Federal Register / Vol. 86, No. 110 / Thursday, June 10, 2021 / Rules and Regulations 31073 

DEPARTMENT OF DEFENSE 

GENERAL SERVICES 

ADMINISTRATION 

NATIONAL AERONAUTICS AND 

SPACE ADMINISTRATION 

48 CFR Part 16 

[FAC 2021–06; FAR Case 2020–004; Item 

II; Docket No. FAR–2020–0004, Sequence 

No. 1] 

RIN 9000–AO04 

Federal Acquisition Regulation: 

Application of Micro-Purchase 

Threshold to Task and Delivery Orders 

AGENCY: Department of Defense (DoD), 

General Services Administration (GSA), 

and National Aeronautics and Space 

Administration (NASA). 

ACTION: Final rule. 

SUMMARY: DoD, GSA, and NASA are 

issuing a final rule amending the 

Federal Acquisition Regulation (FAR) to 

implement a section of the National 

Defense Authorization Act for Fiscal 

Year 2020 that raises the threshold for 

fair opportunity on certain task and 

delivery orders to the micro-purchase 

threshold. 

DATES: Effective: July 12, 2021. 

FOR FURTHER INFORMATION CONTACT: Mr. 

Michael O. Jackson, Procurement 

Analyst, at 202–208–4949 or 

Michaelo.jackson@gsa.gov for 

clarification of content. For information 

pertaining to status or publication 

schedules, contact the Regulatory 

Secretariat Division at 202–501–4755. 

Please cite FAC 2021–06 and FAR Case 

2020–004. 

SUPPLEMENTARY INFORMATION: 

I. Background 

DoD, GSA, and NASA published a 

proposed rule at 85 FR 67327, on 

October 22, 2020, to implement section 

826 of the National Defense 

Authorization Act (NDAA) for Fiscal 

Year (FY) 2020 (Pub. L. 116–92), which 

increases the threshold for requiring fair 

opportunity on orders under multipleaward contracts from $2,500 to the 

‘‘micro-purchase threshold’’. The fair 

opportunity to be considered at FAR 

16.505(b)(1) applies to orders over the 

threshold unless an exception at 

16.505(b)(2) applies. The threshold at 

FAR 16.505 is currently $3,500, as a 

result of inflation adjustments in 

accordance with FAR 1.109. The micropurchase threshold (MPT) is $10,000 

(FAR case 2018–004 published on July 

2, 2020, at 85 FR 40064). 

II. Discussion and Analysis 

There were no public comments 

submitted in response to the proposed 

rule, and no changes were made to the 

final rule. 

III. Applicability to Contracts at or 

Below the Simplified Acquisition 

Threshold and for Commercial Items, 

Including Commercially Available Offthe-Shelf Items 

This final rule does not create any 

new provisions or clauses, nor does it 

change the applicability of any existing 

provisions or clauses included in 

solicitations and contracts valued at or 

below the simplified acquisition 

threshold, or for commercial items, 

including commercially available offthe-shelf items. 

IV. Expected Impact of the Rule 

DoD, GSA, and NASA have performed 

an analysis for this final rule. This rule 

is expected to reduce the public burden 

because the threshold increase will 

reduce costs to submit an offer for the 

unsuccessful awardees who participate 

in fair opportunity competitions for 

orders under FAR part 16. DoD, GSA, 

and NASA recognize some awardees 

may be impacted by a reduction in the 

number of opportunities an awardee 

may have to receive an award of a 

delivery or task order through fair 

opportunity. Using Federal Procurement 

Data System (FPDS) data from FY 2017 

through FY 2019, the average number of 

fair opportunity task or delivery orders 

under FAR part 16 procedures is 

approximately 9,800 orders annually. 

DoD, GSA, and NASA estimate that the 

Government receives an average of three 

offers for each of the 9,800 task or 

delivery orders, resulting in an 

estimated 19,600 (9,800 × 2) 

unsuccessful offers. There are costs to 

submit the estimated 19,600 

unsuccessful offers, which will be 

eliminated by this rule. 

DoD, GSA, and NASA recognize that 

the increase in the MPT in FAR Case 

2018–004 has resulted in an increased 

use of the Governmentwide commercial 

purchase card and a general reduction 

in the number of FAR part 16 delivery 

and task orders awarded between $3,500 

and $10,000. According to FPDS, there 

were 12,911 fair opportunity FAR part 

16 awards between $3,500 and $10,000 

in FY 2017. In contrast, there were 6,421 

awards in FY 2019; a decrease of almost 

50%. This decrease can be attributed to 

the preference given to the 

Governmentwide commercial purchase 

card for procurements under the MPT. 

While it is unclear whether there will be 

further decreases in the number of FAR 

part 16 fair opportunity awards, it is 

clear that the increased MPT 

implemented by FAR Case 2018–004 

has already reduced the public and 

Government burden by approximately 

50% by shifting procurements from FAR 

part 16 delivery and task orders to 

Governmentwide commercial purchase 

cards. 

DoD, GSA, and NASA expect the rule 

to also reduce burden on the 

Government and streamline 

procurements for FAR part 16 orders 

below the MPT. Contracting officers will 

not be required to review multiple offers 

to make award, resulting in time savings 

for each order awarded. 

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 

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. 

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, 

GSA and NASA will send the rule and 

the ‘‘Submission of Federal Rules Under 

the Congressional Review Act’’ form to 

each House of the Congress and to the 

Comptroller General of the United 

States. A major rule cannot take effect 

until 60 days after it is published in the 

Federal Register. The Office of 

Information and Regulatory Affairs 

(OIRA) in the Office of Management and 

Budget has determined that this is not 

a major rule under 5 U.S.C. 804. 

VII. Regulatory Flexibility Act 

DoD, GSA, and NASA have prepared 

a Final Regulatory Flexibility Analysis 

(FRFA) consistent with the Regulatory 

Flexibility Act, 5 U.S.C. 601–612. The 

FRFA is summarized as follows: 

This final rule amends the Federal 

Acquisition Regulation to implement section 

826 of the National Defense Authorization 

Act (NDAA) for Fiscal Year (FY) 2020 (Pub. 

L. 116–92), which raises the threshold for fair 

opportunity on certain task and delivery 

orders to the word-based, ‘‘micro-purchase 

threshold’’. 


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31074 Federal Register / Vol. 86, No. 110 / Thursday, June 10, 2021 / Rules and Regulations 

The objective of the rule is to increase the 

threshold for requiring fair opportunity on 

FAR part 16 orders under multiple-award 

contracts from $3,500 to the word-based, 

‘‘micro-purchase threshold’’ for consistency 

of application and alignment with future 

adjustments. The legal basis for the rule is 

section 826 of the NDAA for FY 2020 (Pub. 

L. 116–92). 

There were no significant issues raised in 

response to the initial regulatory flexibility 

analysis. 

DoD, GSA, and NASA do not expect this 

rule to have a significant economic impact on 

a substantial number of small entities; most 

of the impact will be on the Government. 

This rule will likely affect small entities that 

participate in fair opportunity competitions 

for FAR part 16 task and delivery orders 

under multiple-award contracts conducted 

by the Federal Government between $3,500 

and the micro-purchase threshold, which 

currently is $10,000. DoD, GSA, and NASA 

do not expect a significant change in the 

number of orders awarded to small entities; 

however, in certain circumstances this rule is 

expected to reduce the costs associated with 

developing and submitting a response to task 

and delivery order competitions for actions 

up to $10,000. To assess the impact of the 

threshold increase, data was obtained from 

FPDS. For FY 2017 through FY 2019, there 

was an average of 9,803 FAR part 16 task and 

delivery orders awarded using fair 

opportunity between $3,500 and $10,000. Of 

these actions, an average of 5,852 were 

awarded to 843 unique small entities. As a 

result of this rule, it is assumed that 

approximately 843 small entities may 

experience a reduction in proposal costs on 

task and delivery orders valued between 

$3,500 and $10,000. 

This rule does not impose any reporting, 

recordkeeping, or other compliance 

requirements. 

There are no alternatives that are 

consistent with the objectives of the statute. 

Interested parties may obtain a copy 

of the FRFA from the Regulatory 

Secretariat Division. The Regulatory 

Secretariat Division has submitted a 

copy of the FRFA to the Chief Counsel 

for Advocacy of the Small Business 

Administration. 

VIII. Paperwork Reduction Act 

This 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. 

3501–3521). 

List of Subjects in 48 CFR Part 16 

Government procurement. 

William F. Clark, 

Director, Office of Government-wide 

Acquisition Policy, Office of Acquisition 

Policy, Office of Government-wide Policy. 

Therefore, DoD, GSA, and NASA 

amend 48 CFR part 16 as set forth 

below: 

PART 16—TYPES OF CONTRACTS 

■ 1. The authority citation for 48 CFR 

part 16 continues to read as follows: 

Authority: 40 U.S.C. 121(c); 10 U.S.C. 

chapter 137; and 51 U.S.C. 20113. 

16.505 [Amended] 

■ 2. Amend section 16.505 by— 

■ a. Removing from paragraph (b)(1)(i) 

introductory text ‘‘$3,500’’ and adding 

‘‘the micro-purchase threshold’’ in its 

place; 

■ b. Removing from paragraph (b)(2)(i) 

introductory text ‘‘delivery-order or 

task-order exceeding $3,500’’ and 

adding ‘‘delivery order or task order 

exceeding the micro-purchase 

threshold’’ in its place; and 

■ c. Removing from the paragraph 

(b)(2)(ii)(A) subject heading ‘‘$3,500’’ 

and adding ‘‘the micro-purchase 

threshold’’ in its place. 

[FR Doc. 2021–11864 Filed 6–9–21; 8:45 am] 

BILLING CODE 6820–EP–P 

DEPARTMENT OF DEFENSE 

GENERAL SERVICES 

ADMINISTRATION 

NATIONAL AERONAUTICS AND 

SPACE ADMINISTRATION 

48 CFR Parts 11, 19, 22, 26, 42, 52, and 

53 

[FAC 2021–06; Item III; Docket No. FAR– 

2021–0052; Sequence No. 2] 

Federal Acquisition Regulation; 

Technical Amendments 

AGENCY: Department of Defense (DoD), 

General Services Administration (GSA), 

and National Aeronautics and Space 

Administration (NASA). 

ACTION: Final rule. 

SUMMARY: This document makes 

amendments to the Federal Acquisition 

Regulation (FAR) in order to make 

needed editorial changes. 

DATES: Effective: July 12, 2021. 

FOR FURTHER INFORMATION CONTACT: Ms. 

Lois Mandell, Regulatory Secretariat 

Division (MVCB), at 202–501–4755 or 

GSARegSec@gsa.gov. Please cite FAC 

2021–06, Technical Amendment. 

SUPPLEMENTARY INFORMATION: This 

document makes editorial changes to 48 

CFR parts 11, 19, 22, 26, 42, 52 and 53 

of the FAR. 

List of Subjects in 48 CFR Parts 11, 19, 

22, 26, 42, 52, and 53 

Government procurement. 

William F. Clark, 

Director, Office of Government-wide 

Acquisition Policy, Office of Acquisition 

Policy, Office of Government-wide Policy. 

Therefore, DoD, GSA, and NASA 

amend 48 CFR parts 11, 19, 22, 26, 42, 

52, and 53 as set forth below: 

■ 1. The authority citation for 48 CFR 

parts 11, 19, 22, 26, 42, 52, and 53 

continues to read as follows: 

Authority: 40 U.S.C. 121(c); 10 U.S.C. 

chapter 137; and 51 U.S.C. 20113. 

PART 11—DESCRIBING AGENCY 

NEEDS 

11.201 [Amended] 

■ 2. Amend section 11.201 by removing 

paragraph (d)(2)(iii). 

PART 19—SMALL BUSINESS 

PROGRAMS 

19.102 [Amended] 

■ 3. Amend section 19.102 by removing 

from paragraph (a)(2) ‘‘https://

www.census.gov/eos/www/naics/’’ and 

adding ‘‘https://www.census.gov/naics/’’ 

in its place. 

19.201 [Amended] 

■ 4. Amend section 19.201 by removing 

from paragraph (c)(1) ‘‘Director of 

Small’’ and adding ‘‘Director of the 

Office of Small’’ in its place. 

19.702 [Amended] 

■ 5. Amend section 19.702 by removing 

from paragraph (d) ‘‘http://www.acq.

osd.mil/osbp/mentor_protege/’’ and 

adding ‘‘https://business.defense.gov/ 

Programs/Mentor-Protege-Program/’’ in 

its place. 

19.812 [Amended] 

■ 6. Amend section 19.812 by removing 

from paragraph (a) ‘‘https://

pubapp.dcma.mil/CASD/main.jsp’’’’ 

and adding ‘‘https://piee.eb.mil/pcm/ 

xhtml/unauth/index.xhtml))’’ in its 

place. 

PART 22—APPLICATION OF LABOR 

LAWS TO GOVERNMENT 

ACQUISITIONS 

22.805 [Amended] 

■ 7. Amend section 22.805 by removing 

from paragraph (a)(4)(i) ‘‘https://

ofccp.dol-esa.gov/preaward/pa_

reg.html’’ and adding ‘‘https://

www.dol.gov/agencies/ofccp/pre-award/ 

registry’’ in its place. 


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