[Federal Register: April 13, 2000 (Volume 65, Number 72)]
[Proposed Rules]               
[Page 19865-19866]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]



48 CFR Part 204

[DFARS Case 2000-D002]

Defense Federal Acquisition Regulation Supplement; Closeout of 
Foreign Military Sales Contract Line Items

AGENCY: Department of Defense (DoD).

ACTION: Proposed rule with request for comments.


SUMMARY: The Acting Director of Defense Procurement is proposing to 
amend Defense Federal Acquisition Regulation Supplement (DFARS) policy 
pertaining to closeout of contract files. The amendments would
expedite the closeout of Foreign Military Sales (FMS) contract line
items, under contracts that contain both FMS and non-FMS items, by
permitting closeout of the FMS line items as soon as the closeout
requirements for those line items are satisfied.

DATES: Comments on the proposed rule should be submitted in writing to 
the address specified below on or before June 12, 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 Regulation Council, Attn: Ms. 
Melissa Rider, PDUSD (AT&L) DP (DAR), IMD 3D139, 3062 Defense
Pentagon, Washington, DC 20301-3062. Telefax (703) 602-0350.
    E-mail comments submitted via the Internet should be addressed to: 
    Please cite DFARS Case 2000-D002 in all correspondence related to 
this proposed rule. E-mail correspondence should cite DFARS Case 2000-
D002 in the subject line.

FOR FURTHER INFORMATION CONTACT: Ms. Melissa Rider, (703) 602-4245.


A. Background

    This proposed rule amends the contract closeout policy at DFARS 
204.804 to specify that, if a contract includes FMS contract line
items and non-FMS contract line items, the FMS line items should be
closeout as soon as the closeout requirements for those line items are 
satisfied. This change is proposed as part of a DoD initiative to 
improve the FMS process.
    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
rule only affects the timing of the administrative matter of closing
out contract line items. Therefore, an initial regulatory flexibility 
analysis has not been performed. Comments are invited from small 
businesses and other interested parties. Comments from small entities 
concerning the affected DFARS subpart also will be considered in 
accordance with 5 U.S.C. 610. Such comments should be submitted 
separately and should cite DFARS Case 2000-D002.

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

List of Subjects in 48 CFR Part 204

    Government procurement.

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

    Therefore, 48 CFR part 204 is proposed to be amended as follows:
    1. The authority citation for 48 CFR part 204 continues to read as 

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

[[Page 19866]]


    2. Section 204.804 is amended by revising the introductory text to 
read as follows:

204.804  Closeout of contract files.

    Normally, the closeout date for contract files is the date in
Block 9d on the DD Form 1594, Contract Completion Statement, or in
columns 59-65 on the PK9. However, if the contract includes Foreign
Military Sales (FMS) contact line items and non-FMS contract line
items, the FMS contract line items should be closed out as soon as the
closeout requirements for those line items are satisfied in accordance
with FAR 4.804. If the contracting office must do a major closeout
action that will take longer than 3 months after the date shown in
Block 9d of the DD Form 1594, or in columns 59-65 of the PK9-
* * * * *
[FR Doc. 00-9083 Filed 4-12-00; 8:45 am]