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Defense far supplement (DFARS) Change Notice 20060321.

DoD published the following final and proposed DFARS changes on March 21, 2006. Additional information on these changes is available at <>.

Final Rules

Consolidation of Contract Requirements (DFARS Case 2003-D109)

Finalizes the interim rule published on Sept. 17, 2004 (DFARS Change Notice 20040917), placing restrictions on consolidating two or more separate requirements into a single solicitation and contract with a total value exceeding $5 million. Implements Section 801 of the National Defense Authorization Act for Fiscal Year 2004.

The final rule contains additional changes to clarify the applicability of the rule and the requirements for market research before soliciting offers for acquisitions that could lead to a consolidation of contract requirements.

Component Breakout (DFARS Case 2003-D071)

Relocates policy on component breakout from DFARS Appendix D to DFARS Part 207; and relocates procedures for component breakout from DFARS Appendix D to PGI. Breakout of 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.

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

Finalizes the interim rule published on March 23, 2005 (DFARS Change Notice 20050323), that 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 oversee 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. The final rule contains an additional change to clarify the requirement for government oversight of contractor personnel.

Competition Requirements for Federal Supply Schedules and Multiple Award Contracts (DFARS Case 2004-D009)

Updates and clarifies requirements for competition in the placement of orders for supplies or services under Federal Supply Schedules and multiple award contracts. The rule establishes approval requirements for noncompetitive orders that are consistent with the approval requirements found in the FAR and makes additional changes for consistency with current FAR requirements for use of Federal Supply Schedules; relocates procedural information on the use of Federal Supply Schedules to PGI; and adds PGI guidance on the appropriate use of exceptions to competition requirements.

Approval of Service Contracts and Task and Delivery Orders (DFARS Case 2002-D024)

Finalizes the interim rule published on May 24, 2005 (DFARS Change Notice 20050524), requiring DoD activities to comply with review and approval requirements when acquiring supplies or services through the use of non-DoD contracts in amounts exceeding the simplified acquisition threshold. Implements Section 801 of the National Defense Authorization Act for Fiscal Year 2002 and Section 854 of the National Defense Authorization Act for Fiscal Year 2005. The final rule contains additional changes to address requirements for departments and agencies to submit an annual report on the use of non-DoD contracts.

Incentive Program for Purchase of Capital Assets Manufactured in the United States (DFARS Case 2005-D003)

Finalizes the interim rule published on May 24, 2005 (DFARS Change Notice 20050524), requiring consideration of the purchase of capital assets (including machine tools) manufactured in the United States, when conducting source selections and making award fee determinations for major defense acquisition programs. Implements Section 822 of the National Defense Authorization Act for Fiscal Year 2004. The final rule contains additional changes to clarify the statutory requirements.

Acquisition of Ball and Roller Bearings (DFARS Case 2003-D021)

Updates requirements for the acquisition of ball and roller bearings from domestic sources, and clarifies the applicability of these requirements to components of commercial items. Addresses the provisions of annual DoD appropriations acts and eliminates text addressing obsolete statutory provisions.

Proposed Rules

Electronic Submission and Processing of Payment Requests (DFARS Case 2005-D009)

Proposes amendments to the exceptions to the general requirement for contractors to submit payment requests in electronic form. The DFARS presently provides an exception for contractors that are unable to submit electronic payment requests. This exception has been subject to differing interpretations as to what constitutes a contractor's inability to submit an electronic payment request. The proposed rule replaces this exception with one that applies when the administrative contracting officer determines that electronic submission would be unduly burdensome to the contractor.

Reports of Government Property (DFARS Case 2005-D015)

Proposes revisions to requirements for reporting of government property in the possession of DoD contractors. The proposed rule replaces existing DD Form 1662 reporting requirements with requirements for DoD contractors to electronically submit, to the Item Unique Identification (IUID) Registry, the IUID data applicable to the government property in the contractor's possession. This will result in more accurate and efficient reporting and recordkeeping.

Debarment, Suspension, and Business Ethics (PGI Case 0000-P010)

Adds information on contractor responsibility matters and use of GSA's Excluded Parties List System.

CONUS Antiterrorism Requirements (PGI Case 0000-P046)

Adds requirements for consideration of antiterrorism measures in acquisition planning.

Taxes (PGI Case 0000-P024)

Contains information for use in addressing tax issues under DoD contracts.
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Title Annotation:Policy & Legislation
Publication:Defense AT & L
Date:Jul 1, 2006
Previous Article:Defense far supplement (DFARS) Change Notice 20060223.
Next Article:Defense Science Board (February 2006); Transformation: a Progress Assessment, Volume I.

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