83_FR_14900 83 FR 14833 - Revise and Streamline VA Acquisition Regulation-Parts 844 and 845

83 FR 14833 - Revise and Streamline VA Acquisition Regulation-Parts 844 and 845

DEPARTMENT OF VETERANS AFFAIRS

Federal Register Volume 83, Issue 67 (April 6, 2018)

Page Range14833-14836
FR Document2018-04004

The Department of Veterans Affairs (VA) is proposing to amend and update its VA Acquisition Regulation (VAAR) in phased increments to revise or remove any policy that has been superseded by changes in the Federal Acquisition Regulation (FAR), to remove any procedural guidance that is internal to the VA into the VA Acquisition Manual (VAAM), and to incorporate new regulations or policies. These changes seek to streamline and align the VAAR with the FAR and remove outdated and duplicative requirements and reduce burden on contractors. The VAAM incorporates portions of the removed VAAR as well as other internal agency acquisition policy. VA will rewrite certain parts of the VAAR and VAAM, and as VAAR parts are rewritten, we'll publish them in the Federal Register. VA will combine related topics, as appropriate. In particular, this rulemaking revises VAAR Parts 844--Subcontracting Policies and Procedures, and Part 845--Government Property.

Federal Register, Volume 83 Issue 67 (Friday, April 6, 2018)
[Federal Register Volume 83, Number 67 (Friday, April 6, 2018)]
[Proposed Rules]
[Pages 14833-14836]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-04004]


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DEPARTMENT OF VETERANS AFFAIRS

48 CFR Parts 844 and 845

RIN 2900-AQ05


Revise and Streamline VA Acquisition Regulation--Parts 844 and 
845

AGENCY: Department of Veterans Affairs.

ACTION: Proposed rule.

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

SUMMARY: The Department of Veterans Affairs (VA) is proposing to amend 
and update its VA Acquisition Regulation (VAAR) in phased increments to 
revise or remove any policy that has been superseded by changes in the 
Federal Acquisition Regulation (FAR), to remove any procedural guidance 
that is internal to the VA into the VA Acquisition Manual (VAAM), and 
to incorporate new regulations or policies. These changes seek to 
streamline and align the VAAR with the FAR and remove outdated and 
duplicative requirements and reduce burden on contractors. The VAAM 
incorporates portions of the removed VAAR as well as other internal 
agency acquisition policy. VA will rewrite certain parts of the VAAR 
and VAAM, and as VAAR parts are rewritten, we'll publish them in the 
Federal Register. VA will combine related topics, as appropriate. In 
particular, this rulemaking revises VAAR Parts 844--Subcontracting 
Policies and Procedures, and Part 845--Government Property.

DATES: Comments must be received on or before June 5, 2018 to be 
considered in the formulation of the final rule.

ADDRESSES: Written comments may be submitted through 
www.Regulations.gov; by mail or hand-delivery to Director, Regulation 
Policy and Management (00REG), Department of Veterans Affairs, 810 
Vermont Avenue NW, Room 1063B, Washington, DC 20420; or by fax to (202) 
273-9026. Comments should indicate that they are submitted in response 
to ``RIN 2900-AQ05--Revise and Streamline VA Acquisition Regulation 
Parts 844 and 845).'' Copies of comments received will be available for 
public inspection in the Office of Regulation Policy and Management, 
Room 1063B, between the hours of 8:00 a.m. and 4:30 p.m., Monday 
through Friday (except holidays). Please call (202) 461-4902 for an 
appointment. (This is not a toll-free number.) In addition, during the 
comment period, comments may be viewed online through the Federal 
Docket Management System (FDMS) at www.Regulations.gov.

FOR FURTHER INFORMATION CONTACT: Rafael Taylor, Senior Procurement 
Analyst, Procurement Policy and Warrant Management Services, 003A2A, 
425 I Street NW, Washington, DC 20001, (202) 382-2787. (This is not a 
toll-free telephone number.)

SUPPLEMENTARY INFORMATION:

Background

    This rulemaking is issued under the authority of the Office of 
Federal Procurement Policy (OFPP) Act, which provides the authority for 
an agency head to issue agency acquisition regulations that implement 
or supplement the FAR.
    VA is proposing to revise the VAAR to add new policy or regulatory 
requirements and to remove any redundant guidance and guidance that is 
applicable only to VA's internal operating processes or procedures. 
Codified acquisition regulations may be amended and revised only 
through rulemaking. All amendments, revisions, and removals have been 
reviewed and concurred with by VA's Integrated Product Team of agency 
stakeholders.
    The VAAR uses the regulatory structure and arrangement of the FAR 
and headings and subject areas are consistent with FAR content. The 
VAAR is divided into subchapters, parts (each of which covers a 
separate aspect of acquisition), subparts, sections, and subsections.
    The Office of Federal Procurement Policy Act, as codified in 41 
U.S.C. 1707, provides the authority for the Federal Acquisition 
Regulation and for the issuance of agency acquisition regulations 
consistent with the FAR.
    When Federal agencies acquire supplies and services using 
appropriated funds, the purchase is governed by the FAR, set forth at 
Title 48 Code of Federal Regulations (CFR), chapter 1, parts 1 through 
53, and the agency regulations that implement and supplement the FAR. 
The VAAR is set

[[Page 14834]]

forth at Title 48 CFR, chapter 8, parts 801 to 873.

Discussion and Analysis

    The VA proposes to make the following changes to the VAAR in this 
phase of its revision and streamlining initiative. For procedural 
guidance cited below that is proposed to be deleted from the VAAR, each 
section cited for removal has been considered for inclusion in VA's 
internal agency operating procedures in accordance with FAR 
1.301(a)(2). Similarly, delegations of authorities that are removed 
from the VAAR will be included in the VA Acquisition Manual (VAAM) as 
internal agency guidance. The VAAM is being created in parallel with 
these revisions to the VAAR and is not subject to the rulemaking 
process as they are internal VA procedures and guidance. Therefore, the 
VAAM will not be finalized until corresponding VAAR parts are 
finalized, and is not yet available on line.

VAAR Part 844--Subcontracting Policies and Procedures

    We propose to add part 844 to the VAAR. The authorities to be cited 
are: 40 U.S.C. 121(c) and 41 U.S.C. 1702, which address the overall 
direction of procurement policy, acquisition planning and management 
responsibilities of VA's Chief Acquisition Officer; and 48 CFR 1.301-
1.304, which is the delegation of authority for agencies to issue 
regulations that implement and supplement the FAR.
    This new part 844, Subcontracting Policies and Procedures, 
implements FAR part 44 by making public VA's additional requirements 
for providing its consent to subcontract, items that should be 
evaluated as a part of a Contractor's Purchasing Systems Review (CPSR), 
and establishing that contractors should determine whether subcontract 
items meet the FAR definition of a commercial item. Under this new 
part, we propose to add subpart 844.2, Consent to Subcontracts, and 
section 844.202-2, Considerations. We propose to add one paragraph to 
this section, (a)(14), which would require, before a contracting 
officer consents to a subcontract where other than the lowest price is 
the basis for selection, that the contractor has substantiated the 
selection as being fair, reasonable, and representing the best value to 
the Government.
    We propose to add subpart 844.3, Contractor's Purchasing Systems 
Reviews, and section 844.303, Extent of review. We included three 
paragraphs to this section, paragraphs (f), (l), and (m). The 
paragraphs included in this section would require that contractor 
purchasing system reviews focus special attention, respectively, on:
    Policies and procedures pertaining to the use of VA-verified 
Service-Disabled Veteran-Owned Small Businesses (SDVOSBs) and Veteran-
Owned Small Businesses (VOSBs) and utilization in accordance with 
subpart 819.70 and the Veterans First Contracting Program;
    Documentation of commercial item determinations to ensure 
compliance with the definition of ``commercial item'' in FAR 2.101; and
    For acquisitions involving electronic parts, whether the contractor 
has implemented a counterfeit electronic part detection and avoidance 
system to ensure that counterfeit electronic parts do not enter the 
supply chain.
    We propose to add subpart 844.4, Subcontracts for Commercial Items 
and Commercial Components, and section 844.402, Policy requirements. 
Under section 844.402, we add paragraph ``(a)(3)'' which would require 
that contractors determine whether a particular subcontract item meets 
the FAR definition of a commercial item. This requirement does not 
affect the contracting officer's responsibilities or determinations 
made under FAR 15.403-1(c)(3).

VAAR Part 845--Government Property

    We propose to add subpart 845.4, Title to Government Property. The 
authorities to be cited are: 40 U.S.C. 121(c) which provides that the 
Administrator of the General Services Administration may prescribe 
regulations to carry out responsibilities under the Federal Property 
and Administrative Services subtitle of Title 40, and, additionally, 
that the head of each executive agency shall issue orders and 
directives that the agency head considers necessary to carry out the 
prescribed regulations issued by the Administrator; and 41 U.S.C. 1702, 
which address the overall direction of procurement policy, acquisition 
planning and management responsibilities of VA's Chief Acquisition 
Officer; and 48 CFR 1.301-1.304, which is the delegation of authority 
for agencies to issue regulations that implement and supplement the 
FAR.
    We propose to add section 845.402, Title to contractor-acquired 
property (no text), and section, 845.402-70, Policy. This implements 
and supplements the FAR by addressing procedures for contractors to 
document their acquisition of property for use in the service of VA 
contracts; to address the transfer of title to the Government of 
contractor-acquired property; and to outline the procedures for the use 
of such property on a successor contract. This new section proposes the 
following:
    Paragraph (a) would provide that, for other than firm-fixed-price 
contracts, contractor-acquired property items not anticipated at time 
of contract award, or not otherwise specified for delivery on an 
existing line item, would be delivered to the Government on a contract 
line item. The value of that item would be recorded at the original 
purchase cost or best estimate.
    Paragraph (b) would provide that, upon delivery and acceptance by 
the Government of contractor-acquired property items, and when retained 
by the contractor for continued use under a successor contract, such 
items would become Government-furnished property (GFP). The items would 
be added to the successor contract as GFP by contract modification.
    Paragraph (c) would provide that individual contractor-acquired 
property items would be recorded in the contractor's property 
management system at the contractor's original purchase cost or best 
estimate.
    Paragraph (d) would provide that all other contractor inventory 
that is excess to the needs of the contract would be disposed of in 
accordance with FAR subpart 45.6.

Effect of Rulemaking

    Title 48, Federal Acquisition Regulations System, Chapter 8, 
Department of Veterans Affairs, of the Code of Federal Regulations, as 
proposed to be revised by this rulemaking, would represent VA's 
implementation of its legal authority and publication of the Department 
of Veterans Affairs Acquisition Regulation (VAAR) for the cited 
applicable parts. Other than future amendments to this rule or 
governing statutes for the cited applicable parts, or as otherwise 
authorized by approved deviations or waivers in accordance with Federal 
Acquisition Regulation (FAR) subpart 1.4, Deviations from the FAR, and 
as implemented by VAAR subpart 801.4, Deviations from the FAR or VAAR, 
no contrary guidance or procedures would be authorized. All existing or 
subsequent VA guidance would be read to conform with the rulemaking if 
possible or, if not possible, such guidance would be superseded by this 
rulemaking as pertains to the cited applicable VAAR parts.

[[Page 14835]]

Executive Orders 12866, 13563 and 13771

    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. 
E.O. 12866, Regulatory Planning and Review, defines ``significant 
regulatory action'' to mean any regulatory action that is likely to 
result in a rule that may: ``(1) Have an annual effect on the economy 
of $100 million or more or adversely affect in a material way the 
economy, a sector of the economy, productivity, competition, jobs, the 
environment, public health or safety, or State, local, or tribal 
governments or communities; (2) Create a serious inconsistency or 
otherwise interfere with an action taken or planned by another agency; 
(3) Materially alter the budgetary impact of entitlements, grants, user 
fees, or loan programs or the rights and obligations of recipients 
thereof; or (4) Raise novel legal or policy issues arising out of legal 
mandates, the President's priorities, or the principles set forth in 
this Executive order.''
    VA has examined the economic, interagency, budgetary, legal, and 
policy implications of this regulatory action, and it has been 
determined not to be a significant regulatory action under E.O. 12866.
    VA's impact analysis can be found as a supporting document at 
http://www.regulations.gov, usually within 48 hours after the 
rulemaking document is published. Additionally, a copy of the 
rulemaking and its impact analysis are available on VA's website at 
http://www.va.gov/orpm by following the link for VA Regulations 
Published from FY 2004 Through Fiscal Year to Date.
    This proposed rule is not expected to be an E.O. 13771 regulatory 
action because this proposed rule is not significant under E.O. 12866.

Paperwork Reduction Act

    This proposed rule contains no provisions constituting a collection 
of information under the Paperwork Reduction Act of 1995 (44 U.S.C. 
3501-3521).

Regulatory Flexibility Act

    This proposed rule would not have a significant economic impact on 
a substantial number of small entities as they are defined in the 
Regulatory Flexibility Act, 5 U.S.C. 601-612. The overall impact of the 
proposed rule would be of benefit to small businesses owned by Veterans 
or service-disabled Veterans as the VAAR is being updated to remove 
extraneous procedural information that applies only to VA's internal 
operating procedures. VA is merely adding existing and current 
regulatory requirements to the VAAR and removing any guidance that is 
applicable only to VA's internal operation processes or procedures. VA 
estimates no cost impact to individual business would result from these 
rule updates. This rulemaking does not change VA's policy regarding 
small businesses, does not have an economic impact to individual 
businesses, and there are no increased or decreased costs to small 
business entities. On this basis, the proposed rule would not have an 
economic impact on a substantial number of small entities as they are 
defined in the Regulatory Flexibility Act, 5 U.S.C. 601-612. Therefore, 
under 5 U.S.C. 605(b), this regulatory action is exempt from the 
initial and final regulatory flexibility analysis requirements of 
sections 603 and 604.

Unfunded Mandates

    The Unfunded Mandates Reform Act of 1995 requires, at 2 U.S.C. 
1532, that agencies prepare an assessment of anticipated costs and 
benefits before issuing any rule that may result in the expenditure by 
State, local, and tribal Governments, in the aggregate, or by the 
private sector, of $100 million or more (adjusted annually for 
inflation) in any one year. This proposed rule would have no such 
effect on State, local, and tribal Governments or on the private 
sector.

List of Subjects

48 CFR Part 844

    Government procurement, Reporting and recordkeeping requirements.

48 CFR Part 845

    Government procurement, Government property, Reporting and 
recordkeeping requirements.

Signing Authority

    The Secretary of Veterans Affairs, or designee, approved this 
document and authorized the undersigned to sign and submit the document 
to the Office of the Federal Register for publication electronically as 
an official document of the Department of Veterans Affairs. Gina S. 
Farrisee, Deputy Chief of Staff, Department of Veterans Affairs 
approved this document on October 20, 2017, for publication.

    Dated: February 22, 2018.
Consuela Benjamin,
Office of Regulation Policy & Management, Office of the Secretary, 
Department of Veterans Affairs.


0
For the reasons set out in the preamble, VA proposes to amend 48 CFR, 
chapter 8 by adding parts 844 and 845 to read as follows:

PART 844--SUBCONTRACTING POLICIES AND PROCEDURES

Sec.
Subpart 844.2--Consent to Subcontracts
844.202-2 Considerations.
Subpart 844.3--Contractors' Purchasing Systems Reviews
844.303 Extent of review.
Subpart 844.4--Subcontracts for Commercial Items and Commercial 
Components
844.402 Policy requirements.

    Authority: 40 U.S.C. 121(c); 41 U.S.C. 1702 and 48 CFR 1.301-
1.304.

Subpart 844-2--Consent to Subcontracts


844.202-2   Considerations.

    (a)(14) Where other than lowest price is the basis for 
subcontractor selection, has the contractor adequately substantiated 
the selection as being fair, reasonable, and representing the best 
value to the Government?

Subpart 844.3--Contractors' Purchasing Systems Reviews


844.303   Extent of review.

    (f) Policies and procedures pertaining to the use of VA-verified 
Service-Disabled Veteran-Owned Small Businesses (SDVOSBs) and Veteran-
Owned Small Businesses (VOSBs) and utilization in accordance with 
subpart 819.70 and the Veterans First Contracting Program.
    (l) Documentation of commercial item determinations to ensure 
compliance with the definition of ``commercial item'' in FAR 2.101; and
    (m) For acquisitions involving electronic parts, that the 
contractor has implemented a counterfeit electronic part detection and 
avoidance system to ensure that counterfeit electronic parts do not 
enter the supply chain.

[[Page 14836]]

Subpart 844.4--Subcontracts for Commercial Items and Commercial 
Components


844.402   Policy requirements.

    (a)(3) Determine whether a particular subcontract item meets the 
definition of a commercial item. This requirement does not affect the 
contracting officer's responsibilities or determinations made under FAR 
15.403-1(c)(3).

PART 845--GOVERNMENT PROPERTY

Sec.
Subpart 845.4--Title to Government Property
845.402 Title to contractor-acquired property.
845.402-70 Policy.

    Authority:  40 U.S.C. 121(c); 41 U.S.C. 1702 and 48 CFR 1.301-
1.304.

Subpart 845.4--Title to Government Property


845.402   Title to contractor-acquired property.


845.402-70   Policy.

    (a) For other than firm-fixed-price contracts, contractor-acquired 
property items not anticipated at time of contract award, or not 
otherwise specified for delivery on an existing line item, shall, by 
means of a contract modification, be specified for delivery to the 
Government on an added contract line item. The value of such 
contractor-acquired property item shall be recorded at the original 
purchase cost. Unless otherwise noted by the contractor at the time of 
delivery to the Government, the placed-in-service date shall be the 
date of acquisition or completed manufacture, if fabricated.
    (b) Following delivery and acceptance by the Government of 
contractor-acquired property items, if these items are to be retained 
by the contractor for continued use under a successor contract, these 
items become Government-furnished property (GFP). The items shall be 
added to the successor contract as GFP by contract modification.
    (c) Individual contractor-acquired property items should be 
recorded in the contractor's property management system at the 
contractor's original purchase cost.
    (d) All other contractor inventory that is excess to the needs of 
the contract shall be disposed of in accordance with FAR subpart 45.6.

[FR Doc. 2018-04004 Filed 4-5-18; 8:45 am]
 BILLING CODE 8320-01-P



                                                                             Federal Register / Vol. 83, No. 67 / Friday, April 6, 2018 / Proposed Rules                                          14833

                                                    (3) Include an original signed by the                 rehabilitation of eligible Veterans under              Comments should indicate that they are
                                                 protester or the protester’s representative and          38 U.S.C. chapter 31, provided the                     submitted in response to ‘‘RIN 2900–
                                                 at least one copy;                                       services meet the conditions in the                    AQ05—Revise and Streamline VA
                                                    (4) Set forth a detailed statement of the
                                                                                                          following definitions:                                 Acquisition Regulation Parts 844 and
                                                 legal and factual grounds of the protest,
                                                 including a description of resulting prejudice           *     *     *     *     *                              845).’’ Copies of comments received will
                                                 to the protester, and provide copies of                    (b) Special services or special courses.             be available for public inspection in the
                                                 relevant documents;                                      Special services or courses are those                  Office of Regulation Policy and
                                                    (5) Specifically request a ruling of the              services or courses that VA requests that              Management, Room 1063B, between the
                                                 individual upon whom the protest is served;              are supplementary to those the                         hours of 8:00 a.m. and 4:30 p.m.,
                                                    (6) State the form of relief requested; and           institution customarily provides for                   Monday through Friday (except
                                                    (7) Provide all information establishing the                                                                 holidays). Please call (202) 461–4902 for
                                                 timeliness of the protest.                               similarly circumstanced non-Veteran
                                                                                                          students and that the contracting officer              an appointment. (This is not a toll-free
                                                    (b) Failure to comply with the above may
                                                 result in dismissal of the protest without               considers to be necessary for the                      number.) In addition, during the
                                                 further consideration.                                   rehabilitation of the trainee.                         comment period, comments may be
                                                    (c) Bidders/offerors and contracting officers         [FR Doc. 2018–04003 Filed 4–5–18; 8:45 am]
                                                                                                                                                                 viewed online through the Federal
                                                 are encouraged to use alternative dispute                                                                       Docket Management System (FDMS) at
                                                                                                          BILLING CODE 8320–01–P
                                                 resolution (ADR) procedures to resolve                                                                          www.Regulations.gov.
                                                 protests at any stage in the protest process.                                                                   FOR FURTHER INFORMATION CONTACT:
                                                 If ADR is used, the Department of Veterans
                                                 Affairs will not furnish any documentation in            DEPARTMENT OF VETERANS                                 Rafael Taylor, Senior Procurement
                                                 an ADR proceeding beyond what is allowed                 AFFAIRS                                                Analyst, Procurement Policy and
                                                 by the Federal Acquisition Regulation.                                                                          Warrant Management Services, 003A2A,
                                                                                                          48 CFR Parts 844 and 845                               425 I Street NW, Washington, DC 20001,
                                                 (End of Provision)                                                                                              (202) 382–2787. (This is not a toll-free
                                                                                                          RIN 2900–AQ05
                                                 ■ 7. Section 852.233–71 is revised to                                                                           telephone number.)
                                                 read as follows:                                         Revise and Streamline VA Acquisition                   SUPPLEMENTARY INFORMATION:
                                                                                                          Regulation—Parts 844 and 845
                                                 852.233–71       Alternate Protest Procedure.                                                                   Background
                                                   As prescribed in 833.106–70(b), insert                 AGENCY:  Department of Veterans Affairs.                  This rulemaking is issued under the
                                                 the following provision:                                 ACTION: Proposed rule.                                 authority of the Office of Federal
                                                 Alternate Protest Procedure (Date)                                                                              Procurement Policy (OFPP) Act, which
                                                                                                          SUMMARY:   The Department of Veterans                  provides the authority for an agency
                                                   (a) As an alternative to filing a protest with         Affairs (VA) is proposing to amend and
                                                 the contracting officer, an interested party                                                                    head to issue agency acquisition
                                                                                                          update its VA Acquisition Regulation                   regulations that implement or
                                                 may file a protest by mail or electronically
                                                 with: Executive Director, Office of
                                                                                                          (VAAR) in phased increments to revise                  supplement the FAR.
                                                 Acquisition and Logistics, Risk Management               or remove any policy that has been                        VA is proposing to revise the VAAR
                                                 and Compliance Service (003A2C),                         superseded by changes in the Federal                   to add new policy or regulatory
                                                 Department of Veterans Affairs, 810 Vermont              Acquisition Regulation (FAR), to                       requirements and to remove any
                                                 Avenue NW, Washington, DC 20420, Email:                  remove any procedural guidance that is                 redundant guidance and guidance that
                                                 EDProtests@va.gov.                                       internal to the VA into the VA
                                                   (b) The protest will not be considered if the
                                                                                                                                                                 is applicable only to VA’s internal
                                                                                                          Acquisition Manual (VAAM), and to                      operating processes or procedures.
                                                 interested party has a protest on the same or            incorporate new regulations or policies.
                                                 similar issue(s) pending with the contracting                                                                   Codified acquisition regulations may be
                                                                                                          These changes seek to streamline and                   amended and revised only through
                                                 officer.
                                                                                                          align the VAAR with the FAR and                        rulemaking. All amendments, revisions,
                                                 (End of Provision)                                       remove outdated and duplicative                        and removals have been reviewed and
                                                                                                          requirements and reduce burden on                      concurred with by VA’s Integrated
                                                 PART 871—LOAN GUARANTY AND                               contractors. The VAAM incorporates
                                                 VOCATIONAL REHABILITATION AND                                                                                   Product Team of agency stakeholders.
                                                                                                          portions of the removed VAAR as well                      The VAAR uses the regulatory
                                                 EMPLOYMENT PROGRAMS                                      as other internal agency acquisition                   structure and arrangement of the FAR
                                                 ■  8. The authority citation for part 871                policy. VA will rewrite certain parts of               and headings and subject areas are
                                                 is revised to read as follows:                           the VAAR and VAAM, and as VAAR                         consistent with FAR content. The VAAR
                                                                                                          parts are rewritten, we’ll publish them                is divided into subchapters, parts (each
                                                   Authority: 38 U.S.C. Chapter 31; 40 U.S.C.             in the Federal Register. VA will
                                                 121(c); 41 U.S.C. 1121(c)(3); 41 U.S.C. 1702;                                                                   of which covers a separate aspect of
                                                 and 48 CFR 1.301–1.304.
                                                                                                          combine related topics, as appropriate.                acquisition), subparts, sections, and
                                                                                                          In particular, this rulemaking revises                 subsections.
                                                 Subpart 871.2—Vocational                                 VAAR Parts 844—Subcontracting                             The Office of Federal Procurement
                                                 Rehabilitation and Employment                            Policies and Procedures, and Part 845—                 Policy Act, as codified in 41 U.S.C.
                                                 Service                                                  Government Property.                                   1707, provides the authority for the
                                                                                                          DATES: Comments must be received on                    Federal Acquisition Regulation and for
                                                 ■ 9. Amend section 871.201–1 by                          or before June 5, 2018 to be considered
                                                 revising the introductory text and                                                                              the issuance of agency acquisition
                                                                                                          in the formulation of the final rule.                  regulations consistent with the FAR.
                                                 paragraph (b) to read as follows:
daltland on DSKBBV9HB2PROD with PROPOSALS




                                                                                                          ADDRESSES: Written comments may be                        When Federal agencies acquire
                                                 871.201–1 Requirements for the use of                    submitted through                                      supplies and services using
                                                 contracts.                                               www.Regulations.gov; by mail or hand-                  appropriated funds, the purchase is
                                                    The costs for tuition, fees, books,                   delivery to Director, Regulation Policy                governed by the FAR, set forth at Title
                                                 supplies, and other expenses are                         and Management (00REG), Department                     48 Code of Federal Regulations (CFR),
                                                 allowable under a contract with an                       of Veterans Affairs, 810 Vermont                       chapter 1, parts 1 through 53, and the
                                                 institution, training establishment, or                  Avenue NW, Room 1063B, Washington,                     agency regulations that implement and
                                                 employer for the training and                            DC 20420; or by fax to (202) 273–9026.                 supplement the FAR. The VAAR is set


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                                                 14834                      Federal Register / Vol. 83, No. 67 / Friday, April 6, 2018 / Proposed Rules

                                                 forth at Title 48 CFR, chapter 8, parts                 The paragraphs included in this section                contractor-acquired property; and to
                                                 801 to 873.                                             would require that contractor                          outline the procedures for the use of
                                                                                                         purchasing system reviews focus special                such property on a successor contract.
                                                 Discussion and Analysis
                                                                                                         attention, respectively, on:                           This new section proposes the
                                                    The VA proposes to make the                             Policies and procedures pertaining to               following:
                                                 following changes to the VAAR in this                   the use of VA-verified Service-Disabled
                                                 phase of its revision and streamlining                  Veteran-Owned Small Businesses                            Paragraph (a) would provide that, for
                                                 initiative. For procedural guidance cited               (SDVOSBs) and Veteran-Owned Small                      other than firm-fixed-price contracts,
                                                 below that is proposed to be deleted                    Businesses (VOSBs) and utilization in                  contractor-acquired property items not
                                                 from the VAAR, each section cited for                   accordance with subpart 819.70 and the                 anticipated at time of contract award, or
                                                 removal has been considered for                         Veterans First Contracting Program;                    not otherwise specified for delivery on
                                                 inclusion in VA’s internal agency                          Documentation of commercial item                    an existing line item, would be
                                                 operating procedures in accordance                      determinations to ensure compliance                    delivered to the Government on a
                                                 with FAR 1.301(a)(2). Similarly,                        with the definition of ‘‘commercial                    contract line item. The value of that
                                                 delegations of authorities that are                     item’’ in FAR 2.101; and                               item would be recorded at the original
                                                 removed from the VAAR will be                              For acquisitions involving electronic               purchase cost or best estimate.
                                                 included in the VA Acquisition Manual                   parts, whether the contractor has                         Paragraph (b) would provide that,
                                                 (VAAM) as internal agency guidance.                     implemented a counterfeit electronic                   upon delivery and acceptance by the
                                                 The VAAM is being created in parallel                   part detection and avoidance system to
                                                                                                                                                                Government of contractor-acquired
                                                 with these revisions to the VAAR and is                 ensure that counterfeit electronic parts
                                                                                                                                                                property items, and when retained by
                                                 not subject to the rulemaking process as                do not enter the supply chain.
                                                                                                            We propose to add subpart 844.4,                    the contractor for continued use under
                                                 they are internal VA procedures and
                                                 guidance. Therefore, the VAAM will not                  Subcontracts for Commercial Items and                  a successor contract, such items would
                                                 be finalized until corresponding VAAR                   Commercial Components, and section                     become Government-furnished property
                                                 parts are finalized, and is not yet                     844.402, Policy requirements. Under                    (GFP). The items would be added to the
                                                 available on line.                                      section 844.402, we add paragraph                      successor contract as GFP by contract
                                                                                                         ‘‘(a)(3)’’ which would require that                    modification.
                                                 VAAR Part 844—Subcontracting                            contractors determine whether a
                                                 Policies and Procedures                                                                                           Paragraph (c) would provide that
                                                                                                         particular subcontract item meets the                  individual contractor-acquired property
                                                    We propose to add part 844 to the                    FAR definition of a commercial item.                   items would be recorded in the
                                                 VAAR. The authorities to be cited are:                  This requirement does not affect the                   contractor’s property management
                                                 40 U.S.C. 121(c) and 41 U.S.C. 1702,                    contracting officer’s responsibilities or              system at the contractor’s original
                                                 which address the overall direction of                  determinations made under FAR                          purchase cost or best estimate.
                                                 procurement policy, acquisition                         15.403–1(c)(3).
                                                 planning and management                                                                                           Paragraph (d) would provide that all
                                                 responsibilities of VA’s Chief                          VAAR Part 845—Government Property                      other contractor inventory that is excess
                                                 Acquisition Officer; and 48 CFR 1.301–                     We propose to add subpart 845.4,                    to the needs of the contract would be
                                                 1.304, which is the delegation of                       Title to Government Property. The                      disposed of in accordance with FAR
                                                 authority for agencies to issue                         authorities to be cited are: 40 U.S.C.                 subpart 45.6.
                                                 regulations that implement and                          121(c) which provides that the
                                                                                                                                                                Effect of Rulemaking
                                                 supplement the FAR.                                     Administrator of the General Services
                                                    This new part 844, Subcontracting                    Administration may prescribe                             Title 48, Federal Acquisition
                                                 Policies and Procedures, implements                     regulations to carry out responsibilities              Regulations System, Chapter 8,
                                                 FAR part 44 by making public VA’s                       under the Federal Property and                         Department of Veterans Affairs, of the
                                                 additional requirements for providing                   Administrative Services subtitle of Title              Code of Federal Regulations, as
                                                 its consent to subcontract, items that                  40, and, additionally, that the head of                proposed to be revised by this
                                                 should be evaluated as a part of a                      each executive agency shall issue orders               rulemaking, would represent VA’s
                                                 Contractor’s Purchasing Systems Review                  and directives that the agency head                    implementation of its legal authority
                                                 (CPSR), and establishing that                           considers necessary to carry out the                   and publication of the Department of
                                                 contractors should determine whether                    prescribed regulations issued by the
                                                                                                                                                                Veterans Affairs Acquisition Regulation
                                                 subcontract items meet the FAR                          Administrator; and 41 U.S.C. 1702,
                                                                                                                                                                (VAAR) for the cited applicable parts.
                                                 definition of a commercial item. Under                  which address the overall direction of
                                                                                                                                                                Other than future amendments to this
                                                 this new part, we propose to add                        procurement policy, acquisition
                                                                                                                                                                rule or governing statutes for the cited
                                                 subpart 844.2, Consent to Subcontracts,                 planning and management
                                                 and section 844.202–2, Considerations.                  responsibilities of VA’s Chief                         applicable parts, or as otherwise
                                                 We propose to add one paragraph to this                 Acquisition Officer; and 48 CFR 1.301–                 authorized by approved deviations or
                                                 section, (a)(14), which would require,                  1.304, which is the delegation of                      waivers in accordance with Federal
                                                 before a contracting officer consents to                authority for agencies to issue                        Acquisition Regulation (FAR) subpart
                                                 a subcontract where other than the                      regulations that implement and                         1.4, Deviations from the FAR, and as
                                                 lowest price is the basis for selection,                supplement the FAR.                                    implemented by VAAR subpart 801.4,
                                                 that the contractor has substantiated the                  We propose to add section 845.402,                  Deviations from the FAR or VAAR, no
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                                                 selection as being fair, reasonable, and                Title to contractor-acquired property (no              contrary guidance or procedures would
                                                 representing the best value to the                      text), and section, 845.402–70, Policy.                be authorized. All existing or
                                                 Government.                                             This implements and supplements the                    subsequent VA guidance would be read
                                                    We propose to add subpart 844.3,                     FAR by addressing procedures for                       to conform with the rulemaking if
                                                 Contractor’s Purchasing Systems                         contractors to document their                          possible or, if not possible, such
                                                 Reviews, and section 844.303, Extent of                 acquisition of property for use in the                 guidance would be superseded by this
                                                 review. We included three paragraphs to                 service of VA contracts; to address the                rulemaking as pertains to the cited
                                                 this section, paragraphs (f), (l), and (m).             transfer of title to the Government of                 applicable VAAR parts.


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                                                                            Federal Register / Vol. 83, No. 67 / Friday, April 6, 2018 / Proposed Rules                                              14835

                                                 Executive Orders 12866, 13563 and                       Regulatory Flexibility Act                             electronically as an official document of
                                                 13771                                                     This proposed rule would not have a                  the Department of Veterans Affairs. Gina
                                                                                                         significant economic impact on a                       S. Farrisee, Deputy Chief of Staff,
                                                    Executive Orders (E.O.s) 12866 and                                                                          Department of Veterans Affairs
                                                 13563 direct agencies to assess all costs               substantial number of small entities as
                                                                                                         they are defined in the Regulatory                     approved this document on October 20,
                                                 and benefits of available regulatory                                                                           2017, for publication.
                                                 alternatives and, if regulation is                      Flexibility Act, 5 U.S.C. 601–612. The
                                                                                                         overall impact of the proposed rule                      Dated: February 22, 2018.
                                                 necessary, to select regulatory
                                                                                                         would be of benefit to small businesses                Consuela Benjamin,
                                                 approaches that maximize net benefits
                                                                                                         owned by Veterans or service-disabled                  Office of Regulation Policy & Management,
                                                 (including potential economic,
                                                                                                         Veterans as the VAAR is being updated                  Office of the Secretary, Department of
                                                 environmental, public health and safety
                                                                                                         to remove extraneous procedural                        Veterans Affairs.
                                                 effects, distributive impacts, and
                                                                                                         information that applies only to VA’s
                                                 equity). E.O. 13563 emphasizes the                                                                             ■ For the reasons set out in the
                                                                                                         internal operating procedures. VA is
                                                 importance of quantifying both costs                                                                           preamble, VA proposes to amend 48
                                                                                                         merely adding existing and current
                                                 and benefits of reducing costs, of                                                                             CFR, chapter 8 by adding parts 844 and
                                                                                                         regulatory requirements to the VAAR
                                                 harmonizing rules, and of promoting                                                                            845 to read as follows:
                                                                                                         and removing any guidance that is
                                                 flexibility. E.O. 12866, Regulatory
                                                                                                         applicable only to VA’s internal
                                                 Planning and Review, defines                                                                                   PART 844—SUBCONTRACTING
                                                                                                         operation processes or procedures. VA
                                                 ‘‘significant regulatory action’’ to mean               estimates no cost impact to individual                 POLICIES AND PROCEDURES
                                                 any regulatory action that is likely to                 business would result from these rule
                                                 result in a rule that may: ‘‘(1) Have an                                                                       Sec.
                                                                                                         updates. This rulemaking does not
                                                 annual effect on the economy of $100                    change VA’s policy regarding small                     Subpart 844.2—Consent to Subcontracts
                                                 million or more or adversely affect in a                businesses, does not have an economic                  844.202–2    Considerations.
                                                 material way the economy, a sector of                   impact to individual businesses, and                   Subpart 844.3—Contractors’ Purchasing
                                                 the economy, productivity, competition,                 there are no increased or decreased                    Systems Reviews
                                                 jobs, the environment, public health or                 costs to small business entities. On this
                                                 safety, or State, local, or tribal                                                                             844.303   Extent of review.
                                                                                                         basis, the proposed rule would not have
                                                 governments or communities; (2) Create                  an economic impact on a substantial                    Subpart 844.4—Subcontracts for
                                                 a serious inconsistency or otherwise                    number of small entities as they are                   Commercial Items and Commercial
                                                 interfere with an action taken or                       defined in the Regulatory Flexibility
                                                                                                                                                                Components
                                                 planned by another agency; (3)                          Act, 5 U.S.C. 601–612. Therefore, under                844.402   Policy requirements.
                                                 Materially alter the budgetary impact of                5 U.S.C. 605(b), this regulatory action is               Authority: 40 U.S.C. 121(c); 41 U.S.C. 1702
                                                 entitlements, grants, user fees, or loan                exempt from the initial and final                      and 48 CFR 1.301–1.304.
                                                 programs or the rights and obligations of               regulatory flexibility analysis
                                                 recipients thereof; or (4) Raise novel                  requirements of sections 603 and 604.                  Subpart 844–2—Consent to
                                                 legal or policy issues arising out of legal                                                                    Subcontracts
                                                 mandates, the President’s priorities, or                Unfunded Mandates
                                                 the principles set forth in this Executive                                                                     844.202–2    Considerations.
                                                                                                            The Unfunded Mandates Reform Act
                                                 order.’’                                                of 1995 requires, at 2 U.S.C. 1532, that                  (a)(14) Where other than lowest price
                                                   VA has examined the economic,                         agencies prepare an assessment of                      is the basis for subcontractor selection,
                                                 interagency, budgetary, legal, and policy               anticipated costs and benefits before                  has the contractor adequately
                                                 implications of this regulatory action,                 issuing any rule that may result in the                substantiated the selection as being fair,
                                                 and it has been determined not to be a                  expenditure by State, local, and tribal                reasonable, and representing the best
                                                 significant regulatory action under E.O.                Governments, in the aggregate, or by the               value to the Government?
                                                 12866.                                                  private sector, of $100 million or more
                                                                                                         (adjusted annually for inflation) in any               Subpart 844.3—Contractors’
                                                    VA’s impact analysis can be found as                                                                        Purchasing Systems Reviews
                                                                                                         one year. This proposed rule would
                                                 a supporting document at http://
                                                                                                         have no such effect on State, local, and               844.303   Extent of review.
                                                 www.regulations.gov, usually within 48
                                                                                                         tribal Governments or on the private
                                                 hours after the rulemaking document is                                                                            (f) Policies and procedures pertaining
                                                                                                         sector.
                                                 published. Additionally, a copy of the                                                                         to the use of VA-verified Service-
                                                 rulemaking and its impact analysis are                  List of Subjects                                       Disabled Veteran-Owned Small
                                                 available on VA’s website at http://                                                                           Businesses (SDVOSBs) and Veteran-
                                                                                                         48 CFR Part 844
                                                 www.va.gov/orpm by following the link                                                                          Owned Small Businesses (VOSBs) and
                                                 for VA Regulations Published from FY                      Government procurement, Reporting                    utilization in accordance with subpart
                                                 2004 Through Fiscal Year to Date.                       and recordkeeping requirements.                        819.70 and the Veterans First
                                                   This proposed rule is not expected to                 48 CFR Part 845                                        Contracting Program.
                                                 be an E.O. 13771 regulatory action                                                                                (l) Documentation of commercial item
                                                                                                           Government procurement,
                                                 because this proposed rule is not                                                                              determinations to ensure compliance
                                                                                                         Government property, Reporting and
                                                 significant under E.O. 12866.
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                                                                                                         recordkeeping requirements.                            with the definition of ‘‘commercial
                                                                                                                                                                item’’ in FAR 2.101; and
                                                 Paperwork Reduction Act                                 Signing Authority                                         (m) For acquisitions involving
                                                   This proposed rule contains no                          The Secretary of Veterans Affairs, or                electronic parts, that the contractor has
                                                 provisions constituting a collection of                 designee, approved this document and                   implemented a counterfeit electronic
                                                 information under the Paperwork                         authorized the undersigned to sign and                 part detection and avoidance system to
                                                 Reduction Act of 1995 (44 U.S.C. 3501–                  submit the document to the Office of the               ensure that counterfeit electronic parts
                                                 3521).                                                  Federal Register for publication                       do not enter the supply chain.


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                                                 14836                       Federal Register / Vol. 83, No. 67 / Friday, April 6, 2018 / Proposed Rules

                                                 Subpart 844.4—Subcontracts for                           DEPARTMENT OF THE INTERIOR                             Cajundome Blvd., Suite 400, Lafayette,
                                                 Commercial Items and Commercial                                                                                 LA; telephone 337–291–3113. Persons
                                                 Components                                               Fish and Wildlife Service                              who use a telecommunications device
                                                                                                                                                                 for the deaf (TDD) may call the Federal
                                                 844.402    Policy requirements.                          50 CFR Part 17                                         Relay Service at 800–877–8339.
                                                   (a)(3) Determine whether a particular                  [Docket No. FWS–R4–ES–2018–0010;                       SUPPLEMENTARY INFORMATION:
                                                 subcontract item meets the definition of                 4500030113]                                            Previous Federal Actions
                                                 a commercial item. This requirement                      RIN 1018–BD06
                                                 does not affect the contracting officer’s                                                                          On October 6, 2016, the Service,
                                                 responsibilities or determinations made                                                                         under the authority of the Endangered
                                                                                                          Endangered and Threatened Wildlife                     Species Act, as amended (‘‘Act’’; 16
                                                 under FAR 15.403–1(c)(3).                                and Plants; Section 4(d) Rule for                      U.S.C. 1531 et seq.), published in the
                                                                                                          Louisiana Pinesnake                                    Federal Register a proposed rule to add
                                                 PART 845—GOVERNMENT PROPERTY
                                                                                                          AGENCY:   Fish and Wildlife Service,                   the Louisiana pinesnake (Pituophis
                                                 Sec.                                                     Interior.                                              ruthveni), a reptile from Louisiana and
                                                 Subpart 845.4—Title to Government                        ACTION: Proposed rule.                                 Texas, as a threatened species to the List
                                                 Property                                                                                                        of Endangered and Threatened Wildlife
                                                                                                          SUMMARY:    We, the U.S. Fish and                      (81 FR 69454). The List of Endangered
                                                 845.402 Title to contractor-acquired
                                                     property.                                            Wildlife Service (Service), propose a                  and Threatened Wildlife is in title 50 of
                                                 845.402–70 Policy.                                       rule under section 4(d) of the                         the Code of Federal Regulations in part
                                                                                                          Endangered Species Act for the                         17 (50 CFR 17.11(h)). The proposed
                                                   Authority: 40 U.S.C. 121(c); 41 U.S.C.                 Louisiana pinesnake (Pituophis                         listing rule had a 60-day comment
                                                 1702 and 48 CFR 1.301–1.304.                                                                                    period, ending on December 5, 2016.
                                                                                                          ruthveni), a reptile from Louisiana and
                                                                                                          Texas. This rule would provide                         Then, on October 6, 2017, the Service
                                                 Subpart 845.4—Title to Government
                                                                                                          measures to protect the species.                       published in the Federal Register a
                                                 Property
                                                                                                          DATES: We will accept comments                         document that reopened the comment
                                                 845.402 Title to contractor-acquired                     received or postmarked on or before                    period on the proposed rule and
                                                 property.                                                May 7, 2018. Comments submitted                        announced that we were extending by 6
                                                                                                          electronically using the Federal                       months the 1-year period for making a
                                                 845.402–70       Policy.                                                                                        final determination on the proposed
                                                                                                          eRulemaking Portal (see ADDRESSES,
                                                    (a) For other than firm-fixed-price                   below) must be received by 11:59 p.m.                  rule to list the Louisiana pinesnake as
                                                 contracts, contractor-acquired property                  Eastern Time on the closing date. We                   a threatened species (82 FR 46748). In
                                                 items not anticipated at time of contract                must receive requests for public                       accordance with section 4(b)(6)(A)(i)(III)
                                                 award, or not otherwise specified for                    hearings, in writing, at the address                   of the Act, this extension was based on
                                                 delivery on an existing line item, shall,                shown in FOR FURTHER INFORMATION                       our finding that there was substantial
                                                 by means of a contract modification, be                  CONTACT by April 23, 2018.
                                                                                                                                                                 disagreement regarding available
                                                 specified for delivery to the Government                                                                        information related to the interpretation
                                                                                                          ADDRESSES: You may submit comments
                                                 on an added contract line item. The                                                                             of the available survey data used to
                                                                                                          by one of the following methods:                       determine the Louisiana pinesnake’s
                                                 value of such contractor-acquired                          (1) Electronically: Go to the Federal
                                                 property item shall be recorded at the                                                                          status and trends. The second comment
                                                                                                          eRulemaking Portal: http://                            period closed November 6, 2017. No
                                                 original purchase cost. Unless otherwise                 www.regulations.gov. In the Search box,
                                                 noted by the contractor at the time of                                                                          public hearing was requested or held in
                                                                                                          enter FWS–R4–ES–2018–0010, which is                    response to publication of these
                                                 delivery to the Government, the placed-                  the docket number for this rulemaking.
                                                 in-service date shall be the date of                                                                            documents.
                                                                                                          Then, click on the Search button. On the                  Elsewhere in this issue of the Federal
                                                 acquisition or completed manufacture,                    resulting page, in the Search panel on                 Register, we publish a final rule for the
                                                 if fabricated.                                           the left side of the screen, under the                 2016 proposed listing rule for the
                                                    (b) Following delivery and acceptance                 Document Type heading, click on the                    Louisiana pinesnake as a threatened
                                                 by the Government of contractor-                         Proposed Rules link to locate this                     species. For a complete list of previous
                                                 acquired property items, if these items                  document. You may submit a comment                     Federal actions related to this species as
                                                 are to be retained by the contractor for                 by clicking on ‘‘Comment Now!’’                        well as information on its taxonomy,
                                                 continued use under a successor                            (2) By hard copy: Submit by U.S. mail                habitat, life history, historical and
                                                 contract, these items become                             or hand-delivery to: Public Comments                   current distribution, population
                                                 Government-furnished property (GFP).                     Processing, Attn: FWS–R4–ES–2018–                      estimates and status, and a summary of
                                                 The items shall be added to the                          0010, U.S. Fish and Wildlife Service,                  factors affecting the species, see that
                                                 successor contract as GFP by contract                    MS: BPHC, 5275 Leesburg Pike, Falls                    proposed rule (81 FR 69454, October 6,
                                                 modification.                                            Church, VA 22041–3803.                                 2016).
                                                                                                            We request that you send comments
                                                    (c) Individual contractor-acquired                                                                           Background
                                                                                                          only by the methods described above.
                                                 property items should be recorded in
                                                                                                          We will post all comments on http://                     The primary habitat feature that
                                                 the contractor’s property management
                                                                                                          www.regulations.gov. This generally                    contributes to the conservation of the
                                                 system at the contractor’s original
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                                                                                                          means that we will post any personal                   Louisiana pinesnake is open-canopy
                                                 purchase cost.
                                                                                                          information you provide us (see                        forest situated on well-drained sandy
                                                    (d) All other contractor inventory that               Information Requested, below, for more                 soils with an abundant herbaceous plant
                                                 is excess to the needs of the contract                   information).                                          community that provides forage for the
                                                 shall be disposed of in accordance with                  FOR FURTHER INFORMATION CONTACT:                       Baird’s pocket gopher (Geomys
                                                 FAR subpart 45.6.                                        Joseph Ranson, Field Supervisor, U.S.                  breviceps), which is the snake’s primary
                                                 [FR Doc. 2018–04004 Filed 4–5–18; 8:45 am]               Fish and Wildlife Service, Louisiana                   known source of food. In addition,
                                                 BILLING CODE 8320–01–P                                   Ecological Services Office, 646                        Baird’s pocket gopher burrows are the


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Document Created: 2018-11-01 09:15:39
Document Modified: 2018-11-01 09:15:39
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionProposed rule.
DatesComments must be received on or before June 5, 2018 to be considered in the formulation of the final rule.
ContactRafael Taylor, Senior Procurement Analyst, Procurement Policy and Warrant Management Services, 003A2A, 425 I Street NW, Washington, DC 20001, (202) 382-2787. (This is not a toll-free telephone number.)
FR Citation83 FR 14833 
RIN Number2900-AQ05
CFR Citation48 CFR 844
48 CFR 845
CFR AssociatedGovernment Procurement; Reporting and Recordkeeping Requirements and Government Property

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