[Federal Register Volume 81, Number 94 (Monday, May 16, 2016)]
[Rules and Regulations]
[Pages 30438-30439]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-10999]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 2, 4, 13, 18, and 19

[FAC 2005-88; FAR Case 2015-020; Item II; Docket No. 2015-0020; 
Sequence No. 1]
RIN 9000-AN09


Federal Acquisition Regulation: Simplified Acquisition Threshold 
for Overseas Acquisitions in Support of Humanitarian or Peacekeeping 
Operations

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 are issuing a final rule to amend the 
Federal Acquisition Regulation (FAR) to implement a section of U.S. 
Code which establishes a higher simplified acquisition threshold for 
overseas acquisitions in support of humanitarian or peacekeeping 
operations.

DATES: Effective June 15, 2016.

FOR FURTHER INFORMATION CONTACT: Ms. Camara Francis, Procurement 
Analyst, at 202-550-0935, for clarification of content. For information 
pertaining to status or publication schedules, contact the Regulatory 
Secretariat Division at 202-501-4755. Please cite FAC 2005-88, FAR Case 
2015-020.

SUPPLEMENTARY INFORMATION:

I. Background

    DoD, GSA, and NASA published a proposed rule in the Federal 
Register at 80 FR 60832 on October 8, 2015, soliciting public comments 
on this rule, drafted to implement 41 U.S.C. 153, which establishes a 
higher simplified acquisition threshold (SAT) for overseas acquisitions 
in support of humanitarian or peacekeeping operations. FAR Case 2003-
022 was published in the Federal Register as an interim rule at 69 FR 
8312, on February 23, 2004, and as a final rule published at 69 FR 
76350, on December 20, 2004. Drafters of that rule had revised the 
definition for SAT contained at FAR 2.101: Definitions, but had also 
inadvertently deleted the reference to overseas humanitarian or 
peacekeeping missions and the requisite doubling of the SAT in those 
circumstances. The civilian statute at the time was numbered 41 U.S.C. 
259(d)(1); it is now at 41 U.S.C. 153. The purpose of this rule is to 
reinstate the increased SAT for overseas acquisitions for peacekeeping 
or humanitarian operations. Conforming changes are made in FAR parts 4, 
13, 18, and 19.
    One public comment was received.

II. Discussion and Analysis

    The Civilian Agency Acquisition Council and the Defense Acquisition 
Regulations Council (the Councils) reviewed the public comment in 
development of the final rule.

A. Summary of Significant Changes

    There were no changes made to the rule as a result of the comment 
received. There were no comments on the Initial Regulatory Flexibility 
Analysis.

B. Analysis of Public Comments

    Comment: One respondent stated that the FAR definition of 
simplified acquisition needed to clarify that construction is included 
as part of supplies or services in a contingency environment, noting 
that construction projects are very important to contingency 
operations. The respondent indicated that contracting professionals 
generally understand that the FAR covers two broad categories of 
acquisition: Supplies and services. Services include everything that is 
not a commodity (supplies), and is therefore inclusive of construction, 
which is a type of service.
    Response: The Councils appreciate the comment and acknowledge the 
broad understanding that services are inclusive of construction 
services.

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, GSA and NASA have prepared a Final Regulatory Flexibility 
Analysis (FRFA) consistent with the Regulatory

[[Page 30439]]

Flexibility Act 5 U.S.C. 601, et seq. The FRFA is summarized as 
follows:

    The final rule, in order to implement 41 U.S.C. 153, sets forth 
a higher simplified acquisition threshold (SAT) for overseas 
acquisitions in support of humanitarian or peacekeeping operations.
    There were no significant issues raised by the public in 
response to the Initial Regulatory Flexibility Analysis provided in 
the proposed rule.
    The rule applies only to overseas acquisitions in support of 
humanitarian or peacekeeping operations. In Fiscal Year 2014, 1545 
awards were made in support of humanitarian or peacekeeping 
operations, and 585 (37.86 percent) of those were to small 
businesses. Additionally, only 81 (5.24 percent) of the awards were 
valued between the former threshold of $150,000 and the new 
threshold of $300,000. Therefore, it is not anticipated that this 
rule will have a significant economic impact on small businesses.

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

V. Paperwork Reduction Act

    This 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 2, 4, 13, 18, and 19

    Government procurement.

    Dated: May 5, 2016.
William Clark,
Director, Office of Government-wide Acquisition Policy, Office of 
Acquisition Policy, Office of Government-wide Policy.

    Therefore, DoD, GSA, and NASA are amending 48 CFR parts 2, 4, 13, 
18, and 19 as set forth below:

0
1. The authority citation for FAR parts 2, 4, 13, 18, and 19 continues 
to read as follows:

    Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 51 
U.S.C. 20113.

PART 2--DEFINITIONS OF WORDS AND TERMS

0
2. Amend section 2.101 by revising the definition ``Simplified 
acquisition threshold'' to read as follows:


2.101  Definitions.

* * * * *
    Simplified acquisition threshold means $150,000, except for--
    (1) Acquisitions of supplies or services that, as determined by the 
head of the agency, are to be used to support a contingency operation 
or to facilitate defense against or recovery from nuclear, biological, 
chemical, or radiological attack (41 U.S.C. 1903), the term means--
    (i) $300,000 for any contract to be awarded and performed, or 
purchase to be made, inside the United States; and
    (ii) $1 million for any contract to be awarded and performed, or 
purchase to be made, outside the United States; and
    (2) Acquisitions of supplies or services that, as determined by the 
head of the agency, are to be used to support a humanitarian or 
peacekeeping operation (10 U.S.C. 2302), the term means $300,000 for 
any contract to be awarded and performed, or purchase to be made, 
outside the United States.
* * * * *

PART 4--ADMINISTRATIVE MATTERS


4.1102  [Amended]

0
3. Amend section 4.1102 by removing from paragraph (a)(3)(i) 
``peacekeeping operations as defined in 10 U.S.C. 2302(7)'' and adding 
``peacekeeping operations as defined in 10 U.S.C. 2302(8)'' in its 
place.

PART 13--SIMPLIFIED ACQUISITION PROCEDURES


13.003  [Amended]

0
4. Amend section 13.003 by removing from paragraph (b)(1) ``described 
in paragraph (1)'' and adding ``described in paragraph (1)(i)'' in its 
place.

PART 18--EMERGENCY ACQUISITIONS


18.204  [Redesignated as 18.205]

0
5. Redesignate section 18.204 as section 18.205.


0
6. Add a new section 18.204 to read as follows:


18.204  Humanitarian or peacekeeping operation.

    (a) A humanitarian or peacekeeping operation is defined in 2.101.
    (b) Simplified acquisition threshold. The threshold increases when 
the head of the agency determines the supplies or services are to be 
used to support a humanitarian or peacekeeping operation. (See 2.101.)

PART 19--SMALL BUSINESS PROGRAMS


19.203  [Amended]

0
7. Amend section 19.203 by removing from paragraph (b) ``described in 
paragraph (1)'' and adding ``described in paragraph (1)(i)'' in its 
place.


19.502-2  [Amended]

0
8. Amend section 19.502-2 by removing from paragraph (a) ``paragraph 
(1) of the Simplified Acquisition Threshold'' and adding ``paragraph 
(1)(i) of the simplified acquisition threshold'' in its place.

[FR Doc. 2016-10999 Filed 5-13-16; 8:45 am]
BILLING CODE 6820-EP-P