[Federal Register: September 30, 2005 (Volume 70, Number 189)]
[Rules and Regulations]               
[Page 57193-57194]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]



48 CFR Part 237

[DFARS Case 2003-D042]

Defense Federal Acquisition Regulation Supplement; Advisory and 
Assistance Services

AGENCY: Department of Defense (DoD).

ACTION: Final rule.


SUMMARY: DoD has issued a final rule amending the Defense Federal 
Acquisition Regulation Supplement (DFARS) to update text pertaining to 
the acquisition of advisory and assistance services. This rule is a 
result of a transformation initiative undertaken by DoD to dramatically 
change the purpose and content of the DFARS.

EFFECTIVE DATE: September 30, 2005.

FOR FURTHER INFORMATION CONTACT: Ms. Robin Schulze, Defense Acquisition 
Regulations Council, OUSD (AT&L) DPAP (DAR), IMD 3C132, 3062 Defense 
Pentagon, Washington, DC 20301-3062. Telephone (703) 602-0326; 
facsimile (703) 602-0350. Please cite DFARS Case 2003-D042.


A. Background

    DFARS Transformation is a major DoD initiative to dramatically 
change the purpose and content of the DFARS. The objective is to 
improve the efficiency and effectiveness of the acquisition process, 
while allowing the acquisition workforce the flexibility to innovate. 
The transformed DFARS will contain only requirements of law, DoD-wide 
policies, delegations of FAR authorities, deviations from FAR 
requirements, and policies/procedures that have a significant effect 
beyond the internal operating procedures of DoD or a significant cost 
or administrative impact on contractors or offerors. Additional 
information on the DFARS Transformation initiative is available at 

    This final rule is a result of the DFARS Transformation initiative. 
The rule--
     Deletes the definition of ``advisory and assistance 
services'' at DFARS 237.201. The definition is used primarily for 
budget reporting under 10 U.S.C. 2212, and is adequately addressed in 
financial management regulations.
     Deletes obsolete text on contracting for engineering and 
technical services at DFARS 237.203. This text was based on DoD 
Directive 1130.2, Engineering and Technical Sevices--Management 
Control, which was cancelled in 1990.
     Deletes a reference listing of DoD publications that 
govern the conduct of audits at DFARS 237.270. This list has been 
relocated to the new DFARS companion resource, Procedures, Guidance, 
and Information (PGI). Additional information on PGI is available at 

     Deletes obsolete text on management controls and 
requesting activity responsibilities at DFARS 237.271 and 237.272. This 
text was based on OMB Circular A-120, Guidelines for the Use of 
Advisory and Assistance Services, which was rescinded in 1993. OMB 
Circular A-120 was replaced by OFPP Policy Letter 93-1, Management 
Oversight of Service Contracting, which is implemented in FAR Subpart 
    DoD published a proposed rule at 70 FR 8562 on February 22, 2005. 
DoD received no comments on the proposed rule. Therefore, DoD has 
adopted the proposed rule as a final rule without change.
    This rule was not subject to Office of Management and Budget review 
under Executive Order 12866, dated September 30, 1993.

B. 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., 
because the rule makes no significant change to DoD policy for the 
acquisition of advisory and assistance services.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the rule does 
not impose any information collection requirements that require the 
approval of the Office of Management and Budget under 44 U.S.C. 3501, 
et seq.

List of Subjects in 48 CFR Part 237

    Government procurement.

Michele P. Peterson,
Editor, Defense Acquisition Regulations System.

Therefore, 48 CFR Part 237 is amended as follows:


1. The authority citation for 48 CFR Part 237 continues to read as 

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

237.201 and 237.203  [Removed]

2. Sections 237.201 and 237.203 are removed.

3. Section 237.270 is revised to read as follows:

237.270  Acquisition of audit services.

    (a) General policy. (1) Do not contract for audit services unless--
    (i) The cognizant DoD audit organization determines that expertise 
required to perform the audit is not available within the DoD audit 
organization; or
    (ii) Temporary audit assistance is required to meet audit reporting 
requirements mandated by law or DoD regulation.
    (2) See PGI 237.270 for a list of DoD publications that govern the 
conduct of audits.
    (b) Contract period. Except in unusual circumstances, award 
contracts for recurring audit services for a 1-year period with at 
least 2 option years.
    (c) Approvals. Do not issue a solicitation for audit services 
unless the requiring activity provides evidence that the cognizant DoD 
audit organization has approved the statement of work. The requiring 
agency shall obtain the same evidence of approval for subsequent 
material changes to the statement of work.
    (d) Solicitation provisions and contract clauses. (1) Use the 
provision at

[[Page 57194]]

252.237-7000, Notice of Special Standards of Responsibility, in 
solicitations for audit services.
    (2) Use the clause at 252.237-7001, Compliance with Audit 
Standards, in solicitations and contracts for audit services.

237.271 and 237.272   [Removed]

4. Sections 237.271 and 237.272 are removed.
[FR Doc. 05-19458 Filed 9-29-05; 8:45 am]