DEPARTMENT OF DEFENSE

Statement of Regulatory Priorities

Background

The Department of Defense (DoD) is the largest Federal department consisting of three Military departments (Army, Navy, and Air Force), nine Unified Combatant Commands, 17 Defense Agencies, and ten DoD Field Activities. It has 1,329,949 military personnel and 878,527 civilians assigned as of June 30, 2016, and over 200 large and medium installations in the continental United States, U.S. territories, and foreign countries. The overall size, composition, and dispersion of DoD, coupled with an innovative regulatory program, present a challenge to the management of the Defense regulatory efforts under Executive Order (E.O.) 12866 "Regulatory Planning and Review" of September 30, 1993.

Because of its diversified nature, DoD is affected by the regulations issued by regulatory agencies such as the Departments of Commerce, Energy, Health and Human Services, Housing and Urban Development, Labor, State, Transportation, and the Environmental Protection Agency. In order to develop the best possible regulations that embody the principles and objectives embedded in Executive Order 12866, there must be coordination of proposed regulations among the regulatory agencies and the affected DoD components. Coordinating the proposed regulations in advance throughout an organization as large as DoD is a straightforward, yet formidable, undertaking.

DoD issues regulations that have an effect on the public and that can be significant as defined in Executive Order 12866. In addition, some of DoD's regulations may affect other agencies. DoD, as an integral part of its program, not only receives coordinating actions from other agencies, but coordinates with the agencies that are affected by its regulations as well.

Overall Priorities

The Department needs to function at a reasonable cost, while ensuring that it does not impose ineffective and unnecessarily burdensome regulations on the public. The rulemaking process should be responsive, efficient, cost-effective, and both fair and perceived as fair. This is being done in DoD while reacting to the contradictory pressures of providing more services in a constrained fiscal environment. DoD, as a matter of overall priority for its regulatory program, fully incorporates the provisions of the President's priorities and objectives under Executive Order 12866.

International Regulatory Cooperation

As the President noted in Executive Order 13609, "Promoting International Regulatory Cooperation" of May 1, 2012, "international regulatory cooperation, consistent with domestic law and prerogatives and U.S. trade policy, can be an important means of promoting" public health, welfare, safety, and our environment as well as economic growth, innovation, competitiveness, and job creation. Accordingly, in Executive Order 13609, the President requires each executive agency to include in its Regulatory Plan a summary of its international regulatory cooperation activities that are reasonably anticipated to lead to significant regulations.

The Department of Defense, along with the Departments of State and Commerce, engages with other countries in the Wassenaar Arrangement, Nuclear Suppliers Group, Australia Group, and Missile Technology Control Regime through which the international community develops a common list of items that should be subject to export controls. DoD has been a key participant in the Administration's Export Control Reform effort that resulted in a complete overhaul of the U.S. Munitions List and fundamental changes to the Commerce Control List. New controls have facilitated transfers of goods and technologies to allies and partners while helping prevent transfers to countries of national security and proliferation concern. DoD will continue to assess new and emerging technologies to ensure items that provide critical military and intelligence capabilities are properly controlled on international export control regime lists.

Retrospective Review of Existing Regulations

Pursuant to section 6 of Executive Order 13563 "Improving Regulation and Regulatory Review" (January 18, 2011), the following Regulatory Identification Numbers (RINs) have been identified as associated with retrospective review and analysis in the Department's final retrospective review of regulations plan. Several are of particular interest to small businesses. The entries on this list are completed actions, which do not appear in The Regulatory Plan. However, more information can be found about these completed rulemakings in past publications of the Unified Agenda on reginfo.gov in the Completed Actions section for DoD. These rulemakings can also be found on regulations.gov. We will continue to identify retrospective review regulations as they are published and report on the progress of the overall plan biannually. DoD's final agency plan and all updates to the plan can be found at: http://www.regulations.gov/#!docketDetail;D=DOD-2011-OS-0036.

RIN	*Rule Title (expected to significantly reduce burdens on small businesses)**
0702-AA71	Army Privacy Program
0703-AA90	Guidelines for Archaeological Investigation Permits and Other Research on Sunken Military Craft and Terrestrial Military Craft Under the Jurisdiction of the Department of the Navy
0703-AA92	Professional Conduct of Attorneys Practicing Under the Cognizance and Supervision of the Judge Advocate General
0710-AA66	Civil Monetary Penalty Inflation Adjustment Rule
0710-AA60	Nationwide Permit Program Regulations*
0750-AG47	Safeguarding Unclassified Controlled Technical Information (DFARS Case 2011-D039)
0750-AG62	Patents, Data, and Copyrights (DFARS Case 2010-D001)
0750-AH11	Only One Offer (DFARS Case 2011-D013)
0750-AH19	Accelerated Payments to Small Business (DFARS Case 2011-D008)
0750-AH54	Performance-Based Payments (DFARS Case 2011-D045)
0750-AH70	Defense Trade Cooperation Treaty With Australia and the United Kingdom (DFARS Case 2012-D034)
0750-AH86	Forward Pricing Rate Proposal Adequacy Checklist (DFARS Case 2012-D035)
0750-AH87	System for Award Management Name Changes, Phase 1 Implementation (DFARS Case 2012-D053)
0750-AH90 0750-AH94 0750-AH95 0750-AI02 0750-AI10 0750-AI19 0750-AI27	Clauses With Alternates-Transportation (DFARS Case 2012-D057) Clauses with Alternates-Foreign Acquisition (DFARS Case 2013-D005) Clauses with Alternates-Quality Assurance (DFARS Case 2013-D004) Clauses with Alternates-Contract Financing (DFARS Case 2013-D014) Clauses with Alternates-Research and Development Contracting (DFARS Case 2013-D026) Clauses with Alternates-Taxes (DFARS Case 2013-D025) Clauses with Alternates-Special Contracting Methods, Major System Acquisition, and Service Contracting (DFARS Case 2014-D004)
0750-AI03	Approval of Rental Waiver Requests (DFARS Case 2013-D006)
0750-AI07	Storage, Treatment, and Disposal of Toxic or Hazardous Materials-Statutory Update (DFARS Case 2013-D013)
0750-AI18	Photovoltaic Devices (DFARS Case 2014-D006)
0750-AI34	State Sponsors of Terrorism (DFARS Case 2014-D014)
0750-AI43	Inflation Adjustment of Acquisition-Related Thresholds (DFARS Case 2014-D025)
0750-AI58	Detection and Avoidance of Counterfeit Electronic Parts--Further Implementation (DFARS Case 2014-D005)
0750-AI76	Duty-Free Entry Threshold (DFARS Case 2015-D036)
0750-AI85	Prohibition on Requiring the Use of Fire-Resistant Rayon Fiber (DFARS Case 2016-D012)
0790-AI19	Service Academies
0790-AI42	Personnel Security Program
0790-AI54	Defense Support of Civilian Law Enforcement Agencies
0790-AI63	Alternative Dispute Resolution
0790-AI77	Provision of Early Intervention and Special Education Services to Eligible DoD Dependents
0790-AI86	Defense Logistics Agency Privacy Program
0790-AI87	Defense Logistics Agency Freedom of Information Act Program
0790-AI88	Shelter for the Homeless
0790-AI90	DoD Assistance to Non-Government, Entertainment-Oriented Media Productions
0790-AI94	Public Affairs Liaison with Industry
0790-AI98	Professional U.S. Scouting Organizations Operating at U.S. Military Installations Overseas
0790-AJ00	Civilian Employment and Reemployment Rights of Applicants for, and Service Members and Former Service Members of, the Uniformed Services
0790-AJ03	DoD Privacy Program
0790-AJ06	Voluntary Education Programs
0790-AJ07	Historical Research in the Files of the Office of the Secretary of Defense (OSD)
0790-AJ10	Enhancement of Protections on Consumer Credit for Members of the Armed Forces and Their Dependents
0790-AJ11	Defense Materiel Disposition
0790-AJ19	Background Checks on Individuals in DoD Child Care Services Programs
0790-AJ28	National Language Service Corps (NLSC)
	Pursuant to Executive Order 13563, DoD also removed 32 CFR part 513, "Indebtedness of Military Personnel," because the part is obsolete and the governing policy is now codified at 32 CFR part 112.

Administration Priorities:

1. Rulemakings that are expected to have high net benefits well in excess of costs.

The Department plans to finalize the following Defense Federal Acquisition Regulation Supplement (DFARS) rule:

Network Penetration Reporting and Contracting for Cloud Services (DFARS case 2013-D018). This final rule implements section 941 of the National Defense Authorization Act (NDAA) for FY 2013 and section 1632 of the NDAA for FY 2015. Section 941 requires cleared defense contractors to report penetrations of networks and information systems and allows DoD personnel access to equipment and information to assess the impact of reported penetrations. Section 1632 requires that a contractor designated as operationally critical must report each time a cyber-incident occurs on that contractor's network or information systems. Ultimately, DoD anticipates significant savings to taxpayers as a result of this rule, by improving information security for DoD information that resides in or transits through contractor systems and a cloud environment. Recent high-profile breaches of Federal information show the need to ensure that information security protections are clearly, effectively, and consistently addressed in contracts. This rule will help protect covered defense information or other Government data from compromise and protect against the loss of operationally critical support capabilities, which could directly impact national security.

The Department plans to propose the following DFARS rule:

Use of the Government Property Clause (DFARS Case 2015-D035). This rule amends the DFARS to expand the prescription for use of Federal Acquisition Regulation (FAR) clause 52.245-1, Government Property. This clause requires contractors to comply with basic property receipt and record keeping requirements in order for the Government to track, report, and manage Government-furnished property. Currently, this clause is not required for use in purchase orders for repair when the unit acquisition cost of Government property to be repaired does not exceed the simplified acquisition threshold (SAT). However, acquisition value alone is not an indicator of the criticality or sensitivity of Government property items. For example, firearms, body armor, night vision equipment, computers or crypto-logical devices may individually all be below the SAT, but accountability of these items is of vital importance. Lack of the use of the Government property clause in these instances significantly increases the risk of misuse or loss of Government property. In order to strengthen the management and accountability of Government-furnished property (GFP), this rule proposes to amend the DFARS to require use of the Government property clause in these instances, regardless of the acquisition value.

2. Rulemakings that promote open Government and use disclosure as a regulatory tool.

The Department plans to finalize the following DFARS rule:

Promoting Voluntary Post-Award Disclosure of Defective Pricing (DFARS Case 2015-D030). In response to the Better Buying Power 2.0 initiative on "Eliminating Requirements Imposed on Industry where Costs Outweigh Benefits," contractors recommended that DoD clarify policy guidance to reduce repeated submissions of certified cost or pricing data. Frequent submissions of such data are used as a defense against defective pricing claims by DoD after contract award, since data that are frequently updated are less likely to be considered outdated or inaccurate and, therefore, defective. Better Buying Power 3.0 called for a revision of regulatory guidance regarding the requirement for contracting officers to request an audit, even if a contractor voluntarily discloses defective pricing after contract award. This rule amends the DFARS to stipulate that DoD contracting officers shall request a limited-scope audit when a contractor voluntarily discloses defective pricing after contract award, unless a full-scope audit is appropriate for the circumstances.

3. Rulemakings of particular interest to small businesses.

The Department plans to propose the following DFARS rules-

Temporary Extension of Test Program for Comprehensive Small Business Subcontracting Plans (DFARS Case 2015-D013). This rule amends the DFARS to implement section 821 of the NDAA for FY 2015 regarding the Test Program for Comprehensive Small Business Subcontracting Plans. The Test Program was established under section 834 of the NDAAs for FYs 1990 and 1991 to determine whether the negotiation and administration of comprehensive small business subcontracting plans would result in an increase of opportunities provided for small business concerns under DoD contracts. A comprehensive subcontracting plan (CSP) can be negotiated on a corporate, division, or sector level, rather than contract by contract. This rule will amend the DFARS to: (1) extend the Test Program through December 31, 2017; (2) implement new reporting requirements for program participants; (3) require contracting officers to consider an offerors failure to make a good faith effort to comply with its CSP in past performance evaluations; and (4) establish procedures for the assessment of liquidated damages. This rule is of particular interest to small businesses because it holds prime contractors that are participating in the program accountable for the small business goals established in their CSP, resulting in increased business opportunities for small business subcontractors.

Amendment to Mentor-Protégé Program (DFARS Case 2016-D011). This rule amends the DFARS to implement section 861 of the NDAA for FY 2016 (Pub. L. 114-92), which provides amendments to the Pilot Mentor-Protégé Program ("the Program"). Specifically, section 861 requires mentor firms participating in the Program to report additional information on the assistance they have provided to their protégé firms, the success this assistance has had in addressing the protégé firm's developmental needs, the impact on DoD contracts, and any problems encountered. The new reporting requirements apply retroactively to mentor-protégé agreements entered into before, on, or after the date of enactment of the NDAA for FY 2016 (enacted November 25, 2015). DoD's OSBP will use the information reported by mentors to support decisions regarding continuation of particular mentor-protégé agreements. In addition, section 861 adds new eligibility criteria for mentor and protégé firms; limits the period of time a protégé firm can participate in the Program; limits the number of mentor-protégé agreements to which a protégé can be a party; and extends the Program for three years. This rule amends DFARS to implement the new reporting requirements and other Program amendments.

The Department plans to reissue the Nationwide Permits-

Department of the Army (DA) permits are required for discharges of dredged or fill material into waters of the United States and any structures or other work that affect the course, location, or condition of navigable waters of the United States. Small businesses proposing to discharge dredged or fill material into waters of the United States and/or install structures or do work in navigable waters of the United States must obtain DA permits to conduct those activities, unless a particular activity is exempt from those permit requirements. Individual permits and general permits can be issued by the Corps to satisfy the permit requirements of these two statutes. Nationwide permits (NWPs) are a form of general permit issued by the U.S. Army Corps of Engineers (Corps) that authorize activities that have no more than minimal individual and cumulative adverse environmental effects. The NWPs provide a streamline authorization process for small businesses to fulfill DA permit requirements. Nationwide permits can only be issued for a period of no more than five years. The issuance and reissuance of NWPs must be done every five years to continue the NWP program. Currently, there are 50 NWPs, and those NWPs expire on March 18, 2017. In addition to proposing to reissue all of the 50 existing NWPs, the Corps is also proposing to issue two new NWPs. The Corps plans on issuing the final NWP rule before the current NWPs expire so that NWPs will continue to be available to small businesses and other regulated entities.

4. Rulemakings that streamline regulations, reduce unjustified burdens, and minimize burdens on small businesses.

The Department plans to propose the following DFARS rule-

Pilot Program for Streamlining Awards for Innovative Technology Projects (DFARS Case 2016-D016). This rule proposes to amend the DFARS to implement section 873 of the NDAA for FY 2016 (Pub. L. 114-92). Section 873 provides the following exception from certified cost and pricing data requirements for contracts, subcontracts, or modifications of contracts or subcontracts valued at less than $7.5 million awarded to a small business or nontraditional defense contractor pursuant to a technical, merit-based selection procedure (e.g., broad agency announcement) or the Small Business Innovation Research (SBIR) Program. In addition, section 873 provides an exception from the records examination requirement at 10 U.S.C. 2313 for contracts valued at less than $7.5 million awarded to a small business or nontraditional defense contractor pursuant to a technical, merit-based selection procedure (e.g., broad agency announcement) or the SBIR Program. However, section 873 also provides authority in certain circumstances to determine that submission of cost and pricing data or auditing of records should be required based on past performance of the specific small business or nontraditional defense contractor or analysis of other information specific to the award. These exceptions end on October 1, 2020.

The Department plans to reissue the Nationwide Permits-

As discussed above, nationwide permits (NWPs) are a form of general permit issued by the Corps that authorizes activities that require DA authorization and have no more than minimal individual and cumulative adverse environmental effects. The Corps plans to reissue the 50 existing NWPs and issue two new NWPs. Unlike individual permits, NWPs authorize activities without the requirement for public notice and comment on each proposed activity, which reduces burdens on small businesses and streamlines the authorization process. In FY 2015, the Corps issued approximately 31,700 NWP verifications, with an average processing time of 41 days. In FY 2015, the Corps issued approximately 1,700 standard individual permits, with an average processing time of 211 days. The proposed NWPs were published in the Federal Register on June 1, 2016, for a 60-day comment period. The Corps plans on finalizing the NWPs before the current NWPs expire on March 18, 2017. The costs for obtaining authorization under an NWP are low compared to the standard individual permit process, both in terms of financial costs and the time it takes to obtain the required authorization.

5. Rules to be modified, streamlined, expanded, or repealed to make the agency's regulatory program more effective or less burdensome in achieving the regulatory objectives.

The Department plans to finalize the following DFARS rule-

Enhancing Independent Research and Development Efforts (DFARS Case 2016-D002). This rule will amend the DFARS to improve the effectiveness of independent research and development (IR&D) investments by the defense industrial base that are reimbursed as allowable costs. Specifically, DoD is revising DFARS 231.205-18, Independent Research and Development and Bid and Proposal Costs, to require that proposed new independent research and development (IR&D) efforts be communicated to appropriate DoD personnel prior to the initiation of these investments, and that results from these investments should also be shared with appropriate DoD personnel. IR&D investments need to meet the complementary goals of providing defense companies an opportunity to exercise independent judgement on investments in promising technologies that will provide a competitive advantage, including the creation of intellectual property, while at the same time pursuing technologies that may improve the military capability of the United States. These efforts can have the best payoff, both for DoD and for individual performing companies, when the Government is well informed of the investments that companies are making, and when companies are well informed about related investments being made elsewhere in the Government's research and development portfolios and about Government plans for potential future acquisitions where this IR&D may be relevant.

Specific DoD Priorities:

For this regulatory plan, there are six specific DoD priorities, all of which reflect the established regulatory principles. DoD has focused its regulatory resources on the most serious health and safety risks. Perhaps most significant is that each of the priorities described below promulgates regulations to offset the resource impacts of Federal decisions on the public or to improve the quality of public life, such as those regulations concerning acquisition, health affairs, personnel benefits, and cyber security.

1. Acquisition, Technology, and Logistics/Defense Procurement and Acquisition

Policy (DPAP), Department of Defense

DPAP continuously reviews the DFARS and continues to lead Government efforts to-

Improve the presentation, clarity, and streamlining of the regulation by, for example: (1) implementing the new convention to construct clauses with alternates in a manner whereby the alternate clauses are included in full-text; and (2) removing obsolete reporting or other requirements imposed on contractors. Such improvements ensure that contracting officers, contractors, and offerors have a clear understanding of the rules for doing business with the Department.

Obtain early engagement with industry on procurement topics of high public interest by, for example: (1) utilizing the DPAP Defense Acquisition Regulation System website to obtain early public feedback on newly enacted legislation that impacts the Department's acquisition regulations, prior to initiating rulemaking to draft the implementing rules; and (2) holding public meetings to solicit industry feedback on proposed rulemakings.

Employ methods to facilitate and improve efficiency of the contracting process, such as (1) updating certain evaluation thresholds based on the consumer price index; (2) allowing contractors to display one DoD Inspector General hotline poster instead of three; and (3) revising the DD Form 1547, Record of Weighted Guidelines, to provide a more transparent means of documenting costs incurred during the undefinitized period of an undefinitized contract action.

2. Health Affairs, Department of Defense

The Department of Defense is able to meet its dual mission of wartime readiness and peacetime health care for those entitled to DoD medical care and benefits by operating an extensive network of military medical treatment facilities supplemented by services furnished by civilian health care providers and facilities through the TRICARE program as administered under DoD contracts. TRICARE is a major health care program designed to improve the management and integration of DoD's health care delivery system.

The Department of Defense's Military Health System (MHS) continues to meet the challenge of providing the world's finest combat medicine and aeromedical evacuation, while supporting peacetime health care for those entitled to DoD medical care and benefits at home and abroad. The MHS brings together the worldwide health care resources of the Uniformed Services (often referred to as "direct care," usually within military treatment facilities) and supplements this capability with services furnished by network and non-network civilian health care professionals, institutions, pharmacies, and suppliers, through the TRICARE program as administered under DoD contracts, to provide access to high quality health care services while maintaining the capability to support military operations. The TRICARE program serves 9.5 million Active Duty Service Members, National Guard and Reserve members, retirees, their families, survivors, and certain former spouses worldwide. TRICARE continues to offer an increasingly integrated and comprehensive health care plan, refining and enhancing both benefits and programs in a manner consistent with the law, industry standard of care, and best practices, to meet the changing needs of its beneficiaries. The program's goal is to increase access to health care services, improve health care quality, and control health care costs.

The Defense Health Agency plans to publish the following rules-

Final Rule: Civilian Health and Medical Program of the Uniformed Services (CHAMPUS)/ TRICARE: Refills of Maintenance Medications Through Military Treatment Facility Pharmacies or National Mail Order Pharmacy Program. This final rule implements Section 702 (c) of the Carl Levin and Howard P. "Buck" McKeon National Defense Authorization Act for Fiscal Year 2015 which states that beginning October 1, 2015; the pharmacy benefits program shall require eligible covered beneficiaries generally to refill non-generic prescription maintenance medications through military treatment facility pharmacies or the national mail-order pharmacy program. Section 702(c) of the National Defense Authorization Act for Fiscal Year 2015 also terminates the TRICARE For Life Pilot Program on September 30, 2015. The TRICARE For Life Pilot Program described in Section 716 (f) of the National Defense Authorization Act for Fiscal Year 2013, was a pilot program which began in March 2014 requiring TRICARE For Life beneficiaries to refill non-generic prescription maintenance medications through military treatment facility pharmacies or the national mail-order pharmacy program. TRICARE for Life beneficiaries are those enrolled in the Medicare wraparound coverage option of the TRICARE program. This rule includes procedures to assist beneficiaries in transferring covered prescriptions to the mail order pharmacy program. This rule has been identified as an economically significant rule. DoD anticipates publishing the final rule in the first quarter of FY 2017.

Final Rule: TRICARE; Reimbursement of Long Term Care Hospitals and Inpatient Rehabilitation Facilities. The Department of Defense, Defense Health Agency, is revising its reimbursement of Long Term Care Hospitals (LTCHs) and Inpatient Rehabilitation Facilities (IRFs). Revisions are in accordance with the statutory provision at title 10, United States Code (U.S.C.), section 1079(i)(2) that requires TRICARE payment methods for institutional care be determined, to the extent practicable, in accordance with the same reimbursement rules as apply to payments to providers of services of the same type under Medicare. 32 CFR 199.2 includes a definition for "Hospital, long-term (tuberculosis, chronic care, or rehabilitation)." This rule deletes this definition and creates separate definitions for "Long Term Care Hospital" and "Inpatient Rehabilitation Facility" in accordance with Centers for Medicare and Medicaid Services (CMS) classification criteria. Under TRICARE, LTCHs and IRFs (both freestanding rehabilitation hospitals and rehabilitation hospital units) are currently paid the lower of a negotiated rate (if they are a network provider) or billed charges (if they are a non-network provider). Although Medicare's reimbursement methods for LTCHs and IRFs are different, it is prudent to adopt both the Medicare LTCH and IRF Prospective Payment System (PPS) methods simultaneously to align with our statutory requirement to reimburse like Medicare. This rule sets forth the proposed regulation modifications necessary for TRICARE to adopt Medicare's LTCH and IRF Prospective Payment Systems and rates applicable for inpatient services provided by LTCHs and IRFs to TRICARE beneficiaries. This rule has been identified as an economically significant rule. DoD anticipates publishing the final rule in the third quarter of FY 2017.

3. Personnel and Readiness, Department of Defense

The Department of Defense plans to publish the following rules-

Final Rule; Amendment: Sexual Assault Prevention and Response (SAPR) Program. The purpose of this rule is to implement DoD policy and assign responsibilities for the SAPR Program on prevention, response, and oversight of sexual assault. The goal is for DoD to establish a culture free of sexual assault through an environment of prevention, education and training, response capability, victim support, reporting procedures, and appropriate accountability that enhances the safety and well-being of all persons. DoD anticipates publishing the final rule in the third quarter of FY 2017.

Final Rule: Sexual Assault Prevention and Response (SAPR) Program Procedures. This rule establishes policy, assigns responsibilities, and provides guidance and procedures for the SAPR Program. It establishes processes and procedures for the Sexual Assault Forensic Examination Kit, the multidisciplinary Case Management Group, and guidance on how to handle sexual assault reports, SAPR minimum program standards, SAPR training requirements, and SAPR requirements for the DoD Annual Report on Sexual Assault in the Military. The DoD goal is a culture free of sexual assault through an environment of prevention, education and training, response capability, victim support, reporting procedures, and appropriate accountability that enhances the safety and well-being of all persons. DoD anticipates publishing the final rule in the third quarter of FY 2017.

Final Rule: Identification (ID) Cards for Members of the Uniformed Services, Their Dependents, and Other Eligible Individuals. Among the Obama Administration regulatory priorities are rules which extend fairness and tolerance to all Americans. The Department of Defense (DoD) previously published an interim final rule that extended benefits to all eligible dependents of uniformed Service members and eligible DoD civilians. It was necessary to publish an amended interim final rule to ensure the issuance of ID cards and extension of benefits aligns with current Federal and DoD policy, and to include an additional implementing manual addressing eligibility documentation requirements. The final rule incorporates all comments received during the public comment process that were adjudicated by the Department as necessary changes to the rule. DoD anticipates publishing the final rule in the third quarter of FY 2017.

4. Chief Information Officer, Department of Defense

The Department of Defense plans to publish the final rule for the Defense Industrial Base (DIB) Cybersecurity (CS) Activities that implements statutory requirements for mandatory cyber incident reporting while maintaining the voluntary cyber threat information sharing program.

Interim Final Rule: Defense Industrial Base (DIB) Cyber Security (CS) Activities. The DoD-DIB CS Activities regulation mandates reporting of cyber incidents that result in an actual or potentially adverse effect on a covered contractor information system or covered defense information residing therein, or on a contractor's ability to provide operationally critical support. This interim final rule will modify eligibility criteria to permit greater participation in the voluntary DoD-DIB CS information sharing program. Expanding participation in the DoD-DIB CS information sharing program is part of DoD's comprehensive approach to counter cyber threats through information sharing between the Government and DIB participants. The DoD-DIB CS information sharing program allows eligible DIB participants to receive Government furnished information (GFI) and cyber threat information from other DIB participants, thereby providing greater insights into adversarial activity targeting the DIB. DoD anticipates publishing the interim final rule in the third quarter of FY 2017.