81 FR 42562 - Defense Federal Acquisition Regulation Supplement: Treatment of Interagency and State and Local Purchases (DFARS Case 2016-D009)

DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System

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

Page Range		42562-42563
FR Document		2016-15249

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 2016 that is entitled ``Treatment of Interagency and State and Local Purchases.'' This section provides that contracts executed by DoD as a result of the transfer of contracts from the General Services Administration or for which DoD serves as an item manager for products on behalf of the General Services Administration shall not be subject to certain domestic source restrictions, to the extent that such contracts are for the purchase of products by other Federal agencies or State or local governments.

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

[Federal Register Volume 81, Number 126 (Thursday, June 30, 2016)]
[Rules and Regulations]
[Pages 42562-42563]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-15249]


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DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Part 225

[Docket DARS-2016-0007]
RIN 0750-AI88


Defense Federal Acquisition Regulation Supplement: Treatment of 
Interagency and State and Local Purchases (DFARS Case 2016-D009)

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 2016 that is 
entitled ``Treatment of Interagency and State and Local Purchases.'' 
This section provides that contracts executed by DoD as a result of the 
transfer of contracts from the General Services Administration or for 
which DoD serves as an item manager for products on behalf of the 
General Services Administration shall not be subject to certain 
domestic source restrictions, to the extent that such contracts are for 
the purchase of products by other Federal agencies or State or local 
governments.

DATES: Effective June 30, 2016.

FOR FURTHER INFORMATION CONTACT: Ms. Amy G. Williams, telephone 571-
372-6106.

SUPPLEMENTARY INFORMATION:

I. Background

    DoD published a proposed rule in the Federal Register at 81 FR 
17053 on March 25, 2016, to implement section 897 of the National 
Defense Authorization Act for Fiscal Year 2016 (Pub. L. 114-92). 
Section 897 provides that contracts executed by DoD as a result of the 
transfer of contracts from the General Services Administration or for 
which DoD serves as an item manager for products on behalf of the 
General Services Administration shall not be subject to the 
requirements under 10 U.S.C. chapter 148 (National Defense Technology 
and Industrial Base, Defense Investment, and Defense Conversion), to 
the extent that such contracts are for the purchase of products by 
other Federal agencies or State or local governments. One respondent 
submitted public comments in response to the proposed rule.

II. Discussion and Analysis

    There are no changes from the proposed rule made in the final rule. 
The one respondent that submitted a comment fully supported the 
proposed rule.

III. 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.

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

    A final regulatory flexibility analysis (FRFA) has been prepared 
consistent with the Regulatory Flexibility Act, 5 U.S.C. 601, et seq. 
The FRFA is summarized as follows:
    This rule implements section 897 of the National Defense 
Authorization Act for Fiscal Year 2016. The objective of this rule is 
to eliminate the domestic source restrictions of 10 U.S.C. chapter 148 
when contracts executed by DoD as a result of the transfer of contracts 
from the General Services Administration or for which DoD serves as an 
item manager for products on behalf of the General Services 
Administration, to the extent that such contracts are for the purchase 
of products by other Federal agencies or State or local governments.
    There were no significant issues raised by the public in response 
to the initial regulatory flexibility analysis.
    DoD does not anticipate frequent application of this rule. The rule 
removes the domestic source restriction for the specified items in the 
specified circumstances. In the rare instance in which the 
circumstances of the statute apply, it is possible that an item could 
be acquired from a foreign source, rather than a domestic source, which 
could potentially be a small business. It is not possible to estimate 
the number of small entities that may be affected, because it is 
unknown the extent to which the given circumstances may occur.
    There are no projected reporting, recordkeeping, or other 
compliance requirements.
    DoD has not identified any alternatives that would minimize any 
economic impact on small entities and still meet the requirements of 
the statute.

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).

List of Subjects in 48 CFR Part 225

    Government procurement.

Jennifer L. Hawes,
Editor, Defense Acquisition Regulations System.
    Therefore, 48 CFR part 225 is amended as follows:

PART 225--FOREIGN ACQUISITION

0
1. The authority citation for 48 CFR part 225 continues to read as 
follows:

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


0
2. Amend section 225.7002-2 by adding paragraph (o) to read as follows:


225.7002-2  Exceptions.

* * * * *
    (o) Acquisitions that are interagency, State, or local purchases 
that are executed by DoD as a result of the transfer of contracts from 
the General Services Administration or for which DoD serves as an item 
manager for products on behalf of the General Services Administration. 
According to section 897 of the National Defense

[[Page 42563]]

Authorization Act for Fiscal Year 2016 (Pub. L. 114-92), such contracts 
shall not be subject to requirements under chapter 148 of title 10, 
United States Code (including 10 U.S.C. 2533a), to the extent such 
contracts are for purchases of products by other Federal agencies or 
State or local governments.

[FR Doc. 2016-15249 Filed 6-29-16; 8:45 am]
BILLING CODE 5001-06-P

42562 Federal Register / Vol. 81, No. 126 / Thursday, June 30, 2016 / Rules and Regulations

or denying award fees for such period that contracts executed by DoD as a for which DoD serves as an item
or for recovering all or part of award result of the transfer of contracts from manager for products on behalf of the
fees previously paid for such period. the General Services Administration or General Services Administration, to the
(e) Rule of construction. The duty of for which DoD serves as an item extent that such contracts are for the
the Contractor to comply with the manager for products on behalf of the purchase of products by other Federal
requirements of this clause shall not be General Services Administration shall agencies or State or local governments.
reduced or diminished by the failure of not be subject to the requirements under There were no significant issues
a higher- or lower-tier Contractor or 10 U.S.C. chapter 148 (National Defense raised by the public in response to the
subcontractor to comply with the clause Technology and Industrial Base, initial regulatory flexibility analysis.
requirements or by a failure of the Defense Investment, and Defense DoD does not anticipate frequent
contracting activity to provide required Conversion), to the extent that such application of this rule. The rule
oversight. contracts are for the purchase of removes the domestic source restriction
* * * * * products by other Federal agencies or for the specified items in the specified
[FR Doc. 2016–15247 Filed 6–29–16; 8:45 am] State or local governments. One circumstances. In the rare instance in
BILLING CODE 5001–06–P respondent submitted public comments which the circumstances of the statute
in response to the proposed rule. apply, it is possible that an item could
be acquired from a foreign source, rather
II. Discussion and Analysis
DEPARTMENT OF DEFENSE than a domestic source, which could
There are no changes from the potentially be a small business. It is not
Defense Acquisition Regulations proposed rule made in the final rule. possible to estimate the number of small
System The one respondent that submitted a entities that may be affected, because it
comment fully supported the proposed is unknown the extent to which the
48 CFR Part 225 rule. given circumstances may occur.
[Docket DARS–2016–0007] III. Applicability to Contracts at or There are no projected reporting,
Below the Simplified Acquisition recordkeeping, or other compliance
RIN 0750–AI88 requirements.
Threshold and for Commercial Items,
Including Commercially Available Off- DoD has not identified any
Defense Federal Acquisition
the-Shelf Items alternatives that would minimize any
Regulation Supplement: Treatment of
economic impact on small entities and
Interagency and State and Local This case does not add any new still meet the requirements of the
Purchases (DFARS Case 2016–D009) provisions or clauses or impact any statute.
AGENCY: Defense Acquisition existing provisions or clauses.
VI. Paperwork Reduction Act
Regulations System, Department of IV. Executive Orders 12866 and 13563
Defense (DoD). The rule does not contain any
Executive Orders (E.O.s) 12866 and information collection requirements that
ACTION: Final rule. 13563 direct agencies to assess all costs require the approval of the Office of
SUMMARY: DoD is issuing a final rule and benefits of available regulatory Management and Budget under the
amending the Defense Federal alternatives and, if regulation is Paperwork Reduction Act (44 U.S.C.
Acquisition Regulation Supplement necessary, to select regulatory chapter 35).
(DFARS) to implement a section of the approaches that maximize net benefits
(including potential economic, List of Subjects in 48 CFR Part 225
National Defense Authorization Act for
Fiscal Year 2016 that is entitled environmental, public health and safety Government procurement.
‘‘Treatment of Interagency and State and effects, distributive impacts, and
equity). E.O. 13563 emphasizes the Jennifer L. Hawes,
Local Purchases.’’ This section provides
importance of quantifying both costs Editor, Defense Acquisition Regulations
that contracts executed by DoD as a System.
result of the transfer of contracts from and benefits, of reducing costs, of
harmonizing rules, and of promoting Therefore, 48 CFR part 225 is
the General Services Administration or
flexibility. This is not a significant amended as follows:
for which DoD serves as an item
manager for products on behalf of the regulatory action and, therefore, was not
subject to review under section 6(b) of PART 225—FOREIGN ACQUISITION
General Services Administration shall
not be subject to certain domestic source E.O. 12866, Regulatory Planning and ■ 1. The authority citation for 48 CFR
restrictions, to the extent that such Review, dated September 30, 1993. This part 225 continues to read as follows:
contracts are for the purchase of rule is not a major rule under 5 U.S.C.
804. Authority: 41 U.S.C. 1303 and 48 CFR
products by other Federal agencies or chapter 1.
State or local governments. V. Regulatory Flexibility Act
■ 2. Amend section 225.7002–2 by
DATES: Effective June 30, 2016.
A final regulatory flexibility analysis adding paragraph (o) to read as follows:
FOR FURTHER INFORMATION CONTACT: Ms. (FRFA) has been prepared consistent
Amy G. Williams, telephone 571–372– with the Regulatory Flexibility Act, 5 225.7002–2 Exceptions.
6106. U.S.C. 601, et seq. The FRFA is * * * * *
SUPPLEMENTARY INFORMATION: summarized as follows: (o) Acquisitions that are interagency,
This rule implements section 897 of State, or local purchases that are
srobinson on DSK5SPTVN1PROD with RULES

I. Background the National Defense Authorization Act executed by DoD as a result of the
DoD published a proposed rule in the for Fiscal Year 2016. The objective of transfer of contracts from the General
Federal Register at 81 FR 17053 on this rule is to eliminate the domestic Services Administration or for which
March 25, 2016, to implement section source restrictions of 10 U.S.C. chapter DoD serves as an item manager for
897 of the National Defense 148 when contracts executed by DoD as products on behalf of the General
Authorization Act for Fiscal Year 2016 a result of the transfer of contracts from Services Administration. According to
(Pub. L. 114–92). Section 897 provides the General Services Administration or section 897 of the National Defense

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Federal Register / Vol. 81, No. 126 / Thursday, June 30, 2016 / Rules and Regulations 42563

Authorization Act for Fiscal Year 2016 II. Applicability to Contracts at or E.O. 12866, Regulatory Planning and
(Pub. L. 114–92), such contracts shall Below the Simplified Acquisition Review, dated September 30, 1993. This
not be subject to requirements under Threshold and for Commercial Items, rule is not a major rule under 5 U.S.C.
chapter 148 of title 10, United States Including Commercially Available Off- 804.
Code (including 10 U.S.C. 2533a), to the the-Shelf Items V. Regulatory Flexibility Act
extent such contracts are for purchases This rule only updates the list of
of products by other Federal agencies or The Regulatory Flexibility Act does
designated countries in the DFARS by not apply to this rule because this final
State or local governments. adding the newly designated country of rule does not constitute a significant
[FR Doc. 2016–15249 Filed 6–29–16; 8:45 am] Ukraine. The definition of ‘‘designated DFARS revision within the meaning of
BILLING CODE 5001–06–P country’’ is updated in each of the FAR 1.501–1, and 41 U.S.C. 1707 does
following clauses; however, this not require publication for public
revision does not impact the clause comment.
DEPARTMENT OF DEFENSE prescriptions for use, or applicability at
or below the simplified acquisition VI. Paperwork Reduction Act
Defense Acquisition Regulations threshold, or applicability to This rule affects the information
System commercial items. The clauses are: collection requirements in the
DFARS 252.225–7017, Photovoltaic provisions at DFARS 252.225–7020,
48 CFR Part 252 Devices; DFARS 252.225–7021, Trade Trade Agreements Certificate, and
Agreements; and DFARS 252.225–7045, 252.225–7018, Photovoltaic Devices—
[Docket DARS–2016–0022] Balance of Payments Program— Certificate, currently approved under
Construction Material Under Trade OMB Control Number 0704–0229,
RIN 0750–AI98
Agreements. entitled ‘‘Defense Federal Acquisition
Regulation Supplement Part 225,
III. Publication of This Final Rule for
Defense Federal Acquisition Foreign Acquisition, and related
Public Comment is not Required by
Regulation Supplement: New clauses,’’ in accordance with the
Statute
Designated Country—Ukraine (DFARS Paperwork Reduction Act (44 U.S.C.
Case 2016–D026) The statute that applies to the chapter 35). The impact, however, is
publication of the Federal Acquisition negligible, because the rule only affects
AGENCY: Defense Acquisition Regulation (FAR) is 41 U.S.C. 1707 the response of an offeror that is offering
Regulations System, Department of entitled ‘‘Publication of Proposed a product of Ukraine in an acquisition
Defense (DoD). Regulations.’’ Paragraph (a)(1) of the that exceeds $191,000. In 252.225–7018,
statute requires that a procurement the offeror of a product from Ukraine
ACTION: Final rule. policy, regulation, procedure or form must now check a box at (d)(6)(i) of the
(including an amendment or provision. However, the offeror no
SUMMARY: DoD is issuing a final rule to modification thereof) must be published longer needs to list a product from
amend the Defense Federal Acquisition for public comment if it relates to the Ukraine under ‘‘other end products’’ at
Regulation Supplement (DFARS) to add expenditure of appropriated funds, and 252.225–7020(c)(2), because Ukraine is
Ukraine as a new designated country has either a significant effect beyond the now a designated country.
under the World Trade Organization internal operating procedures of the
Government Procurement Agreement. agency issuing the policy, regulation, List of Subjects in 48 CFR Part 252
procedure or form, or has a significant Government procurement.
DATES: Effective June 30, 2016. cost or administrative impact on Jennifer L. Hawes,
FOR FURTHER INFORMATION CONTACT: Mr. contractors or offerors. This final rule is
Editor, Defense Acquisition Regulations
Christopher Stiller, telephone 571–372– not required to be published for public System.
6176. comment, because it is just updating the
lists of designated countries in order to Therefore, 48 CFR part 252 is
SUPPLEMENTARY INFORMATION:
reflect that Ukraine is now a member of amended as follows:
I. Background the WTO GPA. These requirements PART 252—SOLICITATION
affect only the internal operating PROVISIONS AND CONTRACT
On November 11, 2015, the World procedures of the Government. CLAUSES
Trade Organization (WTO) Committee
on Government Procurement approved IV. Executive Orders 12866 and 13563
■ 1. The authority citation for 48 CFR
the accession of Ukraine to the WTO Executive Orders (E.O.s) 12866 and part 252 continues to read as follows:
Government Procurement Agreement 13563 direct agencies to assess all costs
Authority: 41 U.S.C. 1303 and 48 CFR
(GPA). Ukraine submitted its instrument and benefits of available regulatory chapter 1.
of accession to the Secretary General of alternatives and, if regulation is
the WTO on April 18, 2016. The GPA necessary, to select regulatory 252.225–7017 [Amended]
entered into force for Ukraine on May approaches that maximize net benefits ■ 2. Amend section 252.225–7017 by—
18, 2016. The United States, which is (including potential economic, ■ a. Removing the clause date of ‘‘(JAN
also a party to the GPA, has agreed to environmental, public health and safety 2016)’’ and adding ‘‘(JUN 2016)’’ in its
waive discriminatory purchasing effects, distributive impacts, and place; and
srobinson on DSK5SPTVN1PROD with RULES

requirements for eligible products and equity). E.O. 13563 emphasizes the ■ b. In paragraph (a), in the definition of
suppliers of Ukraine beginning on May importance of quantifying both costs ‘‘designated country’’ in paragraph (i),
18, 2016. Therefore, this rule adds and benefits, of reducing costs, of adding, in alphabetical order, the
Ukraine to the list of WTO GPA harmonizing rules, and of promoting country of ‘‘Ukraine’’.
countries wherever it appears in the flexibility. This is not a significant
DFARS, as part of the definition of regulatory action and, therefore, was not 252.225–7021 [Amended]
‘‘designated country’’. subject to review under section 6(b) of ■ 3. Amend section 252.225–7021 by—

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Document Created: 2018-02-08 07:45:40
Document Modified: 2018-02-08 07:45:40

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 30, 2016.
Contact		Ms. Amy G. Williams, telephone 571- 372-6106.
FR Citation		81 FR 42562
RIN Number		0750-AI88

81 FR 42562 - Defense Federal Acquisition Regulation Supplement: Treatment of Interagency and State and Local Purchases (DFARS Case 2016-D009)

DEPARTMENT OF DEFENSEDefense Acquisition Regulations System

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

DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System