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2004 Change Notices (Archived)

DEFENSE FAR SUPPLEMENT (DFARS) Change Notice 20041215 (Click here to view the whole Change Notice)

DoD published the following changes and proposed changes to the DFARS on December 15 , 2004. 

Interim Rule

Contract Period for Task and Delivery Order Contracts (DFARS Case 2003-D097/2004-D023)

Limits the ordering period of a task or delivery order contract awarded under the authority of 10 U.S.C. 2304a to not more than 10 years, unless the head of the agency determines that exceptional circumstances require a longer ordering period.  This rule revises the interim rule published on March 23, 2004 (DFARS Change Notice 20040323), which contained a 5-year limit on task or delivery order contracts.  The rule implements Section 843 of the National Defense Authorization Act for Fiscal Year 2004 and Section 813 of the National Defense Authorization Act for Fiscal Year 2005.

Affected subparts/sections:  217.2; PGI 217.2           

The Federal Register notice for this rule is available here

A Microsoft Word format document showing all additions and deletions made by this rule is here.

A Microsoft Word format document showing the text added to PGI is here.

Final Rules – DFARS Transformation

The following changes are a result of DFARS Transformation, which is a major DoD initiative to dramatically change the purpose and content of the DFARS.  Additional information on the DFARS Transformation initiative is available at http://www.acq.osd.mil/dpap/dars/dfars/transformation/index.htm.  Three of the following changes relocate text to the new DFARS companion resource, Procedures, Guidance, and Information (PGI), available at http://www.acq.osd.mil/dpap/dars/pgi.  

Improper Business Practices and Contractor Qualifications Relating to Debarment, Suspension, and Business Ethics (DFARS Case 2003-D012) 

Consolidates text on reporting of improper business practices to the appropriate authorities; updates a contract clause addressing prohibitions on persons convicted of fraud or other defense-contract-related felonies; and relocates to PGI, procedures for referring matters to the agency debarring and suspending official.

Affected subparts/sections:  DFARS Table of Contents; Part 203 Table of Contents; 203.0; 203.1; 203.2; 203.3; 203.4; 203.5; 209.1; 209.4; 252.203; PGI 203.5; PGI 209.1; PGI 209.4 

The Federal Register notice for this rule is available here

A Microsoft Word format document showing all additions and deletions made by this rule is here.

A Microsoft Word format document showing the text added to PGI is here.

DoD Pilot Mentor-Protégé Program (DFARS Case 2003-D013)

Changes the DoD Pilot Mentor-Protégé Program to authorize the Director, Small and Disadvantaged Business Utilization (SADBU), of each military department or defense agency to approve contractors as mentor firms and to approve mentor-protégé agreements.  The Director, Office of the Secretary of Defense, SADBU, will retain policy and oversight responsibility and will remain the principal budget authority for the Program.  This rule also revises the structure of DFARS Appendix I for clarity and to reflect current Program requirements.

Affected subparts/sections:  219.71; Appendix I Table of Contents; Appendix I               

The Federal Register notice for this rule is available here

A Microsoft Word format document showing all additions and deletions made by this rule is here.

Competition Requirements (DFARS Case 2003-D017)  

Deletes text that is obsolete or duplicative of FAR policy; and relocates procedures for documenting reasons for use of other than full and open competition to PGI.

Affected subparts/sections:  Part 206 Table of Contents; 206.0; 206.2; 206.3; PGI 206.2; PGI 206.3      

The Federal Register notice for this rule is available here

A Microsoft Word format document showing all additions and deletions made by this rule is here.

A Microsoft Word format document showing the text added to PGI is here.

Construction and Architect-Engineer Services (DFARS Case 2003-D035)

Relocates to PGI, procedures for establishment of evaluation criteria in the selection of firms for architect-engineer contracts; deletes unnecessary text on preselection boards and selection authorities; and replaces a reference to Standard Form 254, Architect-Engineer and Related Services Questionnaire, with a reference to its replacement, Standard Form 330, Architect-Engineer Qualifications. 

Affected subparts/sections:  Part 236 Table of Contents; 236.6; PGI 236.6                

The Federal Register notice for this rule is available here.

A Microsoft Word format document showing all additions and deletions made by this rule is here.

A Microsoft Word format document showing the text added to PGI is here.

Final Rules – Legislative

Free Trade Agreements – Chile and Singapore (DFARS Case 2003-D088)

Finalizes, with changes, the interim rule published on January 13, 2004 (DFARS Change Notice 20040113), to implement new Free Trade Agreements with Chile and Singapore.  The new Free Trade Agreements waive the applicability of the Buy American Act for some foreign supplies and construction materials from Chile and Singapore, and specify procurement procedures designed to ensure fairness.  The changes in the final rule delete text on the applicability of U.S. law to resolve any breach of contract, since this issue is now addressed in the clause at FAR 52.233-4, Applicable Law for Breach of Contract Claim.  The final rule also contains a minor change to clarify procedures for application of the Free Trade Agreements when evaluating foreign offers for supplies.

Affected subparts/sections:  225.5; 252.212; 252.225

The Federal Register notice for this rule is available here.

A Microsoft Word format document showing all additions and deletions made by this rule is here.

Firefighting Services Contracts (DFARS Case 2003-D107)

Finalizes, without change, the interim rule published on June 25, 2004 (DFARS Change Notice 20040625), to implement Section 331 of the National Defense Authorization Act for Fiscal Year 2004.  Section 331 permits the award of contracts for firefighting functions at military installations or facilities for periods of one year or less, if the functions would otherwise have to be performed by members of the armed forces who are not readily available due to a deployment. 

Affected subparts/sections:  None. 

The Federal Register notice for this rule is available here.

DEFENSE FAR SUPPLEMENT (DFARS) Change Notice 20041122 (Click here to view the whole Change Notice)

DoD published the following changes and proposed changes to the DFARS on November 22, 2004. 

Final Rules - DFARS Transformation

The following changes are a result of DFARS Transformation, which is a major DoD initiative to dramatically change the purpose and content of the DFARS.  Additional information on the DFARS Transformation initiative is available at http://www.acq.osd.mil/dpap/dfars/transf.htm.  

Protection of Privacy and Freedom of Information (DFARS Case 2003-D038)

Deletes text pertaining to the applicability of the Privacy Act to certain contractor records.  This subject is adequately addressed in DoD Regulation 5400.11-R, Department of Defense Privacy Program, which is referenced in the DFARS.

Affected subparts/sections:  Part 224 Table of Contents; 224.1               

The Federal Register notice for this rule is available here. 

A Microsoft Word format document showing all additions and deletions made by this rule is here.

Contractor Use of Government Supply Sources (DFARS Case 2003-D045)

Clarifies contractor requirements for payment of invoices from Government supply sources; and relocates procedures for authorizing contractor use of Government supply sources to the new DFARS companion resource, Procedures, Guidance, and Information (PGI), available at http://www.acq.osd.mil/dpap/dars/pgi.

Affected subparts/sections:  Part 251 Table of Contents; 251.1; 252.251; PGI 251.1              

The Federal Register notice for this rule is available here. 

A Microsoft Word format document showing all additions and deletions made by this rule is here.

A Microsoft Word format document showing the text added to PGI is here.

Removal of Obsolete Research and Development Contracting Procedures (DFARS Case 2003-D058) 

Deletes a standard format previously used for research and development solicitations and contracts.  The format has become obsolete due to further advances in technology since its creation.

Affected subparts/sections:  DFARS Table of Contents; Part 235 Table of Contents; 235.70               

The Federal Register notice for this rule is available here. 

A Microsoft Word format document showing all additions and deletions made by this rule is here.

Small Disadvantaged Businesses and Leader Company Contracting (DFARS Case 2003-D092)

Lowers the approval level for subcontracting plans that contain a small disadvantaged business goal of less than five percent, from two levels above the contracting officer to one level above the contracting officer.  Also deletes text addressing the participation of small disadvantaged business concerns in leader company contracting.  DoD rarely uses leader company contracting and, instead, provides incentives for major DoD contractors to assist small disadvantaged business concerns through the DoD Pilot Mentor-Protégé Program.

Affected subparts/sections:  DFARS Table of Contents; Part 217 Table of Contents; 217.4; 219.7              

The Federal Register notice for this rule is available here. 

A Microsoft Word format document showing all additions and deletions made by this rule is here.

Final Rules - Legislative

Written Assurance of Technical Data Conformity (DFARS Case 2003-D104)

Finalizes, without change, an interim rule published on June 8, 2004 (DFARS Change Notice 20040608), to implement Section 844 of the National Defense Authorization Act for Fiscal Year 2004.  Section 844 eliminated the requirement for a contractor to furnish written assurance that delivered technical data is complete and accurate and complies with contract requirements.  The rule reduces paperwork for contractors, but does not diminish the contractor's obligation to provide technical data that is complete, accurate, and in compliance with contract requirements.

Affected subparts/sections:  None.              

The Federal Register notice for this rule is available here. 

Contracting for Architect-Engineer Services (DFARS Case 2003-D105)

Finalizes, without change, an interim rule published on June 8, 2004 (DFARS Change Notice 20040608), to implement Section 1427 of the National Defense Authorization Act for Fiscal Year 2004.  Section 1427 increased, from $85,000 to $300,000, the threshold below which acquisitions for architect-engineer services for military construction or family housing projects are set aside for small business concerns.  The rule increases opportunities for small business concerns to provide architect-engineer services to DoD. 

Affected subparts/sections:  None.               

The Federal Register notice for this rule is available here.

Technical Amendments

Updates the Internet address for DoD specifications and standards.

Affected subparts/sections:  211.2                      

The Federal Register notice for this rule is available here. 

A Microsoft Word format document showing all additions and deletions made by this rule is here.

Proposed Rules - DFARS Transformation

Basic Agreements for Telecommunications Services (DFARS Case 2003-D056)

Proposed change relocates procedures for use of basic agreements for telecommunications services to the new DFARS companion resource, Procedures, Guidance, and Information (PGI).  Basic agreements are used in conjunction with communication service authorizations.

The Federal Register notice for this rule is available here. 

A Microsoft Word format document showing all additions and deletions proposed by this rule is here.

A Microsoft Word format document showing the text proposed for inclusion in PGI is here. 

Update of Clauses for Telecommunications Services (DFARS Case 2003-D053)

Proposed change deletes an obsolete clause and revises the applicability of certain clauses used in telecommunications services contracts.  The clauses being revised are presently applicable only to common carriers (those subject to Federal Communications Commission or other governmental regulation).  The proposed change will make the clauses applicable to both common and noncommon carriers, since the differences between common and noncommon carriers have become less distinct. 

The Federal Register notice for this rule is available here. 

A Microsoft Word format document showing all additions and deletions proposed by this rule is here.

Information Technology Equipment - Screening of Government Inventory (DFARS Case 2003-D054)

Proposed change deletes obsolete procedures for screening of Government inventory before authorizing a contractor to purchase information technology equipment.  DoD now manages information technology equipment in the same manner as other Government property, in accordance with FAR Part 45 and DFARS Part 245.

The Federal Register notice for this rule is available here. 

A Microsoft Word format document showing all additions and deletions proposed by this rule is here.

DEFENSE FAR SUPPLEMENT (DFARS) Change Notice 20041110 (Click here to view the whole Change Notice)

DoD published the following changes and proposed changes to the DFARS on November 10, 2004. 

Final Rules - DFARS Transformation

The following changes are a result of DFARS Transformation, which is a major DoD initiative to dramatically change the purpose and content of the DFARS.  Additional information on the DFARS Transformation initiative is available at http://www.acq.osd.mil/dpap/dfars/transf.htm.  Three of the following changes relocate text to the new DFARS companion resource, Procedures, Guidance, and Information (PGI), available at http://www.acq.osd.mil/dpap/dars/pgi.

Contractor Qualifications Relating to Contract Placement (DFARS Case 2003-D011)  

Deletes obsolete text pertaining to Intermediate Range Nuclear Forces Treaty inspections; deletes unnecessary first article testing and approval requirements; and relocates procedures for requesting pre-award surveys and obtaining approval for product qualification requirements to PGI.

Affected subparts/sections: DFARS Table of Contents; Part 209 Table of Contents; 209.1; 209.2; 209.3; Part 252 Table of Contents; 252.209; PGI 209.1; PGI 209.2             

The Federal Register notice for this rule is available here

A Microsoft Word format document showing all additions and deletions made by this rule is here.

A Microsoft Word format document showing the text added to PGI is here.

Insurance (DFARS Case 2003-D037)  Relocates procedural text on risk-pooling insurance arrangements and requests for waiver of overseas workers' compensation requirements to PGI.Affected subparts/sections:  228.3; PGI 228.3               

The Federal Register notice for this rule is available here

A Microsoft Word format document showing all additions and deletions made by this rule is here.

A Microsoft Word format document showing the text added to PGI is here.

Research and Development Contracting (DFARS Case 2003-D067) Deletes unnecessary text on solicitation and contract content; updates statutory references; updates a clause pertaining to contractor submission of scientific and technical reports; and relocates procedures for maintenance of scientific and technical reports to PGI.Affected subparts/sections:  Part 235 Table of Contents; 235.0; 252.235; PGI 235.0            

The Federal Register notice for this rule is available here

A Microsoft Word format document showing all additions and deletions made by this rule is here.

A Microsoft Word format document showing the text added to PGI is here.

Acquisition of Commercial Items (DFARS Case 2003-D074) Deletes unnecessary text pertaining to structuring of contracts; and updates a FAR reference.  Affected subparts/sections:  Part 212 Table of Contents; 212.3; 212.5              

The Federal Register notice for this rule is available here

A Microsoft Word format document showing all additions and deletions made by this rule is here.

Sealed Bidding (DFARS Case 2003-D076)   Deletes unnecessary text on structuring of contracts, providing copies of documents, and preparation of solicitations; and updates the list of officials authorized to permit correction of mistakes in bid.Affected subparts/sections:  DFARS Table of Contents; Part 214 Table of Contents; 214.2; 214.4; 214.5                

The Federal Register notice for this rule is available here

A Microsoft Word format document showing all additions and deletions made by this rule is here.

Proposed Rule

Geographic Use of the Term "United States" (DFARS Case 2001-D003)Proposes to update references to the "United States" and other geographic terms throughout the DFARS.  The proposed changes clarify the meaning of these terms and provide consistency with definitions found in FAR 2.101.

The Federal Register notice for this rule is available here

A Microsoft Word format document showing all additions and deletions proposed by this rule is here.

DEFENSE FAR SUPPLEMENT (DFARS) Change Notice 20041101 (Click here to view the whole Change Notice)

DoD published the following changes to the DFARS on November 1, 2004.In addition, DoD launched its new DFARS companion resource, Procedures, Guidance, and Information (PGI), available at http://www.acq.osd.mil/dpap/dars/pgi.

Interim Rule

Transition of Weapons-Related Prototype Projects to Follow-On Contracts (DFARS Case 2003-D106)

Establishes a pilot program that permits contracting officers to use FAR Part 12 (Acquisition of Commercial Items) procedures to award follow-on contracts for the production of items begun as prototype projects under other transaction agreements.The follow-on contract must be awarded to a nontraditional defense contractor; must not exceed $50,000,000; and must be either firm-fixed-price or fixed-price with economic price adjustment.This change implements Section 847 of the National Defense Authorization Act for Fiscal Year 2004 and is intended to ease the transition of nontraditional defense contractors from prototype transactions to standard contracts.

Affected subparts/sections: DFARS Table of Contents; Part 212 Table of Contents; 212.2; 212.70

The Federal Register notice for this rule is available here.

A Microsoft Word format document showing all additions and deletions made by this rule is here.

Final Rules - DFARS Transformation

The following changes are a result of DFARS Transformation, which is a major DoD initiative to dramatically change the purpose and content of the DFARS.The transformed DFARS will contain only requirements of law, DoD-wide policies, delegations of FAR authorities, deviations from FAR requirements, and policies/procedures that have a significant effect on the public.The objective is to improve the efficiency and effectiveness of the acquisition process, while allowing the acquisition workforce the flexibility to innovate.Additional information on the DFARS Transformation initiative is available at http://www.acq.osd.mil/dpap/dars/transformation/index.htm.

Procedures, Guidance, and Information (DFARS Case 2003-D090)

Defines a new DFARS companion resource, Procedures, Guidance, and Information (PGI), which contains mandatory and non-mandatory internal DoD procedures, non-mandatory guidance, and supplemental information.Use of PGI will enable DoD to more rapidly convey internal administrative and procedural information to the acquisition workforce.PGI will not contain policy or procedures that significantly affect the public and, therefore, will not be published in the Federal Register or the Code of Federal Regulations.PGI is available at http://www.acq.osd.mil/dpap/dars/pgi.The HTML version of the DFARS, available at http://www.acq.osd.mil/dpap/dars/dfars, contains links to PGI.

Affected subparts/sections:Part 201 Table of Contents; 201.1; 201.2; 201.3; 202.1

The Federal Register notice for this rule is available here.

A Microsoft Word format document showing all additions and deletions made by this rule is here.

Publicizing Contract Actions (DFARS Case 2003-D016)

Deletes unnecessary text on cooperative agreement holders, paid advertisements, and synopsis requirements; and relocates a synopsis format to PGI.

Affected subparts/sections:Part 205 Table of Contents; 205.2; 205.4; 205.5; 226.70; 235.0; 252.205; PGI 205.2

The Federal Register notice for this rule is available here.

A Microsoft Word format document showing all additions and deletions made by this rule is here.

A Microsoft Word format document showing the text added to PGI is here.

Cost Principles and Procedures (DFARS Case 2003-D036)

Deletes obsolete and duplicative text on contract cost principles; and relocates procedural text on Government responsibilities relating to contractor restructuring costs to PGI.

Affected subparts/sections: Part 231 Table of Contents; 231.2; PGI 231.2

The Federal Register notice for this rule is available here.

A Microsoft Word format document showing all additions and deletions made by this rule is here.

A Microsoft Word format document showing the text added to PGI is here.

Laws Inapplicable to Commercial Subcontracts (DFARS Case 2003-D018)

Clarifies a potential source of confusion in the DFARS over the application of the Buy American Act and the Trade Agreements Act to subcontracts. The FAR clauses that implement the Acts are only required for prime contracts and apply the restrictions on the end item delivered to the Government. Prime contractors are not required to further apply the Acts' restrictions to individual components purchased under subcontracts. However, prior to this DFARS change, the Trade Agreements Act and the Buy American Act were listed as laws inapplicable to subcontracts for commercial items. While the DFARS was technically correct, it was unnecessary to state this exception because the laws only apply at the prime contract level for end items, not to individual components. By stating that the laws are inapplicable to subcontracts for commercial items, the DFARS may be misinterpreted to mean that commercial components do not count in the calculation of whether domestic components exceed 50 percent of the value of the components of an end item. Additionally, the DFARS could further be misinterpreted to mean the prime contractor need not comply with the Acts for a subcontracted item delivered to the Government as the end item. The prime contractor is responsible for providing an end product that meets the requirements of the Acts.

To correct this potential source of confusion, this DFARS change removes the Buy American Act and the Trade Agreements Act from the list of laws inapplicable to subcontracts for commercial items. This change will not impact the proper implementation of the Buy American Act and the Trade Agreements Act. However, contracting officers and prime contractors should be aware of the potential for confusion in this area.

Affected subparts/sections:212.5

The Federal Register notice for this rule is available here.

A Microsoft Word format document showing all additions and deletions made by this rule is here.

Final Rule - Purchases from Federal Prison Industries(DFARS Case 2004-D005)

Deletes DFARS text on purchase of products from Federal Prison Industries.The DFARS text is no longer necessary as a result of FAR policy on this subject that was published in Federal Acquisition Circular 2001-21 on March 26, 2004.

Affected subparts/sections:DFARS Table of Contents; Part 208 Table of Contents; 208.6; Part 210 Table of Contents; 210.0; Part 219 Table of Contents; 219.5; Part 252 Table of Contents; 252.219

The Federal Register notice for this rule is available here.

A Microsoft Word format document showing all additions and deletions made by this rule is here.

Technical Amendments

Updates Internet addresses for DoD activity address codes and order code assignments; and adds a link to PGI for information on use of Federal Supply Schedules.

Affected subparts/sections:204.70; 208.4; PGI 208.4

The Federal Register notice for this rule is available here.

A Microsoft Word format document showing all additions and deletions made by this rule is here.

A Microsoft Word format document showing the text added to PGI is here.

DEFENSE FAR SUPPLEMENT (DFARS) Change Notice 20040930 (Click here to view the whole Change Notice)
DoD published the following changes and proposed changes to the DFARS on September 30, 2004:

Final Rule: 
Extension of Partnership Agreement - 8(a) Program (DFARS Case 2004-D015)  
Extends, from September 30, 2004, to September 30, 2005, the expiration date of a partnership agreement between DoD and the Small Business Administration.  The partnership agreement permits DoD contracting officers to award contracts to eligible 8(a) Program participants on behalf of the Small Business Administration. Affected subparts/sections:  219.8        

The Federal Register notice for this rule is available here

A Microsoft Word format document showing all additions and deletions made by this rule is here.

Proposed Rule: 
Patent Rights - Ownership by the Contractor (DFARS Case 2001-D015)  
Proposes to add a DFARS clause on patent rights under contracts awarded to large business concerns for experimental, developmental, or research work.  The proposed clause is substantially the same as the clause presently found at FAR 52.227-12, Patent Rights-Retention by the Contractor (Long Form).  The clause at 52.227-12 was proposed for deletion from the FAR in a proposed rule published in the Federal Register on May 28, 2003, since DoD is the only agency that uses the clause. 

The Federal Register notice for this rule is available here.
   
A Microsoft Word format document showing all additions and deletions proposed by this rule is here. 

Technical Amendments:   Updates the list of DoD contracting activities and the payment office for contracts with Canadian contractors. Affected subparts/sections:  202.1; 225.8
    
The Federal Register notice for this rule is available here.   

A Microsoft Word format document showing all additions and deletions made by this rule is here.

DEFENSE FAR SUPPLEMENT (DFARS) Change Notice 20040917 (Click here to view the whole Change Notice)
DoD published the following interim and final DFARS rules in the Federal Register on September 17, 2004:

Interim Rules:

Consolidation of Contract Requirements (DFARS Case 2003-D109

Places restrictions on consolidating two or more separate requirements into a single solicitation and contract.  Requires agencies to include the following in acquisition strategies that involve consolidation of requirements with a total value exceeding $5,000,000: (1) the results of market research; (2) any alternatives that would involve a lesser degree of consolidation; and (3) a determination by the senior procurement executive that the consolidation is necessary and justified.  This change implements Section 801 of the National Defense Authorization Act for Fiscal Year 2004, and is intended to ensure that decisions regarding consolidation of contract requirements are made with a view toward providing maximum practicable opportunity for small business concerns to participate in DoD procurements.

Affected subparts/sections:  Part 207 Table of Contents; 207.1; 219.2        

The Federal Register notice for this rule is available here

A Microsoft Word format document showing all additions and deletions made by this rule is here.

Personal Services Contracts (DFARS Case 2003-D103)

Provides authority for DoD to enter into personal services contracts for health care at locations outside of medical treatment facilities (such as military entrance processing stations), and for services to be provided by individuals outside the United States that directly support the mission of a DoD intelligence or counter-intelligence organization or the special operations command.  This change implements Sections 721 and 841 of the National Defense Authorization Act for Fiscal Year 2004, and enables the award of contracts for specialized services that would be impractical for DoD to obtain by other means.

Affected subparts/sections:  237.1       

The Federal Register notice for this rule is available here

A Microsoft Word format document showing all additions and deletions made by this rule is here.

Quality Control of Aviation Critical Safety Items and Related Services (DFARS Case 2003-D101)

Establishes requirements for quality control in the procurement of aviation critical safety items and the modification, repair, and overhaul of those items.  Specifies that the design control activity is responsible for qualifying and identifying aviation critical safety item  suppliers and products.  This change implements Section 802 of the National Defense Authorization Act for Fiscal Year 2004 and is intended to ensure flight safety.

Affected subparts/sections:  DFARS Table of Contents; Part 209 Table of Contents; 209.2; 217.75; Part 246 Table of Contents; 246.4; 246.5

The Federal Register notice for this rule is available here

A Microsoft Word format document showing all additions and deletions made by this rule is here.

Final Rules:

Acquisition Plans - Corrosion Prevention and Mitigation (DFARS Case 2004-D004

Adds corrosion prevention and mitigation to the areas that agencies must address in acquisition plans.  This change implements Section 1067 of the National Defense Authorization Act for Fiscal Year 2003, which requires DoD to prevent and mitigate corrosion during the design, acquisition, and maintenance of military equipment.

Affected subparts/sections:  207.1       

The Federal Register notice for this rule is available here

A Microsoft Word format document showing all additions and deletions made by this rule is here.

Definition of Terrorist Country (DFARS Case 2003-D098)

Removes Iraq from the list of terrorist countries subject to a prohibition on DoD contract awards.  This change is a result of the President's May 7, 2003, determination to suspend all sanctions against Iraq that apply to countries that have supported terrorism.

Affected subparts/sections:  252.209        

The Federal Register notice for this rule is available here

A Microsoft Word format document showing all additions and deletions made by this rule is here.

Indian Incentive Program (DFARS Case 2002-D033)

Finalizes, with changes, the interim rule published on October 1, 2003 (DFARS Change Notice 20031001), regarding the Indian Incentive Program.  The Program permits incentive payments to contractors, and subcontractors at any tier, that use Indian organizations as subcontractors.  The interim rule expanded the Program to include contracts for commercial items and to permit incentive payments for subcontracts awarded to Native Hawaiian small business concerns.  The final rule revises the incentive clause prescription to require inclusion of the clause in all contracts and subcontracts exceeding $500,000.  The rule implements DoD Appropriations Act provisions, and is intended to provide maximum practicable opportunity for Indian organizations and Native Hawaiian small business concerns to perform under DoD contracts.

Affected subparts/sections:  226.1; 252.212; 252.226

The Federal Register notice for this rule is available here

A Microsoft Word format document showing all additions and deletions made by this rule is here

Berry Amendment Changes (DFARS Case 2003-D099)

Finalizes, without change, an interim rule published on May 13, 2004 (DFARS Change Notice 20040513), to implement statutory provisions that permit exceptions to domestic source requirements in limited situations.  The exceptions apply to the acquisition of (1) food, specialty metals, and hand or measuring tools needed to support contingency operations or to fulfill other urgent requirements; and (2) waste and byproducts of cotton or wool fiber for use in the production of propellants and explosives. 

Affected subparts/sections:  None.

The Federal Register notice for this rule is available here.

DEFENSE FAR SUPPLEMENT (DFARS) Change Notice 20040810 (Click here to view the whole Change Notice)
On August 10, 2004 , DoD published the following proposed rules resulting from the DFARS Transformation Initiative. Additional information on the DFARS Transformation Initiative is available at http://www.acq.osd.mil/dpap/dars/transformation/index.htm.

Proposed Rules :

Resolving Tax Problems (DFARS Case 2003-D032) (Comments due October 12, 2004 )

Proposed change relocates DFARS text to the new DFARS companion resource, Procedures, Guidance, and Information. A proposed rule describing the purpose and structure of PGI was published on February 23, 2004 (DFARS Change Notice 20040223). The relocated text contains guidance on resolution of tax issues and information on tax relief agreements between the United States and foreign governments.

The Federal Register notice for this proposed rule is available here .

A Microsoft Word format document showing all additions and deletions proposed by this rule is here .

A Microsoft Word format document showing the text proposed for inclusion in PGI is here .

Bonds (DFARS Case 2003-D033) (Comments due October 12, 2004 )

Proposed change updates DFARS text on the use of bonds for financial protection against losses under DoD contracts. The change clarifies that fidelity and forgery bonds are authorized for use when necessary for protection of the Government or the contractor or when the investigative and claims services of a surety company are desired.

The Federal Register notice for this proposed rule is available here .

A Microsoft Word format document showing all additions and deletions proposed by this rule is here .

DEFENSE FAR SUPPLEMENT (DFARS) Change Notice 20040802
On August 2, 2004 , DoD published the following proposed rule resulting from the DFARS Transformation Initiative. Additional information on the DFARS Transformation Initiative is available at http://www.acq.osd.mil/dpap/dars/transformation/index.htm.

Proposed Rule :

Tax Procedures for Overseas Contracts (DFARS Case 2003-D031) ( Comments due October 1, 2004

Proposed change relocates DFARS text to the new DFARS companion resource, Procedures, Guidance, and Information (PGI). A proposed rule describing the purpose and structure of PGI was published on February 23, 2004 (DFARS Change Notice 20040223). The relocated text contains procedures for contracting officer use in obtaining tax relief and duty-free import privileges for acquisitions conducted in Spain and the United Kingdom . No substantive change has been made to the relocated text.

The Federal Register notice for this proposed rule is available here .

A Microsoft Word format document showing all additions and deletions proposed by this rule is here .

A Microsoft Word format document showing the text proposed for inclusion in PGI is here .

DEFENSE FAR SUPPLEMENT (DFARS) Change Notice 20040625 (click here to view the whole Change Notice)
DoD published the following interim, final, and proposed DFARS rules in the Federal Register on June 25, 2004:

Interim Rule:

Firefighting Services Contracts (DFARS Case 2003-D107) (Comments due August 24, 2004)

Permits the award of contracts for firefighting functions at military installations or facilities for periods of one year or less, if the functions would otherwise have to be performed by members of the armed forces who are not readily available due to a deployment. Implements Section 331 of the National Defense Authorization Act for Fiscal Year 2004.

Affected subparts/sections: 237.1

The Federal Register notice for this rule is available here .

A Microsoft Word format document showing all additions and deletions made by this rule is here.

Final Rules:

Designated Countries - New European Union Members (DFARS Case 2004-D006)

Applies to acquisitions subject to the Trade Agreements Act. Adds 10 new European Union member states to the list of countries whose products contracting officers can acquire without application of the Buy American Act evaluation factor. The new member states are Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, the Slovak Republic, and Slovenia. The change implements a determination of the U.S. Trade Representative that suppliers of eligible products from these countries may participate in U.S. Government procurements without discriminatory treatment.

Affected subparts/sections: 252.212; 252.225

The Federal Register notice for this rule is available here .

A Microsoft Word format document showing all additions and deletions made by this rule is here.

Information Assurance (DFARS Case 2002-D020)

Applies to contracts involving the acquisition or use of information technology. Updates requirements for the protection of information that is entered, processed, stored, displayed, or transmitted through computer systems. Implements policy issued by the National Security Telecommunications and Information Systems Security Committee.

Affected subparts/sections: Part 239 Table of Contents; 239.71; 252.239

The Federal Register notice for this rule is available here .

A Microsoft Word format document showing all additions and deletions made by this rule is here.

Use of FAR Part 12 for Performance-Based Contracting for Services (DFARS Case 2003-D111)

Deletes obsolete text on the use of FAR Part 12 (Acquisition of Commercial Items) procedures for performance-based contracting for services. The statutory authority upon which this text was based has been superseded by broader, Governmentwide authority provided in Section 1431 of the National Defense Authorization Act for Fiscal Year 2004. Interim FAR changes implementing Section 1431 were published in Item I of Federal Acquisition Circular 2001-24 on June 18, 2004 .

Affected subparts/sections: DFARS Table of Contents; Part 212 Table of Contents; 212.1; Part 237 Table of Contents; 237.6

The Federal Register notice for this rule is available here .

A Microsoft Word format document showing all additions and deletions made by this rule is here.

Proposed Rules:

Polyacrylonitrile (PAN) Carbon Fiber - Restriction to Domestic Sources (DFARS Case 2004-D002) (Comments due August 24, 2004 )

Proposed change applies to acquisitions for major systems that are not yet in development and demonstration (milestone B as defined in DoD Instruction 5000.2). Extends the ending date, from May 31, 2005, to May 31, 2006, for inclusion of PAN carbon fiber domestic source requirements in solicitations and contracts.

The Federal Register notice for this rule is available here .

A Microsoft Word format document showing all additions and deletions made by this rule is here.

DFARS Transformation

The following proposed rules are a result of DFARS Transformation, which is a major DoD initiative to dramatically change the purpose and content of the DFARS. The transformed DFARS will contain requirements of law, DoD-wide policies, delegations of FAR authorities, deviations from FAR requirements, and policies/procedures that have a significant effect on the public. Our objective is to improve the efficiency and effectiveness of the acquisition process, while allowing the acquisition workforce the flexibility to innovate. Additional information on the DFARS Transformation initiative is available at http://www.acq.osd.mil/dpap/dars/transformation/index.htm.

Payment and Billing Instructions (DFARS Case 2003-D009) (Comments due August 24, 2004)

Proposed change improves contract payment and billing instructions. The changes include: (1) addition of a clause addressing contract line item information needed in financing and interim payment requests; (2) amendment of Material Inspection and Receiving Report instructions to address electronic submissions; and (3) relocation of text addressing distribution of contracts and numbering of contract line items to the new DFARS companion resource, Procedures, Guidance, and Information (PGI). In addition, to eliminate the need for non-standard local payment clauses, PGI will contain a menu of standard payment instructions from which the contracting officer will make a selection for inclusion in Section G of the contract. A proposed rule describing the purpose and structure of PGI was published on February 23, 2004 (DFARS Change Notice 20040223).

The Federal Register notice for this rule is available here .

A Microsoft Word format document showing all additions and deletions made by this rule is here.

A Microsoft Word format document showing the text proposed for inclusion in PGI is here.

Architect-Engineer Services (DFARS Case 2003-D035) (Comments due August 24, 2004)

Proposed change applies to contracts for architect-engineer services. The changes include: (1) deletion of unnecessary text on preselection boards and selection authorities; (2) replacement of references to Standard Form 254, Architect-Engineer and Related Services Questionnaire, with references to the replacement Standard Form 330, Architect-Engineer Qualifications; and (3) relocation of text on the establishment of selection criteria to the new DFARS companion resource, Procedures, Guidance, and Information (PGI).

The Federal Register notice for this rule is available here .

A Microsoft Word format document showing all additions and deletions made by this rule is here.

A Microsoft Word format document showing the text proposed for inclusion in PGI is here.

Small Business Competitiveness Demonstration Program (DFARS Case 2003-D063) (Comments due August 24, 2004)

Proposed change applies to contracts awarded under the Small Business Competitiveness Demonstration Program. The FAR presently requires a statement on the face page of contracts to identify awards under the Program. To accommodate the use of automated systems, the proposed DFARS change specifies that, when it is not practical to mark the face page, alternate means may be used to identify a contact as an award under the Program.

The Federal Register notice for this rule is available here .

A Microsoft Word format document showing all additions and deletions made by this rule is here.

DEFENSE FAR SUPPLEMENT (DFARS) Change Notice 20040608 (click here to view the whole Change Notice)
DoD published the following interim, final, and proposed DFARS rules in the Federal Register on June 8, 2004:

Interim Rule:

Written Assurance of Technical Data Conformity (DFARS Case 2003-D104) (Comments due August 9, 2004)

Applies to contracts that require the contractor to deliver technical data to the Government. Eliminates the requirement for the contractor to provide a written statement that the delivered technical data is complete, accurate, and complies with all requirements of the contract. The change will reduce paperwork for contractors, but will not diminish the contractor's obligation to provide complete and accurate technical data that satisfies contract requirements. Implements Section 844 of the National Defense Authorization Act for Fiscal Year 2004.

Affected subparts/sections: 227.71; Part 252 Table of Contents; 252.227

The Federal Register notice for this rule is available here.

A Microsoft Word format document showing all additions and deletions made by this rule is here.

Contracting for Architect-Engineer Services (DFARS Case 2003-D105) (Comments due August 9, 2004 )

Applies to contracts for architect-engineer services for military construction or family housing projects.  Increases, from $85,000 to $300,000, the threshold below which acquisitions for these services must be set aside for small business concerns.  Implements Section 1427 of the National Defense Authorization Act for Fiscal Year 2004.

Affected subparts/sections:  219.5; 219.10

The Federal Register notice for this rule is available here.

A Microsoft Word format document showing all additions and deletions made by this rule is here.

Final Rule:


Fish, Shellfish, and Seafood Products (DFARS Case 2002-D034)

Applies to contracts for fish, shellfish, and seafood products. Revises the interim rule published on February 14, 2003 (DFARS Change Notice 20030214), that requires the acquisition of domestic fish, shellfish, and seafood, including fish, shellfish, and seafood manufactured or processed or contained in foods manufactured or processed in the United States. Clarifies that fish, shellfish and seafood delivered under a DoD contract must be taken from the sea by U.S.-flag vessels or obtained from fishing in the United States. Implements Section 8136 of the DoD Appropriations Act for Fiscal Year 2003 and Section 8118 of the DoD Appropriations Act for Fiscal Year 2004.

Affected subparts/sections:  225.70; 252.212; 252.225

The Federal Register notice for this rule is available here.

A Microsoft Word format document showing all additions and deletions made by this rule is here.


Follow-On Production Contracts for Products Developed Pursuant to Prototype Projects (DFARS Case 2002-D023)

Applies to production contracts for DoD weapons and weapon systems. Authorizes the contracting officer to award a follow-on production contract without competition, if the "other transaction" agreement for the prototype project provides for a follow-on production contract and meets certain other statutory requirements. The contracting officer may continue with the existing contractor or may determine that further competition is appropriate. Implements Section 822 of the National Defense Authorization Act for Fiscal Year 2002.

Affected subparts/sections:  206.0

The Federal Register notice for this rule is available here.

A Microsoft Word format document showing all additions and deletions made by this rule is here.

Production Surveillance and Reporting (DFARS Case 2002-D015)

Eliminates requirements for a contract administration office to perform production surveillance on contractors that have only Criticality Designator C (low-urgency) contracts, and for monitoring of progress on any Criticality Designator C contract, unless production surveillance or contracting monitoring is specifically requested by the contracting officer.  The change will permit proper allocation of contract administration resources to critical and high-risk contracts.

Affected subparts/sections:  242.11

The Federal Register notice for this rule is available here.

A Microsoft Word format document showing all additions and deletions made by this rule is here.

Proposed Rules:

The following proposed rules are a result of DFARS Transformation, which is a major DoD initiative to dramatically change the purpose and content of the DFARS. The transformed DFARS will contain requirements of law, DoD-wide policies, delegations of FAR authorities, deviations from FAR requirements, and policies/procedures that have a significant effect on the public. Our objective is to improve the efficiency and effectiveness of the acquisition process, while allowing the acquisition workforce the flexibility to innovate. Additional information on the DFARS Transformation initiative is available at:
http://www.acq.osd.mil/dpap/dars/transformation/index.htm.

Reporting Contract Performance Outside the United States (DFARS Case 2004-D001) (Comments due August 9, 2004)

Proposed change applies to solicitations and contracts with a value exceeding $500,000. Clarifies requirements for contractor reporting of contract performance outside the United States; and establishes two separate clauses to eliminate confusion between two reporting requirements presently contained in one clause. Relocates text pertaining to contracting officer distribution of reports to the new DFARS companion resource, Procedures, Guidance, and Information (PGI). A proposed rule describing the purpose and structure of PGI was published on February 23, 2004 (DFARS Change Notice 20040223).

The Federal Register notice for this rule is available here.

A Microsoft Word format document showing all additions and deletions made by this rule is here.

A Microsoft Word format document showing the text proposed for inclusion in PGI is here.

Acquisition of Commercial Items (DFARS Case 2003-D074) (Comments due August 9, 2004 )

Proposed change applies to contracts for the acquisition of commercial items.  Deletes unnecessary text pertaining to structuring of contracts; and updates a FAR reference.

The Federal Register notice for this rule is available here.

A Microsoft Word format document showing all additions and deletions made by this rule is here.


DEFENSE FAR SUPPLEMENT (DFARS) Change Notice 20040513 (click here to view the whole Change Notice)

DoD published the following interim, final, and proposed DFARS rules in the Federal Register on May 13, 2004:

Interim Rule:

Berry Amendment Changes (DFARS Case 2003-D099) (Comments due July 12, 2004)

Provides exceptions to requirements for the acquisition of certain items from domestic sources. Contracting officers do not need to apply domestic content restrictions to the acquisition of (1) food, specialty metals, and hand or measuring tools needed to support contingency operations or to fulfill other urgent requirements; and (2) waste and byproducts of cotton or wool fiber for use in the production of propellants and explosives. These changes implement Sections 826 and 827 of the National Defense Authorization Act for Fiscal Year 2004.

Affected subparts/sections: 225.70; 252.212; 252.225

The Federal Register notice for this rule is available here.

A Microsoft Word format document showing all additions and deletions made by this rule is here.

Final Rules:

Multiyear Procurement Authority for Environmental Services for Military Installations (DFARS Case 2003-D004)

Finalizes, without change, the interim rule published on July 22, 2003 (DFARS Change Notice 20030722), to authorize the use of multiyear contracts for environmental remediation services for military installations .

Affected subparts/sections: None.

The Federal Register notice for this rule is available here.

Technical Amendments

Updates references contained in the clauses at DFARS 252.212-7001 and 252.225-7016.

Affected subparts/sections: 252.212; 252.225

The Federal Register notice for this rule is available here.

A Microsoft Word format document showing all additions and deletions made by this rule is here.

Proposed Rule:

DoD Pilot Mentor- Protégé Program (DFARS Case 2003-D013) (Comments due July 12, 2004 )

Proposes changes to the DoD Pilot Mentor-Protégé Program to authorize the Director, Small and Disadvantaged Business Utilization (SADBU), of each military department or defense agency to approve contractors as mentor firms and to approve mentor-protégé agreements. The Director, Office of the Secretary of Defense, SADBU, will retain policy and oversight responsibility and will remain the principal budget authority for the Program. The proposed changes also revise the structure of DFARS Appendix I for clarity and to reflect current Program requirements.

The Federal Register notice for this rule is available here.

A Microsoft Word format document showing all additions and deletions proposed by this rule is here.

DEFENSE FAR SUPPLEMENT (DFARS) Change Notice 20040423 (click here to view the whole Change Notice)

DoD published the following proposed rules in the Federal Register on April 23, 2004. The proposed rules are a result of DFARS Transformation, which is a major DoD initiative to dramatically change the purpose and content of the DFARS. Additional information on the DFARS Transformation initiative is available at http://www.acq.osd.mil/dpap/dars/transformation/index.htm

Proposed Rule:

Threshold for Small Business Specialist Review (DFARS Case 2003-D060) (Comments due June 22, 2004)

Proposes to eliminate requirements for small business specialists to review proposed acquisitions that are (1) within the scope and under the terms of the existing contract; or (2) under $100,000 and totally set aside for small business concerns. Also proposes to relocate text addressing the functions of small business specialists to the new DFARS companion resource, Procedures, Guidance, and Information (PGI). A proposed rule describing the purpose and structure of PGI was published on February 23, 2004 (DFARS Change Notice 20040223; DFARS Case 2003-D090).

The Federal Register notice for this rule is available here .

A Microsoft Word format document showing all additions and deletions made by this rule is here .

A Microsoft Word format document showing the text proposed for inclusion in PGI is here.

Proposed Rule:

Small Disadvantaged Businesses and Leader Company Contracting (DFARS Case 2003-D092) (Comments due June 22, 2004)

Proposes to lower the approval level for subcontracting plans that contain a small disadvantaged business goal of less than five percent, from two levels above the contracting officer to one level above the contracting officer. Also proposes to delete text addressing the participation of small disadvantaged business concerns in leader company contracting. DoD rarely uses leader company contracting and, instead, provides incentives for major DoD contractors to assist small disadvantaged business concerns through the DoD Pilot Mentor-Protégé Program.

The Federal Register notice for this rule is available here .

A Microsoft Word format document showing all additions and deletions made by this rule is here .

DEFENSE FAR SUPPLEMENT (DFARS) Change Notice 20040323 (click here to view the whole Change Notice)

DoD published the following final and proposed rules in the Federal Register on March 23, 2004:

Interim Rule:

Contract Period for Task and Delivery Order Contracts (DFARS Case 2003-D097)

Establishes a 5-year limitation on the contract period for a task order or delivery order contract awarded by DoD under the authority of 10 U.S.C. 2304a; and clarifies that the total contract period includes all options or modifications. The rule implements Section 843 of the National Defense Authorization Act for Fiscal Year 2004 (Public Law 108-136). Additional information regarding implementation of this rule is available here .

Affected subparts/sections: Part 216 Table of Contents; 216.5; Part 217 Table of Contents; 217.2

The Federal Register notice for this rule is available here . The notice requests public comments, which are due by May 24, 2004 .

A Microsoft Word format document showing all additions and deletions made by this rule is here .

Final Rules:

Buy-to-Budget Acquisition of End Items (DFARS Case 2002-D036)

Finalizes, without change, the interim rule published on July 22, 2003 (DFARS Change Notice 20030722). The rule a uthorizes DoD to acquire a higher quantity of an end item than the quantity specified in law, under certain conditions. This rule i mplements Section 801 of the National Defense Authorization Act for Fiscal Year 2003 (Public Law 107-314).

Affected subparts/sections: None

The Federal Register notice for this rule is available here .

Multiyear Contracting Authority Revisions (DFARS Case 2002-D041)

Finalizes, without change, the interim rule published on August 21, 2003 (DFARS Change Notice 20030821). The rule restricts the use of multiyear contracts for supplies to only those for complete and usable end items, and restricts the use of advance procurement to only those long-lead items necessary in order to meet a planned delivery schedule for complete major end items. This rule implements Section 820 of the National Defense Authorization Act for Fiscal Year 2003 (Public Law 107-314).

Affected subparts/sections: None

The Federal Register notice for this rule is available here .

Proposed Rule:

Contractors Accompanying a Force Deployed (DFARS Case 2003-D087)

Proposes policy and a contract clause to address situations that require contractor employees to accompany a force engaged in contingency, humanitarian, peacekeeping, or combat operations outside the United States . The proposed changes will enable the uniform treatment of contractors that accompany a deployed force, and will enable combatant commanders to rapidly adjust contract requirements in response to changing conditions on the battlefield.

The Federal Register notice for this rule is available here .

The notice requests public comments, which are due by May 24, 2004 .

A Microsoft Word format document showing all additions and deletions proposed by this rule is here .

A Microsoft Word format document showing the text proposed for inclusion in DFARS Procedures, Guidance, and Information (PGI) is here .  

DEFENSE FAR SUPPLEMENT (DFARS) Change Notice 20040223 (click here to view the whole Change Notice)

DoD published the following final and proposed rules in the Federal Register on February 23, 2004:

Final Rule:

Memorandum of Understanding - Sweden (DFARS Case 2003-D089)

Implements a determination of the Deputy Secretary of Defense that it is inconsistent with the public interest to apply the restrictions of the Buy American Act to the acquisition of defense equipment produced or manufactured in Sweden, based on a memorandum of understanding between the United States and Sweden. DFARS 225.872-1 is amended to add Sweden to the list of countries for which DoD has made such public interest determinations, and to remove Sweden from the list of countries for which exemption from the Buy American Act is permitted only on a purchase-by purchase basis.

Affected subparts/sections: 225.8

The Federal Register notice for this rule is available here.

A Microsoft Word format document showing all additions and deletions made by this rule is here.

PROPOSED RULES - DFARS TRANSFORMATION

The following 14 proposed rules are a result of DFARS Transformation, which is a major DoD initiative to dramatically change the purpose and content of the DFARS. The transformed DFARS will contain only requirements of law, DoD-wide policies, delegations of FAR authorities, deviations from FAR requirements, and policies/procedures that have a significant effect on the public. The objective is to improve the efficiency and effectiveness of the acquisition process, while allowing the acquisition workforce the flexibility to innovate. Additional information on the DFARS Transformation initiative is available at http://www.acq.osd.mil/dpap/dars/transformation/index.htm.

DFARS Change Notice 20040113

DoD made the following changes to the DFARS on January 13, 2004: 

Interim Rule:

Free Trade Agreements - Chile and Singapore (DFARS Case 2003-D088)

Implements new Free Trade Agreements with Chile and Singapore, as approved by Congress in the United States-Chile Free Trade Agreement Implementation Act and the United States-Singapore Free Trade Agreement Implementation Act.  The new Free Trade Agreements waive the applicability of the Buy American Act for some foreign supplies and construction materials from Chile and Singapore, and specify procurement procedures designed to ensure fairness.  Applicable changes to the FAR were published in Federal Acquisition Circular 2001-19 on January 7, 2004.  These changes affect contracting officers that buy construction, services, or supplies in the categories listed at DFARS 225.401-70. 

The threshold for applicability of the new Free Trade Agreements with Chile and Singapore is $58,550 for supplies and services, and $6,725,000 for construction.  The trade agreements clauses at DFARS 252.225-7021, 252.225-7036, and 252.225-7045 are revised to include definitions of "Free Trade Agreement country" and "Free Trade Agreement country end product" or "Free Trade Agreement country construction material" instead of "NAFTA country" and "NAFTA country end product" or "NAFTA country construction material."  The Free Trade Agreement countries are Canada, Chile, Mexico, and Singapore. 

Affected subparts/sections:  212.3; 213.3; Part 225 Table of Contents; 225.0; 225.4; 225.5; 225.9; 225.11; 225.75; Part 252 Table of Contents; 252.212; 252.225

The Federal Register notice for this rule is available here.

A Microsoft Word format document showing all additions and deletions made by this rule is here.

Final Rules:

Provisional Award Fee Payments (DFARS Case 2001-D013) 

Provides policy and guidance for using provisional award fees under cost-plus-award-fee contracts.  This tool, in appropriate circumstances, may be an effective incentive mechanism.  Acquisition teams should carefully evaluate the need for this tool and the potential benefits as part of acquisition strategy planning processes.  Proper use of provisional award fees is expected to improve contractor cash flow, foster a healthy contractual relationship between the Government and the contractor, and further the benefits of the award fee incentive. 

A training module on the use of provisional award fees is available on the Defense Acquisition University website at http://www.dau.mil, under "Continuous Learning"/"Continuous Learning Modules"/"Self-Paced Modules"/"Provisional Award Fee Awareness Module".

These changes were published in the Federal Register on November 14, 2003, and in DFARS Change Notice 20031114, with an effective date of January 13, 2004. 

Affected subparts/sections:  216.4

The Federal Register notice for this rule is available here.

A Microsoft Word format document showing all additions and deletions made by this rule is here.

Technical Amendments

Updates activity names and Internet addresses.

Affected subparts/sections:  202.1; 232.70; 252.232

The Federal Register notice for this rule is available here.

A Microsoft Word format document showing all additions and deletions made by this rule is here.

DFARS Change Notice 20040101

DoD published the following DFARS change in the Federal Register on December 30, 2003, to become effective on January 1, 2004:

Interim Rule:

Unique Item Identification and Valuation (DFARS Case 2003-D081)

Requires contractors to provide unique identification for items delivered to DoD, through the use of item identification marking.  Also requires contractors to identify the Government's unit acquisition cost for all items delivered.  Unique identification and valuation will enable DoD to consistently capture the value of the items it buys, control these items during their use, and combat counterfeiting of parts.  Additional information on DoD's unique identification policy can be found at http://www.acq.osd.mil/uid.

This DFARS rule replaces the interim rule published on October 10, 2003 (DFARS Change Notice 20031010), and applies to all solicitations issued on or after January 1, 2004

Affected subparts/sections:  Part 211 Table of Contents; 211.2; 212.3; Part 252 Table of Contents; 252.211

The Federal Register notice for this rule is available here.  The notice solicits public comments, which are due by March 1, 2004.

A Microsoft Word format document showing all additions and deletions made by this rule is here.

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