[Federal Register Volume 62, Number 161 (Wednesday, August 20, 1997)]
[Rules and Regulations]
[Pages 44223-44224]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-21887]


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DEPARTMENT OF DEFENSE

48 CFR Parts 211, 242, and 252

[DFARS Case 97-D014]


Defense Federal Acquisition Regulation Supplement; Single Process 
Initiative

AGENCY: Department of Defense (DoD).

ACTION: Interim rule with request for comments.

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SUMMARY: The Director of Defense Procurement has issued an interim rule 
amending the Defense Federal Acquisition Regulation Supplement (DFARS) 
to facilitate the use of management or manufacturing processes that 
have been accepted by DoD under the Single Process Initiative (SPI) for 
use in lieu of military or Federal specifications and standards.

DATES: Effective date: August 20, 1997.
    Comment Date: Comments on the interim rule should be submitted in 
writing to the address shown below on or before October 20, 1997, to be 
considered in the formulation of the final rule.

ADDRESSES: Interested parties should submit written comments to: 
Defense Acquisition Regulations Council, Attn: Mr. Rick Layser, 
PDUSD(A&T)DP(DAR), IMD 3D139, 3062 Defense Pentagon, Washington, DC 
20301-3062. Telefax number: (703) 602-0350. Please cite DFARS Case 97-
D014 in all correspondence related to this issue.

FOR FURTHER INFORMATION CONTACT: Mr. Rick Layser, (703) 602-0131.

SUPPLEMENTARY INFORMATION:

A. Background

    This interim rule adds a new section at DFARS 211.273 and a new 
contract clause at DFARS 252.211-7005 to encourage offerors to propose 
the use of SPI processes in lieu of military or Federal specifications 
and standards cited in DoD solicitations; and establishes that, in 
procurements of previously developed items, SPI processes shall be 
considered valid replacements for military or Federal specifications 
and standards, absent a specific determination to the contrary.

B. Determination To Issue an Interim Rule

    A determination has been made under the authority of the Secretary 
of Defense that urgent and compelling reasons exist to publish this 
interim rule prior to affording the public an opportunity to comment. 
The interim rule amends the DFARS to implement the policy set forth in 
a memorandum issued by the Under Secretary of Defense (Acquisition and 
Technology) on April 30, 1997, with regard to SPI and new contracts. 
This interim rule is necessary to permit the Government and industry to 
realize, as soon as possible, the significant cost savings anticipated 
from allowing contractors to use previously accepted facilitywide 
management and manufacturing processes in lieu of military or Federal 
specifications and standards. Comments received in response to the 
publication of this interim rule will be considered in formulating the 
final rule.

C. Regulatory Flexibility Act

    The interim rule is not expected to 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 it is 
estimated that, of the 180 contractors presently participating in SPI, 
less than 5 percent are small businesses. An Initial Regulatory 
Flexibility Analysis has therefore not been performed. Comments are 
invited from small businesses and other interested parties. Comments 
from small entities concerning the affected DFARS subparts also will be 
considered in accordance with 5 U.S.C. 610. Such comments should be 
submitted separately and should cite DFARS Case 97-D014 in 
correspondence.

D. Paperwork Reduction Act

    The Paperwork Reduction Act (44 U.S.C. 3501, et seq.) applies 
because the interim rule contains a new information collection 
requirement. Under the emergency processing provisions of 44 U.S.C. 
3507(j) as implemented at 5 CFR 1320.13, the Office of Management and 
Budget (OMB) has granted emergency approval of the information 
collection requirement through December 31, 1997, under OMB Control 
Number 0704-0398. The OMB approval required under 44 U.S.C. 3507(a)(2) 
will be obtained prior to publication of the final rule.

Comments

    Comments are invited. In particular, comments are solicited on:
    a. Whether the collection of information is necessary for the 
proper performance of the functions of the agency, including whether 
the information will have practical utility;
    b. The accuracy of the agency's estimate of the burden of the 
collection of information;
    c. Ways to enchance the quality, utility, and clarity of the 
information to be collected; and
    d. Ways to minimize the burden of the collection of information on 
respondents, including use of appropriate automated collection 
techniques or other forms of information technology.

Title, Associated Form, OMB Control Number

    DFARS Section 211.273, Substitutions for Military or Federal 
Specifications and Standards, and related clause at 252.211-7005, 
Substitutions for Military or Federal Specifications and Standards; OMB 
Control Number 0704-0398.

Needs and Uses

    The information collection permits offerors to propose SPI 
processes in lieu of military or Federal specifications and standards 
cited in DoD solicitations for previously developed items. The 
information will be used by the Government to identify and verify 
Government acceptance of an SPI

[[Page 44224]]

process as a valid replacement for a military or Federal specification 
or standard cited in a solicitation.
    Affected Public: Businesses or other for-profit and not-for-profit 
institutions.
    Annual Burden Hours: 540.
    Number of Respondents: 180.
    Responses Per Respondent: 3.
    Annual Responses: 540.
    Average Burden Per Response: 1 hour.
    Frequency: On occasion.

SUPPLEMENTARY INFORMATION: Respondents are offerors responding to DoD 
solicitations for previously developed items that cite military or 
Federal specifications or standards, when the offeror has a management 
or manufacturing process that has been previously accepted by DoD, 
under SPI, as a valid replacement for a military or Federal 
specification or standard.

List of Subjects in 48 CFR Parts 211, 242, and 252

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

    Therefore, 48 CFR Parts 211, 242, and 252 are amended as follows:
    1. The authority citation for 48 CFR Parts 211, 242, and 252 
continues to read as follows:

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

 PART 211--DESCRIBING AGENCY NEEDS

    2. Sections 211.273 through 211.273-4 are added to read as follows:


 211.273  Substitutions for military or Federal specifications and 
standards.


211.273-1  Definition.

    ``SPI process,'' as used in this section, is defined in the clause 
at 252.211-7005, Substitutions for Military or Federal Specifications 
and Standards.


211.273-2  Policy.

    (a) Under the Single Process Initiative (SPI), DoD accepts SPI 
processes in lieu of specific military or Federal specifications or 
standards that specify a management or manufacturing process.
    (b) DoD acceptance of an SPI process follows the decision of a 
Management Council, which includes representatives from the Defense 
Contract Management Command, the Defense Contract Audit Agency, and the 
military departments.
    (c) In procurements of previously developed items, SPI processes 
that previously were accepted by the Management Council shall be 
considered valid replacements for military or Federal specifications or 
standards, absent a specific determination to the contrary (see 
211.273-3(c)).


211.273-3  Procedures.

    (a) Solicitations for previously developed items shall encourage 
offerors to identify SPI processes for use in lieu of military or 
Federal specifications and standards cited in the solicitation. The 
solicitation shall require an offeror proposing to use an SPI process 
to include, in its response to the solicitation, documentation of the 
Government acceptance of the process.
    (b) Contracting officers shall ensure that--
    (1) Concurrence of the requiring activity has been or will be 
obtained for any proposed substitutions prior to contract award; and
    (2) Any necessary additional information regarding the SPI process 
identified in the proposal is obtained from the cognizant 
administrative contracting officer.
    (c) Any determination that an SPI process is not acceptable for a 
specific procurement shall be made at the head of the contracting 
activity or program executive officer level. This authority may not be 
delegated.


211.273-4  Contract clause.

    Use the clause at 252.211-7005, Substitutions for Military or 
Federal Specifications and Standards, in solicitations and contracts 
exceeding the micro-purchase threshold, when procuring previously 
developed items.

PART 242--CONTRACT ADMINISTRATION

    3. Section 242.302 is amended by adding paragraph (a) (S-70) to 
read as follows:


242.302  Contract administration functions.

    (a) * * *
    (S-70) Serve as the single point of contact for all Single Process 
Initiative (SPI) Management Council activities. The ACO shall negotiate 
and execute facilitywide class modifications and agreements for SPI 
processes, when authorized by the affected components.
* * * * *

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

    4. Section 252.211-7005 is added to read as follows:


252.211-7005  Substitutions for Military or Federal Specifications and 
Standards.

     As prescribed in 211.273-4, use the following clause:

SUBSTITUTIONS FOR MILITARY OR FEDERAL SPECIFICATIONS AND STANDARDS 
(AUG 1997)
     (a) Definition. ``SPI process,'' as used in this clause, means 
a management or manufacturing process that has been accepted 
previously by the Department of Defense under the Single Process 
Initiative (SPI) for use in lieu of a specific military or Federal 
specification or standard. Under SPI, these processes are reviewed 
and accepted by a Management Council, which includes representatives 
from the Defense Contract Management Command, the Defense Contract 
Audit Agency, and the military departments.
    (b) Offerors are encouraged to propose SPI processes in lieu of 
military or Federal specifications and standards cited in the 
solicitation.
    (c) An offeror proposing to use an SPI process shall--
    (1) Identify the specific military or Federal specification or 
standard for which the SPI process has been accepted, and the 
specific paragraph or other location in the solicitation where the 
military or Federal specification or standard is required;
    (2) Provide a copy of the Department of Defense acceptance of 
the SPI process;
    (3) Identify each facility at which the offeror proposes to use 
the specific SPI process; and
    (4) Unless provided in response to paragraph (c)(2) of this 
clause, provide the name and telephone number of the cognizant 
Administrative Contracting Officers for each facility where the SPI 
process is proposed for use.
    (d) Absent a determination at the head of the contracting 
activity or program executive officer level that an SPI process is 
not acceptable for this procurement, the Contractor shall use the 
following SPI processes in lieu of military or Federal 
specifications and standards:

(Offeror Insert Information for Each SPI Process)

SPI Process:-----------------------------------------------------------
Facility:--------------------------------------------------------------
Military or Federal Specification or Standard:
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Affected Contract Line Item and Subline Item Number and Requirement 
Citation:
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Cognizant Administrative Contracting Officer:
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(End of clause)

[FR Doc. 97-21887 Filed 8-19-97-8:45 am]
BILLING CODE 5000-04-M