[Federal Register Volume 82, Number 163 (Thursday, August 24, 2017)]
[Proposed Rules]
[Pages 40261-40268]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-16889]



[[Page 40261]]

Vol. 82

Thursday,

No. 163

August 24, 2017

Part V





 Department of Defense





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Semiannual Regulatory Agenda

  Federal Register / Vol. 82 , No. 163 / Thursday, August 24, 2017 / 
Unified Agenda  

[[Page 40262]]


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DEPARTMENT OF DEFENSE

32 CFR Chs. I, V, VI, and VII

33 CFR Ch. II

36 CFR Ch. III

48 CFR Ch. II


Improving Government Regulations; Unified Agenda of Federal 
Regulatory and Deregulatory Actions

AGENCY: Department of Defense (DoD).

ACTION: Semiannual regulatory agenda.

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SUMMARY: The Department of Defense (DoD) is publishing this semiannual 
agenda of regulatory documents, including those that are procurement-
related, for public information and comments under Executive Order 
12866 ``Regulatory Planning and Review.'' This agenda incorporates the 
objective and criteria, when applicable, of the regulatory reform 
program under the Executive Order and other regulatory guidance. It 
contains DoD regulations initiated by DoD Components that may have 
economic and environmental impact on State, local, or tribal interests 
under the criteria of Executive Order 12866. Although most DoD 
regulations listed in the agenda are of limited public impact, their 
nature may be of public interest and, therefore, are published to 
provide notice of rulemaking and an opportunity for public 
participation in the internal DoD rulemaking process. Members of the 
public may submit comments on individual proposed and interim final 
rulemakings at www.regulations.gov during the comment period that 
follows publication in the Federal Register.
    This agenda updates the report published on December 23, 2016, and 
includes regulations expected to be issued and under review over the 
next 12 months. The next agenda is scheduled to be published in the 
fall of 2017.
    The complete Unified Agenda will be available online at 
www.reginfo.gov.
    Because publication in the Federal Register is mandated for the 
regulatory flexibility agendas required by the Regulatory Flexibility 
Act (5 U.S.C. 602), the Department of Defense's printed agenda entries 
include only:
    (1) Rules that are in the Agency's regulatory flexibility agenda, 
in accordance with the Regulatory Flexibility Act, because they are 
likely to have a significant economic impact on a substantial number of 
small entities; and
    (2) any rules that the Agency has identified for periodic review 
under section 610 of the Regulatory Flexibility Act.
    Printing of these entries is limited to fields that contain 
information required by the Regulatory Flexibility Act's agenda 
requirements. Additional information on these entries is in the Unified 
Agenda available online.

FOR FURTHER INFORMATION CONTACT: For information concerning the overall 
DoD regulatory improvement program and for general semiannual agenda 
information, contact Ms. Patricia Toppings, telephone 571-372-0485, or 
write to Office of the Deputy Chief Management Officer, Directorate for 
Oversight and Compliance, Regulatory and Advisory Committee Division, 
9010 Defense Pentagon, Washington, DC 20301-9010, or email: 
[email protected].
    For questions of a legal nature concerning the agenda and its 
statutory requirements or obligations, write to Office of the General 
Counsel, 1600 Defense Pentagon, Washington, DC 20301-1600, or call 703-
697-2714.
    For general information on Office of the Secretary regulations, 
other than those which are procurement-related, contact Ms. Morgan 
Park, telephone 571-372-0489, or write to Office of the Deputy Chief 
Management Officer, Directorate of Oversight and Compliance, Regulatory 
and Advisory Committee Division, 9010 Defense Pentagon, Washington, DC 
20301-9010, or email: [email protected].
    For general information on Office of the Secretary regulations 
which are procurement-related, contact Ms. Jennifer Hawes, telephone 
571-372-6115, or write to Office of the Under Secretary of Defense for 
Acquisition, Technology, and Logistics, Defense Procurement and 
Acquisition Policy, Defense Acquisition Regulations System, Room 3B941, 
3060 Defense Pentagon, Washington, DC 20301-3060, or email: 
[email protected].
    For general information on Department of the Army regulations, 
contact Ms. Brenda Bowen, telephone 703-428-6173, or write to the U.S. 
Army Records Management and Declassification Agency, ATTN: AAHS-RDR-C, 
Casey Building, Room 102, 7701 Telegraph Road, Alexandria, Virginia 
22315-3860, or email: [email protected].
    For general information on the U.S. Army Corps of Engineers 
regulations, contact Mr. Chip Smith, telephone 703-693-3644, or write 
to Office of the Deputy Assistant Secretary of the Army (Policy and 
Legislation), 108 Army Pentagon, Room 2E569, Washington, DC 20310-0108, 
or email: [email protected].
    For general information on Department of the Navy regulations, 
contact LCDR Audrey Nichols, telephone 703-614-7408, or write to 
Department of the Navy, Office of the Judge Advocate General, 
Administrative Law Division (Code 13), Washington Navy Yard, 1322 
Patterson Avenue SE., Suite 3000, Washington, DC 20374-5066, or email: 
[email protected].
    For general information on Department of the Air Force regulations, 
contact Bao-Anh Trinh, telephone 703-614-8500, or write the Office of 
the Secretary of the Air Force, Chief, Information Dominance/Chief 
Information Officer (SAF CIO/A6), 1800 Air Force Pentagon, Washington, 
DC 20330-1800, or email: [email protected].
    For specific agenda items, contact the appropriate individual 
indicated in each DoD Component report.

SUPPLEMENTARY INFORMATION: This edition of the Unified Agenda of 
Federal Regulatory and Deregulatory Actions is composed of the 
regulatory status reports, including procurement-related regulatory 
status reports, from the Office of the Secretary of Defense (OSD) and 
the Departments of the Army and Navy. Included also is the regulatory 
status report from the U.S. Army Corps of Engineers, whose civil works 
functions fall under the reporting requirements of Executive Order 
12866 and involve water resource projects and regulation of activities 
in waters of the United States.
    In addition, this agenda, although published under the reporting 
requirements of Executive Order 12866, continues to be the DoD single-
source reporting vehicle, which identifies regulations that are 
currently applicable under the various regulatory reform programs in 
progress. Therefore, DoD Components will identify those rules which 
come under the criteria of the:
    a. Regulatory Flexibility Act;
    b. Paperwork Reduction Act of 1995;
    c. Unfunded Mandates Reform Act of 1995.
    Those DoD regulations, which are directly applicable under these 
statutes, will be identified in the agenda and their action status 
indicated. Generally, the regulatory status reports in this agenda will 
contain five sections: (1) Prerule stage; (2) proposed rule stage; (3) 
final rule stage; (4) completed actions; and (5) long-term actions. 
Where certain regulatory actions indicate that small entities are 
affected, the effect on these entities may not necessarily have 
significant economic impact on a

[[Page 40263]]

substantial number of these entities as defined in the Regulatory 
Flexibility Act (5 U.S.C. 601(6)).
    Although not a regulatory agency, DoD will continue to participate 
in regulatory initiatives designed to reduce economic costs and 
unnecessary burdens upon the public. Comments and recommendations are 
invited on the rules reported and should be addressed to the DoD 
Component representatives identified in the regulatory status reports. 
Although sensitive to the needs of the public, as well as regulatory 
reform, DoD reserves the right to exercise the exemptions and 
flexibility permitted in its rulemaking process in order to proceed 
with its overall defense-oriented mission. The publishing of this 
agenda does not waive the applicability of the military affairs 
exemption in section 553 of title 5 U.S.C. and section 3 of Executive 
Order 12866.

David Tillotson III,
Acting Deputy Chief Management Officer.

      Defense Acquisition Regulations Council--Proposed Rule Stage
------------------------------------------------------------------------
                                                           Regulation
       Sequence No.                    Title             Identifier No.
------------------------------------------------------------------------
61........................  Only One Offer (DFARS Case         0750-AJ19
                             2017-D009).
62........................  Inapplicability of Certain         0750-AJ21
                             Defense-Unique Laws to
                             Commercial Items (DFARS
                             Case 2017-D010).
63........................  Restrictions on                    0750-AJ22
                             Acquisitions From Foreign
                             Sources (DFARS Case 2017-
                             D011).
64........................  Modification to Pilot              0750-AJ24
                             Program for Streamlining
                             Awards for Innovative
                             Technology Projects
                             (DFARS Case 2017-D015).
65........................  Performance-Based Payments         0750-AJ28
                             (DFARS Case 2017-D019).
66........................  Acquisition of Commercial          0750-AJ29
                             Items (DFARS Case 2017-
                             D020).
67........................  Service Contract Reporting         0750-AJ40
                             (DFARS Case 2017-D035).
68........................  Past Performance                   0750-AJ41
                             Information Retrieval
                             System-Statistical
                             Reporting (DFARS Case
                             2017-D003).
69........................  Consolidation of Contract          0750-AJ43
                             Requirements (DFARS Case
                             2017-D004).
70........................  Electronic Submission and          0750-AJ44
                             Processing of Payment
                             Requests and Receiving
                             Reports (DFARS Case 2016-
                             D032).
71........................  Antiterrorism Requirements         0750-AJ45
                             for Contractors (DFARS
                             Case 2017-D034).
------------------------------------------------------------------------


        Defense Acquisition Regulations Council--Final Rule Stage
------------------------------------------------------------------------
                                                           Regulation
       Sequence No.                    Title             Identifier No.
------------------------------------------------------------------------
72........................  Amendments Related to              0750-AI92
                             Sources of Electronic
                             Parts (DFARS Case 2016-
                             D013).
73........................  Competition for Religious-         0750-AJ06
                             Related Services
                             Contracts (DFARS Case
                             2016-D015).
74........................  Use of the Government              0750-AJ11
                             Property Clause (DFARS
                             Case 2015-D035).
------------------------------------------------------------------------


   Office of Assistant Secretary for Health Affairs--Final Rule Stage
------------------------------------------------------------------------
                                                           Regulation
       Sequence No.                    Title             Identifier No.
------------------------------------------------------------------------
75........................  TRICARE; Reimbursement of          0720-AB47
                             Long Term Care Hospitals
                             and Inpatient
                             Rehabilitation Facilities.
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DEPARTMENT OF DEFENSE (DOD)

Defense Acquisition Regulations Council (DARC)

Proposed Rule Stage

61.  Only One Offer (DFARS Case 2017-D009)

    Legal Authority: 41 U.S.C. 1303; Pub. L. 114-328, sec. 822
    Abstract: DoD is proposing to amend the Defense Federal Acquisition 
Regulation Supplement (DFARS) to implement section 822 of the National 
Defense Authorization Act for Fiscal Year 2017. This rule is necessary 
to conform with the changes being made to the Federal Acquisition 
Regulation (FAR), under FAR Case 2017-006, which amends the standards 
for adequate price competition for DoD, NASA, and the Coast Guard. The 
rule requires that cost or pricing data be certified when only one 
offer is received in response to a competitive solicitation, unless 
another exception to the requirement for certified cost or pricing data 
applies.
    This rule will increase costs to offerors, including small 
entities, if only one offer is received in response to a competitive 
solicitation, unless another exception to certified cost or pricing 
data applies (such as commercial item acquisitions or acquisitions 
valued at less than $750,000).
    Timetable:

------------------------------------------------------------------------
               Action                    Date            FR Cite
------------------------------------------------------------------------
NPRM................................   10/00/17
NPRM Comment Period End.............   12/00/17
------------------------------------------------------------------------

    Regulatory Flexibility Analysis Required: Yes.
    Agency Contact: Jennifer Hawes, Defense Acquisition Regulations 
System, Department of Defense, 3060 Defense Pentagon, Room 3B941, 
Washington, DC 20301-3060, Phone: 571 372-6115, Email: 
[email protected].
    RIN: 0750-AJ19

62.  Inapplicability of Certain Defense-Unique Laws to 
Commercial Items (DFARS Case 2017-D010)

    Legal Authority: 41 U.S.C. 1303; Pub. L. 114-328, sec. 874
    Abstract: DoD is proposing to amend the Defense Federal Acquisition 
Regulation Supplement (DFARS) to implement section 874 of the National 
Defense Authorization Act for Fiscal Year 2017. Section 874 amends 10 
U.S.C. 2375 to address the relationship of commercial item provisions 
to other provisions of law and regulation.
    The DFARS will include lists of defense-unique statutes, and 
Governmentwide contract clause requirements not expressly authorized

[[Page 40264]]

by statute, that are not applicable to contracts or subcontracts for 
the acquisition of commercial items or contracts for the acquisition of 
commercially available off-the-shelf items. To the maximum extent 
practicable, the DFARS shall prohibit the flowdown of contract clauses 
to subcontracts under contracts for the procurement of commercial items 
unless required by law or Executive order.
    This rule is expected to reduce costs to contractors, including 
small entities, by reducing the number of regulations applicable to 
commercial items, including commercially available off-the-shelf items.
    Timetable:

------------------------------------------------------------------------
               Action                    Date            FR Cite
------------------------------------------------------------------------
NPRM................................   09/00/17
NPRM Comment Period End.............   11/00/17
------------------------------------------------------------------------

    Regulatory Flexibility Analysis Required: Yes.
    Agency Contact: Jennifer Hawes, Defense Acquisition Regulations 
System, Department of Defense, 3060 Defense Pentagon, Room 3B941, 
Washington, DC 20301-3060, Phone: 571 372-6115, Email: 
[email protected].
    RIN: 0750-AJ21

63.  Restrictions on Acquisitions From Foreign Sources (DFARS 
Case 2017-D011)

    Legal Authority: 41 U.S.C. 1303; Pub. L. 114-328, sec. 817; 37 
U.S.C. 418; Pub. L. 114-328, sec. 881(b); 10 U.S.C. 2500(1); Pub. L. 
114-328, sec. 1296; Pub. L. 109-163, sec. 1211
    Abstract: DoD is proposing to amend the Defense Federal Acquisition 
Regulation Supplement (DFARS) to implement sections 817, 881(b), and 
1296 of the National Defense Authorization Action (NDAA) for Fiscal 
Year (FY) 2017. These sections of the NDAA for FY 2017 accomplish the 
following:
    (1) Section 817 amends 37 U.S.C. 418, adding new paragraph (d), 
which extends domestic source requirements to acquisitions at or below 
the simplified acquisition threshold when acquiring athletic footwear 
to be furnished to enlisted members of the Armed Forces upon their 
initial entry into the Armed Forces.
    (2) Section 881(b) amends 10 U.S.C. 2500(1) by adding Australia and 
the United Kingdom to the definition of ``National Technology and 
Industrial Base.'' 10 U.S.C. 2534 restricts acquisition of certain 
items to items from manufacturers that are part of the national 
technology and industrial base.
    (3) Section 1296 amends section 1211 of the NDAA for FY 2006 (Pub. 
L. 109-163), which was also amended by the NDAA for FY 2012 (Pub. L. 
112-81). It prohibits purchase of items from a Communist Chinese 
military company that meet the definition of goods and services 
controlled as munitions items when moved to the 600 series of the 
Commerce Control List of the Export Administration Regulations of the 
Department of Commerce.
    Implementation of section 817 in the DFARS may result in some 
increased costs to the Government for purchase of domestic athletic 
footwear; however, this will benefit the manufacturers of domestic 
footwear and components thereof. Implementation of section 881(b) is 
not expected to increase costs to contractors or the Government and 
will improve the integration of the national technology and industrial 
base, expanding to include several close allies (United Kingdom and 
Australia). Implementation of section 1296 is not expected to 
significantly increase costs to contractors or the Government; there 
may be some costs of transition to other sources if restricted parts 
are currently being purchased from China.
    Timetable:

------------------------------------------------------------------------
               Action                    Date            FR Cite
------------------------------------------------------------------------
NPRM................................   09/00/17
NPRM Comment Period End.............   11/00/17
------------------------------------------------------------------------

    Regulatory Flexibility Analysis Required: Yes.
    Agency Contact: Jennifer Hawes, Defense Acquisition Regulations 
System, Department of Defense, 3060 Defense Pentagon, Room 3B941, 
Washington, DC 20301-3060, Phone: 571 372-6115, Email: 
[email protected].
    RIN: 0750-AJ22

64.  Modification to Pilot Program for Streamlining Awards for 
Innovative Technology Projects (DFARS Case 2017-D015)

    Legal Authority: 41 U.S.C. 1303; Pub. L. 114-328, sec. 896; Pub. L. 
114-92, sec. 873
    Abstract: DoD is proposing to amend the Defense Federal Acquisition 
Regulation Supplement (DFARS) to implement section 896 of the National 
Defense Authorization Act (NDAA) for Fiscal Year (FY) 2017, which 
amends section 873 of the NDAA for FY 2016 to modify the Pilot Program 
for Streamlining Awards for Innovative Technology Projects. This 
proposed rule revises DFARS to implement section 896 by providing an 
exception from the following:
    (1) Certified cost or pricing data requirements for contracts, 
subcontracts, or modifications of contracts or subcontracts valued at 
less than $7.5 million awarded under the Small Business Technology 
Transfer Program. The head of the agency may determine that submission 
of cost or pricing data should be required based on past performance of 
the specific small business concern or nontraditional defense 
contractor or analysis of other information specific to the award.
    (2) The records examination requirement at 10 U.S.C. 2313 that 
precludes the head of an agency, acting through an authorized 
representative, from examining all contractor or subcontractor records 
related to the proposal for the contract or subcontract, the 
discussions conducted on the proposal, and the pricing of the contract 
or subcontract. This exception applies to contracts valued at less than 
$7.5 million that are awarded to a small business concern or 
nontraditional defense contractor pursuant to a technical, merit-based 
selection procedure or the Small Business Innovation Research Program. 
Notwithstanding this exception, the head of the agency may determine 
within 18 months of contract completion that auditing of records should 
be required based on past performance of the specific small business or 
nontraditional defense contractor or analysis of other information 
specific to the award.
    This rule is expected to reduce costs for small business concerns 
or nontraditional defense contractors who are covered by the statutory 
exemptions.
    Timetable:

------------------------------------------------------------------------
               Action                    Date            FR Cite
------------------------------------------------------------------------
NPRM................................   09/00/17
NPRM Comment Period End.............   11/00/17
------------------------------------------------------------------------

    Regulatory Flexibility Analysis Required: Yes.
    Agency Contact: Jennifer Hawes, Defense Acquisition Regulations 
System, Department of Defense, 3060 Defense Pentagon, Room 3B941, 
Washington, DC 20301-3060, Phone: 571 372-6115, Email: 
[email protected].
    RIN: 0750-AJ24

65.  Performance-Based Payments (DFARS Case 2017-D019)

    Legal Authority: 41 U.S.C. 1303; Pub. L. 114-328, sec. 831

[[Page 40265]]

    Abstract: DoD is proposing to amend the Defense Federal Acquisition 
Regulation Supplement to implements section 831 of the National Defense 
Authorization Act for Fiscal Year 2017 to require the following:
    (1) Performance-based payments shall not be conditioned upon costs 
incurred in contract performance but on the achievement of performance 
outcomes.
    (2) Nontraditional defense contractors and other private sector 
companies shall be eligible for performance-based payments, consistent 
with best commercial practices.
    (3) In order to receive performance-based payments, a contractor's 
accounting system shall be in compliance with Generally Accepted 
Accounting Principles, and there shall be no requirement for a 
contractor to develop Government-unique accounting systems or practices 
as a prerequisite for agreeing to receive performance-based payments.
    Nothing in the rule shall be construed to grant the Defense 
Contract Audit Agency the authority to audit compliance with Generally 
Accepted Accounting Principles.
    The rule is not expected to increase costs for contractors, and the 
rule does not impact negotiated contract prices. The rule revises the 
contractual procedures for financing through performance-based payments 
and provides for increased utilization of this financing method for 
traditional and nontraditional defense contractors.
    Timetable:

------------------------------------------------------------------------
               Action                    Date            FR Cite
------------------------------------------------------------------------
NPRM................................   10/00/17
NPRM Comment Period End.............   12/00/17
------------------------------------------------------------------------

    Regulatory Flexibility Analysis Required: Yes.
    Agency Contact: Jennifer Hawes, Defense Acquisition Regulations 
System, Department of Defense, 3060 Defense Pentagon, Room 3B941, 
Washington, DC 20301-3060, Phone: 571 372-6115, Email: 
[email protected].
    RIN: 0750-AJ28

66.  Acquisition of Commercial Items (DFARS Case 2017-D020)

    Legal Authority: 41 U.S.C. 1303; Pub. L. 114-328, sec. 871; Pub. L. 
114-328, sec. 872; Pub. L. 114-328, sec. 876; Pub. L. 114-328, sec. 
877; Pub. L. 114-328, sec. 878
    Abstract: DoD is proposing to amend the Defense Federal Acquisition 
Regulation Supplement to implement the requirements of sections 871, 
872, 876, 877, and 878 of the National Defense Authorization Act for 
Fiscal Year 2017 to address:
    (1) How contracting officers may require the offeror to submit 
relevant information to support market research for price analysis;
    (2) That an offeror may submit information or analysis relating to 
the value of a commercial item to aid in the determination of the 
reasonableness of the price of such item, and a contracting officer may 
consider such information or analysis pursuant to 10 U.S.C. 2379;
    (3) The head of an agency may not enter into a contract for 
facilities-related services, knowledge-based services (except 
engineering services), construction services, medical services, or 
transportation services that are not commercial services unless it is 
determined in writing by the appropriate authority that no commercial 
services are suitable to meet the agency's needs;
    (4) That items valued at less than $10,000 that are purchased by a 
contractor for use in the performance of multiple contracts with the 
DoD and other parties and are not identifiable to any particular 
contract shall be treated as a commercial item; and
    (5) That services provided by a business unit that is a 
nontraditional defense contractor (as that term is defined in 10 U.S.C. 
2302(9)) shall be treated as commercial items, to the extent that such 
services use the same pool of employees as used for commercial 
customers and are priced using methodology similar to methodology used 
for commercial pricing.
    DoD expects that this rule will reduce costs for contractors since 
certified cost or pricing data will not be required when contracting 
officers use commercial item procurement procedures for: Commingled 
items purchased by contractors for use in the performance of multiple 
contracts; commercial services (when DoD is obtaining facilities-
related services, knowledge-based services (except engineering 
services), construction services, medical services, or transportation 
services); and services from nontraditional defense contractors. DoD 
does not expect this rule to increase costs for contractors, because 
this rule does not add to or remove any of the existing requirements 
for the submission of other than certified cost or pricing data for the 
purpose of determining the reasonableness of prices proposed for 
commercial items. While the use of market research and data to support 
a value analysis of commercial items will be encouraged, in accordance 
with the statutory language, both techniques are existing practices for 
making price reasonableness determinations.
    Timetable:

------------------------------------------------------------------------
               Action                    Date            FR Cite
------------------------------------------------------------------------
NPRM................................   10/00/17
NPRM Comment Period End.............   12/00/17
------------------------------------------------------------------------

    Regulatory Flexibility Analysis Required: Yes.
    Agency Contact: Jennifer Hawes, Defense Acquisition Regulations 
System, Department of Defense, 3060 Defense Pentagon, Room 3B941, 
Washington, DC 20301-3060, Phone: 571 372-6115, Email: 
[email protected].
    RIN: 0750-AJ29

67.  Service Contract Reporting (DFARS Case 2017-D035)

    Legal Authority: 41 U.S.C. 1303; Pub. L. 114-328, sec. 812; 10 
U.S.C. 2330a
    Abstract: DoD is proposing to amend the Defense Federal Acquisition 
Regulations Supplement (DFARS) to implement section 812 of the National 
Defense Authorization Act for Fiscal Year 2017. Section 812 amended 10 
U.S.C. 2330a, which requires the Secretary of Defense to:
    (1) Establish a data collection system with regard to each purchase 
of services by a military department or defense agency in excess of $3 
million for the following service acquisition portfolio groups: 
Logistics managements services, equipment-related services, knowledge-
based services, and electronics and communications services; and
    (2) Prepare an annual inventory, and submit to Congress a summary 
of the inventory, of activities performed during the preceding fiscal 
year pursuant to staff augmentation contracts on behalf of DoD.
    To create the inventory required by the statute, DoD must collect 
information from contractors performing such services, which will be 
accomplished through the use of the Enterprise-wide Contractor Manpower 
Reporting Application (eCMRA). This rule amends the DFARS to provide 
instructions to contracting officers and contractors regarding reports 
to be submitted through eCMRA. As such, the rule will increase costs 
for contractors, including small entities; however, the new reporting 
requirements are necessary for DoD to comply with the requirements of 
10 U.S.C. 2330a.
    Timetable:

[[Page 40266]]



------------------------------------------------------------------------
               Action                    Date            FR Cite
------------------------------------------------------------------------
NPRM................................   10/00/17
NPRM Comment Period End.............   12/00/17
------------------------------------------------------------------------

    Regulatory Flexibility Analysis Required: Yes.
    Agency Contact: Jennifer Hawes, Defense Acquisition Regulations 
System, Department of Defense, 3060 Defense Pentagon, Room 3B941, 
Washington, DC 20301-3060, Phone: 571 372-6115, Email: 
[email protected].
    RIN: 0750-AJ40

68.  Past Performance Information Retrieval System-Statistical 
Reporting (DFARS Case 2017-D003)

    Legal Authority: 41 U.S.C. 1303
    Abstract: DoD is proposing to amend the Defense Federal Acquisition 
Regulation Supplement (DFARS) to incorporate price risk, item risk and 
supplier risk factors into DFARS 252.213-7000, Notice to Prospective 
Suppliers on Use of Past Performance Information Retrieval System-
Statistical Reporting in Past Performance Evaluations. The Past 
Performance Information Retrieval System-Statistical Reporting (PPIRS-
SR) application provides objective, statistical information that can be 
used by contracting officers for evaluation of contractor quotations 
under simplified acquisition procedures.
    This rule is necessary in order to align the DFARS with 
enhancements made to the PPIRS-SR application in 2016, enhancements 
that better enable DoD to evaluate supplier past performance in order 
to prevent the acquisition of counterfeit parts. PPIRS-SR captures 
historical pricing data from various sources to compute ``average 
price'' paid, applies a common statistical methodology to derive an 
expected cost range for previously procured items, and alerts 
contracting officers of items considered ``high-risk''(i.e., the item 
to be procured has a critical use or is susceptible to counterfeiting).
    The proposed rule does not increase costs for contractors; rather, 
the rule informs prospective suppliers that DoD will use PPIRS-SR as a 
source of information for past performance data.
    Timetable:

------------------------------------------------------------------------
               Action                    Date            FR Cite
------------------------------------------------------------------------
NPRM................................   11/00/17
NPRM Comment Period End.............   01/00/18
------------------------------------------------------------------------

    Regulatory Flexibility Analysis Required: Yes.
    Agency Contact: Jennifer Hawes, Defense Acquisition Regulations 
System, Department of Defense, 3060 Defense Pentagon, Room 3B941, 
Washington, DC 20301-3060, Phone: 571 372-6115, Email: 
[email protected].
    RIN: 0750-AJ41

69.  Consolidation of Contract Requirements (DFARS Case 2017-
D004)

    Legal Authority: 41 U.S.C. 1303; 14 U.S.C. 657q; Pub. L. 112-239, 
sec. 1671
    Abstract: DoD is proposing to amend the Defense Federal Acquisition 
Regulation Supplement (DFARS) to remove or revise outdated DFARS 
coverage regarding consolidation of contract requirements, which is 
defined at DFARS 207.170 as ``the use of a solicitation to obtain 
offers for a single contract or multiple award contract to satisfy two 
or more requirements of a department, agency, or activity for supplies 
or services that previously have been provided to, or performed for, 
that department, agency, or activity under two or more separate 
contracts.'' This coverage in the DFARS implemented 10 U.S.C. 2382, 
which was repealed by section 1671 of the National Defense 
Authorization Act for Fiscal Year 2013. Section 1671 also amended 
section 44 of the Small Business Act (15 U.S.C. 657q) to remove the 
requirement for DoD to comply with 10 U.S.C. 2382. As a result, DoD is 
now required to comply with 15 U.S.C. 657q, which places limitations on 
the use of acquisition strategies involving consolidation. The Federal 
Acquisition Regulation (FAR) addresses consolidation, including the 
limitations imposed by 15 U.S.C. 657q, at FAR 7.107.
    By removing the outdated DFARS coverage of consolidation, this rule 
will reduce confusion among the DoD contracting workforce caused by 
different requirements in the FAR and DFARS. Accordingly, this rule is 
not expected to increase costs for offerors or contractors.
    Timetable:

------------------------------------------------------------------------
               Action                    Date            FR Cite
------------------------------------------------------------------------
NPRM................................   10/00/17
NPRM Comment Period End.............   12/00/17
------------------------------------------------------------------------

    Regulatory Flexibility Analysis Required: Yes.
    Agency Contact: Jennifer Hawes, Defense Acquisition Regulations 
System, Department of Defense, 3060 Defense Pentagon, Room 3B941, 
Washington, DC 20301-3060, Phone: 571 372-6115, Email: 
[email protected].
    RIN: 0750-AJ43

70.  Electronic Submission and Processing of Payment Requests 
and Receiving Reports (DFARS Case 2016-D032)

    Legal Authority: 41 U.S.C. 1303
    Abstract: DoD is proposing to amend the Defense Federal Acquisition 
Regulation Supplement (DFARS) to update and clarify exceptions to the 
use of Wide Area WorkFlow (WAWF) for electronic submission and 
processing of payment requests and receiving reports. The rule will 
amend the DFARS to reflect the current exceptions to WAWF, which 
include classified contracts, contractor inability to create an 
electronic invoice for reasons beyond its reasonable control (or 
because the creation of an electronic invoice is unduly burdensome), or 
when DoD is unable to receive a payment request or provide acceptance 
in electronic form. The proposed rule also updates DFARS appendix F and 
removes obsolete language from DFARS 246.370 and its related clause at 
DFARS 252.246-7000, Material Inspection and Receiving Report. This rule 
is not expected to increase costs for contractors.
    Timetable:

------------------------------------------------------------------------
               Action                    Date            FR Cite
------------------------------------------------------------------------
NPRM................................   10/00/17
NPRM Comment Period End.............   12/00/17
------------------------------------------------------------------------

    Regulatory Flexibility Analysis Required: Yes.
    Agency Contact: Jennifer Hawes, Defense Acquisition Regulations 
System, Department of Defense, 3060 Defense Pentagon, Room 3B941, 
Washington, DC 20301-3060, Phone: 571 372-6115, Email: 
[email protected].
    RIN: 0750-AJ44

71.  Antiterrorism Requirements for Contractors (DFARS Case 
2017-D034)

    Legal Authority: 41 U.S.C. 1303
    Abstract: DoD is proposing to amend the Defense Federal Acquisition 
Regulation Supplement to implement requirements of DoD Instruction O-
2000.16, ``DoD Antiterrorism (AT) Program Implementation: DoD AT 
Standards,'' as it relates to contractors. Specifically, DoDI O-2000.16 
requires that contractor and subcontractor employees who, as a 
condition of contract performance, require routine physical access to a 
Federally-controlled facility or military installation for a period of 
performance in excess of six months, complete Level I antiterrorism 
awareness training annually. This rule

[[Page 40267]]

creates a new DFARS contract clause that informs contractors of this 
mandatory training requirement; therefore, this case will increase 
costs for contractors.
    Timetable:

------------------------------------------------------------------------
               Action                    Date            FR Cite
------------------------------------------------------------------------
NPRM................................   10/00/17
NPRM Comment Period End.............   12/00/17
------------------------------------------------------------------------

    Regulatory Flexibility Analysis Required: Yes.
    Agency Contact: Jennifer Hawes, Defense Acquisition Regulations 
System, Department of Defense, 3060 Defense Pentagon, Room 3B941, 
Washington, DC 20301-3060, Phone: 571 372-6115, Email: 
[email protected].
    RIN: 0750-AJ45

DEPARTMENT OF DEFENSE (DOD)

Defense Acquisition Regulations Council (DARC)

Final Rule Stage

72. Amendents Related to Sources of Electronic Parts (DFARS Case 2016-
D013)

    Legal Authority: 41 U.S.C. 1303; Pub. L. 114-92, sec. 885(b); Pub. 
L. 112-81, sec. 818(c)(3)(D)(iii)
    Abstract: DoD is issuing a final rule amending the Defense Federal 
Acquisition Regulation Supplement to implement section 885(b) of the 
National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2016, 
which amends section 818(c)(3)(D)(iii) of the NDAA for FY 2012, which 
makes contractor and subcontractor identification and use of 
contractor-approved distributors subject to approval (as well as review 
and audit) by appropriate DoD officials. Contractors are only allowed 
to use contractor-approved suppliers when electronic parts are not in 
production by the original manufacturer or an authorized aftermarket 
manufacturer, and are not currently available in stock from a the 
original manufacturer, their authorized suppliers; or suppliers that 
obtain such parts exclusively from the original manufacturers of the 
parts or their authorized suppliers. The contractor may proceed with 
the acquisition of electronic parts from a contractor-approved supplier 
unless otherwise notified by DoD.
    Five respondents submitted comments on the proposed rule, which 
resulted in one clarification in the final rule. This rule could have 
some cost impact on contractors, including small entities, if a 
contractor-approved supplier is disapproved by DoD, but this would only 
occur if DoD had identified substantial risk of counterfeit parts from 
such supplier. DoD shares the desire of the contractors to avoid 
significant schedule delays and cost increases, which would result in 
impairment of operational readiness.
    Timetable:

------------------------------------------------------------------------
               Action                    Date            FR Cite
------------------------------------------------------------------------
NPRM................................   08/02/16  81 FR 50680
NPRM Comment Period End.............   10/03/16
Final Action........................   09/00/17
Final Action Effective..............   09/00/17
------------------------------------------------------------------------

    Regulatory Flexibility Analysis Required: Yes.
    Agency Contact: Jennifer Hawes, Defense Acquisition Regulations 
System, Department of Defense, 3060 Defense Pentagon, Room 3B941, 
Washington, DC 20301-3060, Phone: 571 372-6115, Email: 
[email protected].
    RIN: 0750-AI92

73. Competition for Religious-Related Services Contracts (DFARS Case 
2016-D015)

    Legal Authority: 41 U.S.C. 1303; Pub. L. 114-92, sec. 898
    Abstract: DoD is issuing a final rule amending the Defense Federal 
Acquisition Regulation Supplement to implement section 898 of the 
National Defense Authorization Act for Fiscal Year 2016, which 
prohibits DoD from precluding a nonprofit organization from competing 
for a contract for religious-related services on a U.S. military 
installation. The rule implements the prohibition set forth in the 
statute. In addition, since solicitations that are set aside for small 
businesses are likely to provide a competitive environment that 
excludes participation of nonprofit organizations, the rule provides a 
new provision to be used in solicitations for religious-related 
services on a U.S. military installation that are set aside for small 
businesses in order to advise potential offerors that nonprofit 
organizations will not be precluded from competing. Contracting 
officers are also directed to not use any of the sole source 
authorities at Federal Acquisition Regulation 6.302-5(b)(4) through 
(7), since use of those authorities would restrict award of the 
requirement to a small business and, contrary to statute, would bar a 
nonprofit organization from being considered for the award.
    There were no public comments submitted in response to the proposed 
rule. This rule will not increase the cost of contracting for 
contractors. However, this rule may have an economic impact on small 
entities, since the rule expands opportunities for nonprofit 
organizations that will now be authorized to compete on solicitations 
that are set-aside for small businesses, when the acquisition of 
religious-related services on a U.S. military installation.
    Timetable:

------------------------------------------------------------------------
               Action                    Date            FR Cite
------------------------------------------------------------------------
NPRM................................   12/22/16  81 FR 93875
NPRM Comment Period End.............   02/21/17
Final Action........................   09/00/17
Final Action Effective..............   09/00/17
------------------------------------------------------------------------

    Regulatory Flexibility Analysis Required: Yes.
    Agency Contact: Jennifer Hawes, Defense Acquisition Regulations 
System, Department of Defense, 3060 Defense Pentagon, Room 3B941, 
Washington, DC 20301-3060, Phone: 571 372-6115, Email: 
[email protected].
    RIN: 0750-AJ06

74. Use of the Government Property Clause (DFARS Case 2015-D035)

    Legal Authority: 41 U.S.C. 1303
    Abstract: DoD is issuing a final rule amending the Defense Federal 
Acquisition Regulation Supplement to expand the prescription for use of 
Federal Acquisition Regulation (FAR) clause 52.245-1, Government 
Property, to apply to all purchase orders for repair, maintenance, 
overhaul, or modification to Government property regardless of the 
acquisition cost of the items to be repaired. Currently, the FAR clause 
is optional for use in purchase orders for repair when the acquisition 
cost of the item to be repaired is less than the simplified acquisition 
threshold; however, acquisition cost alone is not an indicator of the 
criticality or sensitivity of the property. The acquisition cost of 
individual items of firearms, body armor, night-vision equipment, 
computers, or cryptologic devices may be below the simplified 
acquisition threshold, but the accountability requirements for these 
items are fairly stringent. Requiring the clause in all purchase orders 
for repair, regardless of the acquisition cost of the item to be 
repaired, will ensure DoD has better accountability and insight into 
military reparable assets.
    One respondent submitted comments on the proposed rule. This rule 
will increase costs for contractors, including

[[Page 40268]]

small entities, who receive purchase orders for repair of Government 
property, because these contractors will be required to comply with the 
reporting requirements associated with Government property clause. 
However, the rule also provides the contractors with the protections of 
the Government Property clause (where the Government self-insures the 
property provided to the contractor), and provides DoD better 
accountability of its property.
    Timetable:

------------------------------------------------------------------------
               Action                    Date            FR Cite
------------------------------------------------------------------------
NPRM................................   10/21/16  81 FR 73002
NPRM Comment Period End.............   12/20/16
Final Action........................   10/00/17
Final Action Effective..............   10/00/17
------------------------------------------------------------------------

    Regulatory Flexibility Analysis Required: Yes.
    Agency Contact: Jennifer Hawes, Defense Acquisition Regulations 
System, Department of Defense, 3060 Defense Pentagon, Room 3B941, 
Washington, DC 20301-3060, Phone: 571 372-6115, Email: 
[email protected].
    RIN: 0750-AJ11

DEPARTMENT OF DEFENSE (DOD)

Office of Assistant Secretary for Health Affairs (DODOASHA)

Final Rule Stage

75. Tricare; Reimbursement of Long Term Care Hospitals and Inpatient 
Rehabilitation Facilities

    Legal Authority: 5 U.S.C. 301; 10 U.S.C. ch. 55
    Abstract: The Department of Defense, Defense Health Agency, 
proposed to revise its reimbursement of Long Term Care Hospitals 
(LTCHs) and Inpatient Rehabilitation Facilities (IRFs). Proposed 
revisions are in accordance with the statutory provision at title 10, 
United States Code (U.S.C.), section 1079(i)(2) that requires TRICARE 
payment methods for institutional care be determined, to the extent 
practicable, in accordance with the same reimbursement rules as apply 
to payments to providers of services of the same type under Medicare. 
32 CFR 199.2 includes a definition for ``Hospital, long-term 
(tuberculosis, chronic care, or rehabilitation).'' This rule proposed 
to delete this definition and create separate definitions for ``Long 
Term Care Hospital'' and ``Inpatient Rehabilitation Facility'' in 
accordance with Centers for Medicare and Medicaid Services (CMS) 
classification criteria. Under TRICARE, LTCHs and IRFs (both 
freestanding rehabilitation hospitals and rehabilitation hospital 
units) are currently paid the lower of a negotiated rate (if they are a 
network provider) or billed charges (if they are a non-network 
provider). Although Medicare's reimbursement methods for LTCHs and IRFs 
are different, to the Defense Health Agency proposed adopting both the 
Medicare LTCH and IRF Prospective Payment System (PPS) methods 
simultaneously to align with our statutory requirement to reimburse 
like Medicare. The proposed rule set forth the regulation modifications 
that would be necessary for TRICARE to adopt Medicare's LTCH and IRF 
Prospective Payment Systems and rates applicable for inpatient services 
provided by LTCHs and IRFs to TRICARE beneficiaries. The Department 
will finalize this rule after considering public comment.
    Timetable:

------------------------------------------------------------------------
               Action                    Date            FR Cite
------------------------------------------------------------------------
NPRM................................   01/26/15  80 FR 3926
NPRM Comment Period End.............   03/27/15
Second NPRM.........................   08/31/16  81 FR 59934
Second NPRM Comment Period End......   10/31/16
Final Action........................   09/00/17
------------------------------------------------------------------------

    Regulatory Flexibility Analysis Required: Yes.
    Agency Contact: Ann N. Fazzini, Department of Defense, Office of 
Assistant Secretary for Health Affairs, 1200 Defense Pentagon, 
Washington, DC 20301, Phone: 303 676-3803.
    RIN: 0720-AB47

[FR Doc. 2017-16889 Filed 8-23-17; 8:45 am]
 BILLING CODE 5001-06-P