61502 Federal Register / Vol. 85, No. 189 / Tuesday, September 29, 2020 / Rules and Regulations

225.7002–2 Exceptions. alloys, such as consolidation of metal The revisions and additions read as * * * * * powders. follows: (b) * * * * * * * * 252.225–7052 Restriction on the (2) The supporting documentation for 225.7018–3 [Amended] Acquisition of Certain Magnets, Tantalum, the determination shall include an and Tungsten. ■ 8. Amend section 225.7018–3 by— analysis and written certification by the * * * * * requiring activity, with specificity, why ■ a. In (c)(1)(ii) removing ‘‘tungsten alternatives that would not require a heavy alloy mill product’’ and adding Restriction on the Acquisition of domestic nonavailability determination ‘‘tantalum metal, tantalum alloy, or Certain Magnets, Tantalum, and are unacceptable. tungsten heavy alloy mill product’’ in Tungsten (Oct 2020) * * * * * its place; (a) * * * ■ b. In (c)(2) removing ‘‘PGI 225.7018– ■ Covered material means— 4. Amend section 225.7003–3 by 3(c)(1)(ii)’’ and adding ‘‘PGI 225.7018– (1) Samarium-cobalt magnets; revising paragraph (b)(5)(i) to read as 3(c)(2)’’ in its place; (2) Neodymium-iron-boron magnets; follows: ■ c. In paragraph (d) introductory text (3) Tantalum metal and alloys; removing ‘‘concerned,’’ and adding 225.7003–3 Exceptions. (4) Tungsten metal powder; and ‘‘concerned, as specified in 225.7018– * * * * * (5) Tungsten heavy alloy or any 4,’’ in its place; and (b) * * * finished or semi-finished component ■ d. In paragraph (d)(1) removing (5) * * * containing tungsten heavy alloy. ‘‘tungsten heavy alloy’’ and adding (i) The Secretary of the military ‘‘tantalum metal, tantalum alloy, or * * * * * department concerned is authorized, tungsten heavy alloy’’ in its place. (b) * * * without power of redelegation, to make ■ 9. Amend section 225.7018–4 by— (3) For production of tantalum metal a domestic nonavailability ■ and alloys, this restriction includes the determination that applies to only one a. Revising paragraph (a)(2); and ■ b. In paragraph (a)(3)(ii) removing reduction of tantalum chemicals such as contract. The supporting documentation ‘‘individual waivers’’ and adding oxides, chlorides, or potassium salts, to for the determination shall include an ‘‘individual nonavilability metal powder and all subsequent phases analysis and written documentation by determinations’’ in its place. of production of tantalum metal and the requiring activity, with specificity, The revision reads as follows: alloys, such as consolidation of metal why alternatives that would not require powders. a domestic nonavailability 225.7018–4 Nonavailability determination. * * * * * determination are unacceptable. (a) * * * (d) Subcontracts. *** * * * * * (2) The supporting documentation for [FR Doc. 2020–21121 Filed 9–28–20; 8:45 am] ■ the determination shall include an 5. Revise the section 225.7018 BILLING CODE 5001–06–P heading to read as follows: analysis and written certification by the requiring activity that describes, with 225.7018 Restriction on acquisition of specificity, why alternatives that would DEPARTMENT OF DEFENSE certain magnets, tantalum, and tungsten. not require a nonavailability * * * * * determination are unacceptable. The 48 CFR Parts 203, 205, 211, 212, 215, ■ 6. In section 225.7018–1 revise the template for an individual 217, 219, 225, 228, 236, 237, 246, 250, definition of ‘‘Covered material’’ to read nonavailability determination is and 252 as follows: available at PGI 225.7018–4(a)(2). [Docket DARS–2020–0002] * * * * * 225.7018–1 Definitions. RIN 0750–AK76 * * * * * 225.7018–5 [Amended] Covered material means— ■ 10. Amend section 225.7018–5 by Defense Federal Acquisition (1) Samarium-cobalt magnets; removing ‘‘Magnets and Tungsten’’ and Regulation Supplement: Inflation (2) Neodymium-iron-boron magnets; adding ‘‘Magnets, Tantalum, and Adjustment of Acquisition-Related (3) Tantalum metal and alloys; Tungsten’’ in its place. Thresholds (DFARS Case 2019–D036) (4) Tungsten metal powder; and AGENCY: Defense Acquisition (5) Tungsten heavy alloy or any PART 252—SOLICITATION PROVISIONS AND CONTRACT Regulations System, Department of finished or semi-finished component Defense (DoD). containing tungsten heavy alloy. CLAUSES ACTION: Final rule. * * * * * ■ 11. Amend section 252.225–7052 by— ■ 7. Amend 225.7018–2 by— ■ a. Revising the section heading, clause SUMMARY: DoD is issuing a final rule ■ a. Redesignating paragraph (c) as title, and clause date; amending the Defense Federal paragraph (d); and ■ b. In paragraph (a) revising the Acquisition Regulation Supplement ■ b. Adding a new paragraph (c). definition of ‘‘Covered material’’; (DFARS) to implement the inflation The addition reads as follows: ■ c. Redesignating paragraph (b)(3) as adjustment of acquisition-related dollar paragraph (b)(4); thresholds. A statute requires an 225.7018–2 Restriction. ■ d. Adding new paragraph (b)(3); adjustment every five years of * * * * * ■ e. In paragraphs (c)(1)(i)(B) and acquisition-related thresholds for (c) For production of tantalum metal (c)(2)(i) removing ‘‘tungsten heavy inflation using the Consumer Price and alloys, this restriction includes the alloy’’ and adding ‘‘tantalum metal, Index for all urban consumers, except reduction of tantalum chemicals such as tantalum alloy, or tungsten heavy alloy’’ for the Construction Wage Rate oxides, chlorides, or potassium salts, to in both places; and Requirements statute (Davis-Bacon Act), metal powder and all subsequent phases ■ f. Adding a paragraph heading to Service Contract Labor Standards of production of tantalum metal and paragraph (d). statute, and trade agreements

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thresholds. DoD also used the same III. Applicability to Contracts at or acquisition-related thresholds for methodology to adjust some Below the Simplified Acquisition inflation. nonstatutory DFARS acquisition-related Threshold and for Commercial Items, This rule will likely affect to some thresholds. Including Commercially Available Off- extent all small business concerns that DATES: Effective October 1, 2020. the-Shelf Items submit offers or are awarded contracts by the Department of Defense (DoD). FOR FURTHER INFORMATION CONTACT: Ms. This rule does not create any new However, the threshold changes in this Kimberly R. Ziegler, Telephone 571– provisions or clauses, nor does it change rule are not expected to have any 372–6095. the applicability of any existing significant economic impact on small SUPPLEMENTARY INFORMATION: provisions or clauses included in solicitations and contracts valued at or business concerns because they are I. Background below the simplified acquisition intended to maintain the status quo by adjusting for changes in the value of the This rule amends multiple DFARS threshold, or for commercial items, including COTS items. dollar. Data generated from the Federal parts to further implement 41 U.S.C. Procurement Data System (FPDS) for 1908. Section 1908 requires an IV. Executive Orders 12866 and 13563 fiscal years 2017 through 2019, adjustment every five years (on October Executive Orders (E.O.s) 12866 and indicates that the DoD has awarded an 1 of each year evenly divisible by five) 13563 direct agencies to assess all costs average of 1,494,202 contracts to 56,851 of statutory acquisition-related and benefits of available regulatory unique small entities during the three thresholds for inflation, using the alternatives and, if regulation is year period. It is assumed that all 56,851 Consumer Price Index (CPI) for all urban necessary, to select regulatory unique small entities may be affected by consumers, except for the Construction approaches that maximize net benefits this rule, however, the impact will most Wage Rate Requirements statute (Davis- (including potential economic, likely be beneficial, by preventing Bacon Act), Service Contract Labor environmental, public health and safety burdensome requirements from Standards statute, and trade agreements effects, distributive impacts, and applying to more and more acquisitions, thresholds (see FAR 1.109). As a matter equity). E.O. 13563 emphasizes the as the dollar loses value. of policy, DoD also uses the same importance of quantifying both costs The rule does not impose any new methodology to adjust some and benefits, of reducing costs, of reporting, recordkeeping, or compliance nonstatutory DFARS acquisition-related harmonizing rules, and of promoting requirements. Changes in thresholds for thresholds. flexibility. This is not a significant approved information collection DoD published a proposed rule in the regulatory action and, therefore, was not requirements are intended to maintain Federal Register at 85 FR 19716 on subject to review under section 6(b) of the status quo and prevent those April 8, 2020. The preamble to the E.O. 12866, Regulatory Planning and requirements from increasing over time. proposed rule contained detailed Review, dated September 30, 1993. This There are no practical alternatives explanation of— that will accomplish the objectives of • rule is not a major rule under 5 U.S.C. What an acquisition-related 804. the statute. threshold is; • What acquisition-related thresholds V. Executive Order 13771 VII. Paperwork Reduction Act are not subject to escalation adjustment The rule is not subject to E.O. 13771, The Paperwork Reduction Act does under this case; and because this rule is not a significant apply. The changes to the DFARS do not • How DoD analyzes statutory and regulatory action under E.O. 12866. impose new information collection non-statutory acquisition-related requirements that require the approval thresholds. VI. Regulatory Flexibility Act. of the Office of Management and Budget No respondents submitted public DoD has prepared a Final Regulatory (OMB) under 44 U.S.C. 3501, et seq. By comments in response to the proposed Flexibility Analysis (FRFA) consistent adjusting the thresholds for inflation, rule. with the Regulatory Flexibility Act, 5 the status quo for the current U.S.C. 601, et seq. The FRFA is information collection requirements are II. Discussion and Analysis summarized as follows: maintained under OMB clearance Although there were no public This rule amends the Defense Federal numbers 0704–0229, DFARS Part 225, comments, two corrections were made Acquisition Regulation Supplement to Foreign Acquisition and related clauses to the final rule to: (1) Add the implement 41 U.S.C. 1908 and other and 0704–0286, DFARS Part 205, threshold at DFARS 215.403–1(c)(4)(B) acquisition-related dollar thresholds Publicizing Contract Actions and and 225.7201; and (2) update the that are based on policy rather than Provision of Information to Cooperative threshold pointer, an address, and web statute in order to adjust for the Agreement Holders. page citation at DFARS 252.225–7004. changing value of the dollar. 41 U.S.C. List of Subjects in 48 CFR Parts 203, Although the actual CPI of 258.115 for 1908 requires adjustment every five 205, 207, 211, 212, 215, 217, 219, 225, March 2020 was lower than the years of statutory acquisition-related 228, 232, 234, 236, 237, 250, and 252 projected CPI of 258.606 for March 2020 dollar thresholds, except for used for the proposed rule, the Construction Wage Rate Requirements Government Procurement. difference was insignificant and did not statute (Davis-Bacon Act), Service Jennifer D. Johnson, Contract Labor Standards statute, and result in revisions to any proposed Regulatory Control Officer, Defense threshold increases. The final rule is trade agreements thresholds. While Acquisition Regulations System. based on the actual CPI of 258.115 for reviewing all statutory acquisition- March 2020. The CPI as of the end of related thresholds, this case presented Therefore, 48 CFR parts 203, 205, 211, March 2020, 6 months before the an opportunity to also review all 212, 215, 217, 219, 225, 228, 236, 237, effective date of the rule, is used as the nonstatutory acquisition-related 246, 250, and 252 are amended as cutoff in order to allow time for thresholds in the DFARS that are based follows: approval and publication of the final on policy. The objective of the rule is to ■ 1. The authority citation for 48 CFR rule. maintain the status quo, by adjusting parts 203, 205, 211, 212, 215, 217, 219,

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225, 228, 236, 237, 246, 250, and 252 217.172 [Amended] PART 237—SERVICE CONTRACTING continues to read as follows: ■ 10. Amend section 217.172 in 237.170–2 [Amended] Authority: 41 U.S.C. 1303 and 48 CFR paragraphs (c), (d), and (f)(1) and (2) by ■ chapter 1. removing ‘‘$678.5 million’’ and adding 16. Amend section 237.170–2 in paragraphs (a)(1) and (2) by removing PART 203—IMPROPER BUSINESS ‘‘$750 million’’ in its place wherever it appears. ‘‘$93 million’’ and adding ‘‘$100 PRACTICES AND PERSONAL million’’ in its place in both places. CONFLICTS OF INTEREST PART 219—SMALL BUSINESS PART 246—QUALITY ASSURANCE 203.1004 [Amended] PROGRAMS ■ 2. Amend section 203.1004 in 219.502–2 [Amended] ■ 17. Amend section 246.402 paragraph (b)(2)(ii) by removing ‘‘$5.5 introductory text by removing ■ million’’ and adding ‘‘$6 million’’ in its 11. Amend section 219.502–2 in ‘‘$300,000’’ and adding ‘‘$350,000’’ in place. paragraph (1) by removing ‘‘$2.5 its place. million’’ and adding ‘‘$3 million’’ in its PART 205—PUBLICIZING CONTRACT place. PART 250—EXTRAORDINARY ACTIONS CONTRACTUAL ACTIONS AND THE PART 225—FOREIGN ACQUISITION SAFETY ACT 205.303 [Amended] ■ 250.102–1 [Amended] ■ 3. Amend section 205.303 by 12. Revise section 225.7201 to read as removing ‘‘$7 million’’ wherever it follows: ■ 18. Amend section 250.102–1 in appears and adding ‘‘$7.5 million’’ in its 225.7201 Policy. paragraph (b) by removing ‘‘$70,000’’ place. and adding ‘‘$75,000’’ in its place. 10 U.S.C. 2410g requires offerors and 205.470 [Amended] contractors to notify DoD of any 250.102–1–70 [Amended] ■ 4. Amend section 205.470 by intention to perform any part of a DoD ■ 19. Amend section 250.102–1–70 in removing ‘‘$1,000,000’’ and adding contract outside the United States and paragraph (b)(1) by removing ‘‘$70,000’’ ‘‘$1.5 million’’ in its place. Canada that— and adding ‘‘$75,000’’ in its place. (a) Exceeds $750,000 in value; and PART 252—SOLICITATION PART 211—DESCRIBING AGENCY (b) Could be performed inside the PROVISIONS AND CONTRACT NEEDS United States or Canada. CLAUSES 211.503 [Amended] 225.7204 [Amended] ■ 252.225–7003 [Amended] 5. Amend section 211.503 in ■ paragraph (b) by removing ‘‘$700,000’’ 12. Amend section 225.7204 in ■ 20. Amend section 252.225–7003 by— and adding ‘‘$750,000’’ in its place in paragraphs (a) and (b) by removing ■ a. Removing the clause date ‘‘(OCT two places. ‘‘$13.5 million’’ and adding ‘‘$15 2015)’’ and adding ‘‘(OCT 2020)’’ in its million’’ in its place in both places. place; and PART 212—ACQUISITION OF 225.7703–2 [Amended] ■ b. In paragraph (b)(1), removing COMMERCIAL ITEMS ‘‘$13.5 million’’ and adding ‘‘$15 ■ 13. Amend section 225.7703–2— million’’ in its place; and 212.271 [Amended] ■ a. In paragraph (b)(2)(i) by removing ■ c. In paragraph (b)(2)(i) removing ■ 6. Amend section 212.271 by ‘‘$93 million’’ and adding ‘‘$100 ‘‘$700,000’’ and adding ‘‘$750,000’’ in removing ‘‘$40,000’’ and adding million’’ in its place; and its place. ‘‘$45,000’’ in its place. ■ b. In paragraph (b)(2)(ii) introductory 252.225–7004 [Amended] text by removing ‘‘Director, Defense PART 215—CONTRACTING BY ■ 21. Amend section 252.225–7004 by— NEGOTIATION Procurement and Acquisition Policy’’ and adding ‘‘Principal Director, Defense ■ a. Removing the clause date ‘‘(MAY 215.403–1 [Amended] Pricing and Contracting’’ in its place 2019)’’ and adding ‘‘(OCT 2020)’’ in its place; ■ 7. Amend section 215.403–1 in and by removing ‘‘$93 million’’ and adding ‘‘$100 million’’ in its place. ■ b. In paragraph (b)(1), removing paragraph (c)(4)(B) by removing ‘‘$19.5 ‘‘225.870–4(c)(2)(i)(A)(1)’’ and adding million’’ and adding ‘‘$20 million’’ in PART 228—BONDS AND INSURANCE 225.7201(a)’’ in its place; its place. ■ c. In paragraph (c)(5) removing 228.102–1 [Amended] PART 217—SPECIAL CONTRACTING ‘‘Deputy Director of Defense METHODS ■ 14. Amend section 228.102–1 in the Procurement and Acquisition Policy introductory text and paragraph (1) by (Contract Policy and International 217.170 [Amended] removing ‘‘$35,000’’ and adding Contracting), OUSD(AT&L) DPAP/ ■ 8. Amend section 217.170 in ‘‘$40,000’’ in its place in both places. CPIC’’ and adding ‘‘Principal Director, paragraphs (d)(1)(iv) and (d)(5) Defense Pricing and Contracting introductory text by removing ‘‘$135.5 PART 236—CONSTRUCTION AND (Contract Policy), OUSD(A&S) DPC/CP’’ million’’ and adding ‘‘$150 million’’ in ARCHITECT-ENGINEER CONTRACTS in its place; and ■ its place in both places. d. In paragraph (d)(2), removing 236.303–1 [Amended] ‘‘http://www.dtic.mil/whs/directives/ 217.171 [Amended] ■ 15. Amend section 236.303–1 in infomgt/forms/formsprogram.htm’’ and ■ 9. Amend section 217.171 in paragraph (a)(4)(i) introductory text and adding ‘‘https://www.esd.whs.mil/ paragraph (d) by removing ‘‘$678.5 (a)(4)(ii) by removing ‘‘$4 million’’ and Directives/forms/’’ in its place. million’’ and adding ‘‘$750 million’’ in adding ‘‘$4.5 million’’ in its place in [FR Doc. 2020–21122 Filed 9–28–20; 8:45 am] its place. both places. BILLING CODE 5001–06–P

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