DATE: August 21, 2003

SUBJECT: Defense Federal Acquisition Regulation Supplement (DFARS); Production Surveillance and Reporting

SOURCE: Federal Register, August 21, 2003, Vol. 68, No. 162, page 50495

AGENCIES: Department of Defense (DOD)

ACTION: Proposed Rule

SYNOPSIS: DOD is proposing to amend DFARS 242.1104, Surveillance Requirements, to eliminate requirements for contract administration offices to perform production surveillance on contractors that have only Criticality Designator C (low-urgency) contracts.

EDITOR'S NOTE: The "criticality designators" assigned to most contracts are described in Federal Acquisition Regulation (FAR) 42.1105, Assignment of Criticality Designator.

DATES: Comments on this proposed rule must be submitted on or before October 20, 2003.

ADDRESSES: Respondents may submit comments directly on the web site at http://emissary.acq.osd.mil/dar/dfars.nsf/pubcomm. As an alternative, respondents may e-mail comments to: dfars@acq.osd.mil. Also, respondents who cannot submit comments through the website or by e-mail may submit comments to Defense Acquisition Regulations Council, Attn: Teresa Brooks, OUSD(AT&L)DP(DAR), IMD 3C132, 3062 Defense Pentagon, Washington, DC 20301-3062, or by fax to 703-602-0350. Cite "DFARS Case 2002-D015" when making comments on this proposed rule.

FOR FURTHER INFORMATION CONTACT: Steven Cohen, 703-602-0293.

SUPPLEMENTAL INFORMATION: DFARS 242.1104 requires the contract administration office to conduct a periodic risk assessment of each contractor to determine the degree of production surveillance needed for contracts awarded to that contractor, and to develop a production surveillance plan based on the risk level determined during the risk assessment.

This proposed rule would revise DFARS 242.1104 to eliminate requirements for production surveillance on contractors that have only Criticality Designator C (low-urgency) contracts, and for the monitoring of progress on any Criticality Designator C contract, unless production surveillance or contract monitoring is specifically requested by the contracting officer. This proposed change would enable contract administration offices to use production surveillance resources in a more effective manner.

DFARS 242.1104(a) would be revised to specify that the contract administration office "(i) shall perform production surveillance on all contractors that have Criticality Designator A or B contracts; [and] (ii) shall not perform production surveillance on contractors that have only Criticality Designator C contracts, unless specifically requested by the contracting officer..."

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

Copyright 2003 by Panoptic Enterprises. All Rights Reserved.

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