80 FR 72671 - Defense Federal Acquisition Regulation Supplement: Extension and Modification of Contract Authority for Advanced Component Development and Prototype Units (DFARS Case 2015-D008)
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System Federal Register Volume 80, Issue 224 (November 20, 2015)
Defense Acquisition Regulations System
Federal Register Volume 80, Issue 224 (November 20, 2015)
| Page Range | 72671-72672 | |
| FR Document | 2015-29552 |
[Federal Register Volume 80, Number 224 (Friday, November 20, 2015)] [Proposed Rules] [Pages 72671-72672] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-29552] ----------------------------------------------------------------------- DEPARTMENT OF DEFENSE Defense Acquisition Regulations System 48 CFR Parts 217 and 234 [Docket DARS-2015-0042] RIN 0750-AI62 Defense Federal Acquisition Regulation Supplement: Extension and Modification of Contract Authority for Advanced Component Development and Prototype Units (DFARS Case 2015-D008) AGENCY: Defense Acquisition Regulations System, Department of Defense (DoD). ACTION: Proposed rule. ----------------------------------------------------------------------- SUMMARY: DoD is proposing to amend the Defense Federal Acquisition Regulation Supplement (DFARS) to implement a section of the National Defense Authorization Act for Fiscal Year 2015, which amended a section of the National Defense Authorization Act for Fiscal Year 2010, to extend and modify contract authority for advanced component development and prototype units. DATES: Comments on the proposed rule should be submitted in writing to the address shown below on or before January 19, 2016, to be considered in the formation of a final rule. ADDRESSES: Submit comments identified by DFARS Case 2015-D008, using any of the following methods: [cir] Regulations.gov: http://www.regulations.gov. Submit comments via the Federal eRulemaking portal by entering ``DFARS Case 2015-D008'' under the heading ``Enter keyword or ID'' and selecting ``Search.'' Select the link ``Submit a Comment'' that corresponds with ``DFARS Case 2015-D008.'' Follow the instructions provided at the ``Submit a Comment'' screen. Please include your name, company name (if any), and ``DFARS Case 2015-D008'' on your attached document. [cir] Email: [email protected]. Include DFARS Case 2015-D008 in the subject line of the message. [cir] Fax: 571-372-6094. [cir] Mail: Defense Acquisition Regulations System, Attn: Ms. Janetta Brewer, OUSD(AT&L)DPAP/DARS, Room 3B941, 3060 Defense Pentagon, Washington, DC 20301-3060. Comments received generally will be posted without change to http://www.regulations.gov, including any personal 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: Ms. Janetta Brewer, telephone: 571- 372-6104. SUPPLEMENTARY INFORMATION: I. Background DoD is proposing to revise the DFARS to implement section 811 of the National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2015 (Pub. L. 113-291). Section 811 entitled ``Extension and Modification of Contract Authority for Advanced Component Development and Prototype Units'' amends paragraphs (a) and (b) of section 819 of the NDAA for FY 2010 (10 U.S.C. 2302 note). The rule proposes to amend DFARS 217.202(2) and 234.005-1(1) to add ``or initial production'' to the text. This will allow for the inclusion of a contract line item (possibly an option) to go to initial production without further competition. However, there is no new impact on contract cost because section 819(b) of the NDAA for FY 2010 (which is unchanged in 2015) continues to place a limitation on costs associated with any contract line item (option or otherwise) for the delivery of initial or additional items. The rule also extends this authority at DFARS 234.005-1(2) to September 30, 2019, from September 30, 2014. II. 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. III. Regulatory Flexibility Act DoD does not expect this 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., because the rule primarily provides greater flexibility to DoD when contracting for major system acquisitions. However, an initial regulatory flexibility analysis has been performed and is summarized as follows: The purpose of the rule is to implement section 811 of the National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2015 (Pub. L. 113-291). Section 811 entitled ``Extension and Modification of Contract Authority for Advanced Component Development and Prototype Units'' amends paragraphs (a) and (b) of section 819 of the NDAA for FY 2010 (10 U.S.C. 2302 note). The rule proposes to amend DFARS 217.202(2) and 234.005-1(1) to add ``or initial production'' to the text. This will allow for the inclusion of a contract line item (possibly an option) to go to initial production without further competition. The rule will apply to DoD major defense acquisition program contractors and subcontractors. Most major defense acquisition programs are awarded to large concerns as they are of a scope too large for any small business to perform. As such, it is not expected that this rule will have a significant impact on a substantial number of small entities. The rule does not impose any additional reporting, recordkeeping, and other compliance requirements. The rule does not duplicate, overlap, or conflict with any other Federal rules. There are no alternatives available that would meet the objectives of the statute. DoD invites comments from small business concerns and other interested [[Page 72672]] parties on the expected impact of this rule on small entities. DoD will also consider comments from small entities concerning the affected DFARS subpart in accordance with 5 U.S.C. 601. Such comments should be submitted separately and should cite 5 U.S.C. 610 (DFARS Case 2015-D008) in correspondence. IV. Paperwork Reduction Act The Paperwork Reduction Act does not apply because the rule does not impose any information collection requirements that require the approval of the Office of Management and Budget under 44 U.S.C. chapter 35. List of Subjects in 48 CFR Parts 217 and 234 Government procurement. Jennifer L. Hawes, Editor, Defense Acquisition Regulations System. Therefore, 48 CFR parts 217 and 234 are proposed to be amended as follows: 0 1. The authority citation for parts 217 and 234 continues to read as follows: Authority: 41 U.S.C. 1303 and 48 CFR chapter 1. PART 217--SPECIAL CONTRACTING METHODS 0 2. Amend section 217.202 by revising paragraph (2) to read as follows: 217.202 Use of options. * * * * * (2) See 234.005-1 for limitations on the use of contract options for the provision of advanced component development, prototype, or initial production of technology developed under the contract or the delivery of initial or additional items. PART 234--MAJOR SYSTEM ACQUISITION 234.005-1 [Amended] 0 3. Amend section 234.005-1-- 0 a. In paragraph (1) introductory text, by removing ``component development or prototype of technology'' and adding ``component development, prototype, or initial production of technology'' in its place, and removing ``additional prototype items'' and adding ``additional items'' in its place; and 0 b. In paragraph (2), by removing ``September 30, 2014'' and adding ``September 30, 2019'' in its place. [FR Doc. 2015-29552 Filed 11-19-15; 8:45 am] BILLING CODE 5001-06-P
![Federal Register / Vol. 80, No. 224 / Friday, November 20, 2015 / Proposed Rules 72671
Defense Contract Audit Agency (DCAA). Æ Regulations.gov: http:// II. Executive Orders 12866 and 13563
At a minimum, the contracting officer www.regulations.gov. Submit comments Executive Orders (E.O.s) 12866 and
shall request that DCAA evaluate— via the Federal eRulemaking portal by 13563 direct agencies to assess all costs
(A) Completeness of the contractor’s entering ‘‘DFARS Case 2015–D008’’ and benefits of available regulatory
voluntary disclosure on the affected under the heading ‘‘Enter keyword or alternatives and, if regulation is
contract; ID’’ and selecting ‘‘Search.’’ Select the necessary, to select regulatory
(B) Accuracy of the contractor’s cost link ‘‘Submit a Comment’’ that approaches that maximize net benefits
impact calculation for the affected corresponds with ‘‘DFARS Case 2015– (including potential economic,
contract; and D008.’’ Follow the instructions provided environmental, public health and safety
(C) Potential impact on existing at the ‘‘Submit a Comment’’ screen. effects, distributive impacts, and
contracts, task or deliver orders, or other Please include your name, company equity). E.O. 13563 emphasizes the
proposals the contractor has submitted name (if any), and ‘‘DFARS Case 2015– importance of quantifying both costs
to the Government. D008’’ on your attached document.
(ii) Voluntary disclosure of defective and benefits, of reducing costs, of
pricing is not a voluntary refund as Æ Email: osd.dfars@mail.mil. Include harmonizing rules, and of promoting
defined in 242.7100 and does not waive DFARS Case 2015–D008 in the subject flexibility. This is not a significant
the Government entitlement to the line of the message. regulatory action and, therefore, was not
recovery of any overpayment plus Æ Fax: 571–372–6094. subject to review under section 6(b) of
interest on the overpayments in E.O. 12866, Regulatory Planning and
Æ Mail: Defense Acquisition
accordance with FAR 15.407–1(b)(7). Review, dated September 30, 1993. This
Regulations System, Attn: Ms. Janetta
(iii) Voluntary disclosure of defective rule is not a major rule under 5 U.S.C.
Brewer, OUSD(AT&L)DPAP/DARS,
pricing does not waive the 804.
Room 3B941, 3060 Defense Pentagon,
Government’s rights to pursue defective Washington, DC 20301–3060. III. Regulatory Flexibility Act
pricing claims on the affected contract Comments received generally will be DoD does not expect this rule to have
or any other Government contract. posted without change to http:// a significant economic impact on a
[FR Doc. 2015–29555 Filed 11–19–15; 8:45 am] www.regulations.gov, including any substantial number of small entities
BILLING CODE 5001–06–P personal information provided. To within the meaning of the Regulatory
confirm receipt of your comment(s), Flexibility Act, 5 U.S.C. 601, et seq.,
please check www.regulations.gov, because the rule primarily provides
DEPARTMENT OF DEFENSE approximately two to three days after greater flexibility to DoD when
Defense Acquisition Regulations submission to verify posting (except contracting for major system
System allow 30 days for posting of comments acquisitions. However, an initial
submitted by mail). regulatory flexibility analysis has been
48 CFR Parts 217 and 234 FOR FURTHER INFORMATION CONTACT: Ms. performed and is summarized as
follows:
Janetta Brewer, telephone: 571–372–
[Docket DARS–2015–0042] The purpose of the rule is to
6104.
RIN 0750–AI62
implement section 811 of the National
SUPPLEMENTARY INFORMATION: Defense Authorization Act (NDAA) for
Defense Federal Acquisition Fiscal Year (FY) 2015 (Pub. L. 113–291).
I. Background Section 811 entitled ‘‘Extension and
Regulation Supplement: Extension and
Modification of Contract Authority for DoD is proposing to revise the DFARS Modification of Contract Authority for
Advanced Component Development to implement section 811 of the Advanced Component Development and
and Prototype Units (DFARS Case National Defense Authorization Act Prototype Units’’ amends paragraphs (a)
2015–D008) (NDAA) for Fiscal Year (FY) 2015 (Pub. and (b) of section 819 of the NDAA for
L. 113–291). Section 811 entitled FY 2010 (10 U.S.C. 2302 note).
AGENCY: Defense Acquisition The rule proposes to amend DFARS
Regulations System, Department of ‘‘Extension and Modification of Contract
Authority for Advanced Component 217.202(2) and 234.005–1(1) to add ‘‘or
Defense (DoD). initial production’’ to the text. This will
Development and Prototype Units’’
ACTION: Proposed rule. allow for the inclusion of a contract line
amends paragraphs (a) and (b) of section
item (possibly an option) to go to initial
SUMMARY: DoD is proposing to amend 819 of the NDAA for FY 2010 (10 U.S.C.
production without further competition.
the Defense Federal Acquisition 2302 note). The rule will apply to DoD major
Regulation Supplement (DFARS) to The rule proposes to amend DFARS defense acquisition program contractors
implement a section of the National 217.202(2) and 234.005–1(1) to add ‘‘or and subcontractors. Most major defense
Defense Authorization Act for Fiscal initial production’’ to the text. This will acquisition programs are awarded to
Year 2015, which amended a section of allow for the inclusion of a contract line large concerns as they are of a scope too
the National Defense Authorization Act item (possibly an option) to go to initial large for any small business to perform.
for Fiscal Year 2010, to extend and production without further competition. As such, it is not expected that this rule
modify contract authority for advanced However, there is no new impact on will have a significant impact on a
component development and prototype contract cost because section 819(b) of substantial number of small entities.
units. the NDAA for FY 2010 (which is The rule does not impose any
mstockstill on DSK4VPTVN1PROD with PROPOSALS
DATES: Comments on the proposed rule unchanged in 2015) continues to place additional reporting, recordkeeping, and
should be submitted in writing to the a limitation on costs associated with any other compliance requirements. The
address shown below on or before contract line item (option or otherwise) rule does not duplicate, overlap, or
January 19, 2016, to be considered in for the delivery of initial or additional conflict with any other Federal rules.
the formation of a final rule. items. The rule also extends this There are no alternatives available that
ADDRESSES: Submit comments authority at DFARS 234.005–1(2) to would meet the objectives of the statute.
identified by DFARS Case 2015–D008, September 30, 2019, from September 30, DoD invites comments from small
using any of the following methods: 2014. business concerns and other interested
VerDate Sep<11>2014 17:58 Nov 19, 2015 Jkt 238001 PO 00000 Frm 00064 Fmt 4702 Sfmt 4702 E:\FR\FM\20NOP1.SGM 20NOP1](https://thefederalregister.org/doc/80_FR_72895/page/1.svg)
![72672 Federal Register / Vol. 80, No. 224 / Friday, November 20, 2015 / Proposed Rules
parties on the expected impact of this DEPARTMENT OF DEFENSE FOR FURTHER INFORMATION CONTACT: Ms.
rule on small entities. Tresa Sullivan, telephone 571–372–
DoD will also consider comments Defense Acquisition Regulations 6089.
from small entities concerning the System
SUPPLEMENTARY INFORMATION:
affected DFARS subpart in accordance
with 5 U.S.C. 601. Such comments 48 CFR Part 225 I. Background
should be submitted separately and [Docket DARS–2015–0053] DoD is proposing to revise the DFARS
should cite 5 U.S.C. 610 (DFARS Case to clarify when it is appropriate to not
RIN 0750–AI77
2015–D008) in correspondence. include DFARS clause 252.225–7001,
IV. Paperwork Reduction Act Defense Federal Acquisition Buy American and Balance of Payments
Regulation Supplement: Buy American Program, with regard to exceptions to
The Paperwork Reduction Act does and Balance of Payments Program— the Buy American statute and Balance
not apply because the rule does not Clause Prescription (DFARS Case of Payment Program. The prescription
impose any information collection 2015–D037) for use of DFARS clause 252.225–7001
requirements that require the approval does not clearly make a distinction with
of the Office of Management and Budget AGENCY: Defense Acquisition regard to when an exception to the Buy
under 44 U.S.C. chapter 35. Regulations System, Department of American statute or Balance of
Defense (DoD). Payments Program applies. As written,
List of Subjects in 48 CFR Parts 217 and ACTION: Proposed rule procurement offices may inaccurately
234 believe that it is permissible to omit the
SUMMARY: DoD is proposing to amend clause if either situation occurs.
Government procurement. the Defense Federal Acquisition However, the clause is required in
Jennifer L. Hawes, Regulation Supplement (DFARS) to solicitations and contracts unless (1) the
Editor, Defense Acquisition Regulations clarify how the clause prescription acquisition is for supplies for use within
System. addresses applicability when an the United States and an exception to
exception to the Buy American statute the Buy American statute applies (e.g.,
Therefore, 48 CFR parts 217 and 234 or Balance of Payments Program nonavailability or public interest), or (2)
are proposed to be amended as follows: applies. the acquisition is for supplies for use
■ 1. The authority citation for parts 217 DATES: Comments on the proposed rule outside the United States and an
and 234 continues to read as follows: should be submitted in writing to the exception to the Balance of Payments
Authority: 41 U.S.C. 1303 and 48 CFR
address shown below on or before Program applies.
chapter 1. January 19, 2016, to be considered in
the formation of a final rule. III. Executive Orders 12866 and 13563
PART 217—SPECIAL CONTRACTING ADDRESSES: Submit comments Executive Orders (E.O.s) 12866 and
METHODS identified by DFARS Case 2015–D037, 13563 direct agencies to assess all costs
using any of the following methods: and benefits of available regulatory
■ 2. Amend section 217.202 by revising Æ Regulations.gov: http:// alternatives and, if regulation is
paragraph (2) to read as follows: www.regulations.gov. Submit comments necessary, to select regulatory
via the Federal eRulemaking portal by approaches that maximize net benefits
217.202 Use of options. (including potential economic,
entering ‘‘DFARS Case 2015–D037’’
* * * * * under the heading ‘‘Enter keyword or environmental, public health and safety
(2) See 234.005–1 for limitations on ID’’ and selecting ‘‘Search.’’ Select the effects, distributive impacts, and
the use of contract options for the link ‘‘Submit a Comment’’ that equity). E.O. 13563 emphasizes the
provision of advanced component corresponds with ‘‘DFARS Case 2015– importance of quantifying both costs
development, prototype, or initial D037.’’ Follow the instructions provided and benefits, of reducing costs, of
production of technology developed at the ‘‘Submit a Comment’’ screen. harmonizing rules, and of promoting
under the contract or the delivery of Please include your name, company flexibility. This is not a significant
initial or additional items. name (if any), and ‘‘DFARS Case 2015– regulatory action and, therefore, was not
D037’’ on your attached document. subject to review under section 6(b) of
PART 234—MAJOR SYSTEM Æ Email: osd.dfars@mail.mil. Include E.O. 12866, Regulatory Planning and
ACQUISITION DFARS Case 2015–D037 in the subject Review, dated September 30, 1993. This
line of the message. rule is not a major rule under 5 U.S.C.
234.005–1 [Amended]
Æ Fax: 571–372–6094. 804.
■ 3. Amend section 234.005–1— Æ Mail: Defense Acquisition
IV. Regulatory Flexibility Act
■ a. In paragraph (1) introductory text,
Regulations System, Attn: Ms. Tresa
by removing ‘‘component development Sullivan, OUSD(AT&L)DPAP/DARS, DoD does not expect this proposed
or prototype of technology’’ and adding Room 3B941, 3060 Defense Pentagon, rule to have a significant economic
‘‘component development, prototype, or Washington, DC 20301–3060. impact on a substantial number of small
initial production of technology’’ in its Comments received generally will be entities within the meaning of the
posted without change to http:// Regulatory Flexibility Act, 5 U.S.C. 601,
mstockstill on DSK4VPTVN1PROD with PROPOSALS
place, and removing ‘‘additional
prototype items’’ and adding www.regulations.gov, including any et seq., because it applies to internal
‘‘additional items’’ in its place; and personal information provided. To procedures for Government contracting
confirm receipt of your comment(s), officers. This proposed rule clarifies
■ b. In paragraph (2), by removing please check www.regulations.gov, how clause prescription addresses
‘‘September 30, 2014’’ and adding approximately two to three days after applicability when an exception to the
‘‘September 30, 2019’’ in its place. submission to verify posting (except Buy American statute or Balance of
[FR Doc. 2015–29552 Filed 11–19–15; 8:45 am] allow 30 days for posting of comments Payments Program applies. However, an
BILLING CODE 5001–06–P submitted by mail). initial regulatory flexibility analysis has
VerDate Sep<11>2014 17:58 Nov 19, 2015 Jkt 238001 PO 00000 Frm 00065 Fmt 4702 Sfmt 4702 E:\FR\FM\20NOP1.SGM 20NOP1](https://thefederalregister.org/doc/80_FR_72895/page/2.svg)
Document Created: 2015-12-14 13:58:34
Document Modified: 2015-12-14 13:58:34
| 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 | Proposed Rules | |
| Action | Proposed rule. | |
| Dates | Comments on the proposed rule should be submitted in writing to | |
| Contact | Ms. Janetta Brewer, telephone: 571- 372-6104. | |
| FR Citation | 80 FR 72671 | |
| RIN Number | 0750-AI62 | |
| CFR Citation | 48
CFR
217 48 CFR 234 |
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