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###### Department of Defense

###### Defense Acquisition Regulations System 

          - 48 CFR Part 203 
          - RIN 0750-AF60 

# AGENCY:

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

# ACTION:

Final rule. 

# 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.

Therefore, 48 CFR part 203 is amended as follows: 

# PART 203—IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF INTEREST 

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. 

2. Section 203.170 is added to read as follows: 

203.170 

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                                   ( print 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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