[Federal Register Volume 61, Number 113 (Tuesday, June 11, 1996)]
[Notices]
[Page 29539]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-14713]
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DEPARTMENT OF DEFENSE
Notice of Determination of Need
AGENCY: Department of Defense (DoD).
SUMMARY: The Director of Defense Procurement has determined that a need
exists to facilitate the private financing of defense contracts,
particularly contracts to be performed by small businesses, by using
provisions precluding reductions or setoffs in defense contracts
containing the Assignment of Claims clause when claims have been
assigned.
EFFECTIVE DATE: June 11, 1996.
FOR FURTHER INFORMATION CONTACT: Mr. John Galbraith, (703) 697-6710.
SUPPLEMENTARY INFORMATION: Section 2451 of the Federal Acquisition
Streamlining Act of 1994 amended Section 3737 of the Revised Statutes
(41 U.S.C. 15) to authorize use of ``no-setoff'' provisions in
contracts authorizing contractor assignments of claims, upon a
determination of need. The President delegated the authority to make
these determinations of need to the Secretaries of Defense and Energy,
the Administrator of General Services, and the heads of all other
departments and agencies, and authorized further redelegation.
A provision in DoD contracts limiting reduction or setoff as
provided in Section 3737 of the Revised Statutes facilitates the use of
private financing of DoD contracts, and therefore facilitates the
participation of businesses, especially small businesses, in the
procurements of DoD thereby increasing competition in these
procurements, to the benefit of DoD.
Pursuant to the Presidential delegation dated October 3, 1995, the
Secretary of Defense delegation dated February 5, 1996, and the Under
Secretary of Defense for Acquisition and Technology delegation dated
February 23, 1996, the Director of Defense Procurement on May 10, 1996,
made the following determination and ordered its publication in the
Federal Register in accordance with the authorizing statute:
Determination of Need Under Section 3737 of the Revised Statutes
Pursuant to section 2451 of the Federal Acquisition Streamlining
Act of 1994, Public law 103-355 (41 U.S.C. 15), and in accordance with
the authority delegated to me by the Under Secretary of Defense for
Acquisition and Technology on February 23, 1996, I determine that a
need exists to facilitate the private financing of defense contracts,
particularly contracts to be performed by small businesses.
Consequently, any contract of the Department of Defense, except any
such contract under which full payment has been made, may provide or be
amended without consideration to provide that payments under such
contract shall not be subject to reduction or setoff.
Michele P. Peterson,
Executive Editor, Defense Acquisition Regulations Council.
[FR Doc. 96-14713 Filed 6-10-96; 8:45 am]
BILLING CODE 5000-04-M
