DEFENSE FAR SUPPLEMENT (DFARS) Change Notice 20031114

 

DoD published the following DFARS changes in the Federal Register on November 14, 2003: 

 

Interim Rule:

 

Central Contractor Registration (DFARS Case 2003-D040)

 

Removes DFARS policy on Central Contractor Registration (CCR) that duplicates FAR policy published as Item I of FAC 2001-16 on October 1, 2003.  DoD’s automated systems presently rely on the use of Commercial and Government Entity (CAGE) codes to facilitate accurate and timely contract payments.  Therefore, DoD-unique CAGE code requirements must be retained in the DFARS.  An alternate paragraph is provided at DFARS 252.204-7004 for use with the clause at FAR 52.204-7, Central Contractor Registration, to address the need for CAGE code information in the CCR database.  Public comments on these interim DFARS changes are due by January 13, 2004.

 

Affected subparts/sections:  DFARS Table of Contents; Part 204 Table of Contents; 204.2; 204.6; 204.9; 204.11; 204.72; 204.73; 212.3; Part 213 Table of Contents; 213.1; Part 252 Table of Contents; 252.204   

 

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:

 

DoD Activity Address Codes in Contract Numbers (DFARS Case 2003-D005) 

 

Requires use of a contracting office’s DoD activity address code (DoDAAC) in the first six positions of a solicitation or contract number, instead of the DoD activity address number (DoDAAN) found in DFARS Appendix G.  This new numbering system took effect on October 1, 2003, in accordance with Defense Procurement and Acquisition Policy and Acquisition Policy memoranda dated June 9, 2003, and October 2, 2003 (available at http://www.acq.osd.mil/dpap/policy/policyvault/policy.jsp).  No change is required for existing solicitation and contract numbers.  Activities whose DoDAAC and DoDAAN are identical will continue to use the same characters in the first six positions of solicitation and contract numbers. 

 

Appendix G is removed in its entirety from the DFARS, as a result of a recommendation of the DFARS Transformation Task Force.  The two-position order codes from DFARS Appendix G, that contracting offices use when placing an order against another activity’s contract or agreement, are now available at a separate location on the Defense Acquisition Regulations website at http://www.acq.osd.mil/dpap/dars/dfars/.

 

For reference purposes, archived versions of Appendix G are available in the HTML format of the DFARS at http://www.acq.osd.mil/dpap/dars/dfars/ by using the “Prior Version” option shown at the beginning of each Appendix G part. 

 

DoDAACs are maintained by the Defense Logistics Agency (DLA).  Registration through the DLA website at https://www.daas.dla.mil/daashome/ is required to gain access to DLA’s database.  While awaiting completion of the registration process, the following Air Force website is suggested as an alternate source for DoDAAC information:  https://dodaac.wpafb.af.mil.

  

Affected subparts/sections:  DFARS Table of Contents; Part 204 Table of Contents; 204.70; Appendix G      

 

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.

 

Purchase of Federal Prison Industries Products (DFARS Case 2002-D003) 

 

Updates and clarifies policy on purchasing products from Federal Prison Industries (FPI).  The changes—

 

     (1) Clarify requirements for conducting market research before purchasing a product listed in the FPI Schedule;

 

     (2) Clarify requirements for use of competitive procedures, to include the use of small business set-asides and multiple award schedules, if an FPI product is found to be noncomparable to products available from the private sector;

 

     (3) Specify that a contracting officer’s comparability determination is not subject to the arbitration procedures of FAR 8.605;

     (4) Specify that a DoD contractor may not be required to use FPI as a subcontractor; and

 

     (5) Prohibit the award of a contract to FPI that would allow an inmate worker access to classified or sensitive information. 

 

     These changes—

 

     (1) Implement Section 819 of the National Defense Authorization Act for Fiscal Year 2003 and further implement Section 811 of the National Defense Authorization Act for Fiscal Year 2002;

 

     (2) Become effective 30 days after the date of publication, as required by Section 819 of the National Defense Authorization Act for Fiscal Year 2003; and

 

     (3) Apply to solicitations issued on or after December 15, 2003, and will be incorporated into the DFARS on December 15, 2003.  

 

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.

 

An August 15, 2003, information paper addressing recent FAR and DFARS changes on the purchase of FPI products is available at http://www.acq.osd.mil/dpap/Docs/FederalPrisonIndustriesInc.pdf.

 

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”.

 

The DFARS changes in this rule apply to solicitations issued on or after January 13, 2004, and will be incorporated into the DFARS on January 13, 2004.  Contracting officers may, at their discretion, apply the DFARS changes to solicitations issued before January 13, 2004, provided award of the resulting contract(s) occurs on or after January 13, 2004.   Contracting officers may also, at their discretion, apply the DFARS changes to any existing contract with appropriate consideration.

 

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.