[Federal Register Volume 75, Number 36 (Wednesday, February 24, 2010)]
[Rules and Regulations]
[Pages 8272-8273]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-3713]
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DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System
48 CFR Part 207
[DFARS Case 2009-D014]
RIN 0750-AG61
Defense Federal Acquisition Regulation Supplement; Acquisition
Strategies To Ensure Competition Throughout the Life Cycle of Major
Defense Acquisition Programs
AGENCY: Defense Acquisition Regulations System, Department of Defense
(DoD).
ACTION: Interim rule with request for comments.
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SUMMARY: DoD is issuing an interim rule amending the Defense Federal
Acquisition Regulation Supplement (DFARS) to implement the Weapon
Systems Acquisition Reform Act of 2009, section 202, Acquisition
Strategies to Ensure Competition throughout the Lifecycle of Major
Defense Acquisition Programs.
DATES: Effective Date: February 24, 2010.
Comment Date: Comments on this interim rule should be submitted in
writing to the address shown below on or before April 26, 2010, to be
considered in the formation of the final rule.
ADDRESSES: You may submit comments, identified by DFARS Case 2009-D014,
using any of the following methods:
Federal eRulemaking Portal: http://www.regulations.gov. Follow the
instructions for submitting comments.
E-mail: [email protected]. Include DFARS Case 2009-D014 in the subject
line of the message.
Fax: 703-602-0350.
Mail: Defense Acquisition Regulations System, Attn: Ms. Meredith
Murphy, OUSD (AT&L) DPAP (DARS), 3060 Defense Pentagon, Room 3B855,
Washington, DC 20301-3060.
Hand Delivery/Courier: Defense Acquisition Regulations System,
Crystal Square 4, Suite 200A, 241 18th Street, Arlington, VA 22202-
3402.
Comments received generally will be posted without change to http://www.regulations.gov, including any personal information provided.
FOR FURTHER INFORMATION CONTACT: Ms. Meredith Murphy, 703-602-1302.
SUPPLEMENTARY INFORMATION:
A. Background
On May 22, 2009, The Weapon Systems Acquisition Reform Act (Pub. L.
111-23) was enacted to improve the organization and procedures of DoD
for the acquisition of major weapon systems. This law establishes new
oversight entities within DoD, as well as new and varied weapon system
acquisition and management reporting requirements.
Section 202 directs the Secretary of Defense (SECDEF) to ensure
that the acquisition strategy for each MDAP includes: (1) Measures to
ensure competition at both the prime contract and subcontract level of
the MDAP throughout its life cycle as a means to improve contractor
performance; and (2) adequate documentation of the rationale for
selection of the
[[Page 8273]]
subcontractor tier or tiers. It also outlines measures to ensure such
competition. Furthermore, it requires the SECDEF: (1) To take specified
actions to ensure fair and objective ``make-buy'' decisions by prime
contractors on MDAPs; and (2) whenever a decision regarding the source
of repair results in a plan to award a contract for performance of
maintenance and sustainment of a major weapon system, to ensure that
such contract is awarded on a competitive basis with full consideration
of all sources.
B. Regulatory Flexibility Act
DoD does not expect this interim 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 change is to internal Government operating procedures.
Therefore, an Initial Regulatory Flexibility Analysis has not been
performed. DoD invites comments from small business concerns and other
interested parties on the expected impact of this rule on small
entities.
DoD will also consider comments from small entities concerning the
existing regulations in subparts affected by this rule in accordance
with 5 U.S.C. 610. Interested parties must submit such comments
separately and should cite 5 U.S.C. 610 (DFARS Case 2009-D014) in
correspondence.
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 (DoD) that urgent and compelling reasons exist to promulgate
this interim rule without prior opportunity for public comments. This
action is necessary because section 202 of the Weapon Systems
Acquisition Reform Act of 2009 became effective upon enactment on May
22, 2009. However, pursuant to 41 U.S.C. 418b, DoD will consider public
comments received in response to this interim rule in the formation of
the final rule.
List of Subjects in 48 CFR Part 207
Government procurement.
Ynette R. Shelkin,
Editor, Defense Acquisition Regulations System.
0
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
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2. Section 207.106 is amended by adding a new paragraph (S-72) to read
as follows:
207.106 Additional requirements for major systems.
* * * * *
(S-72)(1) In accordance with section 202 of the Weapon Systems
Acquisition Reform Act of 2009 (Pub. L. 111-23), acquisition plans for
major defense acquisition programs as defined in 10 U.S.C. 2430, shall
include measures that--
(i) Ensure competition, or the option of competition, at both the
prime contract level and subcontract level (at such tier or tiers as
are appropriate) throughout the program life cycle as a means to
improve contractor performance; and
(ii) Document the rationale for the selection of the appropriate
subcontract tier or tiers under paragraph (S-72)(1)(i) of this section,
and the measures which will be employed to ensure competition, or the
option of competition.
(2) Measures to ensure competition, or the option of competition,
may include, but are not limited to, cost-effective measures intended
to achieve the following:
(i) Competitive prototyping.
(ii) Dual-sourcing.
(iii) Unbundling of contracts.
(iv) Funding of next-generation prototype systems or subsystems.
(v) Use of modular, open architectures to enable competition for
upgrades.
(vi) Use of build-to-print approaches to enable production through
multiple sources.
(vii) Acquisition of complete technical data packages.
(viii) Periodic competitions for subsystem upgrades.
(ix) Licensing of additional suppliers.
(x) Periodic system or program reviews to address long-term
competitive effects of program decisions.
(3) In order to ensure fair and objective ``make-or-buy'' decisions
by prime contractors, acquisition strategies and resultant
solicitations and contracts shall--
(i) Require prime contractors to give full and fair consideration
to qualified sources other than the prime contractor for the
development or construction of major subsystems and components of major
weapon systems;
(ii) Provide for Government surveillance of the process by which
prime contractors consider such sources and determine whether to
conduct such development or construction in-house or through a
subcontract; and
(iii) Provide for the assessment of the extent to which the prime
contractor has given full and fair consideration to qualified sources
in sourcing decisions as a part of past performance evaluations.
(4) Whenever a source-of-repair decision results in a plan to award
a contract for the performance of maintenance and sustainment services
on a major weapon system, to the maximum extent practicable and
consistent with statutory requirements, the acquisition plan shall
prescribe that award will be made on a competitive basis after giving
full consideration to all sources (including sources that partner or
subcontract with public or private sector repair activities).
[FR Doc. 2010-3713 Filed 2-23-10; 8:45 am]
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