[Federal Register Volume 61, Number 120 (Thursday, June 20, 1996)]
[Rules and Regulations]
[Pages 31617-31618]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-14518]



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[[Page 31618]]


DEPARTMENT OF DEFENSE
48 CFR Part 6

[FAC 90-39; FAR Case 96-302; Item III]
RIN 9000-AH00


Federal Acquisition Regulation; Justification and Approval 
Thresholds

AGENCIES: Department of Defense (DOD), General Services Administration 
(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Final rule.

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SUMMARY: The Civilian Agency Acquisition Council and the Defense 
Acquisition Regulations Council have agreed on a final rule to amend 
the Federal Acquisition Regulation (FAR) to raise the dollar thresholds 
pertaining to approval for the use of other than full and open 
competition in the acquisition process. This regulatory action was not 
subject to Office of Management and Budget review under Executive Order 
12866, dated September 30, 1993, and is not a major rule under 5 U.S.C. 
804.

EFFECTIVE DATE: August 19, 1996.

FOR FURTHER INFORMATION CONTACT: Mr. Ralph De Stefano at (202) 501-1758 
in reference to this FAR case. For general information, contact the FAR 
Secretariat, Room 4037, GS Building, Washington, DC 20405 (202) 501-
4755. Please cite FAC 90-39, FAR case 96-302.

SUPPLEMENTARY INFORMATION:

A. Background

    Section 4102 of the Fiscal Year 1996 Defense Authorization Act 
(Public Law 104-106) amends 10 U.S.C. 2304(f)(1)(B) and 41 U.S.C. 
253(f)(1)(B) to raise the dollar thresholds at which approval for the 
use of other than full and open competition must be obtained from the 
competition advocate, the head of the procuring activity, or the senior 
procurement executive. Section 4102 provides for approval of the 
justification for other than full and open competition by (1) the 
competition advocate, for proposed contracts over $500,000, but not 
exceeding $10,000,000; (2) the head of the procuring activity, or 
designee, for proposed contracts over $10,000,000, but not exceeding 
$50,000,000; and (3) the senior procurement executive, for proposed 
contracts over $50,000,000.

B. Regulatory Flexibility Act

    The final rule does not constitute a significant FAR revision 
within the meaning of FAR 1.501 and Public Law 98-577, and publication 
for public comments is not required. Therefore, the Regulatory 
Flexibility Act does not apply. However, comments from small entities 
concerning the affected subpart will be considered in accordance with 5 
U.S.C. 610. Such comments must be submitted separately and cite 5 
U.S.C. 601, et seq. (FAC 90-39, FAR case 96-302), in correspondence.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the changes to 
the FAR do not impose recordkeeping or information collection 
requirements, or collections of information from offerors, contractors, 
or members of the public which require the approval of the Office of 
Management and Budget under 44 U.S.C. 3501, et seq.

List of Subjects in 48 CFR Part 6

    Government procurement.

    Dated: June 4, 1996.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.

    Therefore, 48 CFR Part 6 is amended as set forth below:

PART 6--COMPETITION REQUIREMENTS

    1. The authority citation for 48 CFR Part 6 continues to read as 
follows:

    Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42 
U.S.C. 2473(c).

    2. Section 6.304 is amended in paragraph (a)(1) by revising 
``$100,000'' to read ``$500,000''; in (a)(2) by revising ``$100,000'' 
to read ``$500,000'' and ``$1,000,000'' to read ``$10,000,000''; in 
(a)(3) introductory text by revising ``$1,000,000'' to read 
``$10,000,000'' and ``$10,000,000'' to read ``$50,000,000''; and 
revising (a)(4) to read as follows:


6.304   Approval of the justification.

    (a) * * *
    (4) For a proposed contract over $50,000,000, by the senior 
procurement executive of the agency designated pursuant to the OFPP Act 
(41 U.S.C. 414(3)) in accordance with agency procedures. This authority 
is not delegable except in the case of the Under Secretary of Defense 
(Acquisition and Technology), acting as the senior procurement 
executive for the Department of Defense.
* * * * *
[FR Doc. 96-14518 Filed 6-19-96; 8:45 am]
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