DFARS Change Notice 20050916.

On Sept. 16, 2005, the Office of the Director of Defense Procurement and Acquisition Policy published the following final and proposed changes to the Defense FAR Supplement (DFARS). Additional information can be found at <http://www.acq.osd.mil/dpap/dars/dfars/changenotice/index.htm>.

Final Rules

MULTIYEAR CONTRACTING (DFARS CASE 2004-D024)

Finalizes, without change, the interim rule published in DFARS Change Notice 20050509 to implement Section 814 of the National Defense Authorization Act for Fiscal Year 2005 and Section 8008 of the Defense Appropriations Act for Fiscal Year 2005. Section 814 requires DoD to provide notice and supporting rationale to Congress before awarding a multiyear contract containing a cancellation ceiling exceeding $100 million that is not fully funded. Section 8008 places additional restrictions on the award of multiyear contracts for supplies using fiscal year 2005 funds.

PROVISION OF INFORMATION TO COOPERATIVE AGREEMENT HOLDERS (DFARS CASE 2004-D025)

Finalizes, without change, the interim rule published in DFARS Change Notice 20050222 to implement Section 816 of the National Defense Authorization Act for Fiscal Year 2005. Section 816 increased, from $500,000 to $1,000,000, the threshold at which DoD contracts must include a requirement for the contractor to provide to cooperative agreement holders, upon their request, a list of the contractor's employees who are responsible for entering into subcontracts.

Proposed Rules

ACQUISITION PLANNING (DFARS CASE 2003-D044)

Proposed change increases the dollar thresholds for preparation of written acquisition plans; updates acquisition planning requirements for consistency with changes to the DoD 5000 series publications; deletes unnecessary text relating to contract administration and class justifications for other than full and open competition; clarifies requirements for funding of leases; and relocates to Procedures, Guidance, and Information (PGI) at <http://www.acq.osd.mil/dpap/dars/pgi/index.htm>, text addressing the contents of written acquisition plans.

TYPES OF CONTRACTS (DFARS CASE 2003-D078)

Proposed change streamlines text on the use of economic price adjustment clauses; increases, from 3 to 5 years, the standard maximum ordering period under basic ordering agreements; deletes obsolete text on the use of cost-plus-fixed-fee contracts for environmental restoration; deletes unnecessary text on design stability and use of incentive provisions; and relocates to PGI, procedures for selecting contract type and for use of special economic price adjustment clauses, incentive contracts, and basic ordering agreements.

SPECIAL CONTRACTING METHODS (DFARS CASE 2003-D079)

Proposed change clarifies text on the use of option clauses for industrial capability production planning; deletes unnecessary text on determinations for interagency acquisitions under the Economy Act; deletes restrictive requirements relating to the use of master agreements for vessel repair; deletes obsolete procedures for acquisition of bakery and dairy products; lowers the level for approval of profit on undefinitized contract actions for which substantial performance has been completed; and relocates to PGI, guidance on the use of options and procedures for preparation of master agreements and job orders, for breakout and acquisition of spare parts, and for acquisition of work over and above contract requirements.

ACQUISITION OF INFORMATION TECHNOLOGY (DFARS CASE 2003-D068)

Proposed change deletes text that is obsolete or unnecessary; clarifies text addressing charges for special construction or assembly related to telecommunications services; clarifies the text of clauses used in basic agreements for telecommunications services; and relocates to PGI, information on acquiring telecommunications services from foreign carriers.

EXCHANGE OR SALE OF GOVERNMENTOWNED INFORMATION TECHNOLOGY (DFARS CASE 2003-D094)

Proposed change deletes obsolete procedures for exchange or sale of government-owned information technology. DoD now handles the exchange or sale of information technology equipment in the same manner as other personal property, in accordance with DoD 4140.1-R, Supply Chain Materiel Management Regulation.