[Federal Register Volume 73, Number 156 (Tuesday, August 12, 2008)]
[Rules and Regulations]
[Pages 46814-46816]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-18504]
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DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System
48 CFR Parts 203, 250, and 252
RIN 0750-AG01
Defense Federal Acquisition Regulation Supplement; Conforming
Changes--Standards of Conduct and Extraordinary Contractual Actions
(DFARS Case 2008-D004)
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
contractor standards of conduct and the handling of extraordinary
contractual actions. The DFARS changes are consistent with changes made
to the Federal Acquisition Regulation.
DATES: Effective Date: August 12, 2008.
FOR FURTHER INFORMATION CONTACT: Ms. Amy Williams, Defense Acquisition
Regulations System, OUSD (AT&L) DPAP (DARS), IMD 3D139, 3062 Defense
Pentagon, Washington, DC 20301-3062. Telephone 703-602-0328; facsimile
703-602-7887. Please cite DFARS Case 2008-D004.
SUPPLEMENTARY INFORMATION:
A. Background
This final rule updates DFARS text for consistency with changes
made to the Federal Acquisition Regulation (FAR) as follows:
[cir] Removes DFARS Subpart 203.70, Contractor Standards of
Conduct, and the corresponding contract clause at 252.203-7002, since
policy on this subject was added to the FAR at 72 FR 65873 on November
23, 2007.
[cir] Adds DFARS 203.1004 to provide address information for use in
completion of the clause at FAR 52.203-14, Display of Hotline
Poster(s).
[cir] Revises DFARS Part 250 for consistency with the structure of
FAR Part 50, as revised at 72 FR 63027 on November 7, 2007. The DFARS
changes update headings, numbering, and cross-references, and reflect
the dollar threshold currently specified in the FAR with regard to
delegation of authority for approval of extraordinary contractual
actions.
This rule was not subject to Office of Management and Budget review
under Executive Order 12866, dated September 30, 1993.
[[Page 46815]]
B. Regulatory Flexibility Act
This rule will not have a significant cost or administrative impact
on contractors or offerors, or a significant effect beyond the internal
operating procedures of DoD. Therefore, publication for public comment
under 41 U.S.C. 418b is not required. However, DoD will consider
comments from small entities concerning the affected DFARS subparts in
accordance with 5 U.S.C. 610. Such comments should cite DFARS Case
2008-D004.
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 Parts 203, 250, and 252
Government procurement.
Michele P. Peterson,
Editor, Defense Acquisition Regulations System.
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Therefore, 48 CFR parts 203, 250, and 252 are amended as follows:
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1. The authority citation for 48 CFR parts 203, 250, and 252 continues
to read as follows:
Authority: 41 U.S.C. 421 and 48 CFR Chapter 1.
PART 203--IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF
INTEREST
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2. Subpart 203.10 is added to read as follows:
Subpart 203.10--Contractor Code of Business Ethics and Conduct
203.1004 Contract clauses.
(b)(2)(ii) Insert the following address in paragraph (b)(3) of the
clause at FAR 52.203-14, Display of Hotline Poster(s): DoD Inspector
General, ATTN: Defense Hotline, 400 Army Navy Drive, Washington, DC
22202-2884.
Subpart 203.70 [Removed]
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3. Subpart 203.70 is removed.
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4. Part 250 is revised to read as follows:
PART 250--EXTRAORDINARY CONTRACTUAL ACTIONS AND THE SAFETY ACT
Subpart 250.1--Extraordinary Contractual Actions
Sec.
250.100 Definitions.
250.101 General.
250.101-2 Policy.
250.101-2-70 Limitations on payment.
250.101-3 Records.
250.102 Delegation of and limitations on exercise of authority.
250.102-1 Delegation of authority.
250.102-1-70 Delegations.
250.102-2 Contract adjustment boards.
250.103 Contract adjustments.
250.103-3 Contract adjustment.
250.103-5 Processing cases.
250.103-6 Disposition.
250.104 Residual powers.
250.104-3 Special procedures for unusually hazardous or nuclear
risks.
250.104-3-70 Indemnification under contracts involving both research
and development and other work.
Authority: 41 U.S.C. 421 and 48 CFR Chapter 1.
Subpart 250.1--Extraordinary Contractual Actions
250.100 Definitions.
Secretarial level, as used in this subpart, means--
(1) An official at or above the level of an Assistant Secretary (or
Deputy) of Defense or of the Army, Navy, or Air Force; and
(2) A contract adjustment board established by the Secretary
concerned.
250.101 General.
250.101-2 Policy.
250.101-2-70 Limitations on payment.
See 10 U.S.C. 2410(b) for limitations on Congressionally directed
payment of a request for equitable adjustment to contract terms or a
request for relief under Public Law 85-804.
250.101-3 Records.
Follow the procedures at PGI 250.101-3 for preparation of records.
250.102 Delegation of and limitations on exercise of authority.
250.102-1 Delegation of authority.
(b) Authority under FAR 50.104 to approve actions obligating
$55,000 or less may not be delegated below the level of the head of the
contracting activity.
(d) In accordance with the acquisition authority of the Under
Secretary of Defense (Acquisition, Technology, and Logistics (USD
(AT&L)) under 10 U.S.C. 133, in addition to the Secretary of Defense
and the Secretaries of the military departments, the USD (AT&L) may
exercise authority to indemnify against unusually hazardous or nuclear
risks.
250.102-1-70 Delegations.
(a) Military departments. The Departments of the Army, Navy, and
Air Force will specify delegations and levels of authority for actions
under the Act and the Executive Order in departmental supplements or
agency acquisition guidance.
(b) Defense agencies. Subject to the restrictions on delegations of
authority in 250.102-1(b) and FAR 50.102-1, the directors of the
defense agencies may exercise and redelegate the authority contained in
the Act and the Executive Order. The agency supplements or agency
acquisition guidance shall specify the delegations and levels of
authority.
(1) Requests to obligate the Government in excess of $55,000 must
be submitted to the USD (AT&L) for approval.
(2) Requests for indemnification against unusually hazardous or
nuclear risks must be submitted to the USD(AT&L) for approval before
using the indemnification clause at FAR 52.250-1, Indemnification Under
Public Law 85-804.
(c) Approvals. The Secretary of the military department or the
agency director must approve any delegations in writing.
250.102-2 Contract adjustment boards.
The Departments of the Army, Navy, and Air Force each have a
contract adjustment board. The board consists of a Chair and not less
than two nor more than six other members, one of whom may be designated
the Vice-Chair. A majority constitutes a quorum for any purpose and the
concurring vote of a majority of the total board membership constitutes
an action of the board. Alternates may be appointed to act in the
absence of any member.
250.103 Contract adjustments.
250.103-3 Contract adjustment.
(a) Contractor requests should be filed with the procuring
contracting officer (PCO). However, if filing with the PCO is
impractical, requests may be filed with an authorized representative,
an administrative contracting officer, or the Office of General Counsel
of the applicable department or agency, for forwarding to the cognizant
PCO.
250.103-5 Processing cases.
(1) At the time the request is filed, the activity shall prepare
the record described at PGI 250.101-3(1)(i) and forward it to the
appropriate official within 30 days after the close of the month in
which the record is prepared.
(2) The officer or official responsible for the case shall forward
to the contract adjustment board, through departmental channels, the
documentation described at PGI 250.103-5.
[[Page 46816]]
(3) Contract adjustment boards will render decisions as
expeditiously as practicable. The Chair shall sign a memorandum of
decision disposing of the case. The decision shall be dated and shall
contain the information required by FAR 50.103-6. The memorandum of
decision shall not contain any information classified ``Confidential''
or higher. The board's decision will be sent to the appropriate
official for implementation.
250.103-6 Disposition.
For requests denied or approved below the Secretarial level, follow
the disposition procedures at PGI 250.103-6.
250.104 Residual powers.
250.104-3 Special procedures for unusually hazardous or nuclear risks.
250.104-3-70 Indemnification under contracts involving both research
and development and other work.
When indemnification is to be provided on contracts requiring both
research and development work and other work, the contracting officer
shall insert an appropriate clause using the authority of both 10
U.S.C. 2354 and Public Law 85-804.
(a) The use of Public Law 85-804 is limited to work which cannot be
indemnified under 10 U.S.C. 2354 and is subject to compliance with FAR
50.104.
(b) Indemnification under 10 U.S.C. 2354 is covered by 235.070.
PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
252.203-7002 [Removed]
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5. Section 252.203-7002 is removed.
[FR Doc. E8-18504 Filed 8-11-08; 8:45 am]
BILLING CODE 5001-08-P