83_FR_24998 83 FR 24894 - Defense Federal Acquisition Regulation Supplement: Repeal of DFARS Provision “Alternate A, System for Award Management” (DFARS Case 2017-D044)

83 FR 24894 - Defense Federal Acquisition Regulation Supplement: Repeal of DFARS Provision “Alternate A, System for Award Management” (DFARS Case 2017-D044)

DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System

Federal Register Volume 83, Issue 104 (May 30, 2018)

Page Range24894-24895
FR Document2018-11347

DoD is issuing a final rule amending the Defense Federal Acquisition Regulation Supplement (DFARS) to remove a provision that is duplicative of an existing Federal Acquisition Regulation (FAR) provision that requires a vendor to enter Commercial and Government Entity (CAGE) code information into a Governmentwide database prior to award of any contract or agreement.

Federal Register, Volume 83 Issue 104 (Wednesday, May 30, 2018)
[Federal Register Volume 83, Number 104 (Wednesday, May 30, 2018)]
[Rules and Regulations]
[Pages 24894-24895]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-11347]


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DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Parts 204 and 252

[Docket DARS-2017-0015]
RIN 0750-AJ54


Defense Federal Acquisition Regulation Supplement: Repeal of 
DFARS Provision ``Alternate A, System for Award Management'' (DFARS 
Case 2017-D044)

AGENCY: Defense Acquisition Regulations System, Department of Defense 
(DoD).

ACTION: Final rule.

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

SUMMARY: DoD is issuing a final rule amending the Defense Federal 
Acquisition Regulation Supplement (DFARS) to remove a provision that is 
duplicative of an existing Federal Acquisition Regulation (FAR) 
provision that requires a vendor to enter Commercial and Government 
Entity (CAGE) code information into a Governmentwide database prior to 
award of any contract or agreement.

DATES: Effective May 30, 2018.

FOR FURTHER INFORMATION CONTACT: Ms. Carrie Moore, telephone 571-372-
6093.

SUPPLEMENTARY INFORMATION: 

I. Background

    DoD is amending the DFARS to remove the DFARS provision 252.204-
7004, Alternate A, System for Award Management (SAM), and the 
associated provision prescription at DFARS 204.1105. The DFARS 
provision provided definitions that are to be substituted for the 
definitions in paragraph (a) of the FAR provision 52.204-7, System for 
Award Management. The FAR provision is prescribed for use in most 
solicitations. The purpose of the FAR provision is to inform offerors 
of the requirement to be registered in SAM in order to be eligible for 
an award. The DFARS provision was created for use in DoD solicitations, 
to ensure, in part, that offerors responding to DoD solicitations 
understood that they needed to enter a CAGE code in SAM in order to be 
considered registered in the system. However, the DFARS provision is no 
longer necessary, because the definition of ``Registered in the System 
for Award Management (SAM) database'' in paragraph (a) of the FAR 
provision has been updated to include a CAGE code as part of the 
information required from an offeror in order to be considered 
registered in SAM. As such, this DFARS alternate provision is redundant 
and can be removed.
    The removal of this DFARS text supports a recommendation from the 
DoD Regulatory Reform Task Force. On February 24, 2017, the President 
signed Executive Order (E.O.) 13777, ``Enforcing the Regulatory Reform 
Agenda,'' which established a Federal policy ``to alleviate unnecessary 
regulatory burdens'' on the American people. In accordance with E.O. 
13777, DoD established a Regulatory Reform Task Force to review and 
validate DoD regulations, including the DFARS. A public notice of the 
establishment of the DFARS Subgroup to the DoD Regulatory Reform Task 
Force, for the purpose of reviewing DFARS provisions and clauses, was 
published in the Federal Register at 82 FR 35741 on August 1, 2017, and 
requested public input. No public comments were received on this 
provision. Subsequently, the DoD Task Force reviewed the requirements 
of DFARS provision 252.204-7004, Alternate A, System for Award 
Management, and determined that the DFARS coverage was redundant and 
recommended removal.

II. Applicability to Contracts at or Below the Simplified Acquisition 
Threshold and for Commercial Items, Including Commercially Available 
Off-the-Shelf Items

    This rule merely removes obsolete DFARS provision 252.204-7004, 
Alternate A, System for Award Management. Therefore, the rule does not 
impose any new requirements on contracts at or below the simplified 
acquisition threshold and for commercial items, including commercially 
available off-the-shelf items.

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. Executive Order 13771

    This rule is not an E.O. 13771, Reducing and Controlling Regulatory 
Costs, regulatory action, because this rule is not significant under 
E.O. 12866.

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

    The statute that applies to the publication of the Federal 
Acquisition Regulation (FAR) is the Office of Federal Procurement 
Policy statute (codified at title 41 of the United States Code). 
Specifically, 41 U.S.C. 1707(a)(1) requires that a procurement policy, 
regulation, procedure or form (including an amendment or modification 
thereof) must be published for public comment if it relates to the 
expenditure of appropriated funds, and has either a significant effect 
beyond the internal operating procedures of the agency issuing the 
policy, regulation, procedure, or form, or has a significant cost or 
administrative impact on contractors or offerors. This final rule is 
not required to be published for public comment, because DoD is not 
issuing a new regulation; rather, this rule merely removes an obsolete 
requirement from the DFARS.

VI. Regulatory Flexibility Act

    Because a notice of proposed rulemaking and an opportunity for 
public comment are not required to be given for this rule under 41 
U.S.C. 1707(a)(1) (see section III. of this preamble), the analytical 
requirements of the Regulatory Flexibility Act (5

[[Page 24895]]

U.S.C. 601 et seq.) are not applicable. Accordingly, no regulatory 
flexibility analysis is required and none has been prepared.

VII. 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 204 and 252

    Government procurement.


Amy G. Williams,
Deputy, Defense Acquisition Regulations System.

    Therefore, 48 CFR parts 204 and 252 are amended as follows:

0
1. The authority citation for parts 204 and 252 continues to read as 
follows:

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

PART 204--ADMINISTRATIVE MATTERS


204.1105   [Removed]

0
2. Remove section 204.1105.

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES


252.204-7004   [Removed and Reserved]

0
3. Remove and reserve section 252.204-7004.

[FR Doc. 2018-11347 Filed 5-29-18; 8:45 am]
 BILLING CODE 5001-06-P



                                               24894            Federal Register / Vol. 83, No. 104 / Wednesday, May 30, 2018 / Rules and Regulations

                                               PART 222—APPLICATION OF LABOR                           Management (SAM), and the associated                  contracts at or below the simplified
                                               LAWS TO GOVERNMENT                                      provision prescription at DFARS                       acquisition threshold and for
                                               ACQUISITIONS                                            204.1105. The DFARS provision                         commercial items, including
                                                                                                       provided definitions that are to be                   commercially available off-the-shelf
                                               Subpart 222.71 [Removed and                             substituted for the definitions in                    items.
                                               Reserved]                                               paragraph (a) of the FAR provision
                                                                                                                                                             III. Executive Orders 12866 and 13563
                                                                                                       52.204–7, System for Award
                                               ■ 2. Remove and reserve subpart 222.71,                 Management. The FAR provision is                         Executive Orders (E.O.s) 12866 and
                                               consisting of sections 222.7101 and                     prescribed for use in most solicitations.             13563 direct agencies to assess all costs
                                               222.7102.                                               The purpose of the FAR provision is to                and benefits of available regulatory
                                                                                                       inform offerors of the requirement to be              alternatives and, if regulation is
                                               PART 237—SERVICE CONTRACTING                            registered in SAM in order to be eligible             necessary, to select regulatory
                                               237.7401    [Amended]                                   for an award. The DFARS provision was                 approaches that maximize net benefits
                                                                                                       created for use in DoD solicitations, to              (including potential economic,
                                               ■ 3. Amend section 237.7401 by                          ensure, in part, that offerors responding             environmental, public health and safety
                                               removing paragraph (d).                                 to DoD solicitations understood that                  effects, distributive impacts, and
                                                                                                       they needed to enter a CAGE code in                   equity). E.O. 13563 emphasizes the
                                               PART 252—SOLICITATION
                                                                                                       SAM in order to be considered                         importance of quantifying both costs
                                               PROVISIONS AND CONTRACT
                                                                                                       registered in the system. However, the                and benefits, of reducing costs, of
                                               CLAUSES
                                                                                                       DFARS provision is no longer                          harmonizing rules, and of promoting
                                               252.222–7001      [Removed and Reserved]                necessary, because the definition of                  flexibility. This is not a significant
                                                                                                       ‘‘Registered in the System for Award                  regulatory action and, therefore, was not
                                               ■ 4. Remove and reserve section
                                                                                                       Management (SAM) database’’ in                        subject to review under section 6(b) of
                                               252.222–7001.
                                                                                                       paragraph (a) of the FAR provision has                E.O. 12866, Regulatory Planning and
                                               [FR Doc. 2018–11346 Filed 5–29–18; 8:45 am]             been updated to include a CAGE code                   Review, dated September 30, 1993. This
                                               BILLING CODE 5001–06–P                                  as part of the information required from              rule is not a major rule under 5 U.S.C.
                                                                                                       an offeror in order to be considered                  804.
                                                                                                       registered in SAM. As such, this DFARS
                                               DEPARTMENT OF DEFENSE                                   alternate provision is redundant and can              IV. Executive Order 13771
                                                                                                       be removed.                                             This rule is not an E.O. 13771,
                                               Defense Acquisition Regulations                            The removal of this DFARS text                     Reducing and Controlling Regulatory
                                               System                                                  supports a recommendation from the                    Costs, regulatory action, because this
                                                                                                       DoD Regulatory Reform Task Force. On                  rule is not significant under E.O. 12866.
                                               48 CFR Parts 204 and 252                                February 24, 2017, the President signed
                                                                                                                                                             V. Publication of This Final Rule for
                                               [Docket DARS–2017–0015]                                 Executive Order (E.O.) 13777,
                                                                                                                                                             Public Comment Is Not Required by
                                                                                                       ‘‘Enforcing the Regulatory Reform
                                               RIN 0750–AJ54                                                                                                 Statute
                                                                                                       Agenda,’’ which established a Federal
                                                                                                       policy ‘‘to alleviate unnecessary                        The statute that applies to the
                                               Defense Federal Acquisition                             regulatory burdens’’ on the American                  publication of the Federal Acquisition
                                               Regulation Supplement: Repeal of                        people. In accordance with E.O. 13777,                Regulation (FAR) is the Office of Federal
                                               DFARS Provision ‘‘Alternate A, System                   DoD established a Regulatory Reform                   Procurement Policy statute (codified at
                                               for Award Management’’ (DFARS Case                      Task Force to review and validate DoD                 title 41 of the United States Code).
                                               2017–D044)                                              regulations, including the DFARS. A                   Specifically, 41 U.S.C. 1707(a)(1)
                                               AGENCY:  Defense Acquisition                            public notice of the establishment of the             requires that a procurement policy,
                                               Regulations System, Department of                       DFARS Subgroup to the DoD Regulatory                  regulation, procedure or form (including
                                               Defense (DoD).                                          Reform Task Force, for the purpose of                 an amendment or modification thereof)
                                                                                                       reviewing DFARS provisions and                        must be published for public comment
                                               ACTION: Final rule.
                                                                                                       clauses, was published in the Federal                 if it relates to the expenditure of
                                               SUMMARY:   DoD is issuing a final rule                  Register at 82 FR 35741 on August 1,                  appropriated funds, and has either a
                                               amending the Defense Federal                            2017, and requested public input. No                  significant effect beyond the internal
                                               Acquisition Regulation Supplement                       public comments were received on this                 operating procedures of the agency
                                               (DFARS) to remove a provision that is                   provision. Subsequently, the DoD Task                 issuing the policy, regulation,
                                               duplicative of an existing Federal                      Force reviewed the requirements of                    procedure, or form, or has a significant
                                               Acquisition Regulation (FAR) provision                  DFARS provision 252.204–7004,                         cost or administrative impact on
                                               that requires a vendor to enter                         Alternate A, System for Award                         contractors or offerors. This final rule is
                                               Commercial and Government Entity                        Management, and determined that the                   not required to be published for public
                                               (CAGE) code information into a                          DFARS coverage was redundant and                      comment, because DoD is not issuing a
                                               Governmentwide database prior to                        recommended removal.                                  new regulation; rather, this rule merely
                                               award of any contract or agreement.                                                                           removes an obsolete requirement from
                                                                                                       II. Applicability to Contracts at or
                                                                                                                                                             the DFARS.
                                               DATES: Effective May 30, 2018.                          Below the Simplified Acquisition
                                               FOR FURTHER INFORMATION CONTACT: Ms.                    Threshold and for Commercial Items,                   VI. Regulatory Flexibility Act
sradovich on DSK3GMQ082PROD with RULES2




                                               Carrie Moore, telephone 571–372–6093.                   Including Commercially Available Off-                   Because a notice of proposed
                                               SUPPLEMENTARY INFORMATION:
                                                                                                       the-Shelf Items                                       rulemaking and an opportunity for
                                                                                                          This rule merely removes obsolete                  public comment are not required to be
                                               I. Background                                           DFARS provision 252.204–7004,                         given for this rule under 41 U.S.C.
                                                 DoD is amending the DFARS to                          Alternate A, System for Award                         1707(a)(1) (see section III. of this
                                               remove the DFARS provision 252.204–                     Management. Therefore, the rule does                  preamble), the analytical requirements
                                               7004, Alternate A, System for Award                     not impose any new requirements on                    of the Regulatory Flexibility Act (5


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                                                                Federal Register / Vol. 83, No. 104 / Wednesday, May 30, 2018 / Rules and Regulations                                           24895

                                               U.S.C. 601 et seq.) are not applicable.                 Fiscal Year 2017 that increase the                    significant effect beyond the internal
                                               Accordingly, no regulatory flexibility                  micro-purchase thresholds for certain                 operating procedures of the agency
                                               analysis is required and none has been                  Department of Defense acquisitions.                   issuing the policy, regulation, procedure
                                               prepared.                                               DATES: Effective May 30, 2018.                        or form, or has a significant cost or
                                               VII. Paperwork Reduction Act                            FOR FURTHER INFORMATION CONTACT: Ms.                  administrative impact on contractors or
                                                                                                       Carrie Moore, telephone 571–372–6093.                 offerors. This final rule is not required
                                                 The rule does not contain any                                                                               to be published for public comment,
                                               information collection requirements that                SUPPLEMENTARY INFORMATION:
                                                                                                                                                             because it clarifies the application of the
                                               require the approval of the Office of                   I. Background                                         micro-purchase threshold as it relates to
                                               Management and Budget under the
                                                                                                         DoD is amending the DFARS to                        DoD procurements, and does not have
                                               Paperwork Reduction Act (44 U.S.C.
                                                                                                       implement sections 217(a) and 821 of                  significant effect beyond the internal
                                               chapter 35).
                                                                                                       the National Defense Authorization Act                operating procedures of the agency
                                               List of Subjects in 48 CFR Parts 204 and                (NDAA) for Fiscal Year (FY) 2017 (Pub.                issuing the policy. These requirements
                                               252                                                     L. 114–328). Section 821 increases the                affect only the internal operating
                                                   Government procurement.                             micro-purchase threshold for the                      procedures of the Government.
                                                                                                       Department of Defense procurements to
                                               Amy G. Williams,                                        $5,000. Section 217(a) further increases              IV. Executive Orders 12866 and 13563
                                               Deputy, Defense Acquisition Regulations                 the micro-purchase threshold to $10,000                  Executive Orders (E.O.s) 12866 and
                                               System.                                                 for purposes of DoD basic research
                                                                                                                                                             13563 direct agencies to assess all costs
                                                                                                       programs and for the activities of the
                                                 Therefore, 48 CFR parts 204 and 252                                                                         and benefits of available regulatory
                                                                                                       DoD science and technology reinvention
                                               are amended as follows:                                                                                       alternatives and, if regulation is
                                                                                                       laboratories. Accordingly, DFARS
                                               ■ 1. The authority citation for parts 204               section 202.101, Definitions, is amended              necessary, to select regulatory
                                               and 252 continues to read as follows:                   to add a new micro-purchase threshold                 approaches that maximize net benefits
                                                 Authority: 41 U.S.C. 1303 and 48 CFR                  definition as it relates to DoD                       (including potential economic,
                                               chapter 1.                                              procurements, to be used in lieu of the               environmental, public health and safety
                                                                                                       definition in the Federal Acquisition                 effects, distributive impacts, and
                                               PART 204—ADMINISTRATIVE                                 Regulation (FAR). To align with the                   equity). E.O. 13563 emphasizes the
                                               MATTERS                                                 addition of the new DoD micro-                        importance of quantifying both costs
                                               204.1105    [Removed]                                   purchase definition, a cross-reference to             and benefits, of reducing costs, of
                                                                                                       the definition at FAR 2.101 is revised in             harmonizing rules, and of promoting
                                               ■   2. Remove section 204.1105.                         DFARS clause 252.232–7009,                            flexibility. This is not a significant
                                                                                                       Mandatory Payments by                                 regulatory action and, therefore, was not
                                               PART 252—SOLICITATION
                                                                                                       Governmentwide Commercial Purchase                    subject to review under section 6(b) of
                                               PROVISIONS AND CONTRACT
                                                                                                       Card.                                                 E.O. 12866, Regulatory Planning and
                                               CLAUSES
                                                                                                       II. Applicability to Contracts at or                  Review, dated September 30, 1993. This
                                               252.204–7004      [Removed and Reserved]
                                                                                                       Below the Simplified Acquisition                      rule is not a major rule under 5 U.S.C.
                                               ■ 3. Remove and reserve section                         Threshold (SAT) and for Commercial                    804.
                                               252.204–7004.                                           Items, Including Commercially                         V. Executive Order 13771
                                               [FR Doc. 2018–11347 Filed 5–29–18; 8:45 am]             Available Off-the-Shelf (COTS) Items
                                               BILLING CODE 5001–06–P                                     This rule amends DFARS 202.101 to                    This rule is not an E.O. 13771,
                                                                                                       add an alternate definition for ‘‘micro-              Reducing and Controlling Regulatory
                                                                                                       purchase threshold’’ in lieu of the                   Costs, regulatory action, because this
                                               DEPARTMENT OF DEFENSE                                   definition of ‘‘micro-purchase                        rule is not significant under E.O. 12866.
                                                                                                       threshold’’ at FAR 2.101. This rule                   VII. Regulatory Flexibility Act
                                               Defense Acquisition Regulations
                                                                                                       simply clarifies the application of the
                                               System
                                                                                                       micro-purchase threshold as it relates to               Because a notice of proposed
                                                                                                       DoD procurements, and does not apply                  rulemaking and an opportunity for
                                               48 CFR Parts 202 and 252
                                                                                                       additional requirements to contracts at               public comment are not required to be
                                               [Docket DARS–2018–0027]                                 or below the SAT or for the acquisition               given for this rule under 41 U.S.C.
                                                                                                       of commercial items, including COTS                   1707(a)(1) (see section III. of this
                                               RIN 0750–AJ34
                                                                                                       items.                                                preamble), the analytical requirements
                                               Defense Federal Acquisition                             III. Publication of This Final Rule for               of the Regulatory Flexibility Act (5
                                               Regulation Supplement: Micro-                           Public Comment Is Not Required by                     U.S.C. 601 et seq.) are not applicable.
                                               Purchase Threshold (DFARS Case                          Statute                                               Accordingly, no regulatory flexibility
                                               2017–D027)                                                                                                    analysis is required and none has been
                                                                                                          The statute that applies to the
                                                                                                       publication of the FAR is the Office of               prepared.
                                               AGENCY:  Defense Acquisition
                                               Regulations System, Department of                       Federal Procurement Policy statute                    VIII. Paperwork Reduction Act
                                               Defense (DoD).                                          (codified at title 41 of the United States
sradovich on DSK3GMQ082PROD with RULES2




                                               ACTION: Final rule.                                     Code). Specifically, 41 U.S.C. 1707(a)(1)               The rule does not contain any
                                                                                                       requires that a procurement policy,                   information collection requirements that
                                               SUMMARY:  DoD is issuing a final rule                   regulation, procedure or form (including              require the approval of the Office of
                                               amending the Defense Federal                            an amendment or modification thereof)                 Management and Budget under the
                                               Acquisition Regulation Supplement                       must be published for public comment                  Paperwork Reduction Act (44 U.S.C.
                                               (DFARS) to implement sections of the                    if it relates to the expenditure of                   chapter 35).
                                               National Defense Authorization Act for                  appropriated funds, and has either a


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Document Created: 2018-05-30 01:02:15
Document Modified: 2018-05-30 01:02:15
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal rule.
DatesEffective May 30, 2018.
ContactMs. Carrie Moore, telephone 571-372- 6093.
FR Citation83 FR 24894 
RIN Number0750-AJ54
CFR Citation48 CFR 204
48 CFR 252

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