Defense FAR Supplement (DFARS) change notice 20050323.

DoD published the following changes and proposed changes to the DFARS on March 23, 2005. Access these changes through links on the Director, Defense Procurement and Acquisition Policy Web site at <http://www.acq.osd.mil/dpap/dars/dfars/changenotice/index.htm>.

Interim Rule

Contractor Performance of Acquisition Functions Closely Associated with Inherently Governmental Functions (DFARS Case 2004-D021)

Permits contracting for acquisition functions closely associated with inherently governmental functions only if: appropriate DoD personnel are not available to perform the functions; appropriate DoD personnel will supervise contractor performance and will perform all associated inherently governmental functions; and the agency addresses any potential contractor organizational conflict of interest. Implements Section 804 of the National Defense Authorization Act for Fiscal Year 2005, and is intended to ensure proper management and oversight of contracts for acquisition functions that are closely associated with inherently governmental functions.

Final Rules

Contractor Performance of Security-Guard Functions (DFARS Case 2004-D032)

Conditionally extends, from Dec. 1, 2005, to Sept. 30, 2006, authority for contractor performance of security-guard functions at military installations or facilities to meet the increased need for such functions since Sept. 11, 2001. Implements Section 324 of the National Defense Authorization Act for Fiscal Year 2005, which requires DoD to submit a report to Congress on the use of this authority, no later than Dec. 1, 2005, to permit extension of the authority.

Extension of Test Program for Negotiation of Comprehensive Small Business Subcontracting Plans (DFARS Case 2004-D029)

Extends, from Sept. 30, 2005, to Sept. 30, 2010, the test program that permits negotiation of comprehensive small business subcontracting plans with DoD contractors. The test program is intended to determine whether comprehensive subcontracting plans on a corporate, division, or plant-wide basis will reduce administrative burdens while enhancing subcontracting opportunities for small and small disadvantaged business concerns. The extension implements Section 843 of the National Defense Authorization Act for Fiscal Year 2005.

Major Systems Acquisition (DFARS Case 2003-D030)

Updates references to the DoD 5000 series documents with regard to major systems acquisition and earned value management systems. Relocates DFARS text on earned value management from Part 234, Major Systems Acquisition, to part 242, Contract Administration, since earned value management requirements are not limited to major systems. The corresponding earned value management provision and clause are relocated from DFARS 252.234-7000 and 252.234-7001, to 252.242-7001 and 252.242-7002, respectively, with no substantive change, other than update of references to DoDI 5000.2.

A March 7, 2005, memorandum from the acting under secretary of defense (acquisition, technology and logistics) containing additional changes to DoD earned value management policy is shown on p. 80 of this issue.

Proposed Rules

Foreign Acquisition (DFARS Case 2003-D008)

Proposed change updates and clarifies DFARS text on the acquisition of supplies and services from foreign sources. Relocates to PGI, guidance on evaluating offers of foreign end products; information on international agreements; and procedures for contracting with qualifying country sources, for administration of duty-free entry provisions, and for acquisitions involving foreign military sales requirements.

Restrictions on Totally Enclosed Lifeboat Survival Systems (DFARS Case 2004-D034)

Proposed change removes DFARS text addressing restrictions on the acquisition of totally enclosed lifeboats from foreign sources. The text proposed for removal is based on fiscal year 1994 and 1995 appropriations act provisions that are no longer considered applicable and other statutory provisions that apply only to the Navy.

Contracting by Negotiation (DFARS Case 2003-D077)

Proposed change updates DFARS text on contracting by negotiation and source selection. Relocates to PGI, procedures for preparation of source selection plans and examples of source selection evaluation factors.

Contract Modifications (DFARS Case 2003-D024)

Proposed change deletes unnecessary text on contract modifications; clarifies procedures for determining if a request for equitable adjustment requires contractor certification; and relocates to PGI, procedures for identifying foreign military sales requirements, for obligating or deobligating contract funds, and for review and definitization of change orders.

Component Breakout (DFARS Case 2003-D071)

Proposed change relocates the contents of DFARS Appendix D, Component Breakout, to PGI with no substantive change. Breaking out components of end items permits the government to purchase the components directly from the manufacturer or supplier and furnish them to the end item manufacturer as Government-furnished material for future acquisitions.