81 FR 30438 - Federal Acquisition Regulation: Simplified Acquisition Threshold for Overseas Acquisitions in Support of Humanitarian or Peacekeeping Operations
DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION Federal Register Volume 81, Issue 94 (May 16, 2016)
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
Federal Register Volume 81, Issue 94 (May 16, 2016)
| Page Range | 30438-30439 | |
| FR Document | 2016-10999 |
[Federal Register Volume 81, Number 94 (Monday, May 16, 2016)] [Rules and Regulations] [Pages 30438-30439] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-10999] ----------------------------------------------------------------------- DEPARTMENT OF DEFENSE GENERAL SERVICES ADMINISTRATION NATIONAL AERONAUTICS AND SPACE ADMINISTRATION 48 CFR Parts 2, 4, 13, 18, and 19 [FAC 2005-88; FAR Case 2015-020; Item II; Docket No. 2015-0020; Sequence No. 1] RIN 9000-AN09 Federal Acquisition Regulation: Simplified Acquisition Threshold for Overseas Acquisitions in Support of Humanitarian or Peacekeeping Operations AGENCY: Department of Defense (DoD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA). ACTION: Final rule. ----------------------------------------------------------------------- SUMMARY: DoD, GSA, and NASA are issuing a final rule to amend the Federal Acquisition Regulation (FAR) to implement a section of U.S. Code which establishes a higher simplified acquisition threshold for overseas acquisitions in support of humanitarian or peacekeeping operations. DATES: Effective June 15, 2016. FOR FURTHER INFORMATION CONTACT: Ms. Camara Francis, Procurement Analyst, at 202-550-0935, for clarification of content. For information pertaining to status or publication schedules, contact the Regulatory Secretariat Division at 202-501-4755. Please cite FAC 2005-88, FAR Case 2015-020. SUPPLEMENTARY INFORMATION: I. Background DoD, GSA, and NASA published a proposed rule in the Federal Register at 80 FR 60832 on October 8, 2015, soliciting public comments on this rule, drafted to implement 41 U.S.C. 153, which establishes a higher simplified acquisition threshold (SAT) for overseas acquisitions in support of humanitarian or peacekeeping operations. FAR Case 2003- 022 was published in the Federal Register as an interim rule at 69 FR 8312, on February 23, 2004, and as a final rule published at 69 FR 76350, on December 20, 2004. Drafters of that rule had revised the definition for SAT contained at FAR 2.101: Definitions, but had also inadvertently deleted the reference to overseas humanitarian or peacekeeping missions and the requisite doubling of the SAT in those circumstances. The civilian statute at the time was numbered 41 U.S.C. 259(d)(1); it is now at 41 U.S.C. 153. The purpose of this rule is to reinstate the increased SAT for overseas acquisitions for peacekeeping or humanitarian operations. Conforming changes are made in FAR parts 4, 13, 18, and 19. One public comment was received. II. Discussion and Analysis The Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council (the Councils) reviewed the public comment in development of the final rule. A. Summary of Significant Changes There were no changes made to the rule as a result of the comment received. There were no comments on the Initial Regulatory Flexibility Analysis. B. Analysis of Public Comments Comment: One respondent stated that the FAR definition of simplified acquisition needed to clarify that construction is included as part of supplies or services in a contingency environment, noting that construction projects are very important to contingency operations. The respondent indicated that contracting professionals generally understand that the FAR covers two broad categories of acquisition: Supplies and services. Services include everything that is not a commodity (supplies), and is therefore inclusive of construction, which is a type of service. Response: The Councils appreciate the comment and acknowledge the broad understanding that services are inclusive of construction services. 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, GSA and NASA have prepared a Final Regulatory Flexibility Analysis (FRFA) consistent with the Regulatory [[Page 30439]] Flexibility Act 5 U.S.C. 601, et seq. The FRFA is summarized as follows: The final rule, in order to implement 41 U.S.C. 153, sets forth a higher simplified acquisition threshold (SAT) for overseas acquisitions in support of humanitarian or peacekeeping operations. There were no significant issues raised by the public in response to the Initial Regulatory Flexibility Analysis provided in the proposed rule. The rule applies only to overseas acquisitions in support of humanitarian or peacekeeping operations. In Fiscal Year 2014, 1545 awards were made in support of humanitarian or peacekeeping operations, and 585 (37.86 percent) of those were to small businesses. Additionally, only 81 (5.24 percent) of the awards were valued between the former threshold of $150,000 and the new threshold of $300,000. Therefore, it is not anticipated that this rule will have a significant economic impact on small businesses. Interested parties may obtain a copy of the FRFA from the Regulatory Secretariat Division. The Regulatory Secretariat Division has submitted a copy of the FRFA to the Chief Counsel for Advocacy of the Small Business Administration. V. Paperwork Reduction Act This 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 2, 4, 13, 18, and 19 Government procurement. Dated: May 5, 2016. William Clark, Director, Office of Government-wide Acquisition Policy, Office of Acquisition Policy, Office of Government-wide Policy. Therefore, DoD, GSA, and NASA are amending 48 CFR parts 2, 4, 13, 18, and 19 as set forth below: 0 1. The authority citation for FAR parts 2, 4, 13, 18, and 19 continues to read as follows: Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 51 U.S.C. 20113. PART 2--DEFINITIONS OF WORDS AND TERMS 0 2. Amend section 2.101 by revising the definition ``Simplified acquisition threshold'' to read as follows: 2.101 Definitions. * * * * * Simplified acquisition threshold means $150,000, except for-- (1) Acquisitions of supplies or services that, as determined by the head of the agency, are to be used to support a contingency operation or to facilitate defense against or recovery from nuclear, biological, chemical, or radiological attack (41 U.S.C. 1903), the term means-- (i) $300,000 for any contract to be awarded and performed, or purchase to be made, inside the United States; and (ii) $1 million for any contract to be awarded and performed, or purchase to be made, outside the United States; and (2) Acquisitions of supplies or services that, as determined by the head of the agency, are to be used to support a humanitarian or peacekeeping operation (10 U.S.C. 2302), the term means $300,000 for any contract to be awarded and performed, or purchase to be made, outside the United States. * * * * * PART 4--ADMINISTRATIVE MATTERS 4.1102 [Amended] 0 3. Amend section 4.1102 by removing from paragraph (a)(3)(i) ``peacekeeping operations as defined in 10 U.S.C. 2302(7)'' and adding ``peacekeeping operations as defined in 10 U.S.C. 2302(8)'' in its place. PART 13--SIMPLIFIED ACQUISITION PROCEDURES 13.003 [Amended] 0 4. Amend section 13.003 by removing from paragraph (b)(1) ``described in paragraph (1)'' and adding ``described in paragraph (1)(i)'' in its place. PART 18--EMERGENCY ACQUISITIONS 18.204 [Redesignated as 18.205] 0 5. Redesignate section 18.204 as section 18.205. 0 6. Add a new section 18.204 to read as follows: 18.204 Humanitarian or peacekeeping operation. (a) A humanitarian or peacekeeping operation is defined in 2.101. (b) Simplified acquisition threshold. The threshold increases when the head of the agency determines the supplies or services are to be used to support a humanitarian or peacekeeping operation. (See 2.101.) PART 19--SMALL BUSINESS PROGRAMS 19.203 [Amended] 0 7. Amend section 19.203 by removing from paragraph (b) ``described in paragraph (1)'' and adding ``described in paragraph (1)(i)'' in its place. 19.502-2 [Amended] 0 8. Amend section 19.502-2 by removing from paragraph (a) ``paragraph (1) of the Simplified Acquisition Threshold'' and adding ``paragraph (1)(i) of the simplified acquisition threshold'' in its place. [FR Doc. 2016-10999 Filed 5-13-16; 8:45 am] BILLING CODE 6820-EP-P
![30438 Federal Register / Vol. 81, No. 94 / Monday, May 16, 2016 / Rules and Regulations
potential hydrofluorocarbons, when feasible, DEPARTMENT OF DEFENSE purpose of this rule is to reinstate the
from aerosol propellants or solvents under increased SAT for overseas acquisitions
this contract. When determining feasibility of GENERAL SERVICES for peacekeeping or humanitarian
using a particular alternative, the Contractor ADMINISTRATION operations. Conforming changes are
shall consider environmental, technical, and
made in FAR parts 4, 13, 18, and 19.
economic factors such as— NATIONAL AERONAUTICS AND
(1) In-use emission rates, energy efficiency; One public comment was received.
(2) Safety, such as flammability or toxicity;
SPACE ADMINISTRATION
II. Discussion and Analysis
(3) Ability to meet technical performance
requirements; and 48 CFR Parts 2, 4, 13, 18, and 19 The Civilian Agency Acquisition
(4) Commercial availability at a reasonable [FAC 2005–88; FAR Case 2015–020; Item Council and the Defense Acquisition
cost. II; Docket No. 2015–0020; Sequence No. 1] Regulations Council (the Councils)
(c) The Contractor shall refer to EPA’s reviewed the public comment in
SNAP program to identify alternatives. The RIN 9000–AN09
development of the final rule.
SNAP list of alternatives is found at 40 CFR
part 82, subpart G, with supplemental tables Federal Acquisition Regulation: A. Summary of Significant Changes
available at http://www.epa.gov/snap/. Simplified Acquisition Threshold for
(End of clause) Overseas Acquisitions in Support of There were no changes made to the
Humanitarian or Peacekeeping rule as a result of the comment received.
■ 20. Add section 52.223–21 to read as Operations There were no comments on the Initial
follows: Regulatory Flexibility Analysis.
AGENCY: Department of Defense (DoD),
General Services Administration (GSA), B. Analysis of Public Comments
52.223–21 Foams.
and National Aeronautics and Space Comment: One respondent stated that
As prescribed in 23.804(d), insert the Administration (NASA). the FAR definition of simplified
following clause:
ACTION: Final rule. acquisition needed to clarify that
Foams (June, 2016) construction is included as part of
SUMMARY: DoD, GSA, and NASA are supplies or services in a contingency
(a) Definitions. As used in this clause— issuing a final rule to amend the Federal
Global warming potential means how environment, noting that construction
Acquisition Regulation (FAR) to projects are very important to
much a given mass of a chemical contributes
to global warming over a given time period
implement a section of U.S. Code which contingency operations. The respondent
compared to the same mass of carbon establishes a higher simplified indicated that contracting professionals
dioxide. Carbon dioxide’s global warming acquisition threshold for overseas generally understand that the FAR
potential is defined as 1.0. acquisitions in support of humanitarian covers two broad categories of
High global warming potential or peacekeeping operations. acquisition: Supplies and services.
hydrofluorocarbons means any DATES: Effective June 15, 2016. Services include everything that is not
hydrofluorocarbons in a particular end use FOR FURTHER INFORMATION CONTACT: Ms. a commodity (supplies), and is therefore
for which EPA’s Significant New Alternatives inclusive of construction, which is a
Camara Francis, Procurement Analyst,
Policy (SNAP) program has identified other
at 202–550–0935, for clarification of type of service.
acceptable alternatives that have lower global
warming potential. The SNAP list of content. For information pertaining to Response: The Councils appreciate
alternatives is found at 40 CFR part 82, status or publication schedules, contact the comment and acknowledge the
subpart G, with supplemental tables of the Regulatory Secretariat Division at broad understanding that services are
alternatives available at http://www.epa.gov/ 202–501–4755. Please cite FAC 2005– inclusive of construction services.
snap/. 88, FAR Case 2015–020.
Hydrofluorocarbons means compounds III. Executive Orders 12866 and 13563
SUPPLEMENTARY INFORMATION:
that contain only hydrogen, fluorine, and Executive Orders (E.O.s) 12866 and
carbon. I. Background 13563 direct agencies to assess all costs
(b) Unless otherwise specified in the
DoD, GSA, and NASA published a and benefits of available regulatory
contract, the Contractor shall reduce its use,
release, and emissions of high global proposed rule in the Federal Register at alternatives and, if regulation is
warming potential hydrofluorocarbons and 80 FR 60832 on October 8, 2015, necessary, to select regulatory
refrigerant blends containing soliciting public comments on this rule, approaches that maximize net benefits
hydrofluorocarbons, when feasible, from drafted to implement 41 U.S.C. 153, (including potential economic,
foam blowing agents, under this contract. which establishes a higher simplified environmental, public health and safety
When determining feasibility of using a acquisition threshold (SAT) for overseas effects, distributive impacts, and
particular alternative, the Contractor shall acquisitions in support of humanitarian equity). E.O. 13563 emphasizes the
consider environmental, technical, and or peacekeeping operations. FAR Case importance of quantifying both costs
economic factors such as— 2003–022 was published in the Federal and benefits, of reducing costs, of
(1) In-use emission rates, energy efficiency,
Register as an interim rule at 69 FR harmonizing rules, and of promoting
and safety;
(2) Ability to meet performance 8312, on February 23, 2004, and as a flexibility. This is not a significant
requirements; and final rule published at 69 FR 76350, on regulatory action and, therefore, was not
(3) Commercial availability at a reasonable December 20, 2004. Drafters of that rule subject to review under section 6(b) of
cost. had revised the definition for SAT E.O. 12866, Regulatory Planning and
asabaliauskas on DSK3SPTVN1PROD with RULES
(c) The Contractor shall refer to EPA’s contained at FAR 2.101: Definitions, but Review, dated September 30, 1993. This
SNAP program to identify alternatives. The had also inadvertently deleted the rule is not a major rule under 5 U.S.C.
SNAP list of alternatives is found at 40 CFR reference to overseas humanitarian or 804.
part 82, subpart G, with supplemental tables peacekeeping missions and the requisite
available at http://www.epa.gov/snap/. IV. Regulatory Flexibility Act
doubling of the SAT in those
(End of clause)
circumstances. The civilian statute at DoD, GSA and NASA have prepared
[FR Doc. 2016–10998 Filed 5–13–16; 8:45 am] the time was numbered 41 U.S.C. a Final Regulatory Flexibility Analysis
BILLING CODE 6820–EP–P 259(d)(1); it is now at 41 U.S.C. 153. The (FRFA) consistent with the Regulatory
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![Federal Register / Vol. 81, No. 94 / Monday, May 16, 2016 / Rules and Regulations 30439
Flexibility Act 5 U.S.C. 601, et seq. The of the agency, are to be used to support 19.502–2 [Amended]
FRFA is summarized as follows: a contingency operation or to facilitate ■ 8. Amend section 19.502–2 by
The final rule, in order to implement 41 defense against or recovery from removing from paragraph (a) ‘‘paragraph
U.S.C. 153, sets forth a higher simplified nuclear, biological, chemical, or (1) of the Simplified Acquisition
acquisition threshold (SAT) for overseas radiological attack (41 U.S.C. 1903), the Threshold’’ and adding ‘‘paragraph (1)(i)
acquisitions in support of humanitarian or term means— of the simplified acquisition threshold’’
peacekeeping operations. (i) $300,000 for any contract to be
There were no significant issues raised by in its place.
awarded and performed, or purchase to
the public in response to the Initial be made, inside the United States; and [FR Doc. 2016–10999 Filed 5–13–16; 8:45 am]
Regulatory Flexibility Analysis provided in
(ii) $1 million for any contract to be BILLING CODE 6820–EP–P
the proposed rule.
The rule applies only to overseas awarded and performed, or purchase to
acquisitions in support of humanitarian or be made, outside the United States; and
(2) Acquisitions of supplies or DEPARTMENT OF DEFENSE
peacekeeping operations. In Fiscal Year 2014,
1545 awards were made in support of services that, as determined by the head GENERAL SERVICES
humanitarian or peacekeeping operations, of the agency, are to be used to support ADMINISTRATION
and 585 (37.86 percent) of those were to a humanitarian or peacekeeping
small businesses. Additionally, only 81 (5.24 operation (10 U.S.C. 2302), the term
percent) of the awards were valued between NATIONAL AERONAUTICS AND
means $300,000 for any contract to be SPACE ADMINISTRATION
the former threshold of $150,000 and the new
threshold of $300,000. Therefore, it is not
awarded and performed, or purchase to
anticipated that this rule will have a be made, outside the United States. 48 CFR Parts 4, 7, 12, and 52
significant economic impact on small * * * * *
businesses.
PART 4—ADMINISTRATIVE MATTERS [FAC 2005–88; FAR Case 2011–020; Item
Interested parties may obtain a copy III; Docket No. 2011–0020, Sequence No.
of the FRFA from the Regulatory 4.1102 [Amended] 1]
Secretariat Division. The Regulatory
■ 3. Amend section 4.1102 by removing
Secretariat Division has submitted a RIN 9000–AM19
from paragraph (a)(3)(i) ‘‘peacekeeping
copy of the FRFA to the Chief Counsel
operations as defined in 10 U.S.C.
for Advocacy of the Small Business Federal Acquisition Regulation; Basic
2302(7)’’ and adding ‘‘peacekeeping
Administration. Safeguarding of Contractor
operations as defined in 10 U.S.C.
V. Paperwork Reduction Act Information Systems
2302(8)’’ in its place.
This rule does not contain any AGENCY: Department of Defense (DoD),
PART 13—SIMPLIFIED ACQUISITION
information collection requirements that General Services Administration (GSA),
PROCEDURES
require the approval of the Office of and National Aeronautics and Space
Management and Budget under the 13.003 [Amended] Administration (NASA).
Paperwork Reduction Act (44 U.S.C. ACTION: Final rule.
■ 4. Amend section 13.003 by removing
chapter 35).
from paragraph (b)(1) ‘‘described in
List of Subjects in 48 CFR Parts 2, 4, 13, paragraph (1)’’ and adding ‘‘described in SUMMARY: DoD, GSA, and NASA are
18, and 19 paragraph (1)(i)’’ in its place. issuing a final rule amending the
Federal Acquisition Regulation (FAR) to
Government procurement. PART 18—EMERGENCY add a new subpart and contract clause
Dated: May 5, 2016. ACQUISITIONS for the basic safeguarding of contractor
William Clark, information systems that process, store
18.204 [Redesignated as 18.205] or transmit Federal contract
Director, Office of Government-wide
Acquisition Policy, Office of Acquisition ■ 5. Redesignate section 18.204 as information. The clause does not relieve
Policy, Office of Government-wide Policy. section 18.205. the contractor of any other specific
Therefore, DoD, GSA, and NASA are safeguarding requirement specified by
■ 6. Add a new section 18.204 to read
amending 48 CFR parts 2, 4, 13, 18, and Federal agencies and departments as it
as follows:
19 as set forth below: relates to covered contractor
18.204 Humanitarian or peacekeeping information systems generally or other
■ 1. The authority citation for FAR parts
operation. Federal requirements for safeguarding
2, 4, 13, 18, and 19 continues to read as Controlled Unclassified Information
follows: (a) A humanitarian or peacekeeping
operation is defined in 2.101. (CUI) as established by Executive Order
Authority: 40 U.S.C. 121(c); 10 U.S.C. (b) Simplified acquisition threshold. (E.O.). Systems that contain classified
chapter 137; and 51 U.S.C. 20113. The threshold increases when the head information, or CUI such as personally
of the agency determines the supplies or identifiable information, require more
PART 2—DEFINITIONS OF WORDS than the basic level of protection.
AND TERMS services are to be used to support a
humanitarian or peacekeeping DATES: Effective: June 15, 2016.
■ 2. Amend section 2.101 by revising operation. (See 2.101.)
FOR FURTHER INFORMATION CONTACT: Ms.
the definition ‘‘Simplified acquisition
asabaliauskas on DSK3SPTVN1PROD with RULES
PART 19—SMALL BUSINESS Cecelia L. Davis, Procurement Analyst,
threshold’’ to read as follows: at 202–219–0202, for clarification of
PROGRAMS
2.101 Definitions. content. For information pertaining to
19.203 [Amended] status or publication schedules, contact
* * * * *
Simplified acquisition threshold ■ 7. Amend section 19.203 by removing the Regulatory Secretariat Division at
means $150,000, except for— from paragraph (b) ‘‘described in 202–501–4755. Please cite FAC 2005–
(1) Acquisitions of supplies or paragraph (1)’’ and adding ‘‘described in 88, FAR Case 2011–020.
services that, as determined by the head paragraph (1)(i)’’ in its place. SUPPLEMENTARY INFORMATION:
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Document Created: 2016-05-14 01:17:33
Document Modified: 2016-05-14 01:17:33
| 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 June 15, 2016. | |
| Contact | Ms. Camara Francis, Procurement Analyst, at 202-550-0935, for clarification of content. For information pertaining to status or publication schedules, contact the Regulatory Secretariat Division at 202-501-4755. Please cite FAC 2005-88, FAR Case 2015-020. | |
| FR Citation | 81 FR 30438 | |
| RIN Number | 9000-AN09 | |
| CFR Citation | 48
CFR
13 48 CFR 18 48 CFR 19 48 CFR 2 48 CFR 4 |
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