[Federal Register Volume 68, Number 140 (Tuesday, July 22, 2003)]
[Rules and Regulations]
[Pages 43331-43332]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-18449]
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DEPARTMENT OF DEFENSE
48 CFR Part 207
[DFARS Case 2002-D036]
Defense Federal Acquisition Regulation Supplement; Buy-to-Budget
Acquisition of End Items
AGENCY: Department of Defense (DoD).
ACTION: Interim rule with request for comments.
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SUMMARY: DoD has issued an interim rule amending the Defense Federal
Acquisition Regulation Supplement (DFARS) to implement Section 801 of
the National Defense Authorization Act for Fiscal Year 2003. Section
801 authorizes DoD to acquire a higher quantity of an end item than the
quantity specified in law, under certain conditions.
DATES: Effective date: July 22, 2003.
Comment date: Comments on the interim rule should be submitted to
the address shown below on or before September 22, 2003, to be
considered in the formation of the final rule.
ADDRESSES: Respondents may submit comments directly on the World Wide
Web at http://emissary.acq.osd.mil/dar/dfars.nsf/pubcomm. As an
alternative, respondents may e-mail comments to: [email protected].
Please cite DFARS Case 2002-D036 in the subject line of e-mailed
comments.
Respondents that cannot submit comments using either of the above
methods may submit comments to: Defense Acquisition Regulations
Council, Attn: Ms. Susan Schneider, OUSD(AT&L)DPAP(DAR), IMD 3C132,
3062 Defense Pentagon, Washington, DC 20301-3062; facsimile (703) 602-
0350. Please cite DFARS Case 2002-D036.
At the end of the comment period, interested parties may view
public comments on the World Wide Web at http://emissary.acq.osd.mil/dar/dfars.nsf.
FOR FURTHER INFORMATION CONTACT: Ms. Susan Schneider, (703) 602-0326.
SUPPLEMENTARY INFORMATION:
A. Background
This interim rule adds a new subpart at DFARS 207.70 to implement
Section 801 of the National Defense Authorization Act for Fiscal Year
2003 (Pub. L. 107-314). Section 801 added 10 U.S.C. 2308, which
provides that DoD may acquire a higher quantity of an end item than the
quantity specified in a law providing for the funding of the
acquisition, if the agency head makes certain findings with regard to
the acquisition.
This rule was not subject to Office of Management and Budget review
under Executive Order 12866, dated September 30, 1993.
B. Regulatory Flexibility Act
DoD does not expect this rule to have a significant economic impact
on a substantial number of small entities within the meaning of the
Regulatory Flexibility Act, 5 U.S.C. 601, et seq., because any
additional quantities acquired as a result of this rule must be
acquired without additional funding. Therefore, DoD has not performed
an initial regulatory flexibility analysis. DoD invites comments from
small businesses and other interested parties. DoD also will consider
comments from small entities concerning the affected DFARS subpart in
accordance with 5 U.S.C. 610. Such comments should be submitted
separately and should cite DFARS Case 2002-D036.
C. Paperwork Reduction Act
The Paperwork Reduction Act does not apply because the rule does
not impose any information collection requirements that require the
approval of the Office of Management and Budget under 44 U.S.C. 3501,
et seq.
D. Determination To Issue an Interim Rule
A determination has been made under the authority of the Secretary
of Defense that urgent and compelling reasons exist to publish an
interim rule prior to affording the public an opportunity to comment.
This interim rule implements Section 801 of the National Defense
Authorization Act for Fiscal Year 2003 (Pub. L. 107-314), which
authorizes DoD to acquire a higher quantity of an end item than the
quantity specified in law, under certain conditions. Section 801
required issuance of final implementing regulations by April 1, 2003.
Comments received in response to this interim rule will be considered
in the formation of the final rule.
List of Subjects in 48 CFR Part 207
Government procurement.
Michele P. Peterson,
Executive Editor, Defense Acquisition Regulations Council.
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Therefore, 48 CFR Part 207 is amended as follows:
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1. The authority citation for 48 CFR Part 207 continues to read as
follows:
Authority: 41 U.S.C. 421 and 48 CFR Chapter 1.
PART 207--ACQUISITION PLANNING
0
2. Subpart 207.70 is added to read as follows:
Subpart 207.70--Buy-to-Budget--Additional Quantities of End Items
Sec.
207.7001 Definition.
207.7002 Authority to acquire additional quantities of end items.
207.7003 Limitation.
Subpart 207.70--Buy-to-Budget--Additional Quantities of End Items
207.7001 Definition.
End item, as used in this subpart, means a production product
assembled, completed, and ready for issue or deployment.
207.7002 Authority to acquire additional quantities of end items.
10 U.S.C. 2308 authorizes DoD to use funds available for the
acquisition of an end item to acquire a higher quantity of the end item
than the quantity specified in a law providing for the funding of that
acquisition, if the head of an agency determines that--
(a) The agency has an established requirement for the end item that
is expected to remain substantially unchanged throughout the period of
the acquisition;
(b) It is possible to acquire the higher quantity of the end item
without
[[Page 43332]]
additional funding because of production efficiencies or other cost
reductions;
(c) The amount of funds used for the acquisition of the higher
quantity of the end item will not exceed the amount provided under that
law for the acquisition of the end item; and
(d) The amount provided under that law for the acquisition of the
end item is sufficient to ensure that each unit of the end item
acquired within the higher quantity is fully funded as a complete end
item.
207.7003 Limitation.
For noncompetitive acquisitions, the acquisition of additional
quantities is limited to not more than 10 percent of the quantity
approved in the justification and approval prepared in accordance with
FAR part 6 for the acquisition of the end item.
[FR Doc. 03-18449 Filed 7-22-03; 8:45 am]
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