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###### Department of Defense

          - 48 CFR Part 206 
          - [DFARS Case 2003-D017] 

# 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 competition 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:

December 15, 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;                               ( print page 74991)                            facsimile (703) 602-0350. Please cite DFARS Case 2003-D017.                     

# 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 DFARS changes include—

○ Revision of DFARS 206.001 to clarify the text.

                    ○ Deletion of text at DFARS 206.202(b) regarding documentation needed to support a DoD determination to exclude a particular source from a contact action in order to establish or maintain an alternative source of supplies or services; and deletion of text at DFARS 206.302-2 containing examples of circumstances under which use of other than full and open competition may be appropriate due to unusual and compelling urgency. 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.*

○ Deletion of obsolete text at DFARS 206.302-1(b)(4) and deletion of unnecessary text at DFARS 206.303-1(b) and (c) and 206.303-2. 

DoD published a proposed rule at 69 FR 8149 on February 23, 2004. DoD received one comment on the proposed rule. The respondent recommended further revision of the text at 206.001 to clarify that the exception from competition authorized by 10 U.S.C. 1091 applies only to contracts awarded to individuals. DoD has included this clarification in the final rule. 

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 DFARS changes in this rule are limited to clarifying revisions or deletion of text that is unnecessary or internal to DoD.                 

## 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 206

      - Government procurement

Michele P. Peterson, 

Executive Editor, Defense Acquisition Regulations Council. 

Therefore, 48 CFR Part 206 is amended as follows: 

1. The authority citation for 48 CFR Part 206 continues to read as follows: 

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

# PART 206—COMPETITION REQUIREMENTS 

2. Section 206.001 is revised to read as follows: 

206.001 

(b) As authorized by 10 U.S.C. 1091, contracts awarded to individuals using the procedures at 237.104(b)(ii) are exempt from the competition requirements of FAR Part 6. 

3. Section 206.202 is revised to read as follows: 

206.202 

(a) Agencies may use this authority to totally or partially exclude a particular source from a contract action. 

(b) The determination and findings (D&F) and the documentation supporting the D&F shall identify the source to be excluded from the contract action. Include the information at PGI 206.202(b), as applicable, and any other information that may be pertinent, in the supporting documentation. 

206.302-1 

4. Section 206.302-1 is amended by removing paragraph (b)(4). 

5. Section 206.302-2 is revised to read as follows: 

206.302-2 

                            (b)                             *Application.*                             For guidance on circumstances under which use of this authority may be appropriate, see PGI 206.302-2(b).                         

206.303-1 

6. Section 206.303-1 is amended by removing paragraphs (b) and (c). 

206.303-2 

7. Section 206.303-2 is removed. 

[FR Doc. 04-27349 Filed 12-14-04; 8:45 am] 

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