[Federal Register Volume 71, Number 152 (Tuesday, August 8, 2006)]
[Rules and Regulations]
[Pages 44928-44929]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-12778]
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DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System
48 CFR Part 242
[DFARS Case 2003-D051]
Defense Federal Acquisition Regulation Supplement; Contract
Administration Functions
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 addressing
functions performed by DoD contract administration offices. 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: August 8, 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-D051.
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 revises the list of contract administration functions at DFARS
242.302 to--
[cir] Clarify responsibilities for payment administration and for
verification of contractor compliance with earned value management
system requirements;
[cir] Delete obsolete text on mobilization production planning
surveys; and
[cir] Delete procedures for designation of contract payment
offices. Text on this subject has been relocated to the 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 67955 on November 9, 2005.
One respondent submitted comments on the proposed rule. The respondent
stated that (1) there is a lack of clear regulatory authority for
acceptance other than FAR 46.502, which assigns acceptance
responsibility to contracting officers; (2) acceptance is not one of
the contract administration functions at FAR 42.302; and (3) FAR
46.502, where it refers to delegation of responsibility for acceptance
to a contract administration office, errs in its reference to FAR
42.202(g), since refusal of a contract administration delegation is
exclusive of actions inferred in performing acceptance when an
administration office is assigned. The respondent recommended that,
since acceptance actions can be performed on behalf of a contracting
officer when a contract is not assigned for administration (e.g.,
destination acceptance) by an activity other than a contract
administration office, DFARS 242.302 should provide coverage of
acceptance responsibility when a contracting officer intends that a
contract administration office perform acceptance.
DoD does not agree that DFARS 242.302 should be amended to provide
coverage of acceptance responsibility when a contracting officer
intends that a contract administration office perform acceptance. FAR
42.302 lists the functions that are normally delegated to a contract
administration office. Even though acceptance is not specifically
mentioned, it is covered under FAR 42.302(a)(38), which provides for
ensuring contractor compliance with contractual quality assurance
requirements and references FAR Part 46. In particular, FAR 46.502
provides for delegation of responsibility for acceptance to a contract
administration office. However, DoD recognizes that there are times
when a contract administration office has been assigned responsibility
for ensuring contractor compliance with contract quality assurance
requirements, but where actual product acceptance is performed by an
activity other than the contract administration office (i.e.,
destination acceptance). DoD has established a separate DFARS Case,
2005-D024, to address this situation.
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 addresses internal DoD responsibilities for
performance of contract administration functions.
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:
PART 242--CONTRACT ADMINISTRATION AND AUDIT SERVICES
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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.
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2. Section 242.302 is revised to read as follows:
242.302 Contract administration functions.
(a)(4) Also, review and evaluate--
(A) Contractor estimating systems (see FAR 15.407-5); and
(B) Contractor material management and accounting systems under
subpart 242.72.
[[Page 44929]]
(7) See 242.7502 for ACO responsibilities with regard to receipt of
an audit report identifying significant accounting system or related
internal control deficiencies.
(9) For additional contract administration functions related to
IR&D/B&P projects performed by major contractors, see 242.771-3(a).
(12) Also perform all payment administration in accordance with any
applicable payment clauses.
(13)(A) Do not delegate the responsibility to make payments to the
Defense Contract Management Agency (DCMA).
(B) Follow the procedures at PGI 242.302(a)(13)(B) for designation
of payment offices.
(39) See 223.370 for contract administration responsibilities on
contracts for ammunition and explosives.
(67) Also support program offices and buying activities in
precontractual efforts leading to a solicitation or award.
(S-70) Serve as the single point of contact for all Single Process
Initiative (SPI) Management Council activities. The ACO shall negotiate
and execute facilitywide class modifications and agreements for SPI
processes, when authorized by the affected components.
(S-71) DCMA has responsibility for reviewing earned value
management system (EVMS) plans and for verifying initial and continuing
contractor compliance with DoD EVMS criteria. The contracting officer
shall not retain this function.
(b)(S-70) Issue, negotiate, and execute orders under basic ordering
agreements for overhaul, maintenance, and repair.
[FR Doc. E6-12778 Filed 8-7-06; 8:45 am]
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