[Federal Register Volume 84, Number 103 (Wednesday, May 29, 2019)]
[Proposed Rules]
[Pages 24734-24735]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-11183]


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DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Parts 202, 216, 217, 225, 234, and 235

[Docket DARS-2019-0008]
RIN 0750-AJ32


Defense Federal Acquisition Regulation Supplement: Use of Fixed-
Price Contracts (DFARS Case 2017-D024)

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

ACTION: Proposed rule; extension of comment period.

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SUMMARY: DOD is proposing to amend the Defense Federal Acquisition 
Regulation Supplement (DFARS) to implement sections of the National 
Defense Authorization Act for Fiscal Year 2017 that require review and 
approval for certain cost-reimbursement contract types at specified 
thresholds and established time periods and the use of firm fixed-price 
contract types for foreign military sales unless an exception or waiver 
applies. The comment period on the proposed rule is extended 14 days.

DATES: The comment period for the proposed rule published on April 1, 
2019 (84 FR 12179), is extended. Submit comments by June 14, 2019.

ADDRESSES: Submit comments identified by DFARS Case 2017-D024, using 
any of the following methods:
    [cir] Federal eRulemaking Portal: http://www.regulations.gov. 
Search for ``DFARS Case 2017-D024.'' Select ``Comment Now'' and follow 
the

[[Page 24735]]

instructions provided to submit a comment. Please include ``DFARS Case 
2017-D024'' on any attached documents.
    [cir] Email: [email protected]. Include DFARS Case 2017-D024 in 
the subject line of the message.
    [cir] Fax: 571-372-6094.
    [cir] Mail: Defense Acquisition Regulations System, Attn: Ms. 
Kimberly Bass, OUSD(D&S)DPC/DARS, Room 3B941, 3060 Defense Pentagon, 
Washington, DC 20301-3060.
    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: Ms. Kimberly Bass, telephone 571-372-
6174.

SUPPLEMENTARY INFORMATION: 

I. Background

    On April 1, 2019, DoD published a proposed rule in the Federal 
Register at 84 FR 12179 to implement the requirements of sections 829 
and 830 of the National Defense Authorization Act for Fiscal Year 2017 
(Pub. L. 114-328). Section 829 requires contracting officers to first 
consider fixed-price contracts, to include fixed-price incentive 
contracts, when determining contract type and to obtain approval from 
the head of the contracting activity for--
     Cost-reimbursement contracts in excess of $50 million to 
be awarded after October 1, 2018, and before October 1, 2019; and
     Cost-reimbursement contracts in excess of $25 million to 
be awarded on or after October 1, 2019.
    Section 830 provides requirements, exceptions, and waiver authority 
for the use of firm-fixed-price contracts for foreign military sales 
(FMS). It requires contracting officers to use firm fixed-price 
contracts unless specified exceptions or a waiver applies. Contracting 
officers are required to use a different contract type if the FMS 
customer has established in writing a preference for a different 
contract type or has requested in writing that a different contract 
type be used for a specific FMS. The waiver authorizes contracting 
officers the ability to use other than firm-fixed-price contract type 
on a case by case basis when determined it is in the best interest of 
the United States and American taxpayers.
    The comment period for the proposed rule is extended 14 days, from 
May 31, 2019, to June 14, 2019, to provide additional time for 
interested parties to comment on the proposed DFARS changes.

List of Subjects in 48 CFR Parts 202, 216, 217, 225, 234, and 235

    Government procurement.

Jennifer Lee Hawes,
Regulatory Control Officer, Defense Acquisition Regulations System.
[FR Doc. 2019-11183 Filed 5-28-19; 8:45 am]
 BILLING CODE 5001-06-P