Federal Register / Vol. 90, No. 11 / Friday, January 17, 2025 / Rules and Regulations 5735 

material misstatement of such 

information will not be prevented, or 

detected and corrected, on a timely 

basis. A reasonable possibility exists 

when the likelihood of an event 

occurring is— 

(1) Probable; or 

(2) More than remote but less than 

likely (section 806 of Pub. L. 116–283). 

* * * * * 

(d) Material weaknesses. (1) The 

Contracting Officer will provide 

notification of initial determination to 

the Contractor, in writing, of any 

material weaknesses. The initial 

determination will describe the 

underlying deficiency in sufficient 

detail to allow the Contractor to 

understand the weakness or deficiency. 

(2) The Contractor shall respond 

within 30 days to a written initial 

determination from the Contracting 

Officer that identifies material 

weaknesses in the Contractor’s 

purchasing system. If the Contractor 

disagrees with the initial determination, 

the Contractor shall state, in writing, its 

rationale for disagreeing. 

(3) The Contracting Officer will 

evaluate the Contractor’s response and 

notify the Contractor, in writing, of the 

Contracting Officer’s final determination 

concerning— 

(i) Remaining material weaknesses; 

(ii) The adequacy of any proposed or 

completed corrective action; and 

(iii) System disapproval, if the 

Contracting Officer determines that one 

or more material weaknesses remain. 

(e) If the Contractor receives the 

Contracting Officer’s final determination 

of material weaknesses, the Contractor 

shall, within 45 days of receipt of the 

final determination, either correct the 

material weaknesses or submit an 

acceptable corrective action plan 

showing milestones and actions to 

eliminate the weaknesses. 

* * * * * 

Alternate I. * * * 

Contractor Purchasing System 

Administration—Alternate I (Jan 2025) 

(a) * * * 

Material weakness means a deficiency 

or combination of deficiencies in the 

internal control over information in 

contractor business systems, such that 

there is a reasonable possibility that a 

material misstatement of such 

information will not be prevented, or 

detected and corrected, on a timely 

basis. A reasonable possibility exists 

when the likelihood of an event 

occurring is— 

(1) Probable; or 

(2) More than remote but less than 

likely (section 806 of Pub. L. 116–283). 

* * * * * 

(d) Material weaknesses. (1) The 

Contracting Officer will provide 

notification of initial determination to 

the Contractor, in writing, of any 

material weaknesses. The initial 

determination will describe the 

underlying deficiency in sufficient 

detail to allow the Contractor to 

understand the weaknesses or 

deficiency. 

(2) The Contractor shall respond 

within 30 days to a written initial 

determination from the Contracting 

Officer that identifies material 

weaknesses in the Contractor’s 

purchasing system. If the Contractor 

disagrees with the initial determination, 

the Contractor shall state, in writing, its 

rationale for disagreeing. 

(3) The Contracting Officer will 

evaluate the Contractor’s response and 

notify the Contractor, in writing, of the 

Contracting Officer’s final determination 

concerning— 

(i) Remaining material weaknesses; 

(ii) The adequacy of any proposed or 

completed corrective action; and 

(iii) System disapproval, if the 

Contracting Officer determines that one 

or more material weaknesses remain. 

(e) If the Contractor receives the 

Contracting Officer’s final determination 

of material weaknesses, the Contractor 

shall, within 45 days of receipt of the 

final determination, either correct the 

material weaknesses or submit an 

acceptable corrective action plan 

showing milestones and actions to 

eliminate the weaknesses. 

* * * * * 

■ 23. Amend section 252.245–7003— 

■ a. By revising the clause date; 

■ b. In paragraph (a) by— 

■ i. Adding in alphabetical order the 

definition of ‘‘Material weakness’’; and 

■ ii. Removing the definition of 

‘‘Significant deficiency’’; 

■ c. In paragraph (c), by removing 

‘‘paragraph (f)’’ and adding ‘‘paragraphs 

(b) and (f)’’ in its place; 

■ d. By revising and republishing 

paragraph (d); and 

■ e. By revising paragraph (e). 

The addition, revisions, and 

republication read as follows: 

252.245–7003 Contractor Property 

Management System Administration. 

* * * * * 

Contractor Property Management 

System Administration (Jan 2025) 

(a) * * * 

Material weakness means a deficiency 

or combination of deficiencies in the 

internal control over information in 

contractor business systems, such that 

there is a reasonable possibility that a 

material misstatement of such 

information will not be prevented, or 

detected and corrected, on a timely 

basis. A reasonable possibility exists 

when the likelihood of an event 

occurring is— 

(1) Probable; or 

(2) More than remote but less than 

likely (section 806 of Pub. L. 116–283). 

* * * * * 

(d) Material weaknesses. (1) The 

Contracting Officer will provide an 

initial determination to the Contractor, 

in writing, of any material weaknesses. 

The initial determination will describe 

the underlying deficiency in sufficient 

detail to allow the Contractor to 

understand the weaknesses or 

deficiency. 

(2) The Contractor shall respond 

within 30 days to a written initial 

determination from the Contracting 

Officer that identifies material 

weaknesses in the Contractor’s property 

management system. If the Contractor 

disagrees with the initial determination, 

the Contractor shall state, in writing, its 

rationale for disagreeing. 

(3) The Contracting Officer will 

evaluate the Contractor’s response and 

notify the Contractor, in writing, of the 

Contracting Officer’s final determination 

concerning— 

(i) Remaining material weaknesses; 

(ii) The adequacy of any proposed or 

completed corrective action; and 

(iii) System disapproval, if the 

Contracting Officer determines that one 

or more material weaknesses remain. 

(e) If the Contractor receives the 

Contracting Officer’s final determination 

of material weaknesses, the Contractor 

shall, within 45 days of receipt of the 

final determination, either correct the 

material weaknesses or submit an 

acceptable corrective action plan 

showing milestones and actions to 

eliminate the material weaknesses. 

* * * * * 

[FR Doc. 2025–00721 Filed 1–16–25; 8:45 am] 

BILLING CODE 6001–FR–P 

DEPARTMENT OF DEFENSE 

Defense Acquisition Regulations 

System 

48 CFR Parts 206, 217, 219, and 252 

[Docket DARS–2024–0001] 

Defense Federal Acquisition 

Regulation Supplement; Technical 

Amendments 

AGENCY: Defense Acquisition 

Regulations System, Department of 

Defense (DoD). 

ACTION: Final rule; technical 

amendment. 


KHAMMOND on DSK9W7S144PROD with RULES
5736 Federal Register / Vol. 90, No. 11 / Friday, January 17, 2025 / Rules and Regulations 

SUMMARY: DoD is amending the Defense 

Federal Acquisition Regulation 

Supplement (DFARS) to make needed 

editorial changes. 

DATES: Effective January 17, 2025. 

FOR FURTHER INFORMATION CONTACT: Ms. 

Jennifer D. Johnson, Defense 

Acquisition Regulations System, 

telephone 703–717–8226. 

SUPPLEMENTARY INFORMATION: This final 

rule amends the DFARS to make needed 

editorial changes to comply with 

DFARS drafting conventions. 

List of Subjects in 48 CFR Parts 206, 

217, 219, and 252 

Government procurement. 

Jennifer D. Johnson, 

Editor/Publisher, Defense Acquisition 

Regulations System. 

Therefore, the Defense Acquisition 

Regulations System amends 48 CFR 

parts 206, 217, 219, and 252 as follows: 

■ 1. The authority citation for 48 CFR 

parts 206, 217, 219, and 252 continues 

to read as follows: 

Authority: 41 U.S.C. 1303 and 48 CFR 

chapter 1. 

PART 206—COMPETITION 

REQUIREMENTS 

206.303–1 [Amended] 

■ 2. Amend section 206.303–1 in 

paragraphs (b) introductory text and 

(b)(1) by removing ‘‘sole source’’ and 

adding ‘‘sole-source’’ in its place. 

PART 217—SPECIAL CONTRACTING 

METHODS 

■ 3. Amend section 217.172 by revising 

paragraph (f)(2) to read as follows: 

217.172 Multiyear contracts for supplies. 

* * * * * 

(f) * * * 

(2) In addition, for contracts equal to 

or greater than $750 million, the head of 

the contracting activity must determine 

that the conditions required by 

paragraphs (h)(2)(i) through (vii) of this 

section will be met by such contract, in 

accordance with the Secretary’s 

certification and determination required 

by paragraph (h)(2) of this section. 

* * * * * 

PART 219—SMALL BUSINESS 

PROGRAMS 

219.808–1 [Amended] 

■ 4. Amend section 219.808–1 in the 

introductory text by removing ‘‘sole 

source’’ and adding ‘‘sole-source’’ in its 

place. 

PART 252—SOLICITATION 

PROVISIONS AND CONTRACT 

CLAUSES 

■ 5. Amend section 252.225–7003— 

■ a. By revising the provision heading 

and date; 

■ b. In paragraphs (b) introductory text 

and (b)(2) introductory text, by 

removing ‘‘offeror’’ wherever it appears 

and adding ‘‘Offeror’’ in its place; and 

■ c. In paragraphs (d) introductory text 

and (e), by removing ‘‘offeror’’ and 

adding ‘‘Offeror’’ in its place. 

The revisions read as follows: 

252.225–7003 Report of Intended 

Performance Outside the United States and 

Canada—Submission with Offer. 

* * * * * 

REPORT OF INTENDED PERFORMANCE 

OUTSIDE THE UNITED STATES AND 

CANADA—SUBMISSION WITH OFFER 

(JAN 2025) 

* * * * * 

[FR Doc. 2024–31569 Filed 1–16–25; 8:45 am] 

BILLING CODE 6001–FR–P 

DEPARTMENT OF DEFENSE 

Defense Acquisition Regulations 

System 

48 CFR Part 252 

[Docket DARS–2022–0030] 

RIN 0750–AL67 

Defense Federal Acquisition 

Regulation Supplement: Update of 

Challenge Period for Validation of 

Asserted Restrictions on Technical 

Data and Computer Software (DFARS 

Case 2022–D016) 

AGENCY: Defense Acquisition 

Regulations System, Department of 

Defense (DoD). 

ACTION: Final rule. 

SUMMARY: DoD is issuing a final rule 

amending the Defense Federal 

Acquisition Regulation Supplement 

(DFARS) to implement a section of the 

National Defense Authorization Act for 

Fiscal Year 2012, which addresses the 

validation of proprietary data 

restrictions. 

DATES: Effective January 17, 2025. 

FOR FURTHER INFORMATION CONTACT: 

David Johnson, telephone 202–913– 

5764. 

SUPPLEMENTARY INFORMATION: 

I. Background 

DoD published a proposed rule in the 

Federal Register at 89 FR 31686 on 

April 25, 2024, to implement section 

815(b) of the National Defense 

Authorization Act (NDAA) for Fiscal 

Year (FY) 2012 (Pub. L. 112–81). Section 

815(b) amended 10 U.S.C. 2321 

(currently 10 U.S.C. 3782) by increasing 

the validation period for asserted 

restrictions from three years to six years. 

Section 815(b) also amended 10 U.S.C. 

2321 to provide an exception to the 

prescribed time limit for validation of 

asserted restrictions if the technical data 

involved are the subject of a 

fraudulently asserted use or release 

restriction. Two respondents submitted 

public comments in response to the 

proposed rule. DoD also held a public 

meeting on May 17, 2024. 

II. Discussion and Analysis 

DoD reviewed the public comments in 

the development of the final rule. A 

discussion of the comments and the 

changes made to the rule as a result of 

those comments is provided, as follows: 

A. Summary of Significant Changes 

From the Proposed Rule 

There are no significant changes from 

the proposed rule. 

B. Analysis of Public Comments 

1. Technical Data or Software Delivered, 

Furnished, or Otherwise Provided to the 

Government 

Comment: The respondents suggested 

that the revisions to the clauses at 

DFARS 252.227–7019, Validation of 

Asserted Restrictions—Computer 

Software, and 252.227–7037, Validation 

of Restrictive Markings on Technical 

Data, to consistently reference technical 

data and computer software ‘‘delivered 

or otherwise provided to the 

Government’’ should be removed from 

the final rule. The existing clause 

language already references technical 

data delivered, software delivered, 

technical data required to be delivered, 

and software required to be delivered. 

Respondents assert that the phrase 

‘‘otherwise provided to the 

Government’’ is ambiguous and 

inconsistent with existing statutes. The 

respondents also asserted that this 

language may result in a potential 

chilling effect on the relationship 

between Government and contractors. 

Response: References to technical 

data and computer software ‘‘delivered 

or otherwise provided’’ to the 

Government appear multiple times in 

the current contract clauses at DFARS 

252.227–7013, Rights in Technical 

Data—Other Than Commercial Products 

and Commercial Services, and DFARS 

252.227–7014, Rights in Other Than 

Commercial Computer Software and 

Other Than Commercial Computer 


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