81 FR 67773 - Federal Acquisition Regulation; Amendment Relating to Multi-Year Contract Authority for Acquisition of Property

DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

Federal Register Volume 81, Issue 190 (September 30, 2016)

Page Range		67773-67774
FR Document		2016-23201

DoD, GSA, and NASA are issuing a final rule amending the Federal Acquisition Regulation (FAR) to implement a section of the National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2016, to require that ``significant'' savings would be achieved by entering into a multi-year contract.

Federal Register, Volume 81 Issue 190 (Friday, September 30, 2016)

[Federal Register Volume 81, Number 190 (Friday, September 30, 2016)]
[Rules and Regulations]
[Pages 67773-67774]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-23201]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Part 17

[FAC 2005-91; FAR Case 2016-006; Item VII; Docket No. 2016-0006, 
Sequence No. 1]
RIN 9000-AN24


Federal Acquisition Regulation; Amendment Relating to Multi-Year 
Contract Authority for Acquisition of Property

AGENCY: Department of Defense (DoD), General Services Administration 
(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Final rule.

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SUMMARY: DoD, GSA, and NASA are issuing a final rule amending the 
Federal Acquisition Regulation (FAR) to implement a section of the 
National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2016, to 
require that ``significant'' savings would be achieved by entering into 
a multi-year contract.

DATES: Effective: October 31, 2016.

FOR FURTHER INFORMATION CONTACT: Mr. Michael O. Jackson, Procurement 
Analyst, at 202-208-4949, for clarification of content. For information 
pertaining to status or publication schedules, contact the Regulatory 
Secretariat at 202-501-4755. Please cite FAC 2005-91, FAR Case 2016-
006.

SUPPLEMENTARY INFORMATION:

I. Background

    DoD, GSA, and NASA are amending FAR subpart 17.1 to implement 
section 811 of the NDAA for FY 2016 (Pub. L. 114-92). Section 811 
amended subsection (a)(1) of 10 U.S.C. 2306b by striking 
``substantial'' and inserting ``significant.'' This rule makes 
conforming changes at FAR 17.105-1(b)(1) to state that the head of an 
agency may enter into a multi-year contract for supplies, if the use of 
such a contract will result in significant savings of the total 
estimated costs of carrying out the program through annual contracts. 
This change applies to the DoD, NASA, and the Coast Guard.

II. Publication of This Final Rule for Public Comment Is Not Required 
by Statute

    Publication of proposed regulations, 41 U.S.C. 1707, is the statute 
which applies to the publication of the Federal

[[Page 67774]]

Acquisition Regulation. Paragraph (a)(1) of the statute requires that a 
procurement policy, regulation, procedure, or form (including an 
amendment or modification thereof) must be published for public comment 
if it relates to the expenditure of appropriated funds, and has either 
a significant effect beyond the internal operating procedures of the 
agency issuing the policy, regulation, procedure, or form, or has a 
significant cost or administrative impact on contractors or offerors. 
This final rule is not required to be published for public comment, 
because it addresses an internal decision by the head of agency to 
enter into a multi-year contract for supplies if certain criteria are 
met. These requirements affect only the internal operating procedures 
of the Government.

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

    The Regulatory Flexibility Act does not apply to this rule because 
this final rule does not constitute a significant FAR revision within 
the meaning of FAR 1.501-1 and 41 U.S.C. 1707 does not require 
publication for public comment.

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 Subject in 48 CFR Part 17

    Government procurement.

    Dated: September 19, 2016.
William F. Clark,
Director, Office of Government-wide Acquisition Policy, Office of 
Acquisition Policy, Office of Government-wide Policy.

    Therefore, DoD, GSA, and NASA amend 48 CFR part 17 as set forth 
below:

PART 17--SPECIAL CONTRACTING METHODS

0
1. The authority citation for 48 CFR part 17 continues to read as 
follows:

    Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 51 
U.S.C. 20113.


17.105-1   [Amended]

0
2. Amend section 17.105-1 by removing from paragraph (b)(1) 
``substantial'' and adding ``significant'' in its place.

[FR Doc. 2016-23201 Filed 9-29-16; 8:45 am]
 BILLING CODE 6820-EP-P

Federal Register / Vol. 81, No. 190 / Friday, September 30, 2016 / Rules and Regulations 67773

proposed solicitations to increase the Solicitation of Offers From Small Business DEPARTMENT OF DEFENSE
probability of participation by small Concerns and Small Business Teaming
businesses as prime contractors through Arrangements or Joint Ventures (Multiple- GENERAL SERVICES
Small Business Teaming Arrangements; Award Contracts) (Oct 2016) ADMINISTRATION
* * * * * (a) Definition. ‘‘Small Business Teaming
(11) * * * Arrangement,’’ as used in this provision— NATIONAL AERONAUTICS AND
(ii) Adequacy of consolidated or (1) Means an arrangement where— SPACE ADMINISTRATION
bundled contract documentation and (i) Two or more small business concerns
justifications; and have formed a joint venture; or 48 CFR Part 17
(iii) Actions taken to mitigate the (ii) A small business offeror agrees with
[FAC 2005–91; FAR Case 2016–006; Item
effects of necessary and justified one or more other small business concerns to VII; Docket No. 2016–0006, Sequence No.
consolidation or bundling on small have them act as its subcontractors under a 1]
businesses. specified Government contract. A Small
Business Teaming Arrangement between the RIN 9000–AN24
* * * * *
offeror and its small business
■ 16. Amend section 19.202–1 by subcontractor(s) exists through a written
Federal Acquisition Regulation;
revising paragraph (e)(1)(iii), the agreement between the parties that— Amendment Relating to Multi-Year
introductory text of paragraph (e)(2), (A) Is specifically referred to as a ‘‘Small Contract Authority for Acquisition of
and paragraphs (e)(2)(v), (e)(3), and Business Teaming Arrangement’’; and Property
(e)(4) to read as follows: (B) Sets forth the different responsibilities, AGENCY: Department of Defense (DoD),
19.202–1 Encouraging small business roles, and percentages (or other allocations) General Services Administration (GSA),
participation in acquisitions. of work as it relates to the acquisition; and National Aeronautics and Space
(2)(i) For civilian agencies, may include Administration (NASA).
* * * * *
two business concerns in a mentor-protégé
(e)(1) * * * ACTION: Final rule.
relationship when both the mentor and the
(iii) The proposed acquisition is for a
protégé are small or the protégé is small and SUMMARY: DoD, GSA, and NASA are
consolidated or bundled requirement.
the concerns have received an exception to issuing a final rule amending the
(See 7.107–5(a) for mandatory 30-day
affiliation pursuant to 13 CFR Federal Acquisition Regulation (FAR) to
notice requirement to incumbent small 121.103(h)(3)(ii) or (iii).
business concerns.) The contracting implement a section of the National
(ii) For DoD, may include two business Defense Authorization Act (NDAA) for
officer shall provide all information concerns in a mentor-protégé relationship in
relative to the justification for the Fiscal Year (FY) 2016, to require that
the Department of Defense Pilot Mentor- ‘‘significant’’ savings would be achieved
consolidation or bundling, including the Protégé Program (see section 831 of the
acquisition plan or strategy, and if the by entering into a multi-year contract.
National Defense Authorization Act for Fiscal
acquisition involves substantial Year 1991 (Pub. L. 101–510; 10 U.S.C. 2302 DATES: Effective: October 31, 2016.
bundling, the information identified in note)) when both the mentor and the protégé FOR FURTHER INFORMATION CONTACT: Mr.
7.107–4. The contracting officer shall are small. There is no exception to joint Michael O. Jackson, Procurement
also provide the same information to the venture size affiliation for offers received Analyst, at 202–208–4949, for
agency Office of Small and from teaming arrangements under the clarification of content. For information
Disadvantaged Business Utilization. Department of Defense Pilot Mentor-Protégé pertaining to status or publication
(2) Provide a statement explaining Program; and schedules, contact the Regulatory
why the— (3) See 13 CFR 121.103(b)(9) regarding the Secretariat at 202–501–4755. Please cite
* * * * * exception to affiliation for offers received FAC 2005–91, FAR Case 2016–006.
(v) Consolidation or bundling is from Small Business Teaming Arrangements SUPPLEMENTARY INFORMATION:
necessary and justified. in the case of a solicitation of offers for a
(3) Process the 30-day notification bundled contract with a reserve. I. Background
concurrently with other processing (b) The Government is soliciting and will DoD, GSA, and NASA are amending
steps required prior to the issuance of consider offers from any responsible source, FAR subpart 17.1 to implement section
the solicitation. including responsible small business 811 of the NDAA for FY 2016 (Pub. L.
(4) If the contracting officer rejects the concerns and offers from Small Business 114–92). Section 811 amended
SBA procurement center Teaming Arrangements or joint ventures of subsection (a)(1) of 10 U.S.C. 2306b by
representative’s recommendation made small business concerns. striking ‘‘substantial’’ and inserting
in accordance with 19.402(c)(2), ‘‘significant.’’ This rule makes
(End of provision)
document the basis for the rejection and conforming changes at FAR 17.105–
notify the SBA procurement center [FR Doc. 2016–23199 Filed 9–29–16; 8:45 am] 1(b)(1) to state that the head of an
representative in accordance with BILLING CODE 6820–EP–P agency may enter into a multi-year
19.505. contract for supplies, if the use of such
a contract will result in significant
PART 52—SOLICITATION PROVISIONS savings of the total estimated costs of
AND CONTRACT CLAUSES carrying out the program through
■ 17. Add section 52.207–6 to read as annual contracts. This change applies to
asabaliauskas on DSK3SPTVN1PROD with RULES

follows: the DoD, NASA, and the Coast Guard.
II. Publication of This Final Rule for
52.207–6 Solicitation of Offers from Small
Business Concerns and Small Business
Public Comment Is Not Required by
Teaming Arrangements or Joint Ventures Statute
(Multiple-Award Contracts). Publication of proposed regulations,
As prescribed in 7.107–6, insert the 41 U.S.C. 1707, is the statute which
following provision: applies to the publication of the Federal

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67774 Federal Register / Vol. 81, No. 190 / Friday, September 30, 2016 / Rules and Regulations

Acquisition Regulation. Paragraph (a)(1) Dated: September 19, 2016. I. Background
of the statute requires that a William F. Clark,
Ukraine and Moldova recently
procurement policy, regulation, Director, Office of Government-wide became parties to the WTO GPA on May
procedure, or form (including an Acquisition Policy, Office of Acquisition 18, 2016, and July 14, 2016,
amendment or modification thereof) Policy, Office of Government-wide Policy.
respectively. The Trade Agreements Act
must be published for public comment Therefore, DoD, GSA, and NASA (19 U.S.C. 2501 et seq.) provides the
if it relates to the expenditure of amend 48 CFR part 17 as set forth authority for the President to waive the
appropriated funds, and has either a below: Buy American statute and other
significant effect beyond the internal discriminatory provisions for eligible
operating procedures of the agency PART 17—SPECIAL CONTRACTING products from countries that have
issuing the policy, regulation, METHODS signed an international trade agreement
procedure, or form, or has a significant ■ 1. The authority citation for 48 CFR with the United States (such as the
cost or administrative impact on part 17 continues to read as follows: WTO GPA). The President has delegated
contractors or offerors. This final rule is this authority to the U.S. Trade
Authority: 40 U.S.C. 121(c); 10 U.S.C. Representative.
not required to be published for public chapter 137; and 51 U.S.C. 20113.
comment, because it addresses an The U.S. Trade Representative has
internal decision by the head of agency 17.105–1 [Amended] determined that Ukraine and Moldova
to enter into a multi-year contract for will provide appropriate reciprocal
■ 2. Amend section 17.105–1 by competitive Government procurement
supplies if certain criteria are met. removing from paragraph (b)(1)
These requirements affect only the opportunities to United States products
‘‘substantial’’ and adding ‘‘significant’’ and services. The U.S. Trade
internal operating procedures of the in its place. Representative published notices in the
Government. [FR Doc. 2016–23201 Filed 9–29–16; 8:45 am] Federal Register waiving the Buy
III. Executive Orders 12866 and 13563 BILLING CODE 6820–EP–P American statute and other
discriminatory provisions for eligible
Executive Orders (E.O.s) 12866 and products from Ukraine at 81 FR 31292
13563 direct agencies to assess all costs DEPARTMENT OF DEFENSE on May 18, 2016, and Moldova at 81 FR
and benefits of available regulatory 50045 on July 29, 2016.
alternatives and, if regulation is GENERAL SERVICES
necessary, to select regulatory ADMINISTRATION II. Discussion and Analysis
approaches that maximize net benefits Therefore, this rule adds Ukraine and
NATIONAL AERONAUTICS AND Moldova to the list of WTO GPA
(including potential economic,
SPACE ADMINISTRATION countries wherever it appears in the
environmental, public health and safety
effects, distributive impacts, and FAR, whether as a separate definition,
48 CFR Parts 22, 25, and 52 part of the definition of ‘‘designated
equity). E.O. 13563 emphasizes the
importance of quantifying both costs [FAC 2005–91; FAR Case 2016–009; Item
country’’ or ‘‘Recovery Act designated
and benefits, of reducing costs, of VIII; Docket No. 2016–0009, Sequence No. country,’’ or as part of the list of
harmonizing rules, and of promoting 1] countries exempt from the prohibition
flexibility. This is not a significant of acquisition of products produced by
regulatory action and, therefore, was not RIN 9000–AN25 forced or indentured child labor (FAR
22.1503, 25.003, 52.222–19, 52.225–5,
subject to review under Section 6(b) of Federal Acquisition Regulation; New 52.225–11, and 52.225–23).
E.O. 12866, Regulatory Planning and Designated Countries—Ukraine and Conforming changes are made to FAR
Review, dated September 30, 1993. This Moldova 52.212–5, Contract Terms and
rule is not a major rule under 5 U.S.C. Conditions Required to Implement
804. AGENCY: Department of Defense (DoD),
General Services Administration (GSA), Statute or Executive Orders—
IV. Regulatory Flexibility Act and National Aeronautics and Space Commercial Items, and 52.213–4, Terms
Administration (NASA). and Conditions—Simplified
The Regulatory Flexibility Act does Acquisitions (Other Than Commercial
ACTION: Final rule.
not apply to this rule because this final Items).
rule does not constitute a significant SUMMARY: DoD, GSA, and NASA are III. Publication of This Final Rule for
FAR revision within the meaning of issuing a final rule amending the Public Comment Is Not Required by
FAR 1.501–1 and 41 U.S.C. 1707 does Federal Acquisition Regulation (FAR) to Statute
not require publication for public add Ukraine and Moldova as new
comment. designated countries under the World ‘‘Publication of proposed
Trade Organization Government regulations,’’ 41 U.S.C. 1707, is the
V. Paperwork Reduction Act statute that applies to the publication of
Procurement Agreement (WTO GPA).
the Federal Acquisition Regulation.
The rule does not contain any DATES: Effective: October 31, 2016.
Paragraph (a)(1) of the statute requires
information collection requirements that FOR FURTHER INFORMATION CONTACT: Ms. that a procurement policy, regulation,
asabaliauskas on DSK3SPTVN1PROD with RULES

require the approval of the Office of Cecelia L. Davis, Procurement Analyst, procedure, or form (including an
Management and Budget under the at 202–219–0202 for clarification of amendment or modification thereof)
Paperwork Reduction Act (44 U.S.C. content. For information pertaining to must be published for public comment
Chapter 35). status or publication schedules, contact if it relates to the expenditure of
the Regulatory Secretariat Division at appropriated funds, and has either a
List of Subject in 48 CFR Part 17
202–501–4755. Please cite FAC 2005– significant effect beyond the internal
Government procurement. 91, FAR Case 2016–009. operating procedures of the agency
SUPPLEMENTARY INFORMATION: issuing the policy, regulation,

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Document Created: 2018-02-09 13:33:32
Document Modified: 2018-02-09 13:33:32

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: October 31, 2016.
Contact		Mr. Michael O. Jackson, Procurement Analyst, at 202-208-4949, for clarification of content. For information pertaining to status or publication schedules, contact the Regulatory Secretariat at 202-501-4755. Please cite FAC 2005-91, FAR Case 2016- 006.
FR Citation		81 FR 67773
RIN Number		9000-AN24

81 FR 67773 - Federal Acquisition Regulation; Amendment Relating to Multi-Year Contract Authority for Acquisition of Property

DEPARTMENT OF DEFENSEGENERAL SERVICES ADMINISTRATIONNATIONAL AERONAUTICS AND SPACE ADMINISTRATION

Federal Register Volume 81, Issue 190 (September 30, 2016)

DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION