Acquisition regulations: Anticompetitive teaming,

[Federal Register: November 18, 1999 (Volume 64, Number 222)]

[Proposed Rules]

[Page 63002-63003]

From the Federal Register Online via GPO Access [wais.access.gpo.gov]

[DOCID:fr18no99-25]

DEPARTMENT OF DEFENSE

48 CFR Part 203

[DFARS Case 99-D028]

Defense Federal Acquisition Regulation Supplement; Anticompetitive Teaming

AGENCY: Department of Defense (DoD).

ACTION: Proposed rule with request for comments.

SUMMARY: The Director of Defense Procurement is proposing to amend the Defense Federal Acquisition Regulation Supplement (DFARS) to add policy addressing exclusive teaming arrangements. The proposed amendments specify that certain exclusive teaming arrangements may evidence violations of the antitrust laws.

DATES: Comments on the proposed rule should be submitted in writing to the address specified below on or before January 18, 2000, to be considered in the formation of the final rule.

ADDRESSES: Interested parties should submit written comments on the proposed rule to: Defense Acquisition Regulations Council, Attn: Ms. Melissa Rider, PDUSD(AT&L)DP(DAR), IMD 3D139, 3062 Defense Pentagon, Washington, DC 20301-3062. Telefax (703) 602-0350. Please cite DFARS Case 99-D028.

E-mail comments submitted via the Internet should be addressed to: dfars@acq.osd.mil

Please cite DFARS Case 99-D028 in all correspondence related to this proposed rule. E-mail correspondence should cite DFARS Case 99- D028 in the subject line.

FOR FURTHER INFORMATION CONTACT: Ms. Melissa Rider, (703) 602-4245. Please cite DFARS Case 99-D028.

SUPPLEMENTARY INFORMATION:

[[Page 63003]]

1. Background

   This proposed rule amends DFARS Subpart 203.3 to add a definition of ``exclusive teaming arrangement'' and to specify that certain exclusive teaming arrangements may evidence violations of the antitrust laws. Teaming arrangements that inhibit competition limit the Government's ability to obtain the best products at reasonable prices.

   This rule was not subject to Office of Management and Budget review under Executive Order 12866, dated September 30, 1993.

2. Regulatory Flexibility Act

   The proposed rule is not expected to 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., because DoD does not expect frequent use of anticompetitive teaming arrangements by contractors or subcontractors. Therefore, an initial regulatory flexibility analysis has not been performed. Comments are invited from small businesses and other interested parties. Comments from small entities concerning the affected DFARS subpart also will be considered in accordance with 5 U.S.C. 610. Such comments should be submitted separately and should cite DFARS Case 99-D028 in correspondence.

3. 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 203

   Government procurement. Michele P. Peterson, Executive Editor, Defense Acquisition Regulations Council.

   Therefore, 48 CFR Part 203 is proposed to be amended as follows:

   1. The authority citation for 48 CFR Part 203 continues to read as follows:

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

      PART 203--IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF INTEREST

   2. Sections 203.302 and 203.303 are added to read as follows:

      203.302 Definitions.

      ``Exclusive teaming arrangement'' means that two or more companies agree, in writing, through understandings, or by any other means, to team together on a procurement and further agree not to team with any other competitors on that procurement.

      203.303 Reporting suspected antitrust violations.

      (c) Practices or events that may evidence violations of the antitrust laws also include exclusive teaming arrangements, if one or a combination of the companies participating on the team is the sole provider of a product or service that is essential for contract performance, and efforts to eliminate the arrangements are not successful.

      [FR Doc. 99-29982Filed11-17-99; 8:45 am]

      BILLING CODE 5000-04-M