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Barry McVay's FEDERAL CONTRACTS DISPATCH

DATE: March 16, 2000

FROM: Barry McVay, CPCM

SUBJECT: Defense Federal Acquisition Regulation Supplement (DFARS); Federal Prison Industries (FPI) Waiver Threshold

SOURCE: Federal Register, March 16, 2000, Vol. 65, No. 52, page 14400

AGENCIES: Department of Defense (DOD)

ACTION: Final Rule

SYNOPSIS: DOD is amending the Defense Federal Acquisition Regulation Supplement (DFARS) to increase, from $25 to $250, the threshold at which DOD must request clearance from FPI before purchasing FPI Schedule items from sources other than FPI, when delivery is required within 10 days.

EDITOR'S NOTE: For more on FPI's administrative waiver for DOD orders of $250 or less, see the January 31, 2000, FEDERAL CONTRACTS DISPATCH "Department of Defense; Raising the Threshold for Federal Prison Industries (FPI) Exceptions."

EFFECTIVE DATE: March 16, 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 2000-D005.

SUPPLEMENTAL INFORMATION: FAR Subpart 8.6, Acquisition from Federal Prison Industries, Inc., requires federal agencies to obtain clearance from FPI before purchasing FPI schedule items from sources other than FPI. Paragraph (e) of FAR 8.606, Exceptions, provides an exception to the clearance requirement for orders of FPI schedule items totaling $25 or less that require delivery within 10 days.

On January 24, 2000, FPI granted DOD an exception to the clearance requirement for orders totaling $250 or less that require delivery within 10 days. To reflect this, DFARS Subpart 208.6, Acquisition from Federal Prison Industries, Inc., is added. It consists of DFARS 208.606, Exceptions, and the text is as follows:

"(e) DOD activities do not need an FPI clearance for orders of listed items totaling $250 or less than (sic) require delivery within 10 days."

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

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