81 FR 42608 - Defense Federal Acquisition Regulation Supplement: Administrative Cost To Issue and Administer a Contract (DFARS Case 2016-D020)
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System Federal Register Volume 81, Issue 126 (June 30, 2016)
Defense Acquisition Regulations System
Federal Register Volume 81, Issue 126 (June 30, 2016)
| Page Range | 42608-42609 | |
| FR Document | 2016-15257 |
[Federal Register Volume 81, Number 126 (Thursday, June 30, 2016)] [Proposed Rules] [Pages 42608-42609] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-15257] ----------------------------------------------------------------------- DEPARTMENT OF DEFENSE Defense Acquisition Regulations System 48 CFR Part 252 [Docket DARS-2016-0020] RIN 0750-AI96 Defense Federal Acquisition Regulation Supplement: Administrative Cost To Issue and Administer a Contract (DFARS Case 2016-D020) AGENCY: Defense Acquisition Regulations System, Department of Defense (DoD). ACTION: Proposed rule. ----------------------------------------------------------------------- SUMMARY: DoD is proposing to amend the Defense Federal Acquisition Regulation Supplement (DFARS) to revise the estimated administrative cost to award and administer a contract, for the purpose of evaluating bids for multiple awards. DATES: Comments on the proposed 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-D020, 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-D020'' under the heading ``Enter keyword or ID'' and selecting ``Search.'' Select the link ``Submit a Comment'' that corresponds with ``DFARS Case 2016-D020.'' Follow the instructions provided at the ``Submit a Comment'' screen. Please include your name, company name (if any), and ``DFARS Case 2016-D020'' on your attached document. [cir] Email: [email protected]. Include DFARS Case 2016-D020 in the subject line of the message. [cir] Fax: 571-372-6094. [cir] Mail: Defense Acquisition Regulations System, Attn: Mr. Christopher Stiller, OUSD (AT&L) DPAP/DARS, Room 3B941, 3060 Defense Pentagon, Washington, DC 20301-3060. [[Page 42609]] 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. Christopher Stiller, telephone 571-372-6176. SUPPLEMENTARY INFORMATION: I. Background DoD is proposing to revise the DFARS to implement a policy that addresses the Government's cost to award and administer a contract, for the purpose of evaluating bids for multiple awards. The provision at DFARS 252.247-7008, Evaluation of Bids--Basic, and its Alternate I, reflects that $500 is the administrative cost to the Government for issuing and administering contracts. Based on increase in the Consumer Price Index since 1990, an upward adjustment of $500 in the provision to $1,000 would be a realistic reflection of the actual cost to the Government to issue and administer a contract. This increase conforms to an equivalent adjustment proposed under FAR Case 2016-003 published in the Federal Register on May 12, 2016 (81 FR 29514). II. Discussion and Analysis Amendments to DFARS provision 252.247-7008, Evaluation of Bids-- Basic, and its Alternate I, are proposed by this rule. A monetary adjustment is proposed to increase, from $500 to $1,000, the administrative cost to the Government for issuing and administering each contract to be awarded under a solicitation for the purpose of evaluating bids for multiple awards. 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 does not expect this proposed 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: The clause at DFARS 252.247-7008, Evaluation of Bids, reflects that $500 is the administrative cost to the Government for issuing and administering contracts. The rule is necessary to reestablish a more realistic estimate of the cost to award and administer a contract, for the purpose of evaluating bids for multiple awards. The estimated administrative cost to award and administer a contract has not changed since 1990. The objective of this rule is to revise DFARS 252.247-7008, Evaluation of Bids, to include an inflation adjustment based on increase in the Consumer Price Index since 1990. See http://data.bls.gov/cgi-bin/cpicalc.pldata. The adjustment will change the estimated cost to award and administer a contract from $500 to $1,000. According to the Federal Procurement Data System, in fiscal year 2015, the Federal Government made approximately 2,019 definitive contract awards to small businesses using sealed bidding procedures and 103 indefinite delivery contract awards to small businesses using sealed bidding procedures, 12 of which were multiple awards. Thus, DoD does not expect this rule to have an economic impact on a substantial number of small entities. Additionally, the rule does not place any new requirements on small entities. The rule does not duplicate, overlap, or conflict with any other Federal rules. There are no significant alternatives to the rule which accomplish the stated objectives. 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-D020), in correspondence. 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 Part 252 Government procurement. Jennifer L. Hawes, Editor, Defense Acquisition Regulations System. Therefore, 48 CFR part 252 is proposed to be amended as follows: PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES 0 1. The authority citation for part 252 continues to read as follows: Authority: 41 U.S.C. 1303 and 48 CFR chapter 1. 252.247-7009 [Amended] 0 2. Amend section 252.247-7008 by-- 0 a. Removing the provision date ``(APR 2014)'' and adding ``(DATE)'' in its place; 0 b. In paragraph (b)(1), removing ``$500'' and adding ``$1,000'' in its place; and 0 c. In Alternate I: 0 i. Removing the clause date ``(APR 2014)'' and adding ``(DATE)'' in its place; and 0 ii. In paragraph (b)(1), removing ``$500'' and adding ``$1,000'' in its place. [FR Doc. 2016-15257 Filed 6-29-16; 8:45 am] BILLING CODE 5001-06-P
![42608 Federal Register / Vol. 81, No. 126 / Thursday, June 30, 2016 / Proposed Rules
II. Discussion and Analysis commercial companies to do business (1) The use of customary contract
The proposed rule amends DFARS with DoD. financing (see FAR 32.113), other than
232.104 to state that DoD has made the This rule will apply to DoD loan guarantees and advance payments,
determination that the use of customary contractors, including small entities, is in DoD’s best interest; and
contract financing (see FAR 32.113), where a fixed-price contract with a (2) Further justification of its use in
other than loan guarantees and advance period of performance in excess of one individual acquisitions is unnecessary.
payments, is in DoD’s best interest, and year and meeting the thresholds in FAR [FR Doc. 2016–15246 Filed 6–29–16; 8:45 am]
further justification of its use is 32.104(d) is contemplated. BILLING CODE 5001–06–P
There is no change to reporting or
unnecessary on fixed-price contracts
recordkeeping as a result of this rule.
that meet the dollar thresholds
This rule changes processes that are DEPARTMENT OF DEFENSE
established in FAR 32.104(d), with a
internal to the Government and does not
period of performance in excess of a
have any impact on small entities for Defense Acquisition Regulations
year, and in solicitations expected to
reporting or recordkeeping. System
result in such contracts.
The rule does not duplicate, overlap,
III. Executive Orders 12866 and 13563 or conflict with any other Federal rules. 48 CFR Part 252
Executive Orders (E.O.s) 12866 and There are no known significant
[Docket DARS–2016–0020]
13563 direct agencies to assess all costs alternative approaches to the rule that
would meet the requirements. RIN 0750–AI96
and benefits of available regulatory
DoD invites comments from small
alternatives and, if regulation is Defense Federal Acquisition
business concerns and other interested
necessary, to select regulatory Regulation Supplement:
parties on the expected impact of this
approaches that maximize net benefits Administrative Cost To Issue and
rule on small entities.
(including potential economic, Administer a Contract (DFARS Case
DoD will also consider comments
environmental, public health and safety 2016–D020)
from small entities concerning the
effects, distributive impacts, and
existing regulations in subparts affected AGENCY: Defense Acquisition
equity). E.O. 13563 emphasizes the
by this rule in accordance with 5 U.S.C. Regulations System, Department of
importance of quantifying both costs
610. Interested parties must submit such Defense (DoD).
and benefits, of reducing costs, of
comments separately and should cite 5
harmonizing rules, and of promoting ACTION: Proposed rule.
U.S.C. 610 (DFARS Case 2015–D026), in
flexibility. This is not a significant
correspondence. SUMMARY: DoD is proposing to amend
regulatory action and, therefore, was not
subject to review under section 6(b) of V. Paperwork Reduction Act the Defense Federal Acquisition
E.O. 12866, Regulatory Planning and Regulation Supplement (DFARS) to
The rule does not contain any revise the estimated administrative cost
Review, dated September 30, 1993. This information collection requirements that
rule is not a major rule under 5 U.S.C. to award and administer a contract, for
require the approval of the Office of the purpose of evaluating bids for
804. Management and Budget under the multiple awards.
IV. Regulatory Flexibility Act Paperwork Reduction Act (44 U.S.C.
DATES: Comments on the proposed rule
chapter 35).
DoD does not expect this rule to have should be submitted in writing to the
a significant economic impact on a List of Subjects in 48 CFR Part 232 address shown below on or before
substantial number of small entities Government procurement. August 29, 2016, to be considered in the
within the meaning of the Regulatory formation of a final rule.
Flexibility Act, 5 U.S.C. 601, et seq. Jennifer L. Hawes, ADDRESSES: Submit comments
However, an initial regulatory flexibility Editor, Defense Acquisition Regulations identified by DFARS Case 2016–D020,
analysis has been performed and is System. using any of the following methods:
summarized as follows: Therefore, 48 CFR part 232 is Æ Regulations.gov: http://
DoD is proposing to amend the proposed to be amended as follows: www.regulations.gov. Submit comments
Defense Federal Acquisition Regulation via the Federal eRulemaking portal by
Supplement (DFARS) to state that DoD PART 232—CONTRACT FINANCING entering ‘‘DFARS Case 2016–D020’’
has made the determination that the use under the heading ‘‘Enter keyword or
of customary contract financing (see ■ 1. The authority citation for part 232 ID’’ and selecting ‘‘Search.’’ Select the
Federal Acquisition Regulation (FAR) continues to read as follows: link ‘‘Submit a Comment’’ that
32.113), other than loan guarantees and Authority: 41 U.S.C. 1303 and 48 CFR corresponds with ‘‘DFARS Case 2016–
advance payments, is in DoD’s best chapter 1. D020.’’ Follow the instructions provided
interest, and further justification of its ■ 2. Add section 232.104 to subpart at the ‘‘Submit a Comment’’ screen.
use is unnecessary on fixed-price 232.1 to read as follows: Please include your name, company
contracts that meet the dollar thresholds name (if any), and ‘‘DFARS Case 2016–
established in FAR 32.104(d), with a 232.104 Providing contract financing. D020’’ on your attached document.
period of performance in excess of a For fixed-price contracts with a Æ Email: osd.dfars@mail.mil. Include
year, and in solicitations expected to period of performance in excess of a DFARS Case 2016–D020 in the subject
sradovich on DSK3GDR082PROD with PROPOSALS
result in such contracts. year that meet the dollar thresholds line of the message.
The objective of the proposed rule is established in FAR 32.104(d), and for Æ Fax: 571–372–6094.
to clarify that the use of certain solicitations expected to result in such Æ Mail: Defense Acquisition
customary contract financing does not contracts, in lieu of the requirement at Regulations System, Attn: Mr.
require further justification, as it has FAR 32.104(d)(1)(ii) for the contractor to Christopher Stiller, OUSD (AT&L)
been determined to be in DoD’s best demonstrate actual financial need or the DPAP/DARS, Room 3B941, 3060
interest, and the use of the specified unavailability of private financing, DoD Defense Pentagon, Washington, DC
contract financing is an incentive for has determined that— 20301–3060.
VerDate Sep<11>2014 18:10 Jun 29, 2016 Jkt 238001 PO 00000 Frm 00040 Fmt 4702 Sfmt 4702 E:\FR\FM\30JNP1.SGM 30JNP1](https://thefederalregister.org/doc/81_FR_42734/page/1.svg)
![Federal Register / Vol. 81, No. 126 / Thursday, June 30, 2016 / Proposed Rules 42609
Comments received generally will be rule is not a major rule under 5 U.S.C. Management and Budget under the
posted without change to http:// 804. Paperwork Reduction Act (44 U.S.C.
www.regulations.gov, including any chapter 35).
IV. Regulatory Flexibility Act
personal information provided. To
DoD does not expect this proposed List of Subjects in 48 CFR Part 252
confirm receipt of your comment(s),
please check www.regulations.gov, rule to have a significant economic Government procurement.
approximately two to three days after impact on a substantial number of small
Jennifer L. Hawes,
submission to verify posting (except entities within the meaning of the
Regulatory Flexibility Act, 5 U.S.C. 601, Editor, Defense Acquisition Regulations
allow 30 days for posting of comments System.
submitted by mail). et seq. However, an initial regulatory
FOR FURTHER INFORMATION CONTACT: Mr. flexibility analysis has been performed Therefore, 48 CFR part 252 is
Christopher Stiller, telephone 571–372– and is summarized as follows: proposed to be amended as follows:
6176. The clause at DFARS 252.247–7008,
Evaluation of Bids, reflects that $500 is PART 252—SOLICITATION
SUPPLEMENTARY INFORMATION: PROVISIONS AND CONTRACT
the administrative cost to the
I. Background Government for issuing and CLAUSES
DoD is proposing to revise the DFARS administering contracts. The rule is ■ 1. The authority citation for part 252
to implement a policy that addresses the necessary to reestablish a more realistic continues to read as follows:
Government’s cost to award and estimate of the cost to award and
administer a contract, for the purpose of Authority: 41 U.S.C. 1303 and 48 CFR
administer a contract, for the purpose of
evaluating bids for multiple awards. The chapter 1.
evaluating bids for multiple awards. The
provision at DFARS 252.247–7008, estimated administrative cost to award 252.247–7009 [Amended]
Evaluation of Bids—Basic, and its and administer a contract has not ■ 2. Amend section 252.247–7008 by—
Alternate I, reflects that $500 is the changed since 1990. ■ a. Removing the provision date ‘‘(APR
administrative cost to the Government The objective of this rule is to revise 2014)’’ and adding ‘‘(DATE)’’ in its
for issuing and administering contracts. DFARS 252.247–7008, Evaluation of place;
Based on increase in the Consumer Bids, to include an inflation adjustment ■ b. In paragraph (b)(1), removing
Price Index since 1990, an upward based on increase in the Consumer Price ‘‘$500’’ and adding ‘‘$1,000’’ in its
adjustment of $500 in the provision to Index since 1990. See http:// place; and
$1,000 would be a realistic reflection of data.bls.gov/cgi-bin/cpicalc.pldata. The ■ c. In Alternate I:
the actual cost to the Government to adjustment will change the estimated ■ i. Removing the clause date ‘‘(APR
issue and administer a contract. This cost to award and administer a contract 2014)’’ and adding ‘‘(DATE)’’ in its
increase conforms to an equivalent from $500 to $1,000. place; and
adjustment proposed under FAR Case According to the Federal Procurement ■ ii. In paragraph (b)(1), removing
2016–003 published in the Federal Data System, in fiscal year 2015, the ‘‘$500’’ and adding ‘‘$1,000’’ in its
Register on May 12, 2016 (81 FR 29514). Federal Government made place.
approximately 2,019 definitive contract
II. Discussion and Analysis awards to small businesses using sealed
[FR Doc. 2016–15257 Filed 6–29–16; 8:45 am]
BILLING CODE 5001–06–P
Amendments to DFARS provision bidding procedures and 103 indefinite
252.247–7008, Evaluation of Bids— delivery contract awards to small
Basic, and its Alternate I, are proposed businesses using sealed bidding
by this rule. A monetary adjustment is procedures, 12 of which were multiple DEPARTMENT OF TRANSPORTATION
proposed to increase, from $500 to awards. Thus, DoD does not expect this
$1,000, the administrative cost to the Pipeline and Hazardous Materials
rule to have an economic impact on a
Government for issuing and Safety Administration
substantial number of small entities.
administering each contract to be Additionally, the rule does not place
awarded under a solicitation for the 49 CFR Parts 171, 172, 173, 176, 178,
any new requirements on small entities.
purpose of evaluating bids for multiple The rule does not duplicate, overlap, and 180
awards. or conflict with any other Federal rules. [Docket No. PHMSA–2015–0102 (HM–219A)]
III. Executive Orders 12866 and 13563 There are no significant alternatives to
RIN 2137–AF09
the rule which accomplish the stated
Executive Orders (E.O.s) 12866 and objectives.
13563 direct agencies to assess all costs Hazardous Materials: Miscellaneous
DoD invites comments from small Petitions for Rulemaking (RRR)
and benefits of available regulatory business concerns and other interested
alternatives and, if regulation is parties on the expected impact of this AGENCY: Pipeline and Hazardous
necessary, to select regulatory rule on small entities. Materials Safety Administration
approaches that maximize net benefits DoD will also consider comments (PHMSA), DOT.
(including potential economic, from small entities concerning the ACTION: Notice of proposed rulemaking
environmental, public health and safety existing regulations in subparts affected (NPRM).
effects, distributive impacts, and by this rule in accordance with 5 U.S.C.
equity). E.O. 13563 emphasizes the 610. Interested parties must submit such SUMMARY: In response to petitions for
sradovich on DSK3GDR082PROD with PROPOSALS
importance of quantifying both costs comments separately and should cite 5 rulemaking submitted by the regulated
and benefits, of reducing costs, of U.S.C. 610 (DFARS Case 2016–D020), in community, PHMSA proposes to amend
harmonizing rules, and of promoting correspondence. the Hazardous Materials Regulations
flexibility. This is not a significant (HMR; 49 CFR parts 171 through 180) to
regulatory action and, therefore, was not V. Paperwork Reduction Act update, clarify, or provide relief from
subject to review under section 6(b) of The rule does not contain any miscellaneous regulatory requirements.
E.O. 12866, Regulatory Planning and information collection requirements that Specifically, PHMSA is proposing
Review, dated September 30, 1993. This require the approval of the Office of amendments that include, but are not
VerDate Sep<11>2014 18:10 Jun 29, 2016 Jkt 238001 PO 00000 Frm 00041 Fmt 4702 Sfmt 4702 E:\FR\FM\30JNP1.SGM 30JNP1](https://thefederalregister.org/doc/81_FR_42734/page/2.svg)
Document Created: 2018-02-08 07:44:38
Document Modified: 2018-02-08 07:44:38
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Proposed Rules | |
| Action | Proposed rule. | |
| Dates | Comments on the proposed rule should be submitted in writing to | |
| Contact | Mr. Christopher Stiller, telephone 571-372-6176. | |
| FR Citation | 81 FR 42608 | |
| RIN Number | 0750-AI96 |
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