[Federal Register Volume 71, Number 14 (Monday, January 23, 2006)]
[Rules and Regulations]
[Pages 3416-3417]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 06-565]
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DEPARTMENT OF DEFENSE
48 CFR Part 241
[DFARS Case 2003-D069]
Defense Acquisition Regulations System; Defense Federal
Acquisition Regulation Supplement; Acquisition of Utility Services
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
the acquisition of utility services. This rule is a result of a
transformation initiative undertaken by DoD to dramatically change the
purpose and content of the DFARS.
EFFECTIVE DATE: January 23, 2006.
FOR FURTHER INFORMATION CONTACT: Ms. Robin Schulze, Defense Acquisition
Regulations System, OUSD (AT&L) DPAP (DARS), IMD 3C132, 3062 Defense
Pentagon, Washington, DC 20301-3062. Telephone (703) 602-0326;
facsimile (703) 602-0350. Please cite DFARS Case 2003-D069.
[[Page 3417]]
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 rule--
Deletes text on use of competitive procedures and
delegated authority to acquire utility services at DFARS 241.202 and
241.203, as these issues are adequately addressed in the Federal
Acquisition Regulation;
Deletes obsolete text on preaward contract reviews at
DFARS 241.270; and
Deletes procedures and corresponding definitions related
to connection charges and award of separate contracts for utility
services at DFARS 241.101, 241.202, and 241.205. 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 8566 on February 22, 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 contracting 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 241
Government procurement.
Michele P. Peterson,
Editor, Defense Acquisition Regulations System.
0
Therefore, 48 CFR part 241 is amended as follows:
PART 241--ACQUISITION OF UTILITY SERVICES
0
1. The authority citation for 48 CFR part 241 continues to read as
follows:
Authority: 41 U.S.C. 421 and 48 CFR Chapter 1.
0
2. Section 241.101 is amended by removing the definitions of ``Definite
term contract'', ``Dual service area'', and ``Indefinite term
contract'', and by revising the definition of ``Service power
procurement officer'' to read as follows:
241.101 Definitions.
* * * * *
Service power procurement officer means for the--
(1) Army, the Chief of Engineers;
(2) Navy, the Commander, Naval Facilities Engineering Command;
(3) Air Force, the head of a contracting activity; and
(4) Defense Logistics Agency, the head of a contracting activity.
0
3. Section 241.103 is revised to read as follows:
241.103 Statutory and delegated authority.
(1) The contracting officer may enter into a utility service
contract related to the conveyance of a utility system for a period not
to exceed 50 years (10 U.S.C. 2688(c)(3)).
(2) See PGI 241.103 for statutory authorities and maximum contract
periods for utility and energy contracts.
0
4. Section 241.202 is revised to read as follows:
241.202 Procedures.
(1) Connection and service charges. The Government may pay a
connection charge when required to cover the cost of the necessary
connecting facilities. A connection charge based on the estimated labor
cost of installing and removing the facility shall not include salvage
cost. A lump-sum connection charge shall be no more than the agreed
cost of the connecting facilities less net salvage. The order of
precedence for contractual treatment of connection and service charges
is--
(i) No connection charge.
(ii) Termination liability. Use when an obligation is necessary to
secure the required services. The obligation must be not more than the
agreed connection charge, less any net salvage material costs. Use of a
termination liability instead of a connection charge requires the
approval of the service power procurement officer or designee.
(iii) Connection charge, refundable. Use a refundable connection
charge when the supplier refuses to provide the facilities based on
lack of capital or published rules which prohibit providing up-front
funding. The contract should provide for refund of the connection
charge within five years unless a longer period or omission of the
refund requirement is authorized by the service power procurement
officer or designee.
(iv) Connection and service charges, nonrefundable. The Government
may pay certain nonrefundable, nonrecurring charges including service
initiation charges, a contribution in aid of construction, membership
fees, and charges required by the supplier's rules and regulations to
be paid by the customer. If possible, consider sharing with other than
Government users the use of (and costs for) facilities when large
nonrefundable charges are required.
(2) Construction and labor requirements. Follow the procedures at
PGI 241.202(2) for construction and labor requirements associated with
connection and service charges.
241.203 [Removed]
0
5. Section 241.203 is removed.
0
6. Section 241.205 is revised to read as follows:
241.205 Separate contracts.
Follow the procedures at PGI 241.205 when acquiring utility
services by separate contract.
241.270 [Removed]
0
7. Section 241.270 is removed.
[FR Doc. 06-565 Filed 1-20-06; 8:45 am]
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