Government Contracts DFARS Rule Revises Photovoltaic Device Restrictions
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Monday, December 24, 2018

DFARS Rule Revises Photovoltaic Device Restrictions

By Government Contracts Editorial Staff

The Department of Defense has issued a final rule amending the Defense Federal Acquisition Regulation Supplement. The DFARS Case 2018-D007 rule implements section 813(b) of the National Defense Authorization Act for Fiscal Year 2018 (PL 115-91), which repealed the FY 2015 restrictions on the source of photovoltaic devices in contracts awarded by DoD that result in DoD ownership of photovoltaic devices by means other than DoD purchase of the photovoltaic devices as end products. When purchasing renewable power generated via onsite photovoltaic devices, DoD can purchase the photovoltaic devices and thereby own, operate, and maintain the devices for their full economic life. The objective of this rule is to revert to the regulations on photovoltaic devices that were in effect prior to superimposing the additional regulations required by section 858 of the NDAA FY 2015. By restoring the tie to the Buy American statute, this rule reinstates the Buy American exceptions for acquisitions below the micro-purchase threshold, nonavailabilty, unreasonable cost, and public interest, including the DoD class determinations that exempt U.S.-made and qualifying country photovoltaic devices from the requirement of the Buy American statute, as well as the governmentwide determination that removes the component test for commercially-available off-the-shelf items. The rule amends DFARS 212.301 and DFARS 225.7017-1 through DFARS 225.7017-2, removes DFARS 225.7017-4, and redesignates DFARS 225.7017-5 as DFARS 225.7017-4. Also, the rule revises the contract clause at DFARS 252.225-7017 and solicitation provision at DFARS 252.225-7017. The rule also makes a corresponding change in the DFARS companion resource, Procedures, Guidance and Information, at PGI 225.7017. There are no changes from the proposed rule (¶70,020.414). The effective date of the rule is December 5, 2018. The text of this rule appears at ¶70,016.961.

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