[Federal Register Volume 70, Number 118 (Tuesday, June 21, 2005)]
[Proposed Rules]
[Pages 35606-35607]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-12097]
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
48 CFR Part 242
[DFARS Case 2003-D050]
Defense Federal Acquisition Regulation Supplement; Contractor
Insurance/Pension Reviews
AGENCY: Department of Defense (DoD).
ACTION: Proposed rule with request for comments.
-----------------------------------------------------------------------
SUMMARY: DoD is proposing to amend the Defense Federal Acquisition
Regulation Supplement (DFARS) to update text on Government review of
contractor insurance programs, pension plans, and other deferred
compensation plans. This proposed rule is a result of a transformation
initiative undertaken by DoD to dramatically change the purpose and
content of the DFARS.
DATES: Comments on the proposed rule should be submitted in writing to
the address shown below on or before August 22, 2005, to be considered
in the formation of the final rule.
ADDRESSES: You may submit comments, identified by DFARS Case 2003-D050,
using any of the following methods:
Federal eRulemaking Portal: http://www.regulations.gov.
Follow the instructions for submitting comments.
Defense Acquisition Regulations Web Site: http://emissary.acq.osd.mil/dar/dfars.nsf/pubcomm. Follow the instructions for
submitting comments.
E-mail: [email protected]. Include DFARS Case 2003-D050 in the
subject line of the message.
Fax: (703) 602-0350.
Mail: Defense Acquisition Regulations Council, Attn: Ms.
Amy Williams, OUSD(AT&L)DPAP(DAR), IMD 3C132, 3062 Defense Pentagon,
Washington, DC 20301-3062.
Hand Delivery/Courier: Defense Acquisition Regulations
Council, Crystal Square 4, Suite 200A, 241 18th Street, Arlington, VA
22202-3402.
All comments received will be posted to http://emissary.acq.osd.mil/dar/dfars.nsf.
FOR FURTHER INFORMATION CONTACT: Ms. Amy Williams, (703) 602-0328.
SUPPLEMENTARY INFORMATION:
A. Background
DFARS Transformation is a major DoD initiative to dramatically
change the purpose and content of the DFARS. The objective is to
improve the efficiency and effectiveness of the acquisition process,
while allowing the acquisition workforce the flexibility to innovate.
The transformed DFARS will contain only requirements of law, DoD-wide
policies, delegations of FAR authorities, deviations from FAR
requirements, and policies/procedures that have a significant effect
beyond the internal operating procedures of DoD or a significant cost
or administrative impact on contractors or offerors. Additional
information on the DFARS Transformation initiative is available at
http://www.acq.osd.mil/dpap/dfars/transf.htm.
This proposed rule is a result of the DFARS Transformation
initiative. The proposed DFARS changes--
Update and clarify requirements and responsibilities for
Government review of a contractor's insurance programs, pension plans,
and other deferred compensation plans; and
Delete text addressing procedural matters relating to
these reviews. This text will be relocated to the new DFARS companion
resource, Procedures, Guidance, and Information (PGI), available at
http://www.acq.osd.mil/dpap/dars/pgi.
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 contractor
insurance/pension review requirements apply primarily to large business
concerns. 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 2003-D050.
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,
Editor, Defense Acquisition Regulations System.
Therefore, DoD proposes to amend 48 CFR Part 242 as follows:
PART 242--CONTRACT ADMINISTRATION AND AUDIT SERVICES
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.
242.7300 [Removed]
2. Section 242.7300 is removed.
3. Sections 242.7301 through 242.7303 are revised to read as
follows:
242.7301 General.
(a) The administrative contracting officer (ACO) is responsible for
determining the allowability of insurance/pension costs in Government
contracts and for determining the need for a Contractor/Insurance
Pension Review (CIPR). Defense Contract Management Agency (DCMA)
[[Page 35607]]
insurance/pension specialists and Defense Contract Audit Agency (DCAA)
auditors assist ACOs in making these determinations, conduct CIPRs when
needed, and perform other routine audits as authorized under FAR 42.705
and 52.215-2. A CIPR is a DCMA/DCAA joint review that--
(1) Provides an in-depth evaluation of a contractor's--
(i) Insurance programs;
(ii) Pension plans;
(iii) Other deferred compensation plans; and
(iv) Related policies, procedures, practices, and costs; or
(2) Concentrates on specific areas of the contractor's insurance
programs, pension plans, or other deferred compensation plans.
(b) DCMA is the DoD Executive Agency for the performance of all
CIPRs.
(c) DCAA is the DoD agency designated for the performance of
contract audit responsibilities related to Cost Accounting Standards
administration as described in FAR Subparts 30.2 and 30.6 as they
relate to a contractor's insurance program, pension plans, and other
deferred compensation plans.
242.7302 Requirements.
Follow the procedures at PGI 242.7302 to determine if a CIPR is
needed.
242.7303 Responsibilities.
Follow the procedures at PGI 242.7303 when conducting a CIPR.
[FR Doc. 05-12097 Filed 6-20-05; 8:45 am]
BILLING CODE 5001-08-P