[Federal Register Volume 72, Number 80 (Thursday, April 26, 2007)]
[Rules and Regulations]
[Pages 20757-20758]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-7911]


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DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Part 203

RIN 0750-AF60


Defense Federal Acquisition Regulation Supplement; Acquisition 
Integrity (DFARS Case 2006-D044)

AGENCY: Defense Acquisition Regulations System, Department of Defense 
(DoD).

ACTION: Final rule.

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SUMMARY: DoD has issued a final rule amending the Defense Federal 
Acquisition Regulation Supplement (DFARS) to address requirements for 
the separation of Government functions for oversight, source selection, 
contract negotiation, and contract award. The rule contains best 
practice policies for use by the military departments and defense 
agencies.

EFFECTIVE DATE: April 26, 2007.

FOR FURTHER INFORMATION CONTACT: Mr. Gary Delaney, Defense Acquisition 
Regulations System, OUSD (AT&L) DPAP (DARS), IMD 3C132, 3062 Defense 
Pentagon, Washington, DC 20301-3062. Telephone (703) 602-8384; 
facsimile (703) 602-0350. Please cite DFARS Case 2006-D044.

SUPPLEMENTARY INFORMATION:

A. Background

    This final rule adds a new section at DFARS 203.170 to address 
requirements for the separation of Government functions for oversight, 
source selection, contract negotiation, and contract award. The rule 
contains best practice policies to ensure the separation of such 
functions.
    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 rule will not have a significant cost or administrative impact 
on contractors or offerors, or a significant effect beyond the internal 
operating procedures of DoD. Therefore, publication for public comment 
under 41 U.S.C. 418b 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 
2006-D044.

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 203

    Government procurement.

Michele P. Peterson,
Editor, Defense Acquisition Regulations System.

0
Therefore, 48 CFR part 203 is amended as follows:

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

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1. The authority citation for 48 CFR part 203 continues to read as 
follows:

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


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2. Section 203.170 is added to read as follows:


203.170  Business practices.

    To ensure the separation of functions for oversight, source 
selection, contract negotiation, and contract award, departments and 
agencies shall adhere to the following best practice policies:
    (a) Senior leaders shall not perform multiple roles in source 
selection for a major weapon system or major service acquisition.
    (b) Vacant acquisition positions shall be filled on an ``acting'' 
basis from below until a permanent appointment is made. To provide 
promising professionals an opportunity to gain experience by 
temporarily filling higher positions, these oversight duties shall not 
be accrued at the top.
    (c) Acquisition process reviews of the military departments shall 
be conducted to assess and improve acquisition and management 
processes, roles, and structures. The scope of the reviews should 
include--
    (1) Distribution of acquisition roles and responsibilities among 
personnel;
    (2) Processes for reporting concerns about unusual or inappropriate 
actions; and
    (3) Application of DoD Instruction 5000.2, Operation of the Defense

[[Page 20758]]

Acquisition System, and the disciplines in the Defense Acquisition 
Guidebook.
    (d) Source selection processes shall be--
    (1) Reviewed and approved by cognizant organizations responsible 
for oversight;
    (2) Documented by the head of the contracting activity or at the 
agency level; and
    (3) Periodically reviewed by outside officials independent of that 
office or agency.
    (e) Legal review of documentation of major acquisition system 
source selection shall be conducted prior to contract award, including 
the supporting documentation of the source selection evaluation board, 
source selection advisory council, and source selection authority.
    (f) Procurement management reviews shall determine whether 
clearance threshold authorities are clear and that independent review 
is provided for acquisitions exceeding the simplified acquisition 
threshold.

 [FR Doc. E7-7911 Filed 4-25-07; 8:45 am]
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