[Federal Register Volume 74, Number 10 (Thursday, January 15, 2009)]
[Rules and Regulations]
[Pages 2416-2417]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-673]


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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 (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.


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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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