46816 Federal Register / Vol. 73, No. 156 / Tuesday, August 12, 2008 / Rules and Regulations 

(3) Contract adjustment boards will 

render decisions as expeditiously as 

practicable. The Chair shall sign a 

memorandum of decision disposing of 

the case. The decision shall be dated 

and shall contain the information 

required by FAR 50.103–6. The 

memorandum of decision shall not 

contain any information classified 

‘‘Confidential’’ or higher. The board’s 

decision will be sent to the appropriate 

official for implementation. 

250.103–6 Disposition. 

For requests denied or approved 

below the Secretarial level, follow the 

disposition procedures at PGI 250.103–

6. 

250.104 Residual powers. 

250.104–3 Special procedures for 

unusually hazardous or nuclear risks. 

250.104–3–70 Indemnification under 

contracts involving both research and 

development and other work. 

When indemnification is to be 

provided on contracts requiring both 

research and development work and 

other work, the contracting officer shall 

insert an appropriate clause using the 

authority of both 10 U.S.C. 2354 and 

Public Law 85–804. 

(a) The use of Public Law 85–804 is 

limited to work which cannot be 

indemnified under 10 U.S.C. 2354 and 

is subject to compliance with FAR 

50.104. 

(b) Indemnification under 10 U.S.C. 

2354 is covered by 235.070. 

PART 252—SOLICITATION 

PROVISIONS AND CONTRACT 

CLAUSES 

252.203–7002 [Removed] 

■ 5. Section 252.203–7002 is removed. 

[FR Doc. E8–18504 Filed 8–11–08; 8:45 am] 

BILLING CODE 5001–08–P 

DEPARTMENT OF DEFENSE 

Defense Acquisition Regulations 

System 

48 CFR Part 208 

RIN 0750–AG03 

Defense Federal Acquisition 

Regulation Supplement; Competition 

Requirements for Purchases From 

Federal Prison Industries (DFARS 

Case 2008–D015) 

AGENCY: Defense Acquisition 

Regulations System, Department of 

Defense (DoD). 

ACTION: Interim rule with request for 

comments. 

SUMMARY: DoD has issued an interim 

rule amending the Defense Federal 

Acquisition Regulation Supplement to 

implement Section 827 of the National 

Defense Authorization Act for Fiscal 

Year 2008. Section 827 requires the use 

of competitive procedures in the 

acquisition of items for which Federal 

Prison Industries has a significant 

market share. 

DATES: Effective date: August 12, 2008. 

Comment date: Comments on the 

interim rule should be submitted in 

writing to the address shown below on 

or before October 14, 2008, to be 

considered in the formation of the final 

rule. 

ADDRESSES: You may submit comments, 

identified by DFARS Case 2008–D015, 

using any of the following methods: 

Æ Federal eRulemaking Portal: 

http://www.regulations.gov. Follow the 

instructions for submitting comments. 

Æ E-mail: dfars@osd.mil. Include 

DFARS Case 2008–D015 in the subject 

line of the message. 

Æ Fax: 703–602–7887. 

Æ Mail: Defense Acquisition 

Regulations System, Attn: Mr. Michael 

Benavides, OUSD (AT&L) DPAP 

(DARS), IMD 3D139, 3062 Defense 

Pentagon, Washington, DC 20301–3062. 

Æ 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: Mr. 

Michael Benavides, 703–602–1302. 

SUPPLEMENTARY INFORMATION: 

A. Background 

Section 827 of the National Defense 

Authorization Act for Fiscal Year 2008 

(Pub. L. 110–181) amended 10 U.S.C. 

2410n to require the use of competitive 

procedures in the acquisition of items 

for which Federal Prison Industries 

(FPI) has a significant market share. 

Section 827 provides that FPI shall be 

treated as having a significant share of 

the market for a product if DoD, in 

consultation with the Office of Federal 

Procurement Policy, determines that the 

FPI share of the DoD market for the 

category of products including that 

product is greater than 5 percent. 

DoD has determined that FPI 

presently has a significant market share 

of the items in the following Federal 

Supply Classes (FSC). DoD will update 

the following list as necessary. 

FSC Description 

3510 Laundry and Dry Cleaning Equipment. 

5340 Miscellaneous Hardware. 

5935 Connectors, Electrical. 

5975 Electrical Hardware and Supplies. 

5995 Cable, cord, wire assemblies; 

communications equipment. 

6145 Wire and cable, Electrical. 

7110 Office Furniture. 

7210 Household Furnishings. 

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 has prepared an initial regulatory 

flexibility analysis consistent with 5 

U.S.C. 603. A copy of the analysis may 

be obtained from the point of contact 

specified herein. The analysis is 

summarized as follows: 

The objective of the rule is to provide 

for competition in the acquisition of 

items for which FPI has a significant 

market share. The legal basis for the rule 

is 10 U.S.C. 2410n, as amended by 

Section 827 of the National Defense 

Authorization Act for Fiscal Year 2008 

(Pub. L. 110–181). The rule is expected 

to benefit small business concerns that 

offer items for which FPI has a 

significant market share, by permitting 

those concerns to compete for 

additional DoD contract awards. The 

rule also could adversely impact small 

business concerns that provide supplies 

and services to FPI relative to the 

affected items. The rule deviates from 

the policy in Subpart 8.6 of the Federal 

Acquisition Regulation with regard to 

the acquisition of items from FPI. This 

alternate DoD policy is necessary to 

implement Section 827 of Public Law 

110–181. 

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–D015. 

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. 

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 


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Federal Register / Vol. 73, No. 156 / Tuesday, August 12, 2008 / Rules and Regulations 46817 

prior to affording the public an 

opportunity to comment. This interim 

rule implements Section 827 of the 

National Defense Authorization Act for 

Fiscal Year 2008 (Pub. L. 110–181). 

Section 827 requires DoD to use 

competitive procedures in the 

acquisition of items for which FPI has 

a significant share of the DoD market. 

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 208 

Government procurement. 

Michele P. Peterson, 

Editor, Defense Acquisition Regulations 

System. 

■ Therefore, 48 CFR part 208 is 

amended as follows: 

PART 208—REQUIRED SOURCES OF 

SUPPLIES AND SERVICES 

■ 1. The authority citation for 48 CFR 

part 208 continues to read as follows: 

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

Chapter 1. 

■ 2. Subpart 208.6 is added to read as 

follows: 

Subpart 208.6—Acquisition From 

Federal Prison Industries, Inc. 

208.602–70 Acquisition of items for which 

FPI has a significant market share. 

(a) Scope. This subsection 

implements Section 827 of the National 

Defense Authorization Act for Fiscal 

Year 2008 (Pub. L. 110–181). 

(b) Definition. Item for which FPI has 

a significant market share, as used in 

this subsection, means an item for 

which FPI’s share of the DoD market for 

the federal supply class including that 

item is greater than 5 percent, as 

determined by DoD in consultation with 

the Office of Federal Procurement 

Policy. A list of the federal supply 

classes of items for which FPI has a 

significant market share is maintained at 

http://www.acq.osd.mil/dpap/cpic/cp/ 

specific_policy_areas.html#

federal_prison. 

(c) Policy. 

(1) When acquiring an item for which 

FPI has a significant market share—

(i) Acquire the item using—

(A) Competitive procedures (e.g., the 

procedures in FAR 6.102, the set-aside 

procedures in FAR Subpart 19.5, or 

competition conducted in accordance 

with FAR Part 13); or 

(B) The fair opportunity procedures in 

FAR 16.505, if placing an order under 

a multiple award delivery-order 

contract; and 

(ii) Include FPI in the solicitation 

process, consider a timely offer from 

FPI, and make an award in accordance 

with the policy at FAR 8.602(a)(4)(ii) 

through (v). 

(2) When acquiring an item for which 

FPI does not have a significant market 

share, acquire the item in accordance 

with the policy at FAR 8.602. 

[FR Doc. E8–18506 Filed 8–11–08; 8:45 am] 

BILLING CODE 5001–08–P 

DEPARTMENT OF DEFENSE 

Defense Acquisition Regulations 

System 

48 CFR Parts 208, 236, and 252 

Defense Federal Acquisition 

Regulation Supplement; Technical 

Amendments 

AGENCY: Defense Acquisition 

Regulations System, Department of 

Defense (DoD). 

ACTION: Final rule. 

SUMMARY: DoD is making technical 

amendments to the Defense Federal 

Acquisition Regulation Supplement 

(DFARS) to update a subpart heading, a 

cross-reference, and a form title. 

DATES: Effective Date: August 12, 2008. 

FOR FURTHER INFORMATION CONTACT: Ms. 

Michele Peterson, Defense Acquisition 

Regulations System, OUSD (AT&L) 

DPAP (DARS), IMD 3D139, 3062 

Defense Pentagon, Washington, DC 

20301–3062. Telephone 703–602–0311; 

facsimile 703–602–7887. 

SUPPLEMENTARY INFORMATION: 

This final rule amends DFARS text as 

follows: 

Æ Subpart 208.7. Updates the subpart 

heading for consistency with the 

heading of the corresponding Federal 

Acquisition Regulation subpart. 

Æ 236.570. Updates a cross-reference. 

Æ 252.235–7003. Updates Alternate I 

to reflect the current title of DD Form 

1494. 

List of Subjects in 48 CFR Parts 208, 

236, and 252 

Government procurement. 

Michele P. Peterson, 

Editor, Defense Acquisition Regulations 

System. 

■ Therefore, 48 CFR parts 208, 236, and 

252 are amended as follows: 

■ 1. The authority citation for 48 CFR 

parts 208, 236, and 252 continues to 

read as follows: 

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

Chapter 1. 

PART 208—REQUIRED SOURCES OF 

SUPPLIES AND SERVICES 

■ 2. The heading of Subpart 208.7 is 

revised to read as follows: 

Subpart 208.7—Acquisition From 

Nonprofit Agencies Employing People 

Who Are Blind or Severely Disabled 

PART 236—CONSTRUCTION AND 

ARCHITECT-ENGINEER CONTRACTS 

236.570 [Amended] 

■ 3. Section 236.570 is amended in 

paragraph (b)(5) by removing ‘‘236.213–

70’’ and adding in its place ‘‘236.213’’. 

PART 252—SOLICITATION 

PROVISIONS AND CONTRACT 

CLAUSES 

252.235–7003 [Amended] 

■ 4. Section 252.235–7003 is amended 

in Alternate I as follows: 

■ a. By revising the Alternate I date to 

read ‘‘(AUG 2008)’’; and 

■ b. In the introductory text and in 

paragraph (c) by removing ‘‘Application 

for Frequency Authorization’’ and 

adding in its place ‘‘Application for 

Equipment Frequency Allocation’’. 

[FR Doc. E8–18492 Filed 8–11–08; 8:45 am] 

BILLING CODE 5001–08–P 

DEPARTMENT OF DEFENSE 

Defense Acquisition Regulations 

System 

48 CFR Parts 209, 217, and 246 

RIN 0750–AF86 

Defense Federal Acquisition 

Regulation Supplement; Ship Critical 

Safety Items (DFARS Case 2007–D016) 

AGENCY: Defense Acquisition 

Regulations System, Department of 

Defense (DoD). 

ACTION: Final rule. 

SUMMARY: DoD has adopted as final, 

without change, an interim rule 

amending the Defense Federal 

Acquisition Regulation Supplement 

(DFARS) to implement Section 130 of 

the National Defense Authorization Act 

for Fiscal Year 2007. Section 130 

requires DoD to establish a quality 

control policy for the procurement, 

modification, repair, and overhaul of 

ship critical safety items. 

DATES: Effective Date: August 12, 2008. 

FOR FURTHER INFORMATION CONTACT: Mr. 

Michael Benavides, Defense Acquisition 

Regulations System, OUSD (AT&L) 

DPAP (DARS), IMD 3D139, 3062 


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