[Federal Register: June 27, 2000 (Volume 65, Number 124)]
[Rules and Regulations]               
[Page 39722]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]



48 CFR Part 232

[DFARS Case 2000-D009]

Defense Federal Acquisition Regulation Supplement; Progress 
Payments for Foreign Military Sales Contracts

AGENCY: Department of Defense (DoD).

ACTION: Final rule.


SUMMARY: The Director of Defense Procurement has issued a final rule 
amending the Defense Federal Acquisition Regulation Supplement (DFARS) 
to clarify that DoD applies progress payments to contracts containing 
foreign military sales (FMS) requirements in the same manner that it 
applies progress payments to contracts containing DoD requirements.

EFFECTIVE DATE: June 27, 2000.

Acquisition Regulations Council, OUSD (AT&L) DP (DAR), IMD 3D139, 3062 
Defense Pentagon, Washington, DC 20301-3062. Telephone (703) 602-0289; 
telefax (703) 602-0350. Please cite DFARS Case 2000-D009.


A. Background

    This final rule amends DFARS Subpart 232.5, Progress Payments Based 
on Costs, to clarify that the application of customary progress 
payments is the same for both DoD and FMS contract requirements. The 
rule also makes editorial changes to update and simplify the text.
    This rule was not subject to Office of Management and Budget review 
under Executive Order 12866, dated September 30, 1993.

B. Regulatory Flexibility Act

    This 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, DoD will consider comments 
from small entities concerning the affected DFARS subpart in accordance 
with 5 U.S.C. 610. Such comments should cite DFARS Case 2000-D009.

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 232

    Government procurement.

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

    Therefore, 48 CFR Part 232 is amended as follows:
    1. The authority citation for 48 CFR Part 232 continues to read as 

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


    2. Sections 232.501--1 and 232.501-2 are revised to read as 

232.501-1  Customary progress payment rates.

    (a) The customary uniform progress payment rates for DoD contracts, 
including contracts that contain foreign military sales (FMS) 
requirements, are 75 percent for large businesses, 90 percent for small 
businesses, and 95 percent for small disadvantaged businesses.

232.501-2  Unusual progress payemnts.

    (a) Unusual progress payment arrangmeents require the advance 
approval of the Director of Defense Procurment, Office of the Under 
Secretary of Defense (Acquisition, Technology, and Logistics) (OUSD 
(AT&L) DP). Contracting officers must submit all unusual progress 
payment requests to the department or agency contract financing office 
for approval, coordination with the Contract Finance Committee (see 
232.071), and submission to OUSD (AT&L) DP.

232.501-3  [Amended]

    3. Section 232.501-3 is amended in paragraph (b) introductory text 
in the second sentence by removing the word ``shall'' and adding in its 
place the word ``must''.

232.502-1-70  [Removed]

    4. Section 232.502-1-70 is removed.

    5. Section 232.502-4-70 is amended by revising paragraph (a) to 
read as follows:

232.502-4-70  Additional clauses.

    (a) Use the clause at 252.232-7002, Progress Payments for Foreign 
Military Sales Acquisitions, in solicitations and contracts that--
    (i) Contain FMS requirements; and
    (ii) Provide for progress payments.
* * * * *

232.503-6  [Amended]

    6. Section 232.503-6 is amended in paragraph (g)(i) by removing the 
word ``shall'' and adding in its place the word ``must''.

[FR Doc. 00-15817 Filed 6-26-00; 8:45 am]