[Federal Register Volume 60, Number 8 (Thursday, January 12, 1995)]
[Rules and Regulations]
[Pages 2888-2889]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-763]



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DEPARTMENT OF DEFENSE

48 CFR Parts 206 and 237


Defense Federal Acquisition Regulation Supplement; Personal 
Service Contracts

agency: Department of Defense (DoD).

action: Interim rule with request for public comments.

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summary: The Director of Defense Procurement is issuing an interim rule 
amending the Defense Federal Acquisition Regulation Supplement (DFARS) 
to establish procedures for contracting for personal services with 
individuals for health care services.

dates: Effective Date: January 5, 1995.
    Comment Date: Comments on the interim rule should be submitted to 
the address shown below on or before March 13, 1995 to be considered in 
formulation of a final rule.

addresses: Interested parties should submit written comments to: 
Defense Acquisition Regulations Council, ATTN: Ms. Linda S. Holcombe, 
PDUSD (A&T)DP(DAR), IMD 3D139, 3062 Defense Pentagon, Washington, DC 
20301-3062. Telefax number (703) 602-0350. Please cite DFARS Case 94-
D302 in all correspondence related to this issue.

for further information contact: Ms. Linda S. Holcombe, (703) 602-0131.

SUPPLEMENTARY INFORMATION:

A. Background

    Section 712 of the National Defense Authorization Act for Fiscal 
Year 1994 (Public Law 103-160) requires the Secretary of Defense to 
establish procedures for entering into personal service contracts under 
10 U.S.C. 1091 to carry out health care responsibilities in medical/
dental treatment facilities. Section 704 of the National Defense 
Authorization Act for Fiscal Year 1995 (Public Law 103-337) provides 
authority for the Secretary of Defense to enter into personal service 
contracts under 10 U.S.C. 1091 to provide the services of clinical 
counselors, family advocacy program staff, and victim's services 
representatives.

B. Regulatory Flexibility Act

    The interim rule may 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 it may, to the 
extent such authority is exercised by the Secretary of Defense, reduce 
competitive participation by any entities, large or small, which 
perform, or are interested in performing, personal service contracts 
under 10 U.S.C. 1091 to carry out health care responsibilities. Using 
these procedures for selecting sources for health care services, 
business entities other than individuals are not solicited and cannot 
receive contract awards. A copy of the Initial Regulatory Flexibility 
Analysis has been submitted to the Chief Counsel for Advocacy of the 
Small Business Administration. A copy of the Initial Regulatory 
Flexibility Analysis may be obtained from Ms. Linda S. Holcombe, 
PDUSD(A&T)DP(DAR), IMD 3D139, 3062 Defense Pentagon, Washington, DC 
20301-3062. The interim rule applies to both large and small 
businesses. Comments are invited from small businesses and other 
interested parties. Comments from small entities will be considered in 
accordance with 5 U.S.C. 610. Such comments must be submitted 
separately and cite DFARS Case 94-D302 in all correspondence.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the interim rule 
does not impose reporting or recordkeeping requirements which require 
the approval of OMB under 44 U.S.C. 3501 et seq.

List of Subjects in 48 CFR Parts 206 and 237

    Government procurement.
Claudia L. Naugle,
Deputy Director, Defense Acquisition Regulations Council.

    Therefore, 48 CFR Parts 206 and 237 are amended to read as follows:
    1. The authority citation for 48 CFR Parts 206 and 237 continues to 
read as follows:

    Authority: 41 U.S.C. 421 and 48 CFR Chapter 1.

PART 206--COMPETITION REQUIREMENTS

    2. A new subpart 206.1 is added to read as follows:

Subpart 206.1--Full and Open Competition

Sec.
206.102  Use of competitive procedures.

Subpart 206.1--Full and Open Competition


206.102  Use of competitive procedures.

    (d) Other competitive procedures.
    The procedures in 237.104(b)(ii) are competitive procedures.

PART 237--SERVICE CONTRACTING

    3. Section 237.104 is amended by revising paragraph (b)(ii) to read 
as follows:


237.104  Personal services contracts.

    (b)(i) * * *
    (ii) Personal service contracts for health care are authorized by 
10 U.S.C. 1091.
    (A) This authority may be used to acquire--
    (1) Direct health care services provided in medical treatment 
facilities; and
    (2) Services of clinical counselors, family advocacy program staff, 
and victim's services representatives to members of the Armed Forces 
and covered beneficiaries who require such services, provided in 
medical treatment facilities or elsewhere. Persons with whom a personal 
services contract may be entered into under this authority include 
clinical social workers, psychologists, psychiatrists, and other 
comparable professionals who have advanced degrees in counseling or 
related academic disciplines and who meet all requirements for State 
licensure and board certification requirements, if any, within their 
fields of specialization.
    (B) Sources for personal service contracts with individuals under 
the authority of 10 U.S.C. 1091 shall be [[Page 2889]] selected through 
the procedures in this section. These procedures do not apply to 
contracts awarded to business entities other than individuals. 
Selections made using the procedures in this section are competitive 
(see 206.102(d)).
    (C) Approval requirements for--
    (1) Direct health care personal service contracts (see 
237.104(b)(ii)(A)(1)) and a pay cap are in DoDI 6025.5, Personal 
Services Contracting Authority for Direct Health Care Providers. 
Requests to enter into a personal service contract for direct health 
care services must be approved by the commander of the medical/dental 
treatment facility where the services will be performed.
    (2) Services of clinical counselors, family advocacy program staff, 
and victim's services representatives (see 237.104(b)(ii)(A)(2)), shall 
be in accordance with agency procedures.
    (D) The contracting officer must ensure that the requiring activity 
provides a copy of the approval with the purchase request.
    (E) The contracting officer must provide adequate advance notice of 
contracting opportunities to individuals residing in the area of the 
facility. The notice must include the qualification criteria against 
which individuals responding will be evaluated. The contracting officer 
shall solicit applicants through at least one local publication which 
serves the area of the facility. Acquisitions under this section for 
personal service contracts are exempt from the posting and synopsis 
requirements of FAR Part 5.
    (F) The contracting officer shall provide the qualifications of 
individuals responding to the notice to the commander of the facility 
for evaluation and ranking in accordance with agency procedures. 
Individuals must be considered solely on the basis of the professional 
qualifications established for the particular personal services being 
acquired and the Government's estimate of reasonable rates, fees, or 
other costs. The commander of the facility shall provide the 
contracting officer with rationale for the ranking of individuals, 
consistent with the required qualifications.
    (G) Upon receipt from the facility of the ranked listing of 
applicants, the contracting officer shall either--
    (1) Enter into negotiations with the highest ranked applicant. If a 
mutually satisfactory contract cannot be negotiated, the contracting 
officer shall terminate negotiations with the highest ranked applicant 
and enter into negotiations with the next highest.
    (2) Enter into negotiations with all qualified applicants and 
select on the basis of qualifications and rates, fees, or other costs.
    (H) In the event only one individual responds to an advertised 
requirement, the contracting officer is authorized to negotiate the 
contract award. In this case, the individual must still meet the 
minimum qualifications of the requirement and the contracting officer 
must be able to make a determination that the price is fair and 
reasonable.
    (I) If a fair and reasonable price cannot be obtained from a 
qualified individual, the requirement should be canceled and acquired 
using procedures other than those set forth in this section.
* * * * *
[FR Doc. 95-763 Filed 1-11-95; 8:45 am]
BILLING CODE 5000-04-M