DFARS Change Notice 20021122

DoD published 2 proposed and 2 final DFARS rules in the Federal Register on November 22, 2002. The final rules apply to solicitations issued on or after November 22, 2002, except as otherwise permitted by FAR 1.108(d). The proposed rules solicit public comments, which are due by January 21, 2003. A summary of each rule follows:

Final Rules:

Foreign Military Sales Customer Involvement (DFARS Case 2002-D005)

Changes the DFARS to encourage the participation of foreign military sales (FMS) customers in the development of contracts that DoD awards on their behalf. Generally, the degree of FMS customer participation in contract negotiations will be left to the discretion of the contracting officer after consultation with the contractor. However, FMS customer observation or participation in negotiations involving cost or pricing data will require processing of a deviation in accordance with DFARS Subpart 201.4.

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

Technical Amendments

Changes the DFARS to update activity names and addresses, cross-references, and clause dates, and to correct the numbering sequence in Subpart 216.5.

Affected subparts/sections: 216.5; 251.1; 252.212; Appendix G, Parts 2 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.

Proposed Rules:

Provisional Award Fee Payments (DFARS Case 2001-D013)

Proposes to add policy on the use of provisional award fee payments under cost-plus-award-fee contracts. A provisional award fee payment is a payment made to a contractor within an evaluation period, prior to an interim or final evaluation for that period. The provisional payments would be based on (1) successful evaluations for prior evaluation periods, and (2) the fee determining official’s expectation that payment of provisional fee amounts will not reduce the overall effectiveness of the award fee incentive.

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.

Indian Incentive Clause – Contract Types (DFARS Case 2002-D013)

Proposes to revise the clause at DFARS 252.226-7001, Utilization of Indian Organizations and Indian-Owned Economic Enterprises, to clarify that the clause may be used in all contract types. The clause permits incentive payments to contractors, and subcontractors at any tier, that use Indian organizations and Indian-owned economic enterprises as subcontractors.

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.