[Federal Register Volume 80, Number 123 (Friday, June 26, 2015)]
[Rules and Regulations]
[Pages 36903-36905]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-15668]


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DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Parts 202, 203, 205, 207, 211, 212, 215, 217, 219, 225, 228, 
234, 236, 237, 250, and 252

RIN 0750-AI43


Defense Federal Acquisition Regulation Supplement: Inflation 
Adjustment of Acquisition-Related Thresholds (DFARS Case 2014-D025)

AGENCY: Defense Acquisition Regulations System, Department of Defense 
(DoD).

ACTION: Final rule.

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SUMMARY: DoD is issuing a final rule amending the Defense Federal 
Acquisition Regulation Supplement (DFARS) to implement the inflation 
adjustment of acquisition-related dollar thresholds. A statute requires 
an adjustment every five years of acquisition-related thresholds for 
inflation using the Consumer Price Index for all urban consumers, 
except for the Construction Wage Rate Requirements statute (formerly 
Davis-Bacon Act), Service Contract Labor Standards statute, and trade 
agreements thresholds. DoD also used the same methodology to adjust 
nonstatutory DFARS acquisition-related thresholds.

DATES: Effective Date: October 1, 2015.

FOR FURTHER INFORMATION CONTACT: Ms. Amy G. Williams, telephone 571-
372-6106.

SUPPLEMENTARY INFORMATION:

I. Background

    This rule amends multiple DFARS parts to further implement 41 
U.S.C. 1908. Section 1908 requires an adjustment every five years (on 
October 1 of each year evenly divisible by five) of statutory 
acquisition-related thresholds for inflation, using the Consumer Price 
Index (CPI) for all urban consumers, except for the Construction Wage 
Rate Requirements statute (Davis-Bacon Act), Service Contract Labor 
Standards statute, and trade agreements thresholds (see DFARS 201.109). 
As a matter of policy, DoD also uses the same methodology to adjust 
nonstatutory FAR acquisition-related thresholds.
    DoD published a proposed rule in the Federal Register at 79 FR 
65912 on November 6, 2014. The preamble to the proposed rule contained 
detailed explanation of--
     What an acquisition-related threshold is;
     What acquisition-related thresholds are not subject to 
escalation adjustment under this case; and
     How DoD analyzes statutory and non-statutory acquisition-
related thresholds.
    No respondents submitted public comments in response to the 
proposed rule.
    Although there were no changes between the proposed rule and the 
final rule as the result of public comments, some of the thresholds in 
the final rule are lower than proposed, due to lower inflation than was 
projected at the time of publication of the proposed rule. The proposed 
rule was based on a projected CPI of 245 for March 2015. The final rule 
is based on an actual CPI of 236.119 for March 2015. The CPI as of the 
end of March, 6 months before the effective date of the rule, is used 
as the cutoff in order to allow time for approval and publication of 
the final rule.
    Because the actual CPI index for March 2015 is about 10 points 
lower than the CPI index projected for that date at the time of the 
proposed rule, thresholds of at least 10 million dollars are generally 
proportionally lower than the proposed thresholds. Thresholds of less 
than $10 million are frequently unchanged, due to rounding.
    There were some baseline changes due to other DFARS cases. For 
example, there are baseline changes to subpart 217.1, and the clauses 
at DFARS 252.203-7004 and 252.209-7004 have been amended since 
publication of the proposed rule. DFARS 232.502-1(b)(1) and the clause 
at DFARS 252.225-7006, including the associated thresholds, have been 
deleted under other DFARS cases.

II. 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 E.O. 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

    A final regulatory flexibility analysis has been prepared 
consistent with the Regulatory Flexibility Act, 5 U.S.C. 601, et seq., 
and is summarized as follows:
    This rule amends the Defense Federal Acquisition Regulation 
Supplement to implement 41 U.S.C. 1908 and to amend other acquisition-
related dollar thresholds that are based on policy rather than statute 
in order to adjust for the changing value of the dollar. 41 U.S.C. 1908 
requires adjustment every five years of statutory acquisition-related 
dollar thresholds, except for Construction Wage Rate Requirements 
statute (Davis-Bacon Act), Service Contract Labor Standards statute, 
and trade agreements thresholds. While reviewing all statutory 
acquisition-related thresholds, this case presented an opportunity to 
also review all nonstatutory acquisition-related thresholds in the 
DFARS that are based on policy. The objective of the case is to 
maintain the status quo, by adjusting

[[Page 36904]]

acquisition-related thresholds for inflation.
    This rule will likely affect to some extent all small business 
concerns that submit offers or are awarded contracts by the Federal 
Government. However, most of the threshold changes in this rule are not 
expected to have any significant economic impact on small business 
concerns because they are intended to maintain the status quo by 
adjusting for changes in the value of the dollar. Often any impact will 
be beneficial, by preventing burdensome requirements from applying to 
more and more acquisitions, as the dollar loses value.
    The rule does not impose any new reporting, recordkeeping, or 
compliance requirements. Changes in thresholds for approved information 
collection requirements are intended to maintain the status quo and 
prevent those requirements from increasing over time.
    The rule does not duplicate, overlap, or conflict with any other 
Federal rules.
    There are no practical alternatives that will accomplish the 
objectives of the statute.

IV. Paperwork Reduction Act

    The Paperwork Reduction Act does apply. The changes to the DFARS do 
not impose new information collection requirements that require the 
approval of the Office of Management and Budget (OMB) under 44 U.S.C. 
3501, et seq. By adjusting the thresholds for inflation, the status quo 
for the current information collection requirements is maintained under 
the following OMB clearance numbers:

------------------------------------------------------------------------
      OMB control No.                Title               DFARS part
------------------------------------------------------------------------
0704-0187..................  Information              208, 209, 226, 235
                              Collection in
                              Support of the DOD
                              Acquisition Process
                              (Solicitation Phase).
0704-0229..................  Defense Federal                         225
                              Acquisition
                              Regulation
                              Supplement Part 225,
                              Foreign Acquisition,
                              and related clauses.
0704-0286..................  Defense FAR                             205
                              Supplement (DFARS)
                              Part 205,
                              Publicizing Contract
                              Actions, and DFARS
                              252-205-7000,
                              Provision of
                              Information to
                              Cooperative
                              Agreement Holders.
0704-0477..................  Organizational                        209.5
                              Conflicts of
                              Interest in Major
                              Defense Acquisition
                              Programs.
------------------------------------------------------------------------

    However, the rule contains one information collection requirement 
that required the approval of the Office of Management and Budget under 
the Paperwork Reduction Act (44 U.S.C. chapter 35). This information 
collection requirement has been assigned OMB Control Number 0704-0533, 
titled: ``Defense Federal Acquisition Regulation Supplement (DFARS) 
Part 249, Termination of Contracts, and a Related Clauses at DFARS 
252.249, Notification of Anticipated Contract Termination or 
Reduction.''

List of Subjects in 48 CFR Parts 202, 203, 205, 207, 211, 212, 215, 
217, 219, 225, 228, 234, 236, 237, 250, and 252

    Government procurement.

Amy G. Williams,
Editor, Defense Acquisition Regulations System.

    Therefore, 48 CFR parts 202, 203, 205, 207, 211, 212, 215, 217, 
219, 225, 228, 234, 236, 237, 250, and 252 are amended as follows:

0
1. The authority citation for 48 CFR parts 202, 203, 205, 211, 212, 
215, 217, 219, 225, 234, 236, 237, and 252 continues to read as 
follows:

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

PART 202--DEFINITIONS OF WORDS AND TERMS


202.101   [Amended]

0
2. Amend section 202.101 by designating the definition of ``Simplified 
acquisition threshold'' in alphabetical order in the list of 
definitions.

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


203.1004   [Amended]

0
3. Amend section 203.1004 in paragraph (b)(2)(ii) by removing ``$5 
million'' and adding ``$5.5 million'' in its place.

PART 205--PUBLICIZING CONTRACT ACTIONS


205.303   [Amended]

0
4. Amend section 205.303 by removing ``$6.5 million'' everywhere it 
appears and adding ``$7 million'' in its place.

PART 207--ACQUISITION PLANNING

0
5. The authority citation for part 207 is revised to read as follows:

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


207.170-3   [Amended]

0
6. Amend section 207.170-3 in paragraph (a) introductory text by 
removing ``$6 million'' and adding ``$6.5 million'' in its place.

PART 211--DESCRIBING AGENCY NEEDS


211.503   [Amended]

0
7. Amend section 211.503 in paragraph (b) by removing ``$650,000'' and 
adding ``$700,000'' in its place in two places.

PART 212--ACQUISITION OF COMMERCIAL ITEMS


212.7102-1   [Amended]

0
8. Amend section 212.7102-1 in paragraph (c) by removing ``$50 
million'' and adding ``$53.5 million'' in its place.

PART 215--CONTRACTING BY NEGOTIATION


215.403-1   [Amended]

0
9. Amend section 215.403-1 in paragraphs (c)(3)(B) and (c)(4)(B) by 
removing ``$15,000,000'' and adding ``$19.5 million'' in its place.

PART 217--SPECIAL CONTRACTING METHODS


217.170   [Amended]

0
10. Amend section 217.170 in paragraphs (d)(1)(iv) and (d)(5) by 
removing ``$125 million'' and adding ``$135.5 million'' in both places 
it appears.


217.171   [Amended]

0
11. Amend section 217.171 in paragraph (d) by removing ``$625.5 
million'' and adding ``$678.5 million'' in its place.


217.172   [Amended]

0
12. Amend section 217.172 in paragraphs (c), (d), (f)(1), and (f)(2) by 
removing ``$500 million'' and adding ``$678.5 million'' in its place.

[[Page 36905]]

PART 219--SMALL BUSINESS PROGRAMS


219.502-1   [Amended]

0
13. Amend section 219.502-1 in paragraph (2) by removing ``$350,000'' 
and adding ``$400,000'' in its place in both places.


  219.502-2 [Amended]

0
14. Amend section 219.502-2 in paragraph (a)(iii) by removing 
``$350,000'' and adding ``$400,000'' in its place.

PART 225--FOREIGN ACQUISITION


225.7204   [Amended]

0
15. Amend section 225.7204 in paragraphs (a) and (b) by removing 
``$12.5 million'' and adding ``$13.5 million'' in both places it 
appears.


225.7703-2   [Amended]

0
16. Amend section 225.7703-2 in paragraphs (b)(2)(i) and (ii) by 
removing ``$85.5 million'' and adding ``$93 million'' in its place in 
both places.

PART 228--BONDS AND INSURANCE

0
17. The authority citation for part 228 is revised to read as follows:

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


228.102-1   [Amended]

0
18. Amend section 228.102-1 by--
0
a. In the introductory text and paragraph (1), removing ``$30,000'' and 
adding ``$35,000'' in its place in both places; and
0
b. In paragraph (2) introductory text, removing ``$100,000'' and adding 
``$150,000'' in its place.

PART 234--MAJOR SYSTEM ACQUISITION

0
19. Revise section 234.7001 to read as follows:


234.7001   Definition.

    Major weapon system, as used in this subpart, means a weapon system 
acquired pursuant to a major defense acquisition program.

PART 236--CONSTRUCTION AND ARCHITECT-ENGINEER CONTRACTS


236.601   [Amended]

0
20. Amend section 236.601 in paragraph (1) by removing ``$1,000,000'' 
and adding ``$1.5 million'' in its place.

PART 237--SERVICE CONTRACTING


237.170-2  [Amended]

0
21. Amend section 237.170-2 in paragraphs (a)(1) and (2) by removing 
``$85.5 million'' and adding ``$93 million'' in its place in both 
places.

PART 250--EXTRAORDINARY CONTRACTUAL ACTIONS AND THE SAFETY ACT

0
22. The authority citation for part 250 is revised to read as follows:

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


250.102-1  [Amended]

0
23. Amend section 250.102-1 in paragraph (b) by removing ``$65,000'' 
and adding ``$70,000'' in its place.


250.102-1-70  [Amended]

0
24. Amend section 250.102-1-70 in paragraph (b)(1) by removing 
``$65,000'' and adding ``$70,000'' in its place.

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES


252.203-7004  [Amended]

0
25. Amend section 252.203-7004 by--
0
a. Removing the clause date ``(JAN 2015)'' and adding ``(OCT 2015)'' in 
its place; and
0
b. In paragraph (e), removing ``$5 million'' and adding ``$5.5 
million'' in its place.


252.209-7004  [Amended]

0
26. Amend section 252.209-7004 by--
0
a. Removing the clause date ``(DEC 2014)'' and adding ``(OCT 2015)'' in 
its place; and
0
b. In paragraph (a), removing ``$30,000'' and adding ``$35,000'' in its 
place.


252.209-7009  [Amended]

0
27. Amend section 252.209-7009 by--
0
a. Removing the clause date ``(DEC 2012)'' and adding ``(OCT 2015)'' in 
its place; and
0
b. In paragraph (a)(ii), removing ``$50 million'' and adding ``$55 
million'' in its place.


252.225-7003  [Amended]

0
28. Amend section 252.225-7003 by--
0
a. Removing the clause date ``(OCT 2010)'' and adding ``(OCT 2015)'' in 
its place;
0
b. In paragraph (b)(1), removing ``$12.5 million'' and adding ``$13.5 
million'' in its place; and
0
c. In paragraph (b)(2)(i), removing ``$650,000'' and adding 
``$700,000'' in its place.


252.225-7004  [Amended]

0
29. Amend section 252.225-7004 by--
0
a. Removing the clause date ``(OCT 2010)'' and adding ``(OCT 2015)'' in 
its place; and
0
b. In paragraph (b)(1), removing ``$650,000'' and adding ``$700,000'' 
in its place.


252.225-7017  [Amended]

0
30. Amend section 252.225-7017 by--
0
a. Removing the clause date ``(JAN 2014)'' and adding ``(OCT 2015)'' in 
its place; and
0
b. In paragraph (c)(1), removing ``$3,000'' and adding ``$3,500'' in 
its place.


252.225-7018  [Amended]

0
31. Amend section 252.225-7018 by--
0
a. Removing the clause date ``(JAN 2014)'' and adding ``(OCT 2015)'' in 
its place;
0
b. In paragraph (b)(1), removing ``$3,000'' and adding ``$3,500'' in 
its place; and
0
c. In paragraphs (d)(1) and (2), removing ``$3,000'' and adding 
``$3,500'' in its place in both places.


252.249-7002  [Amended]

0
32. Amend section 252.249-7002 by--
0
a. Removing the clause date ``(OCT 2010)'' and adding ``(OCT 2015)'' in 
its place; and
0
b. In paragraph (d)(1), removing ``$650,000'' and adding ``$700,000'' 
in its place.

[FR Doc. 2015-15668 Filed 6-25-15; 8:45 am]
 BILLING CODE 5001-06-P