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[Federal Register Volume 80, Number 19 (Thursday, January 29, 2015)]
[Proposed Rules]
[Pages 4848-4850]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2015-01436]

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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: Proposed rule.

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SUMMARY: DoD is proposing to amend 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: Comments on the proposed rule should be submitted in writing to 
the address shown below on or before March 30, 2015, to be considered 
in the formation of the final rule.

ADDRESSES: Submit comments identified by DFARS Case 2014-D015, using 
any of the following methods:
    [cir] Regulations.gov: http://www.regulations.gov. Submit comments 
via the Federal eRulemaking portal by entering ``DFARS Case 2014-D015'' 
under the heading ``Enter keyword or ID'' and selecting ``Search.'' 
Select the link ``Submit a Comment'' that corresponds with ``DFARS Case 
2014-D015.'' Follow the instructions provided at the ``Submit a 
Comment'' screen. Please include your name, company name (if any), and 
``DFARS Case 2014-D015'' on your attached document.
    [cir] Email: osd.dfars@mail.mil. Include DFARS Case 2014-D015 in 
the subject line of the message.
    [cir] Fax: 571-372-6094.
    [cir] Mail: Defense Acquisition Regulations System, OUSD(AT&L)DPAP/
DARS, Attn: Ms. Jennifer Hawes, Room 3B941, 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), 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: Ms. Jennifer Hawes, telephone 571-372-
6115.

SUPPLEMENTARY INFORMATION: 

I. Background

    To fill the need for past performance data on lower dollar value 
contracts, DoD developed and deployed the Past Performance Information 
Retrieval System--Statistical Reporting (PPIRS-SR) module. This module 
of PPIRS 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 or service code. This objective data 
on past performance will assist contracting officers in making better-
informed best value award decisions on small dollar value acquisitions 
for supplies, while also eliminating the burden of collecting 
subjective past performance information on contractors for smaller 
dollar value contracts.

[[Page 4849]]

II. Discussion and Analysis

    A new section DFARS 213.106-2 entitled ``Evaluation of quotations 
or offers'' is added as well as a new provision at DFARS 252.213-70XX, 
Notice to Prospective Suppliers on the Use of Past Performance 
Information Retrieval System--Statistical Reporting in Past Performance 
Evaluations. The prescription to use the new provision in 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, is included at DFARS 
213.106-2-70. The provision is also added to the list of provisions and 
clauses that are applicable to the acquisition of commercial items at 
DFARS 212.301.
    Instructions on the use of PPIRS-SR, for both Government and 
industry users, are available in the PPIRS-SR User's Manual provided in 
the references section of www.PPIRS.gov. As such, a link to the User's 
Manual is provided at DFARS 213.106-2(b)(i)(A) and in the new provision 
at DFARS 252.213-70XX.

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

    DoD expects this proposed rule may 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. Therefore, an 
initial regulatory flexibility analysis has been prepared and is 
summarized as follows:
    This rule proposes to amend the Defense Federal Acquisition 
Regulation Supplement (DFARS) to require contracting officers to 
consider information available in the Statistical Reporting module of 
the Past Performance Information Retrieval System when evaluating the 
past performance of offerors under 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 Past Performance Information Retrieval System--Statistical 
Reporting (PPIRS-SR) module 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 or service 
code. Contracting officers will use this objective data to make better-
informed best value award decisions for supply contracts valued at less 
than or equal to $1 million.
    This rule will apply to small entities submitting quotations or 
offers on competitive solicitations for supplies issued using FAR part 
13 simplified acquisition procedures, including acquisitions valued at 
less than or equal to $1 million under the authority of FAR subpart 
13.5. According to a report generated in the Federal Procurement Data 
System--Next Generation, 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.
    This rule creates no new reporting, recordkeeping, or other 
compliance requirements. PPIRS-SR generates past performance ratings 
based on objective delivery and quality data on current and recent 
contracts available from other systems.
    The rule does not duplicate, overlap, or conflict with any other 
Federal rules and there are no known significant alternatives to the 
rule.
    DoD invites comments from small business concerns 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. 610. Interested parties must submit such comments 
separately and should cite 5 U.S.C. 610 (DFARS Case 2014-D015), in 
correspondence.

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 212, 213, and 252

    Government procurement.

Manuel Quinones,
Editor, Defense Acquisition Regulations System.

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

0
1. The authority citation for 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 (xvii) as 
paragraphs (f)(vi) through (xviii) 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 252.213-70XX, Notice to Prospective Suppliers on 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 those 
valued at less than or equal to $1 million under the authority at FAR 
subpart 13.5, 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

[[Page 4850]]

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 252.213-70XX, 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 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 252.213-70XX to read as follows:

252.213-70XX   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 Performance Information 
Retrieval System--Statistical Reporting in Past Performance Evaluations 
(Date)

    (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(s) whose 
quotations(s) or offer(s) represent(s) 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. 2015-01436 Filed 1-28-15; 8:45 am]
BILLING CODE 5001-01-P
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