[Federal Register Volume 65, Number 28 (Thursday, February 10, 2000)]
[Proposed Rules]
[Page 6574]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-3141]


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DEPARTMENT OF DEFENSE

48 CFR Part 215


Defense Federal Acquisition Regulation Supplement; Profit Policy

AGENCY: Department of Defense (DoD).

ACTION: Advance notice of proposed rulemaking and notice of public 
meeting.

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SUMMARY: The Acting Director of Defense Procurement is soliciting 
comments from both government and industry personnel regarding 
potential changes to the profit policy specified in the Defense Federal 
Acquisition Regulation Supplement (DFARS). The changes would increase 
the emphasis placed on technical risk as a factor in developing 
objective profit amounts. DoD will conduct a public meeting to discuss 
the potential changes as well as the comments received in response to 
this notice.

DATES: Public Meeting: The public meeting will be conducted at the 
address shown below on February 23, 2000, from 9:00 a.m. to 12:00 p.m., 
local time.
    Submission of Names of Expected Attendees: The names of individuals 
expected to attend the public meeting should be submitted to the point 
of contact shown below no later than February 18, 2000, 4:00 p.m., 
local time.
    Submission of Comments: Written comments on the potential DFARS 
changes should be submitted to the address shown below no later than 
February 17, 2000.

ADDRESSES: Public Meeting: The public meeting will be conducted at the 
Headquarters, Defense Logistics Agency, Command Conference Room (Room 
2419), 8725 John J. Kingman Road, Fort Belvoir, Virginia.
    Submission of Names of Expected Attendees: The names of individuals 
expected to attend the public meeting should be submitted to Mr. Robert 
Bemben, by telephone, FAX, mail, or e-mail at the phone number or 
address specified below. Walk-in attendance will be accommodated. 
However, pre-registration is desired, as the names of pre-registrants 
will be provided to building security to facilitate building access.
    Submission of Comments: Interested parties should submit written 
comments to: Mr. Robert Bemben, PDUSD (AT&L) DP/CPF, 3060 Defense 
Pentagon, Washington, DC 20301-3060. E-mail comments should be sent to 
bembenrj&acq.osd.mil. Comments should be accompanied by supporting 
rationale for any proposed changes.

FOR FURTHER INFORMATION CONTACT: Mr. Robert Bemben, by telephone at 
(703) 695-9764; by FAX at (703) 693-9616; or by e-mail at 
bembenrj&acq.osd.mil.

SUPPLEMENTARY INFORMATION:

A. Draft Materials

    The potential changes to the DFARS are available in draft form 
electronically in Microsoft Word 6.0 text format at the Cost, Pricing, 
and Finance Office Internet Home Page: http://www.acq.osd.mil/dp/cpf.

    Note:
     The draft changes do not reflect a proposed rule; they are 
provided for information and discussion purposes only.

    Paper copies may be obtained from the point of contact specified 
herein.

B. Background

    Section 813 of the National Defense Authorization Act for Fiscal 
Year 2000 (Public Law 106-65) directed the Secretary of Defense to 
review the DoD profit guidelines to consider whether appropriate 
modifications, such as placing increased emphasis on technical risk as 
a factor for determining appropriate profit margins, would provide an 
increased profit incentive for contractors to develop and produce 
complex and innovative new technologies.
    Section 813 further required the Secretary of Defense to make any 
changes to the profit guidelines that the Secretary determines to be 
necessary and to report to Congress on the results of the review.
    A review of the DoD profit policy has identified potential changes 
to the DFARS that would increase the emphasis placed on technical risk 
as a factor in developing objective profit amounts. The purpose of this 
notice is to provide the public with a preliminary indication of 
changes under consideration, and to solicit comments and suggestions on 
those changes. After consideration of the comments submitted in writing 
and those offered at the public meeting, the Director of Defense 
Procurement may submit a draft proposed rule to the Defense Acquisition 
Regulations (DAR) Council for consideration. The DAR Council will 
publish any resulting proposed rule for additional public comments.

Michele P. Peterson,
Executive Editor, Defense Acquisition Regulations Council.
[FR Doc. 00-3141 Filed 2-9-00; 8:45 am]
BILLING CODE 5000-04-M