Rule2022-08815
Defense Federal Acquisition Regulation Supplement: Contract Authority for Development and Demonstration of Prototypes (DFARS Case 2021-D025)
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
April 28, 2022
Effective
April 28, 2022
Issuing agencies
Defense DepartmentDefense Acquisition Regulations System
Abstract
DoD is issuing a final rule amending the Defense Federal Acquisition Regulation Supplement (DFARS) to implement a section of the National Defense Authorization Act for Fiscal Year 2021 that amends the types of line items and contract options that may be included, subject to limitations, in certain contracts initially awarded pursuant to competitive solicitations.
Full Text
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<title>Federal Register, Volume 87 Issue 82 (Thursday, April 28, 2022)</title>
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[Federal Register Volume 87, Number 82 (Thursday, April 28, 2022)]
[Rules and Regulations]
[Pages 25144-25145]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-08815]
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DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System
48 CFR Parts 217, 234, and 235
[Docket DARS-2021-0020]
RIN 0750-AL49
Defense Federal Acquisition Regulation Supplement: Contract
Authority for Development and Demonstration of Prototypes (DFARS Case
2021-D025)
AGENCY: Defense Acquisition Regulations System, Department of Defense
(DoD).
ACTION: Final rule.
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SUMMARY: DoD is issuing a final rule amending the Defense Federal
Acquisition Regulation Supplement (DFARS) to implement a section of the
National Defense Authorization Act for Fiscal Year 2021 that amends the
types of line items and contract options that may be included, subject
to limitations, in certain contracts initially awarded pursuant to
competitive solicitations.
DATES: Effective April 28, 2022.
FOR FURTHER INFORMATION CONTACT: Ms. Barbara J. Salcido, telephone 571-
372-6102.
SUPPLEMENTARY INFORMATION:
I. Background
DoD published a proposed rule in the Federal Register at 86 FR
59951 on October 29, 2021, to revise the DFARS to implement paragraph
(a)(2) of section 831 of the National Defense Authorization Act (NDAA)
for Fiscal Year (FY) 2021 (Pub. L. 116-283). Section 831(a)(2) amends
10 U.S.C. 2302e(a) to revise the type of contract line items or options
that may be included, without additional competition, in contracts
initially awarded from the competitive selection of a proposal
resulting from a broad agency announcement.
One respondent submitted a public comment in response to the
proposed rule.
II. Discussion and Analysis
DoD reviewed the public comment in the development of the final
rule. The public comment is outside the scope of this rule; therefore,
there are no changes made to the final rule.
III. Applicability to Contracts at or Below the Simplified Acquisition
Threshold (SAT), for Commercial Products Including Commercially
Available Off-the-Shelf (COTS) Items, and for Commercial Services
This rule does not create any new solicitation provisions or
contract clauses. It does not impact any existing solicitation
provisions or contract clauses or their applicability to contracts at
or below the simplified acquisition threshold, for commercial products
including COTS items, or for commercial services.
IV. Expected Impact of the Rule
The final rule impacts DoD acquisition planning decisions for
contract awards that will result from the competitive selection of a
proposal in response to a broad agency announcement for which DoD
intends to include a contract line item or option
[[Page 25145]]
for the development and demonstration of technology developed under the
contract. The final rule broadens the scope of effort for which these
contract line items and contract options can be awarded and the type of
funding that may be used to fund these line items or options. This
final rule also helps streamline the process for moving technologies
developed under such contracts from science and technology into
production.
V. 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.
VI. Congressional Review Act
As required by the Congressional Review Act (5 U.S.C. 801-808)
before an interim or final rule takes effect, DoD will submit a copy of
the interim or final rule with the form, Submission of Federal Rules
under the Congressional Review Act, to the U.S. Senate, the U.S. House
of Representatives, and the Comptroller General of the United States. A
major rule under the Congressional Review Act cannot take effect until
60 days after it is published in the Federal Register. The Office of
Information and Regulatory Affairs has determined that this rule is not
a major rule under 5 U.S.C. 804.
VII. Regulatory Flexibility Act
A final regulatory flexibility analysis (FRFA) has been prepared
consistent with the Regulatory Flexibility Act, 5 U.S.C. 601, et seq.
The FRFA is summarized as follows:
This final rule implements paragraph (a)(2) of section 831 of the
National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2021
(Pub. L. 116-283). The objective of this rule is to revise the type of
contract line items or options that may be included, without additional
competition, in contracts initially awarded from the competitive
selection of a proposal resulting from a broad agency announcement.
When awarding such a contract, contracting officers may now include
a contract line item or contract option for the ``development and
demonstration'' of technology developed under the contract. This
revision provides a broader scope of effort and funding for which these
contract line items and contract options can be awarded, which in turn
helps streamline the process for moving technologies developed under
such contracts from science and technology into production.
There were no significant issues raised by public comments in
response to the initial regulatory flexibility analysis.
Based on data from the Federal Procurement Data System for FY 2018
through FY 2020, on average, DoD annually awards 300 contracts to 200
unique small entities using the competitive selection of proposals
resulting from a broad agency announcement.
This rule does not impose any new reporting, recordkeeping, or
other compliance requirements.
There are no significant alternatives to this rule that would
accomplish the objective of the statute.
VIII. 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 217, 234, and 235
Government procurement.
Jennifer D. Johnson,
Editor/Publisher, Defense Acquisition Regulations System.
Therefore, 48 CFR parts 217, 234, and 235 are amended as follows:
0
1. The authority citation for 48 CFR parts 217, 234, and 235 continues
to read as follows:
Authority: 41 U.S.C. 1303 and 48 CFR chapter 1.
PART 217--SPECIAL CONTRACTING METHODS
0
2. Amend section 217.202 by revising paragraph (2) to read as follows:
217.202 Use of options.
* * * * *
(2) For a contract that is initially awarded from the competitive
selection of a proposal resulting from a broad agency announcement, see
234.005-1 for the use of contract options for the development and
demonstration or initial production of technology developed under the
contract or the delivery of initial or additional items.
PART 234--MAJOR SYSTEM ACQUISITION
0
3. Amend section 234.005-1 by revising the introductory text and
paragraph (1) to read as follows:
234.005-1 Competition.
A contract that is initially awarded from the competitive selection
of a proposal resulting from a broad agency announcement (see 235.016)
may contain a contract line item or contract option using funds not
limited to those identified in 235.016 for the development and
demonstration or initial production of technology developed under the
contract, or the delivery of initial or additional items if the item or
a prototype thereof is created as the result of work performed under
the contract, only when it adheres to the following limitations:
(1) The contract line item or contract option shall be limited to
the delivery of the minimal amount of initial or additional items or
prototypes that will allow for timely competitive solicitation and
award of a follow-on development or production contract for those
items.
* * * * *
PART 235--RESEARCH AND DEVELOPMENT CONTRACTING
0
4. Amend section 235.006-71 by revising paragraph (b) to read as
follows:
235.006-71 Competition.
* * * * *
(b) For a contract that is initially awarded from the competitive
selection of a proposal resulting from a broad agency announcement, see
234.005-1 for the use of contract line items or contract options for
the development and demonstration or initial production of technology
developed under the contract or the delivery of initial or additional
items.
[FR Doc. 2022-08815 Filed 4-27-22; 8:45 am]
BILLING CODE 5001-06-P
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</html>Indexed from Federal Register on April 28, 2022.
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