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[Federal Register Volume 76, Number 75 (Tuesday, April 19, 2011)]
[Proposed Rules]
[Pages 21849-21850]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-8959]

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DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Part 213

RIN 0750-AH07

Defense Federal Acquisition Regulation Supplement; Ships Bunkers 
Easy Acquisition (SEA) Card[supreg] and Aircraft Ground Services (DFARS 
Case 2009-D019)

AGENCY: Defense Acquisition Regulations System, Department of Defense 
(DoD).

ACTION: Proposed rule.

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SUMMARY: DoD is proposing to amend the Defense Federal Acquisition 
Regulation Supplement (DFARS) to allow the use of U.S. Government fuel 
cards in lieu of a Purchase Order-Invoice-Voucher for fuel, oil, and 
refueling-related items for purchases not exceeding the simplified 
acquisition threshold.

DATES: Comments on the proposed rule should be submitted in writing to 
the address shown below on or before June 20, 2011, to be considered in 
the formation of the final rule.

ADDRESSES: You may submit comments, identified by DFARS Case 2009-D019, 
using any of the following methods:
    Regulations.gov: http://www.regulations.gov. Submit 
comments via the Federal eRulemaking portal by inputting ``DFARS Case 
2009-D019'' under the heading ``Enter keyword or ID'' and selecting 
``Search.'' Select the link ``Submit a Comment'' that corresponds with 
``DFARS Case 2009-D019.'' Follow the instructions provided at the 
``Submit a Comment'' screen. Please include your name, company name (if 
any), and ``DFARS Case 2009-D019'' on your attached document. Follow 
the instructions for submitting comments.
    E-mail: dfars@osd.mil. Include DFARS Case 2009-D019 in the subject 
line of the message.
    Fax: 703-602-0350.
    Mail: Defense Acquisition Regulations System, Attn: Mr. Dustin 
Pitsch, 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. Dustin Pitsch, Telephone: 703-602-
1014.

SUPPLEMENTARY INFORMATION: 

I. Background

    The military services and the U.S. Coast Guard have small vessels 
that must procure fuel away from their home stations. Due to their 
smaller size and unique mission requirements, these vessels are unable 
to use the Defense Energy Support Center (DESC) bunkers contracts at 
major seaports. Previously, DFARS 213.306(a)(1)(A) authorized only the 
use of the Aviation Into-plane Reimbursement (AIR) Card[supreg] up to 
the simplified acquisition threshold specifically for aviation fuel and 
oil. Refueling stops often include other ground refueling-related 
services that exceed the micro-purchase threshold. Due to port 
restrictions on vessel movements, bunkering merchants do not typically 
provide support to smaller vessels. These smaller vessels frequent 
``marina-type merchants.'' These small vessels fulfill valid mission 
needs in direct support of national security. Unlike larger vessels 
with more predictable movements, small vessels' needs are often 
unpredictable and far-reaching geographically.
    DoD proposes to add language at DFARS section 213.306(a)(1)(A) to 
include purchases of marine fuel, oil, and refueling-related items 
using the Ships Bunkers Easy Acquisition (SEA)

[[Page 21850]]

Card[supreg] in lieu of the SF 44, Purchase Order-Invoice-Voucher, up 
to the simplified acquisition threshold. Additionally, this section is 
revised to include additional ground refueling-related services when 
using the AIR Card[supreg]. These changes for use of the AIR 
Card[supreg] and SEA Card[supreg] will improve the refueling capability 
of aircraft and smaller vessels at non-contract locations.

II. Executive Order 12866 and Executive Order 13563

    Executive Orders 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). Executive 
Order 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 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 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 the rule does not have a significant effect beyond DoD's 
internal operating procedures, substituting use of a fuel card for the 
SF 44. However, an Initial Regulatory Flexibility Analysis has been 
prepared and is summarized as follows.
    This is a proposed rule to revise the Defense Federal Acquisition 
Regulation Supplement (DFARS) at 213 to allow the use of U.S. 
Government fuel cards in lieu of a Purchase Order-Invoice-Voucher for 
fuel, oil, and refueling-related items for purchases not exceeding the 
simplified acquisition threshold. The rule facilitates open market 
purchases and will not have a significant cost or administrative impact 
on contractors, subcontractors, or offerors.
    The objective of this rule is to amend the DFARS at 
213.306(a)(1)(A) to (1) permit the purchase of marine fuel using the 
Ships' bunkers Easy Acquisition (SEA) Card[supreg] in lieu of the SF44, 
Purchase Order-Invoice-Voucher, up to the simplified acquisition 
threshold and (2) provide additional ground refueling-related services 
when using the AIR Card[supreg].
    Purchases of aviation fuel are on-the-spot, over the counter 
transactions (``gas and go''), but generally exceed the micro-purchase 
threshold due to the price of aviation fuel and oil fuel tank 
capacities. Accordingly, the threshold for SF44/AIR Card[supreg] 
purchases of fuel and oil was set at the simplified acquisition 
threshold (SAT) (at DFARS 213.306(1)(1)(A)) under DFARS Case 2007-D017 
(final rule effective date February 12, 2007).
    The military services and the U.S. Coast Guard have small vessels 
that fulfill valid mission needs in direct support of national 
security. Unlike larger vessels, small vessels' movements and needs are 
often unpredictable. These small vessels must procure fuel away from 
their home stations, but because of their smaller size and unique 
mission requirements are unable to use the Defense Logistics Agency 
energy bunkers contracts available at major seaports. Due to port 
restrictions, bunkering merchants do not typically provide support to 
smaller vessels. Instead, these smaller vessels frequent non-contract 
merchants or ``marina-type merchants'' that otherwise serve civilian 
recreational watercraft and similar needs.
    Under final DFARS Case 2006-D017, DoD established the threshold for 
purchases of the AIR Card[supreg] as an electronic replacement for the 
SF44. Presently, DFARS 213.306(a)(1)(A) authorizes only the use of the 
Aviation Into-plane Reimbursement (AIR) Card[supreg] up to the 
simplified acquisition threshold to procure aviation fuel and oil. 
However, refueling stops often include other required ground refueling-
related services that exceed the micro-purchase threshold. The proposed 
changes to DFARS subpart 213.306 will permit use of the fuel cards up 
to the simplified acquisition threshold for other ground refueling-
related services and for smaller Navy, Coast Guard, and Army (to 
include Corp of Engineers) vessels to procure marine fuel while away 
from their home station.
    Approximately 80% of ``marina-type merchants'' are considered small 
businesses. Marina-type merchants accepting the SEA Card[supreg] will 
pay a normal fee to the banking institution or processing center, 
similar to VISA charges these merchants incur from other credit card 
clients. In addition, merchants are expected to benefit from 
accelerated payments, since they will be paid by the banking 
institution in accordance with their merchant agreement. The rule 
facilitates open market purchases, benefits merchants by making it much 
easier for merchants to do business with the military and will not have 
a significant cost or administrative impact on contractors, 
subcontractors, or offerors.
    DoD does not expect this 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 the rule 
does not have a significant effect beyond DoD's internal operating 
procedures, substituting the use of a fuel card (AIR Card[supreg] and 
SEA Card[supreg]) in lieu of the SF44, Purchase Order-Invoice-Voucher.
    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-D019) in 
correspondence.

IV. Paperwork Reduction Act

    This 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 213

    Government procurement.

Mary Overstreet,
Editor, Defense Acquisition Regulations System.
    Therefore, 48 CFR part 213 is proposed to be amended as follows:

PART 213--SIMPLIFIED ACQUISITION PROCEDURES

    1. The authority citation for 48 CFR part 213 continues to read as 
follows:

    Authority:  41 U.S.C. 1303 and 48 CFR chapter 1.
    2. In section 213.306, revise paragraph (a)(1)(A) to read as 
follows:

213.306   SF44, Purchase Order-Invoice-Voucher.

    (a)(1) * * *
    (A) Fuel and oil. U.S. Government fuel cards may be used in lieu of 
an SF44 for fuel, oil, and authorized refueling-related items (see PGI 
213.306 for procedures on use of fuel cards);
* * * * *

[FR Doc. 2011-8959 Filed 4-18-11; 8:45 am]
BILLING CODE 5001-08-P
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