[Federal Register Volume 81, Number 190 (Friday, September 30, 2016)]
[Rules and Regulations]
[Pages 67773-67774]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-23201]





48 CFR Part 17

[FAC 2005-91; FAR Case 2016-006; Item VII; Docket No. 2016-0006, 
Sequence No. 1]
RIN 9000-AN24

Federal Acquisition Regulation; Amendment Relating to Multi-Year 
Contract Authority for Acquisition of Property

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

ACTION: Final rule.


SUMMARY: DoD, GSA, and NASA are issuing a final rule amending the 
Federal Acquisition Regulation (FAR) to implement a section of the 
National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2016, to 
require that ``significant'' savings would be achieved by entering into 
a multi-year contract.

DATES: Effective: October 31, 2016.

FOR FURTHER INFORMATION CONTACT: Mr. Michael O. Jackson, Procurement 
Analyst, at 202-208-4949, for clarification of content. For information 
pertaining to status or publication schedules, contact the Regulatory 
Secretariat at 202-501-4755. Please cite FAC 2005-91, FAR Case 2016-


I. Background

    DoD, GSA, and NASA are amending FAR subpart 17.1 to implement 
section 811 of the NDAA for FY 2016 (Pub. L. 114-92). Section 811 
amended subsection (a)(1) of 10 U.S.C. 2306b by striking 
``substantial'' and inserting ``significant.'' This rule makes 
conforming changes at FAR 17.105-1(b)(1) to state that the head of an 
agency may enter into a multi-year contract for supplies, if the use of 
such a contract will result in significant savings of the total 
estimated costs of carrying out the program through annual contracts. 
This change applies to the DoD, NASA, and the Coast Guard.

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 
which applies to the publication of the Federal

[[Page 67774]]

Acquisition Regulation. 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 addresses an internal decision by the head of agency to 
enter into a multi-year contract for supplies if certain criteria are 
met. These requirements affect only the internal operating procedures 
of the Government.

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

    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 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 Subject in 48 CFR Part 17

    Government procurement.

    Dated: September 19, 2016.
William F. 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 17 as set forth 


1. The authority citation for 48 CFR part 17 continues to read as 

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

17.105-1   [Amended]

2. Amend section 17.105-1 by removing from paragraph (b)(1) 
``substantial'' and adding ``significant'' in its place.

[FR Doc. 2016-23201 Filed 9-29-16; 8:45 am]