39722 Federal Register / Vol. 65, No. 124 / Tuesday, June 27, 2000 / Rules and Regulations

List of Subjects in 48 CFR Part 215

Government procurement.

Michele P. Peterson,

Executive Editor, Defense Acquisition

Regulations Council.

Therefore, 48 CFR Part 215 is

amended as follows:

1. The authority citation for 48 CFR

Part 215 continues to read as follows:

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

Chapter 1.

PART 215—CONTRACTING BY

NEGOTIATION

215.305 [Amended]

2. Section 215.305 is amended by

removing paragraph (a)(1).

[FR Doc. 00–15816 Filed 6–26–00; 8:45 am]

BILLING CODE 5000–04–M

DEPARTMENT OF DEFENSE

48 CFR Part 232

[DFARS Case 2000–D009]

Defense Federal Acquisition

Regulation Supplement; Progress

Payments for Foreign Military Sales

Contracts

AGENCY: Department of Defense (DoD).

ACTION: Final rule.

SUMMARY: The Director of Defense

Procurement has issued a final rule

amending the Defense Federal

Acquisition Regulation Supplement

(DFARS) to clarify that DoD applies

progress payments to contracts

containing foreign military sales (FMS)

requirements in the same manner that it

applies progress payments to contracts

containing DoD requirements.

EFFECTIVE DATE: June 27, 2000.

FOR FURTHER INFORMATION CONTACT: Ms.

Sandra Haberlin, Defense Acquisition

Regulations Council, OUSD (AT&L) DP

(DAR), IMD 3D139, 3062 Defense

Pentagon, Washington, DC 20301–3062.

Telephone (703) 602–0289; telefax (703)

602–0350. Please cite DFARS Case

2000–D009.

SUPPLEMENTARY INFORMATION:

A. Background

This final rule amends DFARS

Subpart 232.5, Progress Payments Based

on Costs, to clarify that the application

of customary progress payments is the

same for both DoD and FMS contract

requirements. The rule also makes

editorial changes to update and simplify

the text.

This rule was not subject to Office of

Management and Budget review under

Executive Order 12866, dated

September 30, 1993.

B. Regulatory Flexibility Act

This final rule does not constitute a

significant revision within the meaning

of FAR 1.501 and Public Law 98–577

and publication for public comment is

not required. However, DoD will

consider comments from small entities

concerning the affected DFARS subpart

in accordance with 5 U.S.C. 610. Such

comments should cite DFARS Case

2000–D009.

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 232

Government procurement.

Michele P. Peterson,

Executive Editor, Defense Acquisition

Regulations Council.

Therefore, 48 CFR Part 232 is

amended as follows:

1. The authority citation for 48 CFR

Part 232 continues to read as follows:

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

Chapter 1.

PART 232—CONTRACT FINANCING

2. Sections 232.501—1 and 232.501–

2 are revised to read as follows:

232.501–1 Customary progress payment

rates.

(a) The customary uniform progress

payment rates for DoD contracts,

including contracts that contain foreign

military sales (FMS) requirements, are

75 percent for large businesses, 90

percent for small businesses, and 95

percent for small disadvantaged

businesses.

232.501–2 Unusual progress payemnts.

(a) Unusual progress payment

arrangmeents require the advance

approval of the Director of Defense

Procurment, Office of the Under

Secretary of Defense (Acquisition,

Technology, and Logistics) (OUSD

(AT&L) DP). Contracting officers must

submit all unusual progress payment

requests to the department or agency

contract financing office for approval,

coordination with the Contract Finance

Committee (see 232.071), and

submission to OUSD (AT&L) DP.

232.501–3 [Amended]

3. Section 232.501–3 is amended in

paragraph (b) introductory text in the

second sentence by removing the word

‘‘shall’’ and adding in its place the word

‘‘must’’.

232.502–1–70 [Removed]

4. Section 232.502–1–70 is removed.

5. Section 232.502–4–70 is amended

by revising paragraph (a) to read as

follows:

232.502–4–70 Additional clauses.

(a) Use the clause at 252.232–7002,

Progress Payments for Foreign Military

Sales Acquisitions, in solicitations and

contracts that—

(i) Contain FMS requirements; and

(ii) Provide for progress payments.

* * * * *

232.503–6 [Amended]

6. Section 232.503–6 is amended in

paragraph (g)(i) by removing the word

‘‘shall’’ and adding in its place the word

‘‘must’’.

[FR Doc. 00–15817 Filed 6–26–00; 8:45 am]

BILLING CODE 5000–04–M

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.

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

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