart 217.7—Interagency provided are within the scope of the
Acquisitions: Acquisitions by contract to be used;
III. Executive Orders 12866 and 13563 (c) Reviewing funding to ensure that
Nondefense Agencies on Behalf of the
Executive Orders (E.O.s) 12866 and Department of Defense it is used in accordance with
13563 direct agencies to assess all costs appropriation limitations; and
and benefits of available regulatory 217.700 Scope of subpart. (d) Collecting and reporting data on
alternatives and, if regulation is This subpart— the use of assisted acquisition for
necessary, to select regulatory (a) Implements section 854 of the analysis. Follow the reporting
approaches that maximize net benefits National Defense Authorization Act for requirements in subpart 204.6.
(including potential economic, Fiscal Year 2005 (Pub. L. 108–375),
environmental, public health and safety section 801 of the National Defense Subpart 217.78 [Removed and
effects, distributive impacts, and Authorization Act for Fiscal Year 2008 Reserved]
equity). E.O. 13563 emphasizes the (Pub. L. 110–181), and section 806 of
the National Defense Authorization Act ■ 3. Remove and reserve subpart 217.78,
importance of quantifying both costs consisting of sections 217.7800,
and benefits, of reducing costs, of for Fiscal Year 2010 (Pub. L. 111–84);
and 217.7801, and 217.7802.
harmonizing rules, and of promoting
flexibility. This is not a significant (b) Prescribes policy for the [FR Doc. 2015–20871 Filed 8–25–15; 8:45 am]

regulatory action and, therefore, was not acquisition of supplies and services BILLING CODE 5001–06–P

subject to review under section 6(b) of through the use of contracts or orders
E.O. 12866, Regulatory Planning and issued by non-DoD agencies.
DEPARTMENT OF DEFENSE
Review, dated September 30, 1993. This 217.701 Definitions.
rule is not a major rule under 5 U.S.C. As used in this subpart— Defense Acquisition Regulations
804. Assisted acquisition means the type of System
IV. Regulatory Flexibility Act interagency contracting through which
acquisition officials of a non-DoD 48 CFR Parts 225 and 236
The Regulatory Flexibility Act does agency award a contract or a task or [Docket No. DARS–2015–0019]
not apply to this rule because this final delivery order for the acquisition of
rule does not constitute a significant supplies or services on behalf of DoD. RIN 0750–AI52
DFARS revision within the meaning of Direct acquisition means the type of
FAR 1.501–1, and 41 U.S.C. 1707 does interagency contracting through which Defense Federal Acquisition
not require publication for public DoD orders a supply or service from a Regulation Supplement: Use of Military
comment. Governmentwide acquisition contract Construction Funds (DFARS Case
maintained by a non-DoD agency. 2015–D006)
V. Paperwork Reduction Act
rmajette on DSK7SPTVN1PROD with RULES

Governmentwide acquisition contract AGENCY: Defense Acquisition
The rule does not contain any means a task or delivery order contract Regulations System, Department of
information collection requirements that that— Defense (DoD).
require the approval of the Office of (1) Is entered into by a non-defense ACTION: Final rule.
Management and Budget under the agency; and
Paperwork Reduction Act (44 U.S.C. (2) May be used as the contract under SUMMARY: DoD has adopted as final,
chapter 35). which property or services are procured without change, an interim rule

VerDate Sep<11>2014 12:34 Aug 25, 2015 Jkt 235001 PO 00000 Frm 00029 Fmt 4700 Sfmt 4700 E:\FR\FM\26AUR1.SGM 26AUR1

51752 Federal Register / Vol. 80, No. 165 / Wednesday, August 26, 2015 / Rules and Regulations

amending the Defense Federal construction contracts to provide List of Subjects in 48 CFR Parts 225 and
Acquisition Regulation Supplement opportunity for competition to 236
(DFARS) to implement a section of the American steel producers, fabricators, Government procurement.
Military Construction and Veterans and manufacturers, and implement the
Affairs and Related Agencies preference for award only to U.S. firms Jennifer L. Hawes,
Appropriations Act, 2015, to require when awarding certain military Editor, Defense Acquisition Regulations
offerors bidding on DoD military construction and architect-engineer System.
construction contracts to provide contracts to be performed in countries Accordingly, the interim rule
opportunity for competition to bordering the Arabian Gulf. amending 48 CFR parts 225 and 236,
American steel producers, fabricators, which was published at 80 FR 15909 on
and manufacturers; and restrict use of The objective of this rule is to
implement sections 108, 111, and 112 of March 26, 2015, is adopted as a final
military construction funds in certain rule without change.
foreign countries, including countries the Military Construction and Veterans
Affairs, and Related Agencies [FR Doc. 2015–20872 Filed 8–25–15; 8:45 am]
that border the Arabian Gulf.
DATES: Effective August 26, 2015. Appropriations Act, 2015 (division I of BILLING CODE 5001–06–P

Pub. L. 113–235). This rule extends the
FOR FURTHER INFORMATION CONTACT: Ms.
applicability of the requirement to
Julie Hammond, telephone 571–372– DEPARTMENT OF DEFENSE
6174. provide opportunity for competition to
American steel producers, fabricators, Defense Acquisition Regulations
SUPPLEMENTARY INFORMATION: and manufacturers, and revises the System
I. Background preference for award to U.S. firms of
military construction contracts that have 48 CFR Parts 225 and 252
DoD published an interim rule in the
an estimated value greater than
Federal Register at 80 FR 15909 on [Docket No. 2015–0010]
March 26, 2015, to implement sections $1,000,000 and the restriction requiring
108, 111, and 112 of the Military award only to U.S. firms for architect- RIN 0750–AI45
Construction and Veterans Affairs and engineer contracts that have an
estimated value greater than $500,000, Defense Federal Acquisition
Related Agencies Appropriations Act,
to make it applicable to contracts to be Regulation Supplement: Contractor
2015 (division I of the Consolidated and
performed in a country bordering the Personnel Supporting U.S. Armed
Further Continuing Resolution
Arabian Gulf, rather than a country Forces Deployed Outside the United
Appropriations Act, 2015, Pub. L. 113–
bordering the Arabian Sea (as required States (DFARS Case 2014–D023)
235), enacted December 16, 2014.
in earlier statutes). AGENCY: Defense Acquisition
II. Discussion and Analysis
No comments were received from the Regulations System, Department of
There were no public comments public relative to the publication of the Defense (DoD).
submitted in response to the interim initial regulatory flexibility analysis in ACTION: Final rule.
rule. The interim rule has been
the interim rule.
converted to a final rule, without SUMMARY: DoD is issuing a final rule
change. Section 108 will benefit any small amending the Defense Federal
business entities involved in producing, Acquisition Regulation Supplement
III. Executive Orders 12866 and 13563 fabricating, or manufacturing steel (DFARS) to provide updates and
Executive Orders (E.O.s) 12866 and products to be used in military clarifications regarding requirements for
13563 direct agencies to assess all costs construction. Sections 111 and 112 will contractor personnel supporting U.S.
and benefits of available regulatory only apply to a very limited number of Armed Forces deployed outside the
alternatives and, if regulation is small entities—those entities that United States.
necessary, to select regulatory submit offers in response to solicitations DATES: Effective August 26, 2015.
approaches that maximize net benefits for military construction contracts that
(including potential economic, FOR FURTHER INFORMATION CONTACT: Ms.
have an estimated value greater than Julie Hammond, Telephone 571–372–
environmental, public health and safety $1,000,000 and architect-engineer
effects, distributive impacts, and 6174.
contracts that have an estimated value
equity). E.O. 13563 emphasizes the greater than $500,000, when the SUPPLEMENTARY INFORMATION:
importance of quantifying both costs contracts are to be performed in
and benefits, of reducing costs, of I. Background
countries bordering the Arabian Gulf.
harmonizing rules, and of promoting DoD published a proposed rule in the
flexibility. This is not a significant The rule does not impose any Federal Register at 80 FR 4850 on
regulatory action and, therefore, was not additional reporting, recordkeeping, and January 29, 2015, to update the DFARS
subject to review under section 6(b) of other compliance requirements. clause at 252.225–7040, Contractor
E.O. 12866, Regulatory Planning and No alternatives were identified that Personnel Supporting U.S. Armed
Review, dated September 30, 1993. This will accomplish the objectives of the Forces Deployed Outside the United
rule is not a major rule under 5 U.S.C. statutes and the rule. States. No public comments were
804. submitted in response to the proposed
V. Paperwork Reduction Act rule.
IV. Regulatory Flexibility Act
rmajette on DSK7SPTVN1PROD with RULES

A final regulatory flexibility analysis The rule does not contain any II. Discussion and Analysis
has been prepared consistent with the information collection requirements that No changes are made to the substance
Regulatory Flexibility Act, 5 U.S.C. 601, require the approval of the Office of of the final rule. Subsequent to the
et seq., and is summarized as follows: Management and Budget under the publication of the proposed rule,
This rule is necessary to require Paperwork Reduction Act (44 U.S.C. however, DFARS subpart 225.74 was
offerors bidding on DoD military chapter 35). redesignated as DFARS 225.3 (see 80 FR

VerDate Sep<11>2014 12:34 Aug 25, 2015 Jkt 235001 PO 00000 Frm 00030 Fmt 4700 Sfmt 4700 E:\FR\FM\26AUR1.SGM 26AUR1

Document Created: 2015-12-15 10:58:19
Document Modified: 2015-12-15 10:58:19

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Rules and Regulations
Action		Final rule.
Dates		Effective August 26, 2015.
Contact		Ms. Julie Hammond, telephone 571-372- 6174.
FR Citation		80 FR 51751
RIN Number		0750-AI52
CFR Citation		48 CFR 225 48 CFR 236

80 FR 51751 - Defense Federal Acquisition Regulation Supplement: Use of Military Construction Funds (DFARS Case 2015-D006)

DEPARTMENT OF DEFENSEDefense Acquisition Regulations System

Federal Register Volume 80, Issue 165 (August 26, 2015)

DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System