DEFENSE FAR SUPPLEMENT (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.