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Barry McVay's FEDERAL CONTRACTS DISPATCH

DATE: October 25, 2000

FROM: Barry McVay, CPCM

SUBJECT: Defense Federal Acquisition Regulation Supplement (DFARS); Foreign Military Sales (FMS) Customer Observation of Negotiations

SOURCE: Federal Register, October 25, 2000, Vol. 65, No. 207, page 63837

AGENCIES: Department of Defense (DOD)

ACTION: Withdrawal of Proposed Rule

SYNOPSIS: DOD is withdrawing the proposed rule that would have amended DFARS Subpart 225.73, Acquisitions for Foreign Military Sales, to permit FMS customers to observe contract price negotiations.

FOR FURTHER INFORMATION CONTACT: Ms. Amy Williams, Defense Acquisition Regulations Council, OUSD (AT&L) DP (DAR), IMD 3C132, 3062 Defense Pentagon, Washington, DC 20301-3062; 703-602-0288; fax: 703-602-0350. Cite DFARS Case 99-D005 in all correspondence related to this rule.

SUPPLEMENTAL INFORMATION: On April 28, 1999, DOD published a proposed rule to allow FMS customers to observe contract price negotiations. This change was proposed as a part of a DOD initiative to improve the FMS process. However, based on public comments, DOD has decided to consider alternative methods of satisfying the pricing information needs of countries that acquire supplies and services through the FMS program. Therefore, DOD is withdrawing the proposed rule.

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

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