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[Federal Register Volume 80, Number 100 (Tuesday, May 26, 2015)]
[Rules and Regulations]
[Pages 30117-30118]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-12339]

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DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Parts 212, 213, and 252

RIN 0750-AI40

Defense Federal Acquisition Regulation Supplement: Past 
Performance Information Retrieval System--Statistical Reporting (PPIRS-
SR) (DFARS Case 2014-D015)

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 require contracting 
officers to consider information in the Statistical Reporting module of 
the Past Performance Information Retrieval System when evaluating past 
performance of offerors under competitive solicitations for supplies 
using simplified acquisition procedures.

DATES: Effective May 26, 2015.

FOR FURTHER INFORMATION CONTACT: Ms. Jennifer Hawes, telephone 571-372-
6115.

SUPPLEMENTARY INFORMATION:

I. Background

    DoD published a proposed rule in the Federal Register at 80 FR 4848 
on January 29, 2015, to revise the DFARS to add a new provision at 
DFARS 252.213-7000, Notice to Prospective Suppliers on the Use of Past 
Performance Information Retrieval System--Statistical Reporting in Past 
Performance Evaluations, for use in competitive solicitations for 
supplies using FAR part 13 simplified acquisition procedures, including 
those for acquisitions valued at less than or equal to $1 million under 
FAR 13.5. One respondent submitted a public comment in response to the 
proposed rule.

II. Discussion and Analysis

    DoD reviewed the public comment in the development of the final 
rule. A discussion of the comment and the changes made to the rule is 
provided below:

A. Analysis of Public Comment

    Comment: A respondent commented that streamlining a formal and 
systematic process will improve the opportunities for small businesses 
and reduce bias in the award of Government contracts.
    Response: No changes were made a result of this comment.

B. Other Changes

    The final rule includes a clarification in the prescription at 
DFARS 213.106-2-70 that the provision is applicable for use in 
competitive solicitations using FAR part 12 procedures for the 
acquisition of commercial items. A minor editorial change is also made 
at 212.301(f)(v) to address the reference to the DFARS provision 
252.213-7000, Notice to Prospective Suppliers on Use of Past 
Performance Information Retrieval System--Statistical Reporting in Past 
Performance Evaluations, in the same manner as the other content of 
this section.

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) to require contracting officers to consider 
information available in Past Performance Information Retrieval System-
Statistical Reporting (PPIRS-SR) when evaluating the past performance 
of offerors under competitive solicitations for supplies using FAR part 
13 simplified acquisition procedures (including acquisitions under the 
authority of FAR subpart 13.5 valued at less than or equal to $1 
million).
    This rule will help fill the gap between the higher DoD threshold 
for the collection and evaluation of past performance information and 
the thresholds at FAR 15.304(c)(3)(i). PPIRS-SR collects quantifiable 
delivery and quality data from existing systems and uses that data to 
classify each supplier's performance by Federal supply class and 
product service code. Contracting officers will use this objective data 
to help make better-informed best value award decisions for supply 
contracts valued at less than or equal to $1 million.
    No comments were received from the public regarding the initial 
regulatory flexibility analysis.
    This rule will apply to small businesses submitting offers on 
competitive solicitations for supplies issued using simplified 
acquisition procedures valued at less than $1 million. According to a 
report generated in the Federal Procurement Data System, in fiscal year 
2013, DoD made 15,258 new competitive awards for commercial supplies 
valued at less than or equal to $1 million to 4,018 unique small 
businesses.
    The rule creates no new reporting, recordkeeping, or other 
compliance requirements. There are no known significant alternatives to 
the rule. The impact of this rule on small business is not expected to 
be significant.

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).

[[Page 30118]]

List of Subjects in 48 CFR Part 212, 213, and 252

    Government procurement.

Amy G. Williams,
Editor, Defense Acquisition Regulations System.

    Therefore, 48 CFR parts 212, 213, and 252 are amended as follows:

0
1. The authority citation for 48 CFR parts 212, 213, and 252 continues 
to read as follows:

    Authority: 41 U.S.C. 1303 and 48 CFR chapter 1.

PART 212--ACQUISITION OF COMMERCIAL ITEMS

0
2. In section 212.301, redesignate paragraphs (f)(v) through (xviii) as 
paragraphs (f)(vi) through (xix), respectively, and add a new paragraph 
(f)(v) to read as follows:

212.301  Solicitation provisions and contract clauses for the 
acquisition of commercial items.

    (f) * * *
    (v) Part 213--Simplified Acquisition Procedures. Use the provision 
at 252.213-7000, Notice to Prospective Suppliers on Use of Past 
Performance Information Retrieval System--Statistical Reporting in Past 
Performance Evaluations, as prescribed in 213.106-2-70.
* * * * *

PART 213--SIMPLIFED ACQUISITION PROCEDURES

0
3. Add sections 213.106-2 and 213.106-2-70 to subpart 213.1 to read as 
follows:

213.106-2  Evaluation of quotations or offers.

    (b)(i) For competitive solicitations for supplies using FAR part 13 
simplified acquisition procedures, including acquisitions valued at 
less than or equal to $1 million under the authority at FAR subpart 
13.5, the contracting officer shall--
    (A) Consider data available in the statistical reporting module of 
the Past Performance Information Retrieval System (PPIRS-SR) regarding 
the supplier's past performance history for the Federal supply class 
(FSC) and product or service code (PSC) of the supplies being 
purchased. Procedures for the use of PPIRS-SR in the evaluation of 
quotations or offers are provided in the PPIRS-SR User's Manual 
available under the references section of the PPIRS Web site at 
www.ppirs.gov;
    (B) Ensure the basis for award includes an evaluation of each 
supplier's past performance history in PPIRS-SR for the FSC and PSC of 
the supplies being purchased; and
    (C) In the case of a supplier without a record of relevant past 
performance history in PPIRS-SR for the FSC or PSC of the supplies 
being purchased, the supplier may not be evaluated favorably or 
unfavorably for its past performance history.

213.106-2-70  Solicitation provision.

    Use the provision at 252.213-7000, Notice to Prospective Suppliers 
on the Use of Past Performance Information Retrieval System--
Statistical Reporting in Past Performance Evaluations, in competitive 
solicitations for supplies when using FAR part 13 simplified 
acquisition procedures, including competitive solicitations using FAR 
part 12 procedures for the acquisition of commercial items and 
acquisitions valued at less than or equal to $1 million under the 
authority at FAR subpart 13.5.

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

0
4. Add new section 252.213-7000 to read as follows:

252.213-7000  Notice to Prospective Suppliers on Use of Past 
Performance Information Retrieval System--Statistical Reporting in Past 
Performance Evaluations.

    As prescribed in 213.106-2-70, use the following provision:

Notice to Prospective Suppliers on Use of Past Peformance Information 
Retrieval System--Statistical Reporting in Past Performance Evaluations 
(May 2015)

    (a) The Past Performance Information Retrieval System--
Statistical Reporting (PPIRS-SR) application (http://www.ppirs.gov/) 
will be used in the evaluation of suppliers' past performance in 
accordance with DFARS 213.106-2(b)(i).
    (b) PPIRS-SR collects quality and delivery data on previously 
awarded contracts and orders from existing Department of Defense 
reporting systems to classify each supplier's performance history by 
Federal supply class (FSC) and product or service code (PSC). The 
PPIRS-SR application provides the contracting officer quantifiable 
past performance information regarding a supplier's quality and 
delivery performance for the FSC and PSC of the supplies being 
purchased.
    (c) The quality and delivery classifications identified for a 
supplier in PPIRS-SR will be used by the contracting officer to 
evaluate a supplier's past performance in conjunction with the 
supplier's references (if requested) and other provisions of this 
solicitation under the past performance evaluation factor. The 
Government reserves the right to award to the supplier whose 
quotation or offer represents the best value to the Government.
    (d) PPIRS-SR classifications are generated monthly for each 
contractor and can be reviewed by following the access instructions 
in the PPIRS-SR User's Manual found at https://www.ppirs.gov/ppirsfiles/pdf/PPIRS-SR_UserMan.pdf. Contractors are granted access 
to PPIRS-SR for their own classifications only. Suppliers are 
encouraged to review their own classifications, the PPIRS-SR 
reporting procedures and classification methodology detailed in the 
PPIRS-SR User's Manual, and PPIRS-SR Evaluation Criteria available 
from the references at http://www.ppirs.gov/ppirsfiles/reference.htm. The method to challenge a rating generated by PPIRS-
SR is provided in the User's Manual.

(End of provision)

[FR Doc. 2015-12339 Filed 5-22-15; 8:45 am]
 BILLING CODE 5001-06-P
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