29980 Federal Register / Vol. 80, No. 100 / Tuesday, May 26, 2015 / Rules and Regulations 

V. Ordering Clauses 

16. Accordingly, it is ordered that, 

pursuant to sections 1, 4(i)–4(j), 5, 251, 

and 303(r) of the Communications Act 

of 1934, as amended, 47 U.S.C. 151, 

154(i)–(j), 155, 251, 303(r), this Order 

approving the North American 

Numbering Council’s recommendation 

to revise the ‘‘Cancel Flows’’ in the 

Local Number Portability Provisioning 

Flows, WC Docket No. 07–244, CC 

Docket Nos. 95–116 and 99–200, is 

adopted. 

17. It is further ordered that, pursuant 

to sections 1, 4(i)–4(j), 5, 251, and 303(r) 

of the Communications Act of 1934, as 

amended, 47 U.S.C. 151, 154(i)–(j), 155, 

251, 303(r), this Order approving the 

North American Numbering Council’s 

recommendation to revise the 

‘‘Disconnect Process for Ported 

Telephone Numbers’’ in the Local 

Number Portability Provisioning Flows, 

WC Docket No. 07–244, CC Docket Nos. 

95–116 and 99–200, is adopted. 

18. It is further ordered that, pursuant 

to sections 1, 4(i)–4(j), 5, 251, and 303(r) 

of the Communications Act of 1934, as 

amended, 47 U.S.C. 151, 154(i)–(j), 155, 

251, 303(r), this Order approving the 

North American Numbering Council’s 

recommendation to accept Best Practice 

65 and the corresponding revisions to 

the Local Number Portability 

Provisioning flows, and denying the 

North American Numbering Council’s 

recommendation to accept Best Practice 

30, WC Docket No. 07–244, CC Docket 

Nos. 95–116 and 99–200, is adopted. 

19. It is further ordered that this Order 

shall become effective 30 days after 

publication in the Federal Register. 

Federal Communications Commission. 

Sanford S. Williams, 

Assistant Chief, Competition Policy Division, 

Wireline Competition Bureau. 

[FR Doc. 2015–12633 Filed 5–22–15; 8:45 am] 

BILLING CODE 6712–01–P 

DEPARTMENT OF DEFENSE 

Defense Acquisition Regulations 

System 

48 CFR Part 216 

RIN 0750–AI56 

Defense Federal Acquisition 

Regulation Supplement: Approval 

Threshold for Time-and-Materials and 

Labor-Hour Contracts (DFARS Case 

2014–D020) 

AGENCY: Defense Acquisition 

Regulations System, Department of 

Defense (DoD). 

ACTION: Final rule. 

SUMMARY: DoD is issuing a final rule 

amending the Defense Federal 

Acquisition Regulation Supplement 

(DFARS) to establish the level of 

approval required for a determination 

and findings for time-and-materials and 

labor-hour contracts, or portions of 

contracts, exceeding $1 million. 

DATES: Effective May 26, 2015. 

FOR FURTHER INFORMATION CONTACT: Ms. 

Jennifer Johnson, telephone 571–372– 

6176. 

SUPPLEMENTARY INFORMATION: 

I. Background 

DoD is issuing a final rule amending 

the DFARS to establish the level of 

approval required for a determination 

and findings (D&F) for time-andmaterials and labor-hour contracts, or 

portions of contracts, exceeding $1 

million. The D&F must address why 

cost-plus-fixed-fee and other contract 

types are not appropriate. The approval 

requirements in this rule do not apply 

to contracts that support contingency or 

peacekeeping operations, or that 

provide humanitarian assistance, 

disaster relief, or recovery from 

conventional, nuclear, biological, 

chemical, or radiological attack. 

II. Publication of This Final Rule for 

Public Comment Is Not Required by 

Statute 

‘‘Publication of proposed 

regulations’’, 41 U.S.C. 1707, is the 

statute which applies to the publication 

of the Federal Acquisition Regulation. 

Paragraph (a)(1) of the statute requires 

that a procurement policy, regulation, 

procedure or form (including an 

amendment or modification thereof) 

must be published for public comment 

if it relates to the expenditure of 

appropriated funds, and has either a 

significant effect beyond the internal 

operating procedures of the agency 

issuing the policy, regulation, procedure 

or form, or has a significant cost or 

administrative impact on contractors or 

offerors. This final rule is not required 

to be published for public comment 

because it pertains to requirements for 

internal documentation within DoD, 

specifically, determination and findings 

for use of the time-and-materials and 

labor-hour contract types. These 

requirements affect only the internal 

operating procedures of the 

Government. This final rule is not 

required to be published for public 

comment, because it has no effect 

beyond the internal operating 

procedures of DoD, and has no cost or 

administrative impact on contractors or 

offerors. 

III. 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. This 

rule is not a major rule under 5 U.S.C. 

804. 

IV. Regulatory Flexibility Act 

The Regulatory Flexibility Act does 

not apply to this rule because this final 

rule does not constitute a significant 

DFARS revision within the meaning of 

FAR 1.501–1, and 41 U.S.C. 1707 does 

not require publication for public 

comment. 

V. 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 Part 216 

Government procurement. 

Amy G. Williams, 

Editor, Defense Acquisition Regulations 

System. 

Therefore, 48 CFR part 216 is 

amended as follows: 

PART 216—TYPES OF CONTRACTS 

■ 1. The authority citation for 48 CFR 

part 216 continues to read as follows: 

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

chapter 1. 

■ 2. Section 216.601 is amended by 

revising paragraph (d) to read as 

follows: 

216.601 Time-and-materials contracts. 

(d) Limitations. 

(i)(A) Approval of determination and 

findings for time-and-materials or laborhour contracts. 

(1) Base period plus any option 

periods is three years or less. 

(i) For contracts (including indefinitedelivery contracts) and orders in which 


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Federal Register / Vol. 80, No. 100 / Tuesday, May 26, 2015 / Rules and Regulations 29981 

the portion of the requirement 

performed on a time-and-materials or 

labor-hour basis exceeds $1 million, the 

approval authority for the determination 

and findings shall be the senior 

contracting official within the 

contracting activity. This authority may 

not be delegated. 

(ii) For contracts (including 

indefinite-delivery contracts) and orders 

in which the portion of the requirement 

performed on a time-and-materials or 

labor-hour basis is less than or equal to 

$1 million, the determination and 

findings shall be approved one level 

above the contracting officer. 

(2) Base period plus any option 

periods exceeds three years. The 

authority of the head of the contracting 

activity to approve the determination 

and findings may not be delegated. 

(3) Exception. The approval 

requirements in paragraphs (d)(i)(A)(1) 

and (2) of this section do not apply to 

contracts that— 

(i) Support contingency or 

peacekeeping operations; or 

(ii) Provide humanitarian assistance, 

disaster relief, or recovery from 

conventional, nuclear, biological, 

chemical, or radiological attack. 

(B) Content of determination and 

findings. The determination and 

findings shall contain sufficient facts 

and rationale to justify that no other 

contract type is suitable. At a minimum, 

the determination and findings shall— 

(1) Include a description of the market 

research conducted; 

(2) Establish that it is not possible at 

the time of placing the contract or order 

to accurately estimate the extent or 

duration of the work or to anticipate 

costs with any reasonable degree of 

certainty; 

(3) Address why a cost-plus-fixed-fee 

term or other cost-reimbursement, 

incentive, or fixed-price contract or 

order is not appropriate; for contracts 

(including indefinite-delivery contracts) 

and orders for noncommercial items 

awarded to contractors with adequate 

accounting systems, a cost-plus-fixedfee term contract type shall be preferred 

over a time-and-materials or labor-hour 

contract type; 

(4) Establish that the requirement has 

been structured to minimize the use of 

time-and-materials and labor-hour 

requirements (e.g., limiting the value or 

length of the time-and-materials or 

labor-hour portion of the contract or 

order; establishing fixed prices for 

portions of the requirement); and 

(5) Describe the actions planned to 

minimize the use of time-and-materials 

and labor-hour contracts on future 

acquisitions for the same requirements. 

(C) Indefinite-delivery contracts. For 

indefinite-delivery contracts, the 

contracting officer shall structure 

contracts that authorize time-andmaterials orders or labor-hour orders to 

also authorize orders on a costreimbursement, incentive, or fixed-price 

basis, to the maximum extent 

practicable. 

* * * * * 

[FR Doc. 2015–12341 Filed 5–22–15; 8:45 am] 

BILLING CODE 5001–06–P 

DEPARTMENT OF DEFENSE 

Defense Acquisition Regulations 

System 

48 CFR Part 217 

RIN 0750–AI37 

Defense Federal Acquisition 

Regulation Supplement: Multiyear 

Contracts—Statutory References and 

Cancellation Ceiling Threshold 

(DFARS Case 2014–D019) 

AGENCY: Defense Acquisition 

Regulations System, Department of 

Defense (DoD). 

ACTION: Final rule. 

SUMMARY: DoD is issuing a final rule 

amending the Defense Federal 

Acquisition Regulation Supplement 

(DFARS) to update the cancellation 

ceiling threshold for multiyear contracts 

and to correct statutory references. 

DATES: Effective May 26, 2015. 

FOR FURTHER INFORMATION CONTACT: 

Jennifer Hawes, telephone 571–372– 

6115. 

SUPPLEMENTARY INFORMATION: 

I. Background 

DoD published a proposed rule in the 

Federal Register at 79 FR 65331 on 

September 19, 2014, to amend the 

DFARS regarding multiyear contracts to 

update the cancellation ceiling 

threshold at DFARS 217.170(e)(1)(iv) for 

consistency with the Federal 

Acquisition Regulation and correct 

statutory references. The rule also 

corrects references to 10 U.S.C. 2306b, 

10 U.S.C. 2306c, and section 8008a of 

Public Law 105–56 throughout DFARS 

subpart 217.1. 

No public comments were submitted 

in response to the proposed rule. 

II. Discussion 

There are only minor editorial 

changes in the final rule from the 

proposed rule. Cross references 

contained within some paragraphs 

required revision since several 

paragraphs were redesignated and 

renumbered due to relocation of text or 

the addition of new text. 

III. 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. This 

rule is not a major rule under 5 U.S.C. 

804. 

IV. 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 amends the Defense Federal 

Acquisition Regulation Supplement 

(DFARS) regarding multiyear contracts 

to ensure consistency with the Federal 

Acquisition Regulation (FAR) and the 

underlying statutes. The objective of 

this rule is to increase the cancellation 

ceiling threshold at DFARS 

217.170(e)(1)(iv) from $100 million to 

$125 million to ensure consistency with 

the threshold at FAR 17.108(b). 

In addition, this rule corrects 

references to 10 U.S.C. 2306b, 10 U.S.C. 

2306c, and section 8008a of Pub. L. 

105–56 throughout DFARS subpart 

217.1 and makes the following 

clarifications: 

• Requests for increased funding or 

reprogramming for procurement of a 

major system is relocated under DFARS 

217.172(j) since it is in reference to a 

type of multiyear supply contract. 

• A multiyear contract for supplies in 

excess of $500 million must be 

specifically authorized by law in an Act 

other than an appropriations Act in 

accordance with 10 U.S.C. 2306b(i)(3). 

• A multiyear procurement contract 

for any system (or component thereof) 

with a value greater than $500 million 

must be specifically authorized in an 

appropriations act in accordance with 

10 U.S.C. 2306b(l)(3). 

No comments were received from the 

public in response to initial regulatory 

flexibility analysis published in the 

proposed rule. 


wreier-aviles on DSK5TPTVN1PROD with RULES