83 FR 24895 - Defense Federal Acquisition Regulation Supplement: Micro-Purchase Threshold (DFARS Case 2017-D027)

DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System

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

Page Range		24895-24896
FR Document		2018-11349

DoD is issuing a final rule amending the Defense Federal Acquisition Regulation Supplement (DFARS) to implement sections of the National Defense Authorization Act for Fiscal Year 2017 that increase the micro-purchase thresholds for certain Department of Defense acquisitions.

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

[Federal Register Volume 83, Number 104 (Wednesday, May 30, 2018)]
[Rules and Regulations]
[Pages 24895-24896]
From the Federal Register Online [www.thefederalregister.org]
[FR Doc No: 2018-11349]

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DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Parts 202 and 252

[Docket DARS-2018-0027]
RIN 0750-AJ34

Defense Federal Acquisition Regulation Supplement: Micro-Purchase
Threshold (DFARS Case 2017-D027)

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 implement sections of the
National Defense Authorization Act for Fiscal Year 2017 that increase
the micro-purchase thresholds for certain Department of Defense
acquisitions.

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 implement sections 217(a) and 821 of
the National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2017
(Pub. L. 114-328). Section 821 increases the micro-purchase threshold
for the Department of Defense procurements to $5,000. Section 217(a)
further increases the micro-purchase threshold to $10,000 for purposes
of DoD basic research programs and for the activities of the DoD
science and technology reinvention laboratories. Accordingly, DFARS
section 202.101, Definitions, is amended to add a new micro-purchase
threshold definition as it relates to DoD procurements, to be used in
lieu of the definition in the Federal Acquisition Regulation (FAR). To
align with the addition of the new DoD micro-purchase definition, a
cross-reference to the definition at FAR 2.101 is revised in DFARS
clause 252.232-7009, Mandatory Payments by Governmentwide Commercial
Purchase Card.

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

This rule amends DFARS 202.101 to add an alternate definition for
``micro-purchase threshold'' in lieu of the definition of ``micro-
purchase threshold'' at FAR 2.101. This rule simply clarifies the
application of the micro-purchase threshold as it relates to DoD
procurements, and does not apply additional requirements to contracts
at or below the SAT or for the acquisition of commercial items,
including COTS items.

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

The statute that applies to the publication of the 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 it clarifies the application of the micro-purchase threshold as
it relates to DoD procurements, and does not have significant effect
beyond the internal operating procedures of the agency issuing the
policy. These requirements affect only the internal operating
procedures of the Government.

IV. 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.

V. 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.

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

VIII. 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).

[[Page 24896]]

List of Subjects in 48 CFR Parts 202 and 252

Government procurement.

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

Therefore, 48 CFR parts 202 and 252 are amended as follows:

0
1. The authority citation for 48 CFR parts 202 and 252 continues to
read as follows:

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

PART 202--DEFINITIONS OF WORDS AND TERMS

0
2. Amend section 202.101 by adding a definition for ``Micro-purchase
threshold'' in alphabetical order to read as follows:

202.101 Definitions.

* * * * *
Micro-purchase threshold, for DoD acquisition of supplies or
services funded by DoD appropriations, in lieu of the definition at FAR
2.101, means $5,000 (10 U.S.C. 2338), except--
(1) For DoD acquisition of supplies or services for basic research
programs and for activities of the DoD science and technology
reinvention laboratories (https://www.acq.osd.mil/rd/laboratories/labs/list_strl.html), it means $10,000 (10 U.S.C. 2339);
(2) For acquisitions of construction subject to 40 U.S.C. chapter
31, subchapter IV, Wage Rate Requirements (Construction), $2,000;
(3) For acquisitions of services subject to 41 U.S.C. chapter 67,
Service Contract Labor Standards, $2,500; and
(4) For acquisitions of supplies or services that, as determined by
the head of the contracting activity, are to be used to support a
contingency operation; or to facilitate defense against or recovery
from cyber, nuclear, biological, chemical or radiological attack; to
support a request from the Secretary of State or the Administrator of
the United States Agency for International Development to facilitate
provision of international disaster assistance pursuant to 22 U.S.C.
2292 et seq.; or to support response to an emergency, or major disaster
(42 U.S.C. 5122), as described in 13.201(g)(1), except for construction
subject to 40 U.S.C. chapter 31, subchapter IV, Wage Rate Requirements
(Construction) (41 U.S.C. 1903)--
(i) $20,000 in the case of any contract to be awarded and
performed, or purchase to be made, inside the United States; and
(ii) $30,000 in the case of any contract to be awarded and
performed, or purchase to be made, outside the United States.
* * * * *

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

0
3. Amend section 252.232-7009 by--
0
a. Removing the clause date ``(DEC 2006)'' and adding ``(MAY 2018)'' in
its place;
0
b. In the clause text, removing ``Part 2 of the Federal Acquisition
Regulation'' and adding ``part 202 of the Defense Federal Acquisition
Regulation Supplement'' in its place.

[FR Doc. 2018-11349 Filed 5-29-18; 8:45 am]
BILLING CODE 5001-06-P

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

VerDate Sep<11>2014 17:57 May 29, 2018 Jkt 244001 PO 00000 Frm 00011 Fmt 4701 Sfmt 4700 E:\FR\FM\30MYR2.SGM 30MYR2

$24896 Federal Register / Vol. 83, No. 104 / Wednesday, May 30, 2018 / Rules and Regulations List of Subjects in 48 CFR Parts 202 and (1) For DoD acquisition of supplies or construction subject to 40 U.S.C. 252 services for basic research programs and chapter 31, subchapter IV, Wage Rate Government procurement. for activities of the DoD science and Requirements (Construction) (41 U.S.C. technology reinvention laboratories 1903)— Amy G. Williams, (https://www.acq.osd.mil/rd/ (i) $20,000 in the case of any contract Deputy, Defense Acquisition Regulations laboratories/labs/list_strl.html), it to be awarded and performed, or System. means $10,000 (10 U.S.C. 2339); purchase to be made, inside the United Therefore, 48 CFR parts 202 and 252 (2) For acquisitions of construction States; and are amended as follows: subject to 40 U.S.C. chapter 31, (ii) $30,000 in the case of any contract subchapter IV, Wage Rate Requirements to be awarded and performed, or ■ 1. The authority citation for 48 CFR (Construction), $2,000; purchase to be made, outside the United parts 202 and 252 continues to read as (3) For acquisitions of services subject States. follows: to 41 U.S.C. chapter 67, Service Contract * * * * * Authority: 41 U.S.C. 1303 and 48 CFR Labor Standards, $2,500; and chapter 1. (4) For acquisitions of supplies or services that, as determined by the head PART 252—SOLICITATION PART 202—DEFINITIONS OF WORDS PROVISIONS AND CONTRACT of the contracting activity, are to be used AND TERMS CLAUSES to support a contingency operation; or ■ 2. Amend section 202.101 by adding to facilitate defense against or recovery ■ 3. Amend section 252.232–7009 by— a definition for ‘‘Micro-purchase from cyber, nuclear, biological, chemical or radiological attack; to ■ a. Removing the clause date ‘‘(DEC threshold’’ in alphabetical order to read 2006)’’ and adding ‘‘(MAY 2018)’’ in its as follows: support a request from the Secretary of State or the Administrator of the United place; 202.101 Definitions. States Agency for International ■ b. In the clause text, removing ‘‘Part * * * * * Development to facilitate provision of 2 of the Federal Acquisition Regulation’’ Micro-purchase threshold, for DoD international disaster assistance and adding ‘‘part 202 of the Defense acquisition of supplies or services pursuant to 22 U.S.C. 2292 et seq.; or to Federal Acquisition Regulation funded by DoD appropriations, in lieu support response to an emergency, or Supplement’’ in its place. of the definition at FAR 2.101, means major disaster (42 U.S.C. 5122), as [FR Doc. 2018–11349 Filed 5–29–18; 8:45 am] $5,000 (10 U.S.C. 2338), except— described in 13.201(g)(1), except for BILLING CODE 5001–06–P sradovich on DSK3GMQ082PROD with RULES2 VerDate Sep<11>2014 17:57 May 29, 2018 Jkt 244001 PO 00000 Frm 00012 Fmt 4701 Sfmt 9990 E:\FR\FM\30MYR2.SGM 30MYR2$

Document Created: 2018-05-30 01:01:52
Document Modified: 2018-05-30 01:01:52

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Rules and Regulations
Action		Final rule.
Dates		Effective May 30, 2018.
Contact		Ms. Carrie Moore, telephone 571-372- 6093.
FR Citation		83 FR 24895
RIN Number		0750-AJ34
CFR Citation		48 CFR 202 48 CFR 252

83 FR 24895 - Defense Federal Acquisition Regulation Supplement: Micro-Purchase Threshold (DFARS Case 2017-D027)

DEPARTMENT OF DEFENSEDefense Acquisition Regulations System

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

DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System