[Federal Register Volume 65, Number 124 (Tuesday, June 27, 2000)]
[Rules and Regulations]
[Pages 39704-39707]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-15818]



[[Page 39703]]

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Part III





Department of Defense





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48 CFR Parts 201, 202, 203, et al.



Various Acquisition Regulations; Final Rules

Federal Register / Vol. 65, No. 124 / Tuesday, June 27, 2000 / Rules 
and Regulations

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DEPARTMENT OF DEFENSE

48 CFR Parts 201, 202, 203, 204, 206, 209, 212, 213, 217, 219, 225, 
231, 232, 235, 236, 242, 249, 250, 252, and 253, and Appendices A 
and G to Chapter 2


Defense Federal Acquisition Regulation Supplement; Technical 
Amendments

AGENCY: Department of Defense (DoD).

ACTION: Final rule.

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SUMMARY: The Director of Defense Procurement is making technical 
amendments to the Defense Federal Acquisition Regulation Supplement to 
update organization names, position titles, addresses, telephone 
numbers, office symbols, and references; to delete obsolete or 
duplicative text; and to renumber and relocate text for consistency 
with corresponding Federal Acquisition Regulation text.

EFFECTIVE DATE: June 27, 2000.

FOR FURTHER INFORMATION CONTACT: Ms. Michele Peterson, Defense 
Acquisition Regulations Council, OUSD (AT&L) DP (DAR), IMD 3D139, 3062 
Defense Pentagon, Washington, DC 20301-3062. Telephone (703) 
6012ndash;0311; telefax (703) 602-0350.

List of Subjects in 48 CFR Parts 201, 202, 203, 204, 206, 209, 212, 
213, 217, 219, 225, 231, 232, 235, 236, 242, 249, 250, 252, and 253

    Government procurement.

Michele P. Peterson,
Executive Editor, Defense Acquisition Regulations Council.

    Therefore, 48 CFR Parts 201, 202, 203, 204, 206, 209, 212, 213, 
217, 219, 225, 231, 232, 235, 236, 242, 249, 250, 252, and 253, and 
Appendices A and G to Chapter 2 are amended as follows:
    1. The authority citation for 48 CFR Parts 201, 202, 203, 204, 206, 
209, 212, 213, 217, 219, 225, 231, 232, 235, 236, 242, 249, 250, 252, 
and 253, and Appendices A and G to subchapter I continues to read as 
follows:

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

PART 201--FEDERAL ACQUISITION REGULATIONS SYSTEM


201.107  [Amended]

    2. Section 201.107 is amended in paragraph (2) by removing the 
parenthetical ``(Acquisition and Technology)'' and adding in its place 
``(Acquisition, Technology, and Logistics)''.

PART 202--DEFINITIONS OF WORDS AND TERMS


202.101  [Amended]

    3. Section 202.101 is amended as follows:
    a. In the definition of ``Head of the agency'' in the first 
sentence by removing the first comma and by adding a comma after 
``means''; and in the second sentence by removing the parenthetical 
``(Acquisition & Technology)'' and adding in its place ``(Acquisition, 
Technology, and Logistics)''; and
    b. In the definition of ``Senior procurement executive'', in the 
introductory text by removing the comma after ``executive'' and by 
adding a comma after ``means''; and in the first and last paragraphs by 
removing the parenthetical ``(Acquisition & Technology)'' and adding in 
its place ``(Acquisition, Technology, and Logistics)''.

PART 203--IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF 
INTEREST


203.570-3  [Amended]

    4. Section 203.570-3 is amended in paragraph (b) by removing the 
parenthetical ``(Acquisition)'' and adding in its place ``(Acquisition, 
Technology, and Logistics)''.


203.703  [Amended]

    5. Section 203.703 is amended in the last sentence by removing the 
parenthetical ``(Acquisition & Technology)'' and adding in its place 
``(Acquisition, Technology, and Logistics)''.

PART 204--ADMINISTRATIVE MATTERS


204.7003  [Amended]

    6. Section 204.7003 is amended in paragraph (a)(3)(viii) by 
removing the phrase ``basic purchasing'' and adding in its place 
``blanket purchase''.

PART 206--COMPETITION REQUIREMENTS


206.302-5  [Amended]

    7. Section 206.302-5 is amended in paragraph (c)(i)(B) in the last 
sentence by removing the parenthetical ``(Acquisition & Technology)'' 
and adding in its place ``(Acquisition, Technology, and Logistics)''.


206.304  [Amended]

    8. Section 206.304 is amended in paragraph (a)(4) introductory text 
by removing the parenthetical ``(Acquisition & Technology)'' and adding 
in its place ``(Acquisition, Technology, and Logistics)''.

PART 209--CONTRACTOR QUALIFICATIONS


209.103  [Amended]

    9. Section 209.103 is amended in paragraph (a)(i)(C) by removing 
the parenthetical ``(Acquisition & Technology)'' and adding in its 
place ``(Acquisition, Technology, and Logistics)''.


209.104-1  [Amended]

    10. Section 209.104-1 is amended in paragraph (g)(ii)(C) 
introductory text, in the third sentence, by removing the parenthetical 
``(Acquisition & Technology)'' and adding in its place ``(Acquisition, 
Technology, and Logistics)''.


209.104-70  [Amended]

    11. Section 209.104-70 is amended in paragraph (a) in the last 
sentence by removing the phrase ``Director, Defense Procurement, ATTN: 
OUSD (A&T) DP/FC'' and adding in its place ``Director of Defense 
Procurement, ATTN: OUSD (AT&L) DP/FC''.

PART 212--ACQUISITION OF COMMERCIAL ITEMS


212.504  [Amended]

    12. Section 212.504 is amended by removing paragraph (a)(xxv) and 
redesignating paragraph (a)(xxvi) as paragraph (a)(xxv).

PART 213--SIMPLIFIED ACQUISITION PROCEDURES


213.302-5  [Amended]

    13. Section 213.302-5 is amended as follows:
    a. In paragraph (d)(i) by removing ``225.109(d)'' and adding in its 
place ``225.1101(2)''; and
    b. In paragraph (d)(ii) by removing ``225.408(a)(vi)'' and adding 
in its place ``225.1101(13)''.

PART 217--SPECIAL CONTRACTING METHODS


217.172  [Amended]

    14. Section 217.172 is amended in paragraph (d) in the last 
sentence by removing ``Acquisition and Technology) (OUSD (A&T) DP)'' 
and adding in its place ``(Acquisition, Technology, and Logistics) 
(OUSD (AT&L) DP)''.


217.173  [Amended]

    15. Section 217.173 is amended in paragraph (b)(5)(iv) by removing 
the

[[Page 39705]]

parenthetical ``(A&T)'' and adding in its place ``(AT&L)''.

    16. Section 217.7001 is amended by revising the introductory text 
and paragraph (b) to read as follows:


217.7001  Definitions.

    As used in this subpart--
* * * * *
    (b) Property means items that fall within one of the generic 
categories listed in DoD 4140.1-R, DoD Materiel Management Regulation, 
Chapter 6.2, Exchange or Sale of Nonexcess Personal Property.

    17. Section 217.7002 is amended by revising paragraph (b) to read 
as follows:


217.7002  Policy.

* * * * *
    (b) DoD 4140.1-R, Chapter 6.2.


217.7003  [Amended]

    18. Section 217.7003 is amended in paragraph (a) by removing ``DoDI 
4140.51'' and adding in its place ``DoD 4140.1-R, Chapter 6.2''.


217.7502  [Amended]

    19. Section 217.7502 is amended by removing paragraph (b) and 
redesignating paragraph (c) as paragraph (b).

PART 219--SMALL BUSINESS PROGRAMS


219.201  [Amended]

    20. Section 219.201 is amended in paragraph (f) in the last 
sentence by removing the parenthetical ``(Acquisition and Technology)'' 
and adding in its place ``(Acquisition, Technology, and Logistics)''.


219.800  [Amended]

    21. Section 219.800 is amended in paragraph (a) in the first 
sentence by removing the phrase ``for Acquisition and Technology'' and 
adding in its place the parenthetical ``(Acquisition, Technology, and 
Logistics)''.


219.1006  [Removed]

    22. Section 219.1006 is removed.

    23. Section 219.1007 is added to read as follows:


219.1007  Procedures.

    (b)(1) The Director, Small and Disadvantaged Business Utilization, 
Office of the Under Secretary of Defense (Acquisition, Technology, and 
Logistics) (OUSD(AT&L)), will determine whether reinstatement of small 
business set-asides is necessary to meet the agency goal and will 
recommend reinstatement to the Director of Defense Procurement 
(OUSD(AT&L)). Military departments and defense agencies shall not 
reinstate small business set-asides unless directed by the Director of 
Defense Procurement.
    (d) Reporting requirements are at 204.670-2.

PART 225--FOREIGN ACQUISITION


225.103  [Amended]

    24. Section 225.103 is amended in paragraph (b)(ii) introductory 
text by removing ``(b)(2)(i)'' and adding in its place ``(b)(3)''.


225.770-4  [Amended]

    25. Section 225.770-4 is amended in the last sentence by removing 
``(OUSD(A&T)DP'' and adding in its place ``Office of the Under 
Secretary of Defense (Acquisition, Technology, and Logistics)''.


225.871-7  [Amended]

    26. Section 225.871-7 is amended in paragraph (a)(1) by removing 
``USD(A&T)DP'' and adding in its place ``the Director of Defense 
Procurement, Office of the Under Secretary of Defense (Acquisition, 
Technology, and Logistics),''.


225.872-2  [Amended]

    27. Section 225.872-2 is amended in paragraph (a)(2)(ii) by 
removing the word ``Assistant'' and adding in its place the word 
``Under''.


225.872-3  [Amended]

    28. Section 225.872-3 is amended in paragraph (f)(4) by removing 
the parenthetical ``(Acquisition & Technology)'' and adding in its 
place ``(Acquisition, Technology, and Logistics)''.


225.872-4  [Amended]

    29. Section 225.872-4 is amended in paragraph (b) by removing 
``225.105 and 225.303'' and adding in its place ``225.304 and 
225.502''.


225.7002-2  [Amended]

    30. Section 225.70002-2 is amended in paragraph (j)(2)(ii) 
introductory text by removing the parenthetical ``(Acquisition and 
Technology)'' and adding in its place ``(Acquisition, Technology, and 
Logistics)''.


225.7005  [Amended]

    31. Section 225.7005 is amended in paragraph (a)(1)(i) introductory 
text and in paragraph (b) introductory text by removing the 
parenthetical ``(Acquisition and Technology)'' and adding in its place 
``(Acquisition, Technology, and Logistics)''.


225.7018-2  [Amended]

    32. Section 225.7018-2 is amended in the introductory text by 
removing the parenthetical ``(Acquisition & Technology)'' and adding in 
its place ``(Acquisition, Technology, and Logistics)''.


225.7019-3  [Amended]

    33. Section 224.7019-3 is amended in paragraph (b)(1) introductory 
text and paragraph (b)(5) introductory text by removing the 
parenthetical ``(Acquisition and Technology)'' and adding in its place 
``(Acquisition, Technology, and Logistics)''.


225.7202  [Amended]

    34. Section 225.7202 is amended in the first sentence by removing 
the parenthetical ``(A&T)'' and adding in its place ``(AT&L)''.

PART 231--CONTRACT COST PRINCIPLES AND PROCEDURES


231.205-70  [Amended]

    35. Section 231.205-70 is amended as follows:
    a. In paragraph (c)(1)(iv)(A), paragraph (c)(1)(iv)(B) introductory 
text, and paragraph (c)(1)(iv)(C) introductory text by removing the 
parenthetical ``(Acquisition & Technology)'' and adding in its place 
``(Acquisition, Technology, and Logistics)'';
    b. In paragraph (d)(9) by removing the parenthetical ``(Acquisition 
& Technology)'' and adding in its place ``(Acquisition, Technology, and 
Logistics)'', and by removing the parenthetical ``(A&T)'' and adding in 
its place ``(AT&L)''; and
    c. In paragraph (d)(10) by removing the parenthetical 
``(Acquisition & Technology)'' and adding in its place ``(Acquisition, 
Technology, and Logistics)''.

PART 232--CONTRACT FINANCING


232.006-5  [Amended]

    36. Section 232.006-5 is amended as follows:
    a. By removing the parenthetical ``(Acquisition and Technology)'' 
and adding in its place ``(Acquisition, Technology, and Logistics)''; 
and
    b. By removing ``DD-ACQ'' and adding in its place ``DD-AT&L''.


232.070  [Amended]

    37. Section 323.070 is amended as follows:
    a. In paragraph (a) in the first sentence by removing 
``(Acquisition and Technology) (OUSD(A&T)DP)'' and adding in its place 
``(Acquisition,

[[Page 39706]]

Technology, and Logistics) (OUSD(AT&L)DP)'';
    b. In paragraph (a) in the last sentence by removing the 
parenthetical ``(A&T)'' and adding in its place ``(AT&L)''; and
    c. In paragraph (b) in the last sentence by removing the 
parenthetical ``(A&T)'' and adding in its place ``(AT&L)''.


232.071  [Amended]

    38. Section 232.071 is amended in paragraphs (a)(1), (b)(1), and 
(b)(3) by removing the parenthetical ``(A&T)'' and adding in its place 
``(AT&L)''.


232.501-2  [Amended]

    39. Section 232.501-2 is amended as follows:
    a. In the first sentence by removing ``USD(A&T)DP'' and adding in 
its place ``Director of Defense Procurement, Office of the Under 
Secretary of Defense (Acquisition, Technology, and Logistics) 
(OUSD(AT&L)DP'' and
    b. In the last sentence by removing ``the USD(A&T)DP'' and adding 
in its place ``(OUSD(AT&L)DP)''


232.617  [Amended]

    40. Section 232.617 is amended in paragraph (a) by removing 
``USD(A&T)DP'' and adding in its place ``Director of Defense 
Procurement, Office of the Under Secretary of Defense (Acquisition, 
Technology, and Logistics) (OUSD(AT&L)DP''.


232.803  [Amended]

    41. Section 232.803 is amended in paragraph (d) in the first 
sentence by removing the phrase ``for Acquisition and Technology'' and 
adding in its place the parenthetical ``(Acquisition, Technology, and 
Logistics)''

PART 235--RESEARCH AND DEVELOPMENT CONTRACTING


235.006  [Amended]

    42. Section 235.006 is amended as follows:
    a. In paragraph (b)(i)(C)(1) introductory text by removing 
``(Acquisition and Technology) (USD(A&T))'' and adding in its place 
``(Acquisition, Technology, and Logistics) (USD(AT&L))'';
    b. In paragraph (b)(ii) introductory text by removing the 
parenthetical ``(A&T)'' both places it appears and adding in its place 
``(AT&L)''; and
    c. In paragraph (b)(iii) by removing the parenthetical ``(A&T)'' 
and adding in its place ``(AT&L)''.

PART 236--CONSTRUCTION AND ARCHITECT--ENGINEER CONTRACTS

    43. Sections 236.213 and 236.213-70 are added to read as follows:


236.213  Special procedures for sealed bidding in construction 
contracting.


236.213-70  Additive or deductive items.

    (a) If it appears that sufficient funds may not be available for 
all the desired construction features, consider using a bid schedule 
with--
    (1) A first or base bid item covering the work generally as 
specified; and
    (2) A list of priorities that contains one or more additive or 
deductive bid items that progressively add or omit specified features 
of the work in a stated order of priority. (Normally, do not mix 
additive and deductive bid items in the same solicitation.)
    (b) Before opening the bids, record in the contract file the amount 
of funds available for the project.
    (c) Determine the low bidder and the bid items to be awarded as 
follows:
    (1) Use the recorded amount of available funds to determine the low 
bidder, which will be the bidder that--
    (i) Is otherwise eligible for award; and
    (ii) Offers the lowest aggregate amount for the first or base bid 
item, plus or minus (in order of listed priority), those additive or 
deductive bid items that provide the most features within the funds 
available.
    (2) Evaluate all bids on the basis of the same additive or 
deductive bid items.
    (i) If adding another item from the bid schedule list of priorities 
would make the award exceed the available funds, skip that item and go 
to the next item from the list of priorities.
    (ii) Add the next item if an award can be made that includes the 
item and is still within the available funds.
    (3) Use the list of priorities only to determine the low bidder. 
After determining the low bidder, an award may be made on any 
contribution if--
    (i) It is in the best interests of the Government;
    (ii) Funds are available at time of award; and
    (iii) The low bidder's price for the combination is less than the 
price offered by any other responsive, responsible bidder.

Subpart 236.3--[Removed]

    44. Subpart 236.3 is removed

PART 242--CONTRACT ADMINISTRATION AND AUDIT SERVICES


242.771-3  [Amended]

    45. Section 242.771-3 is amended as follows:
    a. In paragraph (c) by removing the parenthetical ``(USD (A&T) 
DP)'' and adding in its place ``, Office of the Under Secretary of 
Defense (Acquisition, Technology, and Logistics (OUSD (AT&L))),''; and
    b. In paragraph (d) introductory text by removing the parenthetical 
``(USD (A&T) DDR&E)'' and adding in its place ``(OUSD (AT&L) DDR&E)''.


242.1203  [Amended]

    46. Section 242.1203 is amended in paragraph (b)(2)(A) by removing 
the parenthetical ``(c)'' and adding in its place ``(e)''

PART 249--TERMINATION OF CONTRACTS


249.105-1  [Amended]

    47. Section 249.105-1 is amended in the introductory text by 
removing ``DD-A&T'' and adding in its place ``DD-AT&L''.
    48. Section 249.7000 is amended by revising paragraphs (a)(3) and 
(b)(2) and the first two sentences of paragraph (d) to read as follows:


249.7000  Terminated contracts with Canadian Commercial Corporation.

    (a) * * *
    (3) The Procedures Manual on Termination of Contracts, Public Works 
and Government Services Canada.
    (b) * * *
    (2) That the Contract Claims Resolution Board of the Public Works 
and Government Services Canada has approved settlements with Canadian 
subcontractors when the Procedures Manual on Termination of Contracts 
requires such approval.
* * * * *
    (d) The Canadian Commercial Corporation should send all termination 
settlement proposals submitted by U.S. subcontractors and suppliers to 
the TCO of the cognizant contract administration office of the Defense 
Contract Management Agency for settlement. The TCO will inform the 
Canadian Commercial Corporation of the amount of the net settlement of 
U.S. subcontractors and suppliers so that this amount can be included 
in the Canadian Commercial Corporation termination proposal. * * *


249.7001  [Amended]

    49. Section 249.7001 is amended in paragraph (f) by removing ``DD-
A&T'' and adding in its place ``DD-AT&L''.

PART 250--EXTRAORDINARY CONTRACTUAL ACTIONS


250.201-70  [Amended]

    50. Section 250.201-70 is amended as follows:
    a. In paragraph (b)(1) by removing ``(Acquisition & Technology)

[[Page 39707]]

(USDA&T))'' and adding in its place ``(Acquisition, Technology, and 
Logistics) (USD (AT&L))''; and
    b. In paragraph (b)(2) by removing the parenthetical ``(A&T)'' and 
adding in its place ``(AT&L)''

252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES


252.225-7026  [Amended]

    51. Section 252.225-7026 is amended as follows:
    a. By revising the clause date to read ``(JUN 2000)''; and
    b. In paragraph (b)(3) by removing the parenthetical ``(A&T)'' and 
adding in its place ``(AT&L)''.

PART 253--FORMS


253.213-70  [Amended]

    52. Section 253.213-70 is amended in paragraph (e), under the 
heading ``17 Accounting and Appropriation Data/Local Use--'' by 
removing ``204.7108'' and adding in its place ``204.7107''.

    53. The note at the end of Part 253 is amended as follows:
    a. In the entry ``253.303-1391'' by removing ``FY 19__'' and adding 
in its place ``FY ____'' and
    b. By adding, after the entry ``253.303-1391'', the entry 
``253.303-1391c FY ____ Military Construction Project Data 
(continuation).''.

Appendix A--Armed Services Board of Contract Appeals

PART 2--[AMENDED]

    54. Appendix A to Chapter 2 is amended in Part 2 in the Preface, 
under the heading ``II. Location and Organization of the Board'', in 
paragraph (a) as follows:
    a. By adding ``-3217'' after ``22041'';
    b. By removing ``(202) 756-8500'' and adding in its place ``(703) 
681-8500''; and
    c. By removing ``756-8502'' and adding in its place ``(703) 681-
8502''.

Appendix G--Activity Address Numbers


G-102  [Amended]

    55. Appendix G to Chapter 2 is amended in Section G-102 in 
paragraph (b)(2) by removing the parenthetical ``(A&T)'' and adding in 
its place ``(AT&L)''.

    56. Appendix G, Part 3, is amended by revising the entry 
``N00030''; and by adding, in alpha-numerical order, two new entries to 
read as follows:

PART 3--NAVY ACTIVITY ADDRESS NUMBERS

* * * * *
N00030  Strategic Systems Programs
EK*  3801 Nebraska Avenue
EKO-9  Washington, DC 20393-5446
* * * * *
N46450  Officer-In-Charge
L50-9  Fleet and Industrial Supply Center, Jacksonville Detachment, 
930 USS Hunley Avenue, Room 214, Kings Bay, GA 31547-2617
* * * * *
N68836  Commanding Officer
J9  Fleet and Industrial Supply Center, 110 Yorktown Avenue, 
Jacksonville, FL 32212-0097
* * * * *

    57. Appendix G, Part 4, is amended by removing the entry 
``M67355''; and by adding, in alpha-numerical order, two new entries to 
read as follows:

PART 4--MARINE CORPS ACTIVITY ADDRESS NUMBERS

* * * * *
M20001  Contracting Office
MUN  Headquarters and Service Company
(MAJ00027)  Marine Forces Atlantic, Building CA-486, Room 203, 1468 
Ingram Street, Norfolk, VA 23551-2596
* * * * *
M29000  Contingency Contracting Office
MSZ  3D Force Service Support Group
(MAJ00027)  Marine Forces Pacific, Unit 38404, FPO AP 96604-8404
* * * * *

    58. Appendix G, Part 5, is amended as follows:
    a. By revising the entry ``F04605''; and
    b. In the entry ``F30602'' by removing the abbreviation ``AFRL/
IFK'' and adding in its place ``AFRL/IFOJ''. The revised text reads as 
follows:

PART 5--AIR FORCE ACTIVITY ADDRESS NUMBERS

* * * * *
F04605  452 LSS/LGC
5H  1940 Graeber Street, Building 449, March ARB, CA 92518-1650
* * * * *
[FR Doc. 00-15818 Filed 6-26-00; 8:45 am]
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