OFFICE OF THE UNDER SECRETARY of DEFENSE

3000 DEFENSE PENTAGON

WASHINGTON, DC 20301-3000

March 11, 1998

DP(DAR)

In reply refer to DFARS Case: 97-D314 D.L. 98-004

NEMORANDUM FOR DIRECTORS OF DEFENSE AGENCIES DEPUTY FOR ACQUISITION AND BUSINESS MANAGEMENT, ASN(RO&A) /ABM

DEPUTY ASSISTANT SECRETARY OF THE AIR FORCE (CONTRACTING), SAF/AQC

DEPUTY ASSISTANT SECRETARY OF THE ARMY (PROCUREMENT) DEPUTY DIRECTOR (ACQUISITION), DEFENSE LOGISTICS AGENCY

SUBJECT: Veterans Employment Emphasis

We have amended the Defense Federal Acquisition Regulation Supplement (DFARS) to implement the prohibition in Section 8117 of the National Defense Appropriations Act for Fiscal Year 1998 (Pub, L. 105-56), on obligation or expenditure of fiscal year 1998 funds appropriated therein with a contractor that is subject to the reporting requirement at subsection 4212(d) of Title 38, United States Code, but has not submitted the most recent report required by such subsection for 1987 or a subsequent year.

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

Eleanor R. Spector

Director, Defense Procuremont

Attachment

List of Subjects in 48 CFR Parts 209, 212, 213, 217, 222, and 252

PART 209--CONTRACTOR QUALIFICATIONS

Sec. 209.104-1 General standards.

* * * * *

(g) * * *

[(iii) A contracting officer shall not enter into or renew a contract with a contractor that is subject to the reporting requirements of 38 U.S.C. 4212(d) pertaining to employment of veterans, but has not submitted the most recent report required by 38 U.S.C. 4212(d) for 1997 or a subsequent year (see 222.1304(b))].

Sec. 209.104-70 Solicitation provisions.

* * * * *

[(c) Use the provision at 252.209-7003, Compliance with Veterans' Employment Reporting Requirements, in solicitations with a value estimated to exceed the simplified acquisition threshold.]

PART 212--ACQUISITION OF COMMERCIAL ITEMS

Sec. 212.503 Applicability of certain laws to Executive Agency contracts for the acquisition of commercial items.

(a) * * *

[(xii) Section 8117, Pub. L. 105-56, Restriction on Use of Funds Appropriated for Fiscal Year 1998 (see 222.1304(b))].

* * * * *

PART 213--SIMPLIFIED ACQUISITION PROCEDURES

[ 213.005 Federal Acquisition Streamlining Act of 1994 list of inapplicable laws.

(a) The restriction on use of funds appropriated for fiscal year 1998 in Section 8117 of the National Defense Appropriations Act for Fiscal Year 1998 (Pub. L. 105-56) is inapplicable to contracts at or below the simplified acquisition threshold (see 222.1304(b))].

PART 217--SPECIAL CONTRACTING METHODS

[217.207 Exercise of options.

(c) Except for contracts for the acquisition of commercial items, if the contractor has any contract containing the clause at FAR 52.222- 37, Employment Reports on Disabled Veterans and Veterans of the Vietnam Era, the contracting officer may exercise an option with a value exceeding the simplified acquisition threshold only after determining that the contractor has submitted the most recent report required by that clause (see 222.1304(b)).]

PART 222--APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS

Section 222.1304 is added to read as follows:

[222.1304 Department of Labor notices and reports.

(b) As provided in Section 8117 of the National Defense Appropriations Act for Fiscal Year 1998 (Pub. L. 105-56), no funds made available in that Act may be obligated or expended to enter into or renew a contract with a contractor that is subject to the reporting requirements of 38 U.S.C. 4212(d) (i.e., the VETS-100 report required by FAR 52.222-37, Employment Reports on Disabled Veterans and Veterans of the Vietnam Era) but has not submitted the most recent report required by 38 U.S.C. 4212(d) for 1997 or a subsequent year.]

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

Section 252.209-7003 is added to read as follows:

[252.209-7003 Compliance with Veterans' Employment Reporting Requirements.

As prescribed in 222.1304(b) use the following provision:

Compliance With Veterans' Employment Reporting Requirements (Mar 1998)

By submission of its offer, the offeror represents that, if it is subject to the reporting requirements of 37 U.S.C. 4212(d) (i.e., the VETS-100 report required by Federal Acquisition Regulation clause 52.222-37, Employment Reports on Disabled Veterans and Veterans of the Vietnam Era), it has submitted the more recent report required by 37 U.S.C. 4212(d)].

(End of provision)