[Federal Register Volume 81, Number 135 (Thursday, July 14, 2016)]
[Rules and Regulations]
[Pages 45854-45855]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-16247]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Part 8

[FAC 2005-89; FAR Case 2016-008; Item III; Docket No. 2016-0008; 
Sequence No 1]
RIN 9000-AN22


Federal Acquisition Regulation; FPI Blanket Waiver Threshold

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 amending the 
Federal Acquisition Regulation (FAR) to increase the blanket waiver 
threshold for small dollar-value purchases from Federal Prison 
Industries (FPI) by Federal agencies.

[[Page 45855]]


DATES: Effective: August 15, 2016.

FOR FURTHER INFORMATION CONTACT: Ms. Mahruba Uddowla, Procurement 
Analyst, at (703) 605-2868, 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-
89, FAR Case 2016-008.

SUPPLEMENTARY INFORMATION: 

I. Background

    Federal Prison Industries, Inc. (FPI), also known by its trade 
name, UNICOR, is governed by a six-member Board of Directors. The 
members are appointed by the President and, by statute, represent 
industry, labor, retailers and consumers, agriculture, the Secretary of 
Defense, and the Attorney General. On March 3, 2016, FPI's Board of 
Directors adopted a resolution increasing the blanket waiver threshold 
for small dollar-value purchases from FPI by Federal agencies from 
$3,000 to $3,500. The increase coincides with the increase in the 
micro-purchase threshold. This final rule amends the FAR to reflect the 
threshold increase from $3,000 to $3,500. No waiver is required to buy 
from an alternative source below $3,500. Customers may, however, still 
purchase from FPI at, or below, this threshold, if they so choose.

II. Publication of This Final Rule for Public Comment Is Not Required 
by Statute

    ``Publication of proposed regulations,'' 41 U.S.C. 1707, is the 
statute that applies to the publication of the FAR. Paragraph (a)(1) of 
the statute requires that a procurement policy, regulation, procedure, 
or form (including an amendment or modification thereof) must be 
published for public comment if it relates to the expenditure of 
appropriated funds, and has either a significant effect beyond the 
internal operating procedures of the agency issuing the policy, 
regulation, procedure, or form, or has a significant cost or 
administrative impact on contractors or offerors. This final rule is 
not required to be published for public comment, because it only 
updates the threshold, consistent with the inflationary adjustment to 
the micro-purchase threshold, in order to conform to the decision made 
by the FPI Board of Directors. Additionally, this final rule is 
expected to be of benefit to industry because it makes available 
certain procurements to which industry did not previously have access, 
i.e., listed items totaling $3,000.01 to $3,500.

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

IV. Regulatory Flexibility Act

    The Regulatory Flexibility Act does not apply to this rule because 
this final rule does not constitute a significant FAR revision within 
the meaning of FAR 1.501-1 and 41 U.S.C. 1707 does not require 
publication for public comment.

V. Paperwork Reduction Act

    The final 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 8

    Government procurement.

    Dated: June 30, 2016.
William Clark,
Director, Office of Government-wide Acquisition Policy, Office of 
Acquisition Policy, Office of Government-wide Policy.

    Therefore, DoD, GSA, and NASA amend 48 CFR part 8 as set forth 
below:

PART 8--REQUIRED SOURCES OF SUPPLIES AND SERVICE

0
1. The authority citation for 48 CFR part 8 continues to read as 
follows:

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


8.605   [Amended]

0
2. Amend section 8.605 by removing from paragraph (e) ``$3,000'' and 
adding ``$3,500'' in its place.

[FR Doc. 2016-16247 Filed 7-13-16; 8:45 am]
 BILLING CODE 6820-EP-P