[Federal Register Volume 66, Number 212 (Thursday, November 1, 2001)]
[Proposed Rules]
[Page 55157]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-27370]


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DEPARTMENT OF DEFENSE

48 CFR Part 203

[DFARS Case 99-D028]


Defense Federal Acquisition Regulation Supplement; 
Anticompetitive Teaming

AGENCY: Department of Defense (DoD).

ACTION: Proposed rule with request for comments.

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SUMMARY: DoD is proposing to amend the Defense Federal Acquisition 
Regulation Supplement (DFARS) to add policy addressing exclusive 
teaming arrangements. The proposed amendments specify that certain 
exclusive teaming arrangements may evidence violations of the antitrust 
laws.

DATES: Comments on the proposed rule should be submitted in writing to 
the address specified below on or before December 31, 2001, to be 
considered in the formation of the final rule.

ADDRESSES: Respondents may submit comments directly on the World Wide 
Web at http://emissary.acq.osd.mil/dar/dfars.nsf/pubcomm. As an 
alternative, respondents may e-mail comments to: 
http:[email protected]. Please cite DFARS Case 99-D028 in the subject 
line of e-mailed comments.
    Respondents that cannot submit comments using either of the above 
methods may submit comments to: Defense Acquisition Regulations 
Council, Attn: Ms. Susan Schneider, OUSD(AT&L)DP(DAR), IMD 3C132, 3062 
Defense Pentagon, Washington, DC 20301-3062; facsimile (703) 602-0350. 
Please cite DFARS Case 99-D028.
    At the end of the comment period, interested parties may view 
public comments on the World Wide Web at http://emissary.acq.osd.mil/dar/dfars.nsf.

FOR FURTHER INFORMATION CONTACT: Ms. Susan Schneider, (703) 602-0326. 
Please cite DFARS Case 99-D028.

SUPPLEMENTARY INFORMATION:

A. Background

    This proposed rule amends DFARS Subpart 203.3 to add a definition 
of ``exclusive teaming arrangement'' and to specify that certain 
exclusive teaming arrangements may evidence violations of the antitrust 
laws. DoD previously published a proposed rule on this subject at 64 FR 
63002, November 18, 1999. As a result of public comments received on 
the previous proposed rule, DoD is publishing this revised proposed 
rule to clarify that not all exclusive teaming arrangements evidence 
violations of the antitrust laws.
    This rule was not subject to Office of Management and Budget review 
under Executive Order 12866, dated September 30, 1993.

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 DoD does 
not expect frequent use of anticompetitive teaming arrangements by 
contractors or subcontractors. Therefore, DoD has not performed an 
initial regulatory flexibility analysis. DoD invites comments from 
small businesses and other interested parties. DoD also will consider 
comments from small entities concerning the affected DFARS subpart in 
accordance with 5 U.S.C. 610. Such comments should be submitted 
separately and should cite DFARS Case 99-D028.

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 Part 203

    Government procurement.

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

    Therefore, DoD proposes to amend 48 CFR part 203 as follows:
    1. The authority citation for 48 CFR part 203 continues to read as 
follows:

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

PART 203--IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF 
INTEREST

    2. Sections 203.302 and 203.303 are added to read as follows:


203.302  Definitions.

    Exclusive teaming arrangement means that two or more companies 
agree, in writing, through understandings, or by any other means, to 
team together on a procurement and further agree not to team with any 
other competitors on that procurement.


203.303  Reporting suspected antitrust violations.

    (c)(i) Practices or events that may evidence violations of the 
antitrust laws also include exclusive teaming arrangements when all of 
the following conditions exist:
    (A) One or a combination of the companies participating on the team 
is the sole provider of a product or service that is essential for 
contract performance;
    (B) The teaming arrangement impairs competition; and
    (C) Government efforts to eliminate the teaming arrangement are not 
successful.
    (ii) This policy applies only to exclusive teaming arrangements 
that meet all three of the conditions in paragraph (c)(i) of this 
section and should not be misconstrued to imply that all exclusive 
teaming arrangements evidence violations of the antitrust laws.

[FR Doc. 01-27370 Filed 10-31-01; 8:45 am]
BILLING CODE 5000-04-U