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###### Department of Defense

          - 48 CFR Part 242 
          - [DFARS Case 2003-D051] 

# 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 addressing functions performed by DoD contract administration offices. 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 January 9, 2006, to be considered in the formation of the final rule. 

# ADDRESSES:

You may submit comments, identified by DFARS Case 2003-D051, 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/​dar/​dfars.nsf/​pubcomm.*                         Follow the instructions for submitting comments.                     

                        ○                         *E-mail: dfars@osd.mil.*                         Include DFARS Case 2003-D051 in the subject line of the message.                     

                        ○                         *Fax:*                         (703) 602-0350.                     

                        ○                         *Mail:*                         Defense Acquisition Regulations System, Attn: Ms. Deborah Tronic, OUSD(AT&L)DPAP(DAR), IMD 3C132, 3062 Defense Pentagon, Washington, DC 20301-3062.                     

                        ○                         *Hand Delivery/Courier:*                         Defense Acquisition Regulations System, 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. Deborah Tronic, (703) 602-0289. 

# 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— 

○ Update the list of DoD contract administration functions to clarify responsibilities for payment administration and for verification of contractor compliance with earned value management system requirements; 

○ Delete obsolete text on mobilization production planning surveys; and 

                    ○ Delete procedures for designation of contract payment offices. Text on this subject 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                           ( print page 67956)                        substantial number of small entities within the meaning of the Regulatory Flexibility Act, 5 U.S.C. 601, et seq., because the rule addresses internal DoD responsibilities for performance of contract administration functions. 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 subpart in accordance with 5 U.S.C. 610. Such comments should be submitted separately and should cite DFARS Case 2003-D051.                 

## 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 Part 242

      - Government procurement

Michele P. Peterson, 

Editor, Defense Acquisition Regulations System. 

Therefore, DoD proposes to amend 48 CFR part 242 as follows: 

1. The authority citation for 48 CFR part 242 continues to read as follows: 

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

# PART 242—CONTRACT ADMINISTRATION AND AUDIT SERVICES 

2. Section 242.302 is revised to read as follows: 

242.302 

(a)(4) Also, review and evaluate— 

(A) Contractor estimating systems (see FAR 15.407-5); and 

(B) Contractor material management and accounting systems under Subpart 242.72. 

(7) See 242.7503 for ACO responsibilities with regard to receipt of an audit report identifying significant accounting system or related internal control deficiencies. 

(9) For additional contract administration functions related to IR&D/B&P projects performed by major contractors, see 242.771-3(a). 

(12) Also perform all payment administration in accordance with any applicable payment clauses. 

(13)(A) Do not delegate the responsibility to make payments to the Defense Contract Management Agency (DCMA). 

(B) Follow the procedures at PGI 242.302(a)(13)(B) for designation of payment offices. 

(39) See 223.370 for contract administration responsibilities on contracts for ammunition and explosives. 

(67) Also support program offices and buying activities in precontractual efforts leading to a solicitation or award. 

(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. 

(S-71) DCMA has responsibility for reviewing earned value management system (EVMS) plans and verifying initial and continuing contractor compliance with DoD EVMS criteria. The contracting officer shall not retain this function. 

(b)(S-70) Issue, negotiate, and execute orders under basic ordering agreements for overhaul, maintenance, and repair. 

[FR Doc. 05-22113 Filed 11-8-05; 8:45 am] 

BILLING CODE 5001-08-P