[Federal Register Volume 74, Number 10 (Thursday, January 15, 2009)]
[Rules and Regulations]
[Pages 2415-2416]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-667]


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DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Part 212

RIN 0750-AG17


Defense Federal Acquisition Regulation Supplement; Pilot Program 
for Transition to Follow-On Contracting After Use of Other Transaction 
Authority (DFARS Case 2008-D030)

AGENCY: Defense Acquisition Regulations System, Department of Defense 
(DoD).

ACTION: Interim rule with request for comments.

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SUMMARY: DoD has issued an interim rule amending the Defense Federal 
Acquisition Regulation Supplement (DFARS) to implement Section 824 of 
the National Defense Authorization Act for Fiscal Year 2009. Section 
824 amended the DoD pilot program for transition to follow-on 
contracting after use of other transaction authority, to establish a 
new program expiration date and to include items developed under 
research projects within the scope of the program.

DATES: Effective date: January 15, 2009.
    Comment date: Comments on the interim rule should be submitted in 
writing to the address shown below on or before March 16, 2009, to be 
considered in the formation of the final rule.

ADDRESSES: You may submit comments, identified by DFARS Case 2008-D030, 
using any of the following methods:
    [cir] Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
    [cir] E-mail: <a href="/cdn-cgi/l/email-protection#e88c8e899a9ba8879b8cc6858184"><span class="__cf_email__" data-cfemail="412527203332012e32256f2c282d">[email protected]</span></a>. Include DFARS Case 2008-D030 in the 
subject line of the message.
    [cir] Fax: 703-602-7887.
    [cir] Mail: Defense Acquisition Regulations System, Attn: Ms. Angie 
Sawyer, OUSD(AT&L)DPAP(DARS), IMD 3D139, 3062 Defense Pentagon, 
Washington, DC 20301-3062.
    [cir] Hand Delivery/Courier: Defense Acquisition Regulations 
System, Crystal Square 4, Suite 200A, 241 18th Street, Arlington, VA 
22202-3402.
    Comments received generally will be posted without change to http://www.regulations.gov, including any personal information provided.

FOR FURTHER INFORMATION CONTACT: Ms. Angie Sawyer, 703-602-8384.

SUPPLEMENTARY INFORMATION:

A. Background

    This interim rule amends the DoD pilot program addressed in DFARS 
Subpart 212.70, Pilot Program for Transition to Follow-On Contracting 
After Use of Other Transaction Authority. The pilot program implements 
Section 845(e) of the National Defense Authorization Act for Fiscal 
Year 1994 (10 U.S.C. 2371 note), and provides that certain items that 
do not otherwise meet the definition of ``commercial item'' may be 
treated as commercial items in the award of contracts and subcontracts 
that follow an other transaction agreement. Section 824 of the National 
Defense Authorization Act for Fiscal Year 2009 (Pub. L. 110-417) 
amended the authority for the pilot program to establish a new program 
expiration date of September 30, 2010, and to add items developed under 
research projects in accordance with 10 U.S.C. 2371 to the types of 
items to which the program applies.
    This rule was not subject to Office of Management and Budget review 
under Executive Order 12866, dated September 30, 1993.

B. Regulatory Flexibility Act

    DoD does not expect this rule to 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. Although the rule is 
expected to ease the transition of nontraditional defense contractors 
from the use of other transaction agreements to standard contracts, the 
economic impact is not expected to be substantial. Therefore, DoD has 
not performed an initial regulatory flexibility analysis. DoD invites 
comments from small businesses and other interested parties. DoD also 
will consider comments from small entities concerning the affected 
DFARS subpart in accordance with 5 U.S.C. 610. Such comments should be 
submitted separately and should cite DFARS Case 2008-D030.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply, because the rule does 
not impose any information collection requirements that require the 
approval of the Office of Management and Budget under 44 U.S.C. 3501, 
et seq.

[[Page 2416]]

D. 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 824 of the National Defense 
Authorization Act for Fiscal Year 2009 (Pub. L. 110-417). Section 824 
amended the DoD pilot program that permits the use of streamlined 
procedures in the award of contracts and subcontracts that follow other 
transaction agreements, to include items developed under research 
projects within the scope of the program. The pilot program is intended 
to ease the transition of nontraditional defense contractors from the 
use of other transaction agreements to standard contracts. 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 212

    Government procurement.

Michele P. Peterson,
Editor, Defense Acquisition Regulations System.

0
Therefore, 48 CFR part 212 is amended as follows:

PART 212--ACQUISITION OF COMMERCIAL ITEMS

0
1. The authority citation for 48 CFR part 212 continues to read as 
follows:

    Authority: 41 U.S.C. 421 and 48 CFR Chapter 1.


0
2. Section 212.7002-1 is amended by revising paragraphs (a)(2) and (4) 
to read as follows:


212.7002-1  Contracts under the program.

    (a) * * *
    (2) Is a follow-on contract for the production of an item or 
process begun as a prototype project under an other transaction 
agreement or as a research project carried out in accordance with 10 
U.S.C. 2371;
* * * * *
    (4) Is awarded on or before September 30, 2010; and
* * * * *

0
3. Section 212.7002-2 is amended by revising paragraphs (a)(1) and (3) 
to read as follows:


212.7002-2  Subcontracts under the program.

    (a) * * *
    (1) Is for the production of an item or process begun as a 
prototype project under an other transaction agreement or as a research 
project carried out in accordance with 10 U.S.C. 2371;
* * * * *
    (3) Is awarded on or before September 30, 2010;
* * * * *
 [FR Doc. E9-667 Filed 1-14-09; 8:45 am]
BILLING CODE 5001-08-P


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