[Federal Register Volume 65, Number 124 (Tuesday, June 27, 2000)]
[Rules and Regulations]
[Pages 39722-39723]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-15815]


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DEPARTMENT OF DEFENSE

48 CFR Parts 242 and 253

[DFARS Case 99-D026]


Defense Federal Acquisition Regulation Supplement; Production 
Surveillance and Reporting

AGENCY: Department of Defense (DoD).

ACTION:  Final rule.

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SUMMARY: The Director of Defense Procurement has issued a final rule 
amending the Defense Federal Acquisition Regulation Supplement (DFARS) 
to revise the criteria for determining the degree of production 
surveillance needed for DoD contracts and to delete obsolete forms. The 
rule requires contract administration offices to conduct a risk 
assessment of each contractor to determine the degree of production 
surveillance needed for contracts awarded to that contractor.

EFFECTIVE DATE: June 27, 2000.

FOR FURTHER INFORMATION CONTACT:  Mr. Rick Layser, Defense Acquisition 
Regulations Council, OUSD (AT&L) DP (DAR), IMD 3D139, 3062 Defense 
Pentagon, Washington, DC 20301-3062. Telephone (703) 602-0293; telefax 
(703) 602-0350. Please cite DFARS Case 99-D026.

SUPPLEMENTARY INFORMATION:

A. Background

    This final rule makes the following changes to the DFARS:
    1. Revises the production surveillance requirements at 242.1104, to 
require

[[Page 39723]]

contract administration offices to conduct a risk assessment of each 
contractor to determine the degree of production surveillance needed 
for contracts awarded to that contractor.
    2. Deletes an obsolete reference to cost/schedule control system 
requirements at 242.1106(a).
    3. Deletes the following obsolete forms: DD Form 375, Production 
Progress Report; DD Form 375c, Production Progress Report 
(Continuation); and DD Form 375-2, Delay in Delivery.
    DoD published a proposed rule on January 13, 2000 (65 FR 2109). Six 
sources submitted comments on the proposed rule. DoD considered all 
comments in the development of 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 primarily affect the allocation 
of Government resources to production surveillance functions.

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 242 and 253

    Government procurement.

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

    Therefore, 48 CFR Parts 242 and 253 are amended as follows:

    1. The authority citation for 48 CFR Parts 242 and 253 continues to 
read as follows:

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

PART 242--CONTRACT ADMINISTRATION AND AUDIT SERVICES

    2. Section 242.1104 is revised to read as follows:


242.1104  Surveillance requirements.

    (a) The cognizant contract administration office (CAO) must--
    (i) Conduct a periodic risk assessment of each contractor to 
determine the degree of production surveillance needed for contracts 
awarded to that contractor. The risk assessment must consider 
information provided by the contractor and the contracting officer;
    (ii) Develop a production surveillance plan based on the risk level 
determined during the risk assessment;
    (iii) Modify the production surveillance plan to incorporate any 
special surveillance requirements for individual contracts, including 
any requirements identified by the contracting officer; and
    (iv) Monitor contract progress and identify potential contract 
delinquencies in accordance with the production surveillance plan.

    3. Section 242.1106 is revised to read as follows:


242.1106  Reporting requirements.

    (a) See DoD 5000.2-R, Mandatory Procedures for Major Defense 
Acquisition Programs (MDAPs) and Major Automated Information System 
(MAIS) Acquisition Programs.
    (b)(i) Within four working days after receipt of the contractor's 
report, the CAO must provide the report and any required comments to 
the contracting officer and, unless otherwise specified in the 
contract, the inventory control manager.
    (ii) If the contractor's report indicates that the contract is on 
schedule and the CAO agrees, the CAO does not need to add further 
comments. In all other cases, the CAO must add comments and recommend a 
course of action.

PART 253--FORMS

    4. The note at the end of Part 253 is amended by removing the 
following entries:
    ``253.303-375 Production Progress Report.
    ``253.303-375c Production Progress Report (Continuation).
    ``253.303-375-2 Delay in Delivery.''

[FR Doc. 00-15815 Filed 6-26-00; 8:45 am]
BILLING CODE 5000-04-M