Federal Register / Vol. 69, No. 217 / Wednesday, November 10, 2004 / Rules and Regulations 65089

List of Subjects in 48 CFR Parts 209 and 

252 

Government procurement.

Michele P. Peterson, 

Executive Editor, Defense Acquisition 

Regulations Council.

■ Therefore, 48 CFR parts 209 and 252 

are amended as follows:

■ 1. The authority citation for 48 CFR 

parts 209 and 252 continues to read as 

follows:

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

Chapter 1.

PART 209—CONTRACTOR 

QUALIFICATIONS

209.103 and 209.103–70 [Removed]

■ 2. Sections 209.103 and 209.103–70 

are removed.

■ 3. Section 209.106 is revised to read as 

follows:

209.106 Preaward surveys. 

When requesting a preaward survey, 

follow the procedures at PGI 209.106.

209.106–1 and 209.106–2 [Removed]

■ 4. Sections 209.106–1 and 209.106–2 

are removed.

■ 5. Section 209.202 is revised to read as 

follows:

209.202 Policy. 

(a)(1) Except for aviation critical 

safety items, obtain approval in 

accordance with PGI 209.202(a)(1) when 

establishing qualification requirements. 

See 209.270 for approval of qualification 

requirements for aviation critical safety 

items.

Subpart 209.3 [Removed]

■ 6. Subpart 209.3 is removed.

PART 252—SOLICITATION 

PROVISIONS AND CONTRACT 

CLAUSES

252.209–7000 [Removed and Reserved]

■ 7. Section 252.209–7000 is removed 

and reserved.

[FR Doc. 04–24862 Filed 11–9–04; 8:45 am] 

BILLING CODE 5001–08–P

DEPARTMENT OF DEFENSE

48 CFR Part 212 

[DFARS Case 2003–D074] 

Defense Federal Acquisition 

Regulation Supplement; Acquisition of 

Commercial Items

AGENCY: Department of Defense (DoD).

ACTION: Final rule.

SUMMARY: DoD has issued a final rule 

amending the Defense Federal 

Acquisition Regulation Supplement 

(DFARS) to update text pertaining to the 

acquisition of commercial items. This 

rule is a result of an initiative 

undertaken by DoD to dramatically 

change the purpose and content of the 

DFARS.

EFFECTIVE DATE: November 10, 2004.

FOR FURTHER INFORMATION CONTACT: Ms. 

Robin Schulze, Defense Acquisition 

Regulations Council, OUSD (AT&L) 

DPAP (DAR), IMD 3C132, 3062 Defense 

Pentagon, Washington, DC 20301–3062. 

Telephone (703) 602–0326; facsimile 

(703) 602–0350. Please cite DFARS Case 

2003–D074.

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, DoDwide 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 

DFARS changes—

• Delete unnecessary text pertaining 

to structuring of contracts at DFARS 

212.303; and 

• Update a FAR reference at DFARS 

212.503(c)(ii). 

DoD published a proposed rule at 69 

FR 31939 on June 8, 2004. 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 deletes unnecessary 

text and updates reference information, 

but makes no significant change to 

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 212 

Government procurement.

Michele P. Peterson, 

Executive Editor, Defense Acquisition 

Regulations Council.

■ Therefore, 48 CFR Part 212 is amended 

as follows:

■ 1. The authority citation for 48 CFR 

Part 212 continues to read as follows:

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

chapter 1.

PART 212—ACQUISITION OF 

COMMERCIAL ITEMS

212.303 [Removed]

■ 2. Section 212.303 is removed.

212.503 [Amended]

■ 3. Section 212.503 is amended in 

paragraph (c)(ii) by revising the 

parenthetical to read ‘‘(see FAR 15.403–

1(b)(3))’’.

[FR Doc. 04–24866 Filed 11–9–04; 8:45 am] 

BILLING CODE 5001–08–P

DEPARTMENT OF DEFENSE

48 CFR Part 214 

[DFARS Case 2003–D076] 

Defense Federal Acquisition 

Regulation Supplement; Sealed 

Bidding

AGENCY: Department of Defense (DoD).

ACTION: Final rule.

SUMMARY: DoD has issued a final rule 

amending the Defense Federal 

Acquisition Regulation Supplement 

(DFARS) to update text pertaining to 

sealed bidding. This rule is a result of 

a transformation initiative undertaken 

by DoD to dramatically change the 

purpose and content of the DFARS.

EFFECTIVE DATE: November 10, 2004.

FOR FURTHER INFORMATION CONTACT: Ms. 

Robin Schulze, Defense Acquisition 

Regulations Council, OUSD (AT&L) 

DPAP (DAR), IMD 3C132, 3062 Defense 

Pentagon, Washington, DC 20301–3062. 

Telephone (703) 602–0326; facsimile 

(703) 602–0350. Please cite DFARS Case 

2003–D076.

SUPPLEMENTARY INFORMATION: 

65090 Federal Register / Vol. 69, No. 217 / Wednesday, November 10, 2004 / Rules and Regulations 

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, DoDwide 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 

DFARS changes include—

• Deletion of unnecessary text at 

DFARS 214.201–1, 214.407–3(h), and 

214.5. 

• Redesignation of DFARS 214.202–

5(d) as 214.202–5(c) for consistency 

with the corresponding FAR text. 

• Addition of the Defense Contract 

Management Agency General Counsel to 

the list of agency officials authorized to 

permit correction of mistakes in bid 

before award. 

DoD published a proposed rule at 69 

FR 8152 on February 23, 2004. 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 deletes unnecessary 

text and updates administrative 

information, but makes no significant 

change to 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 214 

Government procurement.

Michele P. Peterson, 

Executive Editor, Defense Acquisition 

Regulations Council.

■ Therefore, 48 CFR part 214 is amended 

as follows:

■ 1. The authority citation for 48 CFR 

part 214 continues to read as follows:

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

Chapter 1.

PART 214—SEALED BIDDING

214.201–1 [Removed]

■ 2. Section 214.201–1 is removed.

214.202–5 [Amended]

■ 3. Section 214.202–5 is amended by 

redesignating paragraph (d) as paragraph 

(c).

■ 4. Section 214.407–3 is amended as 

follows:

■ a. By adding paragraph (e)(ix); and

■ b. By removing paragraph (h). The 

added text reads as follows:

214.407–3 Other mistakes disclosed 

before award. 

(e) * * * 

(ix) Defense Contract Management 

Agency: General Counsel, DCMA.

Subpart 214.5—[Removed]

■ 5. Subpart 214.5 is removed.

[FR Doc. 04–24864 Filed 11–9–04; 8:45 am] 

BILLING CODE 5001–08–P

DEPARTMENT OF DEFENSE

48 CFR Part 228 

[DFARS Case 2003–D037] 

Defense Federal Acquisition 

Regulation Supplement; Insurance

AGENCY: Department of Defense (DoD).

ACTION: Final rule.

SUMMARY: DoD has issued a final rule 

amending the Defense Federal 

Acquisition Regulation Supplement 

(DFARS) to update text pertaining to 

insurance requirements. This rule is a 

result of a transformation initiative 

undertaken by DoD to dramatically 

change the purpose and content of the 

DFARS.

EFFECTIVE DATE: November 10, 2004.

FOR FURTHER INFORMATION CONTACT: Mr. 

Thaddeus Godlewski, Defense 

Acquisition Regulations Council, OUSD 

(AT&L) DPAP (DAR), IMD 3C132, 3062 

Defense Pentagon, Washington, DC 

20301–3062. Telephone (703) 602–2022; 

facsimile (703) 602–0350. Please cite 

DFARS Case 2003–D037.

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, DoDwide 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 deletes DFARS text in the areas 

addressed below. This text has been 

relocated to the new DFARS companion 

resource, Procedures, Guidance, and 

Information (PGI), available at http://

www.acq.osd.mil/dpap/dars/pgi.

• DFARS 228.304, Risk-pooling 

arrangements. In the early 1950’s, DoD 

teamed with the insurance industry to 

develop a program that would minimize 

the cost of workers’ compensation and 

contractor liability charged to 

Government contracts. The objective 

was to provide an optional insurance 

plan to be used if it provided a better 

deal than what could be purchased on 

the open market. The team’s solution 

was the National Defense Projects 

Rating Plan (NDPRP). The NDPRP 

defined premiums via a formula based 

upon average workers’ compensation 

rates throughout the country and 

adjusted for experience pooled from 

Defense contractors. This produced 

premiums without loadings, e.g., 

commissions, and eliminated the 

burden of negotiating premiums every 

year with insurance carriers. Today, 

there is little cost difference between the 

NDPRP and the states’ workers’

compensation program, because the 

states have adopted the same premium 

algorithm as the NDPRP and many 

contractors have adopted self-insurance. 

The text at DFARS 228.304 may be 

beneficial in the event of a prolonged 

surge in Defense contract activity, and 

should be retained as guidance. 

Accordingly, DoD has removed this text 

from the DFARS and relocated it to the 

new DFARS companion resource, PGI. 

• DFARS 228.305, Overseas workers’

compensation and war-hazard 

insurance. The Defense Base Act (42