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Defense FAR Supplement (DFARS) Change Notice 20040223.

The Department of Defense published the following final and proposed rules in the Federal Register on Feb. 23, 2004:

Final Rule:

Memorandum of Understanding--Sweden (DFARS Case 2003-D089)

Implements a determination of the Deputy Secretary of Defense that it is inconsistent with the public interest to apply the restrictions of the Buy American Act to the acquisition of defense equipment produced or manufactured in Sweden, based on a memorandum of understanding between the United States and Sweden. DFARS 225.872-1 is amended to add Sweden to the list of countries for which DoD has made such public interest determinations, and to remove Sweden from the list of countries for which exemption from the Buy American Act is permitted only on a purchase-by purchase basis.

The Federal Register notice for the final rule above and the following 14 proposed rules is available at <>.

Proposed Rules

DFARS Transformation

The following 14 proposed rules are a result of DFARS Transformation, which is a major DoD initiative to dramatically change the purpose and content of the DFARS. The transformed DFARS will contain only requirements of law, DoD-wide policies, delegations of FAR authorities, deviations from FAR requirements, and policies/procedures that have a significant effect on the public. The objective is to improve the efficiency and effectiveness of the acquisition process, while allowing the acquisition workforce the flexibility to innovate. Additional information on the DFARS Transformation initiative is available at <>.

Procedures, Guidance, and Information (DFARS Case 2003-D090)

Establishes the framework for a new DFARS companion resource, Procedures, Guidance, and Information (PGI), which will contain mandatory and non-mandatory internal DoD procedures, non-mandatory guidance, and supplemental information. Use of PGI will enable DoD to more rapidly convey internal administrative and procedural information to the acquisition workforce. PGI will not contain policy or procedures that significantly affect the public and, therefore, will not be published in the Federal Register or the Code of Federal Regulations. PGI will be available on the World Wide Web and will be electronically linked to the DFARS. The DFARS and PGI text have been interlinked for the proposed rules in this notice.

Contractor Qualifications Relating to Contract Placement (DFARS Case 2003-D011)

Deletes obsolete text pertaining to Intermediate Range Nuclear Forces Treaty inspections; deletes unnecessary first article testing and approval requirements; and relocates procedures for requesting pre-award surveys and obtaining approval for product qualification requirements to PGI.

Improper Business Practices and Contractor Qualifications Relating to Debarment, Suspension, and Business Ethics (DFARS Case 2003-D012)

Consolidates text on reporting violations and suspected violations of certain requirements; updates a contract clause pertaining to prohibitions on persons convicted of fraud or other defense-contract-related felonies; and relocates internal review and referral procedures to PGI.

Publicizing Contract Actions (DFARS Case 2003-D016)

Deletes unnecessary text pertaining to cooperative agreement holders, paid advertisements, and synopsis requirements; and relocates a synopsis format to PGI.

Competition Requirements (DFARS Case 2003-D017)

Deletes text that is obsolete or duplicative of FAR policy; and relocates procedures for documenting reasons for use of other than full and open competition to PGI.

Laws Inapplicable to Commercial Subcontracts (DFARS Case 2003-D018)

Removes the Trade Agreements Act and the Buy American Act from the list of laws inapplicable to subcontracts for the acquisition of commercial items. Inclusion of these laws on the list is unnecessary, because the government does not apply the restrictions of the Trade Agreements

Act or the Buy American Act at the subcontract level. The prime contractor is responsible for providing an end product that meets the requirements of the Acts.

Major Systems Acquisition (DFARS Case 2003-D030)

Deletes unnecessary definitions; updates references to the DoD 5000 series documents; clarifies earned value management system and cost/schedule status reporting requirements; and relocates internal review procedures to PGI.

Cost Principles and Procedures (DFARS Case 2003-D036)

Deletes obsolete and duplicative text pertaining to contract cost principles; and relocates procedural text on government responsibilities relating to contractor restructuring costs to PGI.

Insurance (DFARS Case 2003-D037)

Relocates procedural text on risk-pooling insurance arrangements and requests for waiver of overseas workers' compensation requirements to PGI.

Protection of Privacy and Freedom of Information (DFARS Case 2003-D038)

Deletes text pertaining to protection of individual privacy and the Freedom of Information Act. This subject is adequately addressed in other DoD publications, which are referenced in the DFARS.

Contractor Use of Government Supply Sources (DFARS Case 2003-D045)

Clarifies contractor requirements for payment of invoices from government supply sources; and relocates procedures for authorizing contractor use of government supply sources to PGI.

Removal of Obsolete Research and Development Contracting Procedures (DFARS Case 2003-D058)

Deletes a standard format previously used for research and development solicitations and contracts. The format has become obsolete due to advances in technology and use of the World Wide Web.

Research and Development Contracting (DFARS Case 2003-D067)

Deletes unnecessary text on solicitation and contract content; updates statutory references; updates a clause pertaining to contractor submission of scientific and technical reports; and relocates procedures for maintenance of scientific and technical reports to PGI.

Sealed Bidding (DFARS Case 2003-D076)

Deletes unnecessary text on structuring of contracts, providing copies of documents, and preparation of solicitations; and updates the list of officials authorized to permit correction of mistakes in bid.
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Title Annotation:Policy & Legislation; Federal Acquisition Regulations
Publication:Defense AT & L
Geographic Code:1USA
Date:May 1, 2004
Previous Article:OASA(ALT) bulletin, February 2004: Defense Federal Acquisition Regulation System (DFARS) clarification on foreign contracting.
Next Article:Department of Defense news release (March 1, 2004): DoD to establish program to attract highly qualified experts.

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