[Federal Register Volume 68, Number 162 (Thursday, August 21, 2003)]
[Proposed Rules]
[Pages 50495-50496]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-21312]
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DEPARTMENT OF DEFENSE
48 CFR Part 242
[DFARS Case 2002-D015]
Defense Federal Acquisition Regulation Supplement; Production
Surveillance and Reporting
AGENCY: Department of Defense (DoD).
ACTION: Proposed rule with request for comments.
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SUMMARY: DoD is proposing to amend the Defense Federal Acquisition
Regulation Supplement (DFARS) to eliminate requirements for contract
administration offices to perform production surveillance on
contractors that have only Criticality Designator C (low-urgency)
contracts. This change will permit contract administration offices to
devote more resources to critical and high-risk contracts.
DATES: DoD will consider all comments received by October 20, 2003.
ADDRESSES: Respondents may submit comments directly on the World Wide
Web at http://emissary.acq.osd.mil/dar/dfars.nsf/pubcomm. As an
alternative, respondents may e-mail comments to: [email protected]. Please
cite DFARS Case 2002-D015 in the subject line of e-mailed comments.
Respondents that cannot submit comments using either of the above
methods may submit comments to: Defense Acquisition Regulations
Council, Attn: Mr. Steven Cohen, OUSD(AT&L)DPAP(DAR), IMD 3C132, 3062
Defense Pentagon, Washington, DC 20301-3062; facsimile (703) 602-0350.
Please cite DFARS Case 2002-D015.
At the end of the comment period, interested parties may view
public comments on the World Wide Web at http://emissary.acq.osd.mil/dar/dfars.nsf.
FOR FURTHER INFORMATION CONTACT: Mr. Steven Cohen, (703) 602-0293.
SUPPLEMENTARY INFORMATION:
A. Background
DFARS 242.1104 presently requires the cognizant contract
administration office to conduct a periodic risk assessment of each
contractor to determine the degree of production surveillance needed
for contracts awarded to that contractor, and to develop a production
surveillance plan based on the risk level determined during the risk
assessment. This proposed rule revises DFARS 242.1104 to eliminate
requirements for production surveillance on contractors that have only
Criticality Designator C (low-urgency) contracts, and for monitoring of
progress on any Criticality Designator C contract, unless production
surveillance or contract monitoring is specifically requested by the
contracting officer. This change will enable contract administration
offices to use production surveillance resources in a more effective
manner.
This rule was not subject to Office of Management and Budget review
under Executive Order 12866, dated September 30, 1993.
B. Regulatory Flexibility Act
DoD does not expect this rule to have a significant economic impact
on a substantial number of small entities within the meaning of the
Regulatory Flexibility Act, 5 U.S.C. 601, et seq., because the DFARS
changes in this rule primarily affect the allocation of Government
resources to production surveillance functions. Therefore, DoD has not
performed an initial regulatory flexibility analysis. DoD invites
comments from small businesses and other interested parties. DoD also
will consider comments from small entities concerning the affected
DFARS subpart in accordance with 5 U.S.C. 610. Such comments should be
submitted separately and should cite DFARS Case 2002-D015.
C. Paperwork Reduction Act
The Paperwork Reduction Act does not apply because the rule does
not impose any information collection requirements that require the
approval of the Office of Management and Budget under 44 U.S.C. 3501,
et seq.
List of Subjects in 48 CFR Part 242
Government procurement.
Michele P. Peterson,
Executive Editor, Defense Acquisition Regulations Council.
Therefore, DoD proposes to amend 48 CFR part 242 as follows:
1. The authority citation for 48 CFR part 242 continues to read as
follows:
Authority: 41 U.S.C. 421 and 48 CFR Chapter 1.
PART 242--CONTRACT ADMINISTRATION AND AUDIT SERVICES
2. Section 242.1104 is revised to read as follows:
242.1104 Surveillance requirements.
(a) The cognizant contract administration office (CAO)--
(i) Shall perform production surveillance on all contractors that
have Criticality Designator A or B contracts;
(ii) Shall not perform production surveillance on contractors that
have only Criticality Designator C contracts, unless specifically
requested by the contracting officer; and
(iii) When production surveillance is required, shall--
(A) Conduct a periodic risk assessment of the contractor to
determine the degree of production surveillance needed for all
contracts awarded to that contractor. The risk assessment shall
consider information provided by the contractor and the contracting
officer;
[[Page 50496]]
(B) Develop a production surveillance plan based on the risk level
determined during a risk assessment;
(C) Modify the production surveillance plan to incorporate any
special surveillance requirements for individual contracts, including
any requirements identified by the contracting officer; and
(D) Monitor contract progress and identify potential contract
delinquencies in accordance with the production surveillance plan.
Contracts with Criticality Designator C are exempt from this
requirement unless specifically requested by the contracting officer.
[FR Doc. 03-21312 Filed 8-20-03; 8:45 am]
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