[Federal Register Volume 68, Number 178 (Monday, September 15, 2003)]
[Proposed Rules]
[Pages 53946-53947]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-23341]


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DEPARTMENT OF DEFENSE

48 CFR Part 246

[DFARS Case 2002-D032]


Defense Federal Acquisition Regulation Supplement; Government 
Source Inspection Requirements

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 Government source inspection 
requirements for contracts or delivery orders valued below $250,000, 
unless certain conditions exist. This change will permit DoD contract 
administration offices to devote more resources to high-risk contracts.

DATES: DoD will consider all comments received by November 14, 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-D032 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-D032.
    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

    This proposed rule adds policy at DFARS 246.402 and 246.404 to 
eliminate requirements for Government quality assurance at source on 
contracts or delivery orders valued below $250,000, unless (1) mandated 
by DoD regulation, (2) required by a memorandum of agreement between 
the acquiring department or agency and the contract administration 
agency, or (3) the contracting officer determines that certain 
conditions exist. The objective is to focus limited DoD contract 
management resources on high-risk areas, while providing flexibility 
for exceptions where needed.
    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 contract quality assurance functions. Therefore,

[[Page 53947]]

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-D032.

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 246

    Government procurement.

Michele P. Peterson,
Executive Editor, Defense Acquisition Regulations Council.
    Therefore, DoD proposes to amend 48 CFR Part 246 as follows:
    1. The authority citation for 48 CFR Part 246 continues to read as 
follows:

    Authority: 41 U.S.C. 421 and 48 CFR Chapter 1.

PART 246--QUALITY ASSURANCE

    2. Section 246.402 is added to read as follows:


246.402  Government contract quality assurance at source.

    Do not require Government contract quality assurance at source for 
contracts or delivery orders valued below $250,000, unless--
    (1) Mandated by DoD regulation;
    (2) Required by a memorandum of agreement between the acquiring 
department or agency and the contract administration agency; or
    (3) The contracting officer determines that--
    (i) Contract technical requirements are significant (e.g., the 
technical requirements include drawings, test procedures, or 
performance requirements);
    (ii) Critical product features/characteristics or specific 
acquisition concerns have been identified; and
    (iii) The contract is being awarded to--
    (A) A manufacturer or producer; or
    (B) A non-manufacturer or non-producer and specific Government 
verifications have been identified as necessary and feasible to 
perform.
    3. Section 246.404 is added to read as follows:


246.404  Government contract quality assurance for acquisitions at or 
below the simplified acquisition threshold.

    Do not require Government contract quality assurance at source for 
contracts or delivery orders valued at or below the simplified 
acquisition threshold unless the criteria at 246.402 have been met.

[FR Doc. 03-23341 Filed 9-12-03; 8:45 am]
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