[Federal Register: August 30, 2002 (Volume 67, Number 169)]
[Rules and Regulations]
[Page 56120-56122]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr30au02-26]
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 2, 12, 13, 19, and 25
[FAC 2001-09; FAR Case 2002-003; Item II]
RIN 9000-AJ40
Federal Acquisition Regulation; Temporary Emergency Procurement
Authority
AGENCIES: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Interim rule with request for comments.
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SUMMARY: The Civilian Agency Acquisition Council and the Defense
Acquisition Regulations Council (Councils) have agreed on an interim
rule amending the Federal Acquisition Regulation (FAR) to implement
Section 836 of the Fiscal Year 2002 National Defense Authorization Act.
Section 836 increases the amount of the micro-purchase threshold and
the simplified acquisition threshold for procurements of supplies or
services by or for DoD during fiscal years 2002 and 2003, where those
procurements are to facilitate the defense against terrorism or
biological or chemical attack against the United States.
DATES: Effective Date: August 30, 2002.
Comment Date: Interested parties should submit comments to the FAR
Secretariat at the address shown below on or before October 29, 2002,
to be considered in the formulation of a final rule.
ADDRESSES: Submit written comments to--General Services Administration,
FAR Secretariat (MVP), 1800 F Street, NW, Room 4035, Attn: Ms. Laurie
Duarte, Washington, DC 20405.
Submit electronic comments via the Internet to--farcase.2002-
003@gsa.gov
Please submit comments only and cite FAC 2001-09, FAR case 2002-
003, in all correspondence related to this case.
FOR FURTHER INFORMATION CONTACT: The FAR Secretariat, Room 4035, GS
Building, Washington, DC 20405, (202) 501-4755, for information
pertaining to status or publication schedules. For clarification of
content, contact Ms. Victoria Moss, Procurement Analyst, at (202) 501-
4764. Please cite FAC 2001-09, FAR case 2002-003.
SUPPLEMENTARY INFORMATION:
A. Background
This interim rule implements Section 836 of the Fiscal Year 2002
National Defense Authorization Act (Pub. L. 107-107, 10 U.S.C. 2302
Note). Section 836 increases the amount of the micro-purchase threshold
and the simplified acquisition threshold for procurements of supplies
or services by or for DoD during fiscal years 2002 and 2003, where
those procurements are to facilitate the defense against terrorism or
biological or chemical attack against the United States.
For acquisitions of supplies and services to facilitate the defense
against terrorism or biological or chemical attack against the United
States, by or for the Department of Defense, the micro-purchase
threshold is raised to $15,000 (except for construction subject to the
Davis-Bacon Act). The simplified acquisition threshold for such
acquisitions in support of a contingency operation is raised to
$250,000 inside the United States and $500,000 outside the United
States.
Any acquisition by or for the Department of Defense of
biotechnology supplies or biotechnology services to facilitate the
defense against terrorism or biological or chemical attack against the
United States shall be treated as being a procurement of commercial
items.
This is not a significant regulatory action and, therefore, was not
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.
B. Regulatory Flexibility Act
The changes 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. However, the increased thresholds
are limited to procurements that are to facilitate the defense against
terrorism or biological or chemical attack against the United States.
There are no data available on the number of procurements that will be
eligible. We expect the increased thresholds to this limited class of
procurements will apply to a very small number of small entities.
This interim rule does not impose any data collection requirements
on small business concerns. The rule does not duplicate, overlap, or
conflict with other relevant Federal rules. There are no significant
alternatives to the proposed rule that would accomplish the stated
beneficial objective.
The FAR Secretariat has submitted a copy of the Initial Regulatory
Flexibility
[[Page 56121]]
Analysis to the Chief Counsel for Advocacy of the Small Business
Administration. Interested parties may obtain a copy from the FAR
Secretariat. The Councils will consider comments from small entities
concerning the affected FAR subparts in accordance with 5 U.S.C. 610.
Interested parties must submit such comments separately and should cite
5 U.S.C 601, et seq. (FAC 2001-09, FAR case 2002-003), in
correspondence.
C. Paperwork Reduction Act
The Paperwork Reduction Act does not apply because the changes to
the FAR do not impose 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 (DoD), the Administrator of General Services (GSA), and the
Administrator of the National Aeronautics and Space Administration
(NASA) that urgent and compelling reasons exist to promulgate this
interim rule without prior opportunity for public comment. This action
is necessary because the FAR coverage implements Section 836 of the
Fiscal Year 2002 National Defense Authorization Act, signed on December
28, 2001, which provides for urgently needed authorities.
However, pursuant to Public Law 98-577 and FAR 1.501, the Councils
will consider public comments received in response to this interim rule
in the formation of the final rule.
List of Subjects in 48 CFR Parts 2, 12, 13, 19, and 25
Government procurement.
Dated: August 21, 2002.
AL Matera,
Director, Acquisition Policy Division.
Therefore, DoD, GSA, and NASA amend 48 CFR parts 2, 12, 13, 19, and
25 as set forth below:
1. The authority citation for 48 CFR parts 2, 12, 13, 19, and 25
continues to read as follows:
Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42
U.S.C. 2473(c).
PART 2--DEFINITIONS OF WORDS AND TERMS
2. Amend section 2.101 by revising the definitions ``Micro-
purchase'', ``Micro-purchase threshold'', and ``Simplified acquisition
threshold'' to read as follows:
2.101 Definitions.
* * * * *
Micro-purchase means an acquisition of supplies or services using
simplified acquisition procedures, the aggregate amount of which does
not exceed the micro-purchase threshold.
Micro-purchase threshold means $2,500, except it means--
(1) $2,000 for construction subject to the Davis-Bacon Act; and
(2) $15,000 for acquisitions by or for the Department of Defense
facilitating the defense against terrorism or biological or chemical
attack as described in 13.201(g), except for construction subject to
the Davis-Bacon Act.
* * * * *
Simplified acquisition threshold means $100,000, except that in the
case of any contract to be awarded and performed, or purchase to be
made--
(1) Outside the United States in support of a contingency operation
(as defined in 10 U.S.C. 101(a)(13)) or a humanitarian or peacekeeping
operation (as defined in 10 U.S.C. 2302(8) and 41 U.S.C. 259(d)), the
term means $200,000; or
(2) To facilitate the defense against terrorism or biological or
chemical attack against the United States, for acquisitions--
(i) Inside the United States, by or for the Department of Defense,
for which award is made and funds are obligated on or before September
30, 2003, in support of a contingency operation (as defined in 10
U.S.C. 101(a)(13)), the term means $250,000; or
(ii) Outside the United States, by or for the Department of
Defense, for which award is made and funds are obligated on or before
September 30, 2003, in support of a contingency operation (as defined
in 10 U.S.C. 101(a)(13)), the term means $500,000.
* * * * *
PART 12--ACQUISITION OF COMMERCIAL ITEMS
3. Amend section 12.102 by adding paragraph (f) to read as follows:
12.102 Applicability.
* * * * *
(f) Contracting officers shall treat any acquisition by or for the
Department of Defense of biotechnology supplies or biotechnology
services, for use to facilitate the defense against terrorism or
biological attack against the United States, as an acquisition of
commercial items. The policies of this part shall apply to such
acquisitions, including the requirement to use firm-fixed price
contracts or fixed-price contracts with economic price adjustments.
Nothing in this paragraph shall preclude a contracting officer from
treating an acquisition described in this paragraph as one for a non-
commercial item if a determination is made by the contracting officer
that the purchase cannot be made at a fair and reasonable price using
the policies of this part. This paragraph applies only when award is
made and funds are obligated on or before September 30, 2003.
PART 13--SIMPLIFIED ACQUISITION PROCEDURES
13.003 [Amended]
4. Amend section 13.003 in paragraph (b)(1) by adding ``($15,000
for acquisitions as described in 13.201(g))'' after ``$2,500''; and in
paragraph (b)(2) by removing ``$2,500'' and adding ``the micro-purchase
threshold'' in its place.
5. Amend section 13.201 by adding paragraph (g) to read as follows:
13.201 General.
* * * * *
(g) There is a temporary $15,000 micro-purchase threshold for the
acquisition of supplies or services by or for the Department of Defense
for which award is made and funds are obligated on or before September
30, 2003, facilitating the defense against terrorism or biological or
chemical attack against the United States (see 2.101). Purchases using
this authority must have a clear and direct relationship to the defense
against terrorism or biological or chemical attack.
PART 19--SMALL BUSINESS PROGRAMS
6. Amend section 19.502-1 by revising paragraph (b) to read as
follows:
19.502-1 Requirements for setting aside acquisitions.
* * * * *
(b) This requirement does not apply to purchases of $2,500 or less
($15,000 or less for acquisitions as described in 13.201(g)), or
purchases from required sources of supply under part 8 (e.g., Federal
Prison Industries, Committee for Purchase From People Who are Blind or
Severely Disabled, and Federal Supply Schedule contracts).
19.502-2 [Amended]
7. Amend section 19.502-2 in the first sentence of paragraph (a) by
removing ``$2,500,'' and adding ``$2,500 ($15,000 for acquisitions as
described in 13.202(g)),'' in its place.
8. Amend section 19.903 by--
a. Removing the word ``or'' from paragraph (b)(1);
[[Page 56122]]
b. Removing the period at the end of the sentence in paragraph
(b)(2) and adding ``; or'' in its place; and
c. Adding paragraph (b)(3) to read as follows:
19.903 Applicability.
* * * * *
(b) * * *
(3) Acquisitions of $15,000 or less facilitating the defense
against terrorism or biological or chemical attack against the United
States as described in 13.201(g).
PART 25--FOREIGN ACQUISITION
25.1101 [Amended]
9. Amend section 25.1101 in the introductory text of paragraph
(a)(1) by adding ``($15,000 for acquisitions as described in
13.201(g))'' after ``$2,500''.
25.1103 [Amended]
10. Amend section 25.1103 in paragraph (a) by removing ``$2,500,''
and adding ``$2,500 ($15,000 for acquisitions as described in
13.201(g)),'' in its place.
[FR Doc. 02-21868 Filed 8-29-02; 8:45 am]
BILLING CODE 6820-EP-U