DoD Seal DoD 50 Year Seal

OFFICE OF THE SECRETARY OF DEFENSE

1000 DEFENSE PENTAGON
WASHINGTON, DC 20301-1000
January 8, 1997

 
ACQUISITION AND
 TECHNOLOGY

DP(DAR)

                                                          In reply refer to
                                                          DFARS Case: 96-D327
                                                          D. L. 97-001



MEMORANDUM FOR	DIRECTORS OF DEFENSE AGENCIES
                    DEPUTY FOR ACQUISITION AND BUSINESS MANAGEMENT,
                      ASN(RD&A)/ABM
                    DEPUTY ASSISTANT SECRETARY OF THE AIR FORCE
                      (CONTRACTING), SAF/AQC
                    DIRECTOR, PROCUREMENT POLICY, ASA(RD&A)/SARD-PP
                    DEPUTY DIRECTOR (ACQUISITION), DEFENSE LOGISTICS
                      AGENCY



SUBJECT:    MILCON-Environmental Restoration

     We have amended the Defense Federal Acquisition Regulation
Supplement (DFARS) to implement Section 101 of the Fiscal Year 1997
Military Construction Appropriations Act (Public Law 104-196).
Section 101 continues to restrict the use of cost-plus-fixed-fee
contracts for military construction, but provides a new exception for
contracts for environmental restoration at an installation that is
being closed or realigned where payments are made from a Base
Realignment and Closure Account.


    The attached final DFARS rule is effective immediately and will
be included in a future Defense Acquisition Circular.







                                                    /s/

                                             Eleanor R. Spector
                                             Director, Defense Procurement

Attachment

DFARS Case 96-D327

MILCON Environmental Restoration Contracts

Final Rule

PART 216-TYPES OF CONTRACTS

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SUBPART 216.3-COST-REIMBURSEMENT CONTRACTS

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216.306 Cost-plus-fixed-fee contracts.

(c) Limitations.

(i) [Except as provided in paragraph (c)(ii) of this section, a]nnual military construction appropriations acts [prohibit] the use of cost-plus-fixed-fee contracts that-

(A) Are funded by a military construction appropriations act;

(B) Are estimated to exceed $25,000; and

(C) Will be performed within the United States, except Alaska.

(ii)[The prohibition in paragraph (c)(i) of this section does not apply -

(A) To contracts for environmental restoration at an installation that is being closed or realigned where payments are made from a Base Realignment and Closure Account; or

(B) To contracts specifically approved in writing, setting forth the reasons therefor, in accordance with the following:

(1) ] The Secretaries of the military departments are authorized to approve [such] that are for environmental work only, provided the environmental work is not classified as construction, as defined by 10 U.S.C. 2801.

([(2)]) The Secretary of Defense or designee must approve [such] that are not for environmental work only [or are for environmental work classified as construction].

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