Federal Register / Vol. 70, No. 216 / Wednesday, November 9, 2005 / Rules and Regulations 67919 

DEPARTMENT OF DEFENSE 

48 CFR Parts 239 and 252 

[DFARS Case 2003–D053] 

Defense Federal Acquisition 

Regulation Supplement; Update of 

Clauses for Telecommunications 

Services 

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 clauses used in 

contracts for telecommunications 

services. 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. 

Gabrielle Ward, Defense Acquisition 

Regulations System, 

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

3062 Defense Pentagon, Washington, DC 

20301–3062. Telephone (703) 602–2022; 

facsimile (703) 602–0350. Please cite 

DFARS Case 2003–D053. 

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—

Æ Deletes an obsolete clause at 

DFARS 252.239–7003, Facilities and 

Services to be Furnished—Common 

Carriers; and 

Æ Expands the applicability of the 

clauses at DFARS 252.239–7004, Orders 

for Facilities and Services; 252.239–

7005, Rates, Charges, and Services; and 

252.239–7007, Cancellation or 

Termination of Orders, to all carriers of 

telecommunications services. The 

clauses previously applied only to 

common carriers (those subject to 

Federal Communications Commission 

or other governmental regulation). 

Expansion of these clauses to all carriers 

reflects the current business 

environment, where the differences 

between common and noncommon 

carriers have become less distinct. 

DoD published a proposed rule at 69 

FR 67885 on November 22, 2004. 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 DFARS changes in this rule 

reflect current business practices for the 

acquisition of telecommunications 

services. 

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 239 and 

252 

Government procurement. 

Michele P. Peterson, 

Editor, Defense Acquisition Regulations 

System. 

■ Therefore, 48 CFR parts 239 and 252 

are amended as follows: 

■ 1. The authority citation for 48 CFR 

parts 239 and 252 continues to read as 

follows: 

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

Chapter 1. 

PART 239—ACQUISITION OF 

INFORMATION TECHNOLOGY 

239.7406 [Amended] 

■ 2. Section 239.7406 is amended in 

paragraph (c)(6) by removing ‘‘—

Common Carriers’’. 

239.7411 [Amended] 

■ 3. Section 239.7411 is amended in 

paragraph (a) as follows: 

■ a. By removing paragraph (a)(2); 

■ b. By redesignating paragraphs (a)(3) 

through (a)(7) as paragraphs (a)(2) 

through (a)(6) respectively; and 

■ c. In newly designated paragraphs 

(a)(2), (a)(3), and (a)(5), by removing ‘‘—

Common Carriers’’. 

PART 252—SOLICITATION 

PROVISIONS AND CONTRACT 

CLAUSES 

252.239–7003 [Removed and Reserved] 

■ 4. Section 252.239–7003 is removed 

and reserved. 

252.239–7004 [Amended] 

■ 5. Section 252.239–7004 is amended 

as follows: 

■ a. In the section heading, by removing 

‘‘—common carriers’’; 

■ b. In the clause title, by removing ‘‘—

COMMON CARRIERS’’; and 

■ c. By revising the clause date to read 

‘‘(NOV 2005)’’. 

252.239–7005 [Amended] 

■ 6. Section 252.239–7005 is amended 

as follows: 

■ a. In the section heading, by removing 

‘‘—common carriers’’; 

■ b. In the clause title, by removing ‘‘—

COMMON CARRIERS’’; 

■ c. By revising the clause date to read 

‘‘(NOV 2005)’’; and 

■ d. In paragraph (f), in the first 

sentence, by removing ‘‘—Common 

Carriers’’. 

252.239–7007 [Amended] 

■ 7. Section 252.239–7007 is amended 

as follows: 

■ a. In the section heading, by removing 

‘‘—common carriers’’; 

■ b. In the clause title, by removing ‘‘—

COMMON CARRIERS’’; 

■ c. By revising the clause date to read 

‘‘(NOV 2005)’’; and 

■ d. In paragraph (b)(1), by removing 

‘‘—Common Carriers’’. 

[FR Doc. 05–22109 Filed 11–8–05; 8:45 am] 

BILLING CODE 5001–08–P 

DEPARTMENT OF DEFENSE 

48 CFR Parts 242 and 252 

[DFARS Case 2003–D023] 

Defense Federal Acquisition 

Regulation Supplement; Contract 

Administration 

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 

contract administration and audit 

services. This rule is a result of a 

transformation initiative undertaken by 

67920 Federal Register / Vol. 70, No. 216 / Wednesday, November 9, 2005 / Rules and Regulations 

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–D023. 

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: 

Æ Deletes text that is unnecessary or 

duplicative of FAR policy in the areas 

of visits to contractor facilities; conduct 

of postaward conferences; review and 

negotiation of contractor costs and 

billing rates; use of contractor past 

performance information; and 

contractor internal controls. 

Æ Deletes text on providing contract 

administration services to foreign 

governments and international 

organizations; coordination between 

corporate and individual administrative 

contracting officers; processing of 

contractor novation and change-of-name 

agreements; processing of voluntary 

refunds from contractors; and providing 

technical representatives at contractor 

facilities. 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. 

Æ Updates terminology at DFARS 

242.202(a)(i)(D). 

Æ Updates the clause at DFARS 

252.242–7004, Material Management 

and Accounting Systems, for 

consistency with the policy found at 

DFARS 242.7203(d)(5) regarding 

corrective action for a contractor’s 

failure to make adequate progress in 

correcting system deficiencies. 

DoD published a proposed rule at 70 

FR 19043 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 242 and 

252 

Government procurement. 

Michele P. Peterson, 

Editor, Defense Acquisition Regulations 

System. 

■ Therefore, 48 CFR parts 242 and 252 

are amended as follows: 

■ 1. The authority citation for 48 CFR 

parts 242 and 252 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 242.002 is amended by 

revising paragraph (S–70)(iii) to read as 

follows: 

242.002 Interagency agreements. 

* * * * * 

(S–70) * * * 

(iii) Other foreign governments 

(including Canadian government 

organizations other than SSC) and 

international organizations send their 

requests for contract administration 

services to the DoD Central Control 

Point (CCP) at the Headquarters, 

Defense Contract Management Agency, 

International and Federal Business 

Team. Contract administration offices 

provide services only upon request from 

the CCP. The CCP shall follow the 

procedures at PGI 242.002(S–70)(iii). 

■ 3. Section 242.202 is amended by 

revising paragraph (a)(i)(D) to read as 

follows: 

242.202 Assignment of contract 

administration. 

(a)(i) * * * 

(D) Management and professional 

support services; 

* * * * * 

Subpart 242.4—[Removed] 

■ 4. Subpart 242.4 is removed. 

■ 5. Section 242.503–2 is revised to read 

as follows: 

242.503–2 Post-award conference 

procedure. 

DD Form 1484, Post-Award 

Conference Record, may be used in 

conducting the conference and in 

preparing the conference report. 

242.503–3, 242.570, and 242.704 

[Removed] 

■ 6. Sections 242.503–3, 242.570, and 

242.704 are removed. 

■ 7. Section 242.705–1 is revised to read 

as follows: 

242.705–1 Contracting officer 

determination procedure. 

(a) Applicability and responsibility. 

(1) The corporate administrative 

contracting officer and individual 

administrative contracting officers shall 

jointly decide how to conduct 

negotiations. Follow the procedures at 

PGI 242.705–1(a)(1) when negotiations 

are conducted on a coordinated basis. 

242.705–2 [Amended] 

■ 8. Section 242.705–2 is amended in 

paragraph (b)(2)(iii) by removing the last 

sentence. 

242.705–3, 242.801, and 242.1202 

[Removed] 

■ 9. Sections 242.705–3, 242.801, and 

242.1202 are removed. 

■ 10. Section 242.1203 is revised to read 

as follows: 

242.1203 Processing agreements. 

The responsible contracting officer 

shall process and execute novation and 

change-of-name agreements in 

accordance with the procedures at PGI 

242.1203. 

Subpart 242.15—[Removed] 

■ 11. Subpart 242.15 is removed. 

■ 12. Section 242.7100 is revised to read 

as follows: 

242.7100 General. 

A voluntary refund is a payment or 

credit (adjustment under one or more 

Federal Register / Vol. 70, No. 216 / Wednesday, November 9, 2005 / Rules and Regulations 67921 

contracts or subcontracts) to the 

Government from a contractor or 

subcontractor that is not required by any 

contractual or other legal obligation. 

Follow the procedures at PGI 242.7100 

for voluntary refunds. 

242.7101 and 242.7102 [Removed] 

■ 13. Sections 242.7101 and 242.7102 

are removed. 

■ 14. Sections 242.7400 and 242.7401 

are revised to read as follows: 

242.7400 General. 

(a) Program managers may conclude 

that they need technical representation 

in contractor facilities to perform noncontract administration service (CAS) 

technical duties and to provide liaison, 

guidance, and assistance on systems and 

programs. In these cases, the program 

manager may assign technical 

representatives under the procedures in 

242.7401. 

(b) A technical representative is a 

representative of a DoD program, 

project, or system office performing 

non-CAS technical duties at or near a 

contractor facility. A technical 

representative is not—

(1) A representative of a contract 

administration or contract audit 

component; or 

(2) A contracting officer’s 

representative (see 201.602). 

242.7401 Procedures. 

When the program, project, or system 

manager determines that a technical 

representative is required, follow the 

procedures at PGI 242.7401. 

242.7500 and 242.7501 [Removed] 

■ 15. Sections 242.7500 and 242.7501 

are removed. 

242.7502 and 242.7503 [Redesignated] 

■ 16. Sections 242.7502 and 242.7503 

are redesignated as sections 242.7501 

and 242.7502, respectively. 

PART 252—SOLICITATION 

PROVISIONS AND CONTRACT 

CLAUSES 

252.242–7000 [Removed and Reserved] 

■ 17. Section 252.242–7000 is removed 

and reserved. 

■ 18. Section 252.242–7004 is amended 

by revising the clause date and adding 

paragraph (d)(4) to read as follows: 

252.242–7004 Material Management and 

Accounting System. 

* * * * * 

MATERIAL MANAGEMENT AND 

ACCOUNTING SYSTEM (NOV 2005) 

* * * * * 

(d) * * * 

(4) If the contractor fails to make 

adequate progress, the ACO must take 

further action. The ACO may—

(i) Elevate the issue to higher level 

management; 

(ii) Further reduce progress payments 

and/or disallow costs on vouchers; 

(iii) Notify the contractor of the 

inadequacy of the contractor’s cost 

estimating system and/or cost 

accounting system; and 

(iv) Issue cautions to contracting 

activities regarding the award of future 

contracts. 

* * * * * 

[FR Doc. 05–22103 Filed 11–8–05; 8:45 am] 

BILLING CODE 5001–08–P 

DEPARTMENT OF DEFENSE 

48 CFR Part 243 

[DFARS Case 2003–D024] 

Defense Federal Acquisition 

Regulation Supplement; Contract 

Modifications 

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 

contract modifications. 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–D024. 

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: 

• Deletes unnecessary text at DFARS 

243.102, 243.105(a)(ii), 243.107, and 

243.204–71. 

• Deletes obsolete text at DFARS 

243.105(a)(i). 

• Updates text at DFARS 243.107–70 

for consistency with the requirements of 

the clause at DFARS 252.249–7002, 

Notification of Anticipated Contract 

Termination or Reduction. 

•Clarifies procedures at DFARS 

243.204–70 for determining if a request 

for equitable contract adjustment meets 

the dollar threshold for requiring 

contractor certification. 

• Deletes text at DFARS 243.170, 

243.171, and 243.204 containing 

procedures for identification of foreign 

military sales requirements, for 

obligation or deobligation of contract 

funds, and for review and definitization 

of contract change orders. 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 14629 on March 23, 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.