Federal Register / Vol. 76, No. 41 / Wednesday, March 2, 2011 / Proposed Rules 11411 

contracts, especially for acquisitions 

moving from development to 

production. 

(2) The contracting officer shall pay 

particular attention to share lines and 

ceiling prices for fixed-price incentive 

(firm target) contracts, with a 120 

percent ceiling and a 50/50 share ratio 

as the default arrangement. 

[FR Doc. 2011–4527 Filed 3–1–11; 8:45 am] 

BILLING CODE 5001–08–P 

DEPARTMENT OF DEFENSE 

Defense Acquisition Regulations 

System 

48 CFR Part 217 

RIN 0750–AG89 

Defense Federal Acquisition 

Regulation Supplement; Multiyear 

Contracting (DFARS Case 2009–D026) 

AGENCY: Defense Acquisition 

Regulations System, Department of 

Defense (DoD). 

ACTION: Proposed rule. 

SUMMARY: DoD is proposing to amend 

the Defense Federal Acquisition 

Regulation Supplement (DFARS) to 

update and clarify the requirements for 

multiyear contracting. No statutory 

changes are incorporated in this 

proposed rule. 

DATES: Comments on the proposed rule 

should be submitted in writing to the 

address shown below on or before May 

2, 2011, to be considered in the 

formation of the final rule. 

ADDRESSES: Submit comments 

identified by DFARS Case 2009–D026, 

using any of the following methods: 

Æ Regulations.gov: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments. 

Æ E-mail: dfars@osd.mil. Include 

DFARS Case 2009–D026 in the subject 

line of the message. 

Æ Fax: (703) 602–0350. 

Æ Mail: Defense Acquisition 

Regulations System, Attn: Manual 

Quinones, OUSD (AT&L) DPAP (DARS), 

Room 3B855, 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 http://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: 

Manual Quinones, Telephone (703) 

602–1302. 

SUPPLEMENTARY INFORMATION: 

I. Background 

This DFARS case was initiated by 

DoD based on an internal DoD policy 

decision to perform a comprehensive 

review of DFARS subpart 217.1, 

Multiyear Contracting to update and 

clarify the requirements relating to 

multiyear contracting. This effort 

includes reorganizing existing coverage 

for multiyear acquisitions, such as the 

co-location of basic congressional 

notification requirements under 

217.170, General. Additionally, the 

contents of 217.173, Multiyear contracts 

for weapons systems and 217.174, 

Multiyear contracts that employ 

economic order quantity procurement, 

are merged into 217.170, General, and 

217.172, Multiyear contracts for 

supplies. The requirements governing 

multiyear contracts for military family 

housing, currently at 217.171(b), are 

separated out and highlighted as a new 

section 217.173, entitled ‘‘Multiyear 

contracting for military family housing.’’ 

Citations to the United States Code, 

relevant DoD regulations, and the 

Federal Acquisition Regulation have 

been updated. No changes to existing 

DoD policy, including implementation 

of any statutorily mandated acquisitionrelated thresholds, are being made in 

this rule. 

II. Executive Order 12866 

This rule was not subject to Office of 

Management and Budget review under 

Executive Order 12866, dated 

September 30, 1993. This rule is not a 

major rule under 5 U.S.C. 804. 

III. Regulatory Flexibility Act 

DoD does not expect this rule to have 

an economic impact on small entities 

within the meaning of the Regulatory 

Flexibility Act, 5 U.S.C. 601, et seq., 

because the rule does not change the 

existing requirements of subpart 217.1. 

Further, these requirements are 

primarily internal procedures for DoD. 

Therefore, DoD has not performed an 

initial regulatory flexibility analysis. 

DoD invites comments from small 

business concerns and other interested 

parties on the expected impact of this 

rule on small entities. 

DoD will also consider comments 

from small entities concerning the 

existing regulations in subparts affected 

by this rule in accordance with 5 U.S.C. 

610. Interested parties must submit such 

comments separately and should cite 5 

U.S.C. 610 (DFARS Case 2009–D026) in 

correspondence. 

IV. Paperwork Reduction Act 

This rule does not impose 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 217 

Government procurement. 

Mary Overstreet, 

Editor, Defense Acquisition Regulations 

System. 

Therefore, 48 CFR part 217 is 

proposed to be amended as follows: 

PART 217—SPECIAL CONTRACTING 

METHODS 

1. The authority citation for 48 CFR 

part 217 continues to read as follows: 

Authority: 41 U.S.C. 1303 and 48 CFR 

chapter 1. 

2. Section 217.170 is amended by— 

a. Redesignating paragraphs (a), (b), 

(c), (d), and (e) as paragraphs (b), (c), (d), 

(e), and (f), respectively; 

b. Adding a new paragraph (a); 

c. Amending redesignated paragraph 

(b) by removing ‘‘Public Law 105–56’’ 

and adding in its place ‘‘Pub. L. 105–56,’’ 

and removing ‘‘Section’’ and adding in 

its place ‘‘section’’; 

d. Amending redesignated paragraph 

(c) by removing ‘‘217.172(f)(2)’’ and 

adding in its place ‘‘217.172(g)(2)’’; 

e. Revising redesignated paragraph 

(d); and 

f. Revising redesignated paragraph (f). 

The additions and revisions read as 

follows: 

217.170 General. 

(a) This section explains the general 

rules that are common to all multiyear 

contracts. 

* * * * * 

(d) The head of the agency must 

provide written notice to the 

congressional defense committees at 

least 10 days before termination of any 

multiyear contract (10 U.S.C. 

2306b(1)(6), 10 U.S.C. 2306c(d)(3), 

section 8008(a) of Pub. L. 105–56, and 

similar sections in subsequent DoD 

appropriations acts). 

* * * * * 

(f)(1) DoD must provide notification to 

the congressional defense committees at 

least 30 days before entering into a 

multiyear contract for certain 

procurements, including those expected 

to— 

(i) Employ an unfunded contingent 

liability in excess of $20 million (see 10 

U.S.C. 2306b(1)(1)(B)(i)(II), 10 U.S.C. 

2306(d)(1), and section 8008(a) of Pub. 


emcdonald on DSK2BSOYB1PROD with PROPOSALS
11412 Federal Register / Vol. 76, No. 41 / Wednesday, March 2, 2011 / Proposed Rules 

L. 105–56 and similar sections in 

subsequent DoD appropriations acts); 

(ii) Employ economic-order-quantity 

procurement in excess of $20 million in 

any one year of the contract (see 10 

U.S.C. 2306b(1)(1)(B)(i)(I)); 

(iii) Involve a contract for advance 

procurement leading to a multiyear 

contract that employs economic order 

quantity procurement in excess of $20 

million in any one year (see 10 U.S.C. 

2306b(1)(1)(B)(ii) and section 8008(a) of 

Pub. L. 105–56 and similar sections in 

subsequent DoD appropriations acts); or 

(iv) Include a cancellation ceiling in 

excess of $100 million (see 10 U.S.C. 

2306c(d)(4), 10 U.S.C. 2306b(g), and 

section 8008(a) of Pub. L. 105–56 and 

similar sections in subsequent DoD 

appropriations acts). 

(2) A DoD component must submit a 

request for authority to enter into a 

multiyear contract described in 

paragraphs (f)(1)(i) through (iv) of this 

section as part of the component’s 

budget submission for the fiscal year in 

which the multiyear contract will be 

initiated. DoD will include the request, 

for each candidate it supports, as part of 

the President’s Budget for that year and 

in the Appendix to that budget as part 

of proposed legislative language for the 

appropriations bill for that year (section 

8008(b) of Pub. L. 105–56). 

(3) If the advisability of using a 

multiyear contract becomes apparent 

too late to satisfy the requirements in 

paragraph (f)(2) of this section, the 

request for authority to enter into a 

multiyear contract must be— 

(i) Formally submitted by the 

President as a budget amendment; or 

(ii) Made by the Secretary of Defense, 

in writing, to the congressional defense 

committees (section 8008(b) of Pub. L. 

105–56). 

(4) Agencies must establish reporting 

procedures to meet the congressional 

notification requirements of paragraph 

(f)(1) of this section. The head of the 

agency must submit a copy of each 

notice to the Director of Defense 

Procurement and Acquisition Policy, 

Office of the Under Secretary of Defense 

(Acquisition, Technology, and Logistics) 

(OUSD (AT&L) DPAP) and to the 

Deputy Under Secretary of Defense 

(Comptroller) (Program/Budget) 

(OUSD(C)(P/B)). 

(5) If the budget for a contract that 

contains a cancellation ceiling in excess 

of $100 million does not include 

proposed funding for the costs of 

contract cancellation up to the 

cancellation ceiling established in the 

contract— 

(i) The notification required by 

paragraph (f)(1) of this section shall 

include— 

(A) The cancellation ceiling amounts 

planned for each program year in the 

proposed multiyear contract, together 

with the reasons for the amounts 

planned; 

(B) The extent to which costs of 

contract cancellation are not included in 

the budget for the contract; and 

(C) A financial risk assessment of not 

including budgeting for costs of contract 

cancellation (10 U.S.C. 2306b(g) and 10 

U.S.C. 2306c(d)); and 

(ii) The head of the agency shall 

provide copies of the notification to the 

Office of Management and Budget at 

least 14 days before contract award. 

3. Section 217.171 is revised to read 

as follows: 

217.171 Multiyear contracts for services. 

(a) The head of the agency may enter 

into a multiyear contract for a period of 

not more than five years for the 

following types of services (and items of 

supply relating to such services), even 

though funds are limited by statute to 

obligation only during the fiscal year for 

which they were appropriated (10 

U.S.C. 2306c). Covered services are— 

(1) Operation, maintenance, and 

support of facilities and installations; 

(2) Maintenance or modification of 

aircraft, ships, vehicles, and other 

highly complex military equipment; 

(3) Specialized training requiring 

high-quality instructor skills (e.g., 

training for pilots and aircrew members 

or foreign language training); 

(4) Base services (e.g., ground 

maintenance, in-plane refueling, bus 

transportation, and refuse collection and 

disposal); and 

(5) Environmental remediation 

services for— 

(i) An active military installation; 

(ii) A military installation being 

closed or realigned under a base closure 

law as defined in 10 U.S.C. 2667(h)(2); 

or 

(iii) A site formerly used by DoD. 

(b) The head of the agency must be 

guided by the following principles 

when entering into a multiyear contract 

for services: 

(1) The portion of the cost of any 

plant or equipment amortized as a cost 

of contract performance should not 

exceed the ratio between the period of 

contract performance and the 

anticipated useful commercial life of the 

plant or equipment. As used in this 

section, ‘‘useful commercial life’’ means 

the commercial utility of the facilities 

rather than the physical life, with due 

consideration given to such factors as 

the location, specialized nature, and 

obsolescence of the facilities. 

(2) Consider the desirability of 

obtaining an option to extend the term 

of the contract for a reasonable period 

not to exceed three years at prices that 

do not include charges for plant, 

equipment, or other nonrecurring costs 

already amortized. 

(3) Consider the desirability of 

reserving the right to take title, under 

the appropriate circumstances, to the 

plant or equipment upon payment of the 

unamortized portion of the cost. 

(c) Before entering into a multiyear 

contract for services, the head of the 

agency must make a written 

determination that— 

(1) There will be a continuing 

requirement for the services consistent 

with current plans for the proposed 

contract period; 

(2) Furnishing the services will 

require— 

(i) A substantial initial investment in 

plant or equipment; or 

(ii) The incurrence of substantial 

contingent liabilities for the assembly, 

training, or transportation of a 

specialized work force; and 

(3) Using a multiyear contract will 

promote the best interests of the United 

States by encouraging effective 

competition and promoting economies 

in operations. 

4. Section 217.172 is revised to read 

as follows: 

217.172 Multiyear contracts for supplies. 

(a) This section applies to all 

multiyear contracts for supplies, 

including weapon systems and other 

multiyear acquisitions specifically 

authorized by law (10 U.S.C. 2306b). 

(b) The head of the agency may enter 

into a multiyear contract for supplies if, 

in addition to the conditions listed in 

FAR 17.105–1(b), the use of such a 

contract will promote the national 

security of the United States (10 U.S.C. 

2306b(a)(6)). 

(c) Multiyear contracts in amounts 

exceeding $500 million must be 

specifically authorized by law (10 

U.S.C. 2306b and 10 U.S.C. 2306c). A 

multiyear supply contract may be 

authorized by an appropriations act or 

a law other than an appropriations act 

(10 U.S.C. 2306b(i)(3) and (1)(3)). 

(d) The head of the agency shall not 

enter into a multiyear contract unless— 

(1) The Secretary of Defense has 

submitted to Congress a budget request 

for full funding of units to be procured 

through the contract; and 

(2) In the case of a contract for 

procurement of aircraft, the budget 

request includes full funding of 

procurement funds for production 

beyond advance procurement activities 

of aircraft units to be produced in the 

fiscal year covered by the budget. 

(e)(1) The head of the agency must not 

enter into or extend a multiyear contract 


emcdonald on DSK2BSOYB1PROD with PROPOSALS
Federal Register / Vol. 76, No. 41 / Wednesday, March 2, 2011 / Proposed Rules 11413 

that exceeds $500 million (when 

entered into or extended until the 

Secretary of Defense identifies the 

contract and any extension in a report 

submitted to the congressional defense 

committees (10 U.S.C. 2306b(1)(5)). 

(2) In addition, for contracts equal to 

or greater than $500 million, the head of 

the contracting activity must determine 

that the conditions required by 

paragraphs (g)(2)(i) through (vii) of this 

section will be met by such contract, in 

accordance with the Secretary’s 

certification and determination required 

by paragraph (g)(2) of this section (10 

U.S.C. 2306b(a)(1)(7)). 

(f) The head of the agency may enter 

into a multiyear contract for— 

(1) A weapon system and associated 

items, services, and logistics support for 

a weapon system; and 

(2) Advance procurement of 

components, parts, and materials 

necessary to manufacture a weapon 

system, including advance procurement 

to achieve economic lot purchases or 

more efficient production rates (see 

217.172(g)(4) and (5) regarding 

economic order quantity procurements). 

Before initiating an advance 

procurement, the contracting officer 

must verify that it is consistent with 

DoD policy (e.g., the full funding policy 

in Volume 2A, chapter 1, of DoD 

7000.14–R, Financial Management 

Regulation). 

(g) The head of the agency shall 

ensure that the following conditions are 

satisfied before awarding a multiyear 

contract under the authority described 

in paragraph (b) of this section: 

(1) The multiyear exhibits required by 

DoD 7000.14–R, Financial Management 

Regulation, are included in the agency’s 

budget estimate submission and the 

President’s budget request. 

(2) The Secretary of Defense certifies 

to Congress in writing, by no later than 

March 1 of the year in which the 

Secretary requests legislative authority 

to enter into such contracts, that each of 

the conditions in paragraphs (g)(2)(i) 

through (vii) of this section is satisfied 

(10 U.S.C. 2306b(i)(1)(A) through (G)). 

(i) The Secretary has determined that 

each of the requirements in FAR 17.105, 

paragraphs (b)(1) through (b)(5) will be 

met by such contract and has provided 

the basis for such determination to the 

congressional defense committees (10 

U.S.C. 2306b(i)(1)(A)). 

(ii) The Secretary’s determination 

under paragraph (g)(2)(i) of this section 

was made after the completion of a cost 

analysis performed by the Defense Cost 

and Resource Center of the Department 

of Defense and such analysis supports 

the findings (10 U.S.C. 2306b(i)(1)(B)). 

(iii) The system being acquired 

pursuant to such contract has not been 

determined to have experienced cost 

growth in excess of the critical cost 

growth threshold pursuant to 10 USC 

2433(d) within five years prior to the 

date the Secretary anticipates such 

contract (or a contract for advance 

procurement entered into consistent 

with the authorization for such contract) 

will be awarded (10 U.S.C. 

2306b(i)(1)(C)). 

(iv) A sufficient number of end items 

of the system being acquired under such 

contract have been delivered at or 

within the most current estimates of the 

program acquisition unit cost or 

procurement unit cost for such system 

to determine that current estimates of 

such unit costs are realistic (10 U.S.C. 

2306b(i)(1)(D)). 

(v) Sufficient funds will be available 

in the fiscal year in which the contract 

is to be awarded to perform the contract, 

and the future-years defense program for 

such fiscal year will include the funding 

required to execute the program without 

cancellation (10 U.S.C. 2306b(i)(1)(E)). 

(vi) The contract is a fixed price type 

contract (10 U.S.C. 2306b(i)(1)(F)). 

(vii) The proposed multiyear contract 

provides for production at not less than 

minimum economic rates, given the 

existing tooling and facilities. The head 

of the agency shall submit to USD(C)(P/ 

B) information supporting the agency’s 

determination that this requirement has 

been met (10 U.S.C. 2306b(i)(1)(G)). 

(viii) The head of the agency shall 

submit information supporting this 

certification to USD(C)(P/B) for 

transmission to Congress through the 

Secretary of Defense. 

(A) The head of the agency shall, as 

part of this certification, give written 

notification to the congressional defense 

committees of— 

(1) The cancellation ceiling amounts 

planned for each program year in the 

proposed multiyear contract, together 

with the reasons for the amounts 

planned; 

(2) The extent to which costs of 

contract cancellation are not included in 

the budget for the contract; and 

(3) A financial risk assessment of not 

including the budgeting for costs of 

contract cancellation (10 U.S.C. 

2306b(g)); and 

(B) The head of the agency shall 

provide copies of the notification to the 

Office of Management and Budget at 

least 14 days before contract award. 

(3) The contract is for the 

procurement of a complete and usable 

end item (10 U.S.C. 2306b(i)(4)(A)). 

(4) Funds appropriated for any fiscal 

year for advance procurement are 

obligated only for the procurement of 

those long-lead items that are necessary 

in order to meet a planned delivery 

schedule for complete major end items 

that are programmed under the contract 

to be acquired with funds appropriated 

for a subsequent fiscal year (including 

an economic order quantity of such 

long-lead items when authorized by law 

(10 U.S.C. 2306b(i)(4)(B)). 

(5) The Secretary may make the 

certification under paragraph (g)(2) of 

this section notwithstanding the fact 

that one or more of the conditions of 

such certification are not met if the 

Secretary determines that, due to 

exceptional circumstances, proceeding 

with a multiyear contract under this 

section is in the best interest of the 

Department of Defense and the 

Secretary provides the basis for such 

determination with the certification (10 

U.S.C. 2306b(i)(5)). 

(6) The Secretary of Defense may not 

delegate this authority to make the 

certification under paragraph (g)(2) of 

this section or the determination under 

paragraph (g)(5) of this section to an 

official below the level of the Under 

Secretary of Defense for Acquisition, 

Technology, and Logistics (10 U.S.C. 

2306b(i)(6)). 

(7) The Secretary of Defense shall 

send a notification containing the 

findings of the agency head under FAR 

17.105(b), and the basis for such 

findings, 30 days prior to the award of 

a multiyear contract or a defense 

acquisition program that has been 

specifically authorized by law (10 

U.S.C. 2306b(i)(7)). 

(8) All other requirements of law are 

met and there are no other statutory 

restrictions on using a multiyear 

contract for the specific system or 

component (10 U.S.C. 2306b(i)(2)). One 

such restriction may be the achievement 

of specified cost savings. If the agency 

finds, after negotiations with the 

contractor(s), that the specified savings 

cannot be achieved, the head of the 

agency shall assess the savings that, 

nevertheless, could be achieved by 

using a multiyear contract. If the savings 

are substantial, the head of the agency 

may request relief from the law’s 

specific savings requirement. The 

request shall— 

(i) Quantify the savings that can be 

achieved; 

(ii) Explain any other benefits to the 

Government of using the multiyear 

contract; 

(iii) Include details regarding the 

negotiated contract terms and 

conditions; and 

(iv) Be submitted to 

OUSD(AT&L)DPAP for transmission to 

Congress via the Secretary of Defense 

and the President. 


emcdonald on DSK2BSOYB1PROD with PROPOSALS
11414 Federal Register / Vol. 76, No. 41 / Wednesday, March 2, 2011 / Proposed Rules 

(h) The Secretary of Defense may 

instruct the head of the agency 

proposing a multiyear contract to 

include in that contract negotiated 

priced options for varying the quantities 

of end items to be procured over the life 

of the contract (10 U.S.C. 2306b(j)). 

5. Section 217.173 is revised to read 

as follows: 

217.173 Multiyear contracts for military 

family housing. 

The head of the agency may enter into 

multiyear contracts for periods up to 

four years for supplies and services 

required for management, maintenance, 

and operation of military family housing 

and may pay the costs of such contracts 

for each year from annual 

appropriations for that year (10 U.S.C. 

2829). 

217.174 [Removed] 

6. Section 217.174 is removed. 

[FR Doc. 2011–4525 Filed 3–1–11; 8:45 am] 

BILLING CODE 5001–08–P 

DEPARTMENT OF DEFENSE 

Defense Acquisition Regulations 

System 

48 CFR Part 231 

Defense Federal Acquisition 

Regulation Supplement; Independent 

Research and Development Technical 

Descriptions (DFARS Case 2010–D011) 

AGENCY: Defense Acquisition 

Regulations System, Department of 

Defense (DoD). 

ACTION: Proposed rule. 

SUMMARY: DoD is proposing to amend 

the Defense Federal Acquisition 

Regulation Supplement (DFARS) to 

require contractors to report 

independent research and development 

(IR&D) projects generating annual costs 

in excess of $50,000. 

DATES: Comments on the proposed rule 

should be submitted in writing to the 

address shown below on or before May 

2, 2011, to be considered in the 

formation of the final rule. 

ADDRESSES: You may submit comments, 

identified by DFARS Case 2010–D011, 

using any of the following methods: 

Regulations.gov: http:// 

www.regulations.gov. 

Submit comments via the Federal 

eRulemaking portal by inputting 

‘‘DFARS Case 2010–D011’’ under the 

heading ‘‘Enter keyword or ID’’ and 

selecting ‘‘Search.’’ Select the link 

‘‘Submit a Comment’’ that corresponds 

with ‘‘DFARS Case 2010–D011.’’ Follow 

the instructions provided at the ‘‘Submit 

a Comment’’ screen. Please include your 

name, company name (if any), and 

‘‘DFARS Case 2010–D011’’ on your 

attached document. Follow the 

instructions for submitting comments. 

E-mail: dfars@osd.mil. Include 

DFARS Case 2010–D011 in the subject 

line of the message. 

Fax: 703–602–0350. 

Mail: Defense Acquisition Regulations 

System, Attn: Mr. Mark Gomersall, 

OUSD (AT&L) DPAP (DARS), Room 

3B855, 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 http://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: Mr. 

Mark Gomersall, 703–602–0302. 

SUPPLEMENTARY INFORMATION: 

I. Background 

This proposed rule revises 

requirements for reporting IR&D projects 

that generate annual costs in excess of 

$50,000 to the Defense Technical 

Information Center (DTIC). Beginning in 

the 1990s, DoD reduced its technical 

exchanges with industry, in part to 

ensure independence of IR&D. The 

result has been a loss of linkage between 

funding and technological purpose. The 

reporting requirements, as mandated by 

10 U.S.C. 2372, will provide in-process 

information from DoD-sponsored IR&D 

projects to increase effectiveness by 

providing visibility into the technical 

content of industry IR&D activities to 

meet DoD needs and promote the 

technical prowess of the industry. 

Without the collection of this 

information, DoD will be unable to 

maximize the value of the IR&D funds 

the Department disburses without 

infringing on the independence of 

contractors to choose which 

technologies to pursue in IR&D 

programs. 

II. Executive Order 12866, Regulatory 

Planning and Review 

This rule has been determined to be 

a significant regulatory action and 

therefore is subject to review under 

section 6(b) of Executive Order 12866, 

Regulatory Planning and Review, dated 

September 30, 1993. This rule is not a 

major rule under 5 U.S.C. 804. 

III. Regulatory Flexibility Act 

DoD has prepared an initial regulatory 

flexibility analysis consistent with 5 

U.S.C. 603. A copy of the analysis may 

be obtained from the point of contact 

specified herein. The analysis is 

summarized as follows: 

DoD does not expect this proposed 

rule 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 reporting the IR&D 

projects utilizing the DTIC on-line input 

form does not require contractors to 

expend significant effort or cost. 

Furthermore, the threshold for reporting 

annual IR&D costs in excess of $50,000, 

as set forth in the rule, ensures that the 

IR&D project reporting requirements 

will not apply to a significant number 

of small entities. 

At this time, DoD is unable to 

estimate the number of small entities to 

which this rule will apply. Therefore, 

DoD invites comments from small 

business concerns and other interested 

parties on the expected impact of this 

rule on small entities. 

DoD will also consider comments 

from small entities concerning the 

existing regulations in subparts affected 

by this rule in accordance with 5 U.S.C. 

610. Interested parties must submit such 

comments separately and should cite 5 

U.S.C. 610 (DFARS Case 2010–D011) in 

correspondence. 

IV. Paperwork Reduction Act 

The proposed rule contains new 

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). DoD invites public 

comments on the following aspects of 

the proposed rule: (a) Whether the 

proposed collection of information is 

necessary for the proper performance of 

the functions of DoD, including whether 

the information will have practical 

utility; (b) the accuracy of the estimate 

of the burden of the proposed 

information collection; (c) ways to 

enhance the quality, utility, and clarity 

of the information to be collected; and 

(d) ways to minimize the burden of the 

information collection on respondents, 

including the use of automated 

collection techniques or other forms of 

information technology. The following 

is a summary of the information 

collection requirement. 

Title: Defense Federal Acquisition 

Regulation Supplement (DFARS) Part 

231, Contract Cost Principles and 

Procedures. 

Type of Request: New collection. 

Number of Respondents: 700. 

Responses per Respondent: 38.5. 

Annual Responses: 26,950. 


emcdonald on DSK2BSOYB1PROD with PROPOSALS