Defense FAR Supplement (DFARS) Change Notice 20060123.

DoD published the following final and proposed DFARS rules on Jan. 23, 2006. Link to the Federal Register notices for these changes through the following Web site: <http://www.acq.osd.mil/dpap/dars/dfars/changenotice/index.htm>.

Final Rules

Simplified Acquisition Procedures (DFARS Case 2003-D075)

Updates and consolidates text on the use of imprest funds and third-party drafts; deletes unnecessary cross-references; and relocates to the PGI (Procedures, Guidance, and Information) Web site at <http://www.acq.osd.mil/dpap/dars/pgi/index.htm> guidance on the use of unilateral contract modifications and procedures for use of forms for purchases made using simplified acquisition procedures.

Contracting by Negotiation (DFARS Case 2003-D077)

Deletes unnecessary text on structuring of contracts and unnecessary cross-references; updates policy on source selection evaluation factors; and relocates to PGI, procedures for preparation of source selection plans and examples of source selection evaluation factors.

Specialized Service Contracting (DFARS Case 2003-D041)

Relocates to PGI, procedures for defining the geographical area to be covered by mortuary services contracts and procedures for distribution of those contracts; deletes a contract clause containing facility requirements for mortuary services, as these requirements are adequately addressed in state law; and deletes unnecessary requirements relating to contracting for laundry and dry cleaning services.

Acquisition of Utility Services (DFARS Case 2003-D069)

Deletes text on the use of competitive procedures and delegated authority to acquire utility services, as these issues are adequately addressed in the FAR; deletes obsolete text on preaward contract reviews; and relocates to PGI, procedures and corresponding definitions related to connection charges and award of separate contracts for utility services.

Utility Rates Established by Regulatory Bodies (DFARS Case 2003-D096)

Clarifies that utility rates established by independent regulatory bodies may be relied upon as fair and reasonable; and clarifies requirements for use of contract clauses addressing changes in rates for regulated and unregulated utility services.

DoD Pilot Mentor-Protege Program (DFARS Case 2004-D028)

Finalizes, without change, the interim rule published in DFARS Change Notice 20050524 regarding the DoD Pilot Mentor-Protege Program. The rule extends, through Sept. 30, 2010, the period during which companies may enter into agreements under the program. In addition, the rule expands the program to permit Service-disabled-veteran-owned small business concerns and HUBZone small business concerns to participate in the program as protege firms. The rule implements Sections 841 and 842 of the National Defense Authorization Act for Fiscal Year 2005.

Proposed Rules

Earned Value Management Systems (DFARS Case 2005-D006)

Updates policy on contractor earned value management systems (EVMS) to revise the contract dollar thresholds at which EVMS requirements are applied and to eliminate requirements for contractors to submit cost/schedule status reports. Requires compliance with American National Standards Institute/Electronic Industries Alliance Standard 748, Earned Value Management Systems, for cost or incentive contracts and subcontracts valued at $20,000,000 or more; and requires a formally validated and accepted EVMS for cost or incentive contracts and subcontracts valued at $50,000,000 or more. The objective is to streamline, improve, and increase consistency in earned value management requirements.

Inflation Adjustment of Acquisition-Related Thresholds (DFARS Case 2004-D022)

Adjusts acquisition-related dollar thresholds for inflation. Section 807 of the National Defense Authorization Act for Fiscal Year 2005 requires periodic adjustment of the statutory acquisition-related dollar thresholds in the Federal Acquisition Regulation (FAR) for inflation, except for those established by the Davis-Bacon Act, the Service Contract Act, or trade agreements. The proposed FAR changes were published in the Federal Register on Dec. 12, 2005. This proposed DFARS rule makes comparable changes to acquisition-related thresholds in the DFARS.

Foreign Acquisition Procedures (DFARS Case 2005-D012)

Relocates to PGI, procedures for requesting waivers of foreign source restrictions; for requesting waivers under North Atlantic Treaty Organization cooperative projects; for determining that it is necessary to award a contract for ballistic missile defense research, development, test, and evaluation to a foreign source; and for applying the Balance of Payments Program to an acquisition.