98-2924. Defense Federal Acquisition Regulation Supplement; Warranties in Weapon System Acquisitions

[Federal Register Volume 63, Number 25 (Friday, February 6, 1998)]
[Rules and Regulations]
[Page 6109]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-2924]


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DEPARTMENT OF DEFENSE

48 CFR Part 246

[DFARS Case 97-D326]


Defense Federal Acquisition Regulation Supplement; Warranties in 
Weapon System Acquisitions

AGENCY: Department of Defense (DoD).

ACTION: Final rule.

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SUMMARY: The Director of Defense Procurement has issued a final rule 
amending the Defense Federal Acquisition Regulation Supplement (DFARS) 
to implement Section 847 of the National Defense Authorization Act for 
Fiscal Year 1998. Section 847 repealed the requirement for contractor 
guarantees on major weapon systems.

EFFECTIVE DATE: February 6, 1998.

FOR FURTHER INFORMATION CONTACT:
Rick Layser, PDUSD(A&T)DP(DAR), IMD 3D139, 3062 Defense Pentagon, 
Washington, DC 20301-3062. Telephone [phone]. Telefax (703) 602-
0350. Please cite DFARS Case 97-D326.

SUPPLEMENTARY INFORMATION: 

A. Background

    Section 847 of the National Defense Authorization Act for Fiscal 
Year 1998 (Pub. L. 105-85) repealed 10 U.S.C. 2403, which required 
contractor guarantees on major weapon systems. This final rule removes 
the DFARS language that implemented 10 U.S.C. 2403.

B. Regulatory Flexibility Act

    The final rule does not constitute a significant revision within 
the meaning of FAR 1.501 and Public Law 98-577 and publication for 
public comment is not required. However, comments from small entities 
concerning the affected DFARS subpart will be considered in accordance 
with 5 U.S.C. 610. Such comments should cite DFARS Case 97-D326 in 
correspondence.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the final rule 
imposes no information collection requirements that require the 
approval of the Office of Management and Budget under 44 U.S.C. 3501, 
et seq.

List of Subjects in 48 CFR Part 246

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

    Therefore, 48 CFR Part 246 is amended as follows:
    1. The authority citation for 48 CFR Part 246 continues to read as 
follows:

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

PART 246--QUALITY ASSURANCE

    2. Section 246.703 is revised to read as follows:


246.703  Criteria for use of warranties.

    (b) Cost. Contracting officers may include the cost of a warranty 
as part of an item's price or as a separate contract line item.


246.704  [Amended]

    3. Section 246.704 is amended by removing paragraph (1) and 
redesignating paragraphs (2) through (5) as paragraphs (1) through (4), 
respectively.


246.770 through 246.770-8  [Removed].

    4. Sections 246.770 through 246.770-8 are removed.

[FR Doc. 98-2924 Filed 2-5-98; 8:45 am]
BILLING CODE 5000-04-M