DATE: June 8, 2004

SUBJECT: Defense Federal Acquisition Regulation Supplement (DFARS); Acquisition of Commercial Items

SOURCE: Federal Register, June 8, 2004, Vol. 69, No. 110, page 31939

AGENCIES: Department of Defense (DOD)

ACTION: Proposed Rule

SYNOPSIS: DOD is proposing to remove DFARS 212.303, Contract Format, because it is considered unnecessary.

DATES: Comments on the proposed rule must be submitted on or before August 9, 2004.

ADDRESSES: Submit comments, identified by "DFARS Case 2003-D074," to: (1) http://www.regulations.gov; (2) http://emissary.acq.osd.mil/dar/dfars.nsf/pubcomm; (3) e-mail: dfars@osd.mil; fax: 703-602-0350; (4) mail: Defense Acquisition Regulations Council, Attn: Teresa Brooks, OUSD (AT&L) DPAP (DAR), IMD 3C132, 3062 Defense Pentagon, Washington, DC 20301-3062; (5) hand-delivery/courier: Defense Acquisition Regulations Council, Crystal Square 4, Suite 200A, 241 18th Street, Arlington, VA 22202-3402.

FOR FURTHER INFORMATION CONTACT: Teresa Brooks, 703-602-0326.

SUPPLEMENTARY INFORMATION: On February 11, 2003, DOD announced plans for conducting a "major transformation" of the DFARS (see the February 11, 2003, FEDERAL CONTRACTS DISPATCH "Defense Federal Acquisition Regulation Supplement (DFARS) Transformation"). The objective of the DFARS transformation is to improve the efficiency and effectiveness of the acquisition process while allowing the acquisition workforce the flexibility to innovate. The transformed DFARS will contain only requirements of law, DOD-wide policies, delegations of FAR authorities, deviations from Federal Acquisition Regulation (FAR) requirements, and policies and procedures that have a significant effect beyond the internal operating procedures of DOD or a significant cost or administrative impact on contractors or offerors. All mandatory and non-mandatory internal DOD procedures, non-mandatory guidance, and supplemental information will be contained in the DFARS companion document, the "Procedures, Guidance, and Information" (PGI) (for more on the PGI, see the February 23, 2004, FEDERAL CONTRACTS DISPATCH "Defense Federal Acquisition Regulation Supplement (DFARS); Procedures, Guidance, and Information").

This proposed rule is a result of the DFARS Transformation initiative. The proposed rule would delete DFARS 212.303 which unnecessarily addresses the structuring of contracts for commercial items. DFARS 212.303 states:

"Structure awards valued above the micro-purchase threshold (e.g., contract line items, delivery schedule, and invoice instructions) in a manner that will minimize the generation of invoices valued at or below the micro-purchase threshold."

EDITOR'S NOTE: Additional information on the DFARS Transformation initiative is available at http://www.acq.osd.mil/dp/dars/transf.htm.

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

Copyright 2004 by Panoptic Enterprises. All Rights Reserved.

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