DATE: August 17, 2000

FROM: Barry McVay, CPCM

SUBJECT: Defense Federal Acquisition Regulation Supplement (DFARS); Transportation Acquisition Policy

SOURCE: Federal Register, August 17, 2000, Vol. 65, No. 160, page 50143

AGENCIES: Department of Defense (DOD)

ACTION: Final Rule

SYNOPSIS: DOD is amending DFARS Part 247, Transportation, and other related portions to revise DOD's policy pertaining to the acquisition of transportation, transportation-related services, and transportation in supply contracts, particularly to provide for the use of evaluation factors that address support for DOD readiness programs, such as the Civil Reserve Air Fleet (CRAF) and the Voluntary Intermodal Sealift Agreement (VISA).

EDITOR'S NOTE: For more on the proposed rule, see the January 13, 2000, FEDERAL CONTRACTS DISPATCH "Defense Federal Acquisition Regulation Supplement (DFARS); Transportation Acquisition Policy."

The January 18, 1998, memorandum from the Under Secretary of Defense (Acquisition and Technology) is available on the Internet at http://www.acq.osd.mil/log/tp/trans_programs/defense_trans_library/aqpol/aqpol.html.

EFFECTIVE DATE: August 17, 2000.

FOR FURTHER INFORMATION CONTACT: Amy Williams, Defense Acquisition Regulations Council, OUSD(AT&L)DP(DAR), IMD 3D139, 3062 Defense Pentagon, Washington, DC 20301-3062; 703-602-0288; fax: 703-602-0350. Cite DFARS Case 99-D009 in all correspondence related to this rule.

SUPPLEMENTAL INFORMATION: On January 15, 1998, Under Secretary of Defense (Acquisition and Technology) Jacques Gansler issued a memorandum forwarding revised "Transportation Acquisition Policy". It stated that DOD policy is that "the acquisition of all transportation and related services shall fulfill customer intermodal movement requirements from origin to destination. The acquisition of all transportation and related services shall be accomplished using best commercial practices and 'best value' evaluation procedures, and shall include performance-based specifications, as applicable. When appropriate, these specifications may include incentives to encourage commercial entities to exceed performance criteria."

On January 13, 2000, DOD published a proposed revision to the DFARS to implement the January 15, 1998, memorandum. For transportation or transportation-related services contracts, the rule proposed that contracting officers should consider using, as evaluation factors or subfactors, the offeror's record of claims involving loss or damage, provider availability, and support for DOD readiness programs such as the CRAF and the VISA (proposed new DFARS 247.206, Preparation of Solicitations and Contracts). For contracts that include a significant requirement for transportation of items outside the continental United States, the rule proposed a requirement that an evaluation factor or subfactor be used that favors suppliers, third-party logistics providers, and integrated logistics managers that commit to using carriers that participate in one of the readiness programs such as the CRAF and the VISA (proposed new DFARS 247.301-71, Evaluation Factor or Subfactor). Seven commentors responded to the proposed rule, and DOD is finalizing the proposed rule with minor editorial changes.

The following are some of the other significant changes that are being made by this final rule:

FOR FURTHER INFORMATION CONTACT: Barry McVay at 703-451-5953 or by e-mail to BarryMcVay@FedGovContracts.com.

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