[Federal Register Volume 76, Number 110 (Wednesday, June 8, 2011)]
[Rules and Regulations]
[Pages 33170-33171]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-14108]



Defense Acquisition Regulations System

48 CFR Part 212

RIN 0750-AH23

Defense Federal Acquisition Regulation Supplement; Inclusion of 
Option Amounts in Limitations on Authority of the Department of Defense 
to Carry Out Certain Prototype Projects (DFARS Case 2011-D024)

AGENCY: Defense Acquisition Regulations System, Department of Defense 

[[Page 33171]]

ACTION: Final rule.


SUMMARY: DoD is issuing this final rule amending the Defense Federal 
Acquisition Regulation Supplement (DFARS) to implement section 826 of 
the National Defense Authorization Act for Fiscal Year 2011. Section 
826 amended the DoD pilot program for transition to follow-on 
contracting after use of other transaction authority, to establish that 
the threshold limitation of $50 million for contracts and subcontracts 
under the program includes the dollar value of all options.

DATES: Effective June 8, 2011.

FOR FURTHER INFORMATION CONTACT: Mr. Manuel Quinones, telephone 703 


I. Background

    This final rule amends the DoD pilot program addressed in Defense 
Federal Acquisition Regulation Supplement (DFARS) Subpart 212.70, Pilot 
Program for Transition to Follow-On Contracting after Use of Other 
Transaction Authority (OTA). It adds a new section 212.7002-3, 
Thresholds, to clarify that, consistent with FAR 1.108(c), Dollar 
Thresholds, the threshold limitation for contracts and subcontracts 
under the pilot program of $50 million includes the dollar value of all 
    DoD has issued this rule as a final rule because the rule does not 
have a significant effect beyond DoD internal operating procedures as 
it merely reinforces current guidance in the Federal Acquisition 
Regulation (FAR). Further, it does not have a significant cost or 
administrative impact on contractors. FAR 1.108(c) currently states, in 
part, that ``unless otherwise specified, a specific dollar threshold 
for the purpose of applicability is the final anticipated dollar value 
of the action, including the dollar value of all options.''

II. Executive Orders 12866 and 13563

    Executive Orders 12866 and 13563 direct agencies to assess all 
costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). Executive 
Order 13563 emphasizes the importance of quantifying both costs and 
benefits, of reducing costs, of harmonizing rules, and of promoting 
flexibility. 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.

III. Regulatory Flexibility Act

    The Regulatory Flexibility Act does not apply to this rule. This 
final rule does not constitute a significant DFARS revision within the 
meaning of FAR 1.501 and public comment is not required in accordance 
with 41 U.S.C. 1707.

IV. Paperwork Reduction Act

    The rule does not impose any information collection requirements 
that require the approval of the Office of Management and Budget under 
the Paperwork Reduction Act (44 U.S.C. chapter 35).

List of Subjects in 48 CFR Part 212

    Government procurement.

Mary Overstreet,
Editor, Defense Acquisition Regulations System.

    Therefore, 48 CFR part 212 is amended as follows:


1. The authority citation for 48 CFR part 212 continues to read as 

    Authority:  41 U.S.C. 1303 and 48 CFR chapter 1.

2. Add section 212.7002-3 to subpart 212.70 to read as follows:

212.7002-3  Thresholds.

    The contract and subcontract thresholds at 212.7002-1(a)(3) and 
212.7002-2(a)(2) include the dollar value of all options in accordance 
with section 826 of the National Defense Authorization Act for Fiscal 
Year 2011. See also FAR 1.108(c).
[FR Doc. 2011-14108 Filed 6-7-11; 8:45 am]