[Federal Register Volume 70, Number 45 (Wednesday, March 9, 2005)]
[Rules and Regulations]
[Pages 11739-11740]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-4085]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Part 6

[FAC 2005-01; FAR Case 2004-037; Item II]
RIN 9000-AK12


Federal Acquisition Regulation; Increased Justification and 
Approval Threshold for DoD, NASA, and Coast Guard

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

ACTION:  Interim rule with request for comments.

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SUMMARY:  The Civilian Agency Acquisition Council and the Defense 
Acquisition Regulations Council (Councils) have agreed on an interim 
rule amending the Federal Acquisition Regulation (FAR) to increase the 
justification and approval thresholds for DoD, NASA, and the U.S. Coast 
Guard, as a result of Section 815 of the Ronald W. Reagan National 
Defense Authorization Act for Fiscal Year 2005, Public Law 108-375, 
which amends 10 U.S.C. 2304(f)(1)(B) by striking $50,000,000 both 
places it appears and inserting $75,000,000 in its place. In addition, 
the FAR is amended by replacing the outdated reference to ``grade GS-
16'' with ``a grade above GS-15.''

DATES: Effective Date: March 9, 2005.
    Comment Date: Interested parties should submit comments to the FAR 
Secretariat at the address shown below on or before May 9, 2005 to be 
considered in the formulation of a final rule.

ADDRESSES:  Submit comments identified by FAC 2005-01, FAR case 2004-
037, by any of the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
     Agency Web Site: http://www.acqnet.gov/far/ProposedRules/proposed.htm. Click on the FAR case number to submit comments.
     E-mail: [email protected]. Include FAC 2005-01, FAR 
case 2004-037, in the subject line of the message.
     Fax: 202-501-4067.
     Mail: General Services Administration, Regulatory 
Secretariat (VIR), 1800 F Street, NW, Room 4035, ATTN: Laurieann 
Duarte, Washington, DC 20405.
    Instructions: Please submit comments only and cite FAC 2005-01, FAR 
case 2004-037, in all correspondence related to this case. All comments 
received will be posted without change to http://www.acqnet.gov/far/ProposedRules/proposed.htm, including any personal information 
provided.

FOR FURTHER INFORMATION CONTACT:  The FAR Secretariat at (202) 501-
4755, for information pertaining to status or publication schedules. 
For clarification of content, contact Mr. Michael Jackson, Procurement 
Analyst, at (202) 208-4949. Please cite FAC 2005-01, FAR case 2004-037.

SUPPLEMENTARY INFORMATION:

A. Background

    This interim rule implements Section 815 of the Ronald W. Reagan 
National Defense Authorization Act for Fiscal Year 2005, Public Law 
108-375,which amends 10 U.S.C. 2304(f)(1)(B) by striking $50,000,000 
both places it appears and inserting $75,000,000.
    This is not a significant regulatory action and, therefore, was not 
subject to review under Section 6(b) of Executive Order 12866, 
Regulatory Planning and Review, dated September 30, 1993. This rule is 
not a major rule under 5 U.S.C. 804.

B. Regulatory Flexibility Act

    The interim 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 
does not impose any costs on either small or large businesses. 
Therefore, an Initial Regulatory Flexibility Analysis has not been 
performed. The Councils will consider comments from small entities 
concerning the affected FAR Part 6 in accordance with 5 U.S.C. 610. 
Interested parties must submit such comments separately and should cite 
5 U.S.C 601, et seq. (FAC 2005-01, FAR case 2004-037), in 
correspondence.

C. Paperwork Reduction Act

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

D. Determination to Issue an Interim Rule

    A determination has been made under the authority of the Secretary 
of Defense (DoD), the Administrator of General Services (GSA), and the 
Administrator of the National Aeronautics and Space Administration 
(NASA) that urgent and compelling reasons exist to promulgate this 
interim rule without prior opportunity for public comment. This action 
is necessary because this rule implements Section 815 of Public Law 
108-375, which was effective upon enactment (October 28, 2004). 
However, pursuant to Public Law 98-577 and FAR 1.501, the Councils will 
consider public comments received in response to this interim rule in 
the formation of the final rule.

List of Subjects in 48 CFR Part 6

    Government procurement.

    Dated: February 24, 2005
Rodney P. Lantier,
Director,Contract Policy Division.

0
Therefore, DoD, GSA, and NASA amend 48 CFR part 6 as set forth below:

PART 6--COMPETITION REQUIREMENTS

0
1. The authority citation for 48 CFR part 6 is revised to read as 
follows:

    Authority:  40 U.S.C. 121(c); 10 U.S.C. chapter 137; and42 
U.S.C. 2473(c).
0
2. Amend section 6.304 by revising the introductory text of paragraph 
(a)(3), paragraph (a)(3)(ii), and the first sentence of paragraph 
(a)(4) to read as follows:


6.304  Approval of the justification.

    (a) * * *
    (3) For a proposed contract over $10,000,000, but not exceeding 
$50,000,000, or, for DoD, NASA, and the Coast Guard, not exceeding 
$75,000,000, by the head of the procuring activity, or a designee who--
* * * * *
    (ii) If a civilian, is serving in a position in a grade above GS-15 
under the General Schedule (or in a comparable or higher position under 
another schedule).

[[Page 11740]]

    (4) For a proposed contract over $50,000,000 or, for DoD, NASA, and 
the Coast Guard, over $75,000,000, by the senior procurement executive 
of the agency designatedpursuant to the OFPP Act (41 U.S.C. 414(3)) in 
accordance with agency procedures. * * *
* * * * *
[FR Doc. 05-4085 Filed 3-8-05; 8:45 am]
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