[Federal Register: May 5, 2005 (Volume 70, Number 86)]
[Proposed Rules]               
[Page 23826-23827]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]



48 CFR Part 204

[DFARS Case 2003-D052]

Defense Federal Acquisition Regulation Supplement; Authorization 
for Continued Contracts

AGENCY: Department of Defense (DoD).

ACTION: Proposed rule with request for comments.


SUMMARY: DoD is proposing to amend the Defense Federal Acquisition 
Regulation Supplement (DFARS) to add policy permitting assignment of an 
additional identification number to an existing contract for 
administrative purposes. This proposed rule is a result of a 
transformation initiative undertaken by DoD to dramatically change the 
purpose and content of the DFARS.

DATES: Comments on the proposed rule should be submitted in writing to 
the address shown below on or before July 5, 2005, to be considered in 
the formation of the final rule.

ADDRESSES: You may submit comments, identified by DFARS Case 2003-D052, 
using any of the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov. 

Follow the instructions for submitting comments.
     Defense Acquisition Regulations Web site: http://emissary.acq.osd.mil/dar/dfars.nsf/pubcomm.
 Follow the instructions for 

submitting comments.
     E-mail: dfars@osd.mil. Include DFARS Case 2003-D052 in the 
subject line of the message.
     Fax: (703) 602-0350.
     Mail: Defense Acquisition Regulations Council, Attn: Ms. 
Robin Schulze, OUSD(AT&L)DPAP(DAR), IMD 3C132, 3062 Defense Pentagon, 
Washington, DC 20301-3062.
     Hand Delivery/Courier: Defense Acquisition Regulations 
Council, Crystal Square 4, Suite 200A, 241 18th Street, Arlington, VA 
    All comments received will be posted to http://emissary.acq.osd.mil/dar/dfars.nsf

FOR FURTHER INFORMATION CONTACT: Ms. Robin Schulze, (703) 602-0326.


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 proposed rule is a result of the DFARS Transformation 
initiative. The

[[Page 23827]]

proposed DFARS changes permit DoD contracting activities to assign an 
additional identification number to an existing contract by issuing a 
separate ``continued'' contract, when continued performance under the 
existing contract number is not practical for administrative reasons. 
The continued contract would incorporate all prices, terms, and 
conditions of the predecessor contract. Use of this procedure is 
expected to be limited, but will help to simplify administration, 
payment, and closeout of lengthy, complex contracts; and will help in 
situations where a contracting activity has exhausted its assigned 
series of identification numbers for orders placed against another 
activity's contract.
    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 does not expect this rule to 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 proposed 
change is administrative. A continued contract does not constitute a 
new procurement and will incorporate all prices, terms, and conditions 
of the predecessor contract. Therefore, DoD has not performed an 
initial regulatory flexibility analysis. DoD invites comments from 
small businesses and other interested parties. DoD also will consider 
comments from small entities concerning the affected DFARS subpart in 
accordance with 5 U.S.C. 610. Such comments should be submitted 
separately and should cite DFARS Case 2003-D052.

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 204

    Government procurement.

Michele P. Peterson,
Editor, Defense Acquisition Regulations System.
    Therefore, DoD proposes to amend 48 CFR Part 204 as follows:


    1. The authority citation for 48 CFR Part 204 continues to read as 

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

    2. Section 204.7001 is revised to read as follows:

204.7001  Policy.

    (a) Use the uniform PII numbering system prescribed by this subpart 
for the solicitation/contract instruments described in 204.7003 and 
    (b) Retain the basic PII number unchanged for the life of the 
instrument unless the conditions in paragraph (c) of this section 
    (c)(1) If continued performance under a contract number is not 
possible or is not in the Government's best interest solely for 
administrative reasons (e.g., when the supplementary PII serial 
numbering system is exhausted or for lengthy major systems contracts 
with multiple options), the contracting officer may assign an 
additional PII number by issuing a separate continued contract to 
permit continued contract performance.
    (2) A continued contract--
    (i) Does not constitute a new procurement;
    (ii) Incorporates all prices, terms, and conditions of the 
predecessor contract effective at the time of issuance of the continued 
    (iii) Operates as a separate contract independent of the 
predecessor contract once issued; and
    (iv) Shall not evade competition, expand the scope of work, or 
extend the period of performance beyond that of the predecessor 
    (3) When issuing a continued contract, the contracting officer 
    (i) Issue an administrative modification to the predecessor 
contract to clearly state that--
    (A) Any future awards provided for under the terms of the 
predecessor contract (e.g., issuance of orders or exercise of options) 
will be accomplished under the continued contract; and
    (B) Supplies and services already acquired under the predecessor 
contract shall remain solely under that contract for purposes of 
Government inspection, acceptance, payment, and closeout; and
    (ii) Follow the procedures at PGI 204.7001(c).
[FR Doc. 05-9006 Filed 5-4-05; 8:45 am]