[Federal Register Volume 60, Number 15 (Tuesday, January 24, 1995)]
[Rules and Regulations]
[Pages 4569-4570]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-1604]



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DEPARTMENT OF DEFENSE

48 CFR Part 235


Defense Federal Acquisition Regulation Supplement; Manufacturing 
Science and Technology Program

AGENCIES: Department of Defense (DoD).

ACTION: Interim rule with request for comments.

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SUMMARY: The Department of Defense is revising the Defense FAR 
Supplement to require competition and cost-sharing for acquisitions 
under the Manufacturing Science and Technology Program.

DATES: Effective date: January 17, 1995.

    Comment date: Comments on the interim rule should be submitted in 
writing at the address shown below on or before March 27, 1995, to be 
considered in the formulation of a final rule.

ADDRESSES: Interested parties should submit written comments to: 
Defense Acquisition Regulation Council, ATTN: Mr. Richard G. Layser, 
PDUSD(A&T)DP/DAR, IMD 3D139, 3062 Defense Pentagon, Washington, DC 
20301-3062. Telefax Number (703) 602-0350. Please cite DFARS Case 94-
D307 in all correspondence.

FOR FURTHER INFORMATION CONTACT:
Mr. Rick Layser, (703) 602-0131.

SUPPLEMENTARY INFORMATION: 

A. Background

    Section 256 of the National Defense Authorization Act for Fiscal 
Year 1995 (Public Law 103-337) requires that competitive procedures be 
used in awarding contracts under the Manufacturing arrangement be used 
unless an alternative is approved by the Secretary of Defense. This 
interim DFARS rule implements these requirements.

B. Determination To Issue an Interim Rule

    A determination has been made under the authority of the Secretary 
of Defense to issue this rule as an interim rule. Compelling reasons 
exist to promulgate this rule without prior opportunity for public 
comment because Section 256 of the National Defense Authorization Act 
for Fiscal Year 1995 (Public Law 103-337) became effective upon 
enactment of the Act, October 5, 1994. This interim rule is necessary 
to ensure that DoD contracting activities become aware of the statutory 
requirement for competition and cost-sharing arrangements when awarding 
contracts under the Manufacturing Science and Technology Program. 
However, comments received in response to the publication of this rule 
will be considered in formulating the final rule.

C. Regulatory Flexibility Act

    The interim rule is not expected 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 
only applies to acquisitions under the Manufacturing Science and 
Technology Program. In the past, small entities have not participated 
in any substantial numbers. This rule is not expected to change small 
entities participation. An initial regulatory flexibility analysis has 
therefore not been performed. Comments are invited from small 
businesses and other interested parties. Comments from small entities 
concerning the affected subparts will be considered in accordance with 
Section 610 of the Act. Such comments must be submitted separately and 
cite DFARS Case 94-D307 in correspondence.

D. Paperwork Reduction Act

    The Paperwork Reduction Act (Pub. L. 96-511) does not apply because 
this final rule does not impose any new recordkeeping, information 
collection requirements, or collection of information from offerors, 
contractors, or members of the public which require [[Page 4570]] the 
approval of OMB under 44 U.S.C. 3501, et seq.

List of Subjects in 48 CFR Part 235

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

    Therefore, 48 CFR Part 235 is amended as follows:
    1. The authority citation for part 235 is revised to read as 
follows:

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

PART 235--RESEARCH AND DEVELOPMENT CONTRACTING

    2. Section 235.006 is amended by adding paragraphs (a) and (b)(iv) 
to read as follows:


235.006  Contracting methods and contract type.

    (a) All contracts under the Manufacturing Science and Technology 
Program shall be awarded using competitive procedures (10 U.S.C. 2525). 
(See DoDD 5000.2, Defense Acquisition Management Policies and 
Procedures and DoDI 4200.15, Manufacturing Technology Program.)
    (b) * * *
    (iv) A cost-sharing arrangement must be used for contracts awarded 
in support of the Manufacturing Science and Technology Program, unless 
an alternative is approved by the Secretary of Defense (10 U.S.C. 
2525). Approval by the Secretary of Defense to use other than a cost-
sharing arrangement for the Manufacturing Science and Technology 
Program must be based on a determination that the technology--
    (A) Is not likely to have any immediate and direct commercial 
application; or
    (B) Is of sufficiently high risk to discourage cost sharing by non-
Federal Government sources. (See DoDI 4200.15, Manufacturing Technology 
Program, and FAR 16.303.)

[FR Doc. 95-1604 Filed 1-23-95; 8:45 am]
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