[Federal Register Volume 81, Number 126 (Thursday, June 30, 2016)]
[Proposed Rules]
[Pages 42608-42609]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-15257]


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

DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Part 252

[Docket DARS-2016-0020]
RIN 0750-AI96


Defense Federal Acquisition Regulation Supplement: Administrative 
Cost To Issue and Administer a Contract (DFARS Case 2016-D020)

AGENCY: Defense Acquisition Regulations System, Department of Defense 
(DoD).

ACTION: Proposed rule.

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

SUMMARY: DoD is proposing to amend the Defense Federal Acquisition 
Regulation Supplement (DFARS) to revise the estimated administrative 
cost to award and administer a contract, for the purpose of evaluating 
bids for multiple awards.

DATES: Comments on the proposed rule should be submitted in writing to 
the address shown below on or before August 29, 2016, to be considered 
in the formation of a final rule.

ADDRESSES: Submit comments identified by DFARS Case 2016-D020, using 
any of the following methods:
    [cir] Regulations.gov: http://www.regulations.gov. Submit comments 
via the Federal eRulemaking portal by entering ``DFARS Case 2016-D020'' 
under the heading ``Enter keyword or ID'' and selecting ``Search.'' 
Select the link ``Submit a Comment'' that corresponds with ``DFARS Case 
2016-D020.'' Follow the instructions provided at the ``Submit a 
Comment'' screen. Please include your name, company name (if any), and 
``DFARS Case 2016-D020'' on your attached document.
    [cir] Email: [email protected]. Include DFARS Case 2016-D020 in 
the subject line of the message.
    [cir] Fax: 571-372-6094.
    [cir] Mail: Defense Acquisition Regulations System, Attn: Mr. 
Christopher Stiller, OUSD (AT&L) DPAP/DARS, Room 3B941, 3060 Defense 
Pentagon, Washington, DC 20301-3060.

[[Page 42609]]

    Comments received generally will be posted without change to http://www.regulations.gov, including any personal 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: Mr. Christopher Stiller, telephone 
571-372-6176.

SUPPLEMENTARY INFORMATION: 

I. Background

    DoD is proposing to revise the DFARS to implement a policy that 
addresses the Government's cost to award and administer a contract, for 
the purpose of evaluating bids for multiple awards. The provision at 
DFARS 252.247-7008, Evaluation of Bids--Basic, and its Alternate I, 
reflects that $500 is the administrative cost to the Government for 
issuing and administering contracts. Based on increase in the Consumer 
Price Index since 1990, an upward adjustment of $500 in the provision 
to $1,000 would be a realistic reflection of the actual cost to the 
Government to issue and administer a contract. This increase conforms 
to an equivalent adjustment proposed under FAR Case 2016-003 published 
in the Federal Register on May 12, 2016 (81 FR 29514).

II. Discussion and Analysis

    Amendments to DFARS provision 252.247-7008, Evaluation of Bids--
Basic, and its Alternate I, are proposed by this rule. A monetary 
adjustment is proposed to increase, from $500 to $1,000, the 
administrative cost to the Government for issuing and administering 
each contract to be awarded under a solicitation for the purpose of 
evaluating bids for multiple awards.

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 does 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. 
However, an initial regulatory flexibility analysis has been performed 
and is summarized as follows:
    The clause at DFARS 252.247-7008, Evaluation of Bids, reflects that 
$500 is the administrative cost to the Government for issuing and 
administering contracts. The rule is necessary to reestablish a more 
realistic estimate of the cost to award and administer a contract, for 
the purpose of evaluating bids for multiple awards. The estimated 
administrative cost to award and administer a contract has not changed 
since 1990.
    The objective of this rule is to revise DFARS 252.247-7008, 
Evaluation of Bids, to include an inflation adjustment based on 
increase in the Consumer Price Index since 1990. See http://data.bls.gov/cgi-bin/cpicalc.pldata. The adjustment will change the 
estimated cost to award and administer a contract from $500 to $1,000.
    According to the Federal Procurement Data System, in fiscal year 
2015, the Federal Government made approximately 2,019 definitive 
contract awards to small businesses using sealed bidding procedures and 
103 indefinite delivery contract awards to small businesses using 
sealed bidding procedures, 12 of which were multiple awards. Thus, DoD 
does not expect this rule to have an economic impact on a substantial 
number of small entities. Additionally, the rule does not place any new 
requirements on small entities.
    The rule does not duplicate, overlap, or conflict with any other 
Federal rules.
    There are no significant alternatives to the rule which accomplish 
the stated objectives.
    DoD invites comments from small business concerns and other 
interested parties on the expected impact of this rule on small 
entities.
    DoD will also consider comments from small entities concerning the 
existing regulations in subparts affected by this rule in accordance 
with 5 U.S.C. 610. Interested parties must submit such comments 
separately and should cite 5 U.S.C. 610 (DFARS Case 2016-D020), in 
correspondence.

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 252

    Government procurement.

Jennifer L. Hawes,
Editor, Defense Acquisition Regulations System.

    Therefore, 48 CFR part 252 is proposed to be amended as follows:

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

0
1. The authority citation for part 252 continues to read as follows:

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


252.247-7009  [Amended]

0
2. Amend section 252.247-7008 by--
0
a. Removing the provision date ``(APR 2014)'' and adding ``(DATE)'' in 
its place;
0
b. In paragraph (b)(1), removing ``$500'' and adding ``$1,000'' in its 
place; and
0
c. In Alternate I:
0
i. Removing the clause date ``(APR 2014)'' and adding ``(DATE)'' in its 
place; and
0
ii. In paragraph (b)(1), removing ``$500'' and adding ``$1,000'' in its 
place.

[FR Doc. 2016-15257 Filed 6-29-16; 8:45 am]
BILLING CODE 5001-06-P