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Barry McVay's FEDERAL CONTRACTS DISPATCH

DATE: August 17, 2000

FROM: Barry McVay, CPCM

SUBJECT: Defense Federal Acquisition Regulation Supplement (DFARS); Special Procedures for Negotiation of Construction Contracts

SOURCE: Federal Register, August 17, 2000, Vol. 65, No. 160, page 50151

AGENCIES: Department of Defense (DOD)

ACTION: Final Rule

SYNOPSIS: DOD is removing DFARS Subpart 236.4, Special Procedures for Negotiation of Construction Contracts, which consists of DFARS 236.403, Cost-Reimbursement Contracts, because DFARS 236.403 consists of obsolete text that addresses special procedures for fee negotiation under cost-reimbursement construction contracts.

EFFECTIVE DATE: August 17, 2000.

FOR FURTHER INFORMATION CONTACT: Amy Williams, Defense Acquisition Regulations Council, OUSD(AT&L)DP(DAR), IMD 3D139, 3062 Defense Pentagon, Washington, DC 20301-3062; 703-602-0288; fax: 703-602-0350. Cite DFARS Case 2000-D010 when referring to this final rule.

SUPPLEMENTAL INFORMATION: DFARS Subpart 236.4 had supplemented FAR Subpart 36.4 to address the departmental procedures for negotiating fixed fees under cost-plus-fixed-fee construction contracts and target fees under cost-plus-incentive-fee construction contracts. Federal Acquisition Circular (FAC) 90-45, dated January 2, 1997, had redesignated FAR 36.403 as FAR 36.215, Special Procedure for Cost-Reimbursement Contracts for Construction, and simplified the language. DOD has determined that the supplemental text in DFARS Subpart 236.4 is no longer needed, so DFARS Subpart 236.4 is removed.

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

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