[Federal Register Volume 62, Number 5 (Wednesday, January 8, 1997)]
[Rules and Regulations]
[Page 1058]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-381]


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DEPARTMENT OF DEFENSE

48 CFR Part 216

[DFARS Case 96-D327]


Defense Federal Acquisition Regulation Supplement; MILCON--
Environmental Restoration

AGENCY: Department of Defense (DoD).

ACTION: Final rule.

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SUMMARY: The Director of Defense Procurement is amending the Defense 
Federal Acquisition Regulation Supplement (DFARS) to add an exception 
to the restriction on the use of cost-plus-fixed-fee contracts for 
military construction. The exception applies to contracts for 
environmental restoration at installations that are being closed or 
realigned where payments are made from a Base Realignment and Closure 
Account.

EFFECTIVE DATE: January 8, 1997.

FOR FURTHER INFORMATION CONTACT:
Ms. Amy Williams, PDUSD (A&T) DP (DAR), IMD 3D139, 3062 Defense 
Pentagon, Washington, DC 20301-3062. Telephone (703) 602-0131. Telefax 
(703) 602-0350. Please cite DFARS Case 96-D327 in all correspondence 
related to this case.

SUPPLEMENTARY INFORMATION:

A. Background

    This final rule amends DFARS 216.306 to implement Section 101 of 
the Fiscal Year 1997 Military Construction Appropriations Act (Public 
Law 104-196). Section 101 continues to restrict the use of cost-plus-
fixed-fee contracts for military construction, but provides an 
exception for contracts for environmental restoration at installations 
that are being closed or realigned where payments are made from a Base 
Realignment and Closure Account.

B. Regulatory Flexibility Act

    This final rule does not constitute a significant DFARS revision 
within the meaning of FAR. 1.501 and Public Law 98-577 and publication 
for public consent is not required. However, comments from small 
entities concerning the affected DFARS subpart will be considered in 
accordance with 5 U.S.C. 610. Such comments should cite DFARS Case 96-
D327 in correspondence.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because this final rule 
does not impose any new recordkeeping, information collection 
requirements, or collections of information from offerors, contractors, 
or members of the public 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 Part 216

    Government procurement.
Michele P. Peterson,
Executive Editor, Defense Acquisition Regulations Council.

    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. 421 and 48 CFR Chapter 1.

    2. Section 216.306 is revised to read as follows:


216.306  Cost-plus-fixed-fee contracts.

    (c) Limitations.
    (i) Except as provided in paragraph (c)(ii) of this section, annual 
military construction appropriations acts prohibit the use of cost-plus 
fixed-fee contracts that--
    (A) Are funded by a military construction appropriations act;
    (B) Are estimated to exceed $25,000; and
    (C) Will be performed within the United States, except Alaska.
    (ii) The prohibition in paragraph (c)(i) of this section does not 
apply--
    (A) To contracts for environmental restoration at an installation 
that is being closed or realigned where payments are made from a Base 
Realignment and Closure Account; or
    (B) To contracts specifically approved in writing, setting forth 
the reasons therefore, in accordance with the following:
    (1) The Secretaries of the military departments are authorized to 
approve such contracts that are for environmental work only, provided 
the environmental work is not classified as construction, as defined by 
10 U.S.C. 2801.
    (2) The Secretary of Defense or designee must approve such 
contracts are not for environmental work only or are for environmental 
work classified as construction.

[FR Doc. 97-381 Filed 1-7-97; 8:45 am]
BILLING CODE 5000-04-M