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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); Production Surveillance and Reporting

SOURCE: Federal Register, January 13, 2000, Vol. 65, No. 9, page 2109

AGENCIES: Department of Defense (DOD)

ACTION: Proposed Rule

SYNOPSIS: DOD is proposing to amend DFARS 242.1104, Surveillance Requirements, to revise the criteria for determining the degree of production surveillance needed for DOD contracts, and to delete the obsolete DD Form 375, Production Progress Report, DD Form 375c, Production Progress Report (Continuation), and DD Form 375-2, Delay in Delivery.

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

ADDRESSES: Submit comments to Defense Acquisition Regulations Council, Attn: Mr. Rick Layser, 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-D026 in all correspondence related to this proposed rule.

FOR FURTHER INFORMATION CONTACT: Mr. Rick Layser, 703-602-0293.

SUPPLEMENTAL INFORMATION: This proposed rule would make the following changes:

• The requirement in DFARS 242.1104 for contract administration offices to perform pre-delivery on-site production surveillance for certain contracts would be replaced with a requirement that contract administration offices "(i) conduct a risk assessment of each contractor to determine the degree of production surveillance needed for contracts awarded to that contractor; (ii) develop a contract production surveillance plan based on the risk level determined during the risk assessment. The risk assessment must consider information provided by the contractor and the contracting office; and (iii) monitor contract progress and identify potential contract delinquencies in accordance with the contract surveillance plan."
  
  
• The reference in paragraph (a)(ii) of DFARS 242.1106, Reporting Requirements, to "cost/schedule control system requirements on major systems acquisitions, [see] 234.005-70" is deleted because the earned value management system (EVMS) has replaced the cost/schedule control system.
  
  The forms at DFARS 253.303-375, Production Progress Report, DFARS 253.303-375c, Production Progress Report (Continuation), and DFARS 253.303-375-2, Delay in Delivery, and their prescriptions at DFARS 242.1106(c) would be removed. Production progress reporting is now accomplished through an automated computer system called ALERTS.

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

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