[Federal Register Volume 68, Number 162 (Thursday, August 21, 2003)]
[Rules and Regulations]
[Pages 50474-50475]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-21309]
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DEPARTMENT OF DEFENSE
48 CFR Part 217
[DFARS Case 2002-D041]
Defense Federal Acquisition Regulation Supplement; Multiyear
Contracting Authority Revisions
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 820 of
the National Defense Authorization Act for Fiscal Year 2003. Section
820 restricts the use of multiyear contracts for supplies to only those
for complete and usable end items, and restricts the use of advance
procurement to only those long-lead items necessary in order to meet a
planned delivery schedule for complete major end items.
DATES: Effective date: August 21, 2003.
Comment date: Comments on the interim rule should be submitted to
the address shown below on or before October 20, 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-D041 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
[[Page 50475]]
Council, Attn: Ms. Teresa Brooks, OUSD(AT&L)DPAP(DAR), IMD 3C132, 3062
Defense Pentagon, Washington, DC 20301-3062; facsimile (703) 602-0350.
Please cite DFARS Case 2002-D041.
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. Teresa Brooks, (703) 602-0326.
SUPPLEMENTARY INFORMATION:
A. Background
This interim rule amends DFARS Subpart 217.1 to implement Section
820 of the National Defense Authorization Act for Fiscal Year 2003
(Public Law 107-314). Section 820 amends the multiyear contracting
authority at 10 U.S.C. 2306b(i) to specify that DoD may obligate funds
for procurement of an end item under a multiyear contract only if the
item is a complete and usable end item; and that DoD may obligate funds
for advance procurement of property only for those long-lead items
necessary to meet a planned delivery schedule for complete major end
items that are programmed under the contract to be acquired with funds
appropriated for a subsequent fiscal year (including an economic order
quantity of such long-lead items when authorized by law).
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 the rule
primarily pertains to DoD planning and budget considerations with
regard to multiyear contracts. 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-D041.
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 820 of the National Defense
Authorization Act for Fiscal Year 2003 (Public Law 107-314), which
restricts the use of multiyear contracts for supplies to only those for
complete and usable end items, and restricts the use of advance
procurement to only those long-lead items necessary in order to meet a
planned delivery schedule for complete major end items. Section 820
became effective upon enactment on December 2, 2002. 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 217
Government procurement.
Michele P. Peterson,
Executive Editor, Defense Acquisition Regulations Council.
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Therefore, 48 CFR Part 217 is amended as follows:
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1. The authority citation for 48 CFR Part 217 continues to read as
follows:
Authority: 41 U.S.C. 421 and 48 CFR Chapter 1.
PART 217--MULTIYEAR CONTRACTING
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2. Section 217.172 is amended as follows:
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a. By revising paragraph (a);
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b. In paragraph (b) by adding, before the period, the parenthetical
``(10 U.S.C. 2306b(a)(6))''; and
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c. In paragraph (d)(1), in the parenthetical, by removing ``10 U.S.C.
2306b(l)(1)'' and adding in its place ``10 U.S.C.
2306b(l)(1)(B)(i)(II)''. The revised text reads as follows:
217.172 Multiyear contracts for supplies.
(a) This section applies to all multiyear contracts for supplies,
including weapon systems and other multiyear acquisitions specifically
authorized by law. For additional policies that apply only to multiyear
contracts for weapon systems and other multiyear acquisitions
specifically authorized by law, see 217.173.
* * * * *
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3. Section 217.173 is amended as follows:
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a. By revising the heading and paragraph (b) introductory text;
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b. By redesignating paragraph (b)(5) as paragraph (b)(7); and
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c. By adding new paragraphs (b)(5) and (b)(6). The revised and added
text reads as follows:
217.173 Multiyear contracts for weapon systems and other multiyear
acquisitions specifically authorized by law.
* * * * *
(b) The head of the agency must ensure that the following
conditions are satisfied before awarding a multiyear contract under the
authority described in paragraph (a) of this section or for other
multiyear acquisitions specifically authorized by law:
* * * * *
(5) The contract is for the procurement of a complete and usable
end item (10 U.S.C. 2306b(i)(4)(A)).
(6) Funds appropriated for any fiscal year for advance procurement
are obligated only for the procurement of those long-lead items that
are necessary in order to meet a planned delivery schedule for complete
major end items that are programmed under the contract to be acquired
with funds appropriated for a subsequent fiscal year (including an
economic order quantity of such long-lead items when authorized by law
(10 U.S.C. 2306b(i)(4)(B)).
* * * * *
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4. Section 217.174 is amended by revising paragraphs (a)(1) and (a)(2)
and by adding paragraph (c) to read as follows:
217.174 Multiyear contracts that employ economic order quantity
procurement.
(a) * * *
(1) A multiyear contract providing for economic order quantity
procurement in excess of $20 million in any one year (10 U.S.C.
2306b(l)(1)(B)(i)(I)); or
(2) A contract for advance procurement leading to a multiyear
contract that employs economic order quantity procurement in excess of
$20 million in any one year (10 U.S.C. 2306b(l)(1)(B)(ii); Section
8008(a) of Public Law 105-56 and similar sections in subsequent DoD
appropriations acts).
* * * * *
(c) See 217.173(b)(6) for additional provisions regarding
procurement of economic order quantities of long-lead items.
[FR Doc. 03-21309 Filed 8-20-03; 8:45 am]
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