Federal Register / Vol. 62, No. 161 / Wednesday, August 20, 1997 / Rules and Regulations 44223

related to a Phase III contract in support

of the SBIR Program.

* * * * *

(e) * * *

(4) Block E4—CONTINGENCY

OPERATION. Enter code Y in Block E4

if the contracting action is in support of

a contingency operation, as defined in

213.101, and the action exceeds the

simplified acquisition threshold for

contingency operations (see 213.000).

Otherwise, leave Block E4 blank.

(5) BLOCK E5—BLOCK E8—

RESERVED.

* * * * *

4. Section 253.204–71 is amended by

revising paragraph (a)(3) to read as

follows:

253.204–71 DD Form 1057, Monthly

Contracting Summary of Actions $25,000 or

Less.

(a) * * *

(3) Report actions of $25,000 or less

in support of a contingency operation in

accordance with the instructions in

paragraphs (c) through (j) of this

subsection. Report actions exceeding

$25,000 but not exceeding $200,000 in

support of a contingency operation (see

213.000) on the monthly DD Form 1057

as follows:

(i) Section B; the applicable lines are

5, 5a, 7, and 7a.

(ii) Section C; the applicable lines are

1 and 1c, 2 and 2c, and 3 and 3c.

(iii) Sections D, E, and F, are not

applicable.

(iv) Section G; complete fully.

* * * * *

[FR Doc. 97–21888 Filed 8–19–97; 8:45 am]

BILLING CODE 5000–04–M

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.

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
44224 Federal Register / Vol. 62, No. 161 / Wednesday, August 20, 1997 / Rules and Regulations

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: lllllllllllllll

Facility: llllllllllllllll

Military or Federal Specification or Standard:

lllllllllllllllllllll

Affected Contract Line Item and Subline Item

Number and Requirement Citation:

lllllllllllllllllllll

lllllllllllllllllllll

Cognizant Administrative Contracting

Officer:

lllllllllllllllllllll

(End of clause)

[FR Doc. 97–21887 Filed 8–19–97–8:45 am]

BILLING CODE 5000–04–M

DEPARTMENT OF DEFENSE

48 CFR Part 225

[DFARS Case 96–D023]

Defense Federal Acquisition

Regulation Supplement; Foreign

Machine Tools and Powered and NonPowered Valves

AGENCY: Department of Defense (DoD).