[Federal Register Volume 81, Number 90 (Tuesday, May 10, 2016)]
[Rules and Regulations]
[Pages 28730-28731]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-10823]
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DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System
48 CFR Part 217
[Docket DARS-2015-0067]
RIN 0750-AI80
Defense Federal Acquisition Regulation Supplement: Multiyear
Contract Requirements (DFARS Case 2015-D009)
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 a section of the
National Defense Authorization Act for Fiscal Year 2015 and a section
of the Department of Defense Appropriations Act, 2015, which address
various requirements for multiyear contracts.
DATES: Effective May 10, 2016.
FOR FURTHER INFORMATION CONTACT: Mr. Christopher Stiller, telephone
571-372-6176.
SUPPLEMENTARY INFORMATION:
I. Background
DoD published a proposed rule in the Federal Register at 80 FR
81499 on December 30, 2015, to amend the DFARS to implement section 816
of the National Defense Authorization Act for Fiscal Year 2015 (Pub. L.
113-291) and section 8010 of the Department of Defense Appropriations
Act, 2015 (Division C, Title VIII of Pub. L. 113-235), which address
various requirements for multiyear contracts. 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 (SAT) and for Commercial Items, Including Commercially
Available Off-the-Shelf (COTS) Items
This rule 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,
[[Page 28731]]
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
A final regulatory flexibility analysis (FRFA) has been prepared
consistent with the Regulatory Flexibility Act, 5 U.S.C. 601, et seq.
The FRFA is summarized as follows:
The purpose of this rule is to implement section 816 of the
National Defense Authorization Act for Fiscal Year 2015 and section
8010 of the Department of Defense Appropriations Act, 2015, which
address various requirements for multiyear contracts. The rule will
amend the Defense Federal Acquisition Regulation Supplement to require
the head of agency to--
Provide written notice to the congressional defense
committees at least 30 days before termination of any multiyear
contract; and
For defense acquisition programs specifically authorized
by law to be carried out using multiyear authority, ensure the
Secretary of Defense certifies to Congress certain conditions for the
multiyear contract have been met no later than 30 days before entry
into the contract.
No comments were received from the public regarding the initial
regulatory flexibility analysis.
The rule is not expected to impact small entities, because the rule
applies to multiyear contract authorities for specific major defense
acquisition programs for which small entities would not have the
capacity or infrastructure to fulfill or sustain. Small entities may
perform under multiyear contracts as subcontractors; however, the rule
invokes requirements that apply at the prime contract level.
This rule does not create any new reporting or recordkeeping
requirements.
There are no known significant alternatives to the rule. The impact
of this rule on small business is not expected to be significant
because it only affects DoD internal operating procedures.
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 Part 217
Government procurement.
Jennifer Hawes,
Editor, Defense Acquisition Regulations System.
Therefore, 48 CFR part 217 is amended as follows:
PART 217--SPECIAL CONTRACTING METHODS
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1. The authority citation for 48 CFR part 217 continues to read as
follows:
Authority: 41 U.S.C. 1303 and 48 CFR chapter 1.
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2. Revise section 217.170(b) to read as follows:
217.170 General.
* * * * *
(b) The head of the agency must provide written notice to the
congressional defense committees at least 30 days before termination of
any multiyear contract (section 8010 of Division C, Title VIII, of the
Consolidated and Further Continuing Appropriations Act, 2015 (Pub. L.
113-235) and similar sections in subsequent DoD appropriations acts).
* * * * *
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3. Amend section 217.172--
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a. In paragraph (c), by removing ``10 U.S.C. 2306b(i)(3)'' and adding
``10 U.S.C. 2306b(i)(1)'' in its place;
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b. In paragraph (e)(1), by removing the word ``and'';
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c. In paragraph (e)(2), by removing the period and adding a semicolon
in its place;
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d. By adding paragraphs (e)(3), (4), and (5);
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e. In paragraph (h) introductory text, by removing ``under the
authority described in paragraph (b) of this section:'' and adding
``for a defense acquisition program that has been specifically
authorized by law to be carried out using multiyear contract
authority:'' in its place;
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f. In paragraph (h)(2) introductory text, by removing ``March 1 of the
year in which the Secretary requests legislative authority to enter''
and adding ``30 days before entry'' in its place and by removing ``10
U.S.C. 2306b(i)(1)(A) through (G)'' and adding ``10 U.S.C.
2306b(i)(3)'' in its place;
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g. In paragraph (h)(2)(i)--
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i. By removing ``FAR 17.105'' and adding ``FAR 17.105-1'' in its
places;
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ii. By adding a comma after ``(5)''; and
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iii. By removing ``10 U.S.C. 2306b(i)(1)(A)'' and adding ``10 U.S.C.
2306b(i)(3)(A)'' in its place;
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h. In paragraph (h)(2)(ii), by removing ``10 U.S.C. 2306b(i)(1)(B)''
and adding ``10 U.S.C. 2306b(i)(3)(B)'' in its place;
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i. In paragraph (h)(2)(iii), by removing ``10 U.S.C. 2306b(i)(1)(C)''
and adding ``10 U.S.C. 2306b(i)(3)(C)'' in its place;
0
j. In paragraph (h)(2)(iv), by removing ``10 U.S.C. 2306b(i)(1)(D)''
and adding ``10 U.S.C. 2306b(i)(3)(D)'' in its place;
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k. In paragraph (h)(2)(v), by removing ``10 U.S.C. 2306b(i)(1)(E)'' and
adding ``10 U.S.C. 2306b(i)(3)(E)'' in its place;
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l. In paragraph (h)(2)(vi), by removing ``10 U.S.C. 2306b(i)(1)(F)''
and adding ``10 U.S.C. 2306b(i)(3)(F)'' in its place;
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m. In paragraph (h)(2)(vii), by removing ``10 U.S.C. 2306b(i)(1)(G)''
and adding ``10 U.S.C. 2306b(i)(3)(G)'' in its place;
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n. In paragraph (h)(3), by removing ``10 U.S.C. 2306b(i)(4)(A)'' and
adding ``10 U.S.C. 2306b(i)(5)(A)'' in its place;
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o. In paragraph (h)(4), by removing ``10 U.S.C. 2306b(i)(4)(B)'' and
adding ``10 U.S.C. 2306b(i)(5)(B)'' in its place;
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p. In paragraph (h)(5), by removing ``10 U.S.C. 2306b(i)(5)'' and
adding ``10 U.S.C. 2306b(i)(6)'' in its place;
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q. In paragraph (h)(6), by removing ``10 U.S.C. 2306b(i)(6)'' and
adding ``10 U.S.C. 2306b(i)(7)'' in its place;
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r. Removing paragraph (h)(7);
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s. Redesignating paragraph (h)(8) as (h)(7); and
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t. In newly redesignated paragraph (h)(7) introductory text, adding
``(10 U.S.C. 2306b(i)(4))'' after ``law's specific savings
requirement'' before the period.
The additions read as follows:
217.172 Multiyear contracts for supplies.
* * * * *
(e) * * *
(3) Cancellation provisions in the contract do not include
consideration of recurring manufacturing costs of the contractor
associated with the production of unfunded units to be delivered under
the contract;
(4) The contract provides that payments to the contractor under the
contract shall not be made in advance of incurred costs on funded
units; and
(5) The contract does not provide for a price adjustment based on a
failure to award a follow-on contract (section 8010 of Division C,
Title VIII, of the Consolidated and Further Continuing Appropriations
Act, 2015 (Pub. L. 113-235) and similar sections in subsequent DoD
appropriations acts).
* * * * *
[FR Doc. 2016-10823 Filed 5-9-16; 8:45 am]
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