[Federal Register: November 24, 2010 (Volume 75, Number 226)]
[Rules and Regulations]               
[Page 71564-71565]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]



Defense Acquisition Regulations System

48 CFR Part 242

RIN 0750-AG77

Defense Federal Acquisition Regulation Supplement; Contractor 
Insurance/Pension Review (DFARS Case 2009-D025)

AGENCY: Defense Acquisition Regulations System, Department of Defense 

ACTION: Final rule.


SUMMARY: The Department of Defense (DoD) is issuing a final rule to 
remove and relocate the requirements for conducting a Contractor 
Insurance/Pension Review from Procedures, Guidance, and Information 
(PGI) to the Defense Federal Acquisition Regulation Supplement (DFARS).

DATES: Effective Date: November 24, 2010.

FOR FURTHER INFORMATION CONTACT: Ms. Mary Overstreet, 703-602-0311.


I. Background

    This final rule relocates requirements for Contractor Insurance/
Pension Review to DFARS 242.7302 from PGI 242.7302.
    DoD published a proposed rule at 75 FR 33237 on June 11, 2010, and 
the public comment period closed on August 10, 2010. No public comments 
were received. Therefore, DoD is making no changes to the final rule.

II. Executive Order 12866

    This rule was not subject to Office of Management and Budget review 
under Executive Order 12866, dated September 30, 1993. This rule is not 
a major rule under 5 U.S.C. 804.

III. Regulatory Flexibility Act

    DoD certifies that this final rule will not have a significant 
economic impact on a substantial number of small entities within the 
meaning of the Regulatory Flexibility Act, 5 U.S.C. 601, et seq. The 
rule is consistent with existing policy that a CIPR is only required 
for those contractors that have $50 million in qualifying sales to the 
Government. The rule merely relocates the requirements for CIPR from 
the PGI to the DFARS.

IV. Paperwork Reduction Act

    The Paperwork Reduction Act (Pub. L. 96-511) applies because 
information collection requirements in the proposed rule at DFARS 
subpart 242.73 are currently approved under Office of Management and 
Budget Control Number 0704-0250. Relocating the requirement has no 
impact on the information collection requirement.

List of Subjects in 48 CFR Part 242

    Government procurement.

Ynette R. Shelkin,
Editor, Defense Acquisition Regulations System.

Therefore, 48 CFR part 242 is amended as follows:


1. The authority citation for 48 CFR part 242 continues to read as 

[[Page 71565]]

    Authority: 41 U.S.C. 421 and 48 CFR chapter 1.

2. Revise section 242.7302 to read as follows:

242.7302  Requirements.

    (a)(1) An in-depth CIPR as described at DFARS 242.7301(a)(1) shall 
be conducted only when--
    (i) A contractor has $50 million of qualifying sales to the 
Government during the contractor's preceding fiscal year; and
    (ii) The ACO, with advice from DCMA insurance/pension specialists 
and DCAA auditors, determines a CIPR is needed based on a risk 
assessment of the contractor's past experience and current 
    (2) Qualifying sales are sales for which cost or pricing data were 
required under 10 U.S.C. 2306a, as implemented in FAR 15.403, or that 
are contracts priced on other than a firm-fixed-price or fixed-price 
with economic price adjustment basis. Sales include prime contracts, 
subcontracts, and modifications to such contracts and subcontracts.
    (b) A special CIPR that concentrates on specific areas of a 
contractor's insurance programs, pension plans, or other deferred 
compensation plans shall be performed for a contractor (including, but 
not limited to, a contractor meeting the requirements in paragraph (a) 
of this section) when any of the following circumstances exists, but 
only if the circumstance(s) may result in a material impact on 
Government contract costs:
    (1) Information reveals a deficiency in the contractor's insurance/
pension program.
    (2) The contractor proposes or implements changes in its insurance, 
pension, or deferred compensation plans.

[FR Doc. 2010-29494 Filed 11-23-10; 8:45 am]