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. 

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