Federal Register / Vol. 80, No. 100 / Tuesday, May 26, 2015 / Rules and Regulations 29981 

the portion of the requirement 

performed on a time-and-materials or 

labor-hour basis exceeds $1 million, the 

approval authority for the determination 

and findings shall be the senior 

contracting official within the 

contracting activity. This authority may 

not be delegated. 

(ii) For contracts (including 

indefinite-delivery contracts) and orders 

in which the portion of the requirement 

performed on a time-and-materials or 

labor-hour basis is less than or equal to 

$1 million, the determination and 

findings shall be approved one level 

above the contracting officer. 

(2) Base period plus any option 

periods exceeds three years. The 

authority of the head of the contracting 

activity to approve the determination 

and findings may not be delegated. 

(3) Exception. The approval 

requirements in paragraphs (d)(i)(A)(1) 

and (2) of this section do not apply to 

contracts that— 

(i) Support contingency or 

peacekeeping operations; or 

(ii) Provide humanitarian assistance, 

disaster relief, or recovery from 

conventional, nuclear, biological, 

chemical, or radiological attack. 

(B) Content of determination and 

findings. The determination and 

findings shall contain sufficient facts 

and rationale to justify that no other 

contract type is suitable. At a minimum, 

the determination and findings shall— 

(1) Include a description of the market 

research conducted; 

(2) Establish that it is not possible at 

the time of placing the contract or order 

to accurately estimate the extent or 

duration of the work or to anticipate 

costs with any reasonable degree of 

certainty; 

(3) Address why a cost-plus-fixed-fee 

term or other cost-reimbursement, 

incentive, or fixed-price contract or 

order is not appropriate; for contracts 

(including indefinite-delivery contracts) 

and orders for noncommercial items 

awarded to contractors with adequate 

accounting systems, a cost-plus-fixedfee term contract type shall be preferred 

over a time-and-materials or labor-hour 

contract type; 

(4) Establish that the requirement has 

been structured to minimize the use of 

time-and-materials and labor-hour 

requirements (e.g., limiting the value or 

length of the time-and-materials or 

labor-hour portion of the contract or 

order; establishing fixed prices for 

portions of the requirement); and 

(5) Describe the actions planned to 

minimize the use of time-and-materials 

and labor-hour contracts on future 

acquisitions for the same requirements. 

(C) Indefinite-delivery contracts. For 

indefinite-delivery contracts, the 

contracting officer shall structure 

contracts that authorize time-andmaterials orders or labor-hour orders to 

also authorize orders on a costreimbursement, incentive, or fixed-price 

basis, to the maximum extent 

practicable. 

* * * * * 

[FR Doc. 2015–12341 Filed 5–22–15; 8:45 am] 

BILLING CODE 5001–06–P 

DEPARTMENT OF DEFENSE 

Defense Acquisition Regulations 

System 

48 CFR Part 217 

RIN 0750–AI37 

Defense Federal Acquisition 

Regulation Supplement: Multiyear 

Contracts—Statutory References and 

Cancellation Ceiling Threshold 

(DFARS Case 2014–D019) 

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 update the cancellation 

ceiling threshold for multiyear contracts 

and to correct statutory references. 

DATES: Effective May 26, 2015. 

FOR FURTHER INFORMATION CONTACT: 

Jennifer Hawes, telephone 571–372– 

6115. 

SUPPLEMENTARY INFORMATION: 

I. Background 

DoD published a proposed rule in the 

Federal Register at 79 FR 65331 on 

September 19, 2014, to amend the 

DFARS regarding multiyear contracts to 

update the cancellation ceiling 

threshold at DFARS 217.170(e)(1)(iv) for 

consistency with the Federal 

Acquisition Regulation and correct 

statutory references. The rule also 

corrects references to 10 U.S.C. 2306b, 

10 U.S.C. 2306c, and section 8008a of 

Public Law 105–56 throughout DFARS 

subpart 217.1. 

No public comments were submitted 

in response to the proposed rule. 

II. Discussion 

There are only minor editorial 

changes in the final rule from the 

proposed rule. Cross references 

contained within some paragraphs 

required revision since several 

paragraphs were redesignated and 

renumbered due to relocation of text or 

the addition of new text. 

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 

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 rule amends the Defense Federal 

Acquisition Regulation Supplement 

(DFARS) regarding multiyear contracts 

to ensure consistency with the Federal 

Acquisition Regulation (FAR) and the 

underlying statutes. The objective of 

this rule is to increase the cancellation 

ceiling threshold at DFARS 

217.170(e)(1)(iv) from $100 million to 

$125 million to ensure consistency with 

the threshold at FAR 17.108(b). 

In addition, this rule corrects 

references to 10 U.S.C. 2306b, 10 U.S.C. 

2306c, and section 8008a of Pub. L. 

105–56 throughout DFARS subpart 

217.1 and makes the following 

clarifications: 

• Requests for increased funding or 

reprogramming for procurement of a 

major system is relocated under DFARS 

217.172(j) since it is in reference to a 

type of multiyear supply contract. 

• A multiyear contract for supplies in 

excess of $500 million must be 

specifically authorized by law in an Act 

other than an appropriations Act in 

accordance with 10 U.S.C. 2306b(i)(3). 

• A multiyear procurement contract 

for any system (or component thereof) 

with a value greater than $500 million 

must be specifically authorized in an 

appropriations act in accordance with 

10 U.S.C. 2306b(l)(3). 

No comments were received from the 

public in response to initial regulatory 

flexibility analysis published in the 

proposed rule. 


wreier-aviles on DSK5TPTVN1PROD with RULES
29982 Federal Register / Vol. 80, No. 100 / Tuesday, May 26, 2015 / Rules and Regulations 

Small businesses will not be affected 

by this rule. The rule will only impact 

procedures and authorities internal to 

the Government for multiyear contracts 

that require a cancellation ceiling up to 

$125 million or multiyear contracts for 

supplies with a value in excess of $500 

million. 

The rule imposes no reporting, 

recordkeeping, or other information 

collection requirements. 

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 217 

Government procurement. 

Amy G. Williams, 

Editor, Defense Acquisition Regulations 

System. 

Therefore, 48 CFR part 217 is 

amended as follows: 

PART 217—SPECIAL CONTRACTING 

METHODS 

■ 1. The authority citation for 48 CFR 

part 217 continues to read as follows: 

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

chapter 1. 

217.103 [Amended] 

■ 2. Amend section 217.103, in the 

definition for ‘‘Military installation,’’ by 

removing ‘‘(10 U.S.C. 2801(c)(2))’’ and 

adding ‘‘(10 U.S.C. 2801(c)(4))’’ in its 

place. 

■ 3. Amend section 217.170 by— 

■ a. Removing paragraph (b); 

■ b. Redesignating paragraphs (c), (d), 

and (e) as paragraphs (b), (c), and (d), 

respectively; 

■ c. Revising newly redesignated 

paragraphs (d)(1)(ii), (iii), and (iv); 

■ d. In newly redesignated paragraph 

(d)(2), removing ‘‘(e)(1)(i)’’ and adding 

‘‘(d)(1)(i)’’ in its place; 

■ e. In newly redesignated paragraph 

(d)(3), removing ‘‘(e)(2)’’ and adding 

‘‘(d)(2)’’ in its place; 

■ f. In newly redesignated paragraph 

(d)(4), removing ‘‘(e)(1)’’ and adding 

‘‘(d)(1)’’ in its place; 

■ g. In newly redesignated paragraph 

(d)(5) introductory text, removing ‘‘$100 

million’’ and adding ‘‘$125 million’’ in 

its place; and 

■ h. In newly redesignated paragraph 

(d)(5)(i) introductory text, removing 

‘‘(e)(1)’’ and adding ‘‘(d)(1)’’ in its place. 

The revisions read as follows: 

217.170 General. 

* * * * * 

(d)(1) * * * 

(ii) Employ economic order quantity 

procurement in excess of $20 million in 

any one year of the contract (see 10 

U.S.C. 2306b(l)(1)(B)(i)(I) and section 

8008(a) of Pub. L. 105–56 and similar 

sections in subsequent DoD 

appropriations acts); 

(iii) Involve a contract for advance 

procurement leading to a multiyear 

contract that employs economic order 

quantity procurement in excess of $20 

million in any one year (see 10 U.S.C. 

2306b(l)(1)(B)(ii) and section 8008(a) of 

Pub. L. 105–56 and similar sections in 

subsequent DoD appropriations acts); or 

(iv) Include a cancellation ceiling in 

excess of $125 million (see 10 U.S.C. 

2306c(d)(4) and 10 U.S.C. 2306b(g)(1)). 

* * * * * 

217.171 [Amended] 

■ 4. Amend section 217.171 by— 

■ a. In paragraph (a) introductory text, 

removing ‘‘(10 U.S.C. 2306c)’’ and 

adding ‘‘(10 U.S.C. 2306c(a))’’ in its 

place; 

■ b. In paragraph (a)(5)(iii), adding ‘‘(10 

U.S.C. 2306c(b))’’ at the end of the 

sentence, before the period; 

■ c. In paragraph (b)(3), adding ‘‘(10 

U.S.C. 2306c(c))’’ at the end of the 

sentence, before the period. 

■ d. In paragraph (c)(3), adding ‘‘(10 

U.S.C. 2306c(a))’’ at the end of the 

sentence, before the period; and 

■ e. In paragraph (d), removing ‘‘(10 

U.S.C. 2306(c))’’ and adding ‘‘(10 U.S.C. 

2306c(d)(2))’’ in its place. 

■ 5. Amend section 217.172 by— 

■ a. Revising paragraph (c); 

■ b. Redesignating paragraphs (d) 

through (h) as paragraphs (e) through (i), 

respectively; 

■ c. Adding a new paragraph (d); 

■ d. In newly redesignated paragraph 

(f)(1), adding a parenthesis to close the 

parenthetical phrase ‘‘(when entered 

into or extended)’’ and removing ‘‘(10 

U.S.C. 2306b(1)(5))’’ and adding ‘‘(10 

U.S.C. 2306b(l)(5))’’ in its place; 

■ e. In newly redesignated paragraph 

(f)(2)— 

■ i. Removing ‘‘(g)(2)(i)’’ and adding 

‘‘(h)(2)(i)’’ in its place; 

■ ii. Removing ‘‘(g)(2)’’ and adding 

‘‘(h)(2)’’ in its place; and 

■ iii. Removing the parenthetical 

reference ‘‘(10 U.S.C. 2306b(a)(1)(7))’’; 

■ f. In newly redesignated paragraph 

(g)(1), adding the parenthetical reference 

‘‘(10 U.S.C. 2306b(h)(1))’’ before the 

semicolon; 

■ g. In newly redesignated paragraph 

(g)(2)— 

■ i. Removing ‘‘217.172(g)(3) and (4)’’ 

and adding ‘‘paragraphs (h)(3) and (4) of 

this section’’ in its place; and 

■ ii. Adding the parenthetical reference 

‘‘(10 U.S.C. 2306b(h)(2))’’ at the end of 

the first sentence, before the period; 

■ h. In newly redesignated paragraph 

(h)(2) introductory text— 

■ i. Removing ‘‘(g)(2)(i)’’ and adding 

‘‘(h)(2)(i)’’ in its place; and 

■ ii. Removing the word ‘‘are’’; 

■ i. In newly redesignated paragraph 

(h)(2)(ii), removing ‘‘(g)(2)(i)’’ and 

adding ‘‘(h)(2)(i)’’ in its place; 

■ j. In newly redesignated paragraph 

(h)(2)(vii)— 

■ i. Adding the parenthetical reference 

‘‘(10 U.S.C. 2306b(i)(1)(G))’’ at the end 

of the first sentence before the period, 

and removing the parenthetical 

reference ‘‘(10 U.S.C. 2306b(i)(1)(G))’’ 

from the end of the second sentence; 

and 

■ ii. Removing ‘‘USD(C)(P/B)’’ and 

adding ‘‘OUSD(C)(P/B)’’ in its place; 

■ k. In newly redesignated paragraph 

(h)(2)(viii) introductory text, removing 

‘‘USD(C)(P/B)’’ and adding 

‘‘OUSD(C)(P/B)’’ in its place; 

■ l. In newly redesignated paragraph 

(h)(5), removing ‘‘(g)(2)’’ and adding 

‘‘(h)(2)’’ in its place; 

■ m. In newly redesignated paragraph 

(h)(6)— 

■ i. Removing ‘‘(g)(2)’’ and adding 

‘‘(h)(2)’’ in its place; and 

■ ii. Removing ‘‘(g)(5)’’ and adding 

‘‘(h)(5)’’ in its place; 

■ n. In newly redesignated paragraph 

(h)(8) introductory text, removing the 

parenthetical reference ‘‘(10 U.S.C. 

2306b(i)(2))’’; and 

■ o. Adding a new paragraph (j). 

The revisions and additions read as 

follows: 

217.172 Multiyear contracts for supplies. 

* * * * * 

(c) Multiyear contracts in amounts 

exceeding $500 million must be 

specifically authorized by law in an act 

other than an appropriations act (10 

U.S.C. 2306b(i)(3)). 

(d) The head of the agency may not 

initiate a multiyear procurement 

contract for any system (or component 

thereof) if the value of the multiyear 

contract would exceed $500 million 

unless authority for the contract is 

specifically provided in an 

appropriations act (10 U.S.C. 

2306b(l)(3)). 

* * * * * 

(j) Any requests for increased funding 

or reprogramming for procurement of a 

major system under a multiyear contract 

shall be accompanied by an explanation 

of how the request for increased funding 

affects the determinations made by the 


wreier-aviles on DSK5TPTVN1PROD with RULES
Federal Register / Vol. 80, No. 100 / Tuesday, May 26, 2015 / Rules and Regulations 29983 

Secretary of Defense under 

217.172(h)(2) (10 U.S.C. 2306b(m)). 

[FR Doc. 2015–12340 Filed 5–22–15; 8:45 am] 

BILLING CODE 5001–06–P 

DEPARTMENT OF DEFENSE 

Defense Acquisition Regulations 

System 

48 CFR Chapter 2 

RIN 0750–AI46 

Defense Federal Acquisition 

Regulation Supplement: Appendix F— 

Energy Receiving Reports (DFARS 

Case 2014–D024) 

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 identify the Wide Area 

WorkFlow Energy Receiving Report as 

the electronic equivalent of the DD 

Form 250, Material Inspection and 

Receiving Report, for overland 

shipments and the DD Form 250–1, 

Tanker/Barge Material Inspection And 

Receiving Report, for waterborne 

shipments. 

DATES: Effective May 26, 2015. 

FOR FURTHER INFORMATION CONTACT: 

Jennifer Johnson, telephone 571–372– 

6176. 

SUPPLEMENTARY INFORMATION: 

I. Background 

DoD published a proposed rule in the 

Federal Register at 79 FR 73539 on 

December 11, 2014, to amend Appendix 

F of the DFARS to identify the Wide 

Area WorkFlow (WAWF) Energy 

Receiving Report as the electronic 

equivalent of the paper DD Form 250 for 

overland shipments and the DD Form 

250–1 for waterborne shipments. 

DFARS 232.7002, Policy, requires 

contractors to submit payment and 

receiving reports in electronic form, and 

the accepted electronic form identified 

in DFARS 232.7003, Procedures, is 

WAWF. In addition, the clause at 

DFARS 252.232–7003, Electronic 

Submission of Payment Requests and 

Receiving Reports, requires payment 

requests and receiving reports using 

WAWF in nearly all cases. 

II. Discussion and Analysis 

There were no public comments 

submitted in response to the proposed 

rule. No changes have been made from 

the proposed rule. 

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 

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 rule amends the Defense Federal 

Acquisition Regulation Supplement 

(DFARS) Appendix F to identify the 

Wide Area WorkFlow (WAWF) Energy 

Receiving Report as the electronic 

equivalent of the DD Form 250, Material 

Inspection and Receiving Report, for 

overland shipments and the DD Form 

250–1, Tanker/Barge Material 

Inspection and Receiving Report, for 

waterborne shipments. 

DFARS 232.7002, Policy, requires 

contractors to submit payment and 

receiving reports in electronic form, and 

the accepted electronic form is WAWF. 

DFARS 232.7003, Procedures, identifies 

WAWF as the accepted electronic form. 

In addition, the clause at DFARS 

252.232–7003, Electronic Submission of 

Payment Requests and Receiving 

Reports, requires payment requests and 

receiving reports using WAWF in nearly 

all cases. 

No comments were received from the 

public regarding the initial regulatory 

flexibility analysis. 

DoD does not expect this rule to 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 affects all DoD contractors who are 

not exempt from using WAWF. Exempt 

classes of contracts are those that are 

listed under the seven categories of 

contracts at DFARS 232.7002, Policy. 

The projected recordkeeping is 

limited to that required to properly 

record shipping and receiving 

information under Government 

contracts. Preparation of these records 

requires clerical and analytical skills to 

create the documents and input them 

into the electronic WAWF system. 

There is no significant economic 

impact on small entities. 

V. Paperwork Reduction Act 

The rule contains 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). 

However, these changes to the DFARS 

do not impose additional information 

collection requirements to the 

paperwork burden previously approved 

under OMB Control Number 0704–0248, 

entitled Material Inspection and 

Receiving Report. 

List of Subjects in 48 CFR Appendix F 

to Chapter 2 

Government procurement. 

Amy G. Williams, 

Editor, Defense Acquisition Regulations 

System. 

Therefore, 48 CFR chapter 2, 

subchapter I, is amended in appendix F 

as follows: 

CHAPTER 2—DEFENSE ACQUISITION 

REGULATIONS SYSTEM, DEPARTMENT OF 

DEFENSE 

■ 1. The authority citation for appendix 

F to chapter 2 continues to read as 

follows: 

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

chapter 1. 

■ 2. Amend appendix F to chapter 2 by: 

■ a. In section F–101, revising 

paragraph (a) and the first sentence of 

paragraph (b); 

■ b. In section F–103, revising 

paragraph (d) introductory text; 

■ c. In section F–104, revising 

paragraph (b) introductory text; 

■ d. Revising the part 3 heading; and 

■ e. In section F–301, revising 

paragraph (b)(13). 

The revisions read as follows: 

Appendix F to Chapter 2—Material 

Inspection and Inspection and 

Receiving Report 

* * * * * 

Part 1—Introduction 

F–101 General. 

(a) This appendix contains procedures and 

instructions for the use, preparation, and 

distribution of the Wide Area WorkFlow 

(WAWF) Receiving Report, the WAWF 

Energy RR, and commercial shipping/

packing lists used to document Government 

contract quality assurance. The WAWF RR is 

the electronic equivalent of the DD Form 250, 

Material Inspection and Receiving Report 


wreier-aviles on DSK5TPTVN1PROD with RULES