DATE: February 11, 2003

SUBJECT: Defense Federal Acquisition Regulation Supplement (DFARS) Transformation

SOURCE: DFARS Transformation website http://www.acq.osd.mil/dp/dars/transf.htm

AGENCIES: Department of Defense (DOD)

ACTION: Notice

SYNOPSIS: DOD has announced that it is planning on a "major transformation" of the DFARS by taking "a new look at the purpose and content of the DFARS and the process of creating and maintaining it. This is needed to improve the efficiency and effectiveness of the acquisition process and allow our acquisition workforce the flexibility to innovate."

DATES: Proposals must be submitted "in about 75 days" of the February 11 announcement, or by about April 28, 2003.

ADDRESSES: Submit proposals electronically on http://emissary.acq.osd.mil/dar/dfars_pubcom.nsf/pubcomm.

SUPPLEMENTAL INFORMATION: DOD is undertaking this "transformation" because "the DFARS is nearly 20 years old with the last major review conducted in the late 80s." This review is intended to determine "what value-based improvements and reductions to procurement policies, procedures, and processes we can make to the DFARS. The initiative will consider bold changes and will involve a coordinated effort by the services and other DOD components. We will also develop legislative proposals for consideration by the Congress for future changes to the DFARS."

"We've already determined that about 60% of the DFARS is driven by internal policies and procedures and not driven by statute or federal policies," DOD says on its "Frequently Asked Questions." "While many policies and procedures in the DFARS are sound, they may not always be the most effective approach for every situation and certainly do not required restrictive regulations in every case...We will eliminate or dramatically change parts of the regulation if, by doing so, it presents an opportunity to improve and strengthen the efficiency and effectiveness of acquisition processes, reduces unnecessary costs and administrative burdens for government and industry and creates an environment that fosters creative solutions to the unique challenges that face our acquisition workforce."

As an example of policy DOD considers unnecessary, it cites recent proposed "Improvements to our international acquisition policies...As an example, we replaced five separate Duty Free Entry clause with one simple clause which reduced the requirement for companies to provide detailed information to the government and eliminated the need for the government to evaluate that information in every case. The result of the entire rewrite was a 25% reduction in that section of the regulation." (EDITOR'S NOTE: For more on this example, see the October 7, 2002, FEDERAL CONTRACTS DISPATCH "Defense Federal Acquisition Regulation Supplement (DFARS); Foreign Acquisition.")

DOD, the public, and industry are invited to participate in this effort by submitting proposals for changes to http://emissary.acq.osd.mil/dar/dfars_pubcom.nsf/pubcomm. Commentors will be asked to identify the proposal, the recommended change, the rationale (consisting of a "value analysis that addresses the benefits of the proposal in terms of reduced cost, cycle time, administrative burden and/or enhanced clarity." The proposed changes to the DFARS produced by this effort will be published in the Federal Register for comment.

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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