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###### Department of Defense

          - 48 CFR Parts 217 and 252 
          - [DFARS Case 2003-D079] 

# AGENCY:

Department of Defense (DoD). 

# ACTION:

Proposed rule with request for comments. 

# SUMMARY:

DoD is proposing to amend the Defense Federal Acquisition Regulation Supplement (DFARS) to update text on the use of special contracting methods. This proposed rule is a result of a transformation initiative undertaken by DoD to dramatically change the purpose and content of the DFARS. 

# DATES:

Comments on the proposed rule should be submitted in writing to the address shown below on or before November 15, 2005, to be considered in the formation of the final rule. 

# ADDRESSES:

You may submit comments, identified by DFARS Case 2003-D079, using any of the following methods: 
      - Federal eRulemaking Portal: http://www.regulations.gov.                          Follow the instructions for submitting comments.                     
      - Defense Acquisition Regulations Web site: http://emissary.acq.osd.mil/​      ( print page 54696)    dar/​dfars.nsf/​pubcomm.                                                  Follow the instructions for submitting comments.                     
      - E-mail: dfars@osd.mil.                          Include DFARS Case 2003-D079 in the subject line of the message.                     
      - Fax: (703) 602-0350.
      - Mail: Defense Acquisition Regulations Council, Attn: Ms. Robin Schulze, OUSD (AT&L) DPAP (DAR), IMD 3C132, 3062 Defense Pentagon, Washington, DC 20301-3062.
      - Hand Delivery/Courier: Defense Acquisition Regulations Council, Crystal Square 4, Suite 200A, 241 18th Street, Arlington, VA 22202-3402.

                        All comments received will be posted to                         *http://emissary.acq.osd.mil/​dar/​dfars.nsf.*

# FOR FURTHER INFORMATION CONTACT:

Ms. Robin Schulze, (703) 602-0326. 

# SUPPLEMENTARY INFORMATION:

## A. Background 

                    DFARS Transformation is a major DoD initiative to dramatically change the purpose and content of the DFARS. The objective is to improve the efficiency and effectiveness of the acquisition process, while allowing the acquisition workforce the flexibility to innovate. The transformed DFARS will contain only requirements of law, DoD-wide policies, delegations of FAR authorities, deviations from FAR requirements, and policies/procedures that have a significant effect beyond the internal operating procedures of DoD or a significant cost or administrative impact on contractors or offerors. Additional information on the DFARS Transformation initiative is available at                     *http://www.acq.osd.mil/​dpap/​dars/​dfars/​transformation/​index.htm.*

This proposed rule is a result of the DFARS Transformation initiative. The proposed DFARS changes—
    - Clarify text on the use of option clauses for industrial capability production planning;
    - Delete unnecessary text on determinations for interagency acquisitions under the Economy Act;
    - Delete restrictive requirements relating to the use of master agreements for vessel repair;
    - Delete obsolete procedures for acquisition of bakery and dairy products;
    - Lower the level for approval of profit on undefinitized contract actions for which substantial performance has been completed; and
    - Delete guidance on the use of options; and procedures for preparation of master agreements and job orders, for breakout and acquisition of spare parts, and for acquisition of work over and above contract requirements. Text on these subjects will be relocated to the new DFARS companion resource, Procedures, Guidance, and Information (PGI). Additional information on PGI is available at http://www.acq.osd.mil/​dpap/​dars/​pgi. 

This rule was not subject to Office of Management and Budget review under Executive Order 12866, dated September 30, 1993. 

## B. Regulatory Flexibility Act 

                    DoD does not expect this rule 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 the rule updates, streamlines, and clarifies DFARS requirements, but makes no significant change to DoD contracting policy. Therefore, DoD has not performed an initial regulatory flexibility analysis. DoD invites comments from small businesses and other interested parties. DoD also will consider comments from small entities concerning the affected DFARS subparts in accordance with 5 U.S.C. 610. Such comments should be submitted separately and should cite DFARS Case 2003-D079.                 

## 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 Parts 217 and 252

      - Government procurement

Michele P. Peterson, 

Editor, Defense Acquisition Regulations System. 

Therefore, DoD proposes to amend 48 CFR Parts 217 and 252 as follows:

1. The authority citation for 48 CFR Parts 217 and 252 continues to read as follows: 

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

# PART 217—SPECIAL CONTRACTING METHODS 

2. Section 217.202 is revised to read as follows: 

217.202 

See PGI 217.202 for guidance on the use of options. 

217.208 

3. Section 217.208 is amended in the first sentence by revising the parenthetical to read “(10 U.S.C. 2305(a)(5))”. 

4. Section 217.208-70 is amended by revising paragraph (b) introductory text and paragraph (b)(1) to read as follows: 

217.208-70 

* * * * *

(b) When a surge option is needed in support of industrial capability production planning, use the clause at 252.217-7001, Surge Option, in solicitations and contracts. 

(1) Insert the percentage of increase the option represents in paragraph (a) of the clause to ensure adequate quantities are available to meet item requirements. 

* * * * *

217.503 

5. Section 217.503 is removed. 

6. Sections 217.7103 and 217.7103-1 are revised to read as follows: 

217.7103 

217.7103-1 

Follow the procedures at PGI 217.7103-1 for preparation of master agreements. 

7. Section 217.7103-3 is amended by revising paragraph (b) and removing paragraphs (c) through (f). The revised text reads as follows: 

217.7103-3 

* * * * *

(b) Follow the procedures at PGI 217.7103-3 when preparing solicitations for job orders. 

217.7103-4 

8. Section 217.7103-4 is removed. 

217.7103-5 

9. Sections 217.7103-5 through 217.7103-7 are redesignated as sections 217.7103-4 through 217.7103-6, respectively. 

10. Newly designated section 217.7103-4 is amended by revising paragraph (b) and removing paragraph (c). The revised text reads as follows: 

217.7103-4 

* * * * *

(b) Follow the procedures at PGI 217.7103-4 when processing this type of undefinitized contract action. 

11. Newly designated section 217.7103-5 is revised to read as follows: 

217.7103-5 

Follow the procedures at PGI 217.7103-5 if the nature of any repairs is such that their extent and probable cost cannot be ascertained readily. 

      ( print page 54697)    

# Subpart 217.72 [Removed and Reserved] 

12. Subpart 217.72 is removed and reserved. 

13. Section 217.7404-5 is amended by revising paragraphs (b)(1) and (2) to read as follows: 

217.7404-5 

* * * * *

(b) * * * 

(1) A contingency operation; or 

(2) A humanitarian or peacekeeping operation. 

217.7404-6 

14. Section 217.7404-6 is amended in the introductory text by removing “agency” and adding in its place “contracting activity”. 

217.7405 

15. Section 217.7405 is removed. 

217.7406 

16. Section 217.7406 is redesignated as section 217.7405. 

17. Section 217.7500 is amended by removing the parenthetical “(as defined in appendix E)”. 

217.7501 through 217.7504

18. Sections 217.7501 through 217.7504 are redesignated as sections 217.7502 through 217.7505, respectively. 

19. A new section 217.7501 is added to read as follows: 

217.7501 

*Replenishment parts,*                             as used in this subpart, means repairable or consumable parts acquired after the initial provisioning process.                         

217.7502 

20. Newly designated section 217.7502 is amended as follows: 

a. In paragraph (b)(1) by removing “217.7503” and adding in its place “PGI 217.7504”; and 

b. In paragraph (c) by removing “217.7504” and adding in its place “217.7505”. 

21. Newly designated sections 217.7503 and 217.7504 are revised to read as follows: 

217.7503 

Follow the procedures at PGI 217.7503 for acquiring spare parts concurrently with the end item. 

217.7504 

Follow the procedures at PGI 217.7504 when acquiring parts for which the Government does not have the necessary data. 

22. Section 217.7506 is added to read as follows: 

217.7506 

See PGI 217.7506 and DoD 4140.1-R, DoD Supply Chain Materiel Management Regulation, Chapter 8, Section C8.3, for spare parts breakout requirements. 

217.7600 

23. Section 217.7600 is removed. 

24. Section 217.7601 is revised to read as follows: 

217.7601 

(a) Follow the procedures at PGI 217.7601 for contracts with provisioning requirements. 

(b) For technical requirements of provisioning, see DoD 4140.1-R, DoD Supply Chain Materiel Management Regulation, Chapter 2, Section C2.2. 

217.7602 through 217.7603-3 

25. Sections 217.7602 through 217.7603-3 are removed. 

217.7700 

26. Section 217.7700 is removed. 

27. Section 217.7701 is revised to read as follows: 

217.7701 

Follow the procedures at PGI 217.7701 when acquiring over and above work. 

# PART 252—SOLICITATION PROVISIONS AND CONTRACT CLAUSES 

252.217-7004 

28. Section 252.217-7004 is amended as follows: 

a. By revising the clause date to read “(XXX 2005)”; and 

b. In paragraph (a), in the first sentence, by removing “in accordance with FAR part 14 or 15, as applicable”. 

252.217-7017 through 252.217-7025 

29. Sections 252.217-7017 through 252.217-7025 are removed and reserved. 

252.217-7027 

30. Section 252.217-7027 is amended in the introductory text by removing “217.7406” and adding in its place 217.7405”. 

Appendix E to Chapter 2 

31. Appendix E to Chapter 2 is removed and reserved. 

[FR Doc. 05-18472 Filed 9-15-05; 8:45 am] 

BILLING CODE 5001-08-P