[Federal Register Volume 80, Number 224 (Friday, November 20, 2015)]
[Proposed Rules]
[Pages 72671-72672]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-29552]


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DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Parts 217 and 234

[Docket DARS-2015-0042]
RIN 0750-AI62


Defense Federal Acquisition Regulation Supplement: Extension and 
Modification of Contract Authority for Advanced Component Development 
and Prototype Units (DFARS Case 2015-D008)

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

ACTION: Proposed rule.

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SUMMARY: DoD is proposing to amend the Defense Federal Acquisition 
Regulation Supplement (DFARS) to implement a section of the National 
Defense Authorization Act for Fiscal Year 2015, which amended a section 
of the National Defense Authorization Act for Fiscal Year 2010, to 
extend and modify contract authority for advanced component development 
and prototype units.

DATES: Comments on the proposed rule should be submitted in writing to 
the address shown below on or before January 19, 2016, to be considered 
in the formation of a final rule.

ADDRESSES: Submit comments identified by DFARS Case 2015-D008, using 
any of the following methods:
    [cir] Regulations.gov: http://www.regulations.gov. Submit comments 
via the Federal eRulemaking portal by entering ``DFARS Case 2015-D008'' 
under the heading ``Enter keyword or ID'' and selecting ``Search.'' 
Select the link ``Submit a Comment'' that corresponds with ``DFARS Case 
2015-D008.'' Follow the instructions provided at the ``Submit a 
Comment'' screen. Please include your name, company name (if any), and 
``DFARS Case 2015-D008'' on your attached document.
    [cir] Email: [email protected]. Include DFARS Case 2015-D008 in 
the subject line of the message.
    [cir] Fax: 571-372-6094.
    [cir] Mail: Defense Acquisition Regulations System, Attn: Ms. 
Janetta Brewer, OUSD(AT&L)DPAP/DARS, Room 3B941, 3060 Defense Pentagon, 
Washington, DC 20301-3060.
    Comments received generally will be posted without change to http://www.regulations.gov, including any personal information provided. To 
confirm receipt of your comment(s), please check www.regulations.gov, 
approximately two to three days after submission to verify posting 
(except allow 30 days for posting of comments submitted by mail).

FOR FURTHER INFORMATION CONTACT: Ms. Janetta Brewer, telephone: 571-
372-6104.

SUPPLEMENTARY INFORMATION:

I. Background

    DoD is proposing to revise the DFARS to implement section 811 of 
the National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2015 
(Pub. L. 113-291). Section 811 entitled ``Extension and Modification of 
Contract Authority for Advanced Component Development and Prototype 
Units'' amends paragraphs (a) and (b) of section 819 of the NDAA for FY 
2010 (10 U.S.C. 2302 note).
    The rule proposes to amend DFARS 217.202(2) and 234.005-1(1) to add 
``or initial production'' to the text. This will allow for the 
inclusion of a contract line item (possibly an option) to go to initial 
production without further competition. However, there is no new impact 
on contract cost because section 819(b) of the NDAA for FY 2010 (which 
is unchanged in 2015) continues to place a limitation on costs 
associated with any contract line item (option or otherwise) for the 
delivery of initial or additional items. The rule also extends this 
authority at DFARS 234.005-1(2) to September 30, 2019, from September 
30, 2014.

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

    DoD does not expect this rule 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 
primarily provides greater flexibility to DoD when contracting for 
major system acquisitions. However, an initial regulatory flexibility 
analysis has been performed and is summarized as follows:
    The purpose of the rule is to implement section 811 of the National 
Defense Authorization Act (NDAA) for Fiscal Year (FY) 2015 (Pub. L. 
113-291). Section 811 entitled ``Extension and Modification of Contract 
Authority for Advanced Component Development and Prototype Units'' 
amends paragraphs (a) and (b) of section 819 of the NDAA for FY 2010 
(10 U.S.C. 2302 note).
    The rule proposes to amend DFARS 217.202(2) and 234.005-1(1) to add 
``or initial production'' to the text. This will allow for the 
inclusion of a contract line item (possibly an option) to go to initial 
production without further competition.
    The rule will apply to DoD major defense acquisition program 
contractors and subcontractors. Most major defense acquisition programs 
are awarded to large concerns as they are of a scope too large for any 
small business to perform. As such, it is not expected that this rule 
will have a significant impact on a substantial number of small 
entities.
    The rule does not impose any additional reporting, recordkeeping, 
and other compliance requirements. The rule does not duplicate, 
overlap, or conflict with any other Federal rules. There are no 
alternatives available that would meet the objectives of the statute.
    DoD invites comments from small business concerns and other 
interested

[[Page 72672]]

parties on the expected impact of this rule on small entities.
    DoD will also consider comments from small entities concerning the 
affected DFARS subpart in accordance with 5 U.S.C. 601. Such comments 
should be submitted separately and should cite 5 U.S.C. 610 (DFARS Case 
2015-D008) in correspondence.

IV. 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. chapter 
35.

List of Subjects in 48 CFR Parts 217 and 234

    Government procurement.

Jennifer L. Hawes,
Editor, Defense Acquisition Regulations System.

    Therefore, 48 CFR parts 217 and 234 are proposed to be amended as 
follows:

0
1. The authority citation for parts 217 and 234 continues to read as 
follows:

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

PART 217--SPECIAL CONTRACTING METHODS

0
2. Amend section 217.202 by revising paragraph (2) to read as follows:


217.202  Use of options.

* * * * *
    (2) See 234.005-1 for limitations on the use of contract options 
for the provision of advanced component development, prototype, or 
initial production of technology developed under the contract or the 
delivery of initial or additional items.

PART 234--MAJOR SYSTEM ACQUISITION


234.005-1  [Amended]

0
3. Amend section 234.005-1--
0
a. In paragraph (1) introductory text, by removing ``component 
development or prototype of technology'' and adding ``component 
development, prototype, or initial production of technology'' in its 
place, and removing ``additional prototype items'' and adding 
``additional items'' in its place; and
0
b. In paragraph (2), by removing ``September 30, 2014'' and adding 
``September 30, 2019'' in its place.

[FR Doc. 2015-29552 Filed 11-19-15; 8:45 am]
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