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Barry McVay's FEDERAL CONTRACTS DISPATCH

DATE: July 31, 2000

FROM: Barry McVay, CPCM

SUBJECT: Defense Federal Acquisition Regulation Supplement (DFARS); Streamlined Payment Practices

SOURCE: Federal Register, July 31, 2000, Vol. 65, No. 147, page 46625

AGENCIES: Department of Defense (DOD)

ACTION: Final Rule

SYNOPSIS: DOD is amending the DFARS to require use of the governmentwide commercial purchase card as the method of purchase and/or payment for purchases valued at or below the $2,500 micro-purchase threshold unless an exception is authorized.

EFFECTIVE DATE: July 31, 2000.

FOR FURTHER INFORMATION CONTACT: Susan L. Schneider, Defense Acquisition Regulations Council, OUSD(AT&L)DP(DAR), IMD 3D139, 3062 Defense Pentagon, Washington, DC 20301-3062; 703-602-0326; fax: 703-602-0350. Cite DFARS Case 98-D026 when referring to this final rule.

SUPPLEMENTAL INFORMATION: On July 20, 1999, DOD published a proposed rule to amend the DFARS to implement a policy memorandum issued by the Principal Deputy Under Secretary of Defense (Acquisition and Technology) on October 2, 1998 (available at http://www.acq.osd.mil/dp/micro2.pdf), and a policy memorandum issued by the Under Secretary of Defense (Personnel and Readiness) on September 25, 1998, Subject: Use of Government-Wide Purchase Cards (available at http://purchasecard.sarda.army.mil/deleon.htm). These memoranda require that the governmentwide commercial purchase card be used to purchase and/or pay for DOD purchases valued at or below $2,500 unless an exception is obtained or applies to the acquisition.

Six respondents submitted comments on the proposed rule, but the proposed rule is finalized without change except for paragraph numbering and punctuation changes.

The following are the main changes being made to the DFARS by this final rule:

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

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