81 FR 42557 - Defense Federal Acquisition Regulation Supplement: Pilot Program on Acquisition of Military Purpose Nondevelopmental Items (DFARS Case 2016-D014)

DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System

Federal Register Volume 81, Issue 126 (June 30, 2016)

Page Range		42557-42559
FR Document		2016-15256
DoD is issuing an interim rule amending the Defense Federal Acquisition Regulation Supplement (DFARS) to implement a section of the National Defense Authorization Act for Fiscal Year 2016 that changes the criteria for the pilot program on acquisition of military purpose nondevelopmental items.
Federal Register, Volume 81 Issue 126 (Thursday, June 30, 2016)
[Federal Register Volume 81, Number 126 (Thursday, June 30, 2016)]
[Rules and Regulations]
[Pages 42557-42559]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-15256]


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DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Parts 212 and 252

[Docket DARS-2016-0015]
RIN 0750-AI93


Defense Federal Acquisition Regulation Supplement: Pilot Program 
on Acquisition of Military Purpose Nondevelopmental Items (DFARS Case 
2016-D014)

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

ACTION: Interim rule.

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

SUMMARY: DoD is issuing an interim rule amending the Defense Federal 
Acquisition Regulation Supplement (DFARS) to implement a section of the 
National Defense Authorization Act for Fiscal Year 2016 that changes 
the criteria for the pilot program on acquisition of military purpose 
nondevelopmental items.

DATES: Effective June 30, 2016.
    Comment date: Comments on the interim rule should be submitted in 
writing to the address shown below on or before August 29, 2016 to be 
considered in the formation of a final rule.

ADDRESSES: Submit comments identified by DFARS Case 2016-D014, using 
any of the following methods:
    [cir] Regulations.gov: http://www.regulations.gov. Submit comments 
via the Federal eRulemaking portal by entering ``DFARS Case 2016-D014'' 
under the heading ``Enter keyword or ID'' and selecting ``Search.'' 
Select the link ``Submit a Comment'' that corresponds with ``DFARS Case 
2016-D014.'' Follow the instructions provided at the ``Submit a 
Comment'' screen. Please include your name, company name (if any), and 
``DFARS Case 2016-D014'' on your attached document.
    [cir] Email: [email protected]. Include DFARS Case 2016-D014 in 
the subject line of the message.
    [cir] Fax: 571-372-6094.
    [cir] Mail: Defense Acquisition Regulations System, Attn: Mr. 
Dustin Pitsch, 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: Mr. Dustin Pitsch, telephone 571-372-
6090.

SUPPLEMENTARY INFORMATION:

I. Background

    This interim rule revises the DFARS to implement section 892 of the 
National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2016 
(Pub. L. 114-92). Section 892 amends section 866 of the NDAA for FY 
2011 (Pub. L. 111-383) to modify the criteria for use of the pilot 
program on acquisition of military purpose nondevelopmental items. 
Section 892 removes the requirements under the program for the use of 
competitive procedures and for awards to be made to nontraditional 
defense contractors. Section 892 also increases the threshold for use 
of the pilot program to contracts up to $100 million.
    Section 866 was implemented in DFARS rule 2011-D034, Pilot Program 
on Acquisition of Military Purpose Nondevelopmental Items (77 FR 2653), 
which allowed for the creation of the pilot program to test whether the 
streamlined procedures, similar to those available for commercial 
items, can serve as an effective incentive for nontraditional defense 
contractors to channel investment and innovation into areas that are 
useful to DoD and provide items developed exclusively at private 
expense to meet validated military requirements. The DFARS changes 
proposed by this rule will allow for increased opportunities to utilize 
the pilot program.

II. Discussion and Analysis

    This rule amends DFARS subpart 212.71 by--
     Deleting the term ``nontraditional defense contractor'' 
and the associated definition;
     Removing the requirement that pilot program contracts be 
awarded using competitive procedures;
     Increasing the maximum contract award value threshold for 
use of the pilot program from $53.5 million to $100 million; and
     Revising the prescription for the provision at 252.212-
7002 for use only when the pilot program will be used.
    Conforming changes are made to DFARS provision 252.212-7002, Pilot 
Program for Acquisition of Military-Purpose Nondevelopmental Items, to 
include removal of the requirement at paragraph (c) for offerors to 
represent by submission of an offer that the firm is a nontraditional 
contractor.
    This rule also makes one editorial change to provide at DFARS 
212.7101 the full text of the definitions of ``military-purpose 
nondevelopmental items'' and ``nondevelopmental items.''

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

    DoD does not intend to apply the requirements of section 892 of the 
NDAA for FY 2016 to contracts at or below the simplified acquisition 
threshold (SAT) or for the acquisition of commercial items, including 
commercially available off-the-shelf (COTS) items.

A. Applicability to Contracts at or Below the SAT

    41 U.S.C. 1905 governs the applicability of laws to contracts or 
subcontracts in amounts not greater than the simplified acquisition 
threshold. It is intended to limit the applicability of laws to such 
contracts or subcontracts. 41 U.S.C. 1905 provides that if a provision 
of law contains criminal or civil penalties, or if the FAR Council 
makes a written determination that it is not in the best interest of 
the Federal Government to exempt contracts or subcontracts at or below 
the SAT, the law will apply to them. The Director, Defense Procurement 
and Acquisition Policy (DPAP), is the appropriate authority to make 
comparable determinations for regulations to be published in the DFARS, 
which is part of the FAR system of regulations. DoD

[[Page 42558]]

did not make that determination. Therefore, this rule does not apply 
below the simplified acquisition threshold.

B. Applicability to Contracts for the Acquisition of Commercial Items, 
Including COTS Items

    41 U.S.C. 1906 governs the applicability of laws to contracts for 
the acquisition of commercial items, and is intended to limit the 
applicability of laws to contracts for the acquisition of commercial 
items. 41 U.S.C. 1906 provides that if a provision of law contains 
criminal or civil penalties, or if the FAR Council makes a written 
determination that it is not in the best interest of the Federal 
Government to exempt commercial item contracts, the provision of law 
will apply to contracts for the acquisition of commercial items. 
Likewise, 41 U.S.C. 1907 governs the applicability of laws to COTS 
items, with the Administrator for Federal Procurement Policy the 
decision authority to determine that it is in the best interest of the 
Government to apply a provision of law to acquisitions of COTS items in 
the FAR. The Director, DPAP, is the appropriate authority to make 
comparable determinations for regulations to be published in the DFARS, 
which is part of the FAR system of regulations. DoD did not make that 
determination. While FAR part 12 commercial procedures may be used to 
acquire military purpose nondevelopmental items under this pilot 
program, the rule will not apply to the acquisition of commercial 
items.

IV. 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.

V. 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. However, an initial 
regulatory flexibility analysis has been performed and is summarized as 
follows:
    This rule is necessary to implement section 892 of the National 
Defense Authorization Act (NDAA) for Fiscal Year (FY) 2016.
    The objective of the rule is to modify the criteria for the pilot 
program at DFARS subpart 212.71, Pilot Program for the Acquisition of 
Military Purpose Nondevelopmental Items, to increase the opportunities 
for use of the program. The rule removes the criteria that contracts 
must be awarded to ``nontraditional defense contractors'' and awards 
must be made using competitive procedures. The rule also increases the 
dollar threshold for the program to allow use on procurements up to 
$100 million.
    The changes to the pilot program will have a positive economic 
impact on small businesses that did not meet the definition of 
``nontraditional defense contractors'' and have developed products that 
could be applied to a military purpose. According to data available in 
the Federal Procurement Data System for FY 2015, 6,514 unique small 
businesses were awarded a DoD contract in excess of the certified cost 
and pricing threshold ($750,000) and therefore did not meet the 
definition of ``nontraditional defense contractor.'' Prior to the 
changes made by this rule these small businesses were not eligible for 
an award under the pilot program. These small businesses will now be 
able to participate in the pilot program if they are developing a 
military purpose nondevelopmental item.
    This rule does not impose any new reporting, recordkeeping or other 
compliance requirements. The rule does not duplicate, overlap, or 
conflict with any other Federal rules. No significant alternatives were 
identified during the development of this rule.
    DoD invites comments from small business concerns and other 
interested parties on the expected impact of this rule on small 
entities.
    DoD will also consider comments from small entities concerning the 
existing regulations in subparts affected by this rule in accordance 
with 5 U.S.C. 610. Interested parties must submit such comments 
separately and should cite 5 U.S.C. 610 (DFARS Case 2016-D014) in 
correspondence.

VI. 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).

VII. Determination To Issue an Interim Rule

    A determination has been made under the authority of the Secretary 
of Defense that urgent and compelling reasons exist to promulgate this 
interim rule without prior opportunity for public comment. This interim 
rule implements section 892 of the NDAA for FY 2016 (Pub. L. 114-92), 
which amended section 866 of the NDAA for FY 2011 (Pub. L. 111-383) 
to--
     Modify criteria for use of the pilot program in order to 
increase opportunities for use;
     Remove the requirements under the program to use 
competitive procedures;
     Remove requirements for awards to be made to 
nontraditional defense contractors; and
     Increase the threshold for use of the program to contracts 
up to $100 million.
    The purpose of the pilot program is to test whether the streamlined 
procedures, similar to those available for commercial items, can serve 
as an effective incentive for nontraditional defense contractors to 
channel investment and innovation into areas that are useful to DoD and 
provide items developed exclusively at private expense to meet 
validated military requirements. This action is necessary because the 
pilot program expires on December 31, 2019, and, in order to realize 
any of the benefits from the statutory modifications made by this rule 
prior to the expiration of the pilot program, the changes made by this 
rule must take effect immediately. However, pursuant to 41 U.S.C. 1707 
and FAR 1.501-3(b), DoD will consider public comments received in 
response to this interim rule in the formation of the final rule.

List of Subjects in 48 CFR Parts 212 and 252

    Government procurement.

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

    Therefore, 48 CFR parts 212 and 252 are amended as follows:

0
1. The authority citation for 48 CFR parts 212 and 252 continues to 
read as follows:

    Authority: 41 U.S.C. 1303 and 48 CFR chapter 1.

[[Page 42559]]

PART 212--ACQUISITION OF COMMERCIAL ITEMS


212.7100  [Amended]

0
2. Section 212.7100 is amended by removing ``(Pub. L. 111-383)'' and 
adding ``(Pub. L. 111-383), as modified by section 892 of the National 
Defense Authorization Act for Fiscal Year 2016 (Pub. L. 114-92)'' in 
its place.
0
3. Section 212.7101 is revised to read as follows:


212.7101  Definitions.

    As used in this subpart--
    Military-purpose nondevelopmental item means a nondevelopmental 
item that meets a validated military requirement, as determined in 
writing by the responsible program manager, and has been developed 
exclusively at private expense. An item shall not be considered to be 
developed at private expense if development of the item was paid for in 
whole or in part through--
    (1) Independent research and development costs or bid and proposal 
costs, per the definition in FAR 31.205-18, that have been reimbursed 
directly or indirectly by a Federal agency or have been submitted to a 
Federal agency for reimbursement; or
    (2) Foreign government funding.
    Nondevelopmental item is defined in FAR 2.101 and also includes 
previously developed items of supply that require modifications other 
than those customarily available in the commercial marketplace if such 
modifications are consistent with the requirement at 212.7102-1(c)(1).


212.7102-1  [Amended]

0
4. Amend section 212.7102-1 by--
0
a. In the introductory text, removing ``The contracting officer may 
enter into contracts with nontraditional defense contractors for'' and 
adding ``The contracting officer may utilize this pilot program to 
enter into contracts for'' in its place;
0
b. Removing paragraph (a);
0
c. Redesignating paragraphs (b) through (e) as paragraphs (a) through 
(d), respectively;
0
d. In the newly redesignated paragraph (b), removing ``$53.5 million'' 
and adding ``$100 million'' in its place; and
0
e. In the newly redesignated paragraph (c)(2), removing ``(d)(1)'' and 
adding ``(c)(1)'' in its place.


212.7103  [Amended]

0
5. Amend 212.7103 by removing ``in all solicitations'' and adding ``in 
solicitations'' in its place, and removing ``for this pilot program'' 
and adding ``and plan to use the pilot program'' in its place.

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES


252.212-7002  [Amended]

0
6. Amend section 252.212-7002 by--
0
a. Removing the clause date ``(JUN 2012)'' and adding ``(JUN 2016)'' in 
its place;
0
b. In paragraph (a)--
0
i. For the definition of ``nondevelopmental item'', removing ``FAR 
2.101 and for the purpose of this subpart also includes'' and adding 
``FAR 2.101 and also includes'' in its place, and removing ``of DFARS 
212.7102-2(d)(1)'' and adding ``at DFARS 212.7102-1(c)(1)'' in its 
place; and
0
ii. Removing the definition of ``nontraditional defense contractor'';
0
c. In paragraph (b), removing ``Nondevelopmental Items,'' and adding 
``Nondevelopmental Items, as modified by section 892 of the National 
Defense Authorization Act for Fiscal Year 2016 (Pub. L. 114-92),'' in 
its place; and
0
d. Removing paragraph (c).

[FR Doc. 2016-15256 Filed 6-29-16; 8:45 am]
 BILLING CODE 5001-06-P
42558 Federal Register / Vol. 81, No. 126 / Thursday, June 30, 2016 / Rules and Regulations

did not make that determination. Flexibility Act, 5 U.S.C. 601, et seq. Paperwork Reduction Act (44 U.S.C.
Therefore, this rule does not apply However, an initial regulatory flexibility chapter 35).
below the simplified acquisition analysis has been performed and is
threshold. summarized as follows: VII. Determination To Issue an Interim
This rule is necessary to implement Rule
B. Applicability to Contracts for the
Acquisition of Commercial Items, section 892 of the National Defense A determination has been made under
Including COTS Items Authorization Act (NDAA) for Fiscal the authority of the Secretary of Defense
Year (FY) 2016. that urgent and compelling reasons exist
41 U.S.C. 1906 governs the The objective of the rule is to modify
applicability of laws to contracts for the to promulgate this interim rule without
the criteria for the pilot program at prior opportunity for public comment.
acquisition of commercial items, and is DFARS subpart 212.71, Pilot Program
intended to limit the applicability of This interim rule implements section
for the Acquisition of Military Purpose
laws to contracts for the acquisition of 892 of the NDAA for FY 2016 (Pub. L.
Nondevelopmental Items, to increase
commercial items. 41 U.S.C. 1906 the opportunities for use of the program. 114–92), which amended section 866 of
provides that if a provision of law The rule removes the criteria that the NDAA for FY 2011 (Pub. L. 111–
contains criminal or civil penalties, or if contracts must be awarded to 383) to—
the FAR Council makes a written ‘‘nontraditional defense contractors’’ • Modify criteria for use of the pilot
determination that it is not in the best and awards must be made using program in order to increase
interest of the Federal Government to competitive procedures. The rule also opportunities for use;
exempt commercial item contracts, the
increases the dollar threshold for the • Remove the requirements under the
provision of law will apply to contracts
program to allow use on procurements program to use competitive procedures;
for the acquisition of commercial items.
up to $100 million.
Likewise, 41 U.S.C. 1907 governs the
The changes to the pilot program will • Remove requirements for awards to
applicability of laws to COTS items, be made to nontraditional defense
have a positive economic impact on
with the Administrator for Federal contractors; and
small businesses that did not meet the
Procurement Policy the decision
authority to determine that it is in the
definition of ‘‘nontraditional defense • Increase the threshold for use of the
contractors’’ and have developed program to contracts up to $100 million.
best interest of the Government to apply
products that could be applied to a The purpose of the pilot program is to
a provision of law to acquisitions of
military purpose. According to data
COTS items in the FAR. The Director, test whether the streamlined
available in the Federal Procurement
DPAP, is the appropriate authority to procedures, similar to those available
Data System for FY 2015, 6,514 unique
make comparable determinations for for commercial items, can serve as an
small businesses were awarded a DoD
regulations to be published in the effective incentive for nontraditional
contract in excess of the certified cost
DFARS, which is part of the FAR system defense contractors to channel
and pricing threshold ($750,000) and
of regulations. DoD did not make that investment and innovation into areas
therefore did not meet the definition of
determination. While FAR part 12 that are useful to DoD and provide items
‘‘nontraditional defense contractor.’’
commercial procedures may be used to developed exclusively at private
Prior to the changes made by this rule
acquire military purpose expense to meet validated military
these small businesses were not eligible
nondevelopmental items under this requirements. This action is necessary
for an award under the pilot program.
pilot program, the rule will not apply to because the pilot program expires on
These small businesses will now be able
the acquisition of commercial items.
to participate in the pilot program if December 31, 2019, and, in order to
IV. Executive Orders 12866 and 13563 they are developing a military purpose realize any of the benefits from the
Executive Orders (E.O.s) 12866 and nondevelopmental item. statutory modifications made by this
13563 direct agencies to assess all costs This rule does not impose any new rule prior to the expiration of the pilot
and benefits of available regulatory reporting, recordkeeping or other program, the changes made by this rule
alternatives and, if regulation is compliance requirements. The rule does must take effect immediately. However,
necessary, to select regulatory not duplicate, overlap, or conflict with pursuant to 41 U.S.C. 1707 and FAR
approaches that maximize net benefits any other Federal rules. No significant 1.501–3(b), DoD will consider public
(including potential economic, alternatives were identified during the comments received in response to this
environmental, public health and safety development of this rule. interim rule in the formation of the final
effects, distributive impacts, and DoD invites comments from small rule.
equity). E.O. 13563 emphasizes the business concerns and other interested
importance of quantifying both costs parties on the expected impact of this List of Subjects in 48 CFR Parts 212 and
and benefits, of reducing costs, of rule on small entities. 252
harmonizing rules, and of promoting DoD will also consider comments
from small entities concerning the Government procurement.
flexibility. This is not a significant
regulatory action and, therefore, was not existing regulations in subparts affected Jennifer L. Hawes,
subject to review under section 6(b) of by this rule in accordance with 5 U.S.C. Editor, Defense Acquisition Regulations
E.O. 12866, Regulatory Planning and 610. Interested parties must submit such System.
Review, dated September 30, 1993. This comments separately and should cite 5
rule is not a major rule under 5 U.S.C. U.S.C. 610 (DFARS Case 2016–D014) in Therefore, 48 CFR parts 212 and 252
srobinson on DSK5SPTVN1PROD with RULES

804. correspondence. are amended as follows:
V. Regulatory Flexibility Act VI. Paperwork Reduction Act ■ 1. The authority citation for 48 CFR
parts 212 and 252 continues to read as
DoD does not expect this rule to have The rule does not contain any
a significant economic impact on a information collection requirements that follows:
substantial number of small entities require the approval of the Office of Authority: 41 U.S.C. 1303 and 48 CFR
within the meaning of the Regulatory Management and Budget under the chapter 1.

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Federal Register / Vol. 81, No. 126 / Thursday, June 30, 2016 / Rules and Regulations 42559

PART 212—ACQUISITION OF ‘‘and plan to use the pilot program’’ in SUPPLEMENTARY INFORMATION:
COMMERCIAL ITEMS its place.
I. Background
212.7100 [Amended] PART 252—SOLICITATION DoD published a proposed rule in the
■ 2. Section 212.7100 is amended by PROVISIONS AND CONTRACT Federal Register at 80 FR 81496 on
removing ‘‘(Pub. L. 111–383)’’ and CLAUSES December 30, 2015, to consolidate all
adding ‘‘(Pub. L. 111–383), as modified requirements for DoD contractors
252.212–7002 [Amended]
by section 892 of the National Defense performing private security functions in
Authorization Act for Fiscal Year 2016 ■ 6. Amend section 252.212–7002 by— certain designated operational areas in
(Pub. L. 114–92)’’ in its place. ■ a. Removing the clause date ‘‘(JUN the DFARS at 225.302 and the clause at
■ 3. Section 212.7101 is revised to read
2012)’’ and adding ‘‘(JUN 2016)’’ in its 252.225–7039, Defense Contractors
as follows: place; Performing Private Security Functions
■ b. In paragraph (a)— Outside the United States. The rule also
212.7101 Definitions. ■ i. For the definition of proposed to identify the international
As used in this subpart— ‘‘nondevelopmental item’’, removing high-quality assurance standard ‘‘ISO
Military-purpose nondevelopmental ‘‘FAR 2.101 and for the purpose of this 18788: Management System for Private
item means a nondevelopmental item subpart also includes’’ and adding ‘‘FAR Security Operations’’ as an approved
that meets a validated military 2.101 and also includes’’ in its place, alternative to the American standard
requirement, as determined in writing and removing ‘‘of DFARS 212.7102– ‘‘ANSI/ASIS PSC.1–2012’’ currently
by the responsible program manager, 2(d)(1)’’ and adding ‘‘at DFARS required by DFARS clause 252.225–
and has been developed exclusively at 212.7102–1(c)(1)’’ in its place; and 7039. One respondent submitted public
private expense. An item shall not be ■ ii. Removing the definition of comments in response to the proposed
considered to be developed at private ‘‘nontraditional defense contractor’’; rule.
expense if development of the item was ■ c. In paragraph (b), removing
‘‘Nondevelopmental Items,’’ and adding II. Discussion and Analysis
paid for in whole or in part through—
(1) Independent research and ‘‘Nondevelopmental Items, as modified DoD reviewed the public comments in
development costs or bid and proposal by section 892 of the National Defense the development of the final rule. There
costs, per the definition in FAR 31.205– Authorization Act for Fiscal Year 2016 are no changes from the proposed rule
18, that have been reimbursed directly (Pub. L. 114–92),’’ in its place; and in the final rule. A discussion of the
or indirectly by a Federal agency or ■ d. Removing paragraph (c). comments is provided as follows:
have been submitted to a Federal agency [FR Doc. 2016–15256 Filed 6–29–16; 8:45 am] A. Analysis of Public Comments
for reimbursement; or BILLING CODE 5001–06–P
Comment: The respondent proposed
(2) Foreign government funding. that the clause at DFARS 252.225–7039
Nondevelopmental item is defined in be amended to require a contractor to
FAR 2.101 and also includes previously DEPARTMENT OF DEFENSE
demonstrate compliance with the
developed items of supply that require American National Standard, ANSI/
modifications other than those Defense Acquisition Regulations
System ASIS PSC.1–2012, and/or the
customarily available in the commercial International Standard, ISO 18788, by
marketplace if such modifications are producing a valid certificate of
consistent with the requirement at 48 CFR Parts 216, 225, and 252
compliance from a nationally accredited
212.7102–1(c)(1). [Docket DARS–2015–0045] certification body.
212.7102–1 [Amended] RIN 0750–AI69 Response: DoD does not have the
statutory authority to require a
■ 4. Amend section 212.7102–1 by— Defense Federal Acquisition certificate of compliance from a
■ a. In the introductory text, removing Regulation Supplement: Defense certification body accredited by a
‘‘The contracting officer may enter into Contractors Performing Private national accreditation body. Section 833
contracts with nontraditional defense Security Functions (DFARS Case of the National Defense Authorization
contractors for’’ and adding ‘‘The 2015–D021) Act for Fiscal Year 2011 only authorized
contracting officer may utilize this pilot that the Secretary of Defense ‘‘may
program to enter into contracts for’’ in AGENCY: Defense Acquisition provide for the consideration of such
its place; Regulations System, Department of certifications as a factor in the
■ b. Removing paragraph (a); Defense (DoD). evaluation of proposals for award of a
■ c. Redesignating paragraphs (b) ACTION: Final rule. covered contract for the provision of
through (e) as paragraphs (a) through private security functions.’’ Therefore,
(d), respectively; SUMMARY: DoD is issuing a final rule
no changes are made in the rule.
■ d. In the newly redesignated amending the Defense Federal
Comment: The respondent also
paragraph (b), removing ‘‘$53.5 million’’ Acquisition Regulation Supplement
proposed that the clause explicitly state
and adding ‘‘$100 million’’ in its place; (DFARS) to consolidate all requirements
that the requirements of ANSI/ASIS
and for contractors performing private
PSC.1–2012 ‘‘are incumbent upon
■ e. In the newly redesignated
security functions outside the United
subcontractors on relevant DoD
paragraph (c)(2), removing ‘‘(d)(1)’’ and States applicable to DoD contracts in the
contracts.’’
DFARS and make changes regarding
srobinson on DSK5SPTVN1PROD with RULES

adding ‘‘(c)(1)’’ in its place. Response: The Government does not
applicability and high-level quality have privity of contract with
212.7103 [Amended] assurance standards. subcontractors. However, paragraph (f)
■ 5. Amend 212.7103 by removing ‘‘in DATES: Effective June 30, 2016. of the clause requires contractors to
all solicitations’’ and adding ‘‘in FOR FURTHER INFORMATION CONTACT: Ms. include the substance of the clause, to
solicitations’’ in its place, and removing Julie Hammond, telephone 571–372– include paragraph (c)(4) of the clause, in
‘‘for this pilot program’’ and adding 6174. covered subcontracts. Paragraph (c)(4) of

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Document Created: 2018-02-08 07:44:50
Document Modified: 2018-02-08 07:44:50
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		Interim rule.
Dates		Effective June 30, 2016.
Contact		Mr. Dustin Pitsch, telephone 571-372- 6090.
FR Citation		81 FR 42557
RIN Number		0750-AI93
CFR Citation		48 CFR 212 48 CFR 252
81 FR 42557 - Defense Federal Acquisition Regulation Supplement: Pilot Program on Acquisition of Military Purpose Nondevelopmental Items (DFARS Case 2016-D014)

DEPARTMENT OF DEFENSEDefense Acquisition Regulations System

Federal Register Volume 81, Issue 126 (June 30, 2016)

DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System
