[Federal Register: February 23, 2006 (Volume 71, Number 36)]
[Rules and Regulations]               
[Page 9273-9274]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]



Defense Acquisition Regulations System

48 CFR Part 242

[DFARS Case 2003-D050]

Defense Federal Acquisition Regulation Supplement; Contractor 
Insurance/Pension Reviews

AGENCY: Defense Acquisition Regulations System, Department of Defense 

ACTION: Final rule.


SUMMARY: DoD has issued a final rule amending the Defense Federal 
Acquisition Regulation Supplement (DFARS) to update text pertaining to 
Government review of contractor insurance programs, pension plans, and 
other deferred compensation plans. This rule is a result of a 
transformation initiative undertaken by DoD to dramatically change the 
purpose and content of the DFARS.

DATES: Effective Date: February 23, 2006.

Acquisition Regulations System, OUSD (AT&L) DPAP (DARS), IMD 3C132, 
3062 Defense Pentagon, Washington, DC 20301-3062. Telephone (703) 602-
0310; facsimile (703) 602-0350. Please cite DFARS Case 2003-D050.


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 DFARS changes--
     Update and clarify requirements and responsibilities for 
Government review of a contractor's insurance programs, pension plans, 
and other deferred compensation plans; and
     Delete text addressing procedural matters relating to 
these reviews. This text has been relocated to the new DFARS companion 
resource, Procedures, Guidance, and Information (PGI), available at 

    DoD published a proposed rule at 70 FR 35606 on June 21, 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 contractor insurance/pension review requirements apply 
primarily to large business concerns.

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 242

    Government procurement.

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

Therefore, 48 CFR part 242 is amended as follows:

1. The authority citation for 48 CFR part 242 continues to read as 

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


242.7300  [Removed]

2. Section 242.7300 is removed.

3. Sections 242.7301 through 242.7303 are revised to read as follows:

242.7301  General.

    (a) The administrative contracting officer (ACO) is responsible for 
determining the allowability of insurance/pension costs in Government 
contracts and for determining the need for a Contractor/Insurance 
Pension Review (CIPR). Defense Contract Management Agency (DCMA) 
insurance/pension specialists and Defense Contract Audit Agency (DCAA) 
auditors assist ACOs in making these determinations, conduct CIPRs when 
needed, and perform other routine audits as authorized under FAR 42.705 
and 52.215-2. A CIPR is a DCMA/DCAA joint review that--
    (1) Provides an in-depth evaluation of a contractor's--
    (i) Insurance programs;
    (ii) Pension plans;
    (iii) Other deferred compensation plans; and
    (iv) Related policies, procedures, practices, and costs; or
    (2) Concentrates on specific areas of the contractor's insurance 
programs, pension plans, or other deferred compensation plans.
    (b) DCMA is the DoD Executive Agency for the performance of all 
    (c) DCAA is the DoD agency designated for the performance of 
contract audit responsibilities related to Cost Accounting Standards 
administration as described in FAR Subparts 30.2 and 30.6 as they 
relate to a contractor's insurance programs,

[[Page 9274]]

pension plans, and other deferred compensation plans.

242.7302  Requirements.

    Follow the procedures at PGI 242.7302 to determine if a CIPR is 

242.7303  Responsibilities.

    Follow the procedures at PGI 242.7303 when conducting a CIPR.

[FR Doc. 06-1632 Filed 2-22-06; 8:45 am]