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Panoptic Enterprises' FEDERAL CONTRACTS DISPATCH

DATE: September 11, 2001

SUBJECT: Defense Federal Acquisition Regulation Supplement (DFARS); Subcontract Commerciality Determinations

SOURCE: Federal Register, September 11, 2001, Vol. 66, No. 176, page 47159

AGENCIES: Department of Defense (DOD)

ACTION: Proposed Rule

SYNOPSIS: DOD is proposing to amend DFARS Part 244, Subcontracting Policies and Procedures, to clarify the responsibilities of contractors and administrative contracting officers regarding determinations as to whether a subcontract item meets the definition of "commercial item" in Federal Acquisition Regulation (FAR) 2.101, Definitions.

DATES: Comments on the proposed rule must be submitted on or before November 13, 2001.

ADDRESSES: Respondents may submit comments directly on http://emissary.acq.osd.mil/dar/dfars.nsf/pubcomm; by e-mail to dfars@acq.osd.mil; to Defense Acquisition Regulations Council, Attn: Rick Layser, OUSD (AT&L) DP (DAR), IMD 3C132, 3062 Defense Pentagon, Washington, DC 20301-3062; or by fax to 703-602-0350. Cite DFARS Case 2000-D028 when submitting comments.

FOR FURTHER INFORMATION CONTACT: Rick Layser, 703-602-0293.

SUPPLEMENTAL INFORMATION: To clarify the contractor's and administrative contracting officer's responsibilities with regard to whether a subcontract item meets the definition of "commercial item" in FAR 2.101, this proposed rule would add the following:

• DFARS 244.303, Extent of Review, which would require the administrative contracting officer, when conducting a contractor purchasing system review, to "review the adequacy of rationale documenting commercial item determinations to ensure compliance with the definition of 'commercial item' in FAR 2.101."
  
  
• DFARS 244.402, Policy Requirements, which would require contractors to "determine whether a particular subcontract item meets the definition of a commercial item...Contractors are expected to exercise reasonable business judgment in making such determinations, consistent with the guidelines for conducting market research in FAR Part 10 [Market Research]."

FOR FURTHER INFORMATION CONTACT: Panoptic Enterprises at 703-451-5953 or by e-mail to Panoptic@FedGovContracts.com.

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