DATE: April 23, 2004

SUBJECT: Defense Federal Acquisition Regulation Supplement (DFARS); Small Disadvantaged Businesses and Leader Company Contracting

SOURCE: Federal Register, April 23, 2004, Vol. 69, No. 79, page 21996

AGENCIES: Department of Defense (DOD)

ACTION: Proposed Rule

SYNOPSIS: It is proposed that DFARS Subpart 217.4, Leader Company Contracting, be removed, and DFARS 219.705-4, Reviewing the Subcontracting Plan, be revised to lower the approval level for small business subcontracting plans that contain a small disadvantaged business goal of less than 5%.

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 Federal Acquisition Regulation (FAR) authorities, deviations from 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).

On February 23, 2004, the first fourteen proposed changes implementing the DFARS Transformation were published (see the February 23, 2004, FEDERAL CONTRACTS DISPATCHES for more information on the proposed changes, particularly the one titled "Defense Federal Acquisition Regulation Supplement (DFARS); Procedures, Guidance, and Information").

In addition to this proposed rule, another proposed rule published today would implement the DFARS Transformation -- see today's FEDERAL CONTRACTS DISPATCH "Defense Federal Acquisition Regulation Supplement (DFARS); Threshold for Small Business Specialist Review."

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

DATES: Comments on the proposed rule must be submitted on or before June 22, 2004.

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 web site or by e-mail may submit comments to Defense Acquisition Regulations Council, Attn: Karen Fischetti, OUSD(AT&L)DP(DAR), IMD 3C132, 3062 Defense Pentagon, Washington, DC 20301-3062, or by fax to 703-602-0350. Cite "DFARS Case 2003-D092" when making comments on this proposed rule.

FOR FURTHER INFORMATION CONTACT: Karen Fischetti, 703-602-0288.

SUPPLEMENTAL INFORMATION: This proposed rule would make the following changes to the DFARS:

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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