82 FR 4716 - Federal Acquisition Regulation; Acquisition Threshold for Special Emergency Procurement Authority
DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION Federal Register Volume 82, Issue 9 (January 13, 2017)
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
Federal Register Volume 82, Issue 9 (January 13, 2017)
| Page Range | 4716-4717 | |
| FR Document | 2016-31496 |
[Federal Register Volume 82, Number 9 (Friday, January 13, 2017)] [Rules and Regulations] [Pages 4716-4717] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-31496] ----------------------------------------------------------------------- DEPARTMENT OF DEFENSE GENERAL SERVICES ADMINISTRATION NATIONAL AERONAUTICS AND SPACE ADMINISTRATION 48 CFR Parts 2, 13, and 19 [FAC 2005-95; FAR Case 2016-004; Item II; Docket No. 2016-0004, Sequence No. 1] RIN 9000-AN18 Federal Acquisition Regulation; Acquisition Threshold for Special Emergency Procurement Authority AGENCY: Department of Defense (DoD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA). ACTION: Final rule. ----------------------------------------------------------------------- SUMMARY: DoD, GSA, and NASA are issuing a final rule amending the Federal Acquisition Regulation (FAR) to implement a section of the National Defense Authorization Act for Fiscal Year 2016 to raise the simplified acquisition threshold for special emergency procurement authority. DATES: Effective: January 13, 2017. FOR FURTHER INFORMATION CONTACT: Ms. Camara Francis, Procurement Analyst, at 202-550-0935, for clarification of content. For information pertaining to status or publication schedules, contact the Regulatory Secretariat Division at 202-501-4755. Please cite FAC 2005-95, FAR Case 2016-004. SUPPLEMENTARY INFORMATION: I. Background DOD, GSA, and NASA published a proposed rule in the Federal Register at 81 FR 39882 on June 20, 2016, to implement section 816 of the National Defense Authorization Act for Fiscal Year 2016 (Pub. L. 114-92). FAR 2.101, 13.003, 19.203, and 19.502-2 are being revised to increase the simplified acquisition threshold for special emergency procurement authority from $300,000 to $750,000 (within the United States) and from $1 million to $1.5 million (outside the United States). The rule would apply to acquisitions of supplies or services that, as determined by the head of the agency, are to be used to support a contingency operation or to facilitate defense against or recovery from nuclear, biological, chemical, or radiological attack. Two respondents provided comments on the proposed rule. II. Discussion and Analysis The Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council (the Councils) reviewed the comments in the development of the final rule. A discussion of the comments is provided. A. Summary of Changes There was no change made to the rule as a result of the comments received. There were no comments on the Initial Regulatory Flexibility Analysis. B. Analysis of Public Comments 1. Small Business Comment: The respondent identified that the proposed rule did not recognize that the automatic set-asides for small business would apply up to the threshold in paragraph (1)(ii) of the simplified acquisition threshold definition at FAR 2.101 in the case of an emergency acquisition in an outlying area as defined in FAR 2.101. Response: The proposed rule did not address the issue of the outlying areas. While the comment is out of scope of this rule, the Councils will take the comment under consideration. 2. Increased Simplified Acquisition Threshold Comment: The respondent opposes the increase in the special emergency procurement threshold, because increases to the acquisition threshold threaten to compromise the integrity of the Berry amendment, outsource critical portions of the domestic industrial base, and hurt American manufacturers. Response: The Councils appreciate the comment and acknowledge the concern; however, the increase in the special emergency procurement threshold is statutory in nature. III. Executive Orders 12866 and 13563 Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess all costs and benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits (including potential economic, environmental, public health and safety effects, distributive impacts, and equity). E.O. 13563 emphasizes the importance of quantifying both costs and benefits, of reducing costs, of harmonizing rules, and of promoting flexibility. This is not a significant regulatory action and, therefore, was not subject to review under Section 6(b) of E.O. 12866, Regulatory Planning and Review, dated September 30, 1993. This rule is not a major rule under 5 U.S.C. 804. IV. Regulatory Flexibility Act DoD, GSA, and NASA have prepared a Final Regulatory Flexibility Analysis (FRFA) consistent with the Regulatory Flexibility Act, 5 U.S.C. 601, et seq. The FRFA is summarized as follows: This final rule implements section 816 of the National Authorization Act for Fiscal Year (FY) 2016, Public Law 114-92. Therefore, the FAR is revised to raise the simplified acquisition thresholds for special emergency procurement authority. The objective of this final rule is to increase the simplified acquisition thresholds for special emergency procurement authority from $300,000 to $750,000 (within the United States) and $1 million to $1.5 million (outside the United States) for acquisitions of supplies or services that, as determined by the head of the agency, are to be used to support a contingency operation or to facilitate defense against or recovery from nuclear, biological, chemical, or radiological attack. The Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council (the Councils) reviewed the public comments in the development of the final rule. There was no change made to the rule as a result of the comments received. There were no comments on the Regulatory Flexibility Analysis. DoD, GSA, and NASA do not expect this final 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., because the rule raises the simplified acquisition threshold for special emergency procurements, an arena in which a smaller percentage of small businesses participate, as compared to larger businesses. Between $300,000 and the increase to $750,000, 188 total awards were made of which 45 or 24 percent were to small businesses in FY 2014, and 219 total awards were made of which 66 or 30 percent were to small businesses in FY [[Page 4717]] 2015. Between $1 million and the increase to $1.5 million, 56 total awards were made of which 10 or 17 percent were to small businesses in FY 2014, and 29 total awards were made of which 9 or 31 percent were to small businesses in FY 2015. The final rule imposes no reporting, recordkeeping, or other information collection requirements. There are no known significant alternatives to the rule. The impact of this final rule on small business is not expected to be significant. Interested parties may obtain a copy of the FRFA from the Regulatory Secretariat. The Regulatory Secretariat Division has submitted a copy of the FRFA to the Chief Counsel for Advocacy of the Small Business Administration. V. Paperwork Reduction Act 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 Parts 2, 13, and 19 Government procurement. Dated: December 21, 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 parts 2, 13, and 19 as set forth below: 0 1. The authority citation for 48 CFR parts 2, 13, and 19 continues to read as follows: Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 51 U.S.C. 20113. PART 2--DEFINITIONS WORDS AND TERMS 2.101 [Amended] 0 2. Amend section 2.101, in paragraph (b)(2), in the definition ``Simplified acquisition threshold'' by removing from paragraphs (1)(i) and (ii) ``$300,000'' and ``$1 million'' and adding ``$750,000'' and ``$1.5 million'' in their places, respectively. PART 13--SIMPLIFIED ACQUISITION PROCEDURES 13.003 [Amended] 0 3. Amend section 13.003 by removing from paragraph (b)(1) ``$300,000'' and adding ``$750,000'' in its place. PART 19--SMALL BUSINESS PROGRAMS 19.203 [Amended] 0 4. Amend section 19.203 by removing from paragraph (b) ``$300,000'' and adding ``$750,000'' in its place. 19.502-2 [Amended] 0 5. Amend section 19.502-2 by removing from paragraph (a) ``$300,000'' and adding ``$750,000'' in its place. [FR Doc. 2016-31496 Filed 1-12-17; 8:45 am] BILLING CODE 6820-EP-P
![4716 Federal Register / Vol. 82, No. 9 / Friday, January 13, 2017 / Rules and Regulations
52.247–60 Guaranteed Shipping I. Background special emergency procurement
Characteristics. threshold is statutory in nature.
DOD, GSA, and NASA published a
* * * * * proposed rule in the Federal Register at III. Executive Orders 12866 and 13563
Guaranteed Shipping Characteristics 81 FR 39882 on June 20, 2016, to Executive Orders (E.O.s) 12866 and
(JAN 2017) implement section 816 of the National 13563 direct agencies to assess all costs
Defense Authorization Act for Fiscal and benefits of available regulatory
(a) * * *
Year 2016 (Pub. L. 114–92). FAR 2.101, alternatives and, if regulation is
(1) * * *
13.003, 19.203, and 19.502–2 are being necessary, to select regulatory
(xi) * * *
revised to increase the simplified approaches that maximize net benefits
Number of complete units (line item)
acquisition threshold for special (including potential economic,
to be shipped in carrier’s equipment.
emergency procurement authority from environmental, public health and safety
* * * * * $300,000 to $750,000 (within the United
■ 51. Amend section 52.248–1 in effects, distributive impacts, and
States) and from $1 million to $1.5 equity). E.O. 13563 emphasizes the
Alternate II by revising the date of the million (outside the United States). The
alternate and removing from paragraph importance of quantifying both costs
rule would apply to acquisitions of and benefits, of reducing costs, of
(a) ‘‘contract line items’’ and adding supplies or services that, as determined
‘‘line items’’ in its place to read as harmonizing rules, and of promoting
by the head of the agency, are to be used flexibility. This is not a significant
follows: to support a contingency operation or to regulatory action and, therefore, was not
52.248–1 Value Engineering. facilitate defense against or recovery subject to review under Section 6(b) of
from nuclear, biological, chemical, or E.O. 12866, Regulatory Planning and
* * * * *
Alternate II (JAN 2017) * * * radiological attack. Two respondents Review, dated September 30, 1993. This
provided comments on the proposed rule is not a major rule under 5 U.S.C.
* * * * * rule.
[FR Doc. 2016–31495 Filed 1–12–17; 8:45 am] 804.
BILLING CODE 6820–EP–P II. Discussion and Analysis IV. Regulatory Flexibility Act
The Civilian Agency Acquisition DoD, GSA, and NASA have prepared
Council and the Defense Acquisition a Final Regulatory Flexibility Analysis
DEPARTMENT OF DEFENSE Regulations Council (the Councils) (FRFA) consistent with the Regulatory
GENERAL SERVICES reviewed the comments in the Flexibility Act, 5 U.S.C. 601, et seq. The
ADMINISTRATION development of the final rule. A FRFA is summarized as follows:
discussion of the comments is provided.
This final rule implements section 816 of
NATIONAL AERONAUTICS AND A. Summary of Changes the National Authorization Act for Fiscal
SPACE ADMINISTRATION There was no change made to the rule Year (FY) 2016, Public Law 114–92.
Therefore, the FAR is revised to raise the
as a result of the comments received. simplified acquisition thresholds for special
48 CFR Parts 2, 13, and 19 There were no comments on the Initial emergency procurement authority.
[FAC 2005–95; FAR Case 2016–004; Item Regulatory Flexibility Analysis. The objective of this final rule is to
II; Docket No. 2016–0004, Sequence No. 1] increase the simplified acquisition thresholds
B. Analysis of Public Comments for special emergency procurement authority
RIN 9000–AN18
1. Small Business from $300,000 to $750,000 (within the
United States) and $1 million to $1.5 million
Federal Acquisition Regulation; Comment: The respondent identified (outside the United States) for acquisitions of
Acquisition Threshold for Special that the proposed rule did not recognize supplies or services that, as determined by
Emergency Procurement Authority that the automatic set-asides for small the head of the agency, are to be used to
business would apply up to the support a contingency operation or to
AGENCY: Department of Defense (DoD), facilitate defense against or recovery from
General Services Administration (GSA), threshold in paragraph (1)(ii) of the
nuclear, biological, chemical, or radiological
and National Aeronautics and Space simplified acquisition threshold attack.
Administration (NASA). definition at FAR 2.101 in the case of an The Civilian Agency Acquisition Council
emergency acquisition in an outlying and the Defense Acquisition Regulations
ACTION: Final rule.
area as defined in FAR 2.101. Council (the Councils) reviewed the public
SUMMARY: DoD, GSA, and NASA are Response: The proposed rule did not comments in the development of the final
issuing a final rule amending the address the issue of the outlying areas. rule.
While the comment is out of scope of There was no change made to the rule as
Federal Acquisition Regulation (FAR) to a result of the comments received. There
implement a section of the National this rule, the Councils will take the
were no comments on the Regulatory
Defense Authorization Act for Fiscal comment under consideration.
Flexibility Analysis.
Year 2016 to raise the simplified 2. Increased Simplified Acquisition DoD, GSA, and NASA do not expect this
acquisition threshold for special Threshold final rule to have a significant economic
emergency procurement authority. impact on a substantial number of small
Comment: The respondent opposes entities within the meaning of the Regulatory
DATES: Effective: January 13, 2017.
the increase in the special emergency Flexibility Act, 5 U.S.C. 601, et seq., because
FOR FURTHER INFORMATION CONTACT: Ms. procurement threshold, because the rule raises the simplified acquisition
asabaliauskas on DSK3SPTVN1PROD with RULES
Camara Francis, Procurement Analyst, increases to the acquisition threshold threshold for special emergency
at 202–550–0935, for clarification of threaten to compromise the integrity of procurements, an arena in which a smaller
content. For information pertaining to the Berry amendment, outsource critical percentage of small businesses participate, as
status or publication schedules, contact compared to larger businesses. Between
portions of the domestic industrial base, $300,000 and the increase to $750,000, 188
the Regulatory Secretariat Division at and hurt American manufacturers. total awards were made of which 45 or 24
202–501–4755. Please cite FAC 2005– Response: The Councils appreciate percent were to small businesses in FY 2014,
95, FAR Case 2016–004. the comment and acknowledge the and 219 total awards were made of which 66
SUPPLEMENTARY INFORMATION: concern; however, the increase in the or 30 percent were to small businesses in FY
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![Federal Register / Vol. 82, No. 9 / Friday, January 13, 2017 / Rules and Regulations 4717
2015. Between $1 million and the increase to PART 19—SMALL BUSINESS the Regulatory Secretariat Division at
$1.5 million, 56 total awards were made of PROGRAMS 202–501–4755. Please cite FAC 2005–
which 10 or 17 percent were to small 95, FAR Case 2015–012.
businesses in FY 2014, and 29 total awards 19.203 [Amended] SUPPLEMENTARY INFORMATION:
were made of which 9 or 31 percent were to ■ 4. Amend section 19.203 by removing
small businesses in FY 2015. I. Background
from paragraph (b) ‘‘$300,000’’ and
The final rule imposes no reporting, adding ‘‘$750,000’’ in its place. DoD, GSA, and NASA published a
recordkeeping, or other information proposed rule in the Federal Register at
collection requirements. 19.502–2 [Amended] 81 FR 3763 on January 22, 2016, to
There are no known significant alternatives ■ 5. Amend section 19.502–2 by implement section 743 of Division E,
to the rule. The impact of this final rule on removing from paragraph (a) ‘‘$300,000’’ Title VII, of the Consolidated and
small business is not expected to be and adding ‘‘$750,000’’ in its place. Further Continuing Appropriations Act,
significant. 2015 (Pub. L. 113–235) and its successor
[FR Doc. 2016–31496 Filed 1–12–17; 8:45 am]
provisions in subsequent appropriations
Interested parties may obtain a copy BILLING CODE 6820–EP–P
acts (and as extended in continuing
of the FRFA from the Regulatory resolutions) (i.e., section 743 of Division
Secretariat. The Regulatory Secretariat E of Pub. L. 114–113). Section 743
Division has submitted a copy of the DEPARTMENT OF DEFENSE
prohibits the use of funds appropriated
FRFA to the Chief Counsel for Advocacy or otherwise made available by Division
GENERAL SERVICES
of the Small Business Administration. ADMINISTRATION E or any other Act for a contract, grant,
V. Paperwork Reduction Act or cooperative agreement with an entity
NATIONAL AERONAUTICS AND that requires employees or
The rule does not contain any SPACE ADMINISTRATION subcontractors of such entity seeking to
information collection requirements that report waste, fraud, or abuse to sign
require the approval of the Office of 48 CFR Parts 3, 4, and 52 internal confidentiality agreements or
Management and Budget under the statements prohibiting or otherwise
[FAC 2005–95; FAR Case 2015–012; Item
Paperwork Reduction Act (44 U.S.C. restricting such employees or
III; Docket No. 2015–0012, Sequence No.
chapter 35). 1] subcontractors from lawfully reporting
such waste, fraud, or abuse to a
List of Subjects in 48 CFR Parts 2, 13, RIN 9000–AN04 designated investigative or law
and 19 enforcement representative of a Federal
Federal Acquisition Regulation; department or agency authorized to
Government procurement. Contractor Employee Internal receive such information.
Dated: December 21, 2016. Confidentiality Agreements or Four respondents submitted
William F. Clark, Statements comments on the interim rule.
Director, Office of Government-wide AGENCY: Department of Defense (DoD), II. Discussion and Analysis
Acquisition Policy, Office of Acquisition General Services Administration (GSA),
Policy, Office of Government-wide Policy. The Civilian Agency Acquisition
and National Aeronautics and Space
Council and the Defense Acquisition
Administration (NASA).
Therefore, DoD, GSA, and NASA Regulations Council (the Councils)
amend 48 CFR parts 2, 13, and 19 as set ACTION: Final rule. reviewed the public comments in the
forth below: SUMMARY: DoD, GSA, and NASA are development of the final rule. A
issuing a final rule amending the discussion of the comments and the
■ 1. The authority citation for 48 CFR
Federal Acquisition Regulation (FAR) to changes made to the rule as a result of
parts 2, 13, and 19 continues to read as
implement a section of the Consolidated those comments are provided as
follows:
and Further Continuing Appropriations follows:
Authority: 40 U.S.C. 121(c); 10 U.S.C.
Act, 2015, that prohibits the use of A. Summary of Significant Changes
chapter 137; and 51 U.S.C. 20113.
funds, appropriated or otherwise made From the Proposed Rule
PART 2—DEFINITIONS WORDS AND available, for a contract with an entity
The following significant changes are
that requires employees or
TERMS included in the final rule:
subcontractors to sign an internal • Adds definitions of ‘‘internal
2.101 [Amended] confidentiality agreement that restricts confidentiality agreement or statement,’’
such employees or subcontractors from ‘‘subcontract,’’ and ‘‘subcontractor’’
■ 2. Amend section 2.101, in paragraph lawfully reporting waste, fraud, or abuse (FAR 3.901, 52.203–18(a), and 52.203–
(b)(2), in the definition ‘‘Simplified to a designated Government 19(a)).
acquisition threshold’’ by removing representative authorized to receive • Clarifies that the representation
from paragraphs (1)(i) and (ii) such information. applies to future internal confidentiality
‘‘$300,000’’ and ‘‘$1 million’’ and DATES: Effective: January 19, 2017. agreements or statements that restrict
adding ‘‘$750,000’’ and ‘‘$1.5 million’’ Applicability: This rule applies to all reporting of waste, fraud, or abuse
in their places, respectively. solicitations and contracts, using fiscal related to the performance of a
asabaliauskas on DSK3SPTVN1PROD with RULES
year 2015 or subsequent fiscal year Government contract, and specifically
PART 13—SIMPLIFIED ACQUISITION funds that do not already contain a cites the agency Office of the Inspector
PROCEDURES comparable provision/clause. General as a designated investigative or
13.003 [Amended] FOR FURTHER INFORMATION CONTACT: Ms. law enforcement representative of a
Cecelia L. Davis, Procurement Analyst, Federal department or agency
■ 3. Amend section 13.003 by removing at 202–219–0202 for clarification of authorized to receive such information
from paragraph (b)(1) ‘‘$300,000’’ and content. For information pertaining to (FAR 3.909–2, 52.203–18(d), 52.203–
adding ‘‘$750,000’’ in its place. status or publication schedules, contact 19(b), and 52.212–3(s)(3)).
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Document Created: 2017-01-13 02:45:22
Document Modified: 2017-01-13 02:45:22
| 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: January 13, 2017. | |
| Contact | Ms. Camara Francis, Procurement Analyst, at 202-550-0935, for clarification of content. For information pertaining to status or publication schedules, contact the Regulatory Secretariat Division at 202-501-4755. Please cite FAC 2005-95, FAR Case 2016-004. | |
| FR Citation | 82 FR 4716 | |
| RIN Number | 9000-AN18 | |
| CFR Citation | 48
CFR
13 48 CFR 19 48 CFR 2 |
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