[Federal Register Volume 75, Number 226 (Wednesday, November 24, 2010)]
[Rules and Regulations]
[Pages 71562-71563]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-29498]
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DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System
48 CFR Parts 217, 234, and 235
RIN 0750-AG76
Defense Federal Acquisition Regulation Supplement; Contract
Authority for Advanced Component Development or Prototype Units (DFARS
Case 2009-D034)
AGENCY: Defense Acquisition Regulations System, Department of Defense
(DoD).
ACTION: Confirmation of interim final rule.
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[[Page 71563]]
SUMMARY: DoD is adopting as final, with a minor change, an interim rule
amending the DFARS to implement section 819 of the National Defense
Authorization Act for Fiscal Year 2010. Section 819 places limitations
on certain types of line items and contract options that may be
included in contracts initially awarded pursuant to competitive
solicitations.
DATES: Effective Date: November 24, 2010.
FOR FURTHER INFORMATION CONTACT: Ms. Meredith Murphy, 703-602-1302.
SUPPLEMENTARY INFORMATION:
I. Background
DoD published an interim rule in the Federal Register at 75 FR
32638 on June 8, 2010, to implement section 819 of the National Defense
Authorization Act for Fiscal Year 2010. The interim rule added coverage
at DFARS 217.202 and 234.005-1. The intent of the statute is to prevent
a contract for new technology that is initially awarded as a result of
competition, from becoming a noncompetitive effort for the development
of advance components or the procurement of prototype units. The DFARS
implementation places specific limits, in accordance with the statute,
on the dollar value, period of performance, and time for exercise of
contract line items or contract options for such contracts.
The comment period closed on August 9, 2010. A single comment was
received in response to the interim rule. The respondent commented that
including the change in DFARS part 234 will result in users following
this requirement only when procuring major systems. This issue was
raised during the preparation of the interim rule. DoD confirmed that
part 234 is the optimal location, but has added to DFARS part 235,
Research and Development Contracting, a second cross-reference to the
part 234 coverage.
II. Executive Order 12866
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.
III. 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 changes are to internal Government operating procedures.
Specifically, the final rule implements section 819 of the National
Defense Authorization Act for Fiscal Year 2010. Section 819 places
limitations on certain types of line items and contract options that
may be included in contracts initially awarded pursuant to competitive
solicitations. When the prohibition applies, it limits the dollar
value, period of performance, and time for exercise of such contract
line items or contract options. The intent of the final rule is to
prevent a contract for new technology that is initially awarded as a
result of competition from becoming a noncompetitive effort for the
development of advanced components or the procurement of prototype
units.
IV. Paperwork Reduction Act
The Paperwork Reduction Act does not apply because the final 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.
List of Subjects in 48 CFR Parts 217, 234, and 235
Government procurement.
Clare M. Zebrowski,
Editor, Defense Acquisition Regulations System.
Interim Rule Adopted as Final With Changes
0
Accordingly, the interim rule amending 48 CFR parts 217 and 234, which
was published in the Federal Register at 75 FR 32638 on June 8, 2010,
is adopted as final with the following changes:
0
1. The authority citation for 48 CFR parts 217, 234, and 235 continues
to read as follows:
Authority: 41 U.S.C. 421 and 48 CFR chapter 1.
PART 235--RESEARCH AND DEVELOPMENT CONTRACTING
0
2. Section 235.006-71 is added to subpart 235.006 to read as follows:
235.006-71 Competition.
See 234.005-1 for limitations on the use of contract line items or
contract options for the provision of advanced component development or
prototypes of technology developed under a competitively awarded
proposal.
[FR Doc. 2010-29498 Filed 11-23-10; 8:45 am]
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