2003 Change Notices (Archived)

DFARS Change Notice 20031215

DoD made the following changes to the DFARS on December 15, 2003: 

Final Rules:

Electronic Submission and Processing of Payment Requests (DFARS Case 2002-D001)
Finalizes an interim rule published on February 21, 2003 (DFARS Change Notice 20030301), to implement statutory requirements for contractors to submit, and DoD to process, payment requests in electronic form.  The final rule clarifies that scanned documents may be used to support electronic payment requests; and that the contract administration office will be involved in decisions to permit submission of payment requests in other than electronic form. 

Affected subparts/sections:  232.70; 252.212; 252.232

The Federal Register notice for this rule is available here.

A Microsoft Word format document showing all additions and deletions made by this rule is here.

Payment Withholding (DFARS Case 2002-D017)
Provides administrative contracting officers additional flexibility when determining the need to withhold payments under time-and-materials and labor-hour contracts.  Clarifies that, normally, there should be no need to withhold payment for a contractor with a record of timely submittal of a release discharging the Government from all liabilities, obligations, and claims under a contract.  Adds an alternate paragraph for use with the clause at FAR 52.232-7, Payments under Time-and-Materials and Labor-Hour Contracts, to implement this policy.

Affected subparts/sections:  Part 232 Table of Contents; 232.1; Part 252 Table of Contents; 252.232

The Federal Register notice for this rule is available here.

A Microsoft Word format document showing all additions and deletions made by this rule is here.

Purchase of Federal Prison Industries Products (DFARS Case 2002-D003)
Updates and clarifies policy on purchasing products from Federal Prison Industries (FPI).  The changes-

     (1) Clarify requirements for conducting market research before purchasing a product listed in the FPI Schedule;

     (2) Clarify requirements for use of competitive procedures, to include the use of small business set-asides and multiple award schedules, if an FPI product is found to be noncomparable to products available from the private sector;

     (3) Specify that a contracting officer's comparability determination is not subject to the arbitration procedures of FAR 8.605;

     (4) Specify that a DoD contractor may not be required to use FPI as a subcontractor; and

     (5) Prohibit the award of a contract to FPI that would allow an inmate worker access to classified or sensitive information. 

These changes were published in the Federal Register on November 14, 2003, with an effective date of December 15, 2003.  See DFARS Change Notice 20031114 for additional information on these changes.    

Affected subparts/sections:  Part 208 Table of Contents; 208.6; Part 219 Table of Contents; 219.5; Part 252 Table of Contents; 252.219

The Federal Register notice for this rule is available here.

A Microsoft Word format document showing all additions and deletions made by this rule is here.

DFARS Change Notice 20031010

DoD published an interim DFARS rule in the Federal Register on October 10, 2003, to add policy on item identification and valuation.

Interim Rule:

Unique Item Identification and Valuation (DFARS Case 2003-D081)
The rule requires contractors to uniquely identify, through the use of item identification marking, all items to be delivered to the Government. The rule also adds requirements for contracts to provide for identification of the Government’s acquisition cost of items that are built or acquired by a contractor during contract performance and subsequently delivered to the Government. This rule applies to all solicitations issued on or after January 1, 2004, and will be incorporated into the DFARS on that date.

The Federal Register notice for this rule is available here.
The notice solicits public comments, which are due by November 10, 2003.

A Microsoft Word format document showing all additions and deletions made by this rule is here.

DFARS Change Notice 20031001

DoD published 2 interim DFARS rules and technical amendments in the Federal Register on October 1, 2003. In addition, DoD has updated the DFARS to incorporate the DD Form 350 reporting requirements published in the Federal Register on June 20, 2003, for use beginning October 1, 2003. Further information on these actions is provided below:

Interim Rules:

Approval of Service Contracts and Task Orders (DFARS Case 2002-D024)
Establishes approval requirements that contracting activities must meet before acquiring services through a DoD contract or task order that is not performance based, or through any contract or task order that is awarded by an agency other than DoD. This change implements Section 801(b) of the National Defense Authorization Act for Fiscal Year 2002.

Affected subparts/sections: Part 237 Table of Contents; 237.1

The Federal Register notice for this rule is available here.

A Microsoft Word format document showing all additions and deletions made by this rule is here.

Indian Incentive Program (DFARS Case 2002-D033)
Revises the criteria for application of the Indian Incentive Program, which permits incentive payments to contractors that use Indian organizations as subcontractors. Establishes a threshold of $500,000 for contracts and subcontracts under which incentives may be paid; expands the Program to permit incentive payments for subcontracts awarded to Native Hawaiian small business concerns; and adds contracts and subcontracts for commercial items to the Program. This change implements Section 8021 of the DoD Appropriations Act for Fiscal Year 2003.

Affected subparts/sections: 226.1; 252.212; 252.226

The Federal Register notice for this rule is available here.

A Microsoft Word format document showing all additions and deletions made by this rule is here.

Final Rules:

Reporting Requirements Update (DFARS Case 2003-D002)
Updates DD Form 350 contract action reporting requirements for Fiscal Year 2004. Contains changes related to reporting of contract modifications and program or system information. These changes were published in the Federal Register on June 20, 2003 (DFARS Change Notice 20030620), to allow sufficient time for contracting activities to program their automated systems prior to the start of the new fiscal year.

Affected subparts/sections: 253.204; DD Form 350

The Federal Register notice for this rule is available here.

A Microsoft Word format document showing all additions and deletions made by this rule is here.

Technical Amendments

Updates activity names, clause titles and dates, and cross-references.

Affected subparts/sections: 202.1; 213.3; 252.212

The Federal Register notice for this rule is available here.

A Microsoft Word format document showing all additions and deletions made by this rule is here.

DFARS Change Notice 20030915

DoD made the following changes to the DFARS on September 15, 2003:

Proposed Rules:

DoD published the following proposed DFARS changes in the Federal Register on September 15, 2003, with a request for comments by November 14, 2003:

Government Source Inspection Requirements (DFARS Case 2002-D032)
Proposes to eliminate Government source inspection requirements for contracts or delivery orders valued below $250,000, unless (1) mandated by DoD regulation, (2) required by a memorandum of agreement between the acquiring department or agency and the contract administration agency, or (3) the contracting officer determines that Government source inspection is needed, based on the technical nature and criticality of the product being acquired. The objective is to focus diminishing contract management resources on high-risk areas, while providing flexibility for exceptions where needed.

The Federal Register notice for this rule is available here.

A Microsoft Word format document showing all additions and deletions proposed by this rule is here.

Fish, Shellfish, and Seafood Products (DFARS Case 2002-D034)
Proposes to clarify what “produced in the United States” means with regard to the acquisition of fish, shellfish, and seafood. Specifies that fish, shellfish, and seafood delivered under a DoD contract must be taken from the sea by U.S.-flag vessels or obtained from fishing in the United States. The proposed changes are based on public comments received on the interim rule published on February 14, 2003 (DFARS Change Notice 20030214), to implement Section 8136 of the DoD Appropriations Act for Fiscal Year 2003.

The Federal Register notice for this rule is available here.

A Microsoft Word format document showing all additions and deletions proposed by this rule is here.

DFARS Change Notice 20030821

DoD made the following changes to the DFARS on August 21, 2003:

Interim Rule:

Multiyear Contracting Authority Revisions (DFARS Case 2002-D041)
Restricts the use of multiyear contracts for supplies to only those for complete and usable end items, and restricts the use of advance procurement to only those long-lead items necessary in order to meet a planned delivery schedule for complete major end items.  This change implements Section 820 of the National Defense Authorization Act for Fiscal Year 2003.

Affected subparts/sections: Part 217 Table of Contents; 217.1     

The Federal Register notice for this rule is available here.

A Microsoft Word format document showing all additions and deletions made by this rule is here.

Final Rules:

Liability for Loss Under Vessel Repair and Alteration Contracts (DFARS Case 2002-D016)
Increases a contractor's liability for loss or damage under vessel repair and alteration contracts from $5,000 to $50,000 per incident.  The increased dollar ceiling is based on adjustments for inflation, the need to provide a financial incentive for contractors to minimize loss and damage, and common insurance practices.

Affected subparts/sections: 252.217    

The Federal Register notice for this rule is available here.

A Microsoft Word format document showing all additions and deletions made by this rule is here.

Caribbean Basin Country - Dominican Republic (DFARS Case 2003-D007) 
Adds the Dominican Republic to the list of Caribbean Basin countries whose products DoD may acquire under the Trade Agreements Act.  This change implements a determination made by the U.S. Trade Representative on May 21, 2003.

Affected subparts/sections:  252.225    

The Federal Register notice for this rule is available here.

A Microsoft Word format document showing all additions and deletions made by this rule is here.

Competitiveness Demonstration Codes Update (DFARS Case 2003-D003)
Updates the codes used to identify the industry categories designated for expanded small business participation under the Small Business Competitiveness Demonstration Program.  This change is administrative only and has no impact on the Program.

Affected subparts/sections:  219.10     

The Federal Register notice for this rule is available here.

A Microsoft Word format document showing all additions and deletions made by this rule is here.

Contractor Performance of Security-Guard Functions (DFARS Case 2002-D042)
Finalizes, without change, the interim rule published on February 14, 2003 (Change Notice 20030214), to implement Section 332 of the National Defense Authorization Act for Fiscal Year 2003.  Section 332 permits the award of contracts for performance of security-guard functions at military installations or facilities to meet the increased need for such functions since September 11, 2001. 

Affected subparts/sections:  None.    

The Federal Register notice for this rule is available here.

Proposed Rule:

The following proposed DFARS change was published on August 21, 2003, with a request for comments by October 20, 2003:

Production Surveillance and Reporting (DFARS Case 2002-D015)
Proposes to eliminate requirements for a contract administration office to perform production surveillance on contractors that have only Criticality Designator C (low-urgency) contracts, unless surveillance is requested by the contracting officer.  Also would eliminate requirements for the contract administration office to monitor progress and identify potential delinquencies on Criticality Designator C contracts unless specifically requested by the contracting officer. 

The Federal Register notice for this rule is available here.

A Microsoft Word format document showing all additions and deletions proposed by this rule is here.

DFARS Change Notice 20030722

DoD made the following changes to the DFARS on July 22, 2003:

Buy-to-Budget Acquisition of End Items (DFARS Case 2002-D036) (Interim Rule)
Authorizes DoD to acquire a higher quantity of an end item than the quantity specified in a law providing for the funding of the acquisition, if the head of the agency determines that (1) the requirement for the end item is expected to remain substantially unchanged throughout the period of the acquisition; (2) it is possible to acquire the higher quantity of the end item without additional funding because of production efficiencies or other cost reductions;

(3) the amount of funds used to acquire the higher quantity will not exceed the amount provided under the law; and (4) the amount provided under the law is sufficient to ensure that each unit of the higher quantity is fully funded as a complete end item. This change implements Section 801 of the National Defense Authorization Act for Fiscal Year 2003.

Affected subparts/sections: DFARS Table of Contents; Part 207 Table of Contents; 207.70

The Federal Register notice for this rule is available here.

A Microsoft Word format document showing all additions and deletions made by this rule is here.

Multiyear Procurement Authority for Environmental Services for Military Installations (DFARS Case 2003-D004) (Interim Rule)
Authorizes the use of multiyear contracting for environmental remediation services for military installations, if the head of the agency determines that (1) there will be a continuing requirement for the services consistent with the proposed contract period; (2) furnishing the services will require a substantial initial investment or the incurrence of substantial contingent liabilities; and (3) use of a multiyear contract will encourage effective competition and promote economies in operations. This change implements Section 827 of the National Defense Authorization Act for Fiscal Year 2003.

Affected subparts/sections: 217.1

The Federal Register notice for this rule is available here.

A Microsoft Word format document showing all additions and deletions made by this rule is here.

DFARS Change Notice 20030620

DoD published the following DFARS changes in the Federal Register on June 20, 2003:

Reporting Requirements Update (DFARS Case 2003-D002)
Updates DD Form 350 contract action reporting requirements for Fiscal Year 2004.  Contains changes related to reporting of contract modifications and program or system information.  These changes will become effective on October 1, 2003, and will be incorporated into the DFARS on that date.  

The Federal Register notice for this rule is available here.

A Microsoft Word format document showing all additions and deletions made by this rule is here.

Deletion of Federal Prison Industries Clearance Exception (DFARS Case 2003-D006)
Deletes obsolete text pertaining to an exception from Federal Prison Industries clearance requirements for DoD purchases of $250 or less.  The $250 exception has been superseded by the exception for purchases of $2,500 or less published in Item V of Federal Acquisition Circular 2001-14 on May 22, 2003.  

Affected subparts/sections:  208.6    

The Federal Register notice for this rule is available here.

A Microsoft Word format document showing all additions and deletions made by this rule is here.

Payment Bonds on Cost-Reimbursement Contracts (DFARS Case 2002-D030)
Updates policy on performance and payment bonds for construction contracts.  Authorizes the use of alternative payment protections for fixed-price construction subcontracts between $25,000 and $100,000 issued under cost-reimbursement contracts. 

Affected subparts/sections:  Part 228 Table of Contents; 228.1   

The Federal Register notice for this rule is available here.

A Microsoft Word format document showing all additions and deletions made by this rule is here.

Proposed Rule:

DoD published the following proposed rule in the Federal Register on June 11, 2003, with a request for comments by August 11, 2003:

DoD Activity Address Codes in Contract Numbers (DFARS Case 2003-D005)
Proposes DFARS changes to prescribe the use of DoD activity address codes in the first 6 positions of solicitation and contract numbers, instead of the DoD activity address numbers found in DFARS Appendix G. 

The Federal Register notice for this rule is available here.

A Microsoft Word format document showing all additions and deletions proposed by this rule is here.

DFARS Change Notice 20030603

Foreign Acquisition (DFARS Case 2002-D009)
The DFARS has been updated to incorporate the final rule published in the Federal Register on March 31, 2003, with an effective date of April 30, 2003. The rule revises DFARS Part 225, Foreign Acquisition, and associated provisions and clauses to simplify and clarify policy pertaining to the acquisition of supplies and services from foreign sources. See DFARS Change Notice 20030331 for additional information on this rule.

The Federal Register notice for this rule is available here.

A Microsoft Word format document showing all additions and deletions made by this rule is here.

Affected subparts/sections: DFARS Table of Contents; 206.3; 208.72; 212.3; Part 225 Table of Contents; 225.0; 225.1; 225.2; 225.4; 225.5; 225.6; 225.7; 225.8; 225.9; 225.11; 225.70; 225.71; 225.72; 225.73; 225.74; 242.3; Part 252 Table of Contents; 252.212; 252.225

Technical Amendments

DoD published technical amendments to the DFARS on April 30, 2003, to update organizational titles and activity names and addresses.

Affected subparts/sections: 202.1; 245.4; Appendix G, Parts 3 and 5

The Federal Register notice for this rule is available here.

A Microsoft Word format document showing all additions and deletions made by this rule is here.

DFARS Change Notice 20030331

DoD published the following final DFARS rules in the Federal Register on March 31, 2003:

Foreign Acquisition (DFARS Case 2002-D009)
Changes the DFARS to revise Part 225, Foreign Acquisition, and associated provisions and clauses.

The Federal Register notice for this rule is available here.

A Microsoft Word format document showing all additions and deletions made by this rule is here.

Extension of Contract Goal for Small Disadvantaged Businesses and Certain Institutions of Higher Education (DFARS Case 2002-D038)
Changes the DFARS to extend, through fiscal year 2006, the goal for DoD to award 5 percent of contract and subcontract dollars to small disadvantaged businesses, historically black colleges and universities, and minority institutions. This change implements Section 816 of the National Defense Authorization Act for Fiscal Year 2003.

Affected subparts/sections: 219.0; 226.70

The Federal Register notice for this rule is available here.

A Microsoft Word format document showing all additions and deletions made by this rule is here.

Technical Amendments

Changes the DFARS to update activity names and addresses, references, and administrative information.

Affected subparts/sections: 202.1; 204.72; 207.1; 239.73; 250.1; Appendix G, Parts 2 and 8

The Federal Register notice for this rule is available here.

A Microsoft Word format document showing all additions and deletions made by this rule is here.

DFARS Change Notice 20030301

DoD has published the following interim and proposed DFARS rules in the Federal Register:

Interim Rule:

Electronic Submission and Processing of Payment Requests (DFARS Case 2002-D001)
Affected subparts/sections: DFARS Table of Contents; Part 232 Table of Contents; 232.70; Part 252 Table of Contents; 252.212; 252.232; 252.246

The Federal Register notice for this rule is available here.

A Microsoft Word format document showing all additions and deletions made by this rule is here.

Proposed Rule:

Payment Withholding (DFARS Case 2002-D017)
Proposes to supplement the clause at FAR 52.232-7, Payments under Time-and-Materials and Labor-Hour Contracts, to remove the requirement for a contracting officer to routinely withhold 5 percent of payments due under a time-and-materials or labor-hour contract. Instead, the administrative contracting officer would withhold payment amounts only if necessary to protect the Government's interests. This proposed rule was published in the Federal Register on February 28, 2003, with a request for comments by April 29, 2003.

The Federal Register notice for this rule is available here.

A Microsoft Word format document showing all additions and deletions proposed by this rule is here.

DFARS Change Notice 20030214

DoD published 2 interim, 2 final, and 2 proposed DFARS rules in the Federal Register on February 14, 2003. The interim and final rules apply to solicitations issued on or after February 14, 2003, except as otherwise permitted by FAR 1.108(d). The proposed and interim rules solicit public comments, which are due by April 15, 2003. A summary of each rule follows:

Interim Rules:

Contractor Performance of Security-Guard Functions (DFARS Case 2002-D042)
Affected subparts/sections: Part 237 Table of Contents; 237.1

The Federal Register notice for this rule is available here.

A Microsoft Word format document showing all additions and deletions made by this rule is here.

Fish, Shellfish, and Seafood Products (DFARS Case 2002-D034)
Affected subparts/sections: 225.70; 252.212; 252.225

The Federal Register notice for this rule is available here.

A Microsoft Word format document showing all additions and deletions made by this rule is here.

Final Rules:

Emergency Acquisitions in Regions Subject to Economic Sanctions (DFARS Case 2002-D031)
Affected subparts/sections: Part 225 Table of Contents; 225.7

The Federal Register notice for this rule is available here.

A Microsoft Word format document showing all additions and deletions made by this rule is here.

Technical Amendments

Changes the DFARS to update organizational names and addresses and cross-references.

Affected subparts/sections: 201.2; 201.3; 201.4; 202.1; 204.70; 206.3; Part 208 Table of Contents; 209.1; 209.4; 212.3; 214.4; 217.1; 219.10; 230.2; 231.2; 232.0; 232.5; 232.6; 236.5; 239.73; 242.6; 242.7; 242.12; 249.70; 250.3; 252.211; 253.204; Appendix G, Parts 1, 2, and 8

The Federal Register notice for this rule is available here.

A Microsoft Word format document showing all additions and deletions made by this rule is here.

Proposed Rules:

Payment Bonds on Cost-Reimbursement Contracts (DFARS Case 2002-D030)

The Federal Register notice for this rule is available here.

A Microsoft Word format document showing all additions and deletions proposed by this rule is here.

Liability for Loss Under Vessel Repair and Alteration Contracts (DFARS Case 2002-D016)

The Federal Register notice for this rule is available here.

A Microsoft Word format document showing all additions and deletions proposed by this rule is here.