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###### Department of Defense

          - 48 CFR Parts 201 and 202 
          - [DFARS Case 2003-D090] 

# AGENCY:

Department of Defense (DoD). 

# ACTION:

Final rule. 

# SUMMARY:

DoD has issued a final rule amending the Defense Federal Acquisition Regulation Supplement (DFARS) to define a companion resource to the DFARS that contains mandatory and non-mandatory internal DoD procedures, non-mandatory guidance, and supplemental information. This new resource, entitled Procedures, Guidance, and Information, is a result of a transformation initiative undertaken by DoD to dramatically change the purpose and content of the DFARS. 

# DATES:

Effective November 1, 2004. 

# FOR FURTHER INFORMATION CONTACT:

Ms. Michele Peterson, Defense Acquisition Regulations Council, OUSD(AT&L)DPAP(DAR), IMD 3C132, 3062 Defense Pentagon, Washington, DC 20301-3062. Telephone (703) 602-0311; facsimile (703) 602-0350. Please cite DFARS Case 2003-D090. 

# 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/​dfars/​transf.htm.*

                    This final rule is a result of the DFARS Transformation initiative. The rule establishes the framework for a new DFARS companion resource, Procedures, Guidance, and Information (PGI), which contains mandatory and non-mandatory internal DoD procedures, non-mandatory guidance, and supplemental information. PGI will not be published in the Code of Federal Regulations, but will be available electronically at                     *http://www.acq.osd.mil/​dpap/​dars/​index.htm.*                     Use of PGI will enable DoD to more rapidly convey internal administrative and procedural information to the acquisition workforce. The HTML version of the DFARS available at                     *http://www.acq.osd.mil/​dpap/​dfars/​index.htm*                     will contain computerized links to the corresponding PGI sections.                

DoD published a proposed rule at 69 FR 8145 on February 23, 2004. DoD received one comment on the proposed rule. The comment recommended additional policy and procedures relating to interagency acquisitions under the Economy Act (31 U.S.C. 1535). The comment is considered to be outside the scope of this case, but will be considered with other changes being developed for DFARS Part 217, which addresses the Economy Act. 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 new DFARS companion resource will contain only procedures, guidance, and information that have no significant effect beyond the internal operating procedures of DoD and no significant cost or administrative impact on contractors or offerors.                 

## 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 201 and 202

      - Government procurement

Michele P. Peterson, 

Executive Editor, Defense Acquisition Regulations Council. 

Therefore, 48 CFR parts 201 and 202 are amended as follows: 

1. The authority citation for 48 CFR parts 201 and 202 continues to read as follows: 

Authority:41 U.S.C. 421 and 48 CFR Chapter 1. 

# PART 201—FEDERAL ACQUISITION REGULATIONS SYSTEM 

2. Section 201.105-3 is revised to read as follows: 

201.105-3 

                            The DFARS and the DFARS Procedures, Guidance, and Information (PGI) are available electronically via the World Wide Web at                             *http://www.acq.osd.mil/​dpap/​dars/​index.htm.*

3. Section 201.201-70 is added to read as follows: 

201.201-70 

The DAR Council is also responsible for maintenance of the DFARS Procedures, Guidance, and Information (PGI). 

4. Section 201.301 is amended by revising paragraph (a) to read as follows: 

201.301 

(a)(1) DoD implementation and supplementation of the FAR is issued in the Defense Federal Acquisition Regulation Supplement (DFARS) under authorization and subject to the authority, direction, and control of the Secretary of Defense. The DFARS contains— 

(i) Requirements of law; 

(ii) DoD-wide policies; 

(iii) Delegations of FAR authorities; 

(iv) Deviations from FAR requirements; and 

                            (v) 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.                                   ( print page 63327)    

(2) Relevant procedures, guidance, and information that do not meet the criteria in paragraph (a)(1) of this section are issued in the DFARS Procedures, Guidance, and Information (PGI). 

* * * * *

# PART 202—DEFINITIONS OF WORDS AND TERMS 

5. Section 202.101 is amended by adding, in alphabetical order, a definition of “Procedures, Guidance, and Information (PGI)” to read as follows: 

202.101 

* * * * *

*Procedures, Guidance, and Information (PGI)*                             means a companion resource to the DFARS that—                         

(1) Contains mandatory internal DoD procedures. The DFARS will direct compliance with mandatory procedures using imperative language such as “Follow the procedures at * * *” or similar directive language; 

(2) Contains non-mandatory internal DoD procedures and guidance and supplemental information to be used at the discretion of the contracting officer. The DFARS will point to non-mandatory procedures, guidance, and information using permissive language such as “The contracting officer may use * * *” or “Additional information is available at * * *” or other similar language; 

(3) Is numbered similarly to the DFARS, except that each PGI numerical designation is preceded by the letters “PGI”; and 

                            (4) Is available electronically at                             *http://www.acq.osd.mil/​dpap/​dars/​index.htm.*

* * * * *

[FR Doc. 04-24281 Filed 10-29-04; 8:45 am] 

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