DATE: November 10, 2004

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

SOURCE: Federal Register, November 10, 2004, Vol. 69, No. 217, page 65089

AGENCIES: Department of Defense (DOD)

ACTION: Final Rule

SYNOPSIS: DOD is removing DFARS 212.303, Contract Format, which is considered unnecessary.

EDITOR'S NOTE: 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).

Additional information on the DFARS Transformation initiative is available at http://www.acq.osd.mil/dpap/dfars/transf.htm.

For more on the PGI, see the November 1, 2004, FEDERAL CONTRACTS DISPATCH "Defense Federal Acquisition Regulation Supplement (DFARS); Procedures, Guidance, and Information."

For more on the proposed rule being finalized, see the June 8, 2004, FEDERAL CONTRACTS DISPATCH "Defense Federal Acquisition Regulation Supplement (DFARS); Acquisition of Commercial Items."

EFFECTIVE DATE: November 10, 2004.

FOR FURTHER INFORMATION CONTACT: Robin Schulze, Defense Acquisition Regulations Council, OUSD(AT&L)DPAP(DAR), IMD 3C132, 3062 Defense Pentagon, Washington, DC 20301-3062; 703-602-0326; fax: 703-602-0350.

SUPPLEMENTARY INFORMATION: In response to the DFARS Transformation initiative, DOD published a proposed rule on June 8, 2004, that would delete DFARS 212.303, which unnecessarily addresses the structuring of contracts for commercial items. DFARS 212.303 stated:

"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."

No comments were received on the proposed rule, so DOD is adopting the proposed rule as final without change.

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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