[Federal Register Volume 77, Number 62 (Friday, March 30, 2012)]
[Rules and Regulations]
[Page 19126]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-7557]



[[Page 19126]]

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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.

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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--
    <bullet> Clarifies DoD peer review phases and revises the threshold 
for peer reviews of noncompetitive procurements;
    <bullet> Requires military departments and defense agencies to 
establish procedures for preaward peer reviews for noncompetitive 
procurements valued at less than $500 million; and
    <bullet> 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

0
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.


0
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 <a href="/cdn-cgi/l/email-protection#d2a2b7b7a0a0b7a4bbb7a5a192bda1b6fcbfbbbe"><span class="__cf_email__" data-cfemail="88f8ededfafaedfee1edfffbc8e7fbeca6e5e1e4">[email protected]</span></a>.
    (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]
BILLING CODE 5001-06-P


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