[Federal Register Volume 71, Number 243 (Tuesday, December 19, 2006)]
[Rules and Regulations]
[Pages 75891-75893]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-21513]
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System
48 CFR Parts 201, 205, 207, 211, 217, 219, 223, 225, 228, 232, 237,
and 252
RIN 0750-AF16
Defense Federal Acquisition Regulation Supplement; Inflation
Adjustment of Acquisition-Related Thresholds (DFARS Case 2004-D022)
AGENCY: Defense Acquisition Regulations System, Department of Defense
(DoD).
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: DoD has issued a final rule amending the Defense Federal
Acquisition Regulation Supplement (DFARS) to adjust acquisition-related
thresholds for inflation. Section 807 of the National Defense
Authorization Act for Fiscal Year 2005 requires periodic adjustment of
statutory acquisition-related dollar thresholds, except those
established by the Davis-Bacon Act, the Service Contract Act, or trade
agreements. This rule also amends other acquisition-related thresholds
that are BASED on policy rather than statute.
DATES: Effective Date: December 19, 2006.
FOR FURTHER INFORMATION CONTACT: Ms. Amy Williams, Defense Acquisition
Regulations System, OUSD (AT&L) DPAP (DARS), IMD 3C132, 3062 Defense
Pentagon, Washington, DC 20301-3062. Telephone (703) 602-0328;
facsimile (703) 602-0350. Please cite DFARS Case 2004-D022.
SUPPLEMENTARY INFORMATION:
A. Background
This final rule implements Section 807 of the National Defense
Authorization Act for Fiscal Year 2005 (Pub. L. 108-375). Section 807
provides for adjustment of statutory acquisition-related dollar
thresholds every 5 years, except for those established by the Davis-
Bacon Act, the Service Contract Act, or trade agreements. This case
presented an opportunity to review all acquisition-related dollar
thresholds, including those that are non-statutory. DoD published a
proposed rule at 71 FR 3446 on January 23, 2006. DoD received one
comment from a public-private partnership in response to the proposed
rule. That comment related to the proposed increase in the micro-
purchase spending limit for the General Services Administration
SmartPay Purchase Card Program. The comment did not specifically relate
to this DFARS case and, therefore, has been forwarded to the General
Services Administration for consideration.
A matrix showing the thresholds reviewed in preparation of this
final rule is available at http://www.acq.osd.mil/dpap/dars/dfars/changenotice/index.htm, within the change notice summary containing the
same date as this final rule. The statute requires adjustment of
acquisition-related thresholds for inflation using the Consumer Price
Index for all-urban consumers. Acquisition-related thresholds in
statutes that were in effect on October 1, 2000, are subject to 5 years
of inflation. The inflation adjustment factors in the proposed rule
were calculated on the basis of December 2004 data. For the final rule,
data through October 2005 was used. This resulted in a slight increase
in the calculated inflation adjustment factors. For the 5-year period
from October 2000 through October 2005, the inflation adjustment factor
increased from 13 percent to 14.5 percent. However, due to rounding,
most thresholds shown in the proposed rule did not change. The
exceptions are--
DFARS 217.170 and 217.171 (Multiyear Contracting)--
Increased from $565.5 million to $572.5 million; and
DFARS 237.170-2 (Service Contracting)--Increased from
$77.5 million to $78.5 million.
The threshold at DFARS 207.170-3 (Consolidation of Contract
Requirements) is the only threshold in the final rule that was not
addressed in the proposed rule, because the calculated threshold now
rounds up to $5.5 million, from $5 million.
The threshold at DFARS 216.203-4, for use of the economic price
[[Page 75892]]
adjustment clause at FAR 52.216-4, was increased from $50,000 to
$55,000 in the proposed rule. This threshold change is no longer
applicable as a result of the final rule published at 71 FR 39006 on
July 11, 2006, which specified the simplified acquisition threshold as
the general threshold for DoD use of the FAR economic price adjustment
clauses.
The threshold at DFARS 236.601, for congressional notification of
certain architect-engineer or construction design contracts, was
increased from $500,000 to $550,000 in the proposed rule. This
threshold change is no longer applicable as a result of the interim
rule published at 71 FR 58540 on October 4, 2006, which increased the
threshold to $1 million to implement a statutory change.
The threshold in the clause at DFARS 252.232-7009, Mandatory
Payment by Governmentwide Commercial Purchase Card, was increased from
$2,500 to $3,000 in the proposed rule. The final rule revises this
threshold to the micro-purchase threshold, for consistency with the
corresponding clause prescription at DFARS 232.1110.
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 certifies that this final rule will not 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 adjustment of acquisition-related dollar thresholds is
intended to keep pace with inflation and thus maintain the status quo.
C. Paperwork Reduction Act
This rule does not impose any new information collection
requirements that require the approval of the Office of Management and
Budget (OMB) under 44 U.S.C. 3501, et seq. The information collection
requirements of the provision and clauses at 252.225-7003, 252.225-
7004, and 252.225-7006 are approved for use through May 31, 2007, under
OMB Control Number 0704-0229.
List of Subjects in 48 CFR Parts 201, 205, 207, 211, 217, 219, 223,
225, 228, 232, 237, and 252
Government procurement.
Michele P. Peterson,
Editor, Defense Acquisition Regulations System.
0
Therefore, 48 CFR Parts 201, 205, 207, 211, 217, 219, 223, 225, 228,
232, 237, and 252 are amended as follows:
0
1. The authority citation for 48 CFR Parts 201, 205, 207, 211, 217,
219, 223, 225, 228, 232, 237, and 252 continues to read as follows:
Authority: 41 U.S.C. 421 and 48 CFR Chapter 1.
PART 201--FEDERAL ACQUISITION REGULATIONS SYSTEM
0
2. Section 201.109 is added to read as follows:
201.109 Statutory acquisition-related dollar thresholds-adjustment for
inflation.
(d) A matrix showing the most recent escalation adjustments of
statutory acquisition-related dollar thresholds is available at PGI
201.109.
PART 205--PUBLICIZING CONTRACT ACTIONS
205.303 [Amended]
0
3. Section 205.303 is amended by removing ``$5 million'' and adding in
its place ``$5.5 million'' as follows:
0
a. In paragraph (a)(i) introductory text, in the first and second
sentences;
0
b. In paragraph (a)(i)(A), in the second sentence; and
0
c. In paragraph (a)(i)(B), in the first and second sentences.
PART 207--ACQUISITION PLANNING
207.170-3 [Amended]
0
4. Section 207.170-3 is amended in paragraph (a) introductory text by
removing ``$5,000,000'' and adding in its place ``$5.5 million''.
PART 211--DESCRIBING AGENCY NEEDS
211.503 [Amended]
0
5. Section 211.503 is amended in paragraph (b), in the first and second
sentences, by removing ``$500,000'' and adding in its place
``$550,000''.
PART 217--SPECIAL CONTRACTING METHODS
0
6. Section 217.170 is amended by revising paragraph (d)(1)(i) to read
as follows:
217.170 General.
* * * * *
(d)(1) * * *
(i) Exceed $500 million for supplies (see 217.172(c) and
217.172(e)(4)) or $572.5 million for services (see 217.171(a)(6));
* * * * *
217.171 [Amended]
0
7. Section 217.171 is amended in paragraph (a)(6) by removing ``$500
million'' and adding in its place ``$572.5 million''.
PART 219--SMALL BUSINESS PROGRAMS
219.502-2 [Amended]
0
8. Section 219.502-2 is amended in paragraph (a)(i) by removing ``$2
million'' and adding in its place ``$2.5 million''.
PART 223--ENVIRONMENT, ENERGY AND WATER EFFICIENCY, RENEWABLE
ENERGY TECHNOLOGIES, OCCUPATIONAL SAFETY, AND DRUG-FREE WORKPLACE
0
9. Section 223.803 is revised to read as follows:
223.803 Policy.
No DoD contract may include a specification or standard that
requires the use of a class I ozone-depleting substance or that can be
met only through the use of such a substance unless the inclusion of
the specification or standard is specifically authorized at a level no
lower than a general or flag officer or a member of the Senior
Executive Service of the requiring activity in accordance with Section
326, Public Law 102-484 (10 U.S.C. 2301 (repealed) note). This
restriction is in addition to any imposed by the Clean Air Act and
applies after June 1, 1993, to all DoD contracts, regardless of place
of performance.
PART 225--FOREIGN ACQUISITION
225.7204 [Amended]
0
10. Section 225.7204 is amended as follows:
0
a. In paragraphs (a) and (b) by removing ``$10 million'' and adding in
its place ``$11.5 million''; and
0
b. In paragraph (c) by removing ``$500,000'' and adding in its place
``$550,000''.
PART 228--BONDS AND INSURANCE
228.102-1 [Amended]
0
11. Section 228.102-1 is amended in the second sentence of the
introductory text and in paragraph (1) by removing ``$25,000'' and
adding in its place ``$30,000''.
PART 232--CONTRACT FINANCING
232.404 [Amended]
0
12. Section 232.404 is amended in paragraph (a)(9) by removing
``$2,500'' and adding in its place ``$3,000''.
[[Page 75893]]
232.502-1 [Amended]
0
13. Section 232.502-1 is amended in paragraph (b)(1) by removing
``$50,000'' and adding in its place ``$55,000''.
PART 237--SERVICE CONTRACTING
237.170-2 [Amended]
0
14. Section 237.170-2 is amended in paragraphs (a)(1) and (2) by
removing ``$50,000,000'' and adding in its place ``$78.5 million''.
PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
0
15. Section 252.209-7004 is amended by revising the clause date and
paragraph (a) to read as follows:
252.209-7004 Subcontracting with Firms That are Owned or Controlled by
the Government of a Terrorist Country.
* * * * *
Subcontracting With Firms That are Owned or Controlled by the
Government of a Terrorist Country (Dec 2006)
(a) Unless the Government determines that there is a compelling
reason to do so, the Contractor shall not enter into any subcontract in
excess of $30,000 with a firm, or a subsidiary of a firm, that is
identified in the Excluded Parties List System as being ineligible for
the award of Defense contracts or subcontracts because it is owned or
controlled by the government of a terrorist country.
* * * * *
252.225-7003 [Amended]
0
16. Section 252.225-7003 is amended as follows:
0
a. By revising the clause date to read ``(DEC 2006)'';
0
b. In paragraph (b)(1) by removing ``$10 million'' and adding in its
place ``$11.5 million''; and
0
c. In paragraph (b)(2)(i) by removing ``$500,000'' and adding in its
place ``$550,000''.
252.225-7004 [Amended]
0
17. Section 252.225-7004 is amended as follows:
0
a. By revising the clause date to read ``(DEC 2006)''; and
0
b. In paragraph (b)(1) by removing ``$500,000'' and adding in its place
``$550,000''.
252.225-7006 [Amended]
0
18. Section 252.225-7006 is amended as follows:
0
a. By revising the clause date to read ``(DEC 2006)''; and
0
b. In paragraph (f)(1) by removing ``$500,000'' and adding in its place
``$550,000''.
252.232-7009 [Amended]
0
19. Section 252.232-7009 is amended as follows:
0
a. By revising the clause date to read ``(DEC 2006)''; and
0
b. By removing ``$2,500'' and adding in its place ``the micro-purchase
threshold in Part 2 of the Federal Acquisition Regulation,''.
252.249-7002 [Amended]
0
20. Section 252.249-7002 is amended as follows:
0
a. By revising the clause date to read ``(DEC 2006)''; and
0
b. In paragraph (d)(1) by removing ``$500,000'' and adding in its place
``$550,000''.
[FR Doc. E6-21513 Filed 12-18-06; 8:45 am]
BILLING CODE 5001-08-P