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2005 Change Notices (Archived)

DEFENSE FAR SUPPLEMENT (DFARS) Change Notice 20051220 (Click here to view the whole Change Notice)

DoD published the following final and proposed DFARS rules on December 20, 2005:  

Final Rules:  

Contract Financing (DFARS Case 2003-D043)
Clarifies requirements for establishing due dates for contract financing payments; deletes text that is unnecessary or duplicative of FAR/DFARS policy on financial consultation matters, contract payment instructions, and use of the Government-wide commercial purchase card; deletes unnecessary text on the composition and responsibilities of the DoD Contract Finance Committee; increases, from $500 to $2,500 the value at or below which the requirements of FAR Subpart 32.4, Advance Payments for Non-Commercial Items, do not apply to high school and college publications for military recruitment efforts; and relocates to PGI, text on department/agency contract financing offices, approvals for advance payments or unusual progress payments, debt collection procedures, and bankruptcy reporting.

Affected subparts/sections: DFARS Table of Contents; Part 232 Table of Contents; 232.0; 232.1; 232.2; 232.4; 232.5; 232.6; 232.9; 232.10; 232.11; PGI 232.0; PGI 232.4; PGI 232.5; PGI 232.6

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.

A Microsoft Word format document showing the text added to PGI is here.

Technical Amendments (0000-P048, 0000-P052, 2005-D014)
Adds references to DoD guidance on purchase, travel, and fuel card programs. Adds procedures to PGI regarding designation of a contracting officer’s representative for service contracts.

Affected subparts/sections: 201.6; 213.3; PGI 201.6

The Federal Register notice for this rule is available here(1, 2).

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

A Microsoft Word format document showing the text added to PGI is here.  

Proposed Rules:

Contract Pricing and Cost Accounting Standards (DFARS Case 2003-D014)
Updates and clarifies text regarding contract pricing matters and cost accounting standards. Implements provisions of Section 817 of the National Defense Authorization Act for Fiscal Year 2003 (Public Law 107-314) regarding exceptions to cost or pricing data requirements and waiver of cost accounting standards. Relocates to PGI, DoD procedures addressing pricing considerations, profit analysis, and waiver of cost accounting standards. 

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.

A Microsoft Word format document showing the text proposed for addition to PGI is here.


DEFENSE FAR SUPPLEMENT (DFARS) Change Notice 20051209 (Click here to view the whole Change Notice)

DoD published the following final and proposed DFARS rules on December 9, 2005: 

Final Rules: 

Ordering Period for Task and Delivery Order Contracts (DFARS Case 2003-D097/2004-D023)
Finalizes, with changes, the interim rule published on December 15, 2004 (DFARS Change Notice 20041215), that limits the ordering period of a task or delivery order contract awarded under the authority of 10 U.S.C. 2304a. The changes in the final rule clarify the types of contracts that are subject to the rule and specify that the statutory requirement for notifying Congress of contracts with ordering periods exceeding 10 years expires at the end of fiscal year 2009.

Affected subparts/sections: 217.2

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.  

Socioeconomic Programs (DFARS Case 2003-D029)
Relocates policy for contracting with historically black colleges and universities and minority institutions (HBCU/MIs) to a new location within the DFARS, for consistency with the location of FAR policy on this subject; updates the relocated text to exclude information on HBCU/MI contract percentage goals and infrastructure assistance that is unnecessary for inclusion in the DFARS; deletes text on base closures and realignments that duplicates policy found elsewhere in the DFARS; and relocates to PGI, procedures for obtaining funds for incentive payments to contractors that award subcontracts to Indian organizations and enterprises.

Affected subparts/sections: DFARS Table of Contents; 205.2; Part 226 Table of Contents; 226.1; 226.3; 226.70; 226.72; 252.226; PGI 226.1

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.

A Microsoft Word format document showing the text added to PGI is here.

Environment, Occupational Safety, and Drug-Free Workplace (DFARS Case 2003-D039)
Deletes unnecessary cross-references and general statements regarding hazard warning labels and a drug-free workplace; relocates text on ozone-depleting substances to a more appropriate location within the DFARS; relocates to PGI, internal DoD procedures on safety precautions for ammunition and explosives and use of recovered materials; and revises the title of DFARS Part 223 for consistency with the title of FAR Part 23.

Affected subparts/sections: DFARS Table of Contents; 211.2; Part 223 Table of Contents; 223.3; 223.4; 223.5; 223.8; 223.70; 223.71; 223.72; 252.223; PGI 223.3; PGI 223.4

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.

A Microsoft Word format document showing the text added to PGI is here.

Foreign Acquisition (DFARS Case 2003-D008)
Updates and clarifies DFARS text on the acquisition of supplies and services from foreign sources. Relocates to PGI, guidance on evaluating offers of foreign end products; information on international agreements; and procedures for contracting with qualifying country sources, for administration of duty-free entry provisions, and for acquisitions involving foreign military sales requirements.

Affected subparts/sections: Part 225 Table of Contents; 225.0; 225.1; 225.4; 225.5; 225.7; 225.8; 225.9; 225.70; 225.73; 225.75; 252.225; PGI 225.0; PGI 225.5; PGI 225.8; PGI 225.9; PGI 225.73

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.

A Microsoft Word format document showing the text added to PGI is here.

Free Trade Agreements – Australia and Morocco (DFARS Case 2004-D013)
Finalizes, with changes, the interim rule published on January 13, 2005 (DFARS Change Notice 20050113) to implement new Free Trade Agreements with Australia and Morocco . The new Free Trade Agreements were scheduled to become effective on January 1, 2005 . However, the Morocco Free Trade Agreement has not yet entered into force and is therefore excluded from this final rule. In addition, for consistency with the FAR and other changes made by the interim DFARS rule, this final rule amends the definition of “eligible product” to include foreign construction material.

Affected subparts/sections: 225.0; 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.

Contracting for Security-Guard Functions (PGI Case 0000-P051)
Amends PGI to address the DoD report and plan that allows the continuation of contracts for security-guard functions, entered into under DFARS 237.102-70(d), through September 30, 2006.

Affected subparts/sections: PGI 237.1

A Microsoft Word format document showing the additions and deletions to PGI is here.

Proposed Rules:

Required Sources of Supply (DFARS Case 2003-D072)
Deletes unnecessary text on GSA Federal Supply Schedules; deletes text on the Defense National Stockpile and the acquisition of helium, as these issues are adequately addressed in the FAR; deletes obsolete text on the DoD Industrial Preparedness Production Planning Program; and relocates to PGI, procedures for ordering from central nonprofit agencies, for acquisition of items under the DoD Coordinated Acquisition Program, for contracting or performing field service functions for NASA, for use of the DoD Precious Metals Recovery Program, and for use of enterprise software agreements for acquiring commercial software and related services.  

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.  

A Microsoft Word format document showing the text proposed for addition to PGI is here.

Restriction on Carbon, Alloy, and Armor Steel Plate (DFARS Case 2005-D002)
Clarifies a restriction on the acquisition of foreign carbon, alloy, or armor steel plate. The restriction implements provisions of annual DoD appropriations acts, which prohibit the acquisition of carbon, alloy, or armor steel plate, that is not melted and rolled in the United States or Canada , for use in any Government-owned facility or property under the control of DoD. The proposed changes provide consistency in the manner in which the restriction is addressed within the DFARS.  

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.


DEFENSE FAR SUPPLEMENT (DFARS) Change Notice 20051114 (Click here to view the whole Change Notice)

Final Rule:

Radio Frequency Identification (DFARS Case 2004-D011)
DoD has updated the DFARS to incorporate the final rule published on September 13, 2005, that became effective on November 14, 2005. This final rule contains policy and a contract clause requiring contractors to affix passive radio frequency identification (RFID) tags, at the case and palletized unit load levels, when shipping certain items to certain DoD locations. The rule also requires contractors to electronically submit advance shipment notices to DoD, to permit association of the RFID tag data with the corresponding shipment.

Affected subparts/sections: Part 211 Table of Contents; 211.2; 212.3; Part 252 Table of Contents; 252.211

See DFARS Change Notice 20050913 for additional information on this rule.


DEFENSE FAR SUPPLEMENT (DFARS) Change Notice 20051109 (Click here to view the whole Change Notice)

DoD published the following DFARS changes on November 9, 2005:

Final Rules:

Information Technology Equipment – Screening of Government Inventory (DFARS Case 2003-D054)
Deletes obsolete procedures for screening of Government inventory before authorizing a contractor to purchase information technology equipment. DoD now manages information technology equipment in the same manner as other Government property, in accordance with FAR Part 45 and DFARS Part 245.

Affected subparts/sections: DFARS Table of Contents; Part 239 Table of Contents; 239.73

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.

Acquisition of Telecommunications Services (DFARS Case 2003-D055)
Revises DFARS text on the acquisition of telecommunications services to update terminology, delete obsolete text, and add text addressing DoD’s authority to enter into contracts for telecommunications resources. Adds to PGI, historical documents on delegated authority from the General Services Administration for the procurement of telecommunications services.

Affected subparts/sections: Part 239 Table of Contents; 239.74; PGI 239.74

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.

A Microsoft Word format document showing the text added to PGI is here.

Update of Clauses for Telecommunications Services (DFARS Case 2003-D053)
Deletes an obsolete clause and revises the applicability of certain clauses used in contracts for telecommunications services. The revised clauses previously were applicable only to common carriers (those subject to Federal Communications Commission or other governmental regulation). This change makes the clauses applicable to both common and noncommon carriers to reflect the current business environment, where the differences between common and noncommon carriers have become less distinct.

Affected subparts/sections: 239.74; Part 252 Table of Contents; 252.239

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.

Contract Administration (DFARS Case 2003-D023)
Deletes text that is unnecessary or duplicative of FAR policy in the areas of: visits to contractor facilities; conduct of postaward conferences; review and negotiation of contractor costs and billing rates; use of contractor past performance information; and contractor internal controls. Relocates procedures to PGI in the areas of: providing contract administration services to foreign governments and international organizations; coordination between corporate and individual administrative contracting officers; processing of contractor novation and change-of-name agreements; processing of voluntary refunds from contractors; and providing technical representatives at contractor facilities. Updates the clause on contractor material management and accounting systems for consistency with policy found in the prescriptive DFARS text.

Affected subparts/sections: DFARS Table of Contents; Part 242 Table of Contents; 242.0; 242.2; 242.4; 242.5; 242.7; 242.8; 242.12; 242.15; 242.71; 242.74; 242.75; Part 252 Table of Contents; 252.242; PGI 242.0; PGI 242.7; PGI 242.12; PGI 242.71; PGI 242.74

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.

A Microsoft Word format document showing the text added to PGI is here.

Contract Modifications (DFARS Case 2003-D024)
Deletes unnecessary text on contract modifications; clarifies procedures for determining if a request for equitable adjustment requires contractor certification; and relocates to PGI, procedures for identifying foreign military sales requirements, for obligating or deobligating contract funds, and for review and definitization of change orders.

Affected subparts/sections: Part 243 Table of Contents; 243.1; 243.2; PGI 243.1; PGI 243.2

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.

A Microsoft Word format document showing the text added to PGI is here.

Subcontracting Policies and Procedures (DFARS Case 2003-D025)
Clarifies Government responsibilities for conducting reviews of contractor purchasing systems; updates a reference to a FAR clause on contracts for commercial items; and relocates to PGI, examples of weaknesses in a contractor’s purchasing system that may indicate the need for a review.

Affected subparts/sections: 244.3; 252.244; PGI 244.3

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.

Microsoft Word format document showing the text added to PGI is here.

Extraordinary Contractual Actions (DFARS Case 2003-D048)
Updates requirements for processing a contractor’s request for extraordinary contract adjustment. Relocates to PGI, procedures for preparation of records relating to contractor requests for adjustment and for submission of those requests to a contract adjustment board.

Affected subparts/sections: Part 250 Table of Contents; 250.1; 250.2; 250.3; PGI 250.1; PGI 250.3

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.

A Microsoft Word format document showing the text added to PGI is here.

Technical Amendment
Amends the clause at 252.211-7005, Substitutions for Military or Federal Specifications and Standards, to update the Internet address for obtaining a list of processes accepted under the DoD Single Process Initiative.

Affected subparts/sections: 252.211

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:

Contract Administration Functions (DFARS Case 2003-D051)
Updates the list of contract administration functions to clarify responsibilities for payment administration and verification of contractor compliance with earned value management system requirements; deletes obsolete text on mobilization production planning surveys; and relocates to PGI, procedures for designation of contract payment offices.

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.

A Microsoft Word format document showing the text proposed for addition to PGI is here.  


DEFENSE FAR SUPPLEMENT (DFARS) Change Notice 20051011 (Click here to view the whole Change Notice)

DoD published the following DFARS change on October 11, 2005:  

Final Rule:  

Payment and Billing Instructions (DFARS Case 2003-D009)
Updates and improves procedures for payment and billing under DoD contracts. The changes include: (1) addition of a contract clause addressing line item information needed in contractor payment requests; (2) amendment of material inspection and receiving report requirements to update invoice instructions; and (3) relocation of text addressing distribution of contracts and numbering of contract line items to PGI. In addition, to eliminate the need for non-standard local payment clauses, a list of standard payment instructions has been added to PGI for use in Section G of the contract.

Affected subparts/sections: Part 204 Table of Contents; 204.2; 204.71; Part 215 Table of Contents; 215.2; Part 252 Table of Contents; 252.204; Appendix F; PGI 204.2; PGI 204.71

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.

A Microsoft Word format document showing the text added to PGI is here.


DEFENSE FAR SUPPLEMENT (DFARS) Change Notice 20050930 (Click here to view the whole Change Notice)

DoD published the following DFARS changes on September 30, 2005:  

Interim Rule:

Prohibition of Foreign Taxation on U.S. Assistance Programs (DFARS Case 2004-D012)
Implements a statutory prohibition on foreign taxation under contracts funded by U.S. assistance programs. Foreign governments receiving U.S. assistance are prohibited from imposing taxes on commodities acquired under contracts funded by such U.S. assistance. The interim rule addresses the responsibilities of the contractor and the contracting officer regarding this prohibition.

Affected subparts/sections: 225.73; Part 229 Table of Contents; 229.1; Part 252 Table of Contents; 252.229; PGI 229.1

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.

A Microsoft Word format document showing the text added to PGI is here.

Final Rules:

Extension of Partnership Agreement – 8(a) Program (DFARS Case 2005-D020)
Reflects the extension of the partnership agreement that permits DoD to award contracts to eligible 8(a) Program participants on behalf of the Small Business Administration. The expiration date of the agreement has been extended to September 30, 2006 .

Affected subparts/sections: 219.8

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.

Defense Logistics Agency Waiver Authority (DFARS Case 2005-D019)
Authorizes the Defense Logistics Agency (DLA) Component Acquisition Executive to waive domestic source restrictions on the acquisition of ball and roller bearings, when adequate domestic supplies are not available to meet DoD requirements on a timely basis. The authority provided to DLA is in addition to the authority already provided to the military departments for such waivers.

Affected subparts/sections: 225.70

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.

Quality Control of Aviation Critical Safety Items and Related Services (DFARS Case 2003-D101)
Finalizes, with changes, the interim rule published in DFARS Change Notice 20040917 to implement statutory requirements for quality control in the procurement, modification, repair, and overhaul of aviation critical safety items. The changes in the final rule clarify that the head of the design control activity is responsible for identifying items that meet the criteria for designation as aviation critical safety items and that the head of the design control activity may delegate authority for acceptance of minor nonconformances in aviation critical safety items.

Affected subparts/sections: 209.2; 246.4; PGI 209.2; PGI 246.4

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.

A Microsoft Word format document showing the text added to PGI is here.

Central Contractor Registration (DFARS Case 2003-D040)
Finalizes, with changes, the interim rule published in DFARS Change Notice 20031114 to eliminate policy on central contractor registration that duplicated policy added to the Federal Acquisition Regulation. The changes in the final rule clarify that contracting activities must include the contractor’s Commercial and Government Entity code, instead of the DUNS number, on contractual documents transmitted to the payment office.

Affected subparts/sections: 204.11

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.

Advisory and Assistance Services (DFARS Case 2003-D042)
Deletes obsolete or unnecessary text on the acquisition of advisory and assistance services; and relocates to PGI, a list of DoD publications that govern the conduct of audits.

Affected subparts/sections: Part 237 Table of Contents; 237.2; PGI 237.2

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.

A Microsoft Word format document showing the text added to PGI is here.


DEFENSE FAR SUPPLEMENT (DFARS) Change Notice 20050916 (Click here to view the whole Change Notice)

DoD published the following final and proposed DFARS changes on September 16, 2005:  

Final Rules:

Multiyear Contracting (DFARS Case 2004-D024)
Finalizes, without change, the interim rule published in DFARS Change Notice 20050509 to implement Section 814 of the National Defense Authorization Act for Fiscal Year 2005 and Section 8008 of the Defense Appropriations Act for Fiscal Year 2005. Section 814 requires DoD to provide notice and supporting rationale to Congress before awarding a multiyear contract containing a cancellation ceiling exceeding $100 million that is not fully funded. Section 8008 places additional restrictions on the award of multiyear contracts for supplies using fiscal year 2005 funds.

Affected subparts/sections: None.

The Federal Register notice for this rule is available here.

Provision of Information to Cooperative Agreement Holders (DFARS Case 2004-D025)
Finalizes, without change, the interim rule published in DFARS Change Notice 20050222 to implement Section 816 of the National Defense Authorization Act for Fiscal Year 2005. The interim rule increased, from $500,000 to $1,000,000, the threshold at which DoD contracts must include a requirement for the contractor to provide to cooperative agreement holders, upon their request, a list of the contractor’s employees who are responsible for entering into subcontracts.

Affected subparts/sections: None.

The Federal Register notice for this rule is available here.

Proposed Rules:

Acquisition Planning (DFARS Case 2003-D044)
Proposed change increases the dollar thresholds for preparation of written acquisition plans; updates acquisition planning requirements for consistency with changes to the DoD 5000 series publications; deletes unnecessary text relating to contract administration and class justifications for other than full and open competition; clarifies requirements for funding of leases; and relocates to PGI, text addressing the contents of written acquisition plans.

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.

A Microsoft Word format document showing the text proposed for addition to PGI is here.

Types of Contracts (DFARS Case 2003-D078)
Proposed change streamlines text on the use of economic price adjustment clauses; increases, from 3 to 5 years, the standard maximum ordering period under basic ordering agreements; deletes obsolete text on the use of cost-plus-fixed-fee contracts for environmental restoration; deletes unnecessary text on design stability and use of incentive provisions; and relocates to PGI, procedures for selecting contract type and for use of special economic price adjustment clauses, incentive contracts, and basic ordering agreements.

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.

A Microsoft Word format document showing the text proposed for addition to PGI is here.

Special Contracting Methods (DFARS Case 2003-D079)
Proposed change clarifies text on the use of option clauses for industrial capability production planning; deletes unnecessary text on determinations for interagency acquisitions under the Economy Act; deletes restrictive requirements relating to use of master agreements for vessel repair; deletes obsolete procedures for acquisition of bakery and dairy products; lowers the level for approval of profit on undefinitized contract actions for which substantial performance has been completed; and relocates to PGI, guidance on the use of options, and procedures for preparation of master agreements and job orders, for breakout and acquisition of spare parts, and for acquisition of work over and above contract requirements.

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.

A Microsoft Word format document showing the text proposed for addition to PGI is here.

Acquisition of Information Technology (DFARS Case 2003-D068)
Proposed change deletes text that is obsolete or unnecessary; clarifies text addressing charges for special construction or assembly related to telecommunications services; clarifies the text of clauses used in basic agreements for telecommunications services; and relocates to PGI, information on acquiring telecommunications services from foreign carriers.

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.

A Microsoft Word format document showing the text proposed for addition to PGI is here.

Exchange or Sale of Government-Owned Information Technology (DFARS Case 2003-D094)
Proposed change deletes obsolete procedures for exchange or sale of Government-owned information technology. DoD now handles the exchange or sale of information technology equipment in the same manner as other personal property, in accordance with DoD 4140.1-R, Supply Chain Materiel Management Regulation.

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.


DEFENSE FAR SUPPLEMENT (DFARS) Change Notice 20050913 (Click here to view the whole Change Notice)

DoD published the following final DFARS change on September 13, 2005:

Final Rule:

Radio Frequency Identification (DFARS Case 2004-D011)
Adds policy and a contract clause requiring contractors to affix passive radio frequency identification (RFID) tags, at the case and palletized unit load levels, when shipping certain items to certain DoD locations. Also requires contractors to electronically submit advance shipment notices to DoD, to permit association of the RFID tag data with the corresponding shipment.

Applies to contracts for packaged operational rations, clothing, individual equipment, tools, personal demand items, or weapon system repair parts, that will be shipped to the Defense Distribution Depot in Susquehanna, PA, or the Defense Distribution Depot in San Joaquin, CA.

Use of RFID technology will improve the visibility of DoD assets, increase the accuracy of shipment and receipt data, and permit more efficient movement of supplies within the DoD supply chain.

This rule will become effective on November 14, 2005, 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.

Additional information on RFID is available at http://www.dodrfid.org.


DEFENSE FAR SUPPLEMENT (DFARS) Change Notice 20050901 (Click here to view the whole Change Notice)

DoD published the following DFARS and PGI changes on September 1, 2005:  

Interim Rules:

Training for Contractor Personnel Interacting with Detainees (DFARS Case 2005-D007)
Adds policy addressing requirements for contractor personnel who interact with detainees to receive training regarding the applicable international laws and obligations of the United States . Contractor personnel must receive this training prior to interacting with detainees and annually thereafter. This policy implements Section 1092 of the National Defense Authorization Act for Fiscal Year 2005.

Affected subparts/sections: Part 237 Table of Contents; 237.1; Part 252 Table of Contents; 252.212; 252.237; PGI 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.

A Microsoft Word format document showing the text added to PGI is here.

Levy on Payments to Contractors (DFARS Case 2004-D033)
Adds policy addressing the effect of Internal Revenue Service levies on contract payments. Requires contractors to promptly notify the contracting officer if a levy that will jeopardize contract performance is imposed on a contract. The contracting officer must notify the Director, Defense Procurement and Acquisition Policy, in accordance with agency procedures, when the contractor’s inability to perform will adversely affect national security or will result in significant additional costs to the Government.

Affected subparts/sections: DFARS Table of Contents; Part 232 Table of Contents; 232.71; Part 252 Table of Contents; 252.232; PGI 232.71

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.

A Microsoft Word format document showing the text added to PGI is here.

Final Rules:

Restrictions on Totally Enclosed Lifeboat Survival Systems (DFARS Case 2004-D034)
Removes DFARS text addressing restrictions on the acquisition of totally enclosed lifeboats from foreign sources. The restrictions are based on fiscal year 1994 and 1995 appropriations act provisions, that are no longer considered applicable, and other statutory provisions that apply only to the Navy.

Affected subparts/sections: Part 225 Table of Contents; 225.70; Part 252 Table of Contents; 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.

Assignment of Contract Administration – Exception for Defense Energy Support Center (DFARS Case 2004-D007)
Changes the assignments of contract administration functions to reflect a memorandum of agreement between the Defense Contract Management Agency and the Defense Energy Support Center . The agreement provides for the Defense Energy Support Center to perform contract administration functions for all contracts it awards. This arrangement eliminates duplication of effort in the bulk fuel quality management program.

Affected subparts/sections: 242.2

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 Amendment

PGI 225.802-70 is amended to update the Internet address for the directory of contract administration offices.

Affected subparts/sections: PGI 225.8


DEFENSE FAR SUPPLEMENT (DFARS) Change Notice 20050801 (Click here to view the whole Change Notice)

DoD published the following proposed DFARS change on August 1, 2005:

Proposed Rule:

Notification Requirements for Critical Safety Items (DFARS Case 2004-D008)
Proposes to add a new contract clause requiring contractors to promptly notify the Government of any nonconformance or deficiency that could impact item safety. The clause would be used in contracts for the acquisition of (1) replenishment parts identified as critical safety items; (2) systems and subsystems, assemblies, and subassemblies integral to a system; or (3) repair, maintenance, logistics support, or overhaul services for systems and subsystems, assemblies, and subassemblies integral to a system. The proposed change is a result of Section 8143 of the Fiscal Year 2004 DoD Appropriations Act, which required examination of appropriate standards and procedures to ensure timely notification to contracting agencies and contractors regarding safety issues, including defective parts.

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.

A Microsoft Word format document showing the text proposed for addition to PGI is here.


DEFENSE FAR SUPPLEMENT (DFARS) Change Notice 20050726 (Click here to view the whole Change Notice)

DoD published the following changes and proposed changes to the DFARS on July 26, 2005 :

Interim Rules :

Sole Source 8(a) Awards to Small Business Concerns Owned by Native Hawaiian Organizations (DFARS Case 2004-D031)
Permits sole source awards to small business concerns owned by Native Hawaiian organizations, for manufacturing contracts exceeding $5,000,000 and non-manufacturing contracts exceeding $3,000,000 under the 8(a) Program. Competition normally is required for 8(a) awards of these dollar values, except for awards to Indian tribes or Alaska Native Corporations. This change provides small business concerns owned by Native Hawaiian organizations the same status that is provided to Indian tribes and Alaska Native Corporations under the 8(a) Program. The change implements provisions of the DoD appropriations acts for fiscal years 2004 and 2005.

Affected subparts/sections: Part 219 Table of Contents; 219.8

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.

Business Restructuring Costs-Delegation of Authority to Make Determinations Relating to Payment (DFARS Case 2004-D026)
Authorizes the Director of the Defense Contract Management Agency to make determinations of savings related to contractor restructuring costs that are expected to be less than $25 million over a 5-year period; removes unnecessary references to requirements for certifications for business combinations that occurred before November 1997; and clarifies requirements for projected restructuring costs and savings to be computed on a present value basis. Implements 10 U.S.C. 2325 as amended by Section 819 of the National Defense Authorization Act for Fiscal Year 2005 (Public Law 108-375).

Affected subparts/sections: 231.2; PGI 231.2

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.

A Microsoft Word format document showing the additions and deletions to PGI is here.

Final Rule :

Berry Amendment Memoranda (DFARS Case 2004-D035)
Specifies the DoD officials that are authorized to make determinations regarding the nonavailability of domestic items to fulfill DoD requirements; addresses the documentation needed to support such determinations; and requires congressional notification of such determinations that are related to the acquisition of titanium or products containing titanium. Implements policy memoranda issued by the Deputy Secretary of Defense and the Under Secretary of Defense (Acquisition, Technology, and Logistics) on DoD implementation of the domestic source requirements of 10 U.S.C. 2533a (The Berry Amendment).

Affected subparts/sections: 225.70; PGI 225.70

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.

A Microsoft Word format document showing the text added to PGI is here.

Proposed Rule :

Transportation (DFARS Case 2003-D028)
Proposed change deletes text on transportation matters that are sufficiently addressed in the FAR or in DoD transportation regulations; clarifies requirements for inclusion of shipping instructions in solicitations and contracts; and relocates to PGI, procedures for contracting for the preparation of property for storage or shipment and for the preparation of consignment instructions.

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.

A Microsoft Word format document showing the text proposed for addition to PGI is here.


DEFENSE FAR SUPPLEMENT (DFARS) Change Notice 20050712 (Click here to view the whole Change Notice)

DoD published the following proposed DFARS changes on July 12, 2005:  

Proposed Rules:

Export-Controlled Information and Technology (DFARS Case 2004-D010)
Proposed change contains a new subpart and a contract clause addressing requirements for preventing unauthorized disclosure of export-controlled information and technology. The proposed subpart requires contracting officers to ensure that contracts identify any export-controlled information and technology, as determined by the requiring activity. The proposed contract clause requires contractors to maintain adequate controls over export-controlled information and technology to prevent unauthorized access by foreign nationals or foreign persons.

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.

A Microsoft Word format document showing the text proposed for addition to PGI is here.

Labor Laws (DFARS Case 2003-D019)
Proposed change updates requirements for dealing with labor relations matters; deletes obsolete or unnecessary text; and relocates to PGI, procedures for referral of labor relations matters to the appropriate authorities, for reporting the impact of labor disputes on defense programs, for conducting investigations of suspected violations of labor standards, and for preparation of notices and waiver requests relating to certain labor requirements.

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.

A Microsoft Word format document showing the text proposed for addition to PGI is here.

Contract Termination (DFARS Case 2003-D046)
Proposed change relocates text on termination of Canadian Commercial Corporation contracts, from Part 225, Foreign Acquisition, to a more appropriate location in Part 249, Termination of Contracts; deletes unnecessary cross-references; and relocates to PGI, procedures for preparation of contract termination status reports, for completion of forms to document termination settlements, for preparation of settlement negotiation memoranda, and for congressional notification of significant contract terminations.

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.

A Microsoft Word format document showing the text proposed for addition to PGI is here.

Material Inspection and Receiving Report (DFARS Case 2003-D085)
Proposed change updates requirements for preparation of DD Form 250, Material Inspection and Receiving Report; and relocates to PGI, procedures for documenting contract quality assurance performed at a subcontractor’s facility and for distribution and correction of DD Form 250-1, Tanker/Barge Material Inspection and Receiving Report.

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.

Microsoft Word format document showing the text proposed for addition to PGI is here.


DEFENSE FAR SUPPLEMENT (DFARS) Change Notice 20050621 (Click here to view the whole Change Notice)

DoD published the following final and proposed changes to the DFARS on June 21, 2005:

Final Rules:

Geographic Use of the Term “United States” (DFARS Case 2001-D003)

Updates references to the “United States” and other geographic terms throughout the DFARS to clarify the meaning of these terms and to provide consistency with the definitions found in FAR 2.101.

Affected subparts/sections: 204.9; 208.70; 209.4; 212.6; 213.2; 213.3; 215.4; 217.70; 217.71; 219.8; 222.72; 223.5; 225.70; 227.71; 227.72; 233.2; 235.0; 236.2; 236.5; 237.1; 237.73; Part 242 Table of Contents; 242.14; 247.5; 252.209; 252.212; 252.225; 252.247; 253.213; Appendix F

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 Amendment

Amends cross-references in the clause at DFARS 252.211-7003, Item Identification and Valuation, to clarify reporting requirements.

Affected subparts/sections: 252.211

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:

Combating Trafficking in Persons (DFARS Case 2004-D017)

Proposed change implements DoD policy prohibiting any activities on the part of DoD contractor employees that support or promote trafficking in persons. The proposed change includes a clause for use in contracts requiring performance outside the United States . The proposed clause requires the contractor to establish policy and procedures for combating trafficking in persons and to notify the contracting officer of any violations and the corrective action taken.

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.

A Microsoft Word format document showing the text proposed for addition to PGI is here.

Describing Agency Needs (DFARS Case 2003-D073)

Proposed change updates references to the DoD 5000 series publications and the DoD database for specifications and standards; and relocates to PGI, procedures for use of specifications and standards and for encouraging the use of Single Process Initiative processes instead of military or Federal specifications and standards.

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.

A Microsoft Word format document showing the text proposed for addition to PGI is here.

Contractor Insurance/Pension Reviews (DFARS Case 2003-D050)

Proposed change clarifies responsibilities of administrative contracting officers and auditors in conducting reviews of a contractor’s insurance programs, pension plans, and other deferred compensation plans; and updates and relocates procedures for these reviews to PGI.

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.

A Microsoft Word format document showing the text proposed for addition to PGI is here.

Construction Contracting (DFARS Case 2003-D034)

Proposed change updates requirements for contracting for construction services; and relocates to PGI, procedures for distribution and use of contractor performance reports, handling of Government estimates of construction costs, use of bid schedules with additive or deductive items, and technical working agreements with foreign governments.

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.

A Microsoft Word format document showing the text proposed for addition to PGI is here.




DEFENSE FAR SUPPLEMENT (DFARS) Change Notice 20050606

Final Rule:

Contractor Personnel Supporting a Force Deployed Outside the United States (DFARS Case 2003-D087)

The DFARS has been updated to incorporate the changes published in DFARS Change Notice 20050505 that became effective on June 6, 2005 . The changes address situations that require contractor personnel to deploy with, or otherwise provide support in the theater of operations to, U.S. military forces deployed outside the United States .

See DFARS Change Notice 20050505 for additional information related to these changes.

Affected subparts/sections: DFARS Table of Contents; 207.1; 212.3; Part 225 Table of Contents; 225.8; 225.74; Part 252 Table of Contents; 252.225; PGI 207.1; PGI 225.8; PGI 225.74



DEFENSE FAR SUPPLEMENT (DFARS) Change Notice 20050602

DoD published the following proposed DFARS change on June 2, 2005:

Proposed Rule:

Competition Requirements for Federal Supply Schedules and Multiple Award Contracts (DFARS Case 2004-D009)

Updates and clarifies requirements for competition in the placement of orders for supplies or services under Federal Supply Schedules or multiple award contracts. The proposed changes-

  • Establish approval requirements for noncompetitive orders exceeding $100,000, consistent with the approval requirements found in the FAR;
  • Add PGI guidance on the appropriate use of exceptions to competition requirements;
  • Relocate procedural requirements for use of Federal Supply Schedules to PGI; and
  • Make additional changes for consistency with current FAR requirements for use of Federal Supply Schedules.

The Federal Register notice for this proposed rule is here.

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

A Microsoft Word format document showing the text proposed for addition to PGI is here.

A related memorandum from the Director of Defense Procurement and Acquisition Policy dated September 13, 2004 , is here.




DEFENSE FAR SUPPLEMENT (DFARS) Change Notice 20050524 (Click here to view the whole Change Notice)

DoD published the following interim and proposed changes to the DFARS on May 24, 2005:

Interim Rules:

DoD Pilot Mentor-Protégé Program (DFARS Case 2004-D028)

Amends the DoD Pilot Mentor-Protégé Program to extend, through September 30, 2010 , the period during which companies may enter into agreements under the Program; and to permit service-disabled veteran-owned small business concerns and HUBZone small business concerns to participate in the Program as protégé firms. The Program provides incentives for DoD contractors to assist protégé firms in enhancing their capabilities and increasing their participation in Government and commercial contracts. The changes to the Program implement Sections 841 and 842 of the National Defense Authorization Act for Fiscal Year 2005.

Affected subparts/sections: 219.71; Appendix I

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.

Approval of Service Contracts and Task and Delivery Orders/ Proper Use of Non-DoD Contracts (DFARS Case 2002-D024)

Requires departments and agencies to comply with review and approval requirements when acquiring supplies or services through the use of non-DoD contracts in amounts exceeding the simplified acquisition threshold. Amends the interim rule published on October 1, 2003 (DFARS Change Notice 20031001), which contained approval requirements for the acquisition of services. This second interim rule contains more comprehensive review and approval requirements and applies to the acquisition of both supplies and services. The rule implements Section 801 of the National Defense Authorization Act for Fiscal Year 2002; Section 854 of the National Defense Authorization Act for Fiscal Year 2005; and the USD(AT&L)/PDUSD(C) policy memorandum of October 29, 2004, on proper use of non-DoD contracts, which became effective on January 1, 2005.

Affected subparts/sections: DFARS Table of Contents; 207.1; 208.4; 216.5; Part 217 Table of Contents; 217.78; 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.

The USD(AT&L)/PDUSD(C) policy memorandum of October 29, 2004, is available here.

Incentive Program for Purchase of Capital Assets Manufactured in the United States (DFARS Case 2005-D003)

Adds requirements for consideration of the use of capital assets (including machine tools) manufactured in the United States, when conducting source selections and making award fee determinations for major defense acquisition programs. Implements Section 822 of the National Defense Authorization Act for Fiscal Year 2004.

Affected subparts/sections: 215.3; 216.4

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 – DFARS Transformation:

Quality Assurance (DFARS Case 2003-D027)

Updates and clarifies requirements for Government contract quality assurance and use of warranties; deletes unnecessary definitions and unnecessary text on technical requirements matters, responsibilities of contract administration offices, and material inspection and receiving reports; and relocates to PGI, procedures for preparation of quality assurance instructions, procedures for use of quality inspection approval stamps, and information on types of quality evaluation data.

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.

A Microsoft Word format document showing the text proposed for addition to PGI is here.




DEFENSE FAR SUPPLEMENT (DFARS) Change Notice 20050509

DoD published the following change to the DFARS on May 9, 2005:

Interim Rule:

Multiyear Contracting (DFARS Case 2004-D024)

Amends multiyear contracting policy to implement Section 8008 of the Defense Appropriations Act for Fiscal Year 2005 (Public Law 108-287) and Section 814 of the National Defense Authorization Act for Fiscal Year 2005 (Public Law 108-375). Section 814 requires DoD to provide notice and supporting rationale to Congress before awarding a multiyear contract containing a cancellation ceiling exceeding $100 million that is not fully funded. Section 8008 places the following conditions on the award of a multiyear contract using fiscal year 2005 funds: (1) DoD must have submitted a budget request to Congress for full funding of the units to be procured; (2) contract cancellation provisions must not include consideration of recurring costs associated with the production of unfunded units; (3) payments under the contract must not be made in advance of incurred costs on funded units; and (4) the contract must not provide for a price adjustment based on a failure to award a follow-on contract. In addition, text from DFARS 217.173(b) has been relocated to 217.172(e) to more closely align with the structure of 10 U.S.C. 2306b(h).

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

A Microsoft Word format document showing the text added to PGI is here.




DEFENSE FAR SUPPLEMENT (DFARS) Change Notice 20050505 (Click here to view the whole Change Notice)

DoD published the following changes and proposed changes to the DFARS on May 5, 2005:  

Final Rules:

Contractor Personnel Supporting a Force Deployed Outside the United States (DFARS Case 2003-D087)
Adds policy to address situations that require contractor personnel to deploy with, or otherwise provide support in the theater of operations to, U.S. military forces deployed outside the United States in contingency operations, humanitarian or peacekeeping operations, or other military operations or exercises designated by the combatant commander. The DFARS changes enable contracting officers to consistently address the issues associated with these operations through use of a standard contract clause.

These changes will become effective on June 6, 2005, and will be incorporated into the DFARS and PGI on that date.

Questions and answers about these changes are available here.

The Federal Register notice for this rule is available here.

A Microsoft Word format document showing the additions and deletions to be made to the DFARS on June 6, 2005, is here.

A Microsoft Word format document showing the text to be added to PGI on June 6, 2005, is here.  

Technical Amendment (0000-P027)
Adds a reference to new PGI requirements relating to the publication of justifications for the use of brand name contract specifications.

Affected subparts/sections: Part 211 Table of Contents; 211.1; PGI 211.1

The Federal Register notice for this rule is available here.

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

A Microsoft Word format document showing the text added to PGI is here.

Proposed Rules – DFARS Transformation:  

Authorization for Continued Contracts (DFARS Case 2003-D052)
Proposed change permits 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.

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.

A Microsoft Word format document showing the text proposed for inclusion in PGI is here.

Contract Financing (DFARS Case 2003-D043)
Proposed change clarifies requirements for establishing due dates for contract financing payments; deletes text that is unnecessary or duplicative of FAR/DFARS policy on financial consultation matters, contract payment instructions, and use of the Governmentwide commercial purchase card; and relocates to PGI, text on department/agency contract financing offices, approvals for advance payments or unusual progress payments, debt collection procedures, and bankruptcy reporting.

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.

A Microsoft Word format document showing the text proposed for inclusion in PGI is here.




DEFENSE FAR SUPPLEMENT (DFARS) Change Notice 20050422 (Click here to view the whole Change Notice)

DoD published the following final DFARS changes on April 22, 2005:

Final Rules:

Unique Item Identification and Valuation (DFARS Case 2003-D081)

Finalizes, with changes, the interim rule published in DFARS Change Notice 20040101.

The rule requires contractors to provide-

  • Unique identification of marking of all delivered items for which the Government’s unit acquisition cost is $5,000 or more, and certain items for which the Government’s unit acquisition cost is less than $5,000 (e.g, serially managed, mission essential, and controlled inventory); and
  • The Government’s unit acquisition cost of all delivered items, as part of or associated with the Material Inspection and Receiving Report (DD Form 250).

    The final rule includes exceptions to UID requirements for-
  • Items to be used in support of a contingency operation or to facilitate the defense against or recovery from nuclear, biological, chemical, or radiological attack; and
  • Commercial items or items acquired from a small business concern if the component acquisition executive (for ACAT I programs) or he head of the contracting activity (for all other programs) executes a determination and findings that it is more cost effective for the Government to assign, mark, and register the UID after delivery.

Unique identification enables DoD to consistently capture the value of the items it buys, control these items during their use, and combat counterfeiting of parts. Additional information on DoD’s unique identification policy can be found at http://www.acq.osd.mil/uid.

Affected subparts/sections: Part 211 Table of Contents; 211.2; 212.3; 252.211

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.

Reporting Contract Performance Outside the United States (DFARS Case 2004-D001)

Clarifies requirements for contractor reporting of contract performance outside the United States ; and establishes two separate clauses to eliminate confusion between two reporting requirements previously contained in one clause. Relocates text on contracting officer distribution of reports to PGI. The reporting requirements apply to solicitations and contracts with a value exceeding $500,000.

Affected subparts/sections: Part 225 Table of Contents; 225.72; Part 252 Table of Contents; 252.225; PGI 225.72

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.

A Microsoft Word format document showing the text added to PGI is here.




DEFENSE FAR SUPPLEMENT (DFARS) Change Notice 20050421

DoD published the following proposed DFARS change on April 21, 2005:

Proposed Rule:

Radio Frequency Identification (DFARS Case 2004-D011)

Proposed DFARS change-

  • Requires contractors to-

    • Affix passive radio frequency identification (RFID) tags to the exterior packaging of shipments to identify the contents; and

    • Electronically submit advance shipment notices to DoD to permit receiving personnel to associate the RFID tag data with the corresponding shipment.

  • Applies to shipments that-

    • Contain packaged operational rations, clothing, individual equipment, tents, tools, housekeeping supplies and equipment, personal demand items, or repair parts and components; and

    • Will be delivered to the Defense Distribution Depot in Susquehanna, PA, or the Defense Distribution Depot in San Joaquin , CA.

    The change will improve visibility of DoD assets in the supply chain and will permit more efficient movement of supplies to U.S. and coalition troops.

    The Federal Register notice for this rule is available here.

    A correction to the Federal Register notice is here.

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




    DEFENSE FAR SUPPLEMENT (DFARS) Change Notice 20050412 (Click here to view the whole Change Notice)

    DoD published the following final and proposed DFARS changes on April 12, 2005:

    Final Rule:

    Personal Services Contracts (DFARS Case 2003-D103)

    Adopts as final, without change, the interim rule published on September 17, 2004 (DFARS Change Notice 20040917). The rule provides authority for DoD to enter into personal services contracts for health care at locations outside of medical treatment facilities, and for urgent or unique services that are to be performed outside the United States or that directly support the mission of a DoD intelligence or counter-intelligence organization or the special operations command. The rule implements Sections 721 and 841 of the National Defense Authorization Act for Fiscal Year 2004, and enables the award of contracts for specialized services that would be impractical for DoD to obtain by other means.

    Affected subparts/sections: None.

    The Federal Register notice for this rule is available here.

    Proposed Rules:

    Administrative Matters (DFARS Case 2003-D084)

    Relocates administrative procedures for signature of contract documents to PGI; deletes unnecessary cross-references; and deletes text on security requirements and IRS reporting requirements that are adequately addressed in the FAR.

    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.

    A Microsoft Word format document showing the text proposed for inclusion in PGI is here.

    Uniform Contract Line Item Numbering (DFARS Case 2003-D082)

    Eliminates certain exceptions to requirements for uniform contract line item numbering, to promote standardization in contract writing; and relocates to PGI, procedures for use and numbering of contract exhibits and attachments.

    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.

    A Microsoft Word format document showing the text proposed for inclusion in PGI is here.

    Simplified Acquisition Procedures (DFARS Case 2003-D075)

    Updates and consolidates text on the use of imprest funds and third-party drafts; deletes unnecessary cross-references; and relocates to PGI, guidance on the use of unilateral contract modifications and procedures for use of forms for purchases made using simplified acquisition procedures.

    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.

    A Microsoft Word format document showing the text proposed for inclusion in PGI is here.

    Use of the Governmentwide Commercial Purchase Card for Micro-Purchases (DFARS Case 2003-D059)

    Lowers the approval level for exceptions to DoD policy for use of the Governmentwide commercial purchase card for actions at or below the micro-purchase threshold, from a general or flag officer or a member of the Senior Executive Service, to the chief of the contracting office. Also adds a new blanket exception that applies if an authorized official renders the agency’s or activity’s purchase card program inactive.

    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.

    Socioeconomic Programs (DFARS Case 2003-D029)

    Relocates policy for contracting with historically black colleges and universities and minority institutions (HBCU/MIs) to a new location within the DFARS, for consistency with the location of FAR policy on this subject; updates the relocated text to exclude information on HBCU/MI contract percentage goals and infrastructure assistance that is unnecessary for inclusion in the DFARS; deletes text on base closures and realignments that duplicates policy found elsewhere in the DFARS; and relocates to PGI, procedures for obtaining funds for incentive payments to contractors that award subcontracts to Indian organizations and enterprises.

    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.

    A Microsoft Word format document showing the text proposed for inclusion in PGI is here.

    Environment, Occupational Safety, and Drug-Free Workplace (DFARS Case 2003-D039)

    Deletes unnecessary cross-references and general statements regarding hazard warning labels and a drug-free workplace; relocates text on ozone-depleting substances to a more appropriate location within the DFARS; and relocates to PGI, internal DoD procedures on safety precautions for ammunitions and explosives and use of recovered materials.

    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.

    A Microsoft Word format document showing the text proposed for inclusion in PGI is here.

    Contract Administration (DFARS Case 2003-D023)

    Deletes text that is unnecessary or duplicative of FAR policy in the areas of: visits to contractor facilities; conduct of postaward conferences; review and negotiation of contractor costs and billing rates; use of contractor past performance information; and contractor internal controls. Relocates procedures to PGI in the areas of: providing contract administration services to foreign governments and international organizations; coordination between corporate and individual administrative contracting officers; processing of contractor novation and change-of-name agreements; processing of voluntary refunds from contractors; and providing technical representatives at contractor facilities. Updates the clause on contractor material management and accounting systems for consistency with policy found in the prescriptive DFARS text.

    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.

    A Microsoft Word format document showing the text proposed for inclusion in PGI is here.

    Subcontracting Policies and Procedures (DFARS Case 2003-D025)

    Clarifies Government responsibilities for conducting reviews of contractor purchasing systems; updates a reference to a FAR clause on contracts for commercial items; and relocates to PGI, examples of weaknesses in a contractor’s purchasing system that may indicate the need for a review.

    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.

    A Microsoft Word format document showing the text proposed for inclusion in PGI is here.




    DEFENSE FAR SUPPLEMENT (DFARS) Change Notice 20050323 (Click here to view the whole Change Notice)

    DoD published the following changes and proposed changes to the DFARS on March 23, 2005:

    Interim Rule:

    Contractor Performance of Acquisition Functions Closely Associated with Inherently Governmental Functions (DFARS Case 2004-D021)

    Permits contracting for acquisition functions closely associated with inherently governmental functions only if:  appropriate DoD personnel are not available to perform the functions; appropriate DoD personnel will supervise contractor performance and will perform all associated inherently governmental functions; and the agency addresses any potential contractor organizational conflict of interest.  Implements Section 804 of the National Defense Authorization Act for Fiscal Year 2005, and is intended to ensure proper management and oversight of contracts for acquisition functions that are closely associated with inherently governmental functions.

    Affected subparts/sections:  DFARS Table of Contents; Part 207 Table of Contents; 207.5; PGI 207.5         

    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.

    A Microsoft Word format document showing the text added to PGI is here.

    Final Rules:

    Contractor Performance of Security-Guard Functions (DFARS Case 2004-D032)

    Conditionally extends, from December 1, 2005, to September 30, 2006, authority for contractor performance of security-guard functions at military installations or facilities to meet the increased need for such functions since September 11, 2001.  Implements Section 324 of the National Defense Authorization Act for Fiscal Year 2005, which requires DoD to submit a report to Congress on the use of this authority, no later than December 1, 2005, to permit extension of the authority.

    Affected subparts/sections:  237.1; PGI 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.

    A Microsoft Word format document showing the text added to PGI is here.

    Extension of Test Program for Negotiation of Comprehensive Small Business Subcontracting Plans (DFARS Case 2004-D029)

    Extends, from September 30, 2005, to September 30, 2010, the test program that permits negotiation of comprehensive small business subcontracting plans with DoD contractors.  The test program is intended to determine whether comprehensive subcontracting plans on a corporate, division, or plant-wide basis will reduce administrative burdens while enhancing subcontracting opportunities for small and small disadvantaged business concerns.  The extension implements Section 843 of the National Defense Authorization Act for Fiscal Year 2005.

    Affected subparts/sections:  DFARS Table of Contents; Part 219 Table of Contents; 219.7

    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.

    Major Systems Acquisition (DFARS Case 2003-D030)  

    Updates references to the DoD 5000 series documents with regard to major systems acquisition and earned value management systems.  Relocates DFARS text on earned value management from Part 234, Major Systems Acquisition, to Part 242, Contract Administration, since earned value management requirements are not limited to major systems.  The corresponding earned value management provision and clause are relocated from DFARS 252.234-7000 and 252.234-7001, to 252.242-7001 and 252.242-7002, respectively, with no substantive change, other than update of references to DoDI 5000.2. 

    A March 7, 2005, memorandum from the Acting Under Secretary of Defense (Acquisition, Technology, and Logistics), containing additional changes to DoD earned value management policy is available here.

    Affected subparts/sections:  Part 234 Table of Contents; 234.0; Part 242 Table of Contents; 242.11; Part 252 Table of Contents; 252.234; 252.242; PGI 242.11            

    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.

    A Microsoft Word format document showing the text added to PGI is here.

    Technical Amendment

    Updates the debarring and suspending official listed for the National Security Agency.

    Affected subparts/sections:  209.4

    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:

    Foreign Acquisition (DFARS Case 2003-D008)

    Proposed change updates and clarifies DFARS text on the acquisition of supplies and services from foreign sources.  Relocates to PGI, guidance on evaluating offers of foreign end products; information on international agreements; and procedures for contracting with qualifying country sources, for administration of duty-free entry provisions, and for acquisitions involving foreign military sales requirements.

    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.

    A Microsoft Word format document showing the text proposed for inclusion in PGI is here.

    Restrictions on Totally Enclosed Lifeboat Survival Systems (DFARS Case 2004-D034)

    Proposed change removes DFARS text addressing restrictions on the acquisition of totally enclosed lifeboats from foreign sources.  The text proposed for removal is based on fiscal year 1994 and 1995 appropriations act provisions that are no longer considered applicable and other statutory provisions that apply only to the Navy.

    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.

    Contracting by Negotiation (DFARS Case 2003-D077)

    Proposed change updates DFARS text on contracting by negotiation and source selection.  Relocates to PGI, procedures for preparation of source selection plans and examples of source selection evaluation factors. 

    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.

    A Microsoft Word format document showing the text proposed for inclusion in PGI is here.

    Contract Modifications (DFARS Case 2003-D024)

    Proposed change deletes unnecessary text on contract modifications; clarifies procedures for determining if a request for equitable adjustment requires contractor certification; and relocates to PGI, procedures for identifying foreign military sales requirements, for obligating or deobligating contract funds, and for review and definitization of change orders.

    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.

    A Microsoft Word format document showing the text proposed for inclusion in PGI is here.

    Component Breakout (DFARS Case 2003-D071)

    Proposed change relocates the contents of DFARS Appendix D, Component Breakout, to PGI with no substantive change.  Breaking out components of end items permits the Government to purchase the components directly from the manufacturer or supplier and furnish them to the end item manufacturer as Government-furnished material for future acquisitions.

    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.

    A Microsoft Word format document showing the text proposed for inclusion in PGI is here




    DEFENSE FAR SUPPLEMENT (DFARS) Change Notice 20050222 (Click here to view the whole Change Notice)

    DoD published the following changes and proposed changes to the DFARS on February 22, 2005:

    Interim Rule:

    Provision of Information to Cooperative Agreement Holders (DFARS Case 2004-D025)

    Increases, from $500,000 to $1,000,000, the threshold at which DoD contracts must include a requirement for the contractor to provide to cooperative agreement holders, upon their request, a list of the contractor’s employees who are responsible for entering into subcontracts. Amends the prescription for use of the clause at DFARS 252.205-7000, Provision of Information to Cooperative Agreement Holders, to reflect the new dollar threshold. This change implements Section 816 of the National Defense Authorization Act for Fiscal Year 2005.

    Affected subparts/sections: 205.4

    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:

    Government Source Inspection Requirements (DFARS Case 2002-D032)

    Eliminates Government source inspection requirements for contracts or delivery orders valued below $250,000, unless mandated by DoD regulation, required by a memorandum of agreement between the acquiring department or agency and the contract administration agency, or determined necessary by the contracting officer because of the technical nature and criticality of the item being acquired. The objective is to focus diminishing contract management resources on high-risk areas, while providing flexibility for exceptions where needed.

    Affected subparts/sections: Part 246 Table of Contents; 246.4

    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.

    Resolving Tax Problems (DFARS Case 2003-D032)

    Relocates text to the new DFARS companion resource, Procedures, Guidance, and Information (PGI), available at http://www.acq.osd.mil//dpap/dars/pgi. The relocated text contains guidance on resolution of tax issues and information on tax relief agreements between the United States and foreign governments.

    Affected subparts/sections: 229.1; PGI 229.1

    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.

    A Microsoft Word format document showing the text added to PGI is here.

    Bonds (DFARS Case 2003-D033)

    Updates DFARS text on the use of bonds for financial protection against losses under DoD contracts. The change clarifies that fidelity and forgery bonds are authorized for use when necessary for protection of the Government or the contractor or when the investigative and claims services of a surety company are desired.

    Affected subparts/sections: 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.

    Technical Amendment:

    Corrects typographical errors in the headings of DFARS sections 209.270-3 and 209.270-4.

    Affected subparts/sections: 209.2

    Proposed Rules:

    Acquisition of Ball and Roller Bearings (DFARS Case 2003-D021)

    Proposed change improves the clarity of domestic source restrictions on the acquisition of ball and roller bearings by addressing only the exceptions, waivers, and waiver authority available to the contracting officer under current law; and by making the restrictions inapplicable to bearings that are commercial components of non-commercial end items or components.

    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.

    Specialized Service Contracting (DFARS Case 2003-D041)

    Proposed change relocates to PGI, procedures for defining the geographic area to be covered by mortuary services contracts, and procedures for distribution of those contracts; deletes a contract clause containing facility requirements for mortuary services, as these requirements are adequately addressed in State law; and deletes unnecessarily restrictive text on contracting for laundry and dry cleaning services.

    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.

    A Microsoft Word format document showing the text proposed for inclusion in PGI is here.

    Advisory and Assistance Services (DFARS Case 2003-D042)

    Proposed change deletes a definition of advisory and assistance services that is used primarily for budgeting and reporting purposes and is adequately addressed in financial management regulations; deletes obsolete text on contracting for engineering and technical services and requesting activity responsibilities; and relocates to PGI, a list of DoD publications that govern the conduct of audits.

    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.

    A Microsoft Word format document showing the text proposed for inclusion in PGI is here.

    Acquisition of Telecommunications Services (DFARS Case 2003-D055)

    Proposed change revises DFARS text on the acquisition of telecommunications services to update terminology, delete obsolete text, and add text addressing DoD’s authority to enter into contracts for telecommunications resources. Adds to PGI, historical documents on delegated authority from the General Services Administration for the procurement of communications services.

    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.

    A PDF document proposed for inclusion in PGI is here.

    Acquisition of Utility Services (DFARS Case 2003-D069)

    Proposed change deletes DFARS text on the use of competitive procedures and delegated authority to acquire utility services, as these issues are adequately addressed in the FAR; deletes obsolete text on preaward contract reviews; and relocates to PGI, procedures and corresponding definitions related to connection charges and award of separate contracts for utility services.

    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.

    A Microsoft Word format document showing the text proposed for inclusion in PGI is here.

    Utility Rates Established by Regulatory Bodies (DFARS Case 2003-D096)

    Proposed change clarifies that utility rates established by independent regulatory bodies may be relied upon as fair and reasonable; and clarifies requirements for use of contract clauses addressing changes in rates for regulated and unregulated utility services.

    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.




    DEFENSE FAR SUPPLEMENT (DFARS) Change Notice 20050207 (Click here to view the whole Change Notice)

    DoD published the following changes to the DFARS on February 7, 2005:

    Final Rules:

    Polyacrylonitrile (PAN) Carbon Fiber – Restriction to Domestic Sources (DFARS Case 2004-D002)

    Extends, from May 31, 2005, to May 31, 2006, the ending date for inclusion of PAN carbon fiber domestic source requirements in solicitations and contracts. Applies to acquisitions for major systems that are not yet in development and demonstration (milestone B as defined in DoD Instruction 5000.2). Revises the prescription for use of the clause at DFARS 252.225-7022, Restriction on Acquisition of PAN Carbon Fiber, to reflect the extension.

    Affected subparts/sections: 225.71

    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.

    Small Business Competitiveness Demonstration Program (DFARS Case 2003-D063)

    Supplements FAR policy that requires a statement on the face page of contracts to identify awards under the Small Business Competitiveness Demonstration Program. Facilitates the use of automated systems by permitting alternative means of identifying a contract as an award under 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.

    Tax Procedures for Overseas Contracts (DFARS Case 2003-D031)

    Relocates text to the new DFARS companion resource, Procedures, Guidance, and Information (PGI), available at http://www.acq.osd.mil/dpap/dars/pgi. The relocated text contains procedures for use by contracting officers in obtaining tax relief and duty-free import privileges for acquisitions conducted in Spain and the United Kingdom.

    Affected subparts/sections: Part 229 Table of Contents; 229.70; PGI 229.70

    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.

    A Microsoft Word format document showing the text added to PGI is here.

    Proposed Rule:

    Extraordinary Contractual Actions (DFARS Case 2003-D048)

    Proposes to update requirements for processing a contractor’s request for extraordinary contract adjustment. The proposed change includes relocation of text to the new DFARS companion resource, Procedures, Guidance, and Information (PGI). The relocated text contains procedures for preparation of records relating to contractor requests for adjustment and for submission of those requests to a contract adjustment board.

    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.

    A Microsoft Word format document showing the text proposed for inclusion in PGI is here.




    DEFENSE FAR SUPPLEMENT (DFARS) Change Notice 20050113 (Click here to view the whole Change Notice)

    DoD published the following change to the DFARS on January 13, 2005:

    Interim Rule

    Free Trade Agreements – Australia and Morocco (DFARS Case 2004-D013)

    Implements new Free Trade Agreements with Australia and Morocco . The Free Trade Agreements waive the applicability of the Buy American Act for some foreign supplies and construction materials from Australia and Morocco , and specify procurement procedures designed to ensure fairness. This DFARS change also updates terminology related to international trade agreements, and updates the list of countries eligible to participate in DoD procurements covered by the trade agreements, in accordance with policy of the U.S. Trade Representative. A corresponding change to the FAR was published in Federal Acquisition Circular 2001-27 on December 28, 2004 .

    Affected subparts/sections: Part 225 Table of Contents; 225.1; 225.4; 225.5; 225.9; 225.75; 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.

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