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Barry McVay's FEDERAL CONTRACTS DISPATCH

DATE: January 13, 2000

FROM: Barry McVay, CPCM

SUBJECT: Defense Federal Acquisition Regulation Supplement (DFARS); Transportation Acquisition Policy

SOURCE: Federal Register, January 13, 2000, Vol. 65, No. 9, page 2104

AGENCIES: Department of Defense (DOD)

ACTION: Proposed Rule

SYNOPSIS: DOD is proposing to amend DFARS Part 247, Transportation, to revise its policy pertaining to the acquisition of transportation, transportation-related services, and transportation in supply contracts.

DATES: Submit comments on or before March 13, 2000.

ADDRESSES: Submit comments to Defense Acquisition Regulations Council, Attn: Ms. Amy Williams, PDUSD (AT&L)DP (DAR), IMD 3D139, 3062 Defense Pentagon, Washington, DC 20301-3062; fax: 703-602-0350; e-mail: dfars@acq.osd.mil. Cite DFARS Case 99-D009 in all correspondence related to this proposed rule.

FOR FURTHER INFORMATION CONTACT: Ms. Amy Williams, 703-602-0288.

SUPPLEMENTAL INFORMATION: This proposed rule would implement a January 15, 1998, policy memorandum issued by the Under Secretary of Defense (Acquisition, Technology and Logistics) on Transportation Acquisition Policy (the memorandum is available on the Internet at http://www.acq.osd.mil/log/tp/trans_programs/defense_trans_library/tp_library.html).

For contracts for transportation or transportation-related services, the proposed rule would state that contracting officers should consider using, as evaluation factors or subfactors, the offeror's record of claims involving loss or damage, provider availability, and support for DOD readiness programs such as the Civil Reserve Air Fleet (CRAF) and the Voluntary Intermodal Sealift Agreement (VISA) (proposed new DFARS 247.206, Preparation of Solicitations and Contracts).

For contracts that include a significant requirement for transportation of items outside the continental United States, the proposed rule would require the use of an evaluation factor or subfactor that favors suppliers, third-party logistics providers, and integrated logistics managers that commit to using carriers that participate in one of the readiness programs such as CRAF and VISA (proposed new DFARS 247.301-71, Evaluation Factor or Subfactor).

Also, the proposed rule would update references (particularly in DFARS Subpart 242.14, Traffic and Traffic Management), organizational names and addresses, and make other editorial changes.

The following are some of the other significant changes that would be made by this proposed rule:

• DFARS Subpart 212.6, Streamlined Procedures for Evaluation and Solicitation for Commercial Items, would be added. It would consist of DFARS 212.602, Streamlined Evaluation of Offers, which would cross-reference DFARS 247.206, DFARS 247.301-71, and DFARS 247.572-1, Ocean Transportation Incidental to a Contract for Supplies, Services, or Construction.
  
  
• DFARS 247.001, Definitions, would be added. It would include definitions of CRAF and VISA.
  
  
• DFARS 247.103, Transportation Documentation and Audit Regulation (DTA), would be removed.
  
  
• DFARS 247.104-3, Cost-Reimbursement Contracts, would be removed (it refers to government rate tenders under Section 10721 of the Interstate Commerce Act).
  
  
• DFARS 247.104-5, Citation of Government Rate Tenders, would replace the reference to "Section XI, Chapter 32 of the Defense Traffic Management Regulations" with "DOD 4500.9-R, Defense Transportation Regulation, Part II, Chapter 206".
  
  
• Paragraph (a)(iii)(D) of DFARS 247.105, Transportation Assistance, would revise the points of contact for assistance with international shipments between points outside the continental United States (CONUS).
  
  
• New DFARS 247.301-70, Definition, would state that "'Integrated logistics managers' or 'third-party logistics providers' means providers of multiple logistics services."
  
  
• Paragraph (a) of DFARS 247.570, Scope [of Subpart 247.5, Ocean Transportation by U.S.-Flag Vessels], would be revised to add the current paragraph (d) of DFARS 247.571, Policy, which states that the Cargo Preference Act of 1904 "does not apply to ocean transportation of (1) products obtained for contributions to foreign assistance programs; or (2) products owned by agencies other than DOD." DFARS 247.571(d) would be deleted.
  
  
• DFARS 247.571(a) would permit the Secretary of the Army, along with the Secretary of the Navy, to exempt the transport of supplies from the requirement to use U.S.-flag vessels if he or she determines that the freight charged is excessive or unreasonable.
  
  
• In paragraph (a) of DFARS 247.572-1, Ocean Transportation Incidental to a Contract for Supplies, Services, or Construction, the statement "effective May 1, 1996, this subsection does not apply to contracts for the acquisition of commercial items or commercial products" would be removed. Also, in paragraph (d)(3)(i)(A), added to the statement that "the 1904 Act is, in part, a subsidy of the U.S.-flag commercial shipping industry that recognizes that lower prices may be available from foreign shippers" would be added the following: "Therefore, a lower price for use of a foreign-flag vessel is not a sufficient basis, on its own, to determine that the freight rate proposed by the U.S.-flag carrier is excessive or otherwise unreasonable. However, such a price differential may indicate a need for further review..."
  
  
• Paragraph (a) of DFARS 252.247-7000, Hardship Conditions, would be amended to add that the contractor shall notify the contracting officer of unusual ship, dock, or cargo conditions associated with loading or unloading a particular cargo "in advance of work, if feasible, but not later than the time of sailing." Also, paragraph (c) would be amended to add that "the Contractor shall submit hardship claims to the Contracting Officer within ten working days of the vessel sailing time."
  
  
• DFARS 252.247-7003, Termination, would be removed.
  
  
• In DFARS 252.247-7020, Additional Services, the terms "Interstate Commerce Commission" and "state regulatory bodies" would be removed from the sentence, "The Contractor shall provide additional services not included in the schedule, but required for satisfactory completion of the services ordered under this contract, at a rate comparable to the rate for like services as contained in tenders on file with the Interstate Commerce Commission, state regulatory bodies, or the Military Traffic Management Command, in effect at time of order."

FOR FURTHER INFORMATION CONTACT: Barry McVay at 703-451-5953 or by e-mail to BarryMcVay@FedGovContracts.com.

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