DATE: February 22, 2005
SUBJECT: Defense Federal Acquisition Regulation Supplement (DFARS); Utility Rates Established by Regulatory Bodies
SOURCE: Federal Register, February 22, 2005, Vol. 70, No. 34, page 8565
AGENCIES: Department of Defense (DOD)
ACTION: Proposed Rule
SYNOPSIS: DOD is proposing to amend DFARS Part 241, Acquisition of Utility Services, to update text pertaining to utility rates established by independent and nonindependent regulatory bodies.
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).
For more on the DFARS transformation, see the February 11, 2003, FEDERAL CONTRACTS DISPATCH "Defense Federal Acquisition Regulation Supplement (DFARS) Transformation"). 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."
DATES: Comments on the proposed rule should be submitted on or before April 25, 2005.
ADDRESSES: Respondents may submit comments directly on the Federal eRulemaking Portal at http://www.regulations.gov; on the web site at http://emissary.acq.osd.mil/dar/dfars.nsf/pubcomm; by e-mail to: firstname.lastname@example.org; by fax to 703-602-0350; by mail to Defense Acquisition Regulations Council, Attn: Michele Peterson, OUSD(AT&L)DP(DAR), IMD 3C132, 3062 Defense Pentagon, Washington, DC 20301-3062; or by courier/hand to Defense Acquisition Regulations Council, Crystal Square 4, Suite 200A, 241 18th Street, Arlington, VA 22202-3402. Cite "DFARS Case 2003-D096" when making comments on this proposed rule.
FOR FURTHER INFORMATION CONTACT: Michele Peterson, 703-602-0311.
SUPPLEMENTARY INFORMATION: In response to the DFARS Transformation initiative, DOD is proposing to revise DFARS Part 241 to clarify that utility rates established by independent regulatory bodies may be relied upon as fair and reasonable, and to clarify requirements for use of contract clauses addressing changes in rates for regulated and unregulated utility services. The following are the changes being proposed to DFARS Part 241:
“(d)(1) Use a clause substantially the same as the clause at FAR 52.241-7, Change in Rates or Terms and Conditions of Service for Regulated Services, when the utility services to be provided are subject to an independent regulatory body.
“(2) Use a clause substantially the same as the clause at FAR 52.241-8, Change in Rates or Terms and Conditions of Service for Unregulated Services, when the utility services to be provided are not subject to a regulatory body or are subject to a nonindependent regulatory body.”
FOR FURTHER INFORMATION CONTACT: Panoptic Enterprises at 703-451-5953.
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