46814 Federal Register / Vol. 73, No. 156 / Tuesday, August 12, 2008 / Rules and Regulations 

219.7103–1 [Amended] 

■ 5. Section 219.7103–1 is amended in 

the second sentence by removing 

‘‘SADBU’’ and adding in its place 

‘‘SBP’’. 

219.7103–2 [Amended] 

■ 6. Section 219.7103–2 is amended in 

paragraphs (d)(1), (e)(3), and (f) by 

removing ‘‘SADBU’’ and adding in its 

place ‘‘SBP’’. 

PART 252—SOLICITATION 

PROVISIONS AND CONTRACT 

CLAUSES 

■ 7. Section 252.219–7004 is amended 

by revising the clause date and 

paragraph (c)(1) to read as follows: 

252.219–7004 Small Business 

Subcontracting Plan (Test Program). 

* * * * * 

SMALL BUSINESS 

SUBCONTRACTING PLAN (TEST 

PROGRAM) (AUG 2008) 

* * * * * 

(c) * * * 

(1) One copy of the SF 295 and 

attachments shall be submitted to Director, 

Small Business Programs, Office of the Under 

Secretary of Defense (Acquisition, 

Technology, and Logistics), 201 12th Street 

South, Suite 406, Arlington, VA 22202; and 

* * * * * 

Appendix I to Chapter 2—Policy and 

Procedures for the DOD Pilot MentorProtege Program 

I–102 [Amended] 

■ 8. Appendix I to chapter 2 is amended 

in section I–102 as follows: 

■ a. In paragraph (a)(1) by removing 

‘‘Small and Disadvantaged Business 

Utilization (SADBU)’’ and adding in its 

place ‘‘Small Business Programs (SBP)’’; 

and 

■ b. In paragraph (f)(3) by removing 

‘‘SADBU’’ and adding in its place 

‘‘SBP’’. 

I–103 [Amended] 

■ 9. Appendix I to chapter 2 is amended 

in section I–103, in paragraph (b)(3), by 

removing ‘‘SADBU’’ and adding in its 

place ‘‘SBP’’. 

I–105 [Amended] 

■ 10. Appendix I to chapter 2 is 

amended in section I–105 as follows: 

■ a. In paragraph (a), in the first 

sentence, by removing ‘‘SADBU’’ and 

adding in its place ‘‘SBP’’; and 

■ b. In paragraph (c) by removing 

‘‘http://www.acq.osd.mil/sadbu/

mentor_protege’’ and adding in its place 

‘‘http://www.acq.osd.mil/osbp/ 

mentor_protege/’’. 

I–107 [Amended] 

■ 11. Appendix I to chapter 2 is 

amended in section I–107, in paragraph 

(j) in the second sentence, by removing 

‘‘SADBU’’ and adding in its place 

‘‘SBP’’. 

I–108 [Amended] 

■ 12. Appendix I to chapter 2 is 

amended in section I–108, in paragraphs 

(c), (e), and (f), by removing ‘‘SADBU’’

and adding in its place ‘‘SBP’’. 

I–109 [Amended] 

■ 13. Appendix I to chapter 2 is 

amended in section I–109, in paragraph 

(c) in the second sentence, and in 

paragraph (d) in the first and second 

sentences, by removing ‘‘SADBU’’ and 

adding in its place ‘‘SBP’’. 

I–110.2 [Amended] 

■ 14. Appendix I to chapter 2 is 

amended in section I–110.2, in 

paragraph (a) introductory text, in 

paragraph (b) introductory text in the 

second sentence, and in paragraph (c), 

by removing ‘‘SADBU’’ and adding in 

its place ‘‘SBP’’. 

I–111 [Amended] 

■ 15. Appendix I to chapter 2 is 

amended in section I–111, in paragraph 

(a), by removing ‘‘SADBU’’ and adding 

in its place ‘‘SBP’’. 

I–112.2 [Amended] 

■ 16. Appendix I to chapter 2 is 

amended in section I–112.2 as follows: 

■ a. In paragraph (d) by removing 

‘‘http://www.acq.osd.mil/sadbu/

mentor_protege’’ and adding in its place 

‘‘http://www.acq.osd.mil/osbp/ 

mentor_protege/’’; and 

■ b. In paragraphs (g)(1) and (2) by 

removing ‘‘SADBU’’ and adding in its 

place ‘‘SBP’’. 

I–113 [Amended] 

■ 17. Appendix I to chapter 2 is 

amended in section I–113, in paragraph 

(b), by removing ‘‘http:// 

www.acq.osd.mil/sadbu/ 

mentor_protege’’ and adding in its place 

‘‘http://www.acq.osd.mil/osbp/ 

mentor_protege/.’’

[FR Doc. E8–18508 Filed 8–11–08; 8:45 am] 

BILLING CODE 5001–08–P 

DEPARTMENT OF DEFENSE 

Defense Acquisition Regulations 

System 

48 CFR Parts 203, 250, and 252 

RIN 0750–AG01 

Defense Federal Acquisition 

Regulation Supplement; Conforming 

Changes—Standards of Conduct and 

Extraordinary Contractual Actions 

(DFARS Case 2008–D004) 

AGENCY: Defense Acquisition 

Regulations System, 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 addressing 

contractor standards of conduct and the 

handling of extraordinary contractual 

actions. The DFARS changes are 

consistent with changes made to the 

Federal Acquisition Regulation. 

DATES: Effective Date: August 12, 2008. 

FOR FURTHER INFORMATION CONTACT: Ms. 

Amy Williams, Defense Acquisition 

Regulations System, OUSD (AT&L) 

DPAP (DARS), IMD 3D139, 3062 

Defense Pentagon, Washington, DC 

20301–3062. Telephone 703–602–0328; 

facsimile 703–602–7887. Please cite 

DFARS Case 2008–D004. 

SUPPLEMENTARY INFORMATION: 

A. Background 

This final rule updates DFARS text for 

consistency with changes made to the 

Federal Acquisition Regulation (FAR) as 

follows: 

Æ Removes DFARS Subpart 203.70, 

Contractor Standards of Conduct, and 

the corresponding contract clause at 

252.203–7002, since policy on this 

subject was added to the FAR at 72 FR 

65873 on November 23, 2007. 

Æ Adds DFARS 203.1004 to provide 

address information for use in 

completion of the clause at FAR 52.203–

14, Display of Hotline Poster(s). 

Æ Revises DFARS Part 250 for 

consistency with the structure of FAR 

Part 50, as revised at 72 FR 63027 on 

November 7, 2007. The DFARS changes 

update headings, numbering, and crossreferences, and reflect the dollar 

threshold currently specified in the FAR 

with regard to delegation of authority 

for approval of extraordinary 

contractual actions. 

This rule was not subject to Office of 

Management and Budget review under 

Executive Order 12866, dated 

September 30, 1993. 


ebenthall on PRODPC60 with RULES
Federal Register / Vol. 73, No. 156 / Tuesday, August 12, 2008 / Rules and Regulations 46815 

B. Regulatory Flexibility Act 

This rule will not have a significant 

cost or administrative impact on 

contractors or offerors, or a significant 

effect beyond the internal operating 

procedures of DoD. Therefore, 

publication for public comment under 

41 U.S.C. 418b is not required. 

However, DoD will consider comments 

from small entities concerning the 

affected DFARS subparts in accordance 

with 5 U.S.C. 610. Such comments 

should cite DFARS Case 2008-D004. 

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 203, 

250, and 252 

Government procurement. 

Michele P. Peterson, 

Editor, Defense Acquisition Regulations 

System. 

■ Therefore, 48 CFR parts 203, 250, and 

252 are amended as follows: 

■ 1. The authority citation for 48 CFR 

parts 203, 250, and 252 continues to 

read as follows: 

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

Chapter 1. 

PART 203—IMPROPER BUSINESS 

PRACTICES AND PERSONAL 

CONFLICTS OF INTEREST 

■ 2. Subpart 203.10 is added to read as 

follows: 

Subpart 203.10—Contractor Code of 

Business Ethics and Conduct 

203.1004 Contract clauses. 

(b)(2)(ii) Insert the following address 

in paragraph (b)(3) of the clause at FAR 

52.203–14, Display of Hotline Poster(s): 

DoD Inspector General, ATTN: Defense 

Hotline, 400 Army Navy Drive, 

Washington, DC 22202–2884. 

Subpart 203.70 [Removed] 

■ 3. Subpart 203.70 is removed. 

■ 4. Part 250 is revised to read as 

follows: 

PART 250—EXTRAORDINARY 

CONTRACTUAL ACTIONS AND THE 

SAFETY ACT 

Subpart 250.1—Extraordinary 

Contractual Actions 

Sec. 

250.100 Definitions. 

250.101 General. 

250.101–2 Policy. 

250.101–2–70 Limitations on payment. 

250.101–3 Records. 

250.102 Delegation of and limitations on 

exercise of authority. 

250.102–1 Delegation of authority. 

250.102–1–70 Delegations. 

250.102–2 Contract adjustment boards. 

250.103 Contract adjustments. 

250.103–3 Contract adjustment. 

250.103–5 Processing cases. 

250.103–6 Disposition. 

250.104 Residual powers. 

250.104–3 Special procedures for unusually 

hazardous or nuclear risks. 

250.104–3–70 Indemnification under 

contracts involving both research and 

development and other work. 

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

Chapter 1. 

Subpart 250.1—Extraordinary 

Contractual Actions 

250.100 Definitions. 

Secretarial level, as used in this 

subpart, means—

(1) An official at or above the level of 

an Assistant Secretary (or Deputy) of 

Defense or of the Army, Navy, or Air 

Force; and 

(2) A contract adjustment board 

established by the Secretary concerned. 

250.101 General. 

250.101–2 Policy. 

250.101–2–70 Limitations on payment. 

See 10 U.S.C. 2410(b) for limitations 

on Congressionally directed payment of 

a request for equitable adjustment to 

contract terms or a request for relief 

under Public Law 85–804. 

250.101–3 Records. 

Follow the procedures at PGI 

250.101–3 for preparation of records. 

250.102 Delegation of and limitations on 

exercise of authority. 

250.102–1 Delegation of authority. 

(b) Authority under FAR 50.104 to 

approve actions obligating $55,000 or 

less may not be delegated below the 

level of the head of the contracting 

activity. 

(d) In accordance with the acquisition 

authority of the Under Secretary of 

Defense (Acquisition, Technology, and 

Logistics (USD (AT&L)) under 10 U.S.C. 

133, in addition to the Secretary of 

Defense and the Secretaries of the 

military departments, the USD (AT&L) 

may exercise authority to indemnify 

against unusually hazardous or nuclear 

risks. 

250.102–1–70 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) Defense agencies. Subject to the 

restrictions on delegations of authority 

in 250.102–1(b) and FAR 50.102–1, the 

directors of the defense agencies may 

exercise and redelegate the authority 

contained in the Act and the Executive 

Order. The agency supplements or 

agency acquisition guidance shall 

specify the delegations and levels of 

authority. 

(1) Requests to obligate the 

Government in excess of $55,000 must 

be submitted to the USD (AT&L) for 

approval. 

(2) Requests for indemnification 

against unusually hazardous or nuclear 

risks must be submitted to the 

USD(AT&L) for approval before using 

the indemnification clause at FAR 

52.250–1, Indemnification Under Public 

Law 85–804. 

(c) Approvals. The Secretary of the 

military department or the agency 

director must approve any delegations 

in writing. 

250.102–2 Contract adjustment boards. 

The Departments of the Army, Navy, 

and Air Force each have a contract 

adjustment board. The board consists of 

a Chair and not less than two nor more 

than six other members, one of whom 

may be designated the Vice-Chair. A 

majority constitutes a quorum for any 

purpose and the concurring vote of a 

majority of the total board membership 

constitutes an action of the board. 

Alternates may be appointed to act in 

the absence of any member. 

250.103 Contract adjustments. 

250.103–3 Contract adjustment. 

(a) Contractor 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. 

250.103–5 Processing cases. 

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

activity shall prepare the record 

described at PGI 250.101–3(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 250.103–5. 


ebenthall on PRODPC60 with RULES
46816 Federal Register / Vol. 73, No. 156 / Tuesday, August 12, 2008 / Rules and Regulations 

(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 50.103–6. 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. 

250.103–6 Disposition. 

For requests denied or approved 

below the Secretarial level, follow the 

disposition procedures at PGI 250.103–

6. 

250.104 Residual powers. 

250.104–3 Special procedures for 

unusually hazardous or nuclear risks. 

250.104–3–70 Indemnification under 

contracts involving both research and 

development and other work. 

When indemnification is to be 

provided on contracts requiring both 

research and development work and 

other work, the contracting officer shall 

insert an appropriate clause using the 

authority of both 10 U.S.C. 2354 and 

Public Law 85–804. 

(a) The use of Public Law 85–804 is 

limited to work which cannot be 

indemnified under 10 U.S.C. 2354 and 

is subject to compliance with FAR 

50.104. 

(b) Indemnification under 10 U.S.C. 

2354 is covered by 235.070. 

PART 252—SOLICITATION 

PROVISIONS AND CONTRACT 

CLAUSES 

252.203–7002 [Removed] 

■ 5. Section 252.203–7002 is removed. 

[FR Doc. E8–18504 Filed 8–11–08; 8:45 am] 

BILLING CODE 5001–08–P 

DEPARTMENT OF DEFENSE 

Defense Acquisition Regulations 

System 

48 CFR Part 208 

RIN 0750–AG03 

Defense Federal Acquisition 

Regulation Supplement; Competition 

Requirements for Purchases From 

Federal Prison Industries (DFARS 

Case 2008–D015) 

AGENCY: Defense Acquisition 

Regulations System, Department of 

Defense (DoD). 

ACTION: Interim rule with request for 

comments. 

SUMMARY: DoD has issued an interim 

rule amending the Defense Federal 

Acquisition Regulation Supplement to 

implement Section 827 of the National 

Defense Authorization Act for Fiscal 

Year 2008. Section 827 requires the use 

of competitive procedures in the 

acquisition of items for which Federal 

Prison Industries has a significant 

market share. 

DATES: Effective date: August 12, 2008. 

Comment date: Comments on the 

interim rule should be submitted in 

writing to the address shown below on 

or before October 14, 2008, to be 

considered in the formation of the final 

rule. 

ADDRESSES: You may submit comments, 

identified by DFARS Case 2008–D015, 

using any of the following methods: 

Æ Federal eRulemaking Portal: 

http://www.regulations.gov. Follow the 

instructions for submitting comments. 

Æ E-mail: dfars@osd.mil. Include 

DFARS Case 2008–D015 in the subject 

line of the message. 

Æ Fax: 703–602–7887. 

Æ Mail: Defense Acquisition 

Regulations System, Attn: Mr. Michael 

Benavides, OUSD (AT&L) DPAP 

(DARS), IMD 3D139, 3062 Defense 

Pentagon, Washington, DC 20301–3062. 

Æ Hand Delivery/Courier: Defense 

Acquisition Regulations System, Crystal 

Square 4, Suite 200A, 241 18th Street, 

Arlington, VA 22202–3402. 

Comments received generally will be 

posted without change to http:// 

www.regulations.gov, including any 

personal information provided. 

FOR FURTHER INFORMATION CONTACT: Mr. 

Michael Benavides, 703–602–1302. 

SUPPLEMENTARY INFORMATION: 

A. Background 

Section 827 of the National Defense 

Authorization Act for Fiscal Year 2008 

(Pub. L. 110–181) amended 10 U.S.C. 

2410n to require the use of competitive 

procedures in the acquisition of items 

for which Federal Prison Industries 

(FPI) has a significant market share. 

Section 827 provides that FPI shall be 

treated as having a significant share of 

the market for a product if DoD, in 

consultation with the Office of Federal 

Procurement Policy, determines that the 

FPI share of the DoD market for the 

category of products including that 

product is greater than 5 percent. 

DoD has determined that FPI 

presently has a significant market share 

of the items in the following Federal 

Supply Classes (FSC). DoD will update 

the following list as necessary. 

FSC Description 

3510 Laundry and Dry Cleaning Equipment. 

5340 Miscellaneous Hardware. 

5935 Connectors, Electrical. 

5975 Electrical Hardware and Supplies. 

5995 Cable, cord, wire assemblies; 

communications equipment. 

6145 Wire and cable, Electrical. 

7110 Office Furniture. 

7210 Household Furnishings. 

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 has prepared an initial regulatory 

flexibility analysis consistent with 5 

U.S.C. 603. A copy of the analysis may 

be obtained from the point of contact 

specified herein. The analysis is 

summarized as follows: 

The objective of the rule is to provide 

for competition in the acquisition of 

items for which FPI has a significant 

market share. The legal basis for the rule 

is 10 U.S.C. 2410n, as amended by 

Section 827 of the National Defense 

Authorization Act for Fiscal Year 2008 

(Pub. L. 110–181). The rule is expected 

to benefit small business concerns that 

offer items for which FPI has a 

significant market share, by permitting 

those concerns to compete for 

additional DoD contract awards. The 

rule also could adversely impact small 

business concerns that provide supplies 

and services to FPI relative to the 

affected items. The rule deviates from 

the policy in Subpart 8.6 of the Federal 

Acquisition Regulation with regard to 

the acquisition of items from FPI. This 

alternate DoD policy is necessary to 

implement Section 827 of Public Law 

110–181. 

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 2008–D015. 

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. 

D. Determination To Issue an Interim 

Rule 

A determination has been made under 

the authority of the Secretary of 

Defense, that urgent and compelling 

reasons exist to publish an interim rule 


ebenthall on PRODPC60 with RULES