[Federal Register Volume 70, Number 34 (Tuesday, February 22, 2005)]
[Proposed Rules]
[Pages 8562-8563]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-3203]


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DEPARTMENT OF DEFENSE

48 CFR Part 237

[DFARS Case 2003-D042]


Defense Federal Acquisition Regulation Supplement; Advisory and 
Assistance Services

AGENCY: Department of Defense (DoD).

ACTION: Proposed rule with request for comments.

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SUMMARY: DoD is proposing to amend the Defense Federal Acquisition 
Regulation Supplement (DFARS) to update text pertaining to the 
acquisition of advisory and assistance 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-D042, 
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-D042 in the 
subject line of the message.
     Fax: (703) 602-0350.
     Mail: Defense Acquisition Regulations Council, Attn: Ms. 
Robin Schulze, 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. Robin Schulze, (703) 602-0326.

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 the definition of ``advisory and assistance 
services'' at DFARS 237.201. The definition is used primarily for 
budget reporting under 10 U.S.C. 2212, and is adequately addressed in 
financial management regulations.
     Delete obsolete text on contracting for engineering and 
technical services at DFARS 237.203. This text was based on DoD 
Directive 1130.2, Engineering and Technical Sevices--Management 
Control, which was cancelled in 1990.
     Delete a reference listing of DoD publications that govern 
the conduct of audits at DFARS 237.270. This list will be relocated to 
the new DFARS companion resource, Procedures, Guidance, and 
Information, available at http://www.acq.osd.mil/dpap/dars/pgi.
     Delete obsolete text on management controls and requesting 
activity responsibilities at DFARS 237.271 and 237.272. This text was 
based on OMB Circular A-120, Guidelines for the Use of Advisory and 
Assistance Services, which was rescinded in 1993. OMB Circular A-120 
was replaced by OFPP Policy Letter 93-1, Management Oversight of 
Service Contracting, which is implemented in FAR Subpart 37.5.
    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 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 subpart in accordance with 5 U.S.C. 610. Such comments should be 
submitted separately and should cite DFARS Case 2003-D042.

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 237

    Government procurement.

Michele P. Peterson,
Editor, Defense Acquisition Regulations System.
    Therefore, DoD proposes to amend 48 CFR part 237 as follows:

PART 237--SERVICE CONTRACTING

    1. The authority citation for 48 CFR part 237 continues to read as 
follows:

    Authority: 41 U.S.C. 421 and 48 CFR Chapter 1.


237.201 and 237.203  [Removed]

    2. Sections 237.201 and 237.203 are removed.
    3. Section 237.270 is revised to read as follows:


237.270  Acquisition of audit services.

    (a) General policy.
    (1) Do not contract for audit services unless--
    (i) The cognizant DoD audit organization determines that expertise 
required to perform the audit is not available within the DoD audit 
organization; or

[[Page 8563]]

    (ii) Temporary audit assistance is required to meet audit reporting 
requirements mandated by law or DoD regulation.
    (2) See PGI 237.270 for a list of DoD publications that govern the 
conduct of audits.
    (b) Contract period. Except in unusual circumstances, award 
contracts for recurring audit services for a 1-year period with at 
least 2 option years.
    (c) Approvals. Do not issue a solicitation for audit services 
unless the requiring activity provides evidence that the cognizant DoD 
audit organization has approved the statement of work. The requiring 
agency shall obtain the same evidence of approval for subsequent 
material changes to the statement of work.
    (d) Solicitation provisions and contract clauses.
    (1) Use the provision at 252.237-7000, Notice of Special Standards 
of Responsibility, in solicitations for audit services.
    (2) Use the clause at 252.237-7001, Compliance with Audit 
Standards, in solicitations and contracts for audit services.


237.271 and 237.272   [Removed]

    4. Sections 237.271 and 237.272 are removed.

[FR Doc. 05-3203 Filed 2-18-05; 8:45 am]
BILLING CODE 5001-08-P