[Federal Register Volume 60, Number 151 (Monday, August 7, 1995)]
[Rules and Regulations]
[Pages 40106-40107]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-19317]



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DEPARTMENT OF DEFENSE
48 CFR Parts 206, 207, 215, 219, and 252

[DFARS Case 95-D701]


Defense Federal Acquisition Regulation Supplement; Contract Award 
(Interim)

AGENCY: Department of Defense (DoD).

ACTION: Interim rule with request for comment.

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SUMMARY: This interim rule is issued pursuant to the Federal 
Acquisition Streamlining Act of 1994 (``the Act''). The Director of 
Defense Procurement is amending the Defense Federal Acquisition 
Regulation Supplement concerning acquisition planning, contracting by 
negotiation, and competition requirements as a result of changes to 
Title 10 U.S.C. by Sections 1506, 3065, 3066, and 7101(b) of the Act.

DATES: Effective Date: August 7, 1995.
    Comment Date: Comments on the interim rule should be submitted in 
writing to the address shown below on or before October 6, 1995 to be 
considered in the formulation of a final rule.

ADDRESSES: Interested parties should submit written comments to: 
Defense Acquisition Regulations Council, PDUSD(A&T)DP(DAR),IMD 
3D139,3062 Defense Pentagon, Washington, DC 20301-3062. Telefax number 
(703) 602-0350. Please cite DFARS Case 95-D701 in all correspondence 
related to this issue.

FOR FURTHER INFORMATION CONTACT:
Ms. Mellissa D. Rider, DFARS FASTA Implementation Secretariat, at (703) 
614-1634. Please Cite DFARS case 95-D701.

SUPPLEMENTARY INFORMATION: 

A. Background

    The Federal Acquisition Streamlining Act of 1994, Pub. L. 103-355 
(``the Act''), dated October 13, 1994, provides authorities that 
streamline the acquisition process and minimize burdensome Government-
unique requirements. Major changes that can be expected in the 
acquisition process as a result of the Act's implementation include 
changes in the areas of Commercial Item Acquisition, Simplified 
Acquisition Procedures, the Truth in Negotiations Act, and introduction 
of the Federal Acquisition Computer Network (FACNET).
    DFARS Case 95-D701 addresses six defense-unique sections of the Act 
that were given immediate effectivity by Section 10001(c) of the Act: 
Section 1506, Repeal of Requirement Relating to Production Special 
Tooling and Production Special Test Equipment; Section 1507, 
Regulations for Bids; Section 3063, DoD Acquisition of Intellectual 
Property Rights; Section 3065, Codification and Revision of Limitation 
on Lease of Vessels, Aircraft, and Vehicles; Section 3066, Soft Drink 
Supplies; and Section 7101(b), Repeal of Certain Requirements. 
Following is a discussion of the changes associated with each section:
    Section 1506, Repeal of Requirement Relating to Production Special 
Tooling and Production Special Test Equipment--This section repeals 10 
U.S.C. 2329, which contained requirements relating to production 
special tooling and production special test equipment. The requirements 
of 10 U.S.C. 2329 had been implemented at DFARS 215.871 and was the 
sole reason that section was created. The interim rule removes and 
reserves DFARS 215.871.
    Section 1507, Regulations for Bids--This section amends 10 U.S.C. 
2381(a) to vest the Secretary of Defense with the authority to 
prescribe regulations covering the preparation, submission, and opening 
of bids. Existing FAR coverage at Subpart 1.3 already vests the 
Secretary of Defense with this authority, especially when one considers 
that 5 U.S.C. allows agency heads, such as the Secretary of Defense, to 
structure the internal administrative procedures of his/her agency to 
support, among other things, the procurement process. Therefore, DFARS 
was not amended to implement this Section of the Act.
    Section 3063, DoD Acquisition of Intellectual Property Rights--This 
section of the Act rewords the listing of the types of copyrights, 
designs, patents, processes, etc., in which DoD may obtain rights in 
data, to include technical data and computer software and releases of 
past infringements or unauthorized use of technical data and computer 
software. Since the existing guidance at DFARS Part 227 already covers 
these types of situations, no change has been made to DFARS.
    Section 3065, Codification and Revision of Limitation on Lease of 
Vessels, Aircraft, and Vehicles--This section of the Act adds a new 
section at 10 U.S.C. 2401a, which requires DoD to consider all costs 
and make a written determination prior to entering into any contract 
with a term of 18 months or more, or extending or renewing any contract 
for a term of 18 months or more, for any vessel, aircraft, or vehicle, 
through a lease, charter, or similar agreement. A new section is added 
at DFARS 207.470 to implement this section of the Act.
    Section 3066, Soft Drink Supplies--This section of the Act amends 
10 U.S.C. 2424, which authorizes noncompetitive procurement of supplies 
and services from exchange stores outside the United States, to make 
the limitations of 10 U.S.C. 2424(b) (1) and (2) inapplicable to the 
purchase of U.S. manufactured soft drinks. Those limitations (i.e., 
contract dollar value not to exceed $50,000 and the requirement that 
supplies be on hand at the exchange store on the contract award date) 
created purchasing problems for the Defense Personnel Support Center 
(DPSC), the DLA activity currently responsible for commissary supplies 
of soft drinks. This interim rule amends the DFARS at 206.302-5(b), to 
specify that U.S. manufactured soft drinks are not subject to the 
limitation of 10 U.S.C. 2424(b) (1) and (2).
    Section 7101(b), Repeal of Certain Requirements--This section 
repeals Section 804 of Public Law 102-484, Certificate of Competency 
Requirements. This statute was implemented at DFARS 219.602-1(a), 
219.602-70, and 252.219-7009. As the statutory requirement has been 
deleted, the interim rule deletes these DFARS sections.

B. 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 
amendment at DFARS 206.302-5 pertains only to purchases made outside 
the United States for use by armed forces outside the United States; 
the amendment at DFARS Supbart 207.4 pertains to internal Government 
considerations regarding 

[[Page 40107]]
leasing; the section deleted at DFARS 215.871 applied only to 
production contracts where special tooling/special test equipment costs 
exceeded $1,000,000; and the language deleted at DFARS 219.602 and 
252.219-7009 pertained only to administrative procedures for processing 
a request for a certificate of competency. An initial regulatory 
flexibility analysis has therefore not been performed. Comments from 
small entities concerning the affected DFARS subparts will be 
considered in accordance with Section 610 of the Act. Such comments 
must be submitted separately and cite DFARS Case 95-D701 in 
correspondence.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the interim rule 
will not impose any additional reporting or record keeping requirements 
that require Office of Management and Budget approval 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 that urgent and compelling reasons exist to publish this 
interim rule prior to affording the public an opportunity to comment. 
This action is necessary to implement Sections 1506, 3065, 3066, and 
7101(b) of the Federal Acquisition Streamlining Act of 1994 (Pub. L. 
103-355), which became effective on October 13, 1995. Comments received 
in response to the publication of this interim rule will be considered 
in formulating the final rule.

List of Subjects in 48 CFR Parts 206, 207, 215, 219, and 252

    Government procurement.
Michele P. Peterson,
Executive Editor, Defense Acquisition Regulations Council.

    Therefore, 48 CFR Parts 206, 207, 215, 219, and 252 are amended as 
follows:

PART 206--COMPETITION REQUIREMENTS

    1. The authority citation for 48 CFR Parts 206, 207, 215, 219, and 
252 is revised to read as follows:

    Authority: 41 U.S.C. 421 and 48 CFR Chapter 1.
    2. Section 206.302-5 is amended by revising paragraph (b)(i) to 
read as follows:


206.302-5  Authorized or required by statute.

    (b) * * *
    (i) Acquire supplies and services from military exchange stores 
outside the United States for use by the armed forces outside the 
United States in accordance with 10 U.S.C. 2424(a) and subject to the 
limitations of 10 U.S.C. 2424(b). The limitations of 10 U.S.C. 2424(b) 
(1) and (2) do not apply to the purchase of soft drinks that are 
manufactured in the United States. For the purposes of 10 U.S.C. 2424, 
soft drinks manufactured in the United States are brand name carbonated 
sodas, manufactured in the United States, as evidenced by product 
markings.
* * * * *

PART 207--ACQUISITION PLANNING

    3. Section 207.470 is added to read as follows:


207.470  Statutory requirement.

    As required by 10 U.S.C. 2401a, the contracting officer shall not 
enter into any contract for any vessel, aircraft, or vehicle, through a 
lease, charter, or similar agreement with a term of 18 months or more, 
or extend or renew any such contract for a term of 18 months or more, 
unless the head of the contracting activity has--
    (a) Considered all costs of such a contract (including estimated 
termination liability); and
    (b) Determined in writing that the contract is in the best interest 
of the Government.

PART 215--CONTRACTING BY NEGOTIATION


215.871  [Removed and reserved]

    4. Section 215.871 is removed and reserved.

PART 219--SMALL BUSINESS AND SMALL DISADVANTAGED BUSINESS CONCERNS


219.602-1  [Amended]

    5. Section 219.602-1 is amended by removing paragraph (a).


219.602-70  [Amended]

    6. Section 219.602-70 is removed.

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES


252.219-7009  [Removed]

    7. Section 252.219-7009 is removed.

[FR Doc. 95-19317 Filed 8-4-95; 8:45 am]
BILLING CODE 5000-04-M