[Federal Register: March 25, 1999 (Volume 64, Number 57)] [Rules and Regulations] [Page 14398-14399] From the Federal Register Online via GPO Access [wais.access.gpo.gov] [DOCID:fr25mr99-13] ----------------------------------------------------------------------- DEPARTMENT OF DEFENSE 48 CFR Parts 211 and 252 [DFARS Case 97-D014] Defense Federal Acquisition Regulation Supplement; Single Process Initiative AGENCY: Department of Defense (DoD). ACTION: Final rule. ----------------------------------------------------------------------- SUMMARY: The Director of Defense Procurement has issued a final rule amending the Defense Federal Acquisition Regulation Supplement (DFARS) to facilitate the use of management and manufacturing processes that DoD has accepted under the Single Process Initiative (SPI). SPI provides for industry submission and DoD review of alternatives to military and Federal specifications and standards. EFFECTIVE DATE: March 25, 1999. FOR FURTHER INFORMATION CONTACT: Mr. Rick Layser, Defense Acquisition Regulations Council, PDUSD (A&T) DP (DAR), IMD 3D139, 3062 Defense Pentagon, Washington, DC 20301-3062. Telephone (703) 602-0131; telefax (703) 602-0350. Please cite DFARS Case 97-D014. SUPPLEMENTARY INFORMATION: A. Background This rule amends DFARS 211.273-2, 211.273-3, and 252.211-7005 to finalize the interim rule that was published in the Federal Register on August 20, 1997 (62 FR 44223), with a request for comments. Four sources submitted comments on the interim rule. All comments were considered in the development of the final rule. The final rule differs from the interim rule in that it clarifies that an SPI management council includes contractor representation in addition to DoD representation; provides that, before offers are due, offerors may obtain verification that an SPI process is acceptable for a particular procurement; provides an Internet site where accepted SPI processes are listed; and clarifies documentation requirements for offerors proposing to the use SPI processes. 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 industry participation in the DoD Single Process Initiative is voluntary. Approximately 310 contractors are involved in the initiative. It is estimated that 10 percent of those contractors are small businesses. C. Paperwork Reduction Act The Office of Management and Budget has approved the information collection requirements associated with this rule under OMB Control Number 0704-0398, for use through January 31, 2001. [[Page 14399]] List of Subjects in 48 CFR Parts 211 and 252 Government procurement. Michele P. Peterson, Executive Editor, Defense Acquisition Regulations Council. Therefore, 48 CFR Parts 211 and 252 are amended as follows: 1. The authority citation for 48 CFR Parts 211 and 252 continues to read as follows: Authority: 41 U.S.C. 421 and 48 (CFR Chapter 1. PART 211--DESCRIBING AGENCY NEEDS 2. Section 211.273-2 is amended by revising paragraph (b) to read as follows: 211.273-2 Policy. * * * * * (b) DoD acceptance of an SPI process follows the decision of a Management Council, which includes representatives of the contractor, the Defense Contract Management Command, the Defense Contract Audit Agency, and the military departments. * * * * * 3. Section 211.273-3 is revised to read as follows: 211.273-3 Procedures. (a) Solicitations for previously developed items shall encourage offerors to identify SPI processes for use in lieu of military or Federal specifications and standards cited in the solicitation. Use of the clause at 252.211-7005 satisfies this requirement. (b) Contracting officers shall ensure that-- (1) Concurrence of the requiring activity is obtained for any proposed substitutions prior to contract award; (2) Any necessary additional information regarding the SPI process identified in the proposal is obtained from the cognizant administrative contracting officer; and (3) In competitive procurements, prospective offerors are provided the opportunity to obtain verification that an SPI process is an acceptable replacement for a military or Federal specification or standard for the particular procurement prior to the date specified for receipt of offers. (c) Any determination that an SPI process is not acceptable for a specific procurement shall be made prior to contract award at the head of the contracting activity or program executive officer level. This authority may not be delegated. PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES 4. Section 252.211-7005 is revised to read as follows: 252.211-7005 Substitutions for military or Federal specifications and standards As prescribed in 211.273-4, use the following clause: SUBSTITUTIONS FOR MILITARY OR FEDERAL SPECIFICATIONS AND STANDARDS (MAR 1999) (a) Definition. ``SPI process,'' as used in this clause, means a management or manufacturing process that has been accepted previously by the Department of Defense under the Single Process Initiative (SPI) for use in lieu of a specific military or Federal specification or standard at specific facilities. Under SPI, these processes are reviewed and accepted by a Management Council, which includes representatives of the Contractor, the Defense Contract Management Command, the Defense Contract Audit Agency, and the military departments. (b) Offerors are encouraged to propose SPI processes in lieu of military or Federal specifications and standards cited in the solicitation. A listing of SPI processes accepted at specific facilities is available via the Internet in PDF format at http:// www.dcmc.hq.dla.mil/spi/dbreport/modified.pdf and in Excel format at http://www.dcmc.hg.dla.mil/spi/dbreport/modified.xls. (c) An offeror proposing to use an SPI process in lieu of military or Federal specifications or standards cited in the solicitation shall-- (1) Identify the specific military or Federal specification or standard for which the SPI process has been accepted; (2) Identify each facility at which the offeror proposes to use the specific SPI process in lieu of military or Federal specifications or standards cited in the solicitation; (3) Identify the contract line items, subline items, components, or elements affected by the SPI process; and (4) If the proposed SPI process has been accepted at the facility at which it is proposed for use, but is not yet listed at the Internet site specified in paragraph (b) of this clause, submit documentation of Department of Defense acceptance of the SPI process. (d) Absent a determination that an SPI process is not acceptable for this procurement, the Contract shall use the following SPI processes in lieu of military or Federal specifications or standards: (Offeror insert information for each SPI process) SPI Process:----------------------------------------------------------- Facility:-------------------------------------------------------------- Military or Federal Specification or Standard:------------------------- Affected Contract Line Item Number, Subline Item Number, Component, or Element:--------------------------------------------------------------- ---------------------------------------------------------------------- (e) If a prospective offeror wishes to obtain, prior to the time specified for receipt of offers, verification that an SPI process is an acceptable replacement for military or Federal specifications or standards required by the solicitation, the prospective offeror-- (1) May submit the information required by paragraph (d) of this clause to the Contracting Officer prior to submission of an offer; but (2) Must submit the information to the Contracting Officer at least 10 working days prior to the date specified for receipt of offers. (End of clause) [FR Doc. 99-7136 Filed 3-24-99; 8:45 am] BILLING CODE 5000-04-M