DEFENSE FAR SUPPLEMENT (DFARS) Change Notice 20030722

DoD made the following changes to the DFARS on July 22, 2003:

Buy-to-Budget Acquisition of End Items

(DFARS Case 2002-D036) (Interim Rule)

Authorizes DoD to acquire a higher quantity of an end item than the quantity specified in a law providing for the funding of the acquisition, if the head of the agency determines that (1) the requirement for the end item is expected to remain substantially unchanged throughout the period of the acquisition; (2) it is possible to acquire the higher quantity of the end item without additional funding because of production efficiencies or other cost reductions;

(3) the amount of funds used to acquire the higher quantity will not exceed the amount provided under the law; and (4) the amount provided under the law is sufficient to ensure that each unit of the higher quantity is fully funded as a complete end item. This change implements Section 801 of the National Defense Authorization Act for Fiscal Year 2003.

Affected subparts/sections: DFARS Table of Contents; Part 207 Table of Contents; 207.70

The Federal Register notice for this rule is available here:

[DFARS Case 2002-D036]

Defense Federal Acquisition Regulation Supplement; Buy-to-Budget

Acquisition of End Items

AGENCY: 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 (DFARS) to implement Section 801 of

the National Defense Authorization Act for Fiscal Year 2003. Section

801 authorizes DoD to acquire a higher quantity of an end item than the

quantity specified in law, under certain conditions.

DATES: Effective date: July 22, 2003.

Comment date: Comments on the interim rule should be submitted to

the address shown below on or before September 22, 2003, to be

considered in the formation of the final rule.

ADDRESSES: Respondents may submit comments directly on the World Wide

Web at http://emissary.acq.osd.mil/dar/dfars.nsf/pubcomm. As an

alternative, respondents may e-mail comments to: http://emissary.acq.osd.mil/dar/dfars.nsf/pubcomm. As an

alternative, respondents may e-mail comments to: dfars@acq.osd.mil.

Please cite DFARS Case 2002-D036 in the subject line of e-mailed

comments.

Respondents that cannot submit comments using either of the above

methods may submit comments to: Defense Acquisition Regulations

Council, Attn: Ms. Susan Schneider, OUSD(AT&L)DPAP(DAR), IMD 3C132,

3062 Defense Pentagon, Washington, DC 20301-3062; facsimile (703) 602-

0350. Please cite DFARS Case 2002-D036.

At the end of the comment period, interested parties may view

public comments on the World Wide Web at http://emissary.acq.osd.mil/dar/dfars.nsf

FOR FURTHER INFORMATION CONTACT: Ms. Susan Schneider, (703) 602-0326.

SUPPLEMENTARY INFORMATION:

A. Background

This interim rule adds a new subpart at DFARS 207.70 to implement

Section 801 of the National Defense Authorization Act for Fiscal Year

2003 (Pub. L. 107-314). Section 801 added 10 U.S.C. 2308, which

provides that DoD may acquire a higher quantity of an end item than the

quantity specified in a law providing for the funding of the

acquisition, if the agency head makes certain findings with regard to

the acquisition.

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 does not expect this rule to have a significant economic impact

on a substantial number of small entities within the meaning of the

Regulatory Flexibility Act, 5 U.S.C. 601, et seq., because any

additional quantities acquired as a result of this rule must be

acquired without additional funding. Therefore, DoD has not performed

an initial regulatory flexibility analysis. 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 2002-D036.

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 prior to affording the public an opportunity to comment.

This interim rule implements Section 801 of the National Defense

Authorization Act for Fiscal Year 2003 (Pub. L. 107-314), which

authorizes DoD to acquire a higher quantity of an end item than the

quantity specified in law, under certain conditions. Section 801

required issuance of final implementing regulations by April 1, 2003.

Comments received in response to this interim rule will be considered

in the formation of the final rule.

List of Subjects in 48 CFR Part 207

Government procurement.

Michele P. Peterson,

Executive Editor, Defense Acquisition Regulations Council.

A Microsoft Word format document showing all additions and deletions made by this rule is here:

Buy-to-Budget Acquisition of End Items

DFARS Case 2002-D036

Interim Rule

PART 207-ACQUISITION PLANNING

* * * * *

[SUBPART 207.70-BUY-TO-BUDGET - ADDITIONAL QUANTITIES OF END ITEMS

207.7001 Definition.

207.7002 Authority to acquire additional quantities of end items.

207.7003 Limitation.

For noncompetitive acquisitions, the acquisition of additional quantities is limited to not more than 10 percent of the quantity approved in the justification and approval prepared in accordance with FAR Part 6 for the acquisition of the end item.]

* * * * *

Multiyear Procurement Authority for Environmental Services for Military Installations (DFARS Case 2003-D004) (Interim Rule)

Authorizes the use of multiyear contracting for environmental remediation services for military installations, if the head of the agency determines that (1) there will be a continuing requirement for the services consistent with the proposed contract period; (2) furnishing the services will require a substantial initial investment or the incurrence of substantial contingent liabilities; and (3) use of a multiyear contract will encourage effective competition and promote economies in operations. This change implements Section 827 of the National Defense Authorization Act for Fiscal Year 2003.

Affected subparts/sections: 217.1

The Federal Register notice for this rule is available here:

DEPARTMENT OF DEFENSE

48 CFR Part 217

[DFARS Case 2003-D004]

Defense Federal Acquisition Regulation Supplement; Multiyear

Procurement Authority for Environmental Services for Military

Installations

AGENCY: 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 (DFARS) to implement Section 827 of

the National Defense Authorization Act for Fiscal Year 2003. Section

827 authorizes DoD to enter into multiyear contracts for environmental

remediation services for military installations.

DATES: Effective date: July 22, 2003.

Comment date: Comments on the interim rule should be submitted to

the address shown below on or before September 22, 2003, to be

considered in the formation of the final rule.

ADDRESSES: Respondents may submit comments directly on the World Wide

Web at http://emissary.acq.osd.mil/dar/dfars.nsf/pubcomm. As an

alternative, respondents may e-mail comments to: http://emissary.acq.osd.mil/dar/dfars.nsf/pubcomm. As an

alternative, respondents may e-mail comments to: dfars@acq.osd.mil.

Please cite DFARS Case 2003-D004 in the subject line of e-mailed

comments.

Respondents that cannot submit comments using either of the above

methods may submit comments to: Defense Acquisition Regulations

Council, Attn: Mr. Euclides Barrera, OUSD(AT&L)DPAP(DAR), IMD 3C132,

3062 Defense Pentagon, Washington, DC 20301-3062; facsimile (703) 602-

0350. Please cite DFARS Case 2003-D004.

At the end of the comment period, interested parties may view

public comments on the World Wide Web at http://emissary.acq.osd.mil/dar/dfars.nsf

FOR FURTHER INFORMATION CONTACT: Mr. Euclides Barrera, (703) 602-0296.

SUPPLEMENTARY INFORMATION:

A. Background

10 U.S.C. 2306c provides authority for DoD to enter into contracts

for periods of not more than 5 years for certain services, and for

items of supply related to those services, even though funds would

otherwise be available for obligation only within the fiscal year for

which appropriated. Such contracts are authorized if the head of the

agency finds that (1) there will be a continuing requirement for the

services consonant with current plans for the proposed contract period;

(2) the furnishing of such services will require a substantial initial

investment in plant or equipment, or the incurrence of substantial

contingent liabilities for the assembly, training, or transportation of

a specialized work force; and (3) the use of such a contract will

promote the best interests of the United States by encouraging

effective competition and promoting economies in operation. 10 U.S.C.

2306c is implemented at DFARS 217.171(a).

Section 827 of the National Defense Authorization Act for Fiscal

Year 2003 (Pub. L. 107-314) amended 10 U.S.C. 2306c to add

environmental remediation services for military installations to the

types of services for which multiyear contracting is authorized. This

interim rule amends DFARS 217.171(a), and adds a definition of

``military installation'' at DFARS 217.103, to implement Section 827.

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 does not expect this rule to have a significant economic impact

on a substantial number of small entities within the meaning of the

Regulatory Flexibility Act, 5 U.S.C. 601, et seq., because application

of the rule is limited to contracts for environmental remediation

services for military installations. In addition, before using the

multiyear contracting authority provided by the rule, the head of the

agency must determine that certain conditions exist, to include a

determination that use of a multiyear contract will promote the best

interests of the United States by encouraging effective competition and

promoting economies in operations. Therefore, DoD has not performed an

initial regulatory flexibility analysis. 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 2003-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.

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 prior to affording the public an opportunity to comment.

This interim rule implements Section 827 of the National Defense

Authorization Act for Fiscal Year 2003 (Pub. L. 107-314), which

provides authority for DoD to enter into multiyear contracts for

environmental remediation services for military installations. Section

827 became effective upon enactment on December 2, 2002. Comments

received in response to this interim rule will be considered in the

formation of the final rule.

List of Subjects in 48 CFR Part 217

Government procurement.

Michele P. Peterson,

Executive Editor, Defense Acquisition Regulations Council.

A Microsoft Word format document showing all additions and deletions made by this rule is here:

DFARS Case 2003-D004

Multiyear Procurement Authority for Environmental Services

for Military Installations

Interim Rule

SUBPART 217.1--MULTIYEAR CONTRACTING

217.103 Definitions.

[As used in this subpart-]

"Advance procurement," as used in this subpart, means an exception to the full funding policy that allows acquisition of long lead time items (advance long lead acquisition) or economic order quantities (EOQ) of items (advance EOQ acquisition) in a fiscal year in advance of that in which the related end item is to be acquired. Advance procurements may include materials, parts, components, and effort that must be funded in advance to maintain a planned production schedule.

["Military installation" means a base, camp, post, station, yard, center, or other activity under the jurisdiction of the Secretary of a military department or, in the case of an activity in a foreign country, under the operational control of the Secretary of a military department or the Secretary of Defense (10 U.S.C. 2801(c)(2)).]

* * * * *

217.171 Multiyear contracts for services.

* * * * *

* * * * *