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 

Federal Register / Vol. 69, No. 217 / Wednesday, November 10, 2004 / Rules and Regulations 65091

U.S.C. 1651 et seq.) extends the 

Longshoremen’s and Harbor Workers’

Compensation Act (33 U.S.C. 901) to 

various classes of employees working 

outside the United States. When the 

agency head recommends a waiver to 

the Secretary of Labor, the Secretary 

may waive the applicability of the 

Defense Base Act to any contract, 

subcontract, work location, or 

classification of employees. DFARS 

228.305 provides the procedures within 

DoD for submitting such requests for 

waiver. DoD has removed this 

procedural text from the DFARS and 

relocated it to the new DFARS 

companion resource, PGI. 

DoD published a proposed rule at 69 

FR 8153 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 DFARS text 

addressing procedural matters, 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 228 

Government procurement.

Michele P. Peterson, 

Executive Editor, Defense Acquisition 

Regulations Council.

■ Therefore, 48 CFR part 228 is amended 

as follows:

■ 1. The authority citation for 48 CFR 

part 228 continues to read as follows:

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

chapter 1.

PART 228—BONDS AND INSURANCE

■ 2. Sections 228.304 and 228.305 are 

revised to read as follows:

228.304 Risk-pooling arrangements. 

DoD has established the National 

Defense Projects Rating Plan, also 

known as the Special Casualty 

Insurance Rating Plan, as a risk-pooling 

arrangement to minimize the cost to the 

Government of purchasing the liability 

insurance listed in FAR 28.307–2. Use 

the plan in accordance with the 

procedures at PGI 228.304 when it 

provides the necessary coverage more 

advantageously than commercially 

available coverage.

228.305 Overseas workers’ compensation 

and war-hazard insurance. 

(d) When submitting requests for 

waiver, follow the procedures at PGI 

228.305(d).

[FR Doc. 04–24865 Filed 11–9–04; 8:45 am] 

BILLING CODE 5001–08–P

DEPARTMENT OF DEFENSE

48 CFR Parts 235 and 252 

[DFARS Case 2003–D067] 

Defense Federal Acquisition 

Regulation Supplement; Research and 

Development Contracting

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 

research and development contracting. 

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–D067.

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 include—

• Updating of a statutory reference at 

DFARS 235.006–70. 

• Deletion of unnecessary text at 

DFARS 235.007 and 235.015. 

• Deletion of text at DFARS 235.010 

regarding DoD maintenance of scientific 

and technical reports. Text on this 

subject has been relocated to the new 

DFARS companion resource, 

Procedures, Guidance, and Information 

(PGI), available at http://

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

• Updating of administrative 

information at DFARS 235.017–1 and 

252.235–7011. 

DoD published a proposed rule at 69 

FR 8158 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 updates administrative 

information, and deletes DFARS text 

that is unnecessary or procedural, 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 Parts 235 and 

252 

Government procurement.

Michele P. Peterson, 

Executive Editor, Defense Acquisition 

Regulations Council.

■ Therefore, 48 CFR Parts 235 and 252 

are amended as follows:

■ 1. The authority citation for 48 CFR 

Parts 235 and 252 continues to read as 

follows:

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

Chapter 1.