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[Federal Register Volume 76, Number 125 (Wednesday, June 29, 2011)]
[Rules and Regulations]
[Pages 38050-38051]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-16319]

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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: Interim rule.

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SUMMARY: DoD is issuing an interim rule to implement section 812 of the 
National Defense Authorization Act for Fiscal Year 2011. Section 
812(b)(5) instructs DoD to issue guidance that, at a minimum, shall 
require 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 June 29, 2011. Comments on the interim rule should be 
submitted in writing to the address shown below on or before August 29, 
2011 to be considered in the formation of a final rule.

ADDRESSES: Submit comments identified by DFARS Case 2011-D031, using 
any of the following methods:
    [cir] Regulations.gov: http://www.regulations.gov.
    Submit comments via the Federal eRulemaking portal by inputting 
``DFARS Case 2011-D031'' under the heading ``Enter keyword or ID'' and 
selecting ``Search.'' Select the link ``Submit a Comment'' that 
corresponds with ``DFARS Case 2011-D031.'' Follow the instructions 
provided at the ``Submit a Comment'' screen. Please include your name, 
company name (if any), and ``DFARS Case 2011-D031'' on your attached 
document.
    [cir] E-mail: dfars@osd.mil. Include DFARS Case 2011-D031 in the 
subject line of the message.
    [cir] Fax: 703-602-0350.
    [cir] Mail: Defense Acquisition Regulations System, Attn: Mr. 
Dustin Pitsch, OUSD (AT&L) DPAP/DARS, Room 3B855, 3060 Defense 
Pentagon, Washington, DC 20301-3060.
    Comments received generally will be posted without change to http://www.regulations.gov, including any personal information provided. To 
confirm receipt of your comment(s),

[[Page 38051]]

please check www.regulations.gov approximately two to three days after 
submission to verify posting (except allow 30 days for posting of 
comments submitted by mail).

FOR FURTHER INFORMATION CONTACT: Mr. Dustin Pitsch, telephone 703 602-
0289.

SUPPLEMENTARY INFORMATION:

I. Background

    This interim rule amends the Defense Federal Acquisition Regulation 
Supplement (DFARS) subpart 215.3, Source Selection. It amends 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.

II. Executive Orders 12866 and 13563

    Executive Orders 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). Executive 
Order 13563 emphasizes the importance of quantifying both costs and 
benefits, of reducing costs, of harmonizing rules, and of promoting 
flexibility. This is a significant regulatory action and, therefore, 
was subject to review under Section 6(b) of Executive Order 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

    DoD has performed an initial regulatory flexibility analysis 
consistent with 5 U.S.C. 603. The interim rule will apply to DoD Major 
Defense Acquisition Program contractors and subcontractors. As such, it 
is not expected that this rule will have a significant impact on a 
significant number of small entities within the meaning of the 
Regulatory Flexibility Act, 5 U.S.C. 601, et seq. However, an Initial 
Regulatory Flexibility Analysis has been prepared and is summarized as 
follows.
    This interim rule amends the DFARS to implement section 812 of the 
National Defense Authorization Act for FY 2011 (Pub. L. 111-383) (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.
    The rule will apply to DoD Major Defense Acquisition Program 
contractors and subcontractors. Most major defense acquisition programs 
are awarded to large concerns as they 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 interim rule imposes no reporting, recordkeeping, or other 
information collection requirements. The proposed rule does not 
duplicate, overlap, or conflict with any other Federal rules. There are 
no known significant alternatives to the rule that would meet the 
requirements of the statute.
    DoD invites comments from small businesses and other interested 
parties on the expected impact of this rule on small entities.
    DoD will also consider comments from small entities concerning the 
existing regulations in subparts affected by this rule in accordance 
with 5 U.S.C. 601. Interested parties must submit such comments 
separately and should cite 5 U.S.C. 610 (DFARS Case 2011-D031) in 
correspondence.

IV. Paperwork Reduction Act

    The rule does not impose 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).

V. Determination To Issue an Interim Rule

    A determination has been made under the authority of the Secretary 
of Defense that urgent and compelling reasons exist to publish an 
interim rule prior to affording the public an opportunity to comment. 
This interim rule implements section 812 of the National Defense 
Authorization Act for Fiscal Year 2011, enacted on January 7, 2011. 
Section 812 requires implementation within 180 days, by July 6, 2011, 
and an interim rule is required to meet the implementation date. This 
action is necessary in order to require contracting officers to 
consider 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. 
Comments received in response to this interim rule will be considered 
in the formation of the final rule.

List of Subjects in 48 CFR Part 215

    Government procurement.

Mary Overstreet,
Editor, Defense Acquisition Regulations System.

    Therefore, 48 CFR part 215 is amended as follows:

PART 215--CONTRACTING BY NEGOTIATION

0
1. The authority citation for 48 CFR part 215 continues to read as 
follows:

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

0
2. Amend section 215.304 by adding paragraph (c)(iv) to read as 
follows:

215.304  Evaluation factors and significant subfactors.

    (c) * * *
    (iv) In accordance with section 812 of the National Defense 
Authorization Act for Fiscal Year 2011, consider 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.

[FR Doc. 2011-16319 Filed 6-28-11; 8:45 am]
BILLING CODE 5001-08-P
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