[Federal Register Volume 69, Number 93 (Thursday, May 13, 2004)]
[Rules and Regulations]
[Pages 26507-26508]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-10881]


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DEPARTMENT OF DEFENSE

48 CFR Part 217

[DFARS Case 2003-D004]


Defense Federal Acquisition Regulation Supplement; Multiyear 
Procurement Authority for Environmental Services for Military 
Installations

AGENCY: Department of Defense (DoD).

ACTION: Final rule.

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SUMMARY: DoD has adopted as final, without change, an interim rule 
amending the Defense Federal Acquisition Regulation Supplement (DFARS) 
to implement Section 827 of the National Defense Authorization Act for 
Fiscal Year 2003. Section 827 authorizes DoD to enter into multiyear 
contracts for environmental remediation services for military 
installations.

EFFECTIVE DATE: May 13, 2004.

FOR FURTHER INFORMATION CONTACT: Mr. Euclides Barrera, Defense 
Acquisition Regulations Council, OUSD (AT&L) DPAP (DAR), IMD 3C132, 
3062 Defense Pentagon, Washington, DC 20301-3062. Telephone (703) 602-
0296; facsimile (703) 602-0350. Please cite DFARS Case 2003-D004.

SUPPLEMENTARY INFORMATION: 

A. Background

    DoD published an interim rule at 68 FR 43332 on July 22, 2003, to 
implement Section 827 of the National Defense Authorization Act for 
Fiscal Year 2003 (Public Law 107-314). Section 827 amended 10 U.S.C. 
2306c to provide authority for DoD to enter into multiyear contracts 
for environmental remediation services for military installations. Two 
sources submitted comments on the interim rule. A discussion of the 
comments is provided below.
    1. Comment: The interim rule is a major step forward for 
environmental remediation that can be accomplished within 5 years. 
However, the rule should provide for limited authority beyond 5 years 
where practicable and in the best interest of the Government.
    DoD Response: The recommended change is not feasible, since 10 
U.S.C. 2306c limits multiyear contracting authority for services to not 
more than 5 years.
    2. Comment: DFARS 232.703-1(1)(iii), which addresses incremental 
funding, must be sustained and clarified to provide the ability to cash 
flow expensive remedial projects that cannot be fully funded within a 
single year appropriation.
    DoD Response: No change to the incremental funding policy in DFARS 
232.703-1(1)(iii) is necessary for implementation of this rule.
    3. Comment: There is confusion within DoD as to what constitutes 
environmental services and environmental construction. DoD should 
clarify that all actions taken to remediate contamination under the 
DERA program constitute environmental services.
    DoD Response: The recommended clarification is outside the scope of 
this DFARS case.
    4. Comment: The definition of ``military installation'' or the list 
in DFARS 217.171(a)(1)(v) should specifically include industrial 
property to remove any question as to whether the remediation services 
can be used at both active and former government-owned-contractor-
operated industrial plants currently or previously owned by DoD.
    DoD Response: The definition of ``military installation'' in DFARS 
217.103 and the list in DFARS 217.171(a)(1)(v) are consistent with the 
provisions of 10 U.S.C. 2306c as amended by Section 827 of Public Law 
107-314. The multiyear contracting authority provided by the rule 
applies to environmental remediation services that meet the criteria at 
DFARS 217.171(a)(1)(v).
    This rule was not subject to Office of Management and Budget review 
under Executive Order 12866, dated September 30, 1993.

[[Page 26508]]

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 application of the rule is limited to contracts for 
environmental remediation services at military installations or sites 
formerly used by DoD. Before using the multiyear contracting authority 
provided by the rule, the head of the agency must determine that 
certain conditions exist, to include a determination that use of a 
multiyear contract will promote the best interests of the United States 
by encouraging effective competition and promoting economies in 
operations.

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 217

    Government procurement.

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

Interim Rule Adopted as Final Without Change

0
Accordingly, the interim rule amending 48 CFR Part 217, which was 
published at 68 FR 43332 on July 22, 2003, is adopted as a final rule 
without change.
[FR Doc. 04-10881 Filed 5-12-04; 8:45 am]
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