[Federal Register: November 9, 2005 (Volume 70, Number 216)]
[Rules and Regulations]               
[Page 67921-67922]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]



48 CFR Part 243

[DFARS Case 2003-D024]

Defense Federal Acquisition Regulation Supplement; Contract 

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 
contract modifications. This rule is a result of a transformation 
initiative undertaken by DoD to dramatically change the purpose and 
content of the DFARS.

EFFECTIVE DATE:  November 9, 2005.

Acquisition Regulations System, OUSD (AT&L) DPAP (DAR), IMD 3C132, 3062 
Defense Pentagon, Washington, DC 20301-3062. Telephone (703) 602-0289; 
facsimile (703) 602-0350. Please cite DFARS Case 2003-D024.


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 
http://www.acq.osd.mil/dpap/ dars/dfars/transformation/index.htm.

    This final rule is a result of the DFARS Transformation initiative. 
The rule:
     Deletes unnecessary text at DFARS 243.102, 243.105(a)(ii), 
243.107, and 243.204-71.
     Deletes obsolete text at DFARS 243.105(a)(i).
     Updates text at DFARS 243.107-70 for consistency with the 
requirements of the clause at DFARS 252.249-7002, Notification of 
Anticipated Contract Termination or Reduction.
     Clarifies procedures at DFARS 243.204-70 for determining 
if a request for equitable contract adjustment meets the dollar 
threshold for requiring contractor certification.
     Deletes text at DFARS 243.170, 243.171, and 243.204 
containing procedures for identification of foreign military sales 
requirements, for obligation or deobligation of contract funds, and for 
review and definitization of contract change orders. This text has been 
relocated to the new DFARS companion resource, Procedures, Guidance, 
and Information (PGI), available at http://www.acq.osd.mil/dpap/dars/pgi

    DoD published a proposed rule at 70 FR 14629 on March 23, 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 updates, clarifies, and streamlines DFARS text, but 
makes no significant change to DoD contracting policy.

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.

[[Page 67922]]

List of Subjects in 48 CFR Part 243

    Government procurement.

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

Therefore, 48 CFR part 243 is amended as follows:


1. The authority citation for 48 CFR part 243 continues to read as 

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

243.102, 243.105, and 243.107  [Removed]

2. Sections 243.102, 243.105, and 243.107 are removed.

3. Section 243.107-70 is amended by revising the second sentence to 
read as follows:

243.107-70  Notification of substantial impact on employment.

    * * * The clause prescribed at 249.7003(c) requires that the 
contractor notify its employees, its subcontractors, and State and 
local officials when a contract modification will have a substantial 
impact on employment.

4. Sections 243.170 and 243.171 are revised to read as follows:

243.170  Identification of foreign military sale (FMS) requirements.

    Follow the procedures at PGI 243.170 for identifying contract 
modifications that add FMS requirements.

243.171  Obligation or deobligation of funds.

    Follow the procedures at PGI 243.171 when obligating or 
deobligating funds.

5. Section 243.204 is revised to read as follows:

243.204  Administration.

    Follow the procedures at PGI 243.204 for review and definitization 
of change orders.

6. Section 243.204-70 is amended by revising paragraph (b) to read as 

243.204-70  Certification of requests for equitable adjustment.

* * * * *
    (b) To determine if the dollar threshold for requiring 
certification is met, add together the absolute value of each cost 
increase and each cost decrease. See PGI 243.204-70(b) for an example.
* * * * *

243.204-71  [Removed]

7. Section 243.204-71 is removed.

[FR Doc. 05-22104 Filed 11-8-05; 8:45 am]