Federal Register / Vol. 76, No. 223 / Friday, November 18, 2011 / Rules and Regulations 71465 

PART 252—SOLICITATION 

PROVISIONS AND CONTRACT 

CLAUSES 

■ 3. Amend section 252.204–7007 by— 

■ (a) Amending the clause date by 

removing ‘‘(SEP 2011)’’ and adding in 

its place ‘‘(NOV 2011)’’; and 

■ (b) Amending paragraph (e) by 

removing the Internet address ‘‘https:// 

orca.bpn.gov/’’ and adding in its place 

‘‘https://www.acquisition.gov/’’. 

[FR Doc. 2011–29900 Filed 11–17–11; 8:45 am] 

BILLING CODE 5001–06–P 

DEPARTMENT OF DEFENSE 

Defense Acquisition Regulations 

System 

48 CFR Part 215 

RIN 0750–AH30 

Defense Federal Acquisition 

Regulation Supplement: Management 

of Manufacturing Risk in Major 

Defense Acquisition Programs (DFARS 

Case 2011–D031) 

AGENCY: Defense Acquisition 

Regulations System, Department of 

Defense (DoD). 

ACTION: Final rule. 

SUMMARY: DoD is adopting as final, 

without change, an interim rule 

amending the Defense Federal 

Acquisition Regulation Supplement to 

implement a section of National Defense 

Authorization Act for Fiscal Year 2011 

requiring appropriate consideration of 

the manufacturing readiness and 

manufacturing-readiness processes of 

potential contractors and subcontractors 

as a part of the source selection process 

for major defense acquisition programs. 

DATES: Effective Date: November 18, 

2011. 

FOR FURTHER INFORMATION CONTACT: Mr. 

Dustin Pitsch, telephone 703–602–0289. 

SUPPLEMENTARY INFORMATION: 

I. Background 

DoD published an interim rule in the 

Federal Register at 76 FR 38050 on June 

29, 2011, to amend Defense Federal 

Acquisition Regulation Supplement 

(DFARS) 215.304(c) by adding 

paragraph (iv) to state that the 

manufacturing readiness and 

manufacturing-readiness processes of 

potential contractors and subcontractors 

shall be considered as a part of the 

source selection process for major 

defense acquisition programs. No public 

comments were submitted in response 

to the interim rule. 

II. 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. 

III. 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 final rule amends the DFARS to 

implement section 812 of the National 

Defense Authorization Act for Fiscal 

Year 2011, (10 U.S.C. 2430 note). 

Section 812(b)(5) requires appropriate 

consideration of the manufacturing 

readiness and manufacturing-readiness 

processes of potential contractors and 

subcontractors as a part of the source 

selection process for major defense 

acquisition programs. 

No public comments were received in 

response to the initial regulatory 

flexibility analysis. No comments were 

filed by the Chief Counsel for Advocacy 

of the Small Business Administration in 

response to the interim rule. 

The rule will apply to DoD Major 

Defense Acquisition Program 

contractors and subcontractors. Most 

major defense acquisition programs are 

awarded to large concerns as these 

programs are of a scope too large for any 

small business to perform. As such, it is 

not expected that this rule will have a 

significant impact on a significant 

number of small entities. 

The final rule imposes no reporting, 

recordkeeping, or other information 

collection requirements. 

There are no known significant 

alternatives to the rule that would meet 

the requirements of the statute. The 

impact on small entities is expected to 

be positive. 

IV. 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 215 

Government procurement. 

Mary Overstreet, 

Editor, Defense Acquisition Regulations 

System. 

Interim Rule Adopted as Final Without 

Change 

■ Accordingly, the interim rule 

amending 48 CFR part 215, which was 

published at 76 FR 38050 on June 29, 

2011, is adopted as a final rule without 

change. 

[FR Doc. 2011–29894 Filed 11–17–11; 8:45 am] 

BILLING CODE 5001–06–P 

DEPARTMENT OF DEFENSE 

Defense Acquisition Regulations 

System 

48 CFR Part 216 

RIN 0750–AG66 

Defense Federal Acquisition 

Regulations Supplement; Notification 

Requirements for Awards of SingleSource Task- or Delivery-Order 

Contracts (DFARS Case 2009–D036) 

AGENCY: Defense Acquisition 

Regulations System, Department of 

Defense (DoD). 

ACTION: Final rule. 

SUMMARY: DoD is adopting as final, with 

changes, an interim rule amending the 

Defense Federal Acquisition Regulation 

Supplement to implement the National 

Defense Authorization Act for Fiscal 

Year 2010 regarding the notification 

requirements to Congress when 

awarding a single-award task- or 

delivery-order contract in excess of $103 

million. 

DATES: Effective date: November 18, 

2011. 

FOR FURTHER INFORMATION CONTACT: Mr. 

Manuel Quinones, telephone (703) 602– 

8383. 

SUPPLEMENTARY INFORMATION: 

I. Background 

DoD published an interim rule at 75 

FR 40716 on July 13, 2010, to 

implement section 814 of the National 

Defense Authorization Act (NDAA) for 

Fiscal Year (FY) 2010, (Pub. L. 111–84, 

enacted October 28, 2009). The public 

comment period closed on September 

13, 2010. Three respondents submitted 

comments in response to the interim 

rule. 


emcdonald on DSK5VPTVN1PROD with RULES
71466 Federal Register / Vol. 76, No. 223 / Friday, November 18, 2011 / Rules and Regulations 

The interim rule requires the head of 

the agency to notify the congressional 

defense committees within 30 days after 

any determination made under FAR 

16.504(c)(ii)(D)(1), and to provide a 

copy of the determination and 

notification to the Deputy Director, 

Defense Procurement and Acquisition 

Policy. If the single-award task- or 

delivery-order contract award concerns 

intelligence or intelligence-related 

activities of DoD, notification shall also 

be provided to the Select Committee on 

Intelligence of the Senate and 

Permanent Select Committee on 

Intelligence of the House of 

Representatives. 

II. Discussion and Analysis of Public 

Comments 

A discussion of the comments 

received and the changes made to the 

final rule as a result of those comments 

are provided as follows: 

A. Analysis of Public Comments 

Comment: Two respondents wrote 

that the interim rule’s preamble was 

confusing and would lead to 

misinterpretations. One of the 

respondents stated that ‘‘(t)here is a 

difference between a ‘single-source’ and 

a ‘sole-source’.’’ Further, the respondent 

stated that the ‘‘Indefinite Quantity 

Contract itself is the subject of DFARS 

216.505, not the resulting delivery or 

task orders issued under the contract.’’ 

Response: The respondent correctly 

states that there is a difference between 

single-source and sole-source, and the 

preamble of this final rule clarifies the 

intent of the rule by using the terms 

‘‘single-award’’ or ‘‘single-source’’ 

contracts, as used in the statute, in lieu 

of sole-source. In response to the other 

comment, individual task orders and 

delivery orders are the subject of DFARS 

216.505, Ordering; however, this rule 

addresses limitations on single-award 

contracts, and DoD confirms that the 

rule text is correctly located at DFARS 

216.504, Indefinite Quantity Contracts. 

Comment: A respondent requested 

that the preamble to the interim rule be 

amended to add ‘‘contract’’ or 

‘‘contracts’’ where appropriate in order 

to better convey the intent of the 

existing and new regulations. The 

preamble for the interim rule appears to 

this respondent to change the reporting 

requirement from ‘‘task or delivery 

order contracts’’ to ‘‘task or delivery 

orders.’’ 

Response: In response to the first 

comment, the title of this final rule has 

been amended to include ‘‘Contracts’’ in 

the title to more clearly convey the 

intent of the rule. Concerning the 

second comment, the agency-head 

determination and congressional 

notification are required, in accordance 

with 10 U.S.C. 2304a(d)(3), only for 

single-source indefinite-delivery 

contracts estimated to exceed $100 

million (now $103 million). DoD has 

reviewed and confirms that the interim 

rule changes at DFARS 

216.504(c)(1)(ii)(D) correctly 

implemented the statutory requirements 

for single-source contracts, 

notwithstanding minor clarifications 

made in this final rule concerning 

reporting requirements. 

Comment: A respondent pointed out 

that there is a ‘‘disconnect’’ between the 

interim rule published in the Federal 

Register and the on-line version of the 

DFARS. The on-line version includes, at 

the end of DFARS 216.504(c)(1)(ii)(d)(2), 

the sentence ‘‘A copy of any 

determination made in accordance with 

FAR 16.504(c)(1)(ii)(D) shall be 

submitted to: Deputy Director, Defense 

Procurement (Contract Policy and 

International Contracting), OUSD 

(AT&L) DPAP (CPIC), 3060 Defense 

Pentagon, Washington, DC 20301– 

3060.’’ The respondent notes that this 

appears to duplicate the same statement 

that is made earlier in the same 

paragraph. 

Response: In response to this 

comment, the rule text format, 

numbering, notification and reporting 

requirements are clarified in this final 

DFARS rule and in changes made to the 

DFARS Procedures Guidance and 

Information. Agency heads are required 

to provide a copy of each determination 

and congressional notification to the 

Office of the Under Secretary of Defense 

(Acquisition, Technology, and Logistics) 

Defense Procurement and Acquisition 

Policy (DPAP) Contract Policy and 

International Contracting (CPIC). This 

enables a single office to oversee and 

manage the DoD-wide use of singleaward task- and delivery-order 

contracts. 

Comment: A respondent submitted an 

editorial comment, asking that DoD add 

‘‘216.504, Indefinite-quantity contracts’’ 

with a link to DFARS 216, Table of 

Contents. 

Response: The ability to hyperlink is 

available in the HTML version of each 

DFARS subpart. 

B. Other Changes 

The final rule at DFARS 

216.504(c)(1)(ii)(D)(i) is revised to 

clarify that the authority to make any 

determination authorized by FAR 

16.504(c)(1)(ii)(D)(1) shall not be 

delegated below the level of the senior 

procurement executive. Previously, this 

limitation on the delegation of approval 

authority only applied to 

determinations made because it was 

necessary in the public interest to award 

the contract to a single source due to 

exceptional circumstances, and these 

determinations had to be reported to 

Congress. Since the statue and the 

resultant interim rule expand the 

reporting requirement to require that 

any determination made under FAR 

16.504(c)(1)(ii)(D)(1) be reported to 

Congress, the limitation on delegation of 

approval authority is revised to be 

commensurate with the expanded 

reporting requirement. 

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 

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 change solely impacts 

internal Government operating 

procedures and will therefore not have 

a significant cost or administrative 

impact on contractors, subcontractors, 

or offerors. The notification 

requirements are within DoD and 

between DoD agencies and the Congress. 

An initial regulatory flexibility analysis 

was not performed. No comments were 

received from small entities on this rule. 

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). 


emcdonald on DSK5VPTVN1PROD with RULES
Federal Register / Vol. 76, No. 223 / Friday, November 18, 2011 / Rules and Regulations 71467 

List of Subjects in 48 CFR Part 216 

Government procurement. 

Mary Overstreet, 

Editor, Defense Acquisition Regulations 

System. 

Therefore, the Defense Acquisition 

Regulations System confirms as final the 

interim rule published at 75 FR 40716 

on July 13, 2010, with the following 

changes: 

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. Revise section 216.504 to read as 

follows: 

216.504 Indefinite-quantity contracts. 

(c)(1)(ii)(D) Limitation on singleaward contracts. 

(i) The authority to make the 

determination authorized in FAR 

16.504(c)(1)(ii)(D)(1) shall not be 

delegated below the level of the senior 

procurement executive. 

(ii) The head of the agency must 

notify the congressional defense 

committees within 30 days after making 

any determination under FAR 

16.504(c)(1)(ii)(D)(1). If the award 

concerns intelligence or intelligencerelated activities of DoD, notification 

shall also be provided to the Select 

Committee on Intelligence of the Senate 

and Permanent Select Committee on 

Intelligence of the House of 

Representatives. (See sample 

notification at PGI 

216.504(c)(1)(ii)(D)(iv).) 

(iii) A copy of each determination 

made in accordance with FAR 

16.504(c)(1)(ii)(D) and each 

congressional notice shall be submitted 

in accordance with PGI 

216.504(c)(1)(ii)(D)(iii). 

[FR Doc. 2011–29903 Filed 11–17–11; 8:45 am] 

BILLING CODE 5001–06–P 

DEPARTMENT OF DEFENSE 

Defense Acquisition Regulations 

System 

48 CFR Part 219 and Appendix I to 

Chapter 2 

RIN 0750–AH44 

Defense Federal Acquisition 

Regulation Supplement; Extension of 

Department of Defense Mentor-Prote ́ge ́

Pilot Program (DFARS Case 2011– 

D050) 

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 to 

extend the date for submittal of 

applications under the DoD MentorProte ́ge ́ Pilot Program for new mentorprote ́ge ́ agreements and the date 

mentors may incur costs and/or receive 

credit towards fulfilling their small 

business subcontracting goals through 

an approved mentor-prote ́ge ́ agreement. 

DATES: Effective Date: November 18, 

2011. 

FOR FURTHER INFORMATION CONTACT: Ms. 

Lee Renna, telephone 703–602–0764. 

SUPPLEMENTARY INFORMATION: 

I. Background 

This Defense Federal Acquisition 

Regulation Supplement (DFARS) case 

implements section 8016 of the National 

Defense Appropriations Act (NDAA) for 

Fiscal Year (FY) 2011 (Pub. L. 112–10). 

The NDAA for FY 2011 was signed into 

law on April 15, 2011. Section 8016 

amends the DoD Mentor-Prote ́ge ́ Pilot 

Program (DoD MPP), section 831 of 

Public Law 110–510 (10 U.S.C. 2302, 

note), by changing the— 

• Acceptance date for new DoD MPP 

agreements from September 30, 2010, to 

September 30, 2011; and 

• Eligibility date DoD mentors may 

incur costs for the purposes of receiving 

cost reimbursement or credit toward 

attainment of subcontracting goals, from 

September 30, 2013, to September 30, 

2014. 

This final rule implements these 

changes in the corresponding DFARS 

regulations: 219.704(b) and (d); and 

I–103(a) and (b). 

DoD is issuing a final rule because 

this rule does not have a significant 

effect beyond the internal operating 

procedures of DoD and does not have a 

significant cost or administrative impact 

on contractors or offerors. This final rule 

merely extends the effective dates for an 

existing DoD program. These dates have 

already been extended by law. 

II. 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. 

III. 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 and 

does not require publication for public 

comment. 

IV. 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 219 and 

Appendix I to Chapter 2 

Government procurement. 

Mary Overstreet, 

Editor, Defense Acquisition Regulations 

System. 

Therefore, 48 CFR part 219 and 48 

CFR chapter 2 appendix I are amended 

as follows: 

■ 1. The authority citation for 48 CFR 

part 219 and Appendix I continue to 

read as follows: 

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

chapter 1. 

PART 219—SMALL BUSINESS 

PROGRAMS 

219.7104 [Amended] 

■ 2. Section 219.7104 is amended— 

■ (a) In paragraph (b), by removing the 

year ‘‘2013’’ and adding in its place 

‘‘2014’’; and 


emcdonald on DSK5VPTVN1PROD with RULES