[Federal Register Volume 81, Number 58 (Friday, March 25, 2016)]
[Rules and Regulations]
[Pages 17044-17045]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-06721]


-----------------------------------------------------------------------

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: Final rule.

-----------------------------------------------------------------------

SUMMARY: DoD is issuing a final rule amending the Defense Federal 
Acquisition Regulation Supplement (DFARS) to implement a section of the 
National Defense Authorization Act for Fiscal Year 2015 that 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: Effective March 25, 2016.

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

SUPPLEMENTARY INFORMATION: 

I. Background

    DoD published a proposed rule in the Federal Register at 80 FR 
72671 on November 20, 2015, to revise the DFARS to implement section 
811 of the National Defense Authorization Act (NDAA) for Fiscal Year 
(FY) 2015 (Pub. L. 113-291, enacted December 19, 2014), which amended 
paragraphs (a) and (b) of section 819 of the NDAA for FY 2010 (10 
U.S.C. 2302 note). The rule proposed to amend DFARS 217.202(2) and 
234.005-1(1) to add ``or initial production'' to the text, to allow for 
inclusion of a contract line item (possibly an option) for advanced 
component development and prototype units to go to initial production 
without further competition. The rule also proposed to amend DFARS 
234.005-1(2) to extend this authority to September 30, 2019. There were 
no public comments submitted in response to the proposed rule. There 
are no changes from the proposed rule made in the final rule.

II. Applicability to Contracts at or Below the Simplified Acquisition 
Threshold and for Commercial Items, Including Commercially Available 
Off-the-Shelf Items

    This case does not add any new provisions or clauses or impact any 
existing provisions or clauses.

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 E.O. 12866, Regulatory Planning 
and Review, dated September 30, 1993. This rule is not a major rule 
under 5 U.S.C. 804.

IV. Regulatory Flexibility Act

    DoD has 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:
    This rule is necessary to implement section 811 of the National 
Defense Authorization Act (NDAA) for Fiscal Year (FY) 2015 (Pub. L. 
113-291). Section 811 amends paragraphs (a) and (b) of section 819 of 
the NDAA for FY 2010 (10 U.S.C. 2302 note). The objective of this rule 
is to provide authority for the inclusion of a contract line item 
(possibly an option) for advanced component development and prototype 
units to go to initial production without further competition.
    There were no significant issues raised by the public in response 
to the initial regulatory flexibility analysis.

[[Page 17045]]

    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 significant number of small 
entities.
    This rule does not impose new recordkeeping or reporting 
requirements. There are no known significant alternative approaches to 
the rule that would meet the requirements of the statute.

V. Paperwork Reduction Act

    The 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 Parts 217 and 234

    Government procurement.

Jennifer L. Hawes,
Editor, Defense Acquisition Regulations System.
    Therefore, 48 CFR parts 217 and 234 are amended as follows:

0
1. The authority citation for 48 CFR 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. 2016-06721 Filed 3-24-16; 8:45 am]
 BILLING CODE 5001-06-P