79000 Federal Register / Vol. 89, No. 187 / Thursday, September 26, 2024 / Rules and Regulations 

DEPARTMENT OF DEFENSE 

Defense Acquisition Regulations 

System 

48 CFR Part 206 

[Docket DARS–2024–0014] 

RIN 0750–AL65 

Defense Federal Acquisition 

Regulation Supplement: Modification 

of Prize Authority for Advanced 

Technology Achievements (DFARS 

Case 2022–D014) 

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 implement a section of the 

National Defense Authorization Act for 

Fiscal Year 2022 that provides 

procedures and approval and reporting 

requirements for contracts awarded as 

prizes for advanced technology 

achievements. 

DATES: Effective October 1, 2024. 

FOR FURTHER INFORMATION CONTACT: Mr. 

Jon Snyder, telephone 703–945–5341. 

SUPPLEMENTARY INFORMATION: 

I. Background 

DoD published a proposed rule in the 

Federal Register at 89 FR 31680 on 

April 25, 2024, to implement section 

822 of the National Defense 

Authorization Act (NDAA) for Fiscal 

Year (FY) 2022 (Pub. L. 117–81), which 

amends 10 U.S.C. 4025. Section 822 

provides the authority to carry out 

advanced technology prize programs to 

award contracts to recognize 

outstanding achievements in basic, 

advanced, and applied research; 

technology development; and prototype 

development. Section 822 specifies the 

award of a contract as a prize is a 

competitive procedure if the solicitation 

is widely advertised. Section 822 also 

requires approval of such awards that 

exceed $10,000 and congressional 

reporting for contracts that exceed $10 

million. There were no public 

comments submitted in response to the 

proposed rule. There are no changes 

made to the final rule. 

II. Applicability to Contracts At or 

Below the Simplified Acquisition 

Threshold (SAT), for Commercial 

Products (Including Commercially 

Available Off-the-Shelf (COTS) Items), 

and for Commercial Services 

This final rule does not create any 

new solicitation provisions or contract 

clauses. It does not impact any existing 

solicitation provisions or contract 

clauses or their applicability to 

contracts valued at or below the 

simplified acquisition threshold, for 

commercial products including COTS 

items, or for commercial services. 

III. Expected Impact of the Rule 

Prior to the enactment of the NDAA 

for FY 2022, 10 U.S.C. 4025 (formerly 10 

U.S.C. 2374a) did not provide for the 

award of contracts as prizes for 

outstanding achievements in basic, 

advanced, and applied research; 

technology development; and prototype 

development. This final rule 

implements the authority to award 

contracts as prizes under certain 

conditions. 

This final rule may increase 

participation in prize competitions and 

decrease the lead time to deliver to the 

warfighter achievements in basic, 

advanced, and applied research; 

technology development; and prototype 

development. This final rule may help 

to expand the defense industrial base by 

providing a way for entities that are new 

to DoD procurement to obtain DoD 

contracts. It may also streamline the 

competitive process, which could 

reduce Government administrative costs 

associated with competitive negotiated 

acquisitions. For this reason, the 

difference in the cost of managing a 

contract instead of another type of prize 

is expected to be negligible. 

Data provided from the Office of the 

Under Secretary of Defense for Research 

and Engineering indicates there were a 

total of 809 cash prizes awarded from 

FY 2021 to FY 2023, or approximately 

270 per year, worth a total of about $3.5 

million annually. DoD estimates 20 

percent of these 270 historical cash 

prize awards, or 54 cash prize awards 

worth a total of approximately $700,000, 

would be converted to contracts. 

Therefore, DoD estimates that 

approximately 54 entities per year 

would be awarded contracts or a 

combination of contracts, other 

agreements (e.g., grants, cooperative 

agreements, other transaction 

agreements), and cash prizes as a result 

of the changes in this final rule. 

IV. 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, as amended. 

V. Congressional Review Act 

As required by the Congressional 

Review Act (5 U.S.C. 801–808) before an 

interim or final rule takes effect, DoD 

will submit a copy of the interim or 

final rule with the form, Submission of 

Federal Rules under the Congressional 

Review Act, to the U.S. Senate, the U.S. 

House of Representatives, and the 

Comptroller General of the United 

States. A major rule under the 

Congressional Review Act cannot take 

effect until 60 days after it is published 

in the Federal Register. The Office of 

Information and Regulatory Affairs has 

determined that this rule is not a major 

rule as defined by 5 U.S.C. 804. 

VI. 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 is necessary to implement 

section 822 of the National Defense 

Authorization Act (NDAA) for Fiscal 

Year (FY) 2022 (Pub. L. 117–81), which 

amends 10 U.S.C. 4025, Prizes for 

advanced technology achievements. 

Section 822 provides advanced 

technology prize programs authority to 

award contracts to recognize 

outstanding achievements in basic, 

advanced, and applied research; 

technology development; and prototype 

development. Section 822 also provides 

that the award of a contract as a prize 

is a competitive procedure if the prize 

program solicitation is widely 

advertised. Section 822 also requires 

approval of such awards exceeding 

$10,000 and congressional reporting for 

contracts exceeding $10 million. The 

objective of this final rule is to 

implement section 822 of the NDAA for 

FY 2022. 

There were no significant issues 

raised by the public in response to the 

initial regulatory flexibility analysis. 

Data provided from the Office of the 

Under Secretary of Defense for Research 

and Engineering indicates there were a 


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Federal Register / Vol. 89, No. 187 / Thursday, September 26, 2024 / Rules and Regulations 79001 

total of 809 cash prizes awarded from 

FY 2021 to FY 2023, or approximately 

270 per year, worth a total of about $3.5 

million annually. During this three-year 

period, DoD awarded a total of 636 cash 

prizes to small entities, which is an 

average of 212 per year. DoD estimates 

20 percent of these 212 historical cash 

prize awards, or 42 cash prize awards 

worth a total of approximately $545,000, 

would be converted to contracts. 

Therefore, DoD estimates that 

approximately 42 small entities per year 

would be awarded contracts or a 

combination of contracts, other 

agreements (e.g., grants, cooperative 

agreements, other transaction 

agreements), and cash prizes as a result 

of the changes in this final rule. 

Therefore, DoD does not anticipate that 

this final rule will have a significant 

impact on small entities. 

The rule does not impose any new 

reporting, recordkeeping, or other 

compliance requirements for small 

entities. 

There are no known alternatives that 

would accomplish the stated objectives 

of the applicable statute. 

VII. Paperwork Reduction Act 

This final 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 206 

Government procurement. 

Jennifer D. Johnson, 

Editor/Publisher, Defense Acquisition 

Regulations System. 

Therefore, the Defense Acquisition 

Regulations System amends 48 CFR part 

206 as follows: 

PART 206—COMPETITION 

REQUIREMENTS 

■ 1. The authority citation for 48 CFR 

part 206 continues to read as follows: 

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

chapter 1. 

■ 2. Amend section 206.102–70 by— 

■ a. Designating the text as paragraph 

(a); and 

■ b. Adding paragraph (b). 

The addition reads as follows: 

206.102–70 Other competitive procedures. 

(a) * * * 

(b) The award of a contract as a prize 

resulting from a competitive selection of 

prize recipients for advanced 

technology achievements is a 

competitive procedure (10 U.S.C. 

4025(f)), when the solicitation is widely 

advertised, including through the 

Governmentwide point of entry (see 

FAR part 5). See PGI 206.102–70 for 

approval requirements. 

[FR Doc. 2024–21094 Filed 9–25–24; 8:45 am] 

BILLING CODE 6001–FR–P 

DEPARTMENT OF DEFENSE 

Defense Acquisition Regulations 

System 

48 CFR Parts 204 and 217 

[Docket DARS–2024–0030] 

RIN 0750–AL70 

Defense Federal Acquisition 

Regulation Supplement: Data 

Universal Numbering System to 

Unique Entity Identifier Transition 

(DFARS Case 2022–D023) 

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 align the DFARS with the 

Federal Acquisition Regulation (FAR) 

transition from the Data Universal 

Numbering System to the unique entity 

identifier in the System for Award 

Management. 

DATES: Effective October 1, 2024. 

FOR FURTHER INFORMATION CONTACT: 

Tonya DeSaussure, telephone 202–805– 

1388. 

SUPPLEMENTARY INFORMATION: 

I. Background 

DoD is issuing a final rule amending 

the DFARS to transition from the use of 

the Data Universal Numbering System 

(DUNS) number to the unique entity 

identifier as a means of identifying 

Federal contractors. The FAR published 

a final rule implementing the change 

from the DUNS number to the unique 

entity identifier in the Federal Register 

on November 18, 2015 (80 FR 72035). 

As a supplement to the FAR, the DFARS 

is required to reflect the same 

terminology. The unique entity 

identifier is the authoritative identifier 

at the Federal level. This transition 

allows the Government to streamline the 

entity identification and validation 

process, making it easier and less 

burdensome on entities to do business 

with the Federal Government. 

II. Publication of This Final Rule for 

Public Comment Is Not Required by 

Statute 

The statute that applies to the 

publication of the Federal Acquisition 

Regulation (FAR) is 41 U.S.C. 1707, 

Publication of Proposed Regulations. 

Subsection (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 there is no significant 

cost or administrative impact on 

contractors or offerors. The FAR already 

requires contractors and offerors to use 

a unique entity identifier; this final rule 

merely updates the terminology used in 

the DFARS. 

III. Applicability to Contracts At or 

Below the Simplified Acquisition 

Threshold (SAT), for Commercial 

Products (Including Commercially 

Available Off-the-Shelf (COTS) Items), 

and for Commercial Services 

This final rule does not create any 

new solicitation provisions or contract 

clauses. It does not impact any existing 

solicitation provisions or contract 

clauses or their applicability to 

contracts valued at or below the 

simplified acquisition threshold, for 

commercial products including COTS 

items, or for commercial services. 

IV. 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, as amended. 

V. Congressional Review Act 

As required by the Congressional 

Review Act (5 U.S.C. 801–808) before an 

interim or final rule takes effect, DoD 


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