[Federal Register: June 8, 2004 (Volume 69, Number 110)]
[Rules and Regulations]
[Page 31912]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr08jn04-21]
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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: Final rule.
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SUMMARY: DoD has issued a final rule amending 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.
EFFECTIVE DATE: June 8, 2004.
FOR FURTHER INFORMATION CONTACT: Mr. Steven Cohen, Defense Acquisition
Regulations Council, OUSD(AT&L)DPAP(DAR), IMD 3C132, 3062 Defense
Pentagon, Washington, DC 20301-3062. Telephone (703) 602-0293;
facsimile (703) 602-0350. Please cite DFARS Case 2002-D015.
SUPPLEMENTARY INFORMATION:
A. Background
This final rule revises DFARS 242.1104 to eliminate requirements
for contract administration offices to perform 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.
DoD published a proposed rule at 68 FR 50495 on August 21, 2003.
One respondent submitted comments on the proposed rule. The respondent
disagreed with the proposed change, because a Criticality Designator C
contract could become more critical at a later date. DoD agrees that
this situation could occur. However, DoD does not believe the general
policy should be driven by exceptional situations. The rule provides
flexibility for contracting officers to request production surveillance
and contract monitoring when deemed necessary. Therefore, DoD has
adopted the proposed rule as a final rule without change.
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 certifies that this final rule will not 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.
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.
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Therefore, 48 CFR Part 242 is amended as follows:
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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
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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;
(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. 04-12932 Filed 6-7-04; 8:45 am]
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