67922 Federal Register / Vol. 70, No. 216 / Wednesday, November 9, 2005 / Rules and Regulations 

List of Subjects in 48 CFR Part 243 

Government procurement. 

Michele P. Peterson, 

Editor, Defense Acquisition Regulations 

System. 

■ Therefore, 48 CFR part 243 is 

amended as follows: 

PART 243—CONTRACT 

MODIFICATIONS 

■ 1. The authority citation for 48 CFR 

part 243 continues to read as follows: 

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

Chapter 1. 

243.102, 243.105, and 243.107 [Removed] 

■ 2. Sections 243.102, 243.105, and 

243.107 are removed. 

■ 3. Section 243.107–70 is amended by 

revising the second sentence to read as 

follows: 

243.107–70 Notification of substantial 

impact on employment. 

* * * The clause prescribed at 

249.7003(c) requires that the contractor 

notify its employees, its subcontractors, 

and State and local officials when a 

contract modification will have a 

substantial impact on employment. 

■ 4. Sections 243.170 and 243.171 are 

revised to read as follows: 

243.170 Identification of foreign military 

sale (FMS) requirements. 

Follow the procedures at PGI 243.170 

for identifying contract modifications 

that add FMS requirements. 

243.171 Obligation or deobligation of 

funds. 

Follow the procedures at PGI 243.171 

when obligating or deobligating funds. 

■ 5. Section 243.204 is revised to read 

as follows: 

243.204 Administration. 

Follow the procedures at PGI 243.204 

for review and definitization of change 

orders. 

■ 6. Section 243.204–70 is amended by 

revising paragraph (b) to read as follows: 

243.204–70 Certification of requests for 

equitable adjustment. 

* * * * * 

(b) To determine if the dollar 

threshold for requiring certification is 

met, add together the absolute value of 

each cost increase and each cost 

decrease. See PGI 243.204–70(b) for an 

example. 

* * * * * 

243.204–71 [Removed] 

■ 7. Section 243.204–71 is removed. 

[FR Doc. 05–22104 Filed 11–8–05; 8:45 am] 

BILLING CODE 5001–08–P 

DEPARTMENT OF DEFENSE 

48 CFR Parts 244 and 252 

[DFARS Case 2003–D025] 

Defense Federal Acquisition 

Regulation Supplement; 

Subcontracting Policies and 

Procedures 

AGENCY: Department of Defense (DoD). 

ACTION: Final rule. 

SUMMARY: DoD has issued a final rule 

amending the Defense Federal 

Acquisition Regulation Supplement 

(DFARS) to update text pertaining to 

subcontracts awarded under DoD 

contracts. This rule is a result of a 

transformation initiative undertaken by 

DoD to dramatically change the purpose 

and content of the DFARS. 

EFFECTIVE DATE: November 9, 2005. 

FOR FURTHER INFORMATION CONTACT: Ms. 

Deborah Tronic, Defense Acquisition 

Regulations System, 

OUSD(AT&L)DPAP(DAR), IMD 3C132, 

3062 Defense Pentagon, Washington, DC 

20301–3062. Telephone (703) 602–0289; 

facsimile (703) 602–0350. Please cite 

DFARS Case 2003–D025. 

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, DoDwide 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 final rule is a result of the 

DFARS Transformation initiative. The 

rule: 

• Revises DFARS 244.301 to clarify 

Government responsibilities for 

conducting reviews of contractor 

purchasing systems. 

• Deletes text at DFARS 244.304 

containing examples of weaknesses in a 

contractor’s purchasing system that may 

indicate the need for a review. This text 

has been relocated to the new DFARS 

companion resource, Procedures, 

Guidance, and Information (PGI), 

available at http://www.acq.osd.mil/ 

dpap/dars/pgi. 

• Updates the clause at DFARS 

252.244–7000 to reflect the current title 

of the clause at FAR 52.244–6, 

Subcontracts for Commercial Items. 

DoD published a proposed rule at 70 

FR 19044 on April 12, 2005. DoD 

received no comments on the proposed 

rule. Therefore, DoD has adopted the 

proposed rule as a final rule without 

change. 

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 certifies that this final rule will 

not 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, clarifies, and 

streamlines DFARS text, but makes no 

significant change to DoD contracting 

policy. 

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 244 and 

252 

Government procurement. 

Michele P. Peterson, 

Editor, Defense Acquisition Regulations 

System. 

■ Therefore, 48 CFR parts 244 and 252 

are amended as follows: 

■ 1. The authority citation for 48 CFR 

parts 244 and 252 continues to read as 

follows: 

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

Chapter 1. 

PART 244—SUBCONTRACTING 

POLICIES AND PROCEDURES 

■ 2. Section 244.301 is revised to read 

as follows: 

244.301 Objective. 

The administrative contracting officer 

(ACO) is solely responsible for initiating 

reviews of the contractor’s purchasing 

systems, but other organizations may 

request that the ACO initiate such 

reviews. 

■ 3. Section 244.304 is revised to read 

as follows: 

244.304 Surveillance. 

(b) The ACO, or the purchasing 

system analyst (PSA) with the 

Federal Register / Vol. 70, No. 216 / Wednesday, November 9, 2005 / Rules and Regulations 67923 

concurrence of the ACO, may initiate a 

special review of specific weaknesses in 

the contractor’s purchasing system. See 

PGI 244.304(b) for examples of 

weaknesses. 

PART 252—SOLICITATION 

PROVISIONS AND CONTRACT 

CLAUSES 

252.244–7000 [Amended] 

■ 4. Section 252.244–7000 is amended 

as follows: 

■ a. By revising the clause date to read 

‘‘(NOV 2005)’’; and 

■ b. In the introductory text of the 

clause by removing the phrase ‘‘and 

Commercial Components’’. 

[FR Doc. 05–22105 Filed 11–8–05; 8:45 am] 

BILLING CODE 5001–08–P 

DEPARTMENT OF DEFENSE 

48 CFR Part 250 

[DFARS Case 2003–D048] 

Defense Federal Acquisition 

Regulation Supplement; Extraordinary 

Contractual Actions 

AGENCY: Department of Defense (DoD). 

ACTION: Final rule. 

SUMMARY: DoD has issued a final rule 

amending the Defense Federal 

Acquisition Regulation Supplement 

(DFARS) to update text pertaining to the 

processing of requests for extraordinary 

contract adjustments. This rule is a 

result of a transformation initiative 

undertaken by DoD to dramatically 

change the purpose and content of the 

DFARS. 

EFFECTIVE DATE: November 9, 2005. 

FOR FURTHER INFORMATION CONTACT: Mr. 

Euclides Barrera, Defense Acquisition 

Regulations System, 

OUSD(AT&L)DPAP(DAR), IMD 3C132, 

3062 Defense Pentagon, Washington, DC 

20301–3062. Telephone (703) 602–0296; 

facsimile (703) 602–0350. Please cite 

DFARS Case 2003–D048. 

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, DoDwide 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 final rule is a result of the 

DFARS Transformation initiative. The 

rule—

• Updates requirements for DoD 

processing of requests for extraordinary 

contract adjustments; and 

• Deletes procedures for preparation 

of records and submittal of requests to 

a contract adjustment board. This text 

has been relocated to the new DFARS 

companion resource, Procedures, 

Guidance, and Information (PGI), 

available at http://www.acq.osd.mil/ 

dpap/dars/pgi. 

DoD published a proposed rule at 70 

FR 6393 on February 7, 2005. DoD 

received no comments on the proposed 

rule. Therefore, DoD has adopted the 

proposed rule as a final rule without 

change. 

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 certifies that this final rule will 

not 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 relates primarily to 

DoD internal administrative procedures 

for the processing of requests for 

extraordinary contract adjustments. 

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 250 

Government procurement. 

Michele P. Peterson, 

Editor, Defense Acquisition Regulations 

System. 

■ Therefore, 48 CFR Part 250 is 

amended as follows: 

PART 250—EXTRAORDINARY 

CONTRACTUAL ACTIONS 

■ 1. The authority citation for 48 CFR 

Part 250 continues to read as follows: 

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

Chapter 1. 

■ 2. Section 250.105 is revised to read 

as follows: 

250.105 Records. 

Follow the procedures at PGI 250.105 

for preparation of records. 

■ 3. Section 250.201–70 is amended by 

revising paragraph (a) and the last 

sentence of paragraph (b) introductory 

text to read as follows: 

250.201–70 Delegations. 

(a) Military Departments. The 

Departments of the Army, Navy, and Air 

Force will specify delegations and levels 

of authority for actions under the Act 

and the Executive Order in 

departmental supplements or agency 

acquisition guidance. 

(b) * * * The agency supplements or 

agency acquisition guidance shall 

specify the delegations and levels of 

authority. 

* * * * * 

■ 4. Subpart 250.3 is revised to read as 

follows: 

Subpart 250.3—Contract Adjustments 

Sec. 

250.303–1 Contractor requests. 

250.305 Processing cases. 

250.306 Disposition. 

250.303–1 Contractor requests. 

Requests should be filed with the 

procuring contracting officer (PCO). 

However, if filing with the PCO is 

impractical, requests may be filed with 

an authorized representative, an 

administrative contracting officer, or the 

Office of General Counsel of the 

applicable department or agency, for 

forwarding to the cognizant PCO. 

250.305 Processing cases. 

(1) At the time the request is filed, the 

activity shall prepare the record 

described at PGI 250.105(1)(i) and 

forward it to the appropriate official 

within 30 days after the close of the 

month in which the record is prepared. 

(2) The officer or official responsible 

for the case shall forward to the contract 

adjustment board, through departmental 

channels, the documentation described 

at PGI 250.305. 

(3) Contract adjustment boards will 

render decisions as expeditiously as 

practicable. The Chair shall sign a 

memorandum of decision disposing of 

the case. The decision shall be dated 

and shall contain the information 

required by FAR 50.306. The 

memorandum of decision shall not 

contain any information classified 

‘‘Confidential’’ or higher. The board’s 

decision will be sent to the appropriate 

official for implementation.