[Federal Register Volume 70, Number 34 (Tuesday, February 22, 2005)]
[Rules and Regulations]
[Pages 8537-8538]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-3205]


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DEPARTMENT OF DEFENSE

48 CFR Part 228

[DFARS Case 2003-D033]


Defense Federal Acquisition Regulation Supplement; Bonds

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 
the use of fidelity and forgery bonds under DoD contracts. This rule is 
a result of a transformation initiative undertaken by DoD to 
dramatically change the purpose and content of the DFARS.

EFFECTIVE DATE: February 22, 2005.

FOR FURTHER INFORMATION CONTACT: Mr. Euclides Barrera, Defense 
Acquisition Regulations Council, OUSD(AT&L)DPAP(DAR), IMD 3C132, 3062 
Defense Pentagon, Washington, DC 20301-3062. Telephone (703) 602-0296; 
facsimile (703) 602-0350. Please cite DFARS Case 2003-D033.

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 final rule is a result of the DFARS Transformation initiative. 
The rule--

[[Page 8538]]

     Amends DFARS 228.105 to clarify that fidelity and forgery 
bonds are authorized for use under certain circumstances; and
     Amends DFARS 228.106-7(a) to update a cross-reference.
    DoD published a proposed rule at 69 FR 48444 on August 10, 2004. 
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 and clarifies DFARS text, with no substantive 
change in 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 Part 228

    Government procurement.

Michele P. Peterson,
Editor, Defense Acquisition Regulations System.


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Therefore, 48 CFR part 228 is amended as follows:

PART 228-BONDS AND INSURANCE

0
1. The authority citation for 48 CFR part 228 continues to read as 
follows:

0
2. Section 228.105 is revised to read as follows:

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

228.105  Other types of bonds.

    Fidelity and forgery bonds generally are not required but are 
authorized for use when--
    (1) Necessary for the protection of the Government or the 
contractor; or
    (2) The investigative and claims services of a surety company are 
desired.


228.106-7  [Amended]

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3. Section 228.106-7 is amended in paragraph (a) by revising the 
parenthetical to read ``(see FAR 32.112-1(b))''.

[FR Doc. 05-3205 Filed 2-18-05; 8:45 am]
BILLING CODE 5001-08-P