[Federal Register Volume 71, Number 36 (Thursday, February 23, 2006)]
[Rules and Regulations]
[Pages 9273-9274]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 06-1632]
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DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System
48 CFR Part 242
[DFARS Case 2003-D050]
Defense Federal Acquisition Regulation Supplement; Contractor
Insurance/Pension Reviews
AGENCY: Defense Acquisition Regulations System, 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
Government review of contractor insurance programs, pension plans, and
other deferred compensation plans. This rule is a result of a
transformation initiative undertaken by DoD to dramatically change the
purpose and content of the DFARS.
DATES: Effective Date: February 23, 2006.
FOR FURTHER INFORMATION CONTACT: Ms. Debra Overstreet, Defense
Acquisition Regulations System, OUSD (AT&L) DPAP (DARS), IMD 3C132,
3062 Defense Pentagon, Washington, DC 20301-3062. Telephone (703) 602-
0310; facsimile (703) 602-0350. Please cite DFARS Case 2003-D050.
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/dars/dfars/transformation/index.htm.
This final rule is a result of the DFARS Transformation initiative.
The DFARS changes--
Update and clarify requirements and responsibilities for
Government review of a contractor's insurance programs, pension plans,
and other deferred compensation plans; and
Delete text addressing procedural matters relating to
these reviews. This text has been relocated to the new DFARS companion
resource, Procedures, Guidance, and Information (PGI), available at
http://www.acq.osd.mil/dpap/dars/pgi.
DoD published a proposed rule at 70 FR 35606 on June 21, 2005. 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 contractor insurance/pension review requirements apply
primarily to large business concerns.
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 242
Government procurement.
Michele P. Peterson,
Editor, Defense Acquisition Regulations System.
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Therefore, 48 CFR part 242 is amended as follows:
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1. The authority citation for 48 CFR part 242 continues to read as
follows:
Authority: 41 U.S.C. 421 and 48 CFR Chapter 1.
PART 242--CONTRACT ADMINISTRATION AND AUDIT SERVICES
242.7300 [Removed]
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2. Section 242.7300 is removed.
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3. Sections 242.7301 through 242.7303 are revised to read as follows:
242.7301 General.
(a) The administrative contracting officer (ACO) is responsible for
determining the allowability of insurance/pension costs in Government
contracts and for determining the need for a Contractor/Insurance
Pension Review (CIPR). Defense Contract Management Agency (DCMA)
insurance/pension specialists and Defense Contract Audit Agency (DCAA)
auditors assist ACOs in making these determinations, conduct CIPRs when
needed, and perform other routine audits as authorized under FAR 42.705
and 52.215-2. A CIPR is a DCMA/DCAA joint review that--
(1) Provides an in-depth evaluation of a contractor's--
(i) Insurance programs;
(ii) Pension plans;
(iii) Other deferred compensation plans; and
(iv) Related policies, procedures, practices, and costs; or
(2) Concentrates on specific areas of the contractor's insurance
programs, pension plans, or other deferred compensation plans.
(b) DCMA is the DoD Executive Agency for the performance of all
CIPRs.
(c) DCAA is the DoD agency designated for the performance of
contract audit responsibilities related to Cost Accounting Standards
administration as described in FAR Subparts 30.2 and 30.6 as they
relate to a contractor's insurance programs,
[[Page 9274]]
pension plans, and other deferred compensation plans.
242.7302 Requirements.
Follow the procedures at PGI 242.7302 to determine if a CIPR is
needed.
242.7303 Responsibilities.
Follow the procedures at PGI 242.7303 when conducting a CIPR.
[FR Doc. 06-1632 Filed 2-22-06; 8:45 am]
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