[Federal Register Volume 70, Number 86 (Thursday, May 5, 2005)]
[Proposed Rules]
[Pages 23826-23827]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-9006]
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DEPARTMENT OF DEFENSE
48 CFR Part 204
[DFARS Case 2003-D052]
Defense Federal Acquisition Regulation Supplement; Authorization
for Continued Contracts
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 add policy permitting assignment of an
additional identification number to an existing contract for
administrative purposes. 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 July 5, 2005, to be considered in
the formation of the final rule.
ADDRESSES: You may submit comments, identified by DFARS Case 2003-D052,
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-D052 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
[[Page 23827]]
proposed DFARS changes permit DoD contracting activities to assign an
additional identification number to an existing contract by issuing a
separate ``continued'' contract, when continued performance under the
existing contract number is not practical for administrative reasons.
The continued contract would incorporate all prices, terms, and
conditions of the predecessor contract. Use of this procedure is
expected to be limited, but will help to simplify administration,
payment, and closeout of lengthy, complex contracts; and will help in
situations where a contracting activity has exhausted its assigned
series of identification numbers for orders placed against another
activity's contract.
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 proposed
change is administrative. A continued contract does not constitute a
new procurement and will incorporate all prices, terms, and conditions
of the predecessor contract. 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-D052.
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 204
Government procurement.
Michele P. Peterson,
Editor, Defense Acquisition Regulations System.
Therefore, DoD proposes to amend 48 CFR Part 204 as follows:
PART 204--ADMINISTRATIVE MATTERS
1. The authority citation for 48 CFR Part 204 continues to read as
follows:
Authority: 41 U.S.C. 421 and 48 CFR Chapter 1.
2. Section 204.7001 is revised to read as follows:
204.7001 Policy.
(a) Use the uniform PII numbering system prescribed by this subpart
for the solicitation/contract instruments described in 204.7003 and
204.7004.
(b) Retain the basic PII number unchanged for the life of the
instrument unless the conditions in paragraph (c) of this section
exist.
(c)(1) If continued performance under a contract number is not
possible or is not in the Government's best interest solely for
administrative reasons (e.g., when the supplementary PII serial
numbering system is exhausted or for lengthy major systems contracts
with multiple options), the contracting officer may assign an
additional PII number by issuing a separate continued contract to
permit continued contract performance.
(2) A continued contract--
(i) Does not constitute a new procurement;
(ii) Incorporates all prices, terms, and conditions of the
predecessor contract effective at the time of issuance of the continued
contract;
(iii) Operates as a separate contract independent of the
predecessor contract once issued; and
(iv) Shall not evade competition, expand the scope of work, or
extend the period of performance beyond that of the predecessor
contract.
(3) When issuing a continued contract, the contracting officer
shall--
(i) Issue an administrative modification to the predecessor
contract to clearly state that--
(A) Any future awards provided for under the terms of the
predecessor contract (e.g., issuance of orders or exercise of options)
will be accomplished under the continued contract; and
(B) Supplies and services already acquired under the predecessor
contract shall remain solely under that contract for purposes of
Government inspection, acceptance, payment, and closeout; and
(ii) Follow the procedures at PGI 204.7001(c).
[FR Doc. 05-9006 Filed 5-4-05; 8:45 am]
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