Public Comments 2007-D020-K. Capitano

Hi DFARS Police, I am sorry I missed your official comment period for the proposed rule related to DFARS Case 2007–D020, so please consider this unofficial food for thought. I noticed that you are proposing to change the DFARS to eliminate DFARS 245.5, including DFARS 245.505-3. DFARS 245.505-3 provides specific direction to government and contractor personnel allowing DoD contractors to commingle their inventories for economies of scale and use a single process for material management and accounting when compliant with the DFARS MMAS regulations , ie. when they have adequate controls. This provision when coupled with DFARS 252.242-7004(e)(9), allows contractors to commingle without any specific US Government official's permission unless they have been found to be non-compliant with the MMAS. By removing DFARS 245.505-3, the DFARS 252.242-7004(e)(9) commingling is no longer supported by specific DFARS government property guidance. It appears to me that it can now only be done if approved by the Property Administrator in accordance with the new FAR 52-245-1(f)(1)(viii)(B). Consequently, without specific DoD DFARS guidance in DFARS 245 providing for commingling, it seem to me that all DoD contractors who now commingle their inventories and have not received permission from their Property Administrator, that was never required before, will have inadequate government property systems the moment your new rule becomes effective, as none of them have specific Property Administrator permission. Perhaps inclusion of the present wording at DFARS 245.505-3 somewhere in the revised DFARS rule would make it clear DoD contractors may commingle when MMAS compliant, and help alleviate any undesirable consequences. Ki Capitano Capitano Consulting 703-354-7473