[Federal Register Volume 64, Number 100 (Tuesday, May 25, 1999)]
[Proposed Rules]
[Page 28134]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-13041]


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DEPARTMENT OF DEFENSE

48 CFR Parts 201 and 213

[DFARS Case 99-D002]


Defense Federal Acquisition Regulation Supplement; Overseas Use 
of the Purchase Card

AGENCY: Department of Defense (DoD).

ACTION: Proposed rule with request for comments.

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SUMMARY: The Director of Defense Procurement is proposing to amend the 
Defense Federal Acquisition Regulation Supplement (DFARS) to permit use 
of the Governmentwide commercial purchase card for purchases valued at 
or below $25,000 that are made outside the United States for use 
outside the United States and are for commercial items. Use of the 
purchase card permits immediate receipt of supplies and services and, 
therefore, increases mission readiness and accomplishment.

DATES: Comments on the proposed rule should be submitted in writing to 
the address specified below on or before July 26, 1999 to be considered 
in the formation of the final rule.

ADDRESSES: Interested parties should submit written comments on the 
proposed rule to: Defense Acquisition Regulations Council, Attn: Ms. 
Susan L. Schneider, PDUSD (A&T) DP (DAR), IMD 3D139, 3062 Defense 
Pentagon, Washington, DC 20301-3062. Telefax (703) 602-0350. Please 
cite DFARS Case 99-D002.
    E-mail comments submitted over the Internet should be addressed to: 
[email protected].
    Please cite DFARS Case 99-D002 in all correspondence related to 
this proposed rule. E-mail correspondence should cite DFARS Case 99-
D002 in the subject line.

FOR FURTHER INFORMATION CONTACT: Ms. Susan L. Schneider, (703) 602-
0131. Please cite DFARS Case 99-D002.

SUPPLEMENTARY INFORMATION: 

A. Background

    Section 13.301 of the Federal Acquisition Regulation (FAR) permits 
use of the Governmentwide commercial purchase card to make purchases 
valued at or below the micro-purchase threshold of $2,500 ($2,000 for 
construction purchases). The FAR permits use of the card for purchases 
exceeding the micro-purchase threshold only as an ordering or payment 
method in conjunction with a contract. The proposed DFARS revisions 
would permit use of the card on a stand-alone basis for overseas 
purchases of commercial items valued at or below $25,000.

 B. Regulatory Flexibility Act

    The proposed 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 
applies only to purchases that are made outside the United States for 
use outside the United States.
    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 DFARS subparts also will be considered in accordance with 5 
U.S.C. 610. Such comments should be submitted separately and should 
cite DFARS Case 99-D002 in correspondence.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the proposed 
rule does not impose any information collection requirements that 
require the approval of the Office of Management and Budget under 44 
U.S.C. 3501, et seq.

List of Subjects in 48 CFR Parts 201 and 213

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

    Therefore, 48 CFR Parts 201 and 213 are proposed to be amended as 
follows:
    1. The authority citation for 48 CFR Parts 201 and 213 continues to 
read as follows:

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

PART 201--FEDERAL ACQUISITION REGULATIONS SYSTEM

    2. Section 201.603-3 is amended by redesignating the existing text 
as paragraph (a), and by adding a new paragraph (b) to read as follows:


201.603-3  Appointment.

* * * * *
    (b) Agency heads may delegate the purchase authority in 213.301 to 
DoD civilian employees and members of the U.S. Armed Forces.

PART 213--SIMPLIFIED ACQUISITION PROCEDURES

    3. Section 213.301 is added to read as follows:


213.301  Governmentwide commercial purchase card.

    (1) ``United States,'' as used in this section, means the 50 States 
and the District of Columbia, the Commonwealth of Puerto Rico, the 
Virgin Islands, the Commonwealth of the Northern Mariana Islands, Guam, 
American Samoa, Wake Island, Johnston Island, Canton Island, the outer 
Continental Shelf lands, and any other place subject to the 
jurisdiction of the United States (but not including leased bases).
    (2) An individual appointed in accordance with 201.603-3(b) also 
may use the Governmentwide commercial purchase card to make a purchase 
that exceeds the micro-purchase threshold but does not exceed $25,000, 
if--
    (i) The purchase--
    (A) Is made outside the United States for use outside the United 
States; and
    (B) Is for a commercial item; but
    (C) Is not for work to be performed by employees recruited within 
the United States;
    (D) Is not for supplies or services originating from, or 
transported from or through, sources identified in FAR Subpart 25.7;
    (E) Is not for ball or roller bearings as end items; and
    (F) Does not require access to classified or Privacy Act 
information; and
    (ii) The individual making the purchase--
    (A) Is authorized and trained in accordance with agency procedures;
    (B) Complies with the requirements of FAR Part 8 in making the 
purchase; and
    (C) Seeks maximum practicable competition for the purchase in 
accordance with FAR 13.104(b).

[FR Doc. 99-13041 Filed 5-24-99; 8:45 am]
BILLING CODE 5000-04-M