DFARS Change Notice 20021025

 

DoD published 1 proposed and 5 final DFARS rules in the Federal Register on October 25, 2002.  The final rules apply to solicitations issued on or after October 25, 2002, except as otherwise permitted by FAR 1.108(d) (but see additional applicability requirements for DFARS Case 2001-D017).  The proposed rule solicits public comments, which are due by December 24, 2002.  A summary of each rule follows:

 

Final Rules:

 

Competition Requirements for Purchase of Services Under Multiple Award Contracts (DFARS Case 2001-D017)

 

Changes the DFARS to strengthen procedures for competition when DoD or other Federal agencies place orders exceeding $100,000 for services under Federal Supply Schedules and multiple award contracts to meet DoD requirements.  The final rule implements Section 803 of the National Defense Authorization Act for Fiscal Year 2002.  These procedures apply to orders placed on or after October 25, 2002, regardless of whether the multiple award contracts were awarded before, on, or after that date.  

 

DoD has developed training tools on the procedures in this rule and will provide training in the Washington, DC, metropolitan area.  DoD and civilian agency personnel that place, or develop requirements for, orders under multiple award contracts using DoD funds, and companies that sell services through multiple award contracts, should seek training on these procedures.  Please visit the Defense Procurement and Acquisition Policy Home Page, “Interest Items” drop-down box, for Section 803 training materials and lists of training opportunities at http://www.acq.osd.mil/dpap.

 

Affected subparts/sections:  DFARS Table of Contents; Part 208 Table of Contents; 208.4; Part 216 Table of Contents; 216.5    

 

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.

 

Enterprise Software Agreements (DFARS Case 2000-D023)

 

Changes the DFARS to add procedures implementing DoD’s Enterprise Software Initiative (ESI) requirements.  ESI, sponsored by the DoD Chief Information Officer requires requiring officials and contracting officers to first review established Enterprise Software Agreements (ESAs) with companies to obtain favorable terms and pricing for commercial software and related services.  ESI does not dictate the products or services to be acquired and provides flexibility to use other vehicles if the ESA doesn’t represent best value. 

 

Additional information on the Enterprise Software Initiative can be found at http://www.don-imit.navy.mil/esi.

 

Affected subparts/sections:  DFARS Table of Contents; Part 208 Table of Contents; 208.0; 208.74; Part 239 Table of Contents; 239.1; 251.1; 252.251

 

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 Officer Qualifications (DFARS Case 2002-D021)

 

Changes the DFARS to add requirements for new entrants into the contracting field in order to serve as a contracting officer with authority to award or administer contracts exceeding the simplified acquisition threshold.  Included is a requirement for a baccalaureate degree and 24 semester credit hours of study in a business-related discipline.  The rule implements Section 824 of the National Defense Authorization Act for Fiscal Year 2002.

 

Affected subparts/sections:  201.6

 

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.

 

Performance-Based Contracting Using FAR Part 12 Procedures (DFARS Case 2000-D306)

 

Revises and finalizes the interim rule published on December 6, 2001 (DFARS Change Notice 20011206) to clarify applicability of provisions for utilizing Indian Organizations and Indian-Owned Economic Enterprises.  The previous changes permitted the use of FAR Part 12 (Acquisition of Commercial Items) procedures for firm-fixed-price, performance-based service contracts of $5 million or less that are awarded on or before October 30, 2003, if certain conditions are met.  The additional changes in the final rule clarify that the clause at 252.226-7001, Utilization of Indian Organizations and Indian-Owned Economic Enterprises – DoD Contracts, must be included in performance-based service contracts that are awarded using FAR Part 12 procedures.  The clause at 252.226-7001 provides for incentive payments to contractors, and subcontractors at any tier, that use Indian organizations and Indian-owned economic enterprises as subcontractors.

 

Affected subparts/sections:  212.1; 226.1

 

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.

 

Caribbean Basin Country – Honduras (DFARS Case 2002-D028)

 

Changes the DFARS clauses at 252.225-7007, Buy American Act—Trade Agreements—Balance of Payments Program, and 252.225-7021, Trade Agreements, to add Honduras to the definition of “Caribbean Basin Country.”  The rule implements a determination of the United States Trade Representative to treat the products of Honduras as eligible products in acquisitions subject to the Trade Agreements Act.

 

Affected subparts/sections:  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:

 

Transportation of Supplies by Sea – Commercial Items

(DFARS Case 2002-D019)

 

Proposes to change the list of clauses at DFARS 252.212-7001, Contract Terms and Conditions Required to Implement Statutes or Executive Orders Applicable to Defense Acquisitions of Commercial Items, to add Alternate III of 252.247-7023, Transportation of Supplies by Sea.  This change will minimize transportation information required from contractors under contracts at or below the simplified acquisition threshold when acquiring commercial items. 

 

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.

 

In addition, DoD published the following proposed rule in the Federal Register on October 7, 2002.  Comments are due by December 6, 2002:

 

Foreign Acquisition (DFARS Case 2002-D009)

 

Proposes revisions to DFARS Part 225, Foreign Acquisition, and associated provisions and clauses.  The rule—

 

·        Provides streamlined procedures for evaluating foreign offers when acquiring supplies, and adds procedures for evaluating foreign offers in acquisitions in which price is not the determining factor.

 

·        Changes the definition of “qualifying country end product” to permit the qualifying country manufacturing the product to use components from any other qualifying country.

 

·        Lowers the required approval levels for determinations of nonavailability under the Buy American Act.

 

·        Lowers the required approval levels for individual public interest determinations for acquisition of end products from qualifying countries.

 

·        Provides that the Government will evaluate duty only if it is to be paid.  Except for qualifying country supplies or eligible end products, the contractor will request duty-free entry only on foreign supplies for which the contractor estimates that duty will exceed $200 per unit (end product or component).  One duty-free entry clause replaces five existing clauses.

 

·        Moves restrictions on contracting with firms owned or controlled by the government of a terrorist country or other foreign governments from Part 209, Contractor Responsibility, to Part 225, Foreign Acquisition.

 

·        Deletes obsolete text and clauses relating to outdated appropriations act restrictions, resulting in the elimination of four clauses.

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.