Rule2024-21094
Defense Federal Acquisition Regulation Supplement: Modification of Prize Authority for Advanced Technology Achievements (DFARS Case 2022-D014)
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
September 26, 2024
Effective
October 1, 2024
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 2022 that provides procedures and approval and reporting requirements for contracts awarded as prizes for advanced technology achievements.
Full Text
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<title>Federal Register, Volume 89 Issue 187 (Thursday, September 26, 2024)</title>
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[Federal Register Volume 89, Number 187 (Thursday, September 26, 2024)]
[Rules and Regulations]
[Pages 79000-79001]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-21094]
[[Page 79000]]
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DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System
48 CFR Part 206
[Docket DARS-2024-0014]
RIN 0750-AL65
Defense Federal Acquisition Regulation Supplement: Modification
of Prize Authority for Advanced Technology Achievements (DFARS Case
2022-D014)
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 2022 that provides
procedures and approval and reporting requirements for contracts
awarded as prizes for advanced technology achievements.
DATES: Effective October 1, 2024.
FOR FURTHER INFORMATION CONTACT: Mr. Jon Snyder, telephone 703-945-
5341.
SUPPLEMENTARY INFORMATION:
I. Background
DoD published a proposed rule in the Federal Register at 89 FR
31680 on April 25, 2024, to implement section 822 of the National
Defense Authorization Act (NDAA) for Fiscal Year (FY) 2022 (Pub. L.
117-81), which amends 10 U.S.C. 4025. Section 822 provides the
authority to carry out advanced technology prize programs to award
contracts to recognize outstanding achievements in basic, advanced, and
applied research; technology development; and prototype development.
Section 822 specifies the award of a contract as a prize is a
competitive procedure if the solicitation is widely advertised. Section
822 also requires approval of such awards that exceed $10,000 and
congressional reporting for contracts that exceed $10 million. There
were no public comments submitted in response to the proposed rule.
There are no changes made to the final rule.
II. 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 final 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
valued at or below the simplified acquisition threshold, for commercial
products including COTS items, or for commercial services.
III. Expected Impact of the Rule
Prior to the enactment of the NDAA for FY 2022, 10 U.S.C. 4025
(formerly 10 U.S.C. 2374a) did not provide for the award of contracts
as prizes for outstanding achievements in basic, advanced, and applied
research; technology development; and prototype development. This final
rule implements the authority to award contracts as prizes under
certain conditions.
This final rule may increase participation in prize competitions
and decrease the lead time to deliver to the warfighter achievements in
basic, advanced, and applied research; technology development; and
prototype development. This final rule may help to expand the defense
industrial base by providing a way for entities that are new to DoD
procurement to obtain DoD contracts. It may also streamline the
competitive process, which could reduce Government administrative costs
associated with competitive negotiated acquisitions. For this reason,
the difference in the cost of managing a contract instead of another
type of prize is expected to be negligible.
Data provided from the Office of the Under Secretary of Defense for
Research and Engineering indicates there were a total of 809 cash
prizes awarded from FY 2021 to FY 2023, or approximately 270 per year,
worth a total of about $3.5 million annually. DoD estimates 20 percent
of these 270 historical cash prize awards, or 54 cash prize awards
worth a total of approximately $700,000, would be converted to
contracts. Therefore, DoD estimates that approximately 54 entities per
year would be awarded contracts or a combination of contracts, other
agreements (e.g., grants, cooperative agreements, other transaction
agreements), and cash prizes as a result of the changes in this final
rule.
IV. 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, as amended.
V. 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 as defined by 5 U.S.C. 804.
VI. Regulatory Flexibility Act
A final regulatory flexibility analysis has been prepared
consistent with the Regulatory Flexibility Act, 5 U.S.C. 601, et seq.
and is summarized as follows:
This rule is necessary to implement section 822 of the National
Defense Authorization Act (NDAA) for Fiscal Year (FY) 2022 (Pub. L.
117-81), which amends 10 U.S.C. 4025, Prizes for advanced technology
achievements. Section 822 provides advanced technology prize programs
authority to award contracts to recognize outstanding achievements in
basic, advanced, and applied research; technology development; and
prototype development. Section 822 also provides that the award of a
contract as a prize is a competitive procedure if the prize program
solicitation is widely advertised. Section 822 also requires approval
of such awards exceeding $10,000 and congressional reporting for
contracts exceeding $10 million. The objective of this final rule is to
implement section 822 of the NDAA for FY 2022.
There were no significant issues raised by the public in response
to the initial regulatory flexibility analysis.
Data provided from the Office of the Under Secretary of Defense for
Research and Engineering indicates there were a
[[Page 79001]]
total of 809 cash prizes awarded from FY 2021 to FY 2023, or
approximately 270 per year, worth a total of about $3.5 million
annually. During this three-year period, DoD awarded a total of 636
cash prizes to small entities, which is an average of 212 per year. DoD
estimates 20 percent of these 212 historical cash prize awards, or 42
cash prize awards worth a total of approximately $545,000, would be
converted to contracts. Therefore, DoD estimates that approximately 42
small entities per year would be awarded contracts or a combination of
contracts, other agreements (e.g., grants, cooperative agreements,
other transaction agreements), and cash prizes as a result of the
changes in this final rule. Therefore, DoD does not anticipate that
this final rule will have a significant impact on small entities.
The rule does not impose any new reporting, recordkeeping, or other
compliance requirements for small entities.
There are no known alternatives that would accomplish the stated
objectives of the applicable statute.
VII. Paperwork Reduction Act
This final 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 Part 206
Government procurement.
Jennifer D. Johnson,
Editor/Publisher, Defense Acquisition Regulations System.
Therefore, the Defense Acquisition Regulations System amends 48 CFR
part 206 as follows:
PART 206--COMPETITION REQUIREMENTS
0
1. The authority citation for 48 CFR part 206 continues to read as
follows:
Authority: 41 U.S.C. 1303 and 48 CFR chapter 1.
0
2. Amend section 206.102-70 by--
0
a. Designating the text as paragraph (a); and
0
b. Adding paragraph (b).
The addition reads as follows:
206.102-70 Other competitive procedures.
(a) * * *
(b) The award of a contract as a prize resulting from a competitive
selection of prize recipients for advanced technology achievements is a
competitive procedure (10 U.S.C. 4025(f)), when the solicitation is
widely advertised, including through the Governmentwide point of entry
(see FAR part 5). See PGI 206.102-70 for approval requirements.
[FR Doc. 2024-21094 Filed 9-25-24; 8:45 am]
BILLING CODE 6001-FR-P
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</html>Indexed from Federal Register on September 26, 2024.
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