Federal Register / Vol. 75, No. 226 / Wednesday, November 24, 2010 / Rules and Regulations 71563 

SUMMARY: DoD is adopting as final, with 

a minor change, an interim rule 

amending the DFARS to implement 

section 819 of the National Defense 

Authorization Act for Fiscal Year 2010. 

Section 819 places limitations on 

certain types of line items and contract 

options that may be included in 

contracts initially awarded pursuant to 

competitive solicitations. 

DATES: Effective Date: November 24, 

2010. 

FOR FURTHER INFORMATION CONTACT: Ms. 

Meredith Murphy, 703–602–1302. 

SUPPLEMENTARY INFORMATION: 

I. Background 

DoD published an interim rule in the 

Federal Register at 75 FR 32638 on June 

8, 2010, to implement section 819 of the 

National Defense Authorization Act for 

Fiscal Year 2010. The interim rule 

added coverage at DFARS 217.202 and 

234.005–1. The intent of the statute is to 

prevent a contract for new technology 

that is initially awarded as a result of 

competition, from becoming a 

noncompetitive effort for the 

development of advance components or 

the procurement of prototype units. The 

DFARS implementation places specific 

limits, in accordance with the statute, 

on the dollar value, period of 

performance, and time for exercise of 

contract line items or contract options 

for such contracts. 

The comment period closed on 

August 9, 2010. A single comment was 

received in response to the interim rule. 

The respondent commented that 

including the change in DFARS part 234 

will result in users following this 

requirement only when procuring major 

systems. This issue was raised during 

the preparation of the interim rule. DoD 

confirmed that part 234 is the optimal 

location, but has added to DFARS part 

235, Research and Development 

Contracting, a second cross-reference to 

the part 234 coverage. 

II. Executive Order 12866 

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 certifies that this final rule will 

not 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 changes are to internal 

Government operating procedures. 

Specifically, the final rule implements 

section 819 of the National Defense 

Authorization Act for Fiscal Year 2010. 

Section 819 places limitations on 

certain types of line items and contract 

options that may be included in 

contracts initially awarded pursuant to 

competitive solicitations. When the 

prohibition applies, it limits the dollar 

value, period of performance, and time 

for exercise of such contract line items 

or contract options. The intent of the 

final rule is to prevent a contract for 

new technology that is initially awarded 

as a result of competition from 

becoming a noncompetitive effort for 

the development of advanced 

components or the procurement of 

prototype units. 

IV. Paperwork Reduction Act 

The Paperwork Reduction Act does 

not apply because the final rule does not 

impose any information collection 

requirements that require the approval 

of the Office of Management and Budget 

under 44 U.S.C. 3501, et seq. 

List of Subjects in 48 CFR Parts 217, 

234, and 235 

Government procurement. 

Clare M. Zebrowski, 

Editor, Defense Acquisition Regulations 

System. 

Interim Rule Adopted as Final With 

Changes 

■ Accordingly, the interim rule 

amending 48 CFR parts 217 and 234, 

which was published in the Federal 

Register at 75 FR 32638 on June 8, 2010, 

is adopted as final with the following 

changes: 

■ 1. The authority citation for 48 CFR 

parts 217, 234, and 235 continues to 

read as follows: 

Authority: 41 U.S.C. 421 and 48 CFR 

chapter 1. 

PART 235—RESEARCH AND 

DEVELOPMENT CONTRACTING 

■ 2. Section 235.006–71 is added to 

subpart 235.006 to read as follows: 

235.006–71 Competition. 

See 234.005–1 for limitations on the 

use of contract line items or contract 

options for the provision of advanced 

component development or prototypes 

of technology developed under a 

competitively awarded proposal. 

[FR Doc. 2010–29498 Filed 11–23–10; 8:45 am] 

BILLING CODE 5001–08–P 

DEPARTMENT OF DEFENSE 

Defense Acquisition Regulations 

System 

48 CFR Part 237 

Defense Federal Acquisition 

Regulation Supplement; Services of 

Senior Mentors (DFARS Case 2010– 

D025) 

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 implement DoD policy on 

the services of senior mentors. 

DATES: Effective: November 24, 2010. 

FOR FURTHER INFORMATION CONTACT: Ms. 

Meredith Murphy, 703–602–1302, 

Defense Acquisition Regulations 

System, OUSD (AT&L) DPAP/DARS, 

3060 Defense Pentagon, Room 3B855, 

Washington, DC 20301–3060. 

SUPPLEMENTARY INFORMATION: 

I. Background 

This DFARS case is implementing the 

DoD policy on the services of senior 

mentors. These policies are set forth in 

two memoranda: 

• Secretary of Defense Memorandum 

entitled ‘‘Policy on Senior Mentors,’’ 

dated April 1, 2010; and 

• Deputy Secretary of Defense 

Memorandum entitled ‘‘Implementation 

Guidance on Senior Mentor Policy,’’ 

dated July 8, 2010. 

This case is being published as a final 

rule because the policy changes have 

already been established by the 

Secretary of Defense and the Deputy 

Secretary of Defense in their policy 

memoranda. The DFARS language 

incorporated by this rule is 

implementing the policy established in 

the memoranda, which impacts internal 

DoD operations with no impact on the 

public. Therefore, publication for public 

comments is not necessary. 

II. Discussion 

Senior mentors are retired flag, 

general, or other military officers or 

retired senior civilian officials who 

provide expert experience-based 

mentoring, teaching, training, advice, 

and recommendations to senior military 

officers, staff, and students as they 

participate in war games, warfighting 

courses, operational planning, 

operational exercises, and decisionmaking exercises. The relevant prior 

service, joint force experience, and 


jlentini on DSKJ8SOYB1PROD with RULES
71564 Federal Register / Vol. 75, No. 226 / Wednesday, November 24, 2010 / Rules and Regulations 

unique expertise of senior mentors 

provide senior leadership with valuable 

insights and contribute to the 

continuous improvement of the DoD 

operations. 

Because of DoD’s increased need for 

senior mentors to participate in 

warfighting exercises and its desire to 

promote public trust and confidence in 

the integrity of its programs and 

operations, the Secretary has directed 

the adoption of a uniform hiring process 

that will provide consistency and 

transparency to the senior mentor 

program. Specifically, the Secretary has 

directed that all requirements for senior 

mentor services must be satisfied by 

employing senior mentors as ‘‘highly 

qualified experts,’’ a type of civil service 

position under 5 U.S.C. 9903. As highly 

qualified experts, senior mentors will be 

subject to applicable Federal personnel 

and ethics laws and regulations. 

Therefore, DoD will not use the 

authority of 5 U.S.C. 3109 or 10 U.S.C. 

129(b) to enter into personal services 

contracts with senior mentors or 

otherwise contract for the services of 

senior mentors. This final rule 

implements the Secretary’s policy by 

adding a prohibition against contracting 

for the services of senior mentors at 

DFARS 237.102–73. 

III. Executive Order 12866 

This is not a significant regulatory 

action and, therefore, is 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. 

IV. Regulatory Flexibility Act 

The Regulatory Flexibility Act does 

not apply to this rule. This rule will not 

have a significant economic impact 

upon a substantial number of small 

entities because this final rule does not 

constitute a significant DFARS revision 

within the meaning of 41 U.S.C. 418b 

and FAR 1.501 and does not require 

publication for public comment. The 

rule is internal to DoD and does not 

impose any requirements on small 

businesses. Therefore, a regulatory 

flexibility analysis has not been 

performed. 

V. Paperwork Reduction Act 

The Paperwork Reduction Act does 

not apply because the final rule does not 

contain any information collection 

requirements that require the approval 

of the Office of Management and Budget 

under 44 U.S.C., et seq. 

List of Subjects in 48 CFR Part 237 

Government procurement. 

Clare M. Zebrowski, 

Editor, Defense Acquisition Regulations 

System. 

■ Therefore, 48 CFR part 237 is 

amended as follows: 

PART 237—SERVICE CONTRACTING 

■ 1. The authority citation for 48 CFR 

part 237 continues to read as follows: 

Authority: 41 U.S.C. 421 and 48 CFR 

chapter 1. 

■ 2. Section 237.101 is amended by 

adding the definition for ‘‘senior 

mentor’’ in alphabetical order as follows: 

237.101 Definitions. 

* * * * * 

‘‘Senior mentor’’ means a retired flag, 

general, or other military officer or 

retired senior civilian official who 

provides expert experience-based 

mentoring, teaching, training, advice, 

and recommendations to senior military 

officers, staff, and students as they 

participate in war games, warfighting 

courses, operational planning, 

operational exercises, and decisionmaking exercises. 

■ 3. Section 237.102–73 is added as 

follows: 

237.102–73 Prohibition on contracts for 

services of senior mentors. 

DoD is prohibited from entering into 

contracts for the services of senior 

mentors. See PGI 237.102–73 for 

references to DoD policy and 

implementation guidance. 

[FR Doc. 2010–29507 Filed 11–23–10; 8:45 am] 

BILLING CODE 5001–08–P 

DEPARTMENT OF DEFENSE 

Defense Acquisition Regulations 

System 

48 CFR Part 242 

RIN 0750–AG77 

Defense Federal Acquisition 

Regulation Supplement; Contractor 

Insurance/Pension Review (DFARS 

Case 2009–D025) 

AGENCY: Defense Acquisition 

Regulations System, Department of 

Defense (DoD). 

ACTION: Final rule. 

SUMMARY: The Department of Defense 

(DoD) is issuing a final rule to remove 

and relocate the requirements for 

conducting a Contractor Insurance/ 

Pension Review from Procedures, 

Guidance, and Information (PGI) to the 

Defense Federal Acquisition Regulation 

Supplement (DFARS). 

DATES: Effective Date: November 24, 

2010. 

FOR FURTHER INFORMATION CONTACT: Ms. 

Mary Overstreet, 703–602–0311. 

SUPPLEMENTARY INFORMATION: 

I. Background 

This final rule relocates requirements 

for Contractor Insurance/Pension 

Review to DFARS 242.7302 from PGI 

242.7302. 

DoD published a proposed rule at 75 

FR 33237 on June 11, 2010, and the 

public comment period closed on 

August 10, 2010. No public comments 

were received. Therefore, DoD is making 

no changes to the final 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 certifies that this final rule will 

not 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. The 

rule is consistent with existing policy 

that a CIPR is only required for those 

contractors that have $50 million in 

qualifying sales to the Government. The 

rule merely relocates the requirements 

for CIPR from the PGI to the DFARS. 

IV. Paperwork Reduction Act 

The Paperwork Reduction Act (Pub. 

L. 96–511) applies because information 

collection requirements in the proposed 

rule at DFARS subpart 242.73 are 

currently approved under Office of 

Management and Budget Control 

Number 0704–0250. Relocating the 

requirement has no impact on the 

information collection requirement. 

List of Subjects in 48 CFR Part 242 

Government procurement. 

Ynette R. Shelkin, 

Editor, Defense Acquisition Regulations 

System. 

■ Therefore, 48 CFR part 242 is 

amended as follows: 

PART 242—CONTRACT 

ADMINISTRATION AND AUDIT 

SERVICES 

■ 1. The authority citation for 48 CFR 

part 242 continues to read as follows: 


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