[Federal Register Volume 64, Number 203 (Thursday, October 21, 1999)]
[Rules and Regulations]
[Pages 56704-56705]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-27278]


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DEPARTMENT OF COMMERCE

48 CFR Parts 201 and 213

[DFARS Case 99-D002]


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

AGENCY: Department of Defense (DoD).

ACTION: Final rule.

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SUMMARY: The Director of Defense Procurement has issued a final rule 
amending 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.


[[Page 56705]]


EFFECTIVE DATE: October 21, 1999.

FOR FURTHER INFORMATION CONTACT:
Ms. Susan Schneider, Defense Acquisition Regulations Council, PDUSD 
(A&T) DP (DAR), IMD 3D139, 3062 Defense Pentagon, Washington, DC 20301-
3062. Telephone (703) 602-0326; telefax (703) 602-0350. 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. This final rule amends the DFARS 
to permit use of the card on a stand-alone basis for overseas purchases 
of commercial items valued at or below $25,000. This action is possible 
since many laws do not apply to purchases made overseas for use 
overseas. For example, some laws do not apply if the contractor's 
employees are recruited outside of the United States. Current 
requirements and restrictions imposed on card usage for purchases other 
than those falling within the scope of this rule remain unchanged.
    DoD published a proposed rule on May 25, 1999 (64 FR 28134). Forty-
seven sources submitted comments on the proposed rule. DoD considered 
all comments in the development of the final rule.
    This rule was not subject to Office of Management and Budget review 
under Executive Order 12866, dated September 30, 1993.

B. Regulatory Flexibility Act

    DoD certifies that this final rule will not 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 affects commercial item purchases that are made 
outside the United States for use outside the United States. Small 
business concerns are not significantly affected by overseas 
transactions.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the 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 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--
    (1) 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 8.001 in making the 
purchase; and
    (C) Seeks maximum practicable competition for the purchase in 
accordance with FAR 13.104(b).

[FR Doc. 99-27278 Filed 10-20-99; 8:45 am]
BILLING CODE 5000-04-M