[Federal Register Volume 71, Number 92 (Friday, May 12, 2006)]
[Rules and Regulations]
[Pages 27644-27645]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 06-4467]
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DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System
48 CFR Parts 225 and 249
[DFARS Case 2003-D046]
Defense Federal Acquisition Regulation Supplement; Contract
Termination
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
termination of 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: May 12, 2006.
FOR FURTHER INFORMATION CONTACT: Ms. Deborah Tronic, Defense
Acquisition Regulations System, OUSD(AT&L)DPAP(DARS), IMD 3C132, 3062
Defense Pentagon, Washington, DC 20301-3062. Telephone (703) 602-0289;
facsimile (703) 602-0350. Please cite DFARS Case 2003-D046.
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--
Relocate text on termination of Canadian Commercial
Corporation contracts, from part 225, Foreign Acquisition, to a more
appropriate location in part 249, Termination of Contracts;
Delete unnecessary cross-references; and
Delete text on preparation of contract termination status
reports, completion of forms to document termination settlements,
preparation of settlement negotiation memoranda, and congressional
notification of significant contract terminations. Text on these
subjects 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 39980 on July 12, 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 the rule updates and streamlines DFARS text, but makes no
significant change to DoD policy regarding termination of contracts.
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.
[[Page 27645]]
List of Subjects in 48 CFR Parts 225 and 249
Government procurement.
Michele P. Peterson,
Editor, Defense Acquisition Regulations System.
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Therefore, 48 CFR parts 225 and 249 are amended as follows:
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1. The authority citation for 48 CFR parts 225 and 249 continues to
read as follows:
Authority: 41 U.S.C. 421 and 48 CFR Chapter 1.
PART 225--FOREIGN ACQUISITION
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2. Section 225.870-6 is revised to read as follows:
225.870-6 Termination procedures.
When contract termination is necessary, follow the procedures at
249.7000.
PART 249--TERMINATION OF CONTRACTS
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3. Sections 249.105-1 and 249.105-2 are revised to read as follows:
249.105-1 Termination status reports.
Follow the procedures at PGI 249.105-1 for reporting status of
termination actions.
249.105-2 Release of excess funds.
See PGI 249.105-2 for guidance on recommending the release of
excess funds.
249.106 through 249.108-4 [Removed]
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4. Sections 249.106 through 249.108-4 are removed.
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5. Sections 249.109-7 and 249.110 are revised to read as follows:
249.109-7 Settlement by determination.
Follow the procedures at PGI 249.109-7 for settlement of a
convenience termination by determination.
249.110 Settlement negotiation memorandum.
Follow the procedures at PGI 249.110 for preparation of a
settlement negotiation memorandum.
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6. Section 249.7000 is amended by revising paragraph (a)(3) and adding
paragraphs (e) through (g) to read as follows:
249.7000 Terminated contracts with Canadian Commercial Corporation.
(a) * * *
(3) The Canadian Supply Manual, Chapter 11, Section 11.146,
available at http://www.pwgsc.gc.ca/acquisitions/text/sm/sm-e.html.
* * * * *
(e) The Canadian Commercial Corporation will continue administering
contracts that the U.S. contracting officer terminates.
(f) The Canadian Commercial Corporation will settle all Canadian
subcontracts in accordance with the policies, practices, and procedures
of the Canadian Government.
(g) The U.S. agency administering the contract with the Canadian
Commercial Corporation shall provide any services required by the
Canadian Commercial Corporation, including disposal of inventory, for
settlement of any subcontracts placed in the United States. Settlement
of such U.S. subcontracts will be in accordance with this regulation.
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7. Section 249.7001 is revised to read as follows:
249.7001 Congressional notification on significant contract
terminations.
Congressional notification is required for any termination
involving a reduction in employment of 100 or more contractor
employees. Proposed terminations must be cleared through department/
agency liaison offices before release of the termination notice, or any
information on the proposed termination, to the contractor. Follow the
procedures at PGI 249.7001 for congressional notification and release
of information.
[FR Doc. 06-4467 Filed 5-11-06; 8:45 am]
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