Rule2024-23227
Defense Federal Acquisition Regulation Supplement: Procurement Technical Assistance Program (DFARS Case 2024-D006)
Primary source
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Published
October 10, 2024
Effective
October 10, 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 2024 that modifies certain definitions associated with the Procurement Technical Assistance Program.
Full Text
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<title>Federal Register, Volume 89 Issue 197 (Thursday, October 10, 2024)</title>
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[Federal Register Volume 89, Number 197 (Thursday, October 10, 2024)]
[Rules and Regulations]
[Pages 82188-82189]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-23227]
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DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System
48 CFR Part 252
[Docket DARS-2024-0018]
RIN 0750-AM03
Defense Federal Acquisition Regulation Supplement: Procurement
Technical Assistance Program (DFARS Case 2024-D006)
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 2024 that modifies
certain definitions associated with the Procurement Technical
Assistance Program.
DATES: Effective October 10, 2024.
FOR FURTHER INFORMATION CONTACT: Jeanette Snyder, telephone 703-508-
7524.
SUPPLEMENTARY INFORMATION:
I. Background
DoD published a proposed rule in the Federal Register at 89 FR
46836 on May 30, 2024, to implement section 853 of the National Defense
Authorization Act (NDAA) for Fiscal Year (FY) 2024 (Pub. L. 118-31; 10
U.S.C. 4951). Section 853 amends the definitions of ``nonprofit
organization'' and ``business entities'' at 10 U.S.C. 4951 for the
Procurement Technical Assistance Program (PTAP). One respondent
submitted public comments in response to the proposed rule.
II. Discussion and Analysis
DoD reviewed the public comments in the development of the final
rule. A discussion of the comments is provided, as follows:
A. Summary of Significant Changes From the Proposed Rule
There are no significant changes from the proposed rule.
B. Analysis of Public Comments
Comment: The respondent indicated that the statement: ``In
addition, business entities, including corporations, associations,
partnerships, limited liability companies, limited liability
partnerships, consortia, not-for-profit, or other legal entities will
also be able to be a cooperative agreement holder'' in section IV of
the proposed rule preamble is inaccurate. The respondent indicated that
the term ``eligible entity'' refers to the entities that may be served
by cooperative agreement holders. The respondent also indicated that
``(as defined in 10 U.S.C. 4951)'' added to DFARS clause 252.205-
7000(a) is misleading, as ``business entities'' are the recipients of
procurement technical assistance, not the providers.
Response: Subsection (1) of 10 U.S.C. 4951 defines the term
``eligible entity'' to mean a state, local government, nonprofit
organization, and tribal organization. Subsection (5) of 10 U.S.C. 4951
defines the term ``business entity'' to mean a corporation,
association, partnership, limited liability company, limited liability
partnership, consortia, not-for-profit, or other legal entity. The
statute at 10 U.S.C. 4952 specifies that the purpose of the PTAP is, in
part, to increase assistance provided by DoD to ``eligible entities''
furnishing procurement technical assistance to ``business entities''.
Therefore, the referenced statement in section IV of the proposed rule
preamble is inaccurate and is corrected in this final rule. However,
the parenthetical ``as defined in 10 U.S.C. 4951'' in the contract
clause at DFARS 252.205-7000, Provision of Information to Cooperative
Agreement Holders, is accurate as ``business entities'' in this context
refers to those entities that may receive assistance.
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 final rule amends the clause at DFARS 252.205-7000, Provision
of Information to Cooperative Agreement Holders. However, this final
rule does not impose any new requirements on contracts at or below the
SAT, for commercial products including COTS items, or for commercial
services. The clause will continue to not apply to acquisitions at or
below the SAT, and will continue to apply to acquisitions of commercial
products excluding COTS items, and to acquisitions of commercial
services.
IV. Expected Impact of the Rule
This final rule is expected to impact DoD contractors whose
contracts include the clause at DFARS 252.205-7000. The clause requires
contractors to provide cooperative agreement holders under the PTAP,
upon request, with a list of the contractor's employees or offices
responsible for entering into subcontracts under defense contracts. As
a result of this final rule, such contractors may be required to
provide the list to different entities that are cooperative agreement
holders under the PTAP.
The changes in section 853 allow any type of nonprofit organization
to be a cooperative agreement holder under the PTAP. In addition,
section 853 provides a definition of ``business entities'' to specify
the entities that may receive assistance under the PTAP, including
corporations, associations, partnerships, limited liability companies,
limited liability partnerships, consortia, not-for-profit, or other
legal entities. These changes are reflected in the revisions to the
clause at DFARS 252.205-7000. As a result, there may be increases in
the number of entities that become cooperative agreement holders and in
the number of business entities that receive assistance under the PTAP.
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
[[Page 82189]]
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.
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 as defined by 5 U.S.C. 804.
VII. 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 final rule is necessary to implement section 853 of the
National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2024
(Pub. L. 118-31; 10 U.S.C. 4951). Section 853 modifies the definitions
of ``nonprofit organization'' and ``business entities'' at 10 U.S.C.
4951 for the Procurement Technical Assistance Program. The objective of
this rule is to implement the revised definitions in the contract
clause at DFARS 252.205-7000, Provision of Information to Cooperative
Agreement Holders. The clause requires contractors to provide
cooperative agreement holders under the Procurement Technical
Assistance Program, upon request, with a list of the contractor's
employees or offices responsible for entering into subcontracts under
defense contracts.
There were no significant issues raised by the public comments in
response to the initial regulatory flexibility analysis.
According to data from the Procurement Business Intelligence
Service, in the last three fiscal years, DoD awarded contracts that
included the clause at 252.205-7000 to unique small entities as
follows: 5,652 in fiscal year 2021, 5,127 in fiscal year 2022, and
5,663 in fiscal year 2023. This averages out to approximately 5,480 per
fiscal year. Therefore, DoD estimates that the number of small entities
to which this rule will apply is approximately 5,480.
This rule does not include any new reporting, recordkeeping, or
other compliance requirements for small entities.
There are no known significant alternative approaches that would
accomplish the stated objectives.
VIII. Paperwork Reduction Act
The Paperwork Reduction Act (44 U.S.C. chapter 35) applies to this
final rule. However, these changes to the DFARS do not impose
additional information collection requirements to the paperwork burden
previously approved by the Office of Management and Budget (OMB) under
OMB Control Number 0704-0286, entitled Defense FAR Supplement (DFARS)
Part 205, Publicizing Contract Actions, and DFARS 252.205-7000,
Provision of Information to Cooperative Agreement Holders.
List of Subjects in 48 CFR Part 252
Government procurement.
Jennifer D. Johnson,
Editor/Publisher, Defense Acquisition Regulations System.
Therefore, the Defense Acquisition Regulations System amends 48 CFR
part 252 as follows:
PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
0
1. The authority citation for 48 CFR part 252 continues to read as
follows:
Authority: 41 U.S.C. 1303 and 48 CFR chapter 1.
0
2. Revise and republish section 252.205-7000 to read as follows:
252.205-7000 Provision of Information to Cooperative Agreement
Holders.
As prescribed in 205.470, use the following clause:
Provision of Information to Cooperative Agreement Holders (OCT 2024)
(a) Definition. As used in this clause--
Cooperative agreement holder means a State or local government;
a nonprofit organization; a tribal organization (as defined in
section 4(c) of the Indian Self-Determination and Education
Assistance Act (25 U.S.C. 5304(l))); or an economic enterprise (as
defined in section 3(e) of the Indian Financing Act of 1974 (25
U.S.C. 1452(e))) whether such economic enterprise is organized for
profit or nonprofit purposes; which has an agreement with the Under
Secretary of Defense for Acquisition and Sustainment to furnish
procurement technical assistance to business entities (as defined in
10 U.S.C. 4951).
(b) The Contractor shall provide cooperative agreement holders,
upon their request, with a list of those appropriate employees or
offices responsible for entering into subcontracts under defense
contracts. The list shall include the business address, telephone
number, and area of responsibility of each employee or office.
(c) The Contractor need not provide the listing to a particular
cooperative agreement holder more frequently than once a year.
(End of clause)
[FR Doc. 2024-23227 Filed 10-9-24; 8:45 am]
BILLING CODE 6001-FR-P
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</html>Indexed from Federal Register on October 10, 2024.
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