19126 Federal Register / Vol. 77, No. 62 / Friday, March 30, 2012 / Rules and Regulations 

DEPARTMENT OF DEFENSE 

Defense Acquisition Regulations 

System 

48 CFR Part 201 

RIN 0750–AH66 

Defense Federal Acquisition 

Regulation Supplement: New 

Threshold for Peer Reviews of 

Noncompetitive Contracts (DFARS 

Case 2012–D018) 

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 modify the threshold for 

noncompetitive contract peer reviews. 

DATES: Effective Date: April 30, 2012. 

FOR FURTHER INFORMATION CONTACT: Mr. 

Manuel Quinones, telephone 571–372– 

6088. 

SUPPLEMENTARY INFORMATION: 

I. Background 

This final rule reduces the threshold 

for DoD peer reviews of noncompetitive 

contracts from the current level of $1 

billion to $500 million. Previously, DoD 

published a final rule in the Federal 

Register at 74 FR 37625 on July 29, 

2009, to address the requirements for 

peer reviews of DoD solicitations and 

contracts. DFARS Case 2008–D035, 

entitled ‘‘Peer Reviews of Contracts,’’ 

added DFARS 201.170, Peer Reviews, 

which (1) specified that the Office of the 

Director, Defense Procurement and 

Acquisition Policy, will organize teams 

of reviewers and will facilitate peer 

reviews for all solicitations and 

contracts for services valued at $1 

billion or more, and (2) required the 

military departments, defense agencies, 

and DoD field activities to establish 

procedures for preaward and postaward 

peer review of solicitations and 

contracts for services valued at less than 

$1 billion. 

This final rule— 

• Clarifies DoD peer review phases 

and revises the threshold for peer 

reviews of noncompetitive 

procurements; 

• Requires military departments and 

defense agencies to establish procedures 

for preaward peer reviews for 

noncompetitive procurements valued at 

less than $500 million; and 

• Adds an email address for the 

submission of rolling annual forecasts of 

acquisitions. 

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 this rule concerns DoD’s 

internal review processes and does not 

have a significant cost or administrative 

impact on contractors or offerors. These 

requirements affect only the internal 

operating procedures of the 

Government. 

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 201 

Government procurement. 

Mary Overstreet, 

Editor, Defense Acquisition Regulations 

System. 

Therefore, 48 CFR part 201 is 

amended as follows: 

PART 201—FEDERAL ACQUISITION 

REGULATIONS SYSTEM 

■ 1. The authority citation for 48 CFR 

part 201 is revised to read as follows: 

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

chapter 1. 

■ 2. Section 201.170 is revised to read 

as follows: 

201.170 Peer reviews. 

(a) DoD peer reviews. (1) The Office of 

the Director, Defense Procurement and 

Acquisition Policy, will organize teams 

of reviewers and facilitate peer reviews 

for solicitations and contracts, as 

follows using the procedures at PGI 

201.170— 

(i) Preaward peer reviews for 

competitive procurements will be 

conducted in three phases for all 

solicitations valued at $1 billion or 

more; 

(ii) Preaward peer reviews for 

noncompetitive procurements will be 

conducted in two phases for new 

contract actions valued at $500 million 

or more; and 

(iii) Postaward peer reviews will be 

conducted for all contracts for services 

valued at $1 billion or more. 

(2) To facilitate planning for peer 

reviews, the military departments and 

defense agencies shall provide a rolling 

annual forecast of acquisitions at the 

end of each quarter (i.e., March 31; June 

30; September 30; December 31), to the 

Deputy Director, Defense Procurement 

and Acquisition Policy (Contract Policy 

and International Contracting) via email 

to peerreviews@osd.mil. 

(b) Component peer reviews. The 

military departments and defense 

agencies shall establish procedures for— 

(1) Preaward peer reviews of 

solicitations for competitive 

procurements valued at less than $1 

billion; 

(2) Preaward peer reviews for 

noncompetitive procurements valued at 

less than $500 million; and 

(3) Postaward peer reviews of all 

contracts for services valued at less than 

$1 billion. 

[FR Doc. 2012–7557 Filed 3–29–12; 8:45 am] 

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