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Barry McVay's FEDERAL CONTRACTS DISPATCH

DATE: May 22, 2000

FROM: Barry McVay, CPCM

SUBJECT: Defense Federal Acquisition Regulation Supplement (DFARS); Authority Relating to Utility Privatization

SOURCE: Federal Register, May 22, 2000, Vol. 65, No. 99, page 32040

AGENCIES: Department of Defense (DOD)

ACTION: Final Rule

SYNOPSIS: DOD is adopting as final, without change, the January 13, 2000, interim rule that implemented Section 2812 of the National Defense Authorization Act for Fiscal Year 2000 (Public Law 106-65) by adding DFARS 241.103, Statutory and Delegated Authority, to provide DOD the authority to enter into utility service contracts related to the conveyance of a utility system for periods not to exceed 50 years.

EDITOR'S NOTE: For more on the interim rule, see the January 13, 2000, FEDERAL CONTRACTS DISPATCH "Defense Federal Acquisition Regulation Supplement (DFARS); Authority Relating to Utility Privatization."

EFFECTIVE DATE: May 22, 2000.

FOR FURTHER INFORMATION CONTACT: Ms. Melissa Rider, Defense Acquisition Regulations Council, PDUSD (AT&L) DP (DAR), IMD 3D139, 3062 Defense Pentagon, Washington, DC 20301-3062; 703-602-4245; fax: 703-602-0350. Cite DFARS Case 99-D309 when referring to this rule.

SUPPLEMENTAL INFORMATION: To implement Section 2812 of the FY2000 National Defense Authorization Act, DOD published an interim rule on January 13, 2000, which added DFARS 241.103 and requested comments. No comments were received, so DOD is finalizing the interim rule without change.

The text of DFARS 241.103 is: "The contracting office may enter into a utility service contract related to the conveyance of a utility system for a period not to exceed 50 years (10 U.S.C. 2688(c)(3))."

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

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