Commercial Activities Program Procedures

DEPARTMENT OF DEFENSE

Office of the Secretary

32 CFR Part 169a

[DoD Instruction 4100.33]

Commercial Activities Program Procedures

AGENCY: Office of the Secretary of Defense, DoD.

ACTION: Final rule.

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SUMMARY: This part removes the requirement to place every DoD employee

in a comparable position prior to converting a function with 10 full

time equivalents or less to contract, sets maximum study times for cost

comparisons, removes the requirement to make congressional reports only

when Congress is in session, and makes minor administrative

corrections. it also establishes procedures and criteria for use by DoD

Components to determine whether DoD commercial activities should be

performed by DoD personnel in-house or by contract with commercial

sources.

EFFECTIVE DATE: June 12, 1995.

FOR FURTHER INFORMATION CONTACT:

Earl DeHart, Program Manager, 400 Army/Navy Drive, Suite 206,

Arlington, Virginia 22202-2884.

SUPPLEMENTARY INFORMATION: On January 4, 1995, the Department of

Defense published a proposed amendment to 32 CFR part 169a in the

Federal Register (60 FR 417) bringing DoD guidance on commercial

activities up-to-date. No comments were received from the private

sector. Some changes were recommended by DoD Components and most were

incorporated. It has been certified that this final rule is not a

significant regulatory action. The rule does not:

(1) Have an annual effect on the economy of $100 million or more

adversely affect in a material way the economy, a sector of the

economy, productivity, competition, jobs, the environment, public

health or safety, or State, local, or tribal governments or

communities; planned by another agency;

(2) Create a serious inconsistency or otherwise interfere with an

action taken or

(3) Materially alter the budgetary impact of entitlements grants,

user fees, or loan programs or the rights and obligations of recipients

thereof; or

(4) Raise novel legal or policy issues arising out of legal

mandates, the President's priorities, or the principles set forth in

Executive Order 12866. Further, it has been certified that this rule is

not subject to the Regulatory Flexibility Act (5 U.S.C. 601) because

the Services and Department agencies administering the rule will show a

reduction in administrative costs and other burdens resulting from the

simplification and clarification of direct conversion policies when

this proposed rule is issued as a final rule. Finally, it has been

certified that this proposed rule does not impose any additional

reporting or record keeping requirements prohibited under the Paperwork

Reduction Act of 1980.

List of Subjects in 32 CFR Part 169a

Armed forces, Government procurement.

Accordingly, 32 CFR Part 169a is amended as follows:

PART 169A--COMMERCIAL ACTIVITIES PROGRAM PROCEDURES

1. The authority citation for Part 169a continues to read as

follows:

Authority: 5 U.S.C. 301 and 552.

2. Subpart B--Procedures is amended by adding a Sec. 169a.19 to

read as follows:

Subpart B--Procedures--[Amended]

Sec. 169a.19 Study limits.

No DoD funds shall be available to perform any cost study pursuant

to the provisions of OMB Circular A-76 if the study being performed

exceeds a period of 24 months after initiation of such study with

respect to a single function activity or 48 months after initiation of

such study for a multi-function activity.

3. Section 169a.21 is amended in paragraph (a) by removing ``DD-P&L

[[Page 67329]]

1540'' and adding in its place ``DD-A&T(A) 1540'', paragraph (b) by

removing ``DD-P&L 1542'' and adding in its place ``DD-A&T(Q) 1542'',

paragraph (c)(3) and the first sentence in paragraph (c)(5) by removing

``when in session'', paragraph (c)(3) by removing ``ASD(P&L)'' adding

in its place ``ASD(ES)''; by revising paragraph (c) introductory text;

and by adding a sentence at the end of paragraph (c)(2) to read as

follows:

Sec. 169a.21 Reporting requirements.

* * * * *

(c) Congressional Data Reports on CA (Report Control Symbol DD-

A&T(A&AR) 1949) and Reports on savings on Costs from Increased Use of

DoD Civilian Personnel (Report Control Symbol DD-A&T(AR) 1950). To

insure consistent application of the requirements stated in 10 U.S.C.

2461 and 2463, the following guidance is provided:

(2) * * * 10 U.S.C. 2463 applies to conversions from contract to

in-house involving 50 or more contractor employees.

* * * * *

4. Appendix B to Part 169a is amended by revising sections A.1. and

A.2., by removing section A.3. and redesignating sections A.4. and A.5.

as A.3. and A.4., respectively, and in newly redesignated A.4. is by

removing the word ``or'' the second time it appears and adding in its

place ``of.''

Appendix B to Part 169a--[Amended]

Appendix B to Part 169a--Commercial Activities Inventory Report and

Five-Year Review Schedule

* * * * *

A. * * *

1. Forward your inventory report before January 1 to the Director,

Installations Management, 400 Army Navy Drive, Room 206, Arlington, VA

22202-2884. Use Report Control Symbol ``DD-A&T(A) 1540'' as your

authority to collect this data.

2. Transmit by use of floppy diskette. Data files must be in

American Standard Code Information Interchange text file format on a

MicroSoft-Disk Operating System formatted 3.5 inch floppy diskette.

Provide submissions in the Defense Utility Energy Reporting System

format as specified below.

* * * * *

5. Appendix C to Part 169a is amended in sections C.6. and

C.7.a.(4) by removing ``room 3E787'' and adding in its place ``room

3E813''; section C.8. removing ``Public Law 102-172'' and adding in its

place ``Public Law 103-139''; by revising section B.4. adding section

B.5. and a heading to section C.8. to read as follows:

Appendix C to Part 169a--[Amended]

Appendix C to Part 169a--Simplified Cost Comparison and Direct

Conversion of CAs

* * * * *

B. * * *

4. The installation commander should attempt to place or retrain

displaced DoD civilian employees by

a. Placing or retraining employees in available permanent vacant

positions, or

b. Assigning displaced employees to valid temporary or over-hire

positions in similar activities for gainful employment until permanent

vacancies are available. The type of employee appointment (e.g.,

career, career-conditional, etc., or change from competitive to

excepted service or vice versa) must not change, or

c. Where no vacancies exist or are projected, offer employees

retraining opportunities under the Job Training Partnership Act or

similar retraining programs for transitioning into the private sector.

5. The function to be directly converted does not include any DoD

civilian positions that were as a result of DoD Component streamlining

plans and/or were removed with buyout offers that satisfied Section 5

of the Federal Workforce Restructuring Act requirements.

C. * * *

8. Most Efficient and Cost-Effective Analysis for Contractor

Performance of an Activity (Report Control Symbol DD-A&T(AR) 1951.* * *

6. Appendix D to Part 169a is amended by revising the second

paragraph of the introductory text, by revising DoD Component code

``Y'' under the heading CAMIS ENTRY AND UPDATE INSTRUCTIONS, Part I,

Section One, item [3] and by adding two new entries at the end of that

item [3]; by revising items [4] and [5] under the heading CAMIS ENTRY

AND UPDATE INSTRUCTIONS, Part I, Section One; by revising DoD Component

code ``Y'' under the heading CAMIS ENTRY AND UPDATE INSTRUCTIONS, Part

II, Section One, item [3] and by adding two new entries at the end of

that item [3]; and by revising items [4] and [5] under the heading

CAMIS ENTRY AND UPDATE INSTRUCTIONS, Part II, Section One, to read us

follows:

Appendix D to Part 169a--[Amended]

Appendix D to Part 169a--Commercial Activities Management Information

System (CAMIS)

* * * * *

On approval of a full cost comparison, a simplified cost

comparison, or a direct conversion CA, the DoD Component shall create

the initial entry using the data elements in part I for full cost

comparisons and data elements in part II for all other conversions.

Within 30 days of the end of each quarter the DoD Component shall

submit a floppy diskette. Data files must be in American Standard Code

Information Interchange text file format on a MicroSoft-Disk Operating

System formatted 3.5 inch floppy diskette. Provide submissions in the

Defense Utility Energy Reporting System format. The data shall be

submitted in the Director, Installations Management (D,IM), 400 Army

Navy Drive, Room 206, Arlington, VA 22202-2884 at least 60 days prior

to the end of the quarter. The D,IM shall use the automated data to

update the CAMIS. If the DoD Component is unable to provide data in an

automated format, the D,IM shall provide quarterly printouts of cost

comparison records (CCR) and conversion and/or comparison records

(DCSCCR) that may be annotated and returned within 30 days of the end

of each quarter to the D,IM. The D,IM then shall use the annotated

printouts to update the CAMIS.

* * * * *

CAMIS Entry and Update Instructions

Part I * * *

Section One * * *

[3] * * *

Y--On Site Inspection Agency (OSIA)

2--* * *

3--* * *

4--Defense Technical Information Center (DTIC)

5--U.S. Army Corps of Engineers (USACE) Civil Works

[4] Command code. The code established by the DoD Component

headquarters to identify the command responsible for operating the

commercial activity undergoing cost comparison.

[5] Installation code. The code established by the DoD Component

headquarters to identify the installation where the CA(s) under cost

comparison is and/or are located physically. Two or more codes (for

cost comparison packages encompassing more than one installation)

should be separated by commas.

* * * * *

CAMIS Entry and Update Instructions

Part II * * *

Section One * * *

[3] * * *

Y--On Site Inspection Agency (OSIA)

[[Page 67330]]

2--* * *

3--* * *

4--Defense Technical Information Center (DTIC)

5--U.S. Army Corps of Engineers (USACE) Civil Works

[4] Command code. The code established by the DoD Component

headquarters to identify the command responsible for operating the

commercial activity undergoing cost comparison.

[5] Installation code. The code established by the DoD Component

headquarters to identify the installation where the CA(s) under cost

comparison is and/or are located physically. Two or more codes (for

cost comparison packages encompassing more than one installation)

should be separated by commas.

* * * * *

Dated: December 21, 1995.

L.M. Bynum,

Alternate OSD Federal Register Liaison Officer, Department of Defense.

[FR Doc. 95-31346 Filed 12-28-95; 8:45 am]

BILLING CODE 5000-04-M