[Federal Register Volume 70, Number 216 (Wednesday, November 9, 2005)]
[Rules and Regulations]
[Pages 67919-67921]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-22103]
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DEPARTMENT OF DEFENSE
48 CFR Parts 242 and 252
[DFARS Case 2003-D023]
Defense Federal Acquisition Regulation Supplement; Contract
Administration
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 update text pertaining to
contract administration and audit services. This rule is a result of a
transformation initiative undertaken by
[[Page 67920]]
DoD to dramatically change the purpose and content of the DFARS.
EFFECTIVE DATE: November 9, 2005.
FOR FURTHER INFORMATION CONTACT: Ms. Deborah Tronic, Defense
Acquisition Regulations System, OUSD(AT&L)DPAP(DAR), IMD 3C132, 3062
Defense Pentagon, Washington, DC 20301-3062. Telephone (703) 602-0289;
facsimile (703) 602-0350. Please cite DFARS Case 2003-D023.
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/dars/dfars/transformation/index.htm.
This final rule is a result of the DFARS Transformation initiative.
The rule:
[cir] Deletes text that is unnecessary or duplicative of FAR policy
in the areas of visits to contractor facilities; conduct of postaward
conferences; review and negotiation of contractor costs and billing
rates; use of contractor past performance information; and contractor
internal controls.
[cir] Deletes text on providing contract administration services to
foreign governments and international organizations; coordination
between corporate and individual administrative contracting officers;
processing of contractor novation and change-of-name agreements;
processing of voluntary refunds from contractors; and providing
technical representatives at contractor facilities. This text has been
relocated to the new DFARS companion resource, Procedures, Guidance,
and Information (PGI), available at http://www.acq.osd.mil/dpap/dars/pgi.
[cir] Updates terminology at DFARS 242.202(a)(i)(D).
[cir] Updates the clause at DFARS 252.242-7004, Material Management
and Accounting Systems, for consistency with the policy found at DFARS
242.7203(d)(5) regarding corrective action for a contractor's failure
to make adequate progress in correcting system deficiencies.
DoD published a proposed rule at 70 FR 19043 on April 12, 2005. DoD
received no comments on the proposed rule. 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 rule updates, clarifies, and streamlines DFARS text, but
makes no significant change to DoD contracting policy.
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 242 and 252
Government procurement.
Michele P. Peterson,
Editor, Defense Acquisition Regulations System.
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Therefore, 48 CFR parts 242 and 252 are amended as follows:
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1. The authority citation for 48 CFR parts 242 and 252 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 242.002 is amended by revising paragraph (S-70)(iii) to read
as follows:
242.002 Interagency agreements.
* * * * *
(S-70) * * *
(iii) Other foreign governments (including Canadian government
organizations other than SSC) and international organizations send
their requests for contract administration services to the DoD Central
Control Point (CCP) at the Headquarters, Defense Contract Management
Agency, International and Federal Business Team. Contract
administration offices provide services only upon request from the CCP.
The CCP shall follow the procedures at PGI 242.002(S-70)(iii).
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3. Section 242.202 is amended by revising paragraph (a)(i)(D) to read
as follows:
242.202 Assignment of contract administration.
(a)(i) * * *
(D) Management and professional support services;
* * * * *
Subpart 242.4--[Removed]
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4. Subpart 242.4 is removed.
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5. Section 242.503-2 is revised to read as follows:
242.503-2 Post-award conference procedure.
DD Form 1484, Post-Award Conference Record, may be used in
conducting the conference and in preparing the conference report.
242.503-3, 242.570, and 242.704 [Removed]
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6. Sections 242.503-3, 242.570, and 242.704 are removed.
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7. Section 242.705-1 is revised to read as follows:
242.705-1 Contracting officer determination procedure.
(a) Applicability and responsibility. (1) The corporate
administrative contracting officer and individual administrative
contracting officers shall jointly decide how to conduct negotiations.
Follow the procedures at PGI 242.705-1(a)(1) when negotiations are
conducted on a coordinated basis.
242.705-2 [Amended]
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8. Section 242.705-2 is amended in paragraph (b)(2)(iii) by removing
the last sentence.
242.705-3, 242.801, and 242.1202 [Removed]
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9. Sections 242.705-3, 242.801, and 242.1202 are removed.
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10. Section 242.1203 is revised to read as follows:
242.1203 Processing agreements.
The responsible contracting officer shall process and execute
novation and change-of-name agreements in accordance with the
procedures at PGI 242.1203.
Subpart 242.15--[Removed]
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11. Subpart 242.15 is removed.
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12. Section 242.7100 is revised to read as follows:
242.7100 General.
A voluntary refund is a payment or credit (adjustment under one or
more
[[Page 67921]]
contracts or subcontracts) to the Government from a contractor or
subcontractor that is not required by any contractual or other legal
obligation. Follow the procedures at PGI 242.7100 for voluntary
refunds.
242.7101 and 242.7102 [Removed]
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13. Sections 242.7101 and 242.7102 are removed.
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14. Sections 242.7400 and 242.7401 are revised to read as follows:
242.7400 General.
(a) Program managers may conclude that they need technical
representation in contractor facilities to perform non-contract
administration service (CAS) technical duties and to provide liaison,
guidance, and assistance on systems and programs. In these cases, the
program manager may assign technical representatives under the
procedures in 242.7401.
(b) A technical representative is a representative of a DoD
program, project, or system office performing non-CAS technical duties
at or near a contractor facility. A technical representative is not--
(1) A representative of a contract administration or contract audit
component; or
(2) A contracting officer's representative (see 201.602).
242.7401 Procedures.
When the program, project, or system manager determines that a
technical representative is required, follow the procedures at PGI
242.7401.
242.7500 and 242.7501 [Removed]
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15. Sections 242.7500 and 242.7501 are removed.
242.7502 and 242.7503 [Redesignated]
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16. Sections 242.7502 and 242.7503 are redesignated as sections
242.7501 and 242.7502, respectively.
PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
252.242-7000 [Removed and Reserved]
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17. Section 252.242-7000 is removed and reserved.
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18. Section 252.242-7004 is amended by revising the clause date and
adding paragraph (d)(4) to read as follows:
252.242-7004 Material Management and Accounting System.
* * * * *
MATERIAL MANAGEMENT AND ACCOUNTING SYSTEM (NOV 2005)
* * * * *
(d) * * *
(4) If the contractor fails to make adequate progress, the ACO must
take further action. The ACO may--
(i) Elevate the issue to higher level management;
(ii) Further reduce progress payments and/or disallow costs on
vouchers;
(iii) Notify the contractor of the inadequacy of the contractor's
cost estimating system and/or cost accounting system; and
(iv) Issue cautions to contracting activities regarding the award
of future contracts.
* * * * *
[FR Doc. 05-22103 Filed 11-8-05; 8:45 am]
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