81 FR 17044 - 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 81, Issue 58 (March 25, 2016)

Page Range		17044-17045
FR Document		2016-06721

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 2015 that 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.

Federal Register, Volume 81 Issue 58 (Friday, March 25, 2016)

[Federal Register Volume 81, Number 58 (Friday, March 25, 2016)]
[Rules and Regulations]
[Pages 17044-17045]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-06721]


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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: 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 2015 that 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: Effective March 25, 2016.

FOR FURTHER INFORMATION CONTACT: Ms. Janetta Brewer, telephone 571-372-
6104.

SUPPLEMENTARY INFORMATION: 

I. Background

    DoD published a proposed rule in the Federal Register at 80 FR 
72671 on November 20, 2015, to revise the DFARS to implement section 
811 of the National Defense Authorization Act (NDAA) for Fiscal Year 
(FY) 2015 (Pub. L. 113-291, enacted December 19, 2014), which amended 
paragraphs (a) and (b) of section 819 of the NDAA for FY 2010 (10 
U.S.C. 2302 note). The rule proposed to amend DFARS 217.202(2) and 
234.005-1(1) to add ``or initial production'' to the text, to allow for 
inclusion of a contract line item (possibly an option) for advanced 
component development and prototype units to go to initial production 
without further competition. The rule also proposed to amend DFARS 
234.005-1(2) to extend this authority to September 30, 2019. There were 
no public comments submitted in response to the proposed rule. There 
are no changes from the proposed rule made in the final rule.

II. Applicability to Contracts at or Below the Simplified Acquisition 
Threshold and for Commercial Items, Including Commercially Available 
Off-the-Shelf Items

    This case does not add any new provisions or clauses or impact any 
existing provisions or clauses.

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

    DoD has prepared a Final Regulatory Flexibility Analysis (FRFA) 
consistent with the Regulatory Flexibility Act, 5 U.S.C. 601, et seq. 
The FRFA is summarized as follows:
    This rule is necessary to implement section 811 of the National 
Defense Authorization Act (NDAA) for Fiscal Year (FY) 2015 (Pub. L. 
113-291). Section 811 amends paragraphs (a) and (b) of section 819 of 
the NDAA for FY 2010 (10 U.S.C. 2302 note). The objective of this rule 
is to provide authority for the inclusion of a contract line item 
(possibly an option) for advanced component development and prototype 
units to go to initial production without further competition.
    There were no significant issues raised by the public in response 
to the initial regulatory flexibility analysis.

[[Page 17045]]

    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 significant number of small 
entities.
    This rule does not impose new recordkeeping or reporting 
requirements. There are no known significant alternative approaches to 
the rule that would meet the requirements of the statute.

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 217 and 234

    Government procurement.

Jennifer L. Hawes,
Editor, Defense Acquisition Regulations System.
    Therefore, 48 CFR parts 217 and 234 are amended as follows:

0
1. The authority citation for 48 CFR 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. 2016-06721 Filed 3-24-16; 8:45 am]
 BILLING CODE 5001-06-P

17044 Federal Register / Vol. 81, No. 58 / Friday, March 25, 2016 / Rules and Regulations

(3) For additional information on (3) The Contractor shall submit the proposed to amend DFARS 217.202(2)
warranty attachments, see the data for warranty tracking to the and 234.005–1(1) to add ‘‘or initial
‘‘Warranty and Source of Repair’’ Contracting Officer with a copy to the production’’ to the text, to allow for
training and ‘‘Warranty and Source of requiring activity and the Contracting inclusion of a contract line item
Repair Tracking User Guide’’ accessible Officer Representative. (possibly an option) for advanced
on the Product Data Reporting and (4) For additional information on component development and prototype
Evaluation Program (PDREP) Web site at warranty attachments, see the units to go to initial production without
https://www.pdrep.csd.disa.mil/ ‘‘Warranty and Source of Repair’’ further competition. The rule also
pdrep_files/other/wsr.htm. training and ‘‘Warranty and Source of proposed to amend DFARS 234.005–
(End of provision) Repair Tracking User Guide’’ accessible 1(2) to extend this authority to
■ 7. Amend section 252.246–7006 by— on the Product Data Reporting and September 30, 2019. There were no
■ a. Removing from the introductory Evaluation Program (PDREP) Web site at public comments submitted in response
text ‘‘246.710(3)(i)(B)’’ and adding https://www.pdrep.csd.disa.mil/ to the proposed rule. There are no
‘‘246.710(3)(ii)’’ in its place; pdrep_files/other/wsr.htm. changes from the proposed rule made in
■ b. Removing the clause date ‘‘(JUN * * * * * the final rule.
2011)’’ and adding ‘‘(MAR 2016)’’ in its [FR Doc. 2016–06720 Filed 3–24–16; 8:45 am]
place; II. Applicability to Contracts at or
BILLING CODE 5001–06–P
■ c. Revising in paragraph (a) the
Below the Simplified Acquisition
definitions of ‘‘Issuing agency’’ and Threshold and for Commercial Items,
‘‘Starting event’’; and Including Commercially Available Off-
DEPARTMENT OF DEFENSE
■ d. Revising paragraph (b). the-Shelf Items
The revision reads as follows: Defense Acquisition Regulations This case does not add any new
System provisions or clauses or impact any
252.246–7006 Warranty Tracking of
Serialized Items. existing provisions or clauses.
48 CFR Parts 217 and 234
* * * * * III. Executive Orders 12866 and 13563
(a) * * * [Docket DARS–2015–0042] Executive Orders (E.O.s) 12866 and
Issuing agency means an organization 13563 direct agencies to assess all costs
RIN 0750–AI62
responsible for assigning a globally and benefits of available regulatory
unique identifier to an enterprise, as Defense Federal Acquisition alternatives and, if regulation is
indicated in the Register of Issuing Regulation Supplement: Extension and necessary, to select regulatory
Agency Codes for International Modification of Contract Authority for approaches that maximize net benefits
Standards Organization/International Advanced Component Development (including potential economic,
Electrotechnical Commission 15459, and Prototype Units (DFARS Case environmental, public health and safety
located at http://www.aimglobal.org/ 2015–D008) effects, distributive impacts, and
?Reg_Authority15459. equity). E.O. 13563 emphasizes the
* * * * * AGENCY: Defense Acquisition
Regulations System, Department of importance of quantifying both costs
Starting event means the event or and benefits, of reducing costs, of
action that initiates the warranty, such Defense (DoD).
harmonizing rules, and of promoting
as first use or upon installation. ACTION: Final rule.
flexibility. This is not a significant
* * * * * SUMMARY: DoD is issuing a final rule regulatory action and, therefore, was not
(b) Reporting of data for warranty amending the Defense Federal subject to review under section 6(b) of
tracking and administration. (1) The Acquisition Regulation Supplement E.O. 12866, Regulatory Planning and
Contractor shall provide the information (DFARS) to implement a section of the Review, dated September 30, 1993. This
required by the attachment entitled National Defense Authorization Act for rule is not a major rule under 5 U.S.C.
‘‘Warranty Tracking Information’’ on Fiscal Year 2015 that amended a section 804.
each contract line item number, subline of the National Defense Authorization
item number, or exhibit line item IV. Regulatory Flexibility Act
Act for Fiscal Year 2010, to extend and
number for warranted items no later modify contract authority for advanced DoD has prepared a Final Regulatory
than the time of award. Information component development and prototype Flexibility Analysis (FRFA) consistent
required in the warranty attachment units. with the Regulatory Flexibility Act, 5
shall include such information as U.S.C. 601, et seq. The FRFA is
DATES: Effective March 25, 2016.
duration, fixed expiration, item type, summarized as follows:
FOR FURTHER INFORMATION CONTACT: Ms. This rule is necessary to implement
starting event, usage, warranty
administrator enterprise identifier, and Janetta Brewer, telephone 571–372– section 811 of the National Defense
warranty guarantor enterprise identifier. 6104. Authorization Act (NDAA) for Fiscal
(2) The Contractor shall provide the SUPPLEMENTARY INFORMATION: Year (FY) 2015 (Pub. L. 113–291).
following information no later than Section 811 amends paragraphs (a) and
I. Background (b) of section 819 of the NDAA for FY
when the warranted items are presented
for receipt and/or acceptance— DoD published a proposed rule in the 2010 (10 U.S.C. 2302 note). The
(i) The unique item identifier for each Federal Register at 80 FR 72671 on objective of this rule is to provide
warranted item required by the November 20, 2015, to revise the authority for the inclusion of a contract
srobinson on DSK5SPTVN1PROD with RULES3

attachment entitled ‘‘Warranty Tracking DFARS to implement section 811 of the line item (possibly an option) for
Information;’’ and National Defense Authorization Act advanced component development and
(ii) The warranty repair source (NDAA) for Fiscal Year (FY) 2015 (Pub. prototype units to go to initial
information and instructions for each L. 113–291, enacted December 19, production without further competition.
warranted item required by the 2014), which amended paragraphs (a) There were no significant issues
attachment entitled ‘‘Source of Repair and (b) of section 819 of the NDAA for raised by the public in response to the
Instructions.’’ FY 2010 (10 U.S.C. 2302 note). The rule initial regulatory flexibility analysis.

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Federal Register / Vol. 81, No. 58 / Friday, March 25, 2016 / Rules and Regulations 17045

The rule will apply to DoD major ■ b. In paragraph (2) by removing 252.219–7003 are displayed at 212.301,
defense acquisition program contractors ‘‘September 30, 2014’’ and adding and (3) spell out the acronym ‘‘eSRS’’ in
and subcontractors. Most major defense ‘‘September 30, 2019’’ in its place. the DFARS basic and alternate clause
acquisition programs are awarded to [FR Doc. 2016–06721 Filed 3–24–16; 8:45 am] 252.219–7003.
large concerns as they are of a scope too BILLING CODE 5001–06–P
II. Applicability to Contracts at or
large for any small business to perform. Below the Simplified Acquisition
As such, it is not expected that this rule Threshold and for Commercial Items,
will have a significant impact on a DEPARTMENT OF DEFENSE
Including Commercially Available Off-
significant number of small entities. the-Shelf Items
Defense Acquisition Regulations
This rule does not impose new
System This rule does not change the
recordkeeping or reporting
prescription for DFAR clause 252.219–
requirements. There are no known
48 CFR Parts 212, 219, and 252 7003, Small Business Subcontracting
significant alternative approaches to the
[Docket DARS–2015–0044] Plan (DoD Contracts); rather, the rule
rule that would meet the requirements
merely clarifies the use of the clause
of the statute. RIN 0750–AI68 and the way it is displayed in the
V. Paperwork Reduction Act regulations. DFARS clause 252.219–
Defense Federal Acquisition 7003 is used in conjunction with FAR
The rule does not contain any Regulation Supplement: Clauses With clause 52.219–9, Small Business
information collection requirements that Alternates—Small Business Programs Subcontracting Plan, and applies to
require the approval of the Office of (DFARS Case 2015–D017) solicitations and contracts for
Management and Budget under the commercial items, including
Paperwork Reduction Act (44 U.S.C. AGENCY: Defense Acquisition
Regulations System, Department of commercially available off-the-shelf
chapter 35). items. The clause is not applicable to
Defense (DoD).
List of Subjects in 48 CFR Parts 217 and ACTION: Final rule. acquisitions valued at or below the
234 simplified acquisition threshold,
SUMMARY: DoD is issuing a final rule because the FAR clause is only used in
Government procurement. amending the Defense Federal acquisitions expected to exceed
Jennifer L. Hawes, Acquisition Regulation Supplement $700,000.
Editor, Defense Acquisition Regulations (DFARS) to clarify clauses and their
III. Executive Orders 12866 and 13563
System. prescriptions for small business
Therefore, 48 CFR parts 217 and 234 are programs and to create basic and Executive Orders (E.O.s) 12866 and
amended as follows: alternate clauses structured in a manner 13563 direct agencies to assess all costs
to facilitate use of automated contract and benefits of available regulatory
■ 1. The authority citation for 48 CFR alternatives and, if regulation is
writing systems.
parts 217 and 234 continues to read as necessary, to select regulatory
follows: DATES: Effective March 25, 2016.
approaches that maximize net benefits
FOR FURTHER INFORMATION CONTACT: Ms.
Authority: 41 U.S.C. 1303 and 48 CFR (including potential economic,
chapter 1. Jennifer Johnson, telephone 571–372–
environmental, public health and safety
6100.
effects, distributive impacts, and
PART 217—SPECIAL CONTRACTING SUPPLEMENTARY INFORMATION: equity). E.O. 13563 emphasizes the
METHODS importance of quantifying both costs
I. Background
and benefits, of reducing costs, of
■ 2. Amend section 217.202 by revising DoD published a proposed rule in the harmonizing rules, and of promoting
paragraph (2) to read as follows: Federal Register at 80 FR 58669 on flexibility. This is not a significant
September 30, 2015, to clarify, in the regulatory action and, therefore, was not
217.202 Use of options.
small business programs’ clause subject to review under section 6(b) of
* * * * * prescriptions, the appropriate use of the E.O. 12866, Regulatory Planning and
(2) See 234.005–1 for limitations on basic clause and its alternate clause. Review, dated September 30, 1993. This
the use of contract options for the This final rule provides the basic clause rule is not a major rule under 5 U.S.C.
provision of advanced component at 252.219–7003, Small Business 804.
development, prototype, or initial Subcontracting Plan (DoD Contracts), in
production of technology developed full text as well as the alternate to the IV. Regulatory Flexibility Act
under the contract or the delivery of basic clause in full text, instead of only A final regulatory flexibility analysis
initial or additional items. reflecting the paragraphs that are has been prepared consistent with the
different. The clause at DFARS 252.219– Regulatory Flexibility Act, 5 U.S.C. 601,
PART 234—MAJOR SYSTEM 7010, now titled ‘‘Notification of et seq., and is summarized as follows:
ACQUISITION Competition Limited to Eligible 8(a) This final rule clarifies: (1) DFARS
234.005–1 [Amended] Concerns—Partnership Agreement’’ is clause, 252.219–7003, Small Business
modified to incorporate Federal Subcontracting Plan (DoD Contracts),
■ 3. Amend section 234.005–1— Acquisition Regulation (FAR) clause which has an alternate, and (2) DFARS
■ a. In paragraph (1) introductory text, 52.219–18 and its two alternates into the clause 252.219–7010, now titled
srobinson on DSK5SPTVN1PROD with RULES3

by removing ‘‘component development existing clause at DFARS 252.219–7010. ‘‘Notification of Competition Limited to
or prototype of technology’’ and adding No public comments were received in Eligible 8(a) Concerns—Partnership
‘‘component development, prototype, or response to the proposed rule. Three Agreement,’’ which is an alternate to a
initial production of technology’’ in its editorial changes were made to the FAR clause. The basic and alternate
place, and removing ‘‘additional proposed rule to (1) correct a clauses will be full, separate clauses for
prototype items’’ and adding typographical error, (2) update how the ease of use by the contracting officers.
‘‘additional items’’ in its place; and basic clause and alternate clause for This rule also explains the appropriate

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Document Created: 2018-02-02 15:18:20
Document Modified: 2018-02-02 15:18:20

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 March 25, 2016.
Contact		Ms. Janetta Brewer, telephone 571-372- 6104.
FR Citation		81 FR 17044
RIN Number		0750-AI62
CFR Citation		48 CFR 217 48 CFR 234

81 FR 17044 - Defense Federal Acquisition Regulation Supplement: Extension and Modification of Contract Authority for Advanced Component Development and Prototype Units (DFARS Case 2015-D008)

DEPARTMENT OF DEFENSEDefense Acquisition Regulations System

Federal Register Volume 81, Issue 58 (March 25, 2016)

DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System