[Federal Register Volume 81, Number 126 (Thursday, June 30, 2016)]
[Rules and Regulations]
[Pages 42562-42563]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-15249]


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DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Part 225

[Docket DARS-2016-0007]
RIN 0750-AI88


Defense Federal Acquisition Regulation Supplement: Treatment of 
Interagency and State and Local Purchases (DFARS Case 2016-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 2016 that is 
entitled ``Treatment of Interagency and State and Local Purchases.'' 
This section provides that contracts executed by DoD as a result of the 
transfer of contracts from the General Services Administration or for 
which DoD serves as an item manager for products on behalf of the 
General Services Administration shall not be subject to certain 
domestic source restrictions, to the extent that such contracts are for 
the purchase of products by other Federal agencies or State or local 
governments.

DATES: Effective June 30, 2016.

FOR FURTHER INFORMATION CONTACT: Ms. Amy G. Williams, telephone 571-
372-6106.

SUPPLEMENTARY INFORMATION:

I. Background

    DoD published a proposed rule in the Federal Register at 81 FR 
17053 on March 25, 2016, to implement section 897 of the National 
Defense Authorization Act for Fiscal Year 2016 (Pub. L. 114-92). 
Section 897 provides that contracts executed by DoD as a result of the 
transfer of contracts from the General Services Administration or for 
which DoD serves as an item manager for products on behalf of the 
General Services Administration shall not be subject to the 
requirements under 10 U.S.C. chapter 148 (National Defense Technology 
and Industrial Base, Defense Investment, and Defense Conversion), to 
the extent that such contracts are for the purchase of products by 
other Federal agencies or State or local governments. One respondent 
submitted public comments in response to the proposed rule.

II. Discussion and Analysis

    There are no changes from the proposed rule made in the final rule. 
The one respondent that submitted a comment fully supported the 
proposed rule.

III. 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.

IV. 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.

V. 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:
    This rule implements section 897 of the National Defense 
Authorization Act for Fiscal Year 2016. The objective of this rule is 
to eliminate the domestic source restrictions of 10 U.S.C. chapter 148 
when contracts executed by DoD as a result of the transfer of contracts 
from the General Services Administration or for which DoD serves as an 
item manager for products on behalf of the General Services 
Administration, to the extent that such contracts are for the purchase 
of products by other Federal agencies or State or local governments.
    There were no significant issues raised by the public in response 
to the initial regulatory flexibility analysis.
    DoD does not anticipate frequent application of this rule. The rule 
removes the domestic source restriction for the specified items in the 
specified circumstances. In the rare instance in which the 
circumstances of the statute apply, it is possible that an item could 
be acquired from a foreign source, rather than a domestic source, which 
could potentially be a small business. It is not possible to estimate 
the number of small entities that may be affected, because it is 
unknown the extent to which the given circumstances may occur.
    There are no projected reporting, recordkeeping, or other 
compliance requirements.
    DoD has not identified any alternatives that would minimize any 
economic impact on small entities and still meet the requirements of 
the statute.

VI. 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 225

    Government procurement.

Jennifer L. Hawes,
Editor, Defense Acquisition Regulations System.
    Therefore, 48 CFR part 225 is amended as follows:

PART 225--FOREIGN ACQUISITION

0
1. The authority citation for 48 CFR part 225 continues to read as 
follows:

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


0
2. Amend section 225.7002-2 by adding paragraph (o) to read as follows:


225.7002-2  Exceptions.

* * * * *
    (o) Acquisitions that are interagency, State, or local purchases 
that are executed by DoD as a result of the transfer of contracts from 
the General Services Administration or for which DoD serves as an item 
manager for products on behalf of the General Services Administration. 
According to section 897 of the National Defense

[[Page 42563]]

Authorization Act for Fiscal Year 2016 (Pub. L. 114-92), such contracts 
shall not be subject to requirements under chapter 148 of title 10, 
United States Code (including 10 U.S.C. 2533a), to the extent such 
contracts are for purchases of products by other Federal agencies or 
State or local governments.

[FR Doc. 2016-15249 Filed 6-29-16; 8:45 am]
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