[Federal Register Volume 60, Number 151 (Monday, August 7, 1995)]
[Rules and Regulations]
[Pages 40106-40107]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-19317]
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DEPARTMENT OF DEFENSE
48 CFR Parts 206, 207, 215, 219, and 252
[DFARS Case 95-D701]
Defense Federal Acquisition Regulation Supplement; Contract Award
(Interim)
AGENCY: Department of Defense (DoD).
ACTION: Interim rule with request for comment.
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SUMMARY: This interim rule is issued pursuant to the Federal
Acquisition Streamlining Act of 1994 (``the Act''). The Director of
Defense Procurement is amending the Defense Federal Acquisition
Regulation Supplement concerning acquisition planning, contracting by
negotiation, and competition requirements as a result of changes to
Title 10 U.S.C. by Sections 1506, 3065, 3066, and 7101(b) of the Act.
DATES: Effective Date: August 7, 1995.
Comment Date: Comments on the interim rule should be submitted in
writing to the address shown below on or before October 6, 1995 to be
considered in the formulation of a final rule.
ADDRESSES: Interested parties should submit written comments to:
Defense Acquisition Regulations Council, PDUSD(A&T)DP(DAR),IMD
3D139,3062 Defense Pentagon, Washington, DC 20301-3062. Telefax number
(703) 602-0350. Please cite DFARS Case 95-D701 in all correspondence
related to this issue.
FOR FURTHER INFORMATION CONTACT:
Ms. Mellissa D. Rider, DFARS FASTA Implementation Secretariat, at (703)
614-1634. Please Cite DFARS case 95-D701.
SUPPLEMENTARY INFORMATION:
A. Background
The Federal Acquisition Streamlining Act of 1994, Pub. L. 103-355
(``the Act''), dated October 13, 1994, provides authorities that
streamline the acquisition process and minimize burdensome Government-
unique requirements. Major changes that can be expected in the
acquisition process as a result of the Act's implementation include
changes in the areas of Commercial Item Acquisition, Simplified
Acquisition Procedures, the Truth in Negotiations Act, and introduction
of the Federal Acquisition Computer Network (FACNET).
DFARS Case 95-D701 addresses six defense-unique sections of the Act
that were given immediate effectivity by Section 10001(c) of the Act:
Section 1506, Repeal of Requirement Relating to Production Special
Tooling and Production Special Test Equipment; Section 1507,
Regulations for Bids; Section 3063, DoD Acquisition of Intellectual
Property Rights; Section 3065, Codification and Revision of Limitation
on Lease of Vessels, Aircraft, and Vehicles; Section 3066, Soft Drink
Supplies; and Section 7101(b), Repeal of Certain Requirements.
Following is a discussion of the changes associated with each section:
Section 1506, Repeal of Requirement Relating to Production Special
Tooling and Production Special Test Equipment--This section repeals 10
U.S.C. 2329, which contained requirements relating to production
special tooling and production special test equipment. The requirements
of 10 U.S.C. 2329 had been implemented at DFARS 215.871 and was the
sole reason that section was created. The interim rule removes and
reserves DFARS 215.871.
Section 1507, Regulations for Bids--This section amends 10 U.S.C.
2381(a) to vest the Secretary of Defense with the authority to
prescribe regulations covering the preparation, submission, and opening
of bids. Existing FAR coverage at Subpart 1.3 already vests the
Secretary of Defense with this authority, especially when one considers
that 5 U.S.C. allows agency heads, such as the Secretary of Defense, to
structure the internal administrative procedures of his/her agency to
support, among other things, the procurement process. Therefore, DFARS
was not amended to implement this Section of the Act.
Section 3063, DoD Acquisition of Intellectual Property Rights--This
section of the Act rewords the listing of the types of copyrights,
designs, patents, processes, etc., in which DoD may obtain rights in
data, to include technical data and computer software and releases of
past infringements or unauthorized use of technical data and computer
software. Since the existing guidance at DFARS Part 227 already covers
these types of situations, no change has been made to DFARS.
Section 3065, Codification and Revision of Limitation on Lease of
Vessels, Aircraft, and Vehicles--This section of the Act adds a new
section at 10 U.S.C. 2401a, which requires DoD to consider all costs
and make a written determination prior to entering into any contract
with a term of 18 months or more, or extending or renewing any contract
for a term of 18 months or more, for any vessel, aircraft, or vehicle,
through a lease, charter, or similar agreement. A new section is added
at DFARS 207.470 to implement this section of the Act.
Section 3066, Soft Drink Supplies--This section of the Act amends
10 U.S.C. 2424, which authorizes noncompetitive procurement of supplies
and services from exchange stores outside the United States, to make
the limitations of 10 U.S.C. 2424(b) (1) and (2) inapplicable to the
purchase of U.S. manufactured soft drinks. Those limitations (i.e.,
contract dollar value not to exceed $50,000 and the requirement that
supplies be on hand at the exchange store on the contract award date)
created purchasing problems for the Defense Personnel Support Center
(DPSC), the DLA activity currently responsible for commissary supplies
of soft drinks. This interim rule amends the DFARS at 206.302-5(b), to
specify that U.S. manufactured soft drinks are not subject to the
limitation of 10 U.S.C. 2424(b) (1) and (2).
Section 7101(b), Repeal of Certain Requirements--This section
repeals Section 804 of Public Law 102-484, Certificate of Competency
Requirements. This statute was implemented at DFARS 219.602-1(a),
219.602-70, and 252.219-7009. As the statutory requirement has been
deleted, the interim rule deletes these DFARS sections.
B. Regulatory Flexibility Act
The interim rule is not expected 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
amendment at DFARS 206.302-5 pertains only to purchases made outside
the United States for use by armed forces outside the United States;
the amendment at DFARS Supbart 207.4 pertains to internal Government
considerations regarding
[[Page 40107]]
leasing; the section deleted at DFARS 215.871 applied only to
production contracts where special tooling/special test equipment costs
exceeded $1,000,000; and the language deleted at DFARS 219.602 and
252.219-7009 pertained only to administrative procedures for processing
a request for a certificate of competency. An initial regulatory
flexibility analysis has therefore not been performed. Comments from
small entities concerning the affected DFARS subparts will be
considered in accordance with Section 610 of the Act. Such comments
must be submitted separately and cite DFARS Case 95-D701 in
correspondence.
C. Paperwork Reduction Act
The Paperwork Reduction Act does not apply because the interim rule
will not impose any additional reporting or record keeping requirements
that require Office of Management and Budget approval under 44 U.S.C.
3501, et seq.
D. Determination To Issue an Interim Rule
A determination has been made under the authority of the Secretary
of Defense that urgent and compelling reasons exist to publish this
interim rule prior to affording the public an opportunity to comment.
This action is necessary to implement Sections 1506, 3065, 3066, and
7101(b) of the Federal Acquisition Streamlining Act of 1994 (Pub. L.
103-355), which became effective on October 13, 1995. Comments received
in response to the publication of this interim rule will be considered
in formulating the final rule.
List of Subjects in 48 CFR Parts 206, 207, 215, 219, and 252
Government procurement.
Michele P. Peterson,
Executive Editor, Defense Acquisition Regulations Council.
Therefore, 48 CFR Parts 206, 207, 215, 219, and 252 are amended as
follows:
PART 206--COMPETITION REQUIREMENTS
1. The authority citation for 48 CFR Parts 206, 207, 215, 219, and
252 is revised to read as follows:
Authority: 41 U.S.C. 421 and 48 CFR Chapter 1.
2. Section 206.302-5 is amended by revising paragraph (b)(i) to
read as follows:
206.302-5 Authorized or required by statute.
(b) * * *
(i) Acquire supplies and services from military exchange stores
outside the United States for use by the armed forces outside the
United States in accordance with 10 U.S.C. 2424(a) and subject to the
limitations of 10 U.S.C. 2424(b). The limitations of 10 U.S.C. 2424(b)
(1) and (2) do not apply to the purchase of soft drinks that are
manufactured in the United States. For the purposes of 10 U.S.C. 2424,
soft drinks manufactured in the United States are brand name carbonated
sodas, manufactured in the United States, as evidenced by product
markings.
* * * * *
PART 207--ACQUISITION PLANNING
3. Section 207.470 is added to read as follows:
207.470 Statutory requirement.
As required by 10 U.S.C. 2401a, the contracting officer shall not
enter into any contract for any vessel, aircraft, or vehicle, through a
lease, charter, or similar agreement with a term of 18 months or more,
or extend or renew any such contract for a term of 18 months or more,
unless the head of the contracting activity has--
(a) Considered all costs of such a contract (including estimated
termination liability); and
(b) Determined in writing that the contract is in the best interest
of the Government.
PART 215--CONTRACTING BY NEGOTIATION
215.871 [Removed and reserved]
4. Section 215.871 is removed and reserved.
PART 219--SMALL BUSINESS AND SMALL DISADVANTAGED BUSINESS CONCERNS
219.602-1 [Amended]
5. Section 219.602-1 is amended by removing paragraph (a).
219.602-70 [Amended]
6. Section 219.602-70 is removed.
PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
252.219-7009 [Removed]
7. Section 252.219-7009 is removed.
[FR Doc. 95-19317 Filed 8-4-95; 8:45 am]
BILLING CODE 5000-04-M
