[Federal Register Volume 76, Number 75 (Tuesday, April 19, 2011)]
[Proposed Rules]
[Pages 21849-21850]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-8959]
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DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System
48 CFR Part 213
RIN 0750-AH07
Defense Federal Acquisition Regulation Supplement; Ships Bunkers
Easy Acquisition (SEA) Card[supreg] and Aircraft Ground Services (DFARS
Case 2009-D019)
AGENCY: Defense Acquisition Regulations System, Department of Defense
(DoD).
ACTION: Proposed rule.
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SUMMARY: DoD is proposing to amend the Defense Federal Acquisition
Regulation Supplement (DFARS) to allow the use of U.S. Government fuel
cards in lieu of a Purchase Order-Invoice-Voucher for fuel, oil, and
refueling-related items for purchases not exceeding the simplified
acquisition threshold.
DATES: Comments on the proposed rule should be submitted in writing to
the address shown below on or before June 20, 2011, to be considered in
the formation of the final rule.
ADDRESSES: You may submit comments, identified by DFARS Case 2009-D019,
using any of the following methods:
Regulations.gov: http://www.regulations.gov. Submit
comments via the Federal eRulemaking portal by inputting ``DFARS Case
2009-D019'' under the heading ``Enter keyword or ID'' and selecting
``Search.'' Select the link ``Submit a Comment'' that corresponds with
``DFARS Case 2009-D019.'' Follow the instructions provided at the
``Submit a Comment'' screen. Please include your name, company name (if
any), and ``DFARS Case 2009-D019'' on your attached document. Follow
the instructions for submitting comments.
E-mail: [email protected]. Include DFARS Case 2009-D019 in the subject
line of the message.
Fax: 703-602-0350.
Mail: Defense Acquisition Regulations System, Attn: Mr. Dustin
Pitsch, OUSD (AT&L) DPAP/DARS, Room 3B855, 3060 Defense Pentagon,
Washington, DC 20301-3060.
Comments received generally will be posted without change to http://www.regulations.gov, including any personal information provided. To
confirm receipt of your comment(s), please check http://www.regulations.gov approximately two to three days after submission to
verify posting (except allow 30 days for posting of comments submitted
by mail).
FOR FURTHER INFORMATION CONTACT: Mr. Dustin Pitsch, Telephone: 703-602-
1014.
SUPPLEMENTARY INFORMATION:
I. Background
The military services and the U.S. Coast Guard have small vessels
that must procure fuel away from their home stations. Due to their
smaller size and unique mission requirements, these vessels are unable
to use the Defense Energy Support Center (DESC) bunkers contracts at
major seaports. Previously, DFARS 213.306(a)(1)(A) authorized only the
use of the Aviation Into-plane Reimbursement (AIR) Card[supreg] up to
the simplified acquisition threshold specifically for aviation fuel and
oil. Refueling stops often include other ground refueling-related
services that exceed the micro-purchase threshold. Due to port
restrictions on vessel movements, bunkering merchants do not typically
provide support to smaller vessels. These smaller vessels frequent
``marina-type merchants.'' These small vessels fulfill valid mission
needs in direct support of national security. Unlike larger vessels
with more predictable movements, small vessels' needs are often
unpredictable and far-reaching geographically.
DoD proposes to add language at DFARS section 213.306(a)(1)(A) to
include purchases of marine fuel, oil, and refueling-related items
using the Ships Bunkers Easy Acquisition (SEA)
[[Page 21850]]
Card[supreg] in lieu of the SF 44, Purchase Order-Invoice-Voucher, up
to the simplified acquisition threshold. Additionally, this section is
revised to include additional ground refueling-related services when
using the AIR Card[supreg]. These changes for use of the AIR
Card[supreg] and SEA Card[supreg] will improve the refueling capability
of aircraft and smaller vessels at non-contract locations.
II. Executive Order 12866 and Executive Order 13563
Executive Orders 12866 and 13563 direct agencies to assess all
costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health and safety effects, distributive impacts, and equity). Executive
Order 13563 emphasizes the importance of quantifying both costs and
benefits, of reducing costs, of harmonizing rules, and of promoting
flexibility. 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 does not expect this proposed 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 does not have a significant effect beyond DoD's
internal operating procedures, substituting use of a fuel card for the
SF 44. However, an Initial Regulatory Flexibility Analysis has been
prepared and is summarized as follows.
This is a proposed rule to revise the Defense Federal Acquisition
Regulation Supplement (DFARS) at 213 to allow the use of U.S.
Government fuel cards in lieu of a Purchase Order-Invoice-Voucher for
fuel, oil, and refueling-related items for purchases not exceeding the
simplified acquisition threshold. The rule facilitates open market
purchases and will not have a significant cost or administrative impact
on contractors, subcontractors, or offerors.
The objective of this rule is to amend the DFARS at
213.306(a)(1)(A) to (1) permit the purchase of marine fuel using the
Ships' bunkers Easy Acquisition (SEA) Card[supreg] in lieu of the SF44,
Purchase Order-Invoice-Voucher, up to the simplified acquisition
threshold and (2) provide additional ground refueling-related services
when using the AIR Card[supreg].
Purchases of aviation fuel are on-the-spot, over the counter
transactions (``gas and go''), but generally exceed the micro-purchase
threshold due to the price of aviation fuel and oil fuel tank
capacities. Accordingly, the threshold for SF44/AIR Card[supreg]
purchases of fuel and oil was set at the simplified acquisition
threshold (SAT) (at DFARS 213.306(1)(1)(A)) under DFARS Case 2007-D017
(final rule effective date February 12, 2007).
The military services and the U.S. Coast Guard have small vessels
that fulfill valid mission needs in direct support of national
security. Unlike larger vessels, small vessels' movements and needs are
often unpredictable. These small vessels must procure fuel away from
their home stations, but because of their smaller size and unique
mission requirements are unable to use the Defense Logistics Agency
energy bunkers contracts available at major seaports. Due to port
restrictions, bunkering merchants do not typically provide support to
smaller vessels. Instead, these smaller vessels frequent non-contract
merchants or ``marina-type merchants'' that otherwise serve civilian
recreational watercraft and similar needs.
Under final DFARS Case 2006-D017, DoD established the threshold for
purchases of the AIR Card[supreg] as an electronic replacement for the
SF44. Presently, DFARS 213.306(a)(1)(A) authorizes only the use of the
Aviation Into-plane Reimbursement (AIR) Card[supreg] up to the
simplified acquisition threshold to procure aviation fuel and oil.
However, refueling stops often include other required ground refueling-
related services that exceed the micro-purchase threshold. The proposed
changes to DFARS subpart 213.306 will permit use of the fuel cards up
to the simplified acquisition threshold for other ground refueling-
related services and for smaller Navy, Coast Guard, and Army (to
include Corp of Engineers) vessels to procure marine fuel while away
from their home station.
Approximately 80% of ``marina-type merchants'' are considered small
businesses. Marina-type merchants accepting the SEA Card[supreg] will
pay a normal fee to the banking institution or processing center,
similar to VISA charges these merchants incur from other credit card
clients. In addition, merchants are expected to benefit from
accelerated payments, since they will be paid by the banking
institution in accordance with their merchant agreement. The rule
facilitates open market purchases, benefits merchants by making it much
easier for merchants to do business with the military and will not have
a significant cost or administrative impact on contractors,
subcontractors, or offerors.
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
does not have a significant effect beyond DoD's internal operating
procedures, substituting the use of a fuel card (AIR Card[supreg] and
SEA Card[supreg]) in lieu of the SF44, Purchase Order-Invoice-Voucher.
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-D019) in
correspondence.
IV. Paperwork Reduction Act
This rule does not contain any information collection requirements
that require the approval of the Office of Management and Budget under
the Paperwork Reduction Act (44 U.S.C. chapter 35).
List of Subjects in 48 CFR Part 213
Government procurement.
Mary Overstreet,
Editor, Defense Acquisition Regulations System.
Therefore, 48 CFR part 213 is proposed to be amended as follows:
PART 213--SIMPLIFIED ACQUISITION PROCEDURES
1. The authority citation for 48 CFR part 213 continues to read as
follows:
Authority: 41 U.S.C. 1303 and 48 CFR chapter 1.
2. In section 213.306, revise paragraph (a)(1)(A) to read as
follows:
213.306 SF44, Purchase Order-Invoice-Voucher.
(a)(1) * * *
(A) Fuel and oil. U.S. Government fuel cards may be used in lieu of
an SF44 for fuel, oil, and authorized refueling-related items (see PGI
213.306 for procedures on use of fuel cards);
* * * * *
[FR Doc. 2011-8959 Filed 4-18-11; 8:45 am]
BILLING CODE 5001-08-P