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DoD is proposing to amend the Defense Federal Acquisition Regulation Supplement to implement section 803 of the National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2022 (Pub. L. 117-81) that amends 10. U.S.C. 2380 to establish a permanent authority for the Secretary of Defense and those of the military departments to acquire innovative commercial products and commercial services through a competitive selection of proposals resulting from a general solicitation and the peer review of such proposals.  Products and services purchased under this authority are treated as commercial.

Statement of Need:

This rule is necessary to implement section 803 of the National Defense Authorization Act for Fiscal Year 2022 (Pub. L. 117-81), which establishes a permanent authority for the Secretary of Defense and those of the military departments to acquire innovative commercial products and commercial services through a competitive selection of proposals resulting from a general solicitation and the peer review of such proposals. Products and services purchased under this authority are treated as commercial.

Summary of the Legal Basis:

The legal basis for this rule is 41 U.S.C. 1303 and section 803 of Public Law 117-81.

Alternatives:

There are no alternatives that would meet the requirements of section 803 of Public Law 117-81.

Anticipated Costs and Benefits:

This rule will enable DoD to access innovative products and services of entities that may not have not done business with DoD in the past. Such entities may compete for additional DoD contracts, thereby increasing competition for DoD contracts.

Risks:

The difficulty of accessing innovative products and services of these entities creates a risk for DoD with regard to finding solutions and obtaining products and services that meet the Department’s needs.