[Federal Register Volume 74, Number 144 (Wednesday, July 29, 2009)]
[Rules and Regulations]
[Pages 37649-37650]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-17947]
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DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System
48 CFR Parts 217 and 252
RIN 0750-AG29
Defense Federal Acquisition Regulation Supplement; Requirements
Applicable to Undefinitized Contract Actions (DFARS Case 2008-D029)
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 address requirements for
DoD management and oversight of undefinitized contract actions,
consistent with the provisions of Section 809 of the National Defense
Authorization Act for Fiscal Year 2008.
DATES: Effective Date: July 29, 2009.
FOR FURTHER INFORMATION CONTACT: Ms. Cassandra Freeman, Defense
Acquisition Regulations System, OUSD (AT&L) DPAP (DARS), IMD 3D139,
3062 Defense Pentagon, Washington, DC 20301-3062. Telephone 703-602-
8383; facsimile 703-602-7887. Please cite DFARS Case 2008-D029.
SUPPLEMENTARY INFORMATION:
A. Background
Section 809 of the National Defense Authorization Act for Fiscal
Year 2008 (Pub. L. 110-181) required DoD to issue guidance to ensure
the implementation and enforcement of requirements applicable to
undefinitized contract actions. On August 29, 2008, the Director,
Defense Procurement and Acquisition Policy, issued a memorandum to DoD
departments and agencies as required by Section 809 of Public Law 110-
181. This final rule amends the DFARS to address the requirements of
the August 29, 2008 memorandum, specifically, requirements for DoD
departments and agencies to submit semi-annual reports regarding
undefinitized contract actions exceeding $5 million; for obligation of
funds for the undefinitized period consistent with the contractor's
proposal for that period; and for compliance with existing DFARS policy
relating to profit computation for undefinitized contract actions.
This rule was not subject to Office of Management and Budget review
under Executive Order 12866, dated September 30, 1993.
[[Page 37650]]
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-D029.
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 217 and 252
Government procurement.
Michele P. Peterson,
Editor, Defense Acquisition Regulations System.
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Therefore, 48 CFR parts 217 and 252 are amended as follows:
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1. The authority citation for 48 CFR Parts 217 and 252 continues to
read as follows:
Authority: 41 U.S.C. 421 and 48 CFR Chapter 1.
PART 217--SPECIAL CONTRACTING METHODS
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2. Section 217.7404-4 is amended by designating the existing text as
paragraph (a) and adding paragraph (b) to read as follows:
217.7404-4 Limitations on obligations.
* * * * *
(b) In determining the appropriate amount to obligate, the
contracting officer shall assess the contractor's proposal for the
undefinitized period and shall obligate funds only in an amount
consistent with the contractor's requirements for the undefinitized
period.
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3. Section 217.7404-6 is revised to read as follows:
217.7404-6 Allowable profit.
When the final price of a UCA is negotiated after a substantial
portion of the required performance has been completed, the head of the
contracting activity shall ensure the profit allowed reflects--
(a) Any reduced cost risk to the contractor for costs incurred
during contract performance before negotiation of the final price;
(b) The contractor's reduced cost risk for costs incurred during
performance of the remainder of the contract; and
(c) The requirements at 215.404-71-3(d)(2). The risk assessment
shall be documented in the contract file.
217.7405 [Redesignated as 217.7406]
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4. Section 217.7405 is redesignated as section 217.7406.
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5. A new section 217.7405 is added to read as follows:
217.7405 Plans and reports.
(a) To provide for enhanced management and oversight of UCAs,
departments and agencies shall--
(1) Prepare and maintain a Consolidated UCA Management Plan; and
(2) Prepare semi-annual Consolidated UCA Management Reports
addressing each UCA with an estimated value exceeding $5 million.
(b) Consolidated UCA Management Reports and Consolidated UCA
Management Plan updates shall be submitted to the Office of the
Director, Defense Procurement and Acquisition Policy, by October 31 and
April 30 of each year in accordance with the procedures at PGI
217.7405.
PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
252.217-7027 [Amended]
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6. Section 252.217-7027 is amended in the introductory text by removing
``217.7405'' and adding in its place ``217.7406''.
[FR Doc. E9-17947 Filed 7-28-09; 8:45 am]
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