DATE: March 16, 2000

FROM: Barry McVay, CPCM

SUBJECT: DFARS; Cargo Preference -- Subcontracts for Commercial Items

SOURCE: Federal Register, March 16, 2000, Vol. 65, No. 52, page 14400

AGENCIES: Department of Defense (DOD)

ACTION: Final Rule

SYNOPSIS: DOD is amending the Defense Federal Acquisition Regulation Supplement (DFARS) to clarify requirements for use of U.S. vessels under subcontracts for commercial items.

EFFECTIVE DATE: March 16, 2000.

FOR FURTHER INFORMATION CONTACT: Ms. Amy Williams, Defense Acquisition Regulations Council, PDUSD (AT&L) DP (DAR), IMD 3D139, 3062 Defense Pentagon, Washington, DC 20301-3062; 703-602-0288; fax: 703-602-0350. Cite DFARS Case 98-D014.

SUPPLEMENTAL INFORMATION: 10 U.S.C. 2631 provides a preference for the use of U.S. vessels for ocean transportation of supplies purchased under DOD contracts. DFARS Part 212, Acquisition of Commercial Items, and DFARS Part 247, Transportation, waive the requirements of 10 U.S.C. 2631 for subcontracts for the acquisition of commercial items. This rule amends DFARS Parts 212 and 247 and the corresponding clauses in DFARS Part 252 to limit the types of subcontracts to which the waiver of 10 U.S.C. 2631 apply. The rule is intended to ensure compliance with 10 U.S.C. 2631 for ocean cargoes clearly destined for DOD use.

DOD published a proposed rule on June 22, 1999, and received comments from nine sources. Based on those comments, several changes have been made to the final rule, as indicated.

The following are the changes being made to the DFARS by this final rule: