[Federal Register Volume 89, Number 197 (Thursday, October 10, 2024)]
[Rules and Regulations]
[Pages 82188-82189]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-23227]


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DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Part 252

[Docket DARS-2024-0018]
RIN 0750-AM03


Defense Federal Acquisition Regulation Supplement: Procurement 
Technical Assistance Program (DFARS Case 2024-D006)

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 implement a section of the 
National Defense Authorization Act for Fiscal Year 2024 that modifies 
certain definitions associated with the Procurement Technical 
Assistance Program.

DATES: Effective October 10, 2024.

FOR FURTHER INFORMATION CONTACT: Jeanette Snyder, telephone 703-508-
7524.

SUPPLEMENTARY INFORMATION:

I. Background

    DoD published a proposed rule in the Federal Register at 89 FR 
46836 on May 30, 2024, to implement section 853 of the National Defense 
Authorization Act (NDAA) for Fiscal Year (FY) 2024 (Pub. L. 118-31; 10 
U.S.C. 4951). Section 853 amends the definitions of ``nonprofit 
organization'' and ``business entities'' at 10 U.S.C. 4951 for the 
Procurement Technical Assistance Program (PTAP). One respondent 
submitted public comments in response to the proposed rule.

II. Discussion and Analysis

    DoD reviewed the public comments in the development of the final 
rule. A discussion of the comments is provided, as follows:

A. Summary of Significant Changes From the Proposed Rule

    There are no significant changes from the proposed rule.

B. Analysis of Public Comments

    Comment: The respondent indicated that the statement: ``In 
addition, business entities, including corporations, associations, 
partnerships, limited liability companies, limited liability 
partnerships, consortia, not-for-profit, or other legal entities will 
also be able to be a cooperative agreement holder'' in section IV of 
the proposed rule preamble is inaccurate. The respondent indicated that 
the term ``eligible entity'' refers to the entities that may be served 
by cooperative agreement holders. The respondent also indicated that 
``(as defined in 10 U.S.C. 4951)'' added to DFARS clause 252.205-
7000(a) is misleading, as ``business entities'' are the recipients of 
procurement technical assistance, not the providers.
    Response: Subsection (1) of 10 U.S.C. 4951 defines the term 
``eligible entity'' to mean a state, local government, nonprofit 
organization, and tribal organization. Subsection (5) of 10 U.S.C. 4951 
defines the term ``business entity'' to mean a corporation, 
association, partnership, limited liability company, limited liability 
partnership, consortia, not-for-profit, or other legal entity. The 
statute at 10 U.S.C. 4952 specifies that the purpose of the PTAP is, in 
part, to increase assistance provided by DoD to ``eligible entities'' 
furnishing procurement technical assistance to ``business entities''. 
Therefore, the referenced statement in section IV of the proposed rule 
preamble is inaccurate and is corrected in this final rule. However, 
the parenthetical ``as defined in 10 U.S.C. 4951'' in the contract 
clause at DFARS 252.205-7000, Provision of Information to Cooperative 
Agreement Holders, is accurate as ``business entities'' in this context 
refers to those entities that may receive assistance.

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 amends the clause at DFARS 252.205-7000, Provision 
of Information to Cooperative Agreement Holders. However, this final 
rule does not impose any new requirements on contracts at or below the 
SAT, for commercial products including COTS items, or for commercial 
services. The clause will continue to not apply to acquisitions at or 
below the SAT, and will continue to apply to acquisitions of commercial 
products excluding COTS items, and to acquisitions of commercial 
services.

IV. Expected Impact of the Rule

    This final rule is expected to impact DoD contractors whose 
contracts include the clause at DFARS 252.205-7000. The clause requires 
contractors to provide cooperative agreement holders under the PTAP, 
upon request, with a list of the contractor's employees or offices 
responsible for entering into subcontracts under defense contracts. As 
a result of this final rule, such contractors may be required to 
provide the list to different entities that are cooperative agreement 
holders under the PTAP.
    The changes in section 853 allow any type of nonprofit organization 
to be a cooperative agreement holder under the PTAP. In addition, 
section 853 provides a definition of ``business entities'' to specify 
the entities that may receive assistance under the PTAP, including 
corporations, associations, partnerships, limited liability companies, 
limited liability partnerships, consortia, not-for-profit, or other 
legal entities. These changes are reflected in the revisions to the 
clause at DFARS 252.205-7000. As a result, there may be increases in 
the number of entities that become cooperative agreement holders and in 
the number of business entities that receive assistance under the PTAP.

V. 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

[[Page 82189]]

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.

VI. 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.

VII. 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 is necessary to implement section 853 of the 
National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2024 
(Pub. L. 118-31; 10 U.S.C. 4951). Section 853 modifies the definitions 
of ``nonprofit organization'' and ``business entities'' at 10 U.S.C. 
4951 for the Procurement Technical Assistance Program. The objective of 
this rule is to implement the revised definitions in the contract 
clause at DFARS 252.205-7000, Provision of Information to Cooperative 
Agreement Holders. The clause requires contractors to provide 
cooperative agreement holders under the Procurement Technical 
Assistance Program, upon request, with a list of the contractor's 
employees or offices responsible for entering into subcontracts under 
defense contracts.
    There were no significant issues raised by the public comments in 
response to the initial regulatory flexibility analysis.
    According to data from the Procurement Business Intelligence 
Service, in the last three fiscal years, DoD awarded contracts that 
included the clause at 252.205-7000 to unique small entities as 
follows: 5,652 in fiscal year 2021, 5,127 in fiscal year 2022, and 
5,663 in fiscal year 2023. This averages out to approximately 5,480 per 
fiscal year. Therefore, DoD estimates that the number of small entities 
to which this rule will apply is approximately 5,480.
    This rule does not include any new reporting, recordkeeping, or 
other compliance requirements for small entities.
    There are no known significant alternative approaches that would 
accomplish the stated objectives.

VIII. Paperwork Reduction Act

    The Paperwork Reduction Act (44 U.S.C. chapter 35) applies to this 
final rule. However, these changes to the DFARS do not impose 
additional information collection requirements to the paperwork burden 
previously approved by the Office of Management and Budget (OMB) under 
OMB Control Number 0704-0286, entitled Defense FAR Supplement (DFARS) 
Part 205, Publicizing Contract Actions, and DFARS 252.205-7000, 
Provision of Information to Cooperative Agreement Holders.

List of Subjects in 48 CFR Part 252

    Government procurement.

Jennifer D. Johnson,
Editor/Publisher, Defense Acquisition Regulations System.

    Therefore, the Defense Acquisition Regulations System amends 48 CFR 
part 252 as follows:

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

0
1. The authority citation for 48 CFR part 252 continues to read as 
follows:

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


0
2. Revise and republish section 252.205-7000 to read as follows:


252.205-7000   Provision of Information to Cooperative Agreement 
Holders.

    As prescribed in 205.470, use the following clause:

Provision of Information to Cooperative Agreement Holders (OCT 2024)

    (a) Definition. As used in this clause--
    Cooperative agreement holder means a State or local government; 
a nonprofit organization; a tribal organization (as defined in 
section 4(c) of the Indian Self-Determination and Education 
Assistance Act (25 U.S.C. 5304(l))); or an economic enterprise (as 
defined in section 3(e) of the Indian Financing Act of 1974 (25 
U.S.C. 1452(e))) whether such economic enterprise is organized for 
profit or nonprofit purposes; which has an agreement with the Under 
Secretary of Defense for Acquisition and Sustainment to furnish 
procurement technical assistance to business entities (as defined in 
10 U.S.C. 4951).
    (b) The Contractor shall provide cooperative agreement holders, 
upon their request, with a list of those appropriate employees or 
offices responsible for entering into subcontracts under defense 
contracts. The list shall include the business address, telephone 
number, and area of responsibility of each employee or office.
    (c) The Contractor need not provide the listing to a particular 
cooperative agreement holder more frequently than once a year.


(End of clause)

[FR Doc. 2024-23227 Filed 10-9-24; 8:45 am]
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