[Federal Register: September 6, 2007 (Volume 72, Number 172)]
[Rules and Regulations]               
[Page 51193]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr06se07-17]                         

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DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Part 237

RIN 0750-AF69

 
Defense Federal Acquisition Regulation Supplement; Limitation on 
Contracts for the Acquisition of Certain Services (DFARS Case 2006-
D054)

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

ACTION: Final rule.

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SUMMARY: DoD has issued a final rule amending the Defense Federal 
Acquisition Regulation Supplement (DFARS) to implement Section 832 of 
the National Defense Authorization Act for Fiscal Year 2007. Section 
832 prohibits DoD from entering into a service contract to acquire a 
military flight simulator unless certain waiver criteria apply.

EFFECTIVE DATE: September 6, 2007.

FOR FURTHER INFORMATION CONTACT: Mr. Michael Benavides, Defense 
Acquisition Regulations System, OUSD (AT&L) DPAP (DARS), IMD 3D139, 
3062 Defense Pentagon, Washington, DC 20301-3062. Telephone (703) 602-
1302; facsimile (703) 602-7887. Please cite DFARS Case 2006-D054.

SUPPLEMENTARY INFORMATION: 

A. Background

    Section 832 of the National Defense Authorization Act for Fiscal 
Year 2007 (Pub. L. 109-364) prohibits DoD from entering into a service 
contract to acquire a military flight simulator, unless the Secretary 
of Defense determines that a waiver is necessary for national security 
purposes and provides an economic analysis to the congressional defense 
committees at least 30 days before the waiver takes effect. This final 
rule adds text at DFARS 237.102-71 to reflect the provisions of Section 
832 of Public Law 109-364.
    This rule was not subject to Office of Management and Budget review 
under Executive Order 12866, dated September 30, 1993.

B. Regulatory Flexibility Act

    This rule will not have a significant cost or administrative impact 
on contractors or offerors, or a significant effect beyond the internal 
operating procedures of DoD. Therefore, publication for public comment 
under 41 U.S.C. 418b is not required. However, DoD will consider 
comments from small entities concerning the affected DFARS subpart in 
accordance with 5 U.S.C. 610. Such comments should cite DFARS Case 
2006-D054.

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.

List of Subjects in 48 CFR Part 237

    Government procurement.

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


0
Therefore, 48 CFR part 237 is amended as follows:

PART 237--SERVICE CONTRACTING

0
1. The authority citation for 48 CFR part 237 continues to read as 
follows:

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

0
2. Section 237.102-71 is added to read as follows:


237.102-71   Limitation on service contracts for military flight 
simulators.

    (a) Definitions. As used in this subsection--
    (1) Military flight simulator means any system to simulate the 
form, fit, and function of a military aircraft that has no commonly 
available commercial variant.
    (2) Service contract means any contract entered into by DoD, the 
principal purpose of which is to furnish services in the United States 
through the use of service employees as defined in 41 U.S.C. 357(b).
    (b) Under Section 832 of Public Law 109-364, DoD is prohibited from 
entering into a service contract to acquire a military flight 
simulator. However, the Secretary of Defense may waive this prohibition 
with respect to a contract, if the Secretary--
    (1) Determines that a waiver is necessary for national security 
purposes; and
    (2) Provides an economic analysis to the congressional defense 
committees at least 30 days before the waiver takes effect. This 
economic analysis shall include, at a minimum--
    (i) A clear explanation of the need for the contract; and
    (ii) An examination of at least two alternatives for fulfilling the 
requirements that the contract is meant to fulfill, including the 
following with respect to each alternative:
    (A) A rationale for including the alternative.
    (B) A cost estimate of the alternative and an analysis of the 
quality of each cost estimate.
    (C) A discussion of the benefits to be realized from the 
alternative.
    (D) A best value determination of each alternative and a detailed 
explanation of the life-cycle cost calculations used in the 
determination.
    (c) When reviewing requirements or participating in acquisition 
planning that would result in a military department or defense agency 
acquiring a military flight simulator, the contracting officer shall 
notify the program officials of the prohibition in paragraph (b) of 
this subsection. If the program officials decide to request a waiver 
from the Secretary of Defense under paragraph (b) of this subsection, 
the contracting officer shall follow the procedures at PGI 237.102-71.

 [FR Doc. E7-17425 Filed 9-5-07; 8:45 am]

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