[Federal Register Volume 70, Number 132 (Tuesday, July 12, 2005)]
[Proposed Rules]
[Pages 39980-39981]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-13306]
[[Page 39980]]
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
48 CFR Parts 225 and 249
[DFARS Case 2003-D046]
Defense Federal Acquisition Regulation Supplement; Contract
Termination
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 pertaining to termination
of contracts. 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 September 12, 2005, to be
considered in the formation of the final rule.
ADDRESSES: You may submit comments, identified by DFARS Case 2003-D046,
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-D046 in the
subject line of the message.
Fax: (703) 602-0350.
Mail: Defense Acquisition Regulations Council, Attn: Ms.
Deborah Tronic, 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. Deborah Tronic, (703) 602-0289.
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--
Relocate text on termination of Canadian Commercial
Corporation contracts, from Part 225, Foreign Acquisition, to a more
appropriate location in Part 249, Termination of Contracts;
Delete unnecessary cross-references; and
Delete text on preparation of contract termination status
reports, completion of forms to document termination settlements,
preparation of settlement negotiation memoranda, and congressional
notification of significant contract terminations. 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 the rule
makes no significant change to DoD contracting policy. 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 subparts in accordance with 5 U.S.C. 610. Such comments
should be submitted separately and should cite DFARS Case 2003-D046.
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 Parts 225 and 249
Government procurement.
Michele P. Peterson,
Editor, Defense Acquisition Regulations System.
Therefore, DoD proposes to amend 48 CFR parts 225 and 249 as
follows:
1. The authority citation for 48 CFR parts 225 and 249 continues to
read as follows:
Authority: 41 U.S.C. 421 and 48 CFR Chapter 1.
PART 225--FOREIGN ACQUISITION
2. Section 225.870-6 is revised to read as follows:
225.870-6 Termination procedures.
When contract termination is necessary, follow the procedures at
249.7000.
PART 249--TERMINATION OF CONTRACTS
3. Sections 249.105-1 and 249.105-2 are revised to read as follows:
249.105-1 Termination status reports.
Follow the procedures at PGI 249.105-1 for reporting status of
termination actions.
249.105-2 Release of excess funds.
See PGI 249.105-2 for guidance on recommending the release of
excess funds.
249.106 through 249.108-4 [Removed]
4. Sections 249.106 through 249.108-4 are removed.
5. Sections 249.109-7 and 249.110 are revised to read as follows:
249.109-7 Settlement by determination.
Follow the procedures at PGI 249.109-7 for settlement of a
convenience termination by determination.
249.110 Settlement negotiation memorandum.
Follow the procedures at PGI 249.110 for preparation of a
settlement negotiation memorandum.
6. Section 249.7000 is amended by revising paragraph (a)(3) and
adding paragraphs (e) through (g) to read as follows:
249.7000 Terminated contracts with Canadian Commercial Corporation.
(a) * * *
(3) The Canadian Supply Manual, Chapter 11, Section 11.146,
available at http://www.pwgsc.gc.ca/acquisitions/text/sm/sm-e.html.
* * * * *
[[Page 39981]]
(e) The Canadian Commercial Corporation will continue administering
contracts that the U.S. contracting officer terminates.
(f) The Canadian Commercial Corporation will settle all Canadian
subcontracts in accordance with the policies, practices, and procedures
of the Canadian Government.
(g) The U.S. agency administering the contract with the Canadian
Commercial Corporation shall provide any services required by the
Canadian Commercial Corporation, including disposal of inventory, for
settlement of any subcontracts placed in the United States. Settlement
of such U.S. subcontracts will be in accordance with this regulation.
7. Section 249.7001 is revised to read as follows:
249.7001 Congressional notification on significant contract
terminations.
Congressional notification is required for any termination
involving a reduction in employment of 100 or more contractor
employees. Proposed terminations must be cleared through department/
agency liaison offices before release of the termination notice, or any
information on the proposed termination, to the contractor. Follow the
procedures at PGI 249.7001 for congressional notification and release
of information.
[FR Doc. 05-13306 Filed 7-11-05; 8:45 am]
BILLING CODE 5001-08-P