[Federal Register Volume 73, Number 78 (Tuesday, April 22, 2008)]
[Rules and Regulations]
[Pages 21783-21788]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-8451]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 2, 11, 18, 52 and 53

[FAC 2005-25; FAR Case 2006-033; Item III; Docket 2008-0001; Sequence 
7]
RIN 9000-AK93


Federal Acquisition Regulation; FAR Case 2006-033, Revisions to 
the Defense Priorities and Allocations System (DPAS)

AGENCIES: Department of Defense (DoD), General Services Administration 
(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Final rule.

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SUMMARY: The Civilian Agency Acquisition Council and the Defense 
Acquisition Regulations Council (Councils) have agreed on a final rule 
amending the Federal Acquisition Regulation (FAR) to reflect the 
President's delegation of the Defense Production Act's priorities and 
allocations authorities in Executive Order 12919, and to reflect the 
current provisions of the Defense Priorities and Allocations System 
(DPAS) regulations of the Department of Commerce outlined in 15 CFR 
Part 700.

DATES: Effective Date: April 22, 2008.

FOR FURTHER INFORMATION CONTACT: Ms. Cecelia L. Davis, Procurement 
Analyst, at (202) 219-0202 for clarification of content. For 
information pertaining to status or publication schedules, contact the 
FAR Secretariat at (202) 501-4755. Please cite FAC 2005-25, FAR case 
2006-033.

SUPPLEMENTARY INFORMATION:

A. Background

    Under Title I of the Defense Production Act (50 U.S.C. App. 2061, 
et seq.), the President is authorized to require preferential 
acceptance and performance of contracts or orders supporting certain 
approved national defense and energy programs, and to allocate 
materials, services, and facilities in such a manner to promote these 
approved programs. Additional priorities authority is found in section 
18 of the Selective Service Act of 1948 (50 U.S.C. App. 468), 10 U.S.C. 
2538, and 50 U.S.C. 82.
    The President delegated the priorities and allocations authorities 
of the Defense Production Act in E.O. 12919, as amended. The President 
has delegated the authority to approve a program for priorities and 
allocations support to the Secretaries of Defense, Energy, and Homeland 
Security. As part of that delegation, the President designated the 
Secretary of Commerce to administer the Defense Priorities and 
Allocations System (DPAS). The Defense Production Act authority has 
also been extended to support emergency preparedness activities under 
Title VI of the Robert T. Stafford Disaster Relief and Emergency 
Assistance Act, as amended (42 U.S.C. 5195, et seq.), and critical 
infrastructure protection and restoration.
    The FAR is revised as follows:
     Subpart 2.101 revised the definition of ``national 
defense'' to include a reference to the DPAS definition, which includes 
critical infrastructure protection and restoration.
     Subpart 11.6, Priorities and Allocations, is revised to 
reflect the President's delegation of the Defense Production Act's 
priorities and allocations authorities in Executive Order 12919, and 
the current provisions of the DPAS regulations of the Department of 
Commerce (see 15 CFR Part 700).
     Parts 18 and 52 are revised to include the emergency 
acquisition text.
     Subpart 53.3 is revised to add changes to Standard Form 26 
and 1447.
    The Councils are publishing this rule as a final rule without 
comment under

[[Page 21784]]

41 U.S.C. 418b, because it implements the President's delegable 
authorities outlined in the Defense Production Act in Executive Order 
12919, amended, which are not subject to negotiation. The FAR changes 
will not have significant effect beyond the internal operating 
procedures of the agency issuing the procurement policy, regulation, 
procedure, or form, or have a significant administrative impact on 
contractors or offerors.
    This is not a significant regulatory action and, therefore, was not 
subject to review under Section 6(b) of Executive Order 12866, 
Regulatory Planning and Review, dated September 30, 1993. This rule is 
not a major rule under 5 U.S.C. 804.

B. Regulatory Flexibility Act

    The Regulatory Flexibility Act does not apply to this rule. This 
final rule does not constitute a significant FAR revision within the 
meaning of FAR 1.501 and Pub. L. 98-577, and publication for public 
comments is not required. However, the Councils will consider comments 
from small entities concerning the affected FAR Parts 2, 11, 18, 52, 
and 53, in accordance with 5 U.S.C. 610. Interested parties must submit 
such comments separately and should cite 5 U.S.C. 601, et seq. (FAC 
2005-25, FAR case 2006-033), in correspondence.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the changes to 
the FAR do not impose information collection requirements that require 
the approval of the Office of Management and Budget under 44 U.S.C. 
3501, et seq.

List of Subjects in 48 CFR Parts 2, 11, 18, 52, and 53

    Government procurement.

    Dated: April 4, 2008.
Al Matera,
Director, Office of Acquisition Policy.

0
Therefore, DoD, GSA, and NASA amend 48 CFR parts 2, 11, 18, 52 and 53 
as set forth below:
0
1. The authority citation for 48 CFR parts 2, 11, 18, 52 and 53 
continues to read as follows:

    Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 42 
U.S.C. 2473(c).

PART 2--DEFINITIONS OF WORDS AND TERMS

0
2. Amend section 2.101 in paragraph (b)(2) by revising the definition 
``National defense'' to read as follows:


2.101  Definitions.

* * * * *
    (b) * * *
    (2) * * *
    National defense means any activity related to programs for 
military or atomic energy production or construction, military 
assistance to any foreign nation, stockpiling, or space, except that 
for use in Subpart 11.6, see the definition in 11.601.
* * * * *

PART 11--DESCRIBING AGENCY NEEDS

0
3. Revise sections 11.600 through 11.603 to read as follows:


11.600  Scope of subpart.

    This subpart implements the Defense Priorities and Allocations 
System (DPAS), a Department of Commerce regulation in support of 
approved national defense, emergency preparedness, and energy programs 
(see 15 CFR part 700).


11.601  Definitions.

    As used in this subpart--
    Approved program means a program determined as necessary or 
appropriate for priorities and allocations support to promote the 
national defense by the Secretary of Defense, the Secretary of Energy, 
or the Secretary of Homeland Security, under the authority of the 
Defense Production Act, the Stafford Act, and Executive Order 12919, or 
the Selective Service Act and related statutes and Executive Order 
12742.
    Delegate Agency means a Government agency authorized by delegation 
from the Department of Commerce to place priority ratings on contracts 
or orders needed to support approved programs.
    National defense means programs for military and energy production 
or construction, military assistance to any foreign nation, 
stockpiling, space, and any directly related activity. Such term 
includes emergency preparedness activities conducted pursuant to title 
VI of The Robert T. Stafford Disaster Relief and Emergency Assistance 
Act (42 U.S.C. 5195 et seq.) and critical infrastructure protection and 
restoration. (50 U.S.C. App. Sec.  2152).
    Rated order means a prime contract, a subcontract, or a purchase 
order in support of an approved program issued in accordance with the 
provisions of the DPAS regulation (15 CFR part 700).


11.602  General.

    (a) Under Title I of the Defense Production Act of 1950 (50 U.S.C. 
App. 2061, et seq.), the President is authorized to require 
preferential acceptance and performance of contracts and orders 
supporting certain approved national defense and energy programs and to 
allocate materials, services, and facilities in such a manner as to 
promote these approved programs.
    (b) The President delegated the priorities and allocations 
authorities of the Defense Production Act in Executive Order 12919. As 
part of that delegation, the President designated the Secretary of 
Commerce to administer the DPAS. For more information, check the DPAS 
website at: www.bis.doc.gov/dpas.


11.603  Procedures.

    (a) There are two levels of priority for rated orders established 
by the DPAS, identified by the rating symbols ``DO'' and ``DX''. All DO 
rated orders have equal priority with each other and take preference 
over unrated orders. All DX rated orders have equal priority with each 
other and take preference over DO rated and unrated orders (see 15 CFR 
700.11). The DPAS regulation contains provisions concerning the 
elements of a rated order (see 15 CFR 700.12); acceptance and rejection 
of rated orders (see 15 CFR 700.13); preferential scheduling (see 15 
CFR 700.14); extension of priority ratings (flowdown) (see 15 CFR 
700.15); changes or cancellations of priority ratings and rated orders 
(see 15 CFR 700.16); use of rated orders (see 15 CFR 700.17); and 
limitations on placing rated orders (see 15 CFR 700.18).
    (b) The Delegate Agencies have been given authority by the 
Department of Commerce to place rated orders in support of approved 
programs (see Schedule I of the DPAS). Other U.S. Government agencies, 
Canada, and foreign nations may apply for priority rating authority.
    (c) Rated orders shall be placed in accordance with the provisions 
of the DPAS.
    (d) Agency heads shall ensure compliance with the DPAS by 
contracting activities within their agencies.
    (e) Agency heads shall provide contracting activities with specific 
guidance on the issuance of rated orders in support of approved agency 
programs, including the general limitations and jurisdictional 
limitations on placing rated orders (see 15 CFR 700.18 and Executive 
Order 12919).
    (f) Contracting officers shall follow agency procedural 
instructions concerning the use of rated orders in support of approved 
agency programs.
    (g) Contracting officers, contractors, or subcontractors at any 
tier, that experience difficulty placing rated orders, obtaining timely 
delivery under

[[Page 21785]]

rated orders, locating a contractor or supplier to fill a rated order, 
ensuring that rated orders receive preferential treatment by 
contractors or suppliers, or require rating authority for items not 
automatically ratable under the DPAS, should promptly seek special 
priorities assistance in accordance with agency procedures (see 15 CFR 
700.50--700.55 and 700.80).
    (h) The Department of Commerce may take specific official actions 
(Ratings Authorizations, Directives, Letters of Understanding, 
Administrative Subpoenas, Demands for Information, and Inspection 
Authorizations) to implement or enforce the provisions of the DPAS (see 
15 CFR 700.60-700.71).
    (i) Contracting officers shall report promptly any violations of 
the DPAS in accordance with agency procedures to the Office of 
Strategic Industries and Economic Security, U.S. Department of 
Commerce, Room 3876, Washington, DC 20230, Ref: DPAS; telephone: (202) 
482-3634 or fax: (202) 482-5650.


11.604  [Amended]

0
4. Amend section 11.604 by removing from paragraph (a) the words 
``Defense Use'' and adding ``Defense, Emergency Preparedness, and 
Energy Program Use'' in its place.

PART 18--EMERGENCY ACQUISITIONS

0
5. Revise section 18.109 to read as follows:


18.109  Priorities and allocations.

    The Defense Priorities and Allocations System (DPAS) supports 
approved national defense, emergency preparedness, and energy programs 
and was established to facilitate rapid industrial mobilization in case 
of a national emergency. (See Subpart 11.6.)

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

0
6. Amend section 52.211-14 by revising the section heading, provision 
heading and date, and provision to read as follows:


52.211-14  Notice of Priority Rating for National Defense, Emergency 
Preparedness, and Energy Program Use.

* * * * *
    NOTICE OF PRIORITY RATING FOR NATIONAL DEFENSE, EMERGENCY 
PREPAREDNESS, AND ENERGY PROGRAM USE (APR 2008)
    Any contract awarded as a result of this solicitation will be [ 
] DX rated order; [ ] DO rated order certified for national defense, 
emergency preparedness, and energy program use under the Defense 
Priorities and Allocations System (DPAS) (15 CFR 700), and the 
Contractor will be required to follow all of the requirements of 
this regulation. [Contracting Officer check appropriate box.]
    (End of provision)


52.211-15  [Amended]

0
7. Amend section 52.211-15 by revising the date of the clause to read 
(APR 2008); and by removing from the clause the words ``defense use'' 
and adding ``defense, emergency preparedness, and energy program use'' 
in its place.

PART 53--FORMS


53.214  [Amended]

0
8. Amend section 53.214 by removing from paragraph (a) ``(4/85)'' and 
adding ``(APR 2008)'' in its place; and by removing from paragraph (d) 
``(Rev. 3/2005)'' and adding ``(APR 2008)'' in its place.


53.215-1  [Amended]

0
9. Amend section 53.215-1 by removing from paragraph (a) ``(Rev. 4/
85)'' and adding ``(APR 2008)'' in its place.
0
10. Revise section 53.301-26 to read as follows:


53.301-26  Award/Contract.

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[GRAPHIC] [TIFF OMITTED] TR22AP08.000

0
11. Revise section 53.301-1447 to read as follows:


53.301-1447  Solicitation/Contract.

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[GRAPHIC] [TIFF OMITTED] TR22AP08.001


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[GRAPHIC] [TIFF OMITTED] TR22AP08.002

[FR Doc. E8-8451 Filed 4-21-08; 8:45 am]
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