[Federal Register Volume 78, Number 148 (Thursday, August 1, 2013)]
[Rules and Regulations]
[Pages 46781-46782]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-18448]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Part 2

[FAC 2005-69; FAR Case 2013-003; Item I; Docket 2013-0003, Sequence 1]
RIN 9000-AM48


Federal Acquisition Regulation; Definition of Contingency 
Operation

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

ACTION: Final rule.

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SUMMARY: DoD, GSA, and NASA have adopted as final, without change, an 
interim rule amending the Federal Acquisition Regulation (FAR) to 
revise the definition of ``contingency operation'' to address the 
statutory change to the definition made by the National Defense 
Authorization Act for Fiscal Year 2012.

DATES: Effective: August 1, 2013.

FOR FURTHER INFORMATION CONTACT: Ms. Patricia Corrigan, Procurement 
Analyst, at 202-208-1963, for clarification of content. For information 
pertaining to status or publication schedules, contact the Regulatory 
Secretariat at 202-501-4755. Please cite FAC 2005-69, FAR Case 2013-
003.

SUPPLEMENTARY INFORMATION:

I. Background

    DoD, GSA, and NASA published an interim rule in the Federal 
Register at 78 FR 13765 on February 28, 2013, amending the FAR to 
revise the definition of ``contingency operation'' at FAR 2.101 in 
accordance with the statutory change to the definition made by 
paragraph (b) of section 515 of the National Defense Authorization Act 
for Fiscal Year 2012 (Pub. L. 112-81, enacted December 31, 2011). The 
definition of ``contingency operation'' was amended at 10 U.S.C. 
101(a)(13) by adding ``12304a''.
    Paragraph (a) of section 515 of the National Defense Authorization 
Act for Fiscal Year 2012 (Pub. L. 112-81), entitled ``Authority to 
Order Army Reserve, Navy Reserve, Marine Corps Reserve, and Air Force 
Reserve to Active Duty to Provide Assistance in Response to a Major 
Disaster or Emergency,'' amends chapter 1209 of title 10, United States 
Code, by incorporating a new provision at section 12304a that provides 
for treatment of an operation as a contingency operation when the 
Secretary of Defense activates Reserves under the terms of 10 U.S.C. 
12304a in response to a Governor's request for Federal assistance in 
responding to a major disaster or emergency declared by the President.
    The interim rule therefore added a reference to 10 U.S.C. 12304a 
(from section 515 of the National Defense Authorization Act for Fiscal 
Year 2012 (Pub. L. 112-81)) to the list of references in section (2) of 
the definition of ``contingency operation'' in FAR 2.101, Definitions.

II. Discussion and Analysis

    The Civilian Agency Acquisition Council and the Defense Acquisition 
Regulations Council (Councils) reviewed the public comments in the 
development of the final rule.
    Only one comment was received. The respondent indicated that it 
concurred with the interim rule. Therefore, no change to the interim 
rule was deemed necessary for the final rule.

III. Executive Orders 12866 and 13563

    Executive Orders (E.O.s) 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). E.O. 
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.

[[Page 46782]]

IV. Regulatory Flexibility Act

    DoD, GSA, and NASA have prepared a Final Regulatory Flexibility 
Analysis (FRFA) consistent with the Regulatory Flexibility Act, 5 
U.S.C. 601, et seq. The FRFA is summarized as follows:

    Expanding the definition of ``contingency operation'' to include 
responding to a Presidential declaration of a major disaster or 
emergency (as defined in section 102 of the Robert T. Stafford 
Disaster Relief and Emergency Assistance Act (42 U.S.C. 5122)) will 
increase the circumstances under which ``contingency operations'' 
may be declared, thereby allowing defense and civilian agencies to 
raise thresholds (i.e., micro-purchase and simplified acquisition 
thresholds) for acquisitions made in support of emergencies in 
accordance with the authorities listed at FAR 18.201, and exercise 
preferences, such as local area set-asides or evaluation 
preferences.
    Because ``local businesses'' may vary in size and business 
ownership, and the locations of disasters vary, we do not expect the 
amendment to have a direct and sustained economic impact on a 
substantial number of small entities. However, there is the 
possibility that, because the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act provides for a preference for local 
organizations, firms, and individuals when contracting for major 
disaster or emergency activities, implementation of the revised 
definition for ``contingency operation'' may increase opportunities 
for awarding contracts to small entities located at or near major 
disaster areas or emergency activities.
    In addition, FAR 19.502-2(a) requires simplified acquisitions 
during a contingency operation within the United States ($300,000 
instead of $150,000) to be automatically reserved for small 
businesses (with the usual exceptions). The ability to restrict 
purchases up to two times the normal simplified acquisition 
threshold for small businesses will have a significant positive 
impact on small entities.

    Interested parties may obtain a copy of the FRFA from the 
Regulatory Secretariat. The Regulatory Secretariat has submitted a copy 
of the FRFA to the Chief Counsel for Advocacy of the Small Business 
Administration.

V. Paperwork Reduction Act

    The final rule does not contain 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 2

    Government procurement.

    Dated: July 26, 2013.
William Clark,
Acting Director, Office of Government-wide Acquisition Policy, Office 
of Acquisition Policy, Office of Government-wide Policy.

Interim Rule Adopted as Final Without Change

0
Accordingly, the interim rule amending 48 CFR part 2, which was 
published in the Federal Register at 78 FR 13765 on February 28, 2013 
is adopted as a final rule without change.

[FR Doc. 2013-18448 Filed 7-31-13; 8:45 am]
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