[Federal Register Volume 70, Number 34 (Tuesday, February 22, 2005)]
[Proposed Rules]
[Pages 8566-8567]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-3198]
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
48 CFR Part 241
[DFARS Case 2003-D069]
Defense Federal Acquisition Regulation Supplement; Acquisition of
Utility Services
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 the
acquisition of utility services. 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 April 25, 2005, to be considered
in the formation of the final rule.
ADDRESSES: You may submit comments, identified by DFARS Case 2003-D069,
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-D069 in the
subject line of the message.
Fax: (703) 602-0350.
Mail: Defense Acquisition Regulations Council, Attn: Ms.
Michele Peterson, 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. Michele Peterson, (703) 602-0311.
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 changes--
Delete text on use of competitive procedures and delegated
authority to acquire utility services at DFARS 241.202 and 241.203, as
these issues are adequately addressed in the Federal Acquisition
Regulation;
Delete obsolete text on preaward contract reviews at DFARS
241.270; and
Delete procedures and corresponding definitions related to
connection charges and award of separate contracts for utility services
at DFARS 241.101, 241.202, and 241.205. Text on this subject 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
deletes DFARS text that is obsolete or duplicative of FAR policy or
that addresses DoD procedural matters. 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-D069.
[[Page 8567]]
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 241
Government procurement.
Michele P. Peterson,
Editor, Defense Acquisition Regulations System.
Therefore, DoD proposes to amend 48 CFR part 241 as follows:
1. The authority citation for 48 CFR part 241 continues to read as
follows:
Authority: 41 U.S.C. 421 and 48 CFR chapter 1.
PART 241--ACQUISITION OF UTILITY SERVICES
2. Section 241.101 is amended by removing the definitions of
``Definite term contract'', ``Dual service area'', and ``Indefinite
term contract'', and by revising the definition of ``Service power
procurement officer'' to read as follows:
241.101 Definitions.
* * * * *
Service power procurement officer means for the--
(1) Army, the Chief of Engineers;
(2) Navy, the Commander, Naval Facilities Engineering Command;
(3) Air Force, the head of a contracting activity; and
(4) Defense Logistics Agency, the head of a contracting activity.
3. Section 241.103 is revised to read as follows:
241.103 Statutory and delegated authority.
(1) The contracting officer may enter into a utility service
contract related to the conveyance of a utility system for a period not
to exceed 50 years (10 U.S.C. 2688(c)(3)).
(2) See PGI 241.103 for statutory authorities and maximum contract
periods for utility and energy contracts.
4. Section 241.202 is revised to read as follows:
241.202 Procedures.
(1) Connection and service charges. The Government may pay a
connection charge when required to cover the cost of the necessary
connecting facilities. A connection charge based on the estimated labor
cost of installing and removing the facility shall not include salvage
cost. A lump-sum connection charge shall be no more than the agreed
cost of the connecting facilities less net salvage. The order of
precedence for contractual treatment of connection and service charges
is--
(i) No connection charge.
(ii) Termination liability. Use when an obligation is necessary to
secure the required services. The obligation must be not more than the
agreed connection charge, less any net salvage material costs. Use of a
termination liability instead of a connection charge requires the
approval of the service power procurement officer or designee.
(iii) Connection charge, refundable. Use a refundable connection
charge when the supplier refuses to provide the facilities based on
lack of capital or published rules which prohibit providing up-front
funding. The contract should provide for refund of the connection
charge within five years unless a longer period or omission of the
refund requirement is authorized by the service power procurement
officer or designee.
(iv) Connection and service charges, nonrefundable. The Government
may pay certain nonrefundable, nonrecurring charges including service
initiation charges, a contribution in aid of construction, membership
fees, and charges required by the supplier's rules and regulations to
be paid by the customer. If possible, consider sharing with other than
Government users the use of (and costs for) facilities when large
nonrefundable charges are required.
(2) Construction and labor requirements. Follow the procedures at
PGI 241.202(2) for construction and labor requirements associated with
connection and service charges.
241.203 [Removed]
5. Section 241.203 is removed.
6. Section 241.205 is revised to read as follows:
241.205 Separate contracts.
Follow the procedures at PGI 241.205 when acquiring utility
services by separate contract.
241.270 [Removed]
7. Section 241.270 is removed.
[FR Doc. 05-3198 Filed 2-18-05; 8:45 am]
BILLING CODE 5001-08-P