71562 Federal Register / Vol. 75, No. 226 / Wednesday, November 24, 2010 / Rules and Regulations 

5000.02, Operation of the Defense 

Acquisition System and the DoD 

5000.04–M–1, CSDR Manual. The CSDR 

system is applied in accordance with 

the reporting requirements established 

in DoDI 5000.02. The two principal 

components of the CSDR system are 

contractor cost data reporting and 

software resources data reporting. 

(b) Prior to contract award, 

contracting officers shall consult with 

the Defense Cost and Resource Center to 

determine that the offeror selected for 

award has proposed a standard CSDR 

system, as described in the offeror’s 

proposal in response to the provision at 

252.234–7003, that is in compliance 

with DoDI 5000.02, Operation of the 

Defense Acquisition System, and the 

DoD 5000.04–M–1, CSDR Manual. 

(c) Contact information for the 

Defense Cost and Resource Center and 

the Deputy Director, Cost Assessment, is 

located at PGI 234.7100. 

234.7101 Solicitation provision and 

contract clause. 

(a)(1) Use the provision at 252.234– 

7003, Notice of Cost and Software Data 

Reporting System, in all solicitations 

that include the clause at 252.234–7004, 

Cost and Software Data Reporting. 

(2) Use the provision with its 

Alternate I when the clause at 252.234– 

7004, Cost and Software Data Reporting, 

is used with its Alternate I. 

(b)(1) Use the clause at 252.234–7004, 

Cost and Software Data Reporting 

System, in all solicitations and contracts 

for major defense acquisition programs 

and major automated information 

system programs that exceed $50 

million. 

(2) Use the clause with its Alternate 

I in solicitations and contracts for major 

defense acquisition programs and major 

automated information system programs 

with a value equal to or greater than $20 

million but less than or equal to $50 

million, when so directed by the 

program manager with the approval of 

the OSD Deputy Director, Cost 

Assessment. 

PART 242—CONTRACT 

ADMINISTRATION AND AUDIT 

SERVICES 

■ 4. Designate the current text of section 

242.503–2 as paragraph (a) and add new 

paragraph (b) to read as follows: 

242.503–2 Postaward conference 

procedure. 

* * * * * 

(b) For contracts that include the 

clause at 252.234–7004, Cost and 

Software Data Reporting, postaward 

conferences shall include a discussion 

of the contractor’s standard cost and 

software data reporting (CSDR) process 

that satisfies the guidelines contained in 

the DoD 5000.04–M–1, CSDR Manual, 

and the requirements in the 

Government-approved CSDR plan for 

the contract, DD Form 2794, and related 

Resource Distribution Table. 

PART 252—SOLICITATION 

PROVISIONS AND CONTRACT 

CLAUSES 

■ 5. Add section 252.234–7003 to read 

as follows: 

252.234–7003 Notice of Cost and Software 

Data Reporting System. (NOV 2010) 

As prescribed in 234–7101(a)(1), use 

the following provision: 

NOTICE OF COST AND SOFTWARE 

DATA REPORTING SYSTEM (NOV 

2010) 

(a) This solicitation includes— 

(1) The Government-approved cost and 

software data reporting (CSDR) plan for the 

contract, DD Form 2794; and 

(2) The related Resource Distribution 

Table. 

(b) As part of its proposal, the offeror 

shall— 

(1) Describe the process to be used to 

satisfy the requirements of the DoD 5000.04– 

M–1, CSDR Manual, and the Governmentapproved CSDR plan for the proposed 

contract; 

(2) Demonstrate how contractor cost and 

data reporting (CCDR) will be based, to the 

maximum extent possible, upon actual cost 

transactions and not cost allocations; 

(3) Demonstrate how the data from its 

accounting system will be mapped into the 

standard reporting categories required in the 

CCDR data item descriptions; 

(4) Describe how recurring and 

nonrecurring costs will be segregated; 

(5) Provide comments on the adequacy of 

the CSDR contract plan and related Resource 

Distribution Table; and 

(6) Submit the DD Form 1921, Cost Data 

Summary Report, and DD Form 1921–1, 

Functional Cost-Hour Report, with its pricing 

proposal. 

(c) CSDR reporting will be required for 

subcontractors at any tier with a subcontract 

that exceeds $50 million. The offeror shall 

identify, by providing comments on the 

Resource Distribution Table, the 

subcontractors, or, if the subcontractors have 

not been selected, the subcontracted effort in 

this category. 

(End of provision) 

Alternate I (NOV 2010). As prescribed 

in 234.7101(a)(2), substitute the 

following paragraph (c) for paragraph (c) 

of the basic provision: 

(c) CSDR reporting will be required for 

subcontractors for selected subcontracts 

identified in the CSDR contract plan as 

requiring such reporting. The offeror shall 

identify, by providing comments on the 

Resource Distribution Table, the 

subcontractors, or, if the subcontractors have 

not been selected, the subcontracted effort. 

■ 6. Add section 252.234–7004 to read 

as follows: 

252.234–7004 Cost and Software Data 

Reporting System. (NOV 2010) 

As prescribed in 234.7101(b)(1), use 

the following clause: 

COST AND SOFTWARE DATA 

REPORTING SYSTEM (NOV 2010) 

(a) In the performance of this contract, the 

Contractor shall use— 

(1) A documented standard cost and 

software data reporting (CSDR) process that 

satisfies the guidelines contained in the DoD 

5000.04–M–1, CSDR Manual; 

(2) Management procedures that provide 

for generation of timely and reliable 

information for the contractor cost data 

reports (CCDRs) and software resources data 

reports (SRDRs) required by the CCDR and 

SRDR data items of this contract; and 

(3) The Government-approved CSDR plan 

for this contract, DD Form 2794, and the 

related Resource Distribution Table as the 

basis for reporting in accordance with the 

required CSDR data item descriptions. 

(b) The Contractor shall require CSDR 

reporting from subcontractors at any tier with 

a subcontract that exceeds $50 million. If, for 

subcontracts that exceed $50 million, the 

Contractor changes subcontractors or makes 

new subcontract awards, the Contractor shall 

notify the Government. 

(End of clause) 

Alternate I (NOV 2010). As prescribed 

in 234.7101(b)(2), substitute the 

following paragraph (b) for paragraph 

(b) of the basic clause: 

(b) The Contractor shall require CSDR 

reporting from selected subcontractors 

identified in the CSDR contract plan as 

requiring such reporting. If the Contractor 

changes subcontractors or makes new awards 

for selected subcontract effort, the Contractor 

shall notify the Government. 

[FR Doc. 2010–29496 Filed 11–23–10; 8:45 am] 

BILLING CODE 5001–08–P 

DEPARTMENT OF DEFENSE 

Defense Acquisition Regulations 

System 

48 CFR Parts 217, 234, and 235 

RIN 0750–AG76 

Defense Federal Acquisition 

Regulation Supplement; Contract 

Authority for Advanced Component 

Development or Prototype Units 

(DFARS Case 2009–D034) 

AGENCY: Defense Acquisition 

Regulations System, Department of 

Defense (DoD). 

ACTION: Confirmation of interim final 

rule. 


jlentini on DSKJ8SOYB1PROD with RULES
Federal Register / Vol. 75, No. 226 / Wednesday, November 24, 2010 / Rules and Regulations 71563 

SUMMARY: DoD is adopting as final, with 

a minor change, an interim rule 

amending the DFARS to implement 

section 819 of the National Defense 

Authorization Act for Fiscal Year 2010. 

Section 819 places limitations on 

certain types of line items and contract 

options that may be included in 

contracts initially awarded pursuant to 

competitive solicitations. 

DATES: Effective Date: November 24, 

2010. 

FOR FURTHER INFORMATION CONTACT: Ms. 

Meredith Murphy, 703–602–1302. 

SUPPLEMENTARY INFORMATION: 

I. Background 

DoD published an interim rule in the 

Federal Register at 75 FR 32638 on June 

8, 2010, to implement section 819 of the 

National Defense Authorization Act for 

Fiscal Year 2010. The interim rule 

added coverage at DFARS 217.202 and 

234.005–1. The intent of the statute is to 

prevent a contract for new technology 

that is initially awarded as a result of 

competition, from becoming a 

noncompetitive effort for the 

development of advance components or 

the procurement of prototype units. The 

DFARS implementation places specific 

limits, in accordance with the statute, 

on the dollar value, period of 

performance, and time for exercise of 

contract line items or contract options 

for such contracts. 

The comment period closed on 

August 9, 2010. A single comment was 

received in response to the interim rule. 

The respondent commented that 

including the change in DFARS part 234 

will result in users following this 

requirement only when procuring major 

systems. This issue was raised during 

the preparation of the interim rule. DoD 

confirmed that part 234 is the optimal 

location, but has added to DFARS part 

235, Research and Development 

Contracting, a second cross-reference to 

the part 234 coverage. 

II. Executive Order 12866 

This is not a significant regulatory 

action and, therefore, was not subject to 

review under section 6(b) of Executive 

Order 12866, Regulatory Planning and 

Review, dated September 30, 1993. This 

rule is not a major rule under 5 U.S.C. 

804. 

III. 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 changes are to internal 

Government operating procedures. 

Specifically, the final rule implements 

section 819 of the National Defense 

Authorization Act for Fiscal Year 2010. 

Section 819 places limitations on 

certain types of line items and contract 

options that may be included in 

contracts initially awarded pursuant to 

competitive solicitations. When the 

prohibition applies, it limits the dollar 

value, period of performance, and time 

for exercise of such contract line items 

or contract options. The intent of the 

final rule is to prevent a contract for 

new technology that is initially awarded 

as a result of competition from 

becoming a noncompetitive effort for 

the development of advanced 

components or the procurement of 

prototype units. 

IV. Paperwork Reduction Act 

The Paperwork Reduction Act does 

not apply because the final 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, 

234, and 235 

Government procurement. 

Clare M. Zebrowski, 

Editor, Defense Acquisition Regulations 

System. 

Interim Rule Adopted as Final With 

Changes 

■ Accordingly, the interim rule 

amending 48 CFR parts 217 and 234, 

which was published in the Federal 

Register at 75 FR 32638 on June 8, 2010, 

is adopted as final with the following 

changes: 

■ 1. The authority citation for 48 CFR 

parts 217, 234, and 235 continues to 

read as follows: 

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

chapter 1. 

PART 235—RESEARCH AND 

DEVELOPMENT CONTRACTING 

■ 2. Section 235.006–71 is added to 

subpart 235.006 to read as follows: 

235.006–71 Competition. 

See 234.005–1 for limitations on the 

use of contract line items or contract 

options for the provision of advanced 

component development or prototypes 

of technology developed under a 

competitively awarded proposal. 

[FR Doc. 2010–29498 Filed 11–23–10; 8:45 am] 

BILLING CODE 5001–08–P 

DEPARTMENT OF DEFENSE 

Defense Acquisition Regulations 

System 

48 CFR Part 237 

Defense Federal Acquisition 

Regulation Supplement; Services of 

Senior Mentors (DFARS Case 2010– 

D025) 

AGENCY: Defense Acquisition 

Regulations System, Department of 

Defense (DoD). 

ACTION: Final rule. 

SUMMARY: DoD is issuing a final rule 

amending the Defense Federal 

Acquisition Regulation Supplement 

(DFARS) to implement DoD policy on 

the services of senior mentors. 

DATES: Effective: November 24, 2010. 

FOR FURTHER INFORMATION CONTACT: Ms. 

Meredith Murphy, 703–602–1302, 

Defense Acquisition Regulations 

System, OUSD (AT&L) DPAP/DARS, 

3060 Defense Pentagon, Room 3B855, 

Washington, DC 20301–3060. 

SUPPLEMENTARY INFORMATION: 

I. Background 

This DFARS case is implementing the 

DoD policy on the services of senior 

mentors. These policies are set forth in 

two memoranda: 

• Secretary of Defense Memorandum 

entitled ‘‘Policy on Senior Mentors,’’ 

dated April 1, 2010; and 

• Deputy Secretary of Defense 

Memorandum entitled ‘‘Implementation 

Guidance on Senior Mentor Policy,’’ 

dated July 8, 2010. 

This case is being published as a final 

rule because the policy changes have 

already been established by the 

Secretary of Defense and the Deputy 

Secretary of Defense in their policy 

memoranda. The DFARS language 

incorporated by this rule is 

implementing the policy established in 

the memoranda, which impacts internal 

DoD operations with no impact on the 

public. Therefore, publication for public 

comments is not necessary. 

II. Discussion 

Senior mentors are retired flag, 

general, or other military officers or 

retired senior civilian officials who 

provide expert experience-based 

mentoring, teaching, training, advice, 

and recommendations to senior military 

officers, staff, and students as they 

participate in war games, warfighting 

courses, operational planning, 

operational exercises, and decisionmaking exercises. The relevant prior 

service, joint force experience, and 


jlentini on DSKJ8SOYB1PROD with RULES