[Federal Register Volume 70, Number 55 (Wednesday, March 23, 2005)]
[Proposed Rules]
[Pages 14629-14630]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-5624]



[[Page 14629]]

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DEPARTMENT OF DEFENSE

48 CFR Part 243

[DFARS Case 2003-D024]


Defense Federal Acquisition Regulation Supplement; Contract 
Modifications

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 contract 
modifications. 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 May 23, 2005, to be considered in 
the formation of the final rule.

ADDRESSES: You may submit comments, identified by DFARS Case 2003-D024, 
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-D024 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 unnecessary text at DFARS 243.102, 243.105(a)(ii), 
243.107, and 243.204-71.
     Delete obsolete text at DFARS 243.105(a)(i).
     Update text at DFARS 243.107-70 for consistency with the 
requirements of the clause at DFARS 252.249-7002, Notification of 
Anticipated Contract Termination or Reduction.
     Clarify procedures at DFARS 243.204-70 for determining if 
a request for equitable contract adjustment meets the dollar threshold 
for requiring contractor certification.
     Delete text at DFARS 243.170, 243.171, and 243.204 
containing procedures for identification of foreign military sales 
requirements, for obligation or deobligation of contract funds, and for 
review and definitization of contract change orders. 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-D024.

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 243

    Government procurement.

Michele P. Peterson,
Editor, Defense Acquisition Regulations System.
    Therefore, DoD proposes to amend 48 CFR part 243 as follows:
    1. The authority citation for 48 CFR part 243 continues to read as 
follows:

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

PART 243--CONTRACT MODIFICATIONS


243.102, 243.105, and 243.107  [Removed]

    2. Sections 243.102, 243.105, and 243.107 are removed.
    3. Section 243.107-70 is amended by revising the second sentence to 
read as follows:


243.107-70  Notification of substantial impact on employment.

    * * * The clause prescribed at 249.7003(c) requires that the 
contractor notify its employees, its subcontractors, and State and 
local officials when a contract modification will have a substantial 
impact on employment.
    4. Sections 243.170 and 243.171 are revised to read as follows:


243.170  Identification of foreign military sale (FMS) requirements.

    Follow the procedures at PGI 243.170 for identifying contract 
modifications that add FMS requirements.


243.171  Obligation or deobligation of funds.

    Follow the procedures at PGI 243.171 when obligating or 
deobligating funds.
    5. Section 243.204 is revised to read as follows:


243.204  Administration.

    Follow the procedures at PGI 243.204 for review and definitization 
of change orders.
    6. Section 243.204-70 is amended by revising paragraph (b) to read 
as follows:


243.204-70  Certification of requests for equitable adjustment.

* * * * *
    (b) To determine if the dollar threshold for requiring 
certification is met, add together the absolute value of each cost 
increase and each cost decrease. See PGI 243.204-70(b) for an example.
* * * * *

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243.204-71  [Removed]

    7. Section 243.204-71 is removed.
[FR Doc. 05-5624 Filed 3-22-05; 8:45 am]
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