OFFICE OF THE UNDER SECRETARY OF DEFENSE

3000 DEFENSE PENTAGON

WASHINGTON DC 20301-3000

DP(DAR)

August 20, 1997

In reply refer to

DFARS Case: 97--D013

D. L. 97-016

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

ASSISTANT DEPUTY ASSISTANT SECRETARY OF THE ARMY (PROCUREMENT)/DIRECTOR FOR CONTRACTING

DEPUTY DIRECTOR (ACQUISITION), DEFENSE LOGISTICS AGENCY

SUBJECT: Revision of DFARS Regarding Contract Action Reporting

We have amended the Defense Federal Acquisition Regulation Supplement (DFARS) to revise DD Form 350 and DD Form 1057 contract action reporting requirements to comply with the Clinger/Cohen Act of 1996 (Pub. L. 104-106) and to enhance data collection procedures.

The attached final DFARS rule is effective on October 1, 1997, and will be included in a future Defense Acquisition Circular.

Eleanor R. Spector Director, Defense Procurement

Attachment

DEPARTMENT OF DEFENSE

48 CFR Parts 204 and 253

[DFARS Case 97-D013]

Defense Federal Acquisition Regulation Supplement; Contract

Action Reporting

AGENCY: Department of Defense (DOD).

ACTION: Final rule.

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SUMMARY: The Director of Defense Procurement has issued a final rule amending the Defense Federal Acquisition Regulation Supplement (DFARS) to revise DD Form 350 and DD Form 1057 contract action reporting requirements for compliance with the Clinger-Cohen Act of 1996 and for enhancement of data collection procedures.

EFFECTIVE DATE: October 1, 1997.

FOR FURTHER INFORMATION CONTACT: Ms. Melissa Rider, PDUSD (A& T) DP

(DAR), IMD 3D139, 3062 Defense Pentagon, Washington, DC 20301-3062.

Telephone (703) 602-0131; telefax (703) 602-0350.

SUPPLEMENTARY INFORMATION:

A. Background

This final rule amends the internal DoD contract data reporting system to enable reporting of data required by the Clinger-Cohen Act of 1996 (Public Law 104-106) and to enhance data collection procedures.

The rule improves reporting instructions pertaining to contingency operations, cost or pricing data requirements, and blanket purchase agreements; and adds reporting instructions pertaining to the use of

simplified acquisition procedures for certain commercial items pursuant to FAR Subpart 13.6, and the award of contracts in support of Phase III of the Small Business Innovation Research Program.

B. Regulatory Flexibility Act

The final rule does not constitute a significant revision within the meaning of FAR 1.501 and Public Law 98-577 and publication for public comment is not required. However, comments from small entities

concerning the affected DFARS subparts will be considered in accordance with 5 U.S.C. 610. Such comments should cite DFARS Case 97-D013 in correspondence.

C. Paperwork Reduction Act

The Paperwork Reduction Act does not apply because the final rule does not impose any reporting or recordkeeping requirements that require Office of Management and Budget approval under 44 U.S.C. 3501,

et seq.

List of Subjects in 48 CFR Parts 204 and 253

Government procurement Michele P. Peterson, Executive Editor, Defense Acquisition Regulations Council.

Therefore, 48 CFR Parts 204 and 253 are amended as follows:

1. The authority citation for 48 CFR Parts 204 and 253 continues to read as follows.

Authority: 41 U.S.C. 421 and 48 CFR Chapter 1.

PART 204--ADMINISTRATIVE MATTERS

2. Section 204.670-2 is amended by revising paragraph (c) to read as follows:

204.670-2 Reportable contracting actions.

* * * * *

(c) Summarize on the monthly DD Form 1057, in accordance with the instructions in 253.204-71(a)(3), contracting actions that support a contingency operation (see 213.000) and that obligate or deobligate

funds exceeding $25,000 but not exceeding $200,000.

* * * * *

PART 253--FORMS

3. Section 253.204-70 is amended by revising paragraphs (b)(10)(i), (b)(13)(i)(C), (b)(13)(i)(G), (c)(2), (c)(4)(xi), (d)(5)(vii)(A), and (e)(4); and adding paragraphs (b)(14), (d)(5)(vii)(D), and (e)(5) to

read as follows:

253.204-70 DD Form 350, Individual Contracting Action Report.

* * * * *

(b) * * *

(10) * * *

(i) Code Y--Yes. Enter code Y when the contracting action is a multiyear contract as defined at FAR 17.103. Do not report contracts containing options as multiyear unless the definition at FAR 17.103 applies to the contract.

* * * * *

(13) * * *

(i) * * *

(C) Code 4--Order under an Agreement. Enter code 4 when the contracting action is an order or definitization of an order under an agreement other than a blanket purchase agreement. Examples include an

order exceeding $25,000 under a basic ordering agreement or a master ship repair agreement and a job order when the contract is created by issuing the order. A call under a blanket purchase agreement associated

with a Federal Supply Schedule, pursuant to FAR 13.202(c)(3), is coded 6. A call under other blanket purchase agreements, pursuant to FAR subpart 13.2, is coded 9. When the contracting action is a modification to an order described in code 4 instructions, enter code 4 in B13A.

* * * * *

(G) Code 9--Purchase Order/Call. Enter code 9 if the contracting action, including an action in a designated industry group under the Small Business Competitiveness Demonstration Program (FAR subpart

19.10), is an award pursuant to FAR part 13, except when the contracting action is a blanket purchase agreement call pursuant to FAR 13.202(c)(3) (see code 6). When the contracting action is a modification to a purchase order/call described in code 9 instructions, enter code 9 in B13A.

* * * * *

(14) BLOCK B14, CICA APPLICABILITY. Enter one of the following codes;

(i) Code A--Pre-CICA. Enter code A if the action resulted from a solicitation issued before April 1, 1985. Modifications within the original scope of work of such awards and orders under pre-CICA indefinite delivery type contracts are reported as pre-CICA. In case of modifications issued on or after April 1, 1985, coded A in B13 or B13D, as appropriate, CICA is applicable to the modification, and these actions shall be coded B in Block B14.

(ii) Code B--CICA Applicable. Enter code B if the action resulted from a solicitation issued on or after April 1, 1985, and none of the following codes applies.

(iii) Code C--Simplified Acquisition Procedures Other than FAR subpart 13.6. Enter code C if the action resulted from use of the procedures in FAR part 13, other than those in subpart 13.6.

(iv) Code D--Simplified Procedures Pursuant to FAR subpart 13.6. Enter code D if the action resulted from use of the procedures in FAR subpart 13.6.

(c) * * *

(2) Do not complete Part C if the contracting action is an action with a government agency, i.e., Block B5B (Government Agency) is coded Y (Yes). If Block B13A is coded 6, do not complete any blocks in Part C

except Block C3, and Blocks C13A and C13B when they apply.

* * * * *

(4) * * *

(xi) BLOCK C11, CERTIFIED COST OR PRICING DATA. Enter one of the following codes when Block B1B is coded A. Otherwise, leave blank. (A) Code Y--Yes--Obtained. Enter code Y when cost or pricing data were obtained (see FAR 15.804-2) and certified in accordance with FAR 15.804-4.

(B) Code N--No--Not Obtained. Enter code N when neither code Y nor code W applies.

(C) Code W--Not Obtained--Waived. Enter code W when cost or pricing data were not obtained because the requirement was waived (see FAR 15.804-1(a)(3) and 215.804-1(b)(4)).

* * * * *

(d) * * *

(5) * * *

* * * * *

(vii) * * *

(A) Code A--Not a SBIR Program Phase I/II/III. Enter Code A if the action is not in support of a Phase I, II, or III SBIR program.

* * * * *

(D) Code D--SBIR Program Phase III Action. Enter code D if the action is related to a Phase III contract in support of the SBIR Program.

* * * * *

(e) * * *

(4) Block E4--CONTINGENCY OPERATION. Enter code Y in Block E4 if the contracting action is in support of a contingency operation, as defined in 213.101, and the action exceeds the simplified acquisition

threshold for contingency operations (see 213.000). Otherwise, leave Block E4 blank.

(5) BLOCK E5--BLOCK E8--RESERVED.

* * * * *

4. Section 253.204-71 is amended by revising paragraph (a)(3) to

read as follows:

253.204-71 DD Form 1057, Monthly Contracting Summary of Actions $25,000 or Less.

(a) * * *

(3) Report actions of $25,000 or less in support of a contingency operation in accordance with the instructions in paragraphs (c) through (j) of this subsection. Report actions exceeding $25,000 but not

exceeding $200,000 in support of a contingency operation (see 213.000) on the monthly DD Form 1057 as follows:

(i) Section B; the applicable lines are 5, 5a, 7, and 7a.

(ii) Section C; the applicable lines are 1 and 1c, 2 and 2c, and 3 and 3c.

(iii) Sections D, E, and F, are not applicable.

(iv) Section G; complete fully.

* * * * *