[Federal Register Volume 82, Number 9 (Friday, January 13, 2017)]
[Rules and Regulations]
[Pages 4716-4717]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-31496]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 2, 13, and 19

[FAC 2005-95; FAR Case 2016-004; Item II; 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 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 implement a section of the 
National Defense Authorization Act for Fiscal Year 2016 to raise the 
simplified acquisition threshold for special emergency procurement 
authority.

DATES: Effective: January 13, 2017.

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 FAC 2005-95, FAR Case 
2016-004.

SUPPLEMENTARY INFORMATION: 

I. Background

    DOD, GSA, and NASA published a proposed rule in the Federal 
Register at 81 FR 39882 on June 20, 2016, 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 revised 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 rule would apply to 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. 
Two respondents provided comments on the proposed rule.

II. Discussion and Analysis

    The Civilian Agency Acquisition Council and the Defense Acquisition 
Regulations Council (the Councils) reviewed the comments in the 
development of the final rule. A discussion of the comments is 
provided.

A. Summary of Changes

    There was no change made to the rule as a result of the comments 
received. There were no comments on the Initial Regulatory Flexibility 
Analysis.

B. Analysis of Public Comments

1. Small Business
    Comment: The respondent identified that the proposed rule did not 
recognize that the automatic set-asides for small business would apply 
up to the threshold in paragraph (1)(ii) of the simplified acquisition 
threshold definition at FAR 2.101 in the case of an emergency 
acquisition in an outlying area as defined in FAR 2.101.
    Response: The proposed rule did not address the issue of the 
outlying areas. While the comment is out of scope of this rule, the 
Councils will take the comment under consideration.
2. Increased Simplified Acquisition Threshold
    Comment: The respondent opposes the increase in the special 
emergency procurement threshold, because increases to the acquisition 
threshold threaten to compromise the integrity of the Berry amendment, 
outsource critical portions of the domestic industrial base, and hurt 
American manufacturers.
    Response: The Councils appreciate the comment and acknowledge the 
concern; however, the increase in the special emergency procurement 
threshold is statutory in nature.

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, GSA, and NASA have prepared a Final Regulatory Flexibility 
Analysis (FRFA) consistent with the Regulatory Flexibility Act, 5 
U.S.C. 601, et seq. The FRFA is summarized as follows:

    This final 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 final 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.
    The Civilian Agency Acquisition Council and the Defense 
Acquisition Regulations Council (the Councils) reviewed the public 
comments in the development of the final rule.
    There was no change made to the rule as a result of the comments 
received. There were no comments on the Regulatory Flexibility 
Analysis.
    DoD, GSA, and NASA do not expect this final 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

[[Page 4717]]

2015. Between $1 million and the increase to $1.5 million, 56 total 
awards were made of which 10 or 17 percent were to 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 final rule imposes no reporting, recordkeeping, or other 
information collection requirements.
    There are no known significant alternatives to the rule. The 
impact of this final rule on small business is not expected to be 
significant.

    Interested parties may obtain a copy of the FRFA from the 
Regulatory Secretariat. The Regulatory Secretariat Division has 
submitted a copy of the FRFA to the Chief Counsel for Advocacy of the 
Small Business Administration.

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 Parts 2, 13, and 19

    Government procurement.

    Dated: December 21, 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 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 section 2.101, in paragraph (b)(2), in the definition 
``Simplified acquisition threshold'' by removing from paragraphs (1)(i) 
and (ii) ``$300,000'' and ``$1 million'' and adding ``$750,000'' and 
``$1.5 million'' in their places, respectively.

PART 13--SIMPLIFIED ACQUISITION PROCEDURES


13.003  [Amended]

0
3. Amend section 13.003 by removing from paragraph (b)(1) ``$300,000'' 
and adding ``$750,000'' 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. 2016-31496 Filed 1-12-17; 8:45 am]
BILLING CODE 6820-EP-P