Source: http://farsite.hill.af.mil/reghtml/changes/dac/DCN20080423.htm
Timestamp: 2019-03-19 06:28:28
Document Index: 122458979

Matched Legal Cases: ['arts 234', 'art 242', 'art 234', 'art 7', 'art 7', 'arts 234', 'art 234', 'art 212', 'art 212', 'art 201', 'art 201', 'art 201']

DCN200080423
DFARS CHANGE NOTICE 20080423
FR Doc E8-8706[Federal Register: April 23, 2008 (Volume 73, Number 79)]
48 CFR Parts 234, 242, and 252
SUMMARY: DoD has issued a final rule amending the Defense Federal Acquisition Regulation Supplement (DFARS) to update requirements for DoD contractors to establish and maintain earned value management systems. The rule also eliminates requirements for DoD contractors to submit cost/schedule status reports.
FOR FURTHER INFORMATION CONTACT: Mr. Mark Gomersall, Defense Acquisition Regulations System, OUSD (AT&L) DPAP (DARS), IMD 3D139, 3062 Defense Pentagon, Washington, DC 20301-3062. Telephone 703-602-0302; facsimile 703-602-7887. Please cite DFARS Case 2005-D006.
A. Background This final rule updates DFARS text addressing earned value management policy for DoD contracts. The rule supplements the final FAR rule published at 71 FR 38238 on July 5, 2006, and establishes DoD-specific earned value management requirements, as permitted by the FAR. The DFARS rule is consistent with the policy in the memorandum issued by the Under Secretary of Defense (Acquisition, Technology, and Logistics) on March 7, 2005, Subject: Revision to DoD Earned Value Management Policy (available at http://www.acq.osd.mil/dpap/ops/policy_vault.html).
For cost or incentive contracts and subcontracts valued at $20,000,000 or more, the rule requires an earned value management system that complies with the guidelines in the American National Standards Institute/Electronic Industries Alliance Standard 748, Earned Value Management Systems (ANSI/EIA-748).
For cost or incentive contracts and subcontracts valued at $50,000,000 or more, the rule requires an earned value management system that has been determined by the cognizant Federal agency (as defined in FAR 2.101) to be in compliance with the guidelines in ANSI/EIA-748.
For cost or incentive contracts and subcontracts valued at less than $20,000,000, the rule provides that application of earned value management is optional and is a risk-based decision. For firm-fixed-price contracts and subcontracts of any dollar value, the rule discourages the application of earned value management.
The Defense Contract Management Agency is assigned responsibility for determining earned value management compliance when DoD is the cognizant Federal agency.
Requirements for contractor cost/schedule status reports are eliminated.
DoD Response: The respondent's recommendations regarding the FAR were addressed in the preamble to the FAR rule published at 71 FR 38238 on July 5, 2006. Additional changes have been made to the DFARS rule for consistency with the FAR rule. Those changes include:
Relocation of EVM policy from Part 242 to Part 234.
For cost or incentive contracts and subcontracts valued at $50,000,000 or more, replacement of the requirement for a contracting officer's formal validation and acceptance with the requirement for an EVM system that has been determined by the cognizant federal agency to be in compliance with the guidelines in ANSI/EIA-748. DCMA is assigned responsibility for determining EVM system compliance when DoD is the cognizant Federal agency.
Elimination of the text included in the proposed rule at 252.242-7006(b), which specified that the terms for compliance with ANSI/EIA-748 for contracts below $50,000,000 may be subject to negotiation between the contractor and the contracting officer; compliance with the guidelines in ANSI/EIA-748 is not subject to negotiation.
Addition of text in the solicitation provision at 252.234-7001(a)(2)(ii) and (iii) to require an offeror proposing to use a system that has not been determined to be in compliance with ANSI/EIA-748, to provide information and assistance as required by the contracting officer to support review of the offeror's plan for compliance and to provide milestones that indicate when the offeror will be compliant.
Elimination of a separate provision and clause to address requirements for contracts valued at $20,000,000 or more but less than $50,000,000. The provision and clause at 252.234-7001 and 252.234-7002 address requirements for contracts above or below $50,000,000.
6. Comment: One respondent recommended adding the following language to the contract clause for consistency with language included in the solicitation provision: ``The terms for compliance with ANSI/EIA-748 may be subject to negotiation between the contractor and subcontractor. The conduct of the integrated baseline reviews also may be subject to negotiation between the contractor and subcontractor.''
This final rule amends the DFARS to update requirements for DoD contractors to establish and maintain earned value management systems. The rule revises the dollar thresholds at which DoD applies earned value management policy, and eliminates requirements for DoD contractors to submit cost/schedule status reports. The rule supplements the FAR rule published at 71 FR 38238 on July 5, 2006. The FAR rule provides standard earned value management policy, consistent with the requirements of OMB Circular A-11, Part 7, Planning, Budgeting, Acquisition, and Management of Capital Assets, and the supplement to Part 7, the Capital Programming Guide. The OMB Circular and its supplement implement statutory requirements for the Government to define the cost, performance, and schedule, and schedule goals for major acquisitions and to achieve, on the average, 90 percent of the established goals.
The threshold at which a DoD contractor previously was required to have an earned value management system that complied with ANSI/EIA-748 was $73 million for contracts and subcontracts funded with research, development, test and evaluation funding; and $315 million for contracts and subcontracts funded with operation and maintenance or procurement funding. This DFARS rule lowers those thresholds to a single $20 million for all cost or incentive contracts and subcontracts, regardless of funding type, and establishes a new threshold of $50 million for an earned value management system that has been determined by the Government to be in compliance with ANSI/EIA-748. The rule discourages the application of earned value management requirements to fixed-price contracts and subcontracts of any dollar value.
C. Paperwork Reduction Act This rule does not impose any new information collection requirements that require the approval of the Office of Management and Budget (OMB) under 44 U.S.C. 3501, et seq. The contract performance reports required by the rule are approved under OMB Clearance Number 0704-0188, Acquisition Management Systems and Data Requirements Control List.
Therefore, 48 CFR parts 234, 242, and 252 are amended as follows:
Sec. 234.005 [Removed]
Subpart 234.2--Earned Value Management System
Sec. 234.201 Policy.
(iii) For cost or incentive contracts and subcontracts valued at less than $20,000,000--
(iv) For firm-fixed-price contracts and subcontracts of any dollar value--
For cost or incentive contracts valued at $20,000,000 or more, and for other contracts for which EVMS will be applied in accordance with 234.201(1)(iii) and (iv)--
(1) Use the provision at 252.234-7001, Notice of Earned Value Management System, instead of the provisions at FAR 52.234-2, Notice of Earned Value Management System--Pre-Award IBR, and FAR 52.234-3, Notice of Earned Value Management System--Post-Award IBR, in the solicitation; and
242.1107-70 [Removed]
(a) If the offeror submits a proposal in the amount of $50,000,000 or more--
(i) The plan shall--
(b) If the offeror submits a proposal in an amount less than $50,000,000--
(1) The offeror shall submit a written description of the management procedures it will use and maintain in the performance of any resultant contract to comply with the requirements of the Earned Value Management System clause of the contract. The description shall include--
252.242-7001 and 252.242-7002 [Removed and Reserved]
252.242-7005 and 252.242-7006 [Removed]
FR Doc E8-8695[Federal Register: April 23, 2008 (Volume 73, Number 79)]
SUMMARY: DoD has issued a final rule amending the Defense Federal Acquisition Regulation Supplement (DFARS) to implement Section 823 of the National Defense Authorization Act for Fiscal Year 2008. Section 823 provides a 5-year extension of the authority for DoD to carry out a pilot program for transition to follow-on contracting after use of other transaction authority.
FOR FURTHER INFORMATION CONTACT: Ms. Felisha Hitt, Defense Acquisition Regulations System, OUSD (AT&L) DPAP (DARS), IMD 3D139, 3062 Defense Pentagon, Washington, DC 20301-3062. Telephone 703-602-0310; facsimile 703-602-7887. Please cite DFARS Case 2008-D008.
A. Background This final rule implements Section 823 of the National Defense Authorization Act for Fiscal Year 2008 (Pub. L. 110-181). Section 823 amended Section 845 of the National Defense Authorization Act for Fiscal Year 1994 (as amended by Section 847 of the National Defense Authorization Act for Fiscal Year 2004) (10 U.S.C. 2371 note), to provide a 5-year extension of the authority for DoD to carry out a pilot program for follow-on contracting for the production of items or processes begun as prototype projects under other transaction agreements. Items or processes that do not otherwise meet the definition of ``commercial item'' may be treated as commercial items in the award of contracts and subcontracts under the pilot program. In addition, items or processes acquired under the pilot program may be treated as developed in part with Federal funds and in part at private expense for purposes of negotiating rights in technical data.
The pilot program is addressed in DFARS Subpart 212.70. Accordingly, DFARS Subpart 212.70 is amended to reflect the extended expiration date, from September 30, 2008, to September 30, 2013.
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 subpart in accordance with 5 U.S.C. 610. Such comments should cite DFARS Case 2008-D008.
212.7002-1 [Amended]
2. Section 212.7002-1 is amended in paragraph (a)(4) by removing ``2008'' and adding in its place ``2013''.
212.7002-2 [Amended]
3. Section 212.7002-2 is amended in paragraph (a)(3) by removing ``2008'' and adding in its place ``2013''.
FR Doc E8-8694[Federal Register: April 23, 2008 (Volume 73, Number 79)]
SUMMARY: DoD has issued a final rule amending the Defense Federal Acquisition Regulation Supplement (DFARS) to remove text addressing an obsolete restriction on the acquisition of vessel propellers from foreign sources. The statute upon which the restriction was based applied only to acquisitions using fiscal year 2000 or 2001 funds.
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 2007-D027.
A. Background The text at DFARS 225.7010 through 225.7010-4, and the corresponding contract clause at DFARS 252.225-7023, were added on December 13, 2000 (65 FR 77827), to implement provisions of Section 8064 of the Fiscal Year 2001 DoD Appropriations Act (Pub. L. 106-259) relating to vessel propellers. Section 8064 prohibited the use of fiscal year 2000 or 2001 DoD appropriated funds for the procurement of vessel propellers, other than those produced by a domestic source and of domestic origin, unless an exception applied or a waiver was granted. This prohibition was not repeated in subsequent appropriations acts and, therefore, is removed from the DFARS.
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 2007-D027.
225.7010 [Removed and Reserved]
2. Section 225.7010 is removed and reserved.
225.7010-1 through 225.7010-4 [Removed]
3. Sections 225.7010-1 through 225.7010-4 are removed.
252.225-7023 [Removed and Reserved]
4. Section 252.225-7023 is removed and reserved.
FR Doc E8-8698[Federal Register: April 23, 2008 (Volume 73, Number 79)]
SUMMARY: DoD is making technical amendments to the Defense Federal Acquisition Regulation Supplement (DFARS) to update a subpart heading and a reference to a DoD publication.
Subpart 201.6. Revises the subpart heading for consistency with the corresponding subpart of the Federal Acquisition Regulation.
Section 201.603-2. Updates references to a DoD publication addressing career development.
2. The heading of subpart 201.6 is revised to read as follows:
Subpart 201.6--Career Development, Contracting Authority, and Responsibilities
3. Section 201.603-2 is amended by revising the second sentence of paragraph (2)(iii) and the second sentence of paragraph (3) to read as follows:
(iii) * * * Information on developmental opportunities is contained in DoD Instruction 5000.66, Operation of the Defense Acquisition, Technology, and Logistics Workforce Education, Training, and Career Development Program.
(3) * * * Information on waivers is contained in DoD Instruction 5000.66.
END OF DCN 20080423