Acquisition regulations: Inflation adjustment of acquisition-related thresholds,
[Federal Register: January 23, 2006 (Volume 71, Number 14)]
[Proposed Rules]
[Page 3446-3448]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr23ja06-16]
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System
48 CFR Parts 201, 205, 211, 216, 217, 219, 223, 225, 228, 232, 236, 237, and 252
[DFARS Case 2004-D022]
RIN 0750-AF16
Defense Federal Acquisition Regulation Supplement; Inflation Adjustment of Acquisition-Related Thresholds
AGENCY: Defense Acquisition Regulations System, Department of Defense (DoD).
ACTION: Proposed rule with request for comments.
SUMMARY: DoD is proposing to amend the Defense Federal Acquisition Regulation Supplement (DFARS) to adjust acquisition-related thresholds for inflation. Section 807 of the National Defense Authorization Act for Fiscal Year 2005 requires periodic adjustment of statutory acquisition-related dollar thresholds for inflation, except those established by the Davis-Bacon Act, the Service Contract Act, or trade agreements. This proposed rule also amends other acquisition-related thresholds that are based on policy rather than statute.
DATES: Comments on the proposed rule should be submitted in writing to the address shown below on or before March 24, 2006, to be considered in the formation of the final rule.
ADDRESSES: You may submit comments, identified by DFARS Case 2004-D022, using any of the following methods:
Federal eRulemaking Portal: http://www.regulations.gov.
Follow the instructions for submitting comments.
E-mail: dfars@osd.mil. Include DFARS Case 2004-D022 in the subject line of the message.
Fax: (703) 602-0350.
Mail: Defense Acquisition Regulations System, Attn: Ms. Amy Williams, OUSD(AT&L)DPAP(DARS), IMD 3C132, 3062 Defense Pentagon, Washington, DC 20301-3062.
Hand Delivery/Courier: Defense Acquisition Regulations System, Crystal Square 4, Suite 200A, 241 18th Street, Arlington, VA 22202-3402.
Comments received will be posted without change to http://www.regulations.gov , including any personal information provided.
FOR FURTHER INFORMATION CONTACT: Ms. Amy Williams, (703) 602-0328.
SUPPLEMENTARY INFORMATION:
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Background
This proposed rule implements Section 807 of the National Defense Authorization Act for Fiscal Year 2005 (Pub. L. 108-375). Section 807 provides for adjustment of statutory acquisition-related dollar thresholds every 5 years, except for those established by the Davis- Bacon Act, the Service Contract Act, or trade agreements. This case presented an opportunity to review all acquisition-related dollar thresholds, including those that are non-statutory. The proposed rule published at 70 FR 73415 on December 12, 2005 (FAR Case 2004-033), contained comparable changes to acquisition-related dollar thresholds in the FAR.
Definition of Acquisition-Related Threshold
The statute defines an acquisition-related threshold as a dollar threshold that is specified in law as a factor in defining the scope of the applicability of a policy, procedure, requirement, or restriction provided in that law to the procurement of property or services by an executive agency, as determined by the FAR Council. The statute also impacts acquisition-related thresholds in the DFARS, since the DFARS is part of the FAR System. Acquisition-related thresholds are generally tied to the value of a contract, subcontract, or modification. Examples of thresholds that are not viewed as ``acquisition-related'' are thresholds relating to claims, penalties, withholding, payments, required levels of insurance, small business size standards, and liquidated damages.
Acquisition-Related Thresholds Not Subject to Escalation Adjustment Under This Proposed Rule
The statute does not permit escalation of acquisition-related thresholds established by the Davis Bacon Act, the Service Contract Act, or trade agreements. Additionally, the statute does not authorize the escalation of thresholds set by Executive order or by the implementing agency, unless the Executive order or agency regulations are first amended.
Analysis of Statutory Acquisition-Related Thresholds
A matrix showing the thresholds reviewed in preparation of this proposed rule is available at http://www.acq.osd.mil/dpap/dars/dfars/changenotice/index.htm#2004-D022. The statute requires adjustment of
acquisition-related thresholds for inflation using the Consumer Price Index (CPI) for all-urban consumers. Acquisition-related thresholds in
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statutes that were in effect on October 1, 2000, are subject to 5 years of inflation. For purposes of this proposed rule, the matrix includes calculation of escalation based on the CPI from December 1999 to December 2004 (the most recent available data when the proposed rule was in preparation), which calculates as 13.07 percent. Acquisition- related thresholds in statutes that took effect after October 1, 2000, are escalated proportionately for the number of months between the effective date of the statute and October 1, 2005. The final rule will be adjusted to the actual CPI data for October 2000 through October 2005.
After the escalation factor is applied to the acquisition-related threshold, the threshold must be rounded as follows:
