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Federal Register / Vol. 86, No. 186 / Wednesday, September 29, 2021 / Proposed Rules
lotter on DSK11XQN23PROD with PROPOSALS1

below the SAT, currently defined at FAR 2.201 as $250,000, are excepted from the domestic source restrictions of the Berry Amendment.
This rule proposes to implement section 817 of the NDAA for FY 2021 by reducing the exception threshold from the SAT to $150,000. DoD expects the reduction required by section 817 to result in an increase in the number of procurements of domestically sourced end products that are subject to 10
U.S.C. 2533a.
DoD estimates that approximately 970
procurements valued between $150,000
and the SAT of $250,000 are awarded to an estimated 400 entities annually, based upon data obtained from the Federal Procurement Data System FPDS for fiscal years 2018 through 2020. Until the final rule for FAR case 2018004 85 FR 40064, which increased the SAT from $150,000 to $250,000, became effective on August 31, 2020, these entities were required to comply with domestic source restrictions of the Berry Amendment, including the $150,000 exception threshold. It has only been since August 31, 2020, that these entities have had the benefit of the higher exception threshold i.e., the SAT of $250,000.
DoD assumes that some of these entities may have adjusted their procurement sources in the short time since the threshold was raised, while some may have continued with their established supply chains. There is currently no data source that would identify the entities that made adjustments and would have to make additional adjustments to return to their previous practices.
V. Executive Orders 12866 and 13563
Executive Orders E.O.s 12866 and 13563 direct agencies to assess all costs and benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits including potential economic, environmental, public health and safety effects, distributive impacts, and equity. E.O. 13563 emphasizes the importance of quantifying both costs and benefits, of reducing costs, of harmonizing rules, and of promoting flexibility. This is not a significant regulatory action and, therefore, was not subject to review under section 6b of E.O. 12866, Regulatory Planning and Review, dated September 30, 1993.
VI. Congressional Review Act As required by the Congressional Review Act 5 U.S.C. 801808 before an interim or final rule takes effect, DoD
will submit a copy of the interim or
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final rule with the form, Submission of Federal Rules Under the Congressional Review Act, to the U.S. Senate, the U.S.
House of Representatives, and to the Comptroller General of the United States. A major rule under the Congressional Review Act cannot take effect until 60 days after it is published in the Federal Register. This rule is not anticipated to be a major rule under 5
U.S.C. 804.
VII. Regulatory Flexibility Act DoD does not expect this proposed rule 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 the types of end products or components subject to 10
U.S.C. 2533a are generally at a dollar value below the simplified acquisition threshold SAT and normally set aside for small entities. However, an initial regulatory flexibility analysis has been performed and is summarized as follows:
This rule proposes to amend the DFARS to implement section 817 of the National Defense Authorization Act NDAA for Fiscal Year FY 2021 Pub.
L. 116283. Section 817 reduces the dollar threshold exception at DFARS
225.7002, which implements 10 U.S.C.
2533a commonly known as the Berry Amendment, from the SAT to an amount not to exceed $150,000.
The objective of the rule is to increase the number of acquisitions subject to the domestic source restrictions at DFARS
225.7002 by reducing the number of procurements subject to the exception at DFARS 225.70022a. The legal basis of the rule is section 817 of the NDAA for FY 2021.
This rule is expected to affect small entities that participate in procurements subject to the domestic source restrictions at DFARS 225.7002.
However, DoD does not expect a significant change in the number of actions awarded to small entities resulting from the reduction in the threshold from the current SAT of $250,000 to $150,000. To assess the impact of this reduction, data was obtained from the Federal Procurement Data System FPDS. According to FPDS
for fiscal years 2018 through 2020, DoD
awarded an average of approximately 970 applicable actions valued above $150,000 but below the SAT. Of those actions, an average of 200 contract actions were awarded to approximately 72 unique small entities.
The rule does not impose any new reporting, recordkeeping, or compliance requirements.

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The rule does not duplicate, overlap, or conflict with any other Federal rules.
There are no practical alternatives that will accomplish the objectives of the statute.
DoD invites comments from small business concerns and other interested parties on the expected impact of this rule on small entities.
DoD will also consider comments from small entities concerning the existing regulations in subparts affected by the rule in accordance with 5 U.S.C.
610. Interested parties must submit such comments separately and should cite 5
U.S.C. 610 DFARS Case 2021D010, in correspondence.
VIII. Paperwork Reduction Act This rule does not contain any information collection requirements that require the approval of the Office of Management and Budget OMB under the Paperwork Reduction Act 44 U.S.C.
chapter 35.
List of Subjects in 48 CFR Parts 225 and 252
Government procurement.
Jennifer D. Johnson, Editor/Publisher, Defense Acquisition Regulations System.

Therefore, 48 CFR parts 225 and 252
are proposed to be amended as follows:
1. The authority citation for 48 CFR
Parts 225 and 252 continues to read as follows:
Authority: 41 U.S.C. 1303 and 48 CFR
Chapter 1.

PART 225FOREIGN ACQUISITION
225.70022

Amended
2. Amend section 225.70022 by a. In paragraph a, removing at or below the simplified acquisition threshold and adding not exceeding $150,000 in its place; and b. In paragraph j2, removing simplified acquisition threshold and adding threshold at 225.70022a in its place.

225.70023

Amended
3. Amend section 225.70023, in paragraphs b and c, by removing simplified acquisition threshold and adding threshold at 225.70022a in both places.

PART 252SOLICITATION
PROVISIONS AND CONTRACT
CLAUSES
4. Amend section 252.2257012 by a. Revising the date of the clause;
b. In paragraph a, in the definition of Structural component of a tent, redesignating paragraphs i and ii as

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