[Federal Register Volume 81, Number 118 (Monday, June 20, 2016)]
[Proposed Rules]
[Pages 39882-39883]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-14413]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 2, 13, and 19

[FAR Case 2016-004; Docket No. 2016-0004, Sequence No. 1]
RIN 9000-AN18


Federal Acquisition Regulation: Acquisition Threshold for Special 
Emergency Procurement Authority

AGENCY: Department of Defense (DoD), General Services Administration 
(GSA), and the National Aeronautics and Space Administration (NASA).

ACTION: Proposed rule.

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SUMMARY: DoD, GSA, and NASA are proposing to amend the Federal 
Acquisition Regulation (FAR) to implement the National Defense 
Authorization Act for Fiscal Year 2016 to raise the simplified 
acquisition threshold for special emergency procurement authority.

DATES: Interested parties should submit written comments to the 
Regulatory Secretariat Division at one of the addresses shown below on 
or before August 19, 2016 to be considered in the formation of the 
final rule.

ADDRESSES: Submit comments in response to FAR case 2016-004 by any of 
the following methods:
     Regulations.gov: http://www.regulations.gov. Submit 
comments via the Federal eRulemaking portal by searching for ``FAR Case 
2016-004''. Select the link ``Comment Now'' that corresponds with ``FAR 
Case 2016-004.'' Follow the instructions provided on the screen. Please 
include your name, company name (if any), and ``FAR Case 2016-004'' on 
your attached document.
     Mail: General Services Administration, Regulatory 
Secretariat Division (MVCB), ATTN: Ms. Flowers, 1800 F Street NW., 2nd 
Floor, Washington, DC 20405.
    Instructions: Please submit comments only and cite FAR Case 2016-
004, in all correspondence related to this case. All comments received 
will be posted without change to http://www.regulations.gov, including 
any personal and/or business confidential 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. 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 FAR Case 2016-004.

SUPPLEMENTARY INFORMATION: 

I. Background

    DOD, GSA, and NASA are proposing to revise the FAR to implement 
section 816 of the National Defense Authorization Act for Fiscal Year 
2016 (Pub. L. 114-92). FAR 2.101, 13.003, 19.203, and 19.502-2 are 
being amended to increase the simplified acquisition threshold for 
special emergency procurement authority from $300,000 to $750,000 
(within the United States) and from $1 million to $1.5 million (outside 
the United States). The threshold is used for 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.

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

[[Page 39883]]

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 proposed rule is not a major rule under 5 
U.S.C. 804.

III. Regulatory Flexibility Act

    DoD, GSA, and NASA do not expect this proposed 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 raises the simplified acquisition threshold for 
special emergency procurement authority, an arena in which a smaller 
percentage of small businesses participate, as compared to larger 
businesses. However, an initial regulatory flexibility analysis (IRFA) 
has been prepared consistent with 5 U.S.C. 603. The analysis is 
summarized as follows:

    This proposed rule implements section 816 of the National 
Authorization Act for Fiscal Year (FY) 2016 Public Law 114-92. 
Therefore, the FAR is revised to raise the simplified acquisition 
thresholds for special emergency procurement authority.
    The objective of this proposed rule is to increase the 
simplified acquisition thresholds for special emergency procurement 
authority from $300,000 to $750,000 (within the United States) and 
$1 million to $1.5 million (outside the United States) for 
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.
    DoD, GSA, and NASA do not expect this proposed 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 raises the simplified 
acquisition threshold for special emergency procurements, an arena 
in which a smaller percentage of small businesses participate, as 
compared to larger businesses. Between $300,000 and the increase to 
$750,000, 188 total awards were made of which 45 or 24 percent were 
to small businesses in FY 2014, and 219 total awards were made of 
which 66 or 30 percent were to small businesses in FY 2015. Between 
$1 million and the increase to $1.5 million, 56 total awards were 
made of which 10 or 17 percent were small businesses in FY 2014, and 
29 total awards were made of which 9 or 31 percent were to small 
businesses in FY 2015. The proposed rule imposes no reporting, 
recordkeeping, or other information collection requirements.
    The rule does not duplicate, overlap, or conflict with any other 
Federal rules.
    There are no known significant alternatives to the rule. The 
impact of this proposed rule on small business is not expected to be 
significant.

    The Regulatory Secretariat Division has submitted a copy of the 
IRFA to the Chief Counsel for Advocacy of the Small Business 
Administration. A copy of the IRFA may be obtained from the Regulatory 
Secretariat Division. DoD, GSA, and NASA invite comments from small 
business concerns and other interested parties on the expected impact 
of this proposed rule on small entities.
    DoD, GSA, and NASA will also consider comments from small entities 
concerning the existing regulations in subparts affected by the 
proposed rule consistent with 5 U.S.C. 610. Interested parties must 
submit such comments separately and should cite 5 U.S.C. 610 (FAR Case 
2016-004), in correspondence.

IV. Paperwork Reduction Act

    The proposed 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, 13, and 19

    Government procurement.

    Dated: June 14, 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 proposing to amend 48 CFR parts 
2, 13, and 19, as set forth below:

0
1. The authority citation for 48 CFR parts 2, 13, 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 WORDS AND TERMS


2.101   [Amended]

0
2. Amend the definition ``Simplified acquisition threshold'' in 
paragraph (b) of section 2.101 by:
0
a. Removing from paragraph (1) ``$300,000'' and adding in its place 
``$750,000''; and
0
b. Removing from paragraph (2) ``$1 million'' and adding in its place 
``$1.5 million''.

PART 13--SIMPLIFIED ACQUISITION PROCEDURES


13.003   [Amended]

0
3. Amend section 13.003 by removing from paragraph (b)(1) ``$300,000'' 
and adding ``$750,00'' in its place.

PART 19--SMALL BUSINESS PROGRAMS


19.203   [Amended]

0
4. Amend section 19.203 by removing from paragraph (b) ``$300,000'' and 
adding ``$750,000'' in its place.


19.502-2   [Amended]

0
5. Amend section 19.502-2 by removing from paragraph (a) ``$300,000'' 
and adding ``$750,000'' in its place.
[FR Doc. 2016-14413 Filed 6-17-16; 8:45 am]
 BILLING CODE 6820-EP-P