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Federal Register / Vol. 86, No. 110 / Thursday, June 10, 2021 / Rules and Regulations DoD, GSA, and NASA are issuing a final rule amending the Federal Acquisition Regulation FAR to implement a section of the FAA
Reauthorization Act of 2018, which requires, when acquiring equipment, a case-by-case analysis of cost and other factors associated with certain methods of acquisition, including purchase, short-term rental or lease, long-term rental or lease, interagency acquisition, and, if applicable, acquisition agreements with a State or local government.

SUMMARY:

DATES:

Effective: July 12, 2021.

Mr.
Michael O. Jackson, Procurement Analyst, at 2022084949 or Michaelo.jackson@gsa.gov for clarification of content. For information pertaining to status or publication schedules, contact the Regulatory Secretariat Division at 2025014755.
Please cite FAC 202106 and FAR Case 2019001.
SUPPLEMENTARY INFORMATION:
FOR FURTHER INFORMATION CONTACT:

I. Background DoD, GSA, and NASA published a proposed rule at 85 FR 52081, on August 24, 2020, to implement section 555 of the FAA Reauthorization Act of 2018 Pub. L. 115254 FAA stands for Federal Aviation Administration, which:
Requires an agency to acquire equipment using the method of acquisition that is most advantageous to the Government based on a case-by-case analysis of comparative costs and other factors to include the factors in FAR
section 7.401;
Identifies methods of acquisition that must be considered, at a minimum, in the analysis; and Requires the FAR to implement the requirements of the section and identify the factors agencies should or shall consider to perform the case-by-case analysis.
Five respondents submitted public comments in response to the proposed rule.

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II. Discussion and Analysis The Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council the Councils reviewed the public comments in the development of the final rule. No changes were made to the final rule as a result of public comments. To maintain consistency throughout the rule text, a minor change was made to the final rule at FAR 7.403a to ensure the terms rent and lease are used in the same order throughout the rule. A
minor edit was also made to FAR

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Several respondents expressed support for the rule and the Councils acknowledge this support for the rule.
The remaining respondents provided comments that were outside the scope of this rule.
III. Applicability to Contracts at or Below the Simplified Acquisition Threshold SAT and for Commercial Items, Including Commercially Available Off-the-Shelf COTS Items This final rule does not create any new provisions or clauses, nor does it change the applicability or burden of any existing provisions or clauses included in solicitations and contracts valued at or below the SAT or for commercial items, including COTS
items.
IV. 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.
V. Congressional Review Act As required by the Congressional Review Act 5 U.S.C. 801808 before an interim or final rule takes effect, DoD, GSA, and NASA will send the rule and the Submission of Federal Rules Under the Congressional Review Act form to each House of the Congress and to the Comptroller General of the United States. A major rule cannot take effect until 60 days after it is published in the Federal Register. The Office of Information and Regulatory Affairs OIRA in the Office of Management and Budget has determined that this is not a major rule under 5 U.S.C. 804.
VI. Regulatory Flexibility Act
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This rule is necessary to implement section 555 of the FAA Reauthorization Act of 2018
Pub. L. 115254. The objective of the rule is to ensure agencies acquire equipment using the method of acquisition that is most advantageous to the Government based on a case-by-case analysis of comparative costs and other factors.
There were no significant issues raised in response to the initial regulatory flexibility analysis.
DoD, GSA, and NASA do not expect this rule to have a significant economic impact on a substantial number of small entities; most of the impact will be on the Government. The rule primarily affects internal Government requirements determination decisions, acquisition strategy decisions, and contract file documentation requirements. The Government does not collect data on the total number of solicitations issued on an annual basis that are subject to the analysis of FAR
subpart 7.4. However, the Federal Procurement Data System FPDS collects information on the product service code PSC assigned to a contract based on the predominant supply or service being acquired. FPDS data for fiscal years 2016
2018, on PSCs for approximately 100 types of equipment and 80 types of equipment rental or lease services, indicates that the Federal Government awards an average of 125,940 new contracts and orders annually, of which approximately 54,845 44 percent were awarded to approximately 6,940 unique small businesses.
This rule does not impose any reporting, recordkeeping, or other compliance requirements.
There are no alternatives that are consistent with the objectives of the statute.

Interested parties may obtain a copy of the FRFA from the Regulatory Secretariat Division. The Regulatory Secretariat Division has submitted a copy of the FRFA to the Chief Counsel for Advocacy of the Small Business Administration.
VII. Paperwork Reduction Act The rule does not contain any information collection requirements that require the approval of the Office of Management and Budget under the Paperwork Reduction Act 44 U.S.C.
35013521.
List of Subjects in 48 CFR Part 7
Government procurement.
William F. Clark, Director, Office of Government-wide Acquisition Policy, Office of Acquisition Policy, Office of Government-wide Policy.

Therefore, DoD, GSA, and NASA
amend 48 CFR part 7 as set forth below:
PART 7ACQUISITION PLANNING

DoD, GSA, and NASA have prepared a Final Regulatory Flexibility Analysis FRFA consistent with the Regulatory Flexibility Act, 5 U.S.C. 601612. The FRFA is summarized as follows:

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1. The authority citation for 48 CFR
part 7 continues to read as follows:

Authority: 40 U.S.C. 121c; 10 U.S.C.
chapter 137; and 51 U.S.C. 20113.

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