00-767. Defense Federal Acquisition Regulation Supplement; Production Surveillance and Reporting

[Federal Register Volume 65, Number 9 (Thursday, January 13, 2000)]
[Proposed Rules]
[Pages 2109-2110]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-767]


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DEPARTMENT OF DEFENSE

48 CFR Parts 242 and 253

[DFARS Case 99-D026]


Defense Federal Acquisition Regulation Supplement; Production 
Surveillance and Reporting

AGENCY: Department of Defense (DoD).

ACTION: Proposed rule with request for comments.

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SUMMARY: The Acting Director of Defense Procurement is proposing to 
amend the Defense Federal Acquisition Regulation Supplement (DFARS) to 
revise the criteria for determining the degree of production 
surveillance needed for DoD contracts and to delete obsolete forms. The 
rule requires contract administration offices to conduct a risk 
assessment of each contractor to determine the degree of production 
surveillance needed.

DATES: Comments on the proposed rule should be submitted in writing to 
the address shown below on or before March 13, 2000, to be considered 
in the formation of the final rule.

ADDRESSES: Interested parties should submit written comments on the 
proposed rule to: Defense Acquisition Regulations Council, Attn: Mr. 
Rick Layser, PDUSD(AT&L)DP(DAR), IMD 3D139, 3062 Defense Pentagon, 
Washington, DC 20301-3062. Telefax [phone].
    E-mail comments submitted via the Internet should be addressed to: 
[e-mail]
    Please cite DFARS Case 99-D026 in all correspondence related to 
this proposed rule. E-mail correspondence should cite DFARS Case 99-
D026 in the subject line.

FOR FURTHER INFORMATION CONTACT:
Mr. Rick Layser, [phone].

SUPPLEMENTARY INFORMATION:

A. Background

    This rule proposes the following changes to the DFARS:
    1. Elimination of the requirement at 242.1104 for contract 
administration offices to perform pre-delivery on-site production 
surveillance for certain categories of contracts. The rule instead 
requires contract administration offices to conduct a risk assessment 
of each contractor to determine the degree of production surveillance 
needed for contracts awarded to that contractor.
    2. Deletion of an obsolete reference to cost/schedule control 
system requirements at 242.1106(a).
    3. Deletion of DD Form 375, Production Progress Report; DD Form 
375c, Production Progress Report (Continuation); DD Form 375-2, Delay 
in Delivery; and the prescription for their use at 242.1106(c). 
Production progress reporting presently is accomplished through use of 
an automated computer system (ALERTS).
    This rule was not subject to Office of Management and Budget review 
under Executive Order 12866, dated September 30, 1993.

B. Regulatory Flexibility Act

    The proposed rule is not expected to have a significant economic 
impact on a substantial number of small entities within the meaning of 
the Regulatory Flexibility Act, 5 U.S.C. 601, et seq., because the 
proposed changes primarily affect the allocation of Government 
resources to production surveillance functions. Therefore, DoD has not 
performed an initial regulatory flexibility analysis. DoD invites 
comments from small businesses and other interested parties. DoD also 
will consider comments from small entities concerning the affected 
DFARS subparts in accordance with 5 U.S.C. 610. Such comments should be 
submitted separately and should cite FARS Case 99-D026.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the rule does 
not impose any information collection requirements that require the 
approval

[[Page 2110]]

of the Office of Management and Budget under 44 U.S.C. 3501, et seq.

List of Subjects in 48 CFR Parts 242 and 253

    Government procurement.
Michele P. Peterson,
Executive Editor, Defense Acquisition Regulations Council.

    Therefore, DoD proposes to amend 48 CFR Parts 242 and 253 as 
follows:
    The authority citation for 48 CFR, Parts 242 and 253 continues to 
read as follows:

    Authority: 41 U.S.C. 421 and 48 CFR Chapter 1.

PART 242--CONTRACT ADMINISTRATION AND AUDIT SERVICES

    2. Section 242.1104 is revised to read as follows:


242.1104  Surveillance requirements.

    (a) The cognizant contract administration office (CAO) must--
    (i) Conduct a risk assessment of each contractor to determine the 
degree of production surveillance needed for contracts awarded to that 
contractor;
    (ii) Develop a contract production surveillance plan based on the 
risk level determined during the risk assessment. The risk assessment 
must consider information provided by the contractor and the 
contracting office; and
    (iii) Monitor contract progress and identify potential contract 
delinquencies in accordance with the contract surveillance plan.
    3. Section 242.1106 is revised to read as follows:


242.1106  Reporting requirements.

    (a) See DoD 5000.2-R, Mandatory Procedures for Major Defense 
Acquisition Programs (MDAPs) and Major Automated Information System 
(MAIS) Acquisition Programs.
    (b)(i) Within four working days after receipt of the contractor's 
report, the CAO must provide the report and any required comments to 
the contracting officer and, unless otherwise specified in the 
contract, the inventory control manager.
    (ii) If the contractor's report indicates that the contract is on 
schedule and the CAO agrees, the CAO does not need to add further 
comments. In all other cases, the CAO must add comments and recommend a 
course of action.

PART 253--FORMS

    4. The note at the end of Part 253 is amended by removing the 
following entries:

``253.303-375  Production Progress Report.
253.303-375c  Production Progress Report (Continuation).
253.303-375-2  Delay in Delivery.''

[FR Doc. 00-767 Filed 1-12-00; 8:45 am]
BILLING CODE 5000-04-M