80_FR_61028 80 FR 60833 - Federal Acquisition Regulation; Improvement in Design-Build Construction Process

80 FR 60833 - Federal Acquisition Regulation; Improvement in Design-Build Construction Process

DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

Federal Register Volume 80, Issue 195 (October 8, 2015)

Page Range60833-60834
FR Document2015-25613

DoD, GSA, and NASA are proposing to amend the Federal Acquisition Regulation (FAR) to implement section 814 of the Carl Levin and Howard P. `Buck' McKeon National Defense Authorization Act for Fiscal Year 2015 that requires the head of the contracting activity to approve any determinations to select more than five offerors to submit phase-two proposals for a two-phase design-build construction acquisition that is valued at greater than $4 million.

Federal Register, Volume 80 Issue 195 (Thursday, October 8, 2015)
[Federal Register Volume 80, Number 195 (Thursday, October 8, 2015)]
[Proposed Rules]
[Pages 60833-60834]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-25613]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Part 36

[FAR Case 2015-018; Docket No. 2015-0018; Sequence No. 1]
RIN 9000-AN10


Federal Acquisition Regulation; Improvement in Design-Build 
Construction Process

AGENCIES: Department of Defense (DoD), General Services Administration 
(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Proposed rule.

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

SUMMARY: DoD, GSA, and NASA are proposing to amend the Federal 
Acquisition Regulation (FAR) to implement section 814 of the Carl Levin 
and Howard P. `Buck' McKeon National Defense Authorization Act for 
Fiscal Year 2015 that requires the head of the contracting activity to 
approve any determinations to select more than five offerors to submit 
phase-two proposals for a two-phase design-build construction 
acquisition that is valued at greater than $4 million.

DATES: Interested parties should submit written comments to the 
Regulatory Secretariat at one of the addresses shown below on or before 
December 7, 2015 to be considered in the formulation of a final rule.

ADDRESSES: Submit comments in response to FAR Case 2015-018 by any of 
the following methods:
     Regulations.gov: http://www.regulations.gov. Submit 
comments via the Federal eRulemaking portal by searching for ``FAR Case 
2015-018.'' Select the link ``Comment Now'' that corresponds with FAR 
Case 2015-018. Follow the instructions provided at the ``Comment Now'' 
screen. Please include your name, company name (if any), and ``FAR Case 
2015-018'' on your attached document.
     Mail: General Services Administration, Regulatory 
Secretariat (MVCB), ATTN: Ms. Flowers, 1800 F Street NW., 2nd Floor, 
Washington, DC 20405.
    Instructions: Please submit comments only and cite FAR Case 2015-
018, in all correspondence related to this case. Comments received 
generally will be posted without change to http://www.regulations.gov, 
including any personal and/or business confidential information 
provided. To confirm receipt of your comment(s), please check 
www.regulations.gov, approximately two to three days after submission 
to verify posting (except allow 30 days for posting of comments 
submitted by mail).

FOR FURTHER INFORMATION CONTACT: Mr. Curtis E. Glover, Sr., Procurement 
Analyst, at 202-501-1448, for clarification of content. For information 
pertaining to status or publication schedules, contact the Regulatory 
Secretariat at 202-501-4755. Please cite FAR case 2015-018.

SUPPLEMENTARY INFORMATION: 

I. Background

    DoD, GSA, and NASA are proposing to amend the FAR to implement 
section 814 of the Carl Levin and Howard P. `Buck' McKeon National 
Defense Authorization Act for Fiscal Year 2015. Section 814 is entitled 
Improvement in Defense Design-Build Construction Process. Section 814 
requires the head of the contracting activity, delegable to a level no 
lower than the senior contracting official, to approve any 
determinations to select more than five offerors to submit phase-two 
proposals for a two-phase design build construction acquisition that is 
valued at greater than $4 million.

II. Discussion and Analysis

    This proposed rule does not change the maximum number of offerors, 
currently five, that may be selected to submit phase-two proposals 
without a contracting officer determination. However, for acquisitions 
valued above

[[Page 60834]]

$4 million, the determination must now have a higher level of approval 
for the contracting officer to select more than five offerors. A 
potential offeror may be more inclined to invest their pre-award 
efforts on solicitations where they have an increased chance of award.

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

    This change is not expected 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. Nevertheless, an 
Initial Regulatory Flexibility Analysis (IRFA) has been prepared, and 
is summarized as follows:

    This rule implements section 814 of the Carl Levin and Howard P. 
`Buck' McKeon National Defense Authorization Act for Fiscal Year 
2015. Section 814 is entitled Improvement in Defense Design-Build 
Construction Process. Section 814 requires the head of the 
contracting activity, delegable to a level no lower than the senior 
contracting official, to approve any determinations to select more 
than five offerors to submit phase-two proposals for a two-phase 
design build construction acquisition that is valued at greater than 
$4 million.
    The number of design-build construction awards is not currently 
tracked by the Federal government's business systems. In Fiscal Year 
2014, the Federal government awarded 3,666 construction awards to 
2,239 unique small business vendors. It is unknown what percentage 
of these contracts involved design-build construction services.
    This rule does not impose new recordkeeping or reporting 
requirements. The new approval requirement for advancing more than 
five contractors to phase two of a two-phase design-build selection 
procedure only affects the internal procedures of the Government. 
For acquisitions valued over $4M, the head of the contracting 
activity (HCA) is required to now make a determination that it is in 
the best interest of the Government to select more than five 
offerors to proceed to phase two. Any burden caused by this rule is 
expected to be minimal and will not be any greater on small 
businesses than it is on large businesses.
    The rule does not duplicate, overlap, or conflict with any other 
Federal rules. No alternative approaches were considered. It is not 
anticipated that the proposed rule will have a significant economic 
impact on small entities.

    The Regulatory Secretariat has submitted a copy of the IRFA to the 
Chief Counsel for Advocacy of the Small Business Administration. A copy 
of the IRFA may be obtained from the Regulatory Secretariat. DoD, GSA, 
and NASA invite comments from small business concerns and other 
interested parties on the expected impact of this rule on small 
entities.
    DoD, GSA, and NASA will also consider comments from small entities 
concerning the existing regulations in subparts affected by the rule in 
accordance with 5 U.S.C. 610. Interested parties must submit such 
comments separately and should cite 5 U.S.C. 610 (FAR Case 2015-018), 
in correspondence.

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 Subject in 48 CFR Part 36

    Government procurement.

William Clark,
Director, Office of Government-wide Acquisition Policy, Office of 
Acquisition Policy, Office of Government-wide Policy.

    Therefore, DoD, GSA, and NASA propose amending 48 CFR part 36 as 
set forth below:

PART 36--CONSTRUCTION AND ARCHITECT-ENGINEER CONTRACTS

0
1. The authority citation for 48 CFR part 36 continues to read as 
follows:

    Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 51 
U.S.C. 20113.

0
2. Amend section 36.303-1 by revising paragraph (a)(4) to read as 
follows:


36.303-1  Phase One.

    (a) * * *
    (4) A statement of the maximum number of offerors that will be 
selected to submit phase-two proposals. The maximum number specified in 
the solicitation shall not exceed five unless the contracting officer 
determines, for that particular solicitation, that a number greater 
than five is in the Government's interest and is consistent with the 
purposes and objectives of the two-phase design-build selection 
procedures. The contracting officer shall document this determination 
in the contract file. For acquisitions greater than $4 million, the 
determination shall be approved by the head of the contracting 
activity, delegable to a level no lower than the senior contracting 
official within the contracting activity.
* * * * *
[FR Doc. 2015-25613 Filed 10-7-15; 8:45 am]
 BILLING CODE 6820-EP-P



                                                                       Federal Register / Vol. 80, No. 195 / Thursday, October 8, 2015 / Proposed Rules                                        60833

                                               PART 2—DEFINITIONS OF WORDS                             of the agency determines the supplies or              ADDRESSES:   Submit comments in
                                               AND TERMS                                               services are to be used to support a                  response to FAR Case 2015–018 by any
                                                                                                       humanitarian or peacekeeping                          of the following methods:
                                               ■  2. Amend section 2.101 in paragraph                  operation. (See 2.101.)                                  • Regulations.gov: http://
                                               (b)(2), by revising the definition                                                                            www.regulations.gov. Submit comments
                                               ‘‘Simplified acquisition threshold’’ to                 PART 19—SMALL BUSINESS                                via the Federal eRulemaking portal by
                                               read as follows:                                        PROGRAMS                                              searching for ‘‘FAR Case 2015–018.’’
                                               2.101    Definitions.                                   19.203    [Amended]
                                                                                                                                                             Select the link ‘‘Comment Now’’ that
                                               *      *    *     *     *                                                                                     corresponds with FAR Case 2015–018.
                                                                                                       ■ 6. Amended section 19.203 by                        Follow the instructions provided at the
                                                 (b) * * *                                             removing from paragraph (b) ‘‘described
                                                 (2) * * *                                                                                                   ‘‘Comment Now’’ screen. Please include
                                                                                                       in paragraph (1)’’ and adding ‘‘described             your name, company name (if any), and
                                                 Simplified acquisition threshold                      in paragraph (1)(i)’’ in its place.
                                               means $150,000, except for—                                                                                   ‘‘FAR Case 2015–018’’ on your attached
                                                 (1) Acquisitions of supplies or                       19.502–2     [Amended]                                document.
                                               services that, as determined by the head                ■  7. Amended section 19.502–2 by                        • Mail: General Services
                                               of the agency, are to be used to support                removing from paragraph (a) ‘‘described               Administration, Regulatory Secretariat
                                               a contingency operation or to facilitate                in paragraph (1) of the Simplified                    (MVCB), ATTN: Ms. Flowers, 1800 F
                                               defense against or recovery from                        Acquisition Threshold’’ and adding                    Street NW., 2nd Floor, Washington, DC
                                               nuclear, biological, chemical, or                       ‘‘described in paragraph (1)(i) of the                20405.
                                               radiological attack (41 U.S.C. 1903), the               simplified acquisition threshold’’ in its                Instructions: Please submit comments
                                               term means—                                             place.                                                only and cite FAR Case 2015–018, in all
                                                 (i) $300,000 for any contract to be                                                                         correspondence related to this case.
                                                                                                       [FR Doc. 2015–25614 Filed 10–7–15; 8:45 am]
                                               awarded and performed, or purchase to                                                                         Comments received generally will be
                                                                                                       BILLING CODE 6820–EP–P                                posted without change to http://
                                               be made, inside the United States; and
                                                 (ii) $1 million for any contract to be                                                                      www.regulations.gov, including any
                                               awarded and performed, or purchase to                                                                         personal and/or business confidential
                                                                                                       DEPARTMENT OF DEFENSE
                                               be made, outside the United States.                                                                           information provided. To confirm
                                                 (2) Acquisitions of supplies or                       GENERAL SERVICES                                      receipt of your comment(s), please
                                               services that, as determined by the head                ADMINISTRATION                                        check www.regulations.gov,
                                               of the agency, are to be used to support                                                                      approximately two to three days after
                                               a humanitarian or peacekeeping                          NATIONAL AERONAUTICS AND                              submission to verify posting (except
                                               operation (41 U.S.C. 153 and 10 U.S.C.                  SPACE ADMINISTRATION                                  allow 30 days for posting of comments
                                               2302), the term means $300,000 for any                                                                        submitted by mail).
                                               contract to be awarded and performed,                   48 CFR Part 36                                        FOR FURTHER INFORMATION CONTACT: Mr.
                                               or purchase to be made, outside the                                                                           Curtis E. Glover, Sr., Procurement
                                               United States.                                          [FAR Case 2015–018; Docket No. 2015–                  Analyst, at 202–501–1448, for
                                               *      *    *     *     *                               0018; Sequence No. 1]                                 clarification of content. For information
                                                                                                       RIN 9000–AN10                                         pertaining to status or publication
                                               PART 4—ADMINISTRATIVE MATTERS                                                                                 schedules, contact the Regulatory
                                               4.1102    [Amended]                                     Federal Acquisition Regulation;                       Secretariat at 202–501–4755. Please cite
                                                                                                       Improvement in Design-Build                           FAR case 2015–018.
                                               ■ 3. Amended section 4.1102 by
                                                                                                       Construction Process                                  SUPPLEMENTARY INFORMATION:
                                               removing from paragraph (a)(3)(i) ‘‘10
                                               U.S.C. 2302(7)’’ and adding ‘‘10 U.S.C.                 AGENCIES: Department of Defense (DoD),                I. Background
                                               2302(8)’’ in its place.                                 General Services Administration (GSA),                   DoD, GSA, and NASA are proposing
                                                                                                       and National Aeronautics and Space                    to amend the FAR to implement section
                                               PART 13—SIMPLIFIED ACQUISITION
                                                                                                       Administration (NASA).                                814 of the Carl Levin and Howard P.
                                               PROCEDURES
                                                                                                       ACTION: Proposed rule.                                ‘Buck’ McKeon National Defense
                                               13.003    [Amended]                                                                                           Authorization Act for Fiscal Year 2015.
                                               ■  4. Amended section 13.003 by                         SUMMARY:    DoD, GSA, and NASA are                    Section 814 is entitled Improvement in
                                               removing from paragraph (b)(1)                          proposing to amend the Federal                        Defense Design-Build Construction
                                               ‘‘described in paragraph (1)’’ and adding               Acquisition Regulation (FAR) to                       Process. Section 814 requires the head
                                               ‘‘described in paragraph (1)(i)’’ in its                implement section 814 of the Carl Levin               of the contracting activity, delegable to
                                               place.                                                  and Howard P. ‘Buck’ McKeon National                  a level no lower than the senior
                                                                                                       Defense Authorization Act for Fiscal                  contracting official, to approve any
                                               PART 18—EMERGENCY                                       Year 2015 that requires the head of the               determinations to select more than five
                                               ACQUISITIONS                                            contracting activity to approve any                   offerors to submit phase-two proposals
                                                                                                       determinations to select more than five               for a two-phase design build
                                               ■ 5. Amend subpart 18.2 by                              offerors to submit phase-two proposals
                                               redesignating section 18.204 as section                                                                       construction acquisition that is valued
                                                                                                       for a two-phase design-build                          at greater than $4 million.
                                               18.205; and adding a new section 18.204                 construction acquisition that is valued
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                                               to read as follows:                                     at greater than $4 million.                           II. Discussion and Analysis
                                               18.204 Humanitarian or peacekeeping                     DATES: Interested parties should submit                 This proposed rule does not change
                                               operation.                                              written comments to the Regulatory                    the maximum number of offerors,
                                                 (a) A humanitarian or peacekeeping                    Secretariat at one of the addresses                   currently five, that may be selected to
                                               operation is defined in 2.101.                          shown below on or before December 7,                  submit phase-two proposals without a
                                                 (b) Simplified acquisition threshold.                 2015 to be considered in the                          contracting officer determination.
                                               The threshold increases when the head                   formulation of a final rule.                          However, for acquisitions valued above


                                          VerDate Sep<11>2014   14:48 Oct 07, 2015   Jkt 238001   PO 00000   Frm 00025   Fmt 4702   Sfmt 4702   E:\FR\FM\08OCP1.SGM   08OCP1


                                               60834                 Federal Register / Vol. 80, No. 195 / Thursday, October 8, 2015 / Proposed Rules

                                               $4 million, the determination must now                  offerors to proceed to phase two. Any burden          Government’s interest and is consistent
                                               have a higher level of approval for the                 caused by this rule is expected to be minimal         with the purposes and objectives of the
                                               contracting officer to select more than                 and will not be any greater on small                  two-phase design-build selection
                                                                                                       businesses than it is on large businesses.
                                               five offerors. A potential offeror may be                                                                     procedures. The contracting officer shall
                                                                                                          The rule does not duplicate, overlap, or
                                               more inclined to invest their pre-award                 conflict with any other Federal rules. No             document this determination in the
                                               efforts on solicitations where they have                alternative approaches were considered. It is         contract file. For acquisitions greater
                                               an increased chance of award.                           not anticipated that the proposed rule will           than $4 million, the determination shall
                                                                                                       have a significant economic impact on small           be approved by the head of the
                                               III. Executive Orders 12866 and 13563                   entities.                                             contracting activity, delegable to a level
                                                  Executive Orders (E.O.s) 12866 and                     The Regulatory Secretariat has                      no lower than the senior contracting
                                               13563 direct agencies to assess all costs               submitted a copy of the IRFA to the                   official within the contracting activity.
                                               and benefits of available regulatory                    Chief Counsel for Advocacy of the Small               *     *     *     *    *
                                               alternatives and, if regulation is                      Business Administration. A copy of the                [FR Doc. 2015–25613 Filed 10–7–15; 8:45 am]
                                               necessary, to select regulatory                         IRFA may be obtained from the                         BILLING CODE 6820–EP–P
                                               approaches that maximize net benefits                   Regulatory Secretariat. DoD, GSA, and
                                               (including potential economic,                          NASA invite comments from small
                                               environmental, public health and safety                 business concerns and other interested                DEPARTMENT OF THE INTERIOR
                                               effects, distributive impacts, and                      parties on the expected impact of this
                                               equity). E.O. 13563 emphasizes the                      rule on small entities.                               Fish and Wildlife Service
                                               importance of quantifying both costs                      DoD, GSA, and NASA will also
                                               and benefits, of reducing costs, of                     consider comments from small entities                 50 CFR Part 17
                                               harmonizing rules, and of promoting                     concerning the existing regulations in
                                               flexibility. This is not a significant                                                                        [Docket No. FWS–HQ–ES–2015–0143;
                                                                                                       subparts affected by the rule in                      4500030113]
                                               regulatory action and, therefore, was not               accordance with 5 U.S.C. 610. Interested
                                               subject to review under section 6(b) of                 parties must submit such comments                     Endangered and Threatened Wildlife
                                               E.O. 12866, Regulatory Planning and                     separately and should cite 5 U.S.C. 610               and Plants; 12-Month Findings on
                                               Review, dated September 30, 1993. This                  (FAR Case 2015–018), in                               Petitions To List 19 Species as
                                               rule is not a major rule under 5 U.S.C.                 correspondence.                                       Endangered or Threatened Species
                                               804.
                                                                                                       V. Paperwork Reduction Act                            AGENCY:   Fish and Wildlife Service,
                                               IV. Regulatory Flexibility Act
                                                                                                         The rule does not contain any                       Interior.
                                                  This change is not expected to have                  information collection requirements that              ACTION: Notice of 12-month petition
                                               a significant economic impact on a                      require the approval of the Office of                 findings.
                                               substantial number of small entities                    Management and Budget under the
                                               within the meaning of the Regulatory                    Paperwork Reduction Act (44 U.S.C.                    SUMMARY:    We, the U.S. Fish and
                                               Flexibility Act, 5 U.S.C. 601, et seq.                  chapter 35).                                          Wildlife Service (Service, FWS, or
                                               Nevertheless, an Initial Regulatory                                                                           USFWS), announce 12-month findings
                                               Flexibility Analysis (IRFA) has been                    List of Subject in 48 CFR Part 36                     on petitions to list 19 species as
                                               prepared, and is summarized as follows:                   Government procurement.                             endangered species or threatened
                                                 This rule implements section 814 of the                                                                     species under the Endangered Species
                                                                                                       William Clark,                                        Act of 1973, as amended (Act). After
                                               Carl Levin and Howard P. ‘Buck’ McKeon
                                               National Defense Authorization Act for Fiscal           Director, Office of Government-wide                   review of the best available scientific
                                               Year 2015. Section 814 is entitled                      Acquisition Policy, Office of Acquisition             and commercial information, we find
                                               Improvement in Defense Design-Build                     Policy, Office of Government-wide Policy.
                                                                                                                                                             that listing the American eel,
                                               Construction Process. Section 814 requires                Therefore, DoD, GSA, and NASA                       Cumberland arrow darter, the Great
                                               the head of the contracting activity, delegable         propose amending 48 CFR part 36 as set
                                               to a level no lower than the senior                                                                           Basin distinct population segment (DPS)
                                               contracting official, to approve any
                                                                                                       forth below:                                          of the Columbia spotted frog, Goose
                                               determinations to select more than five                                                                       Creek milkvetch, Nevares spring bug,
                                               offerors to submit phase-two proposals for a            PART 36—CONSTRUCTION AND                              Page springsnail, Ramshaw meadows
                                               two-phase design build construction                     ARCHITECT-ENGINEER CONTRACTS                          sand-verbena, Sequatchie caddisfly,
                                               acquisition that is valued at greater than $4                                                                 Shawnee darter, Siskiyou mariposa lily,
                                               million.                                                ■ 1. The authority citation for 48 CFR
                                                                                                       part 36 continues to read as follows:                 Sleeping ute milkvetch, Southern Idaho
                                                 The number of design-build construction
                                               awards is not currently tracked by the
                                                                                                                                                             ground squirrel, Tahoe yellow cress,
                                                                                                         Authority: 40 U.S.C. 121(c); 10 U.S.C.              and six Tennessee cave beetles (Baker
                                               Federal government’s business systems. In               chapter 137; and 51 U.S.C. 20113.
                                               Fiscal Year 2014, the Federal government                                                                      Station, Coleman, Fowler’s, Indian
                                               awarded 3,666 construction awards to 2,239              ■ 2. Amend section 36.303–1 by                        Grave Point, inquirer, and Noblett’s cave
                                               unique small business vendors. It is                    revising paragraph (a)(4) to read as                  beetles) is not warranted at this time.
                                               unknown what percentage of these contracts              follows:                                              However, we ask the public to submit to
                                               involved design-build construction services.                                                                  us any new information that becomes
                                                 This rule does not impose new                         36.303–1     Phase One.
                                                                                                                                                             available concerning the threats to any
                                               recordkeeping or reporting requirements. The              (a) * * *                                           of the 19 species listed above or their
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                                               new approval requirement for advancing                    (4) A statement of the maximum
                                               more than five contractors to phase two of a                                                                  habitat at any time.
                                                                                                       number of offerors that will be selected
                                               two-phase design-build selection procedure              to submit phase-two proposals. The                    DATES: The findings announced in this
                                               only affects the internal procedures of the                                                                   document were made on October 8,
                                               Government. For acquisitions valued over
                                                                                                       maximum number specified in the
                                                                                                       solicitation shall not exceed five unless             2015.
                                               $4M, the head of the contracting activity
                                               (HCA) is required to now make a                         the contracting officer determines, for               ADDRESSES:  These findings are available
                                               determination that it is in the best interest of        that particular solicitation, that a                  on the Internet at http://
                                               the Government to select more than five                 number greater than five is in the                    www.regulations.gov at Docket Number


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Document Created: 2015-12-15 08:42:53
Document Modified: 2015-12-15 08:42:53
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionProposed rule.
DatesInterested parties should submit written comments to the
ContactMr. Curtis E. Glover, Sr., Procurement Analyst, at 202-501-1448, for clarification of content. For information pertaining to status or publication schedules, contact the Regulatory Secretariat at 202-501-4755. Please cite FAR case 2015-018.
FR Citation80 FR 60833 
RIN Number9000-AN10

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