[Federal Register: January 15, 2009 (Volume 74, Number 10)]
[Rules and Regulations]
[Page 2416-2417]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr15ja09-34]

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DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Part 216

RIN 0750-AG14


Defense Federal Acquisition Regulation Supplement; Delegation of
Authority for Single Award Task or Delivery Order Contracts (DFARS Case
2008-D017)

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 address Federal
Acquisition Regulation provisions that permit the award of a single
source task or delivery order contract exceeding $100 million, if the
head of the agency determines it is necessary in the public interest.
The DFARS rule specifies that the authority to make such a
determination may not be delegated below the level of the senior
procurement executive.

DATES: Effective Date: January 15, 2009.

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 2008-D017.

SUPPLEMENTARY INFORMATION:

A. Background

    An interim rule amending the Federal Acquisition Regulation (FAR)
was published at 73 FR 54008 on September 17, 2008, to implement
Section 843 of the National Defense Authorization Act for Fiscal Year
2008 (Pub. L. 110-181). Section 843 prohibits the award of a task or
delivery order contract in an amount exceeding $100 million to a single
source unless the head of the agency determines that: the task or
delivery orders expected under the contract are so integrally related
that only a single source can reasonably perform the work; the contract
provides only for firm-fixed-price task or delivery orders; only one
source is qualified and capable of performing the work at a reasonable
price to the Government; or it is necessary in the public interest to
award the contract to a single source due to exceptional circumstances.
With regard to the delegation of authority provision at FAR 1.108(b),
this DFARS rule specifies that the head of the agency may not delegate
the authority to make a single source public interest determination
below the level of the senior procurement executive. The rule also
requires that a copy of any determination authorizing the award of a
single source task or delivery order contract be submitted to the
Deputy Director, Defense Procurement and Acquisition Policy (Contract Policy and International
Contracting).
    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
2008-D017.

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 216

    Government procurement.

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

0
Therefore, 48 CFR part 216 is amended as follows:

PART 216--TYPES OF CONTRACTS

0
1. The authority citation for 48 CFR part 216 continues to read as
follows:

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


0
2. Section 216.504 is added to read as follows:


216.504  Indefinite-quantity contracts.

    (c)(1)(ii)(D) Limitation on single award contracts.

[[Page 2417]]

    (1) The authority to make the determination authorized in FAR
16.504(c)(1)(ii)(D)(1)(iv) shall not be delegated below the level of
the senior procurement executive.
    (3) A copy of any determination made in accordance with FAR
16.504(c)(1)(ii)(D) shall be submitted to: Deputy Director, Defense
Procurement (Contract Policy and International Contracting), OUSD
(AT&L) DPAP (CPIC), 3060 Defense Pentagon, Washington, DC 20301-3060.

[FR Doc. E9-673 Filed 1-14-09; 8:45 am]

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