DFARS Change Notice 20001213

The DFARS has been revised by 1 interim rule and 5 final rules published on December 13, 2000, as follows:

Interim Rule

Domestic Source Restrictions—Ball and Roller Bearings and Vessel Propellers (DFARS Case 2000-D301)

This interim rule amends the DFARS to implement Section 8064 of the DoD Appropriations Act for Fiscal Year 2001 (Public Law 106-259) and Section 805 of the DoD Authorization Act for Fiscal Year 2001 (Public Law 106-398).  Section 8064 of Public Law 106-259 restricts the acquisition of ball and roller bearings and vessel propellers to those produced by a domestic source and of domestic origin.  The restriction does not apply to the purchase of commercial items, except ball or roller bearings purchased as end items.  Section 805 of Public Law 106-398 extends the restriction on acquisition of ball and roller bearings at 10 U.S.C. 2534 through fiscal year 2005.

Affected subparts/sections:  212.5; 225.70; 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

Profit Incentives to Produce Innovative New Technologies (DFARS Case 2000-D300)

This final rule implements Section 813 of the DoD Authorization Act for Fiscal Year 2000 (Public Law 106-65).  The rule amends the weighted guidelines method of profit computation at DFARS 215.404-71 to combine the management and cost control elements of the performance risk factor; to establish a new “technology incentive” range for technical risk; and to slightly modify some of the cost control standards.  In addition, the rule amends DFARS 215.404-4(b) to clarify that departments and agencies must use a structured approach for developing a prenegotiation profit or fee objective on any negotiated contract action when cost or pricing data is obtained.

Affected subpart:  215.4

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.

North American Industry Classification System (DFARS Case 2000-D015)

The interim rule published on August 17, 2000 (Change Notice 20000817) is converted to a final rule without change.  The interim rule amended the DFARS to convert programs based on the Standard Industrial Classification system to the North American Industry Classification System.

Affected subparts/sections:  None

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.

Polyacrylonitrile (PAN) Carbon Fiber (DFARS Case 2000-D017)

This final rule revises DFARS 225.7103-1 and 225.7103-3 to phase out restrictions on the acquisition of PAN carbon fiber from foreign sources.  The DFARS presently requires U.S. or Canadian manufacturers or producers for PAN carbon fiber included in all new major systems.  This final rule phases out the requirement over the 5-year period ending May 31, 2005.

Affected subpart:  225.71

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.

Material Management and Accounting Systems (DFARS Case 2000-D003)

This final rule revises the material management and accounting system (MMAS) requirements at DFARS 242.72 and 252.242-7004.  The rule—

 (1)  Requires use of the MMAS clause only in cost-reimbursement contracts and fixed-price contracts with progress payments made on the basis of costs;

 (2)  Eliminates the requirement for inclusion of the MMAS clause in contracts with small businesses, educational institutions, and nonprofit organizations;

 (3)  Replaces the requirement for an MMAS "demonstration" with a requirement for the contractor to have policies, procedures, and operating instructions that adequately describe its MMAS and to provide results of internal compliance reviews to the Government; and

 (4)  Makes the dollar threshold for conducting an MMAS review consistent with the threshold for conducting a Contractor Insurance/Pension Review ($40 million of qualifying sales to the Government during the contractor’s preceding fiscal year).

Affected subparts/sections:  Part 242 Table of Contents; 242.72; 252.242

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.

Authority to Indemnify Against Unusually Hazardous or Nuclear Risks (DFARS Case 2000-D025)

This final rule amends DFARS Part 250, Extraordinary Contractual Actions, to clarify that the Under Secretary of Defense (Acquisition, Technology, and Logistics) may indemnify a contractor against unusually hazardous or nuclear risks, in accordance with the acquisition authority provided the Under Secretary at 10 U.S.C. 133.

Affected subpart:  250.2

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.

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