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Panoptic Enterprises' FEDERAL CONTRACTS DISPATCH

DATE: September 11, 2001

SUBJECT: Defense Federal Acquisition Regulation Supplement (DFARS); Utilization of Indian Organizations and Indian-Owned Economic Enterprises

SOURCE: Federal Register, September 11, 2001, Vol. 66, No. 176, page 47110

AGENCIES: Department of Defense (DOD)

ACTION: Interim Rule

SYNOPSIS: DOD is amending DFARS 226.104, Contract Clause, and adds a new clause at DFARS 252.226-7001, Utilization of Indian Organizations and Indian-Owned Economic Enterprises -- DOD Contracts, to provide for incentive payments to DOD contractors and subcontractors at any tier that use Indian organizations and Indian-owned economic enterprises as subcontractors.

DATES: This interim rule is effective September 11, 2001. Comments on the interim rule must be submitted on or before November 13, 2001.

ADDRESSES: Respondents may submit comments directly on http://emissary.acq.osd.mil/dar/dfars.nsf/pubcomm; by e-mail to dfars@acq.osd.mil; to Defense Acquisition Regulations Council, Attn: Angelena Moy, OUSD (AT&L) DP (DAR), IMD 3C132, 3062 Defense Pentagon, Washington, DC 20301-3062; or by fax to 703-602-0350. Cite DFARS Case 2001-D024 when submitting comments.

FOR FURTHER INFORMATION CONTACT: Angela Moy, 703-602-1302.

SUPPLEMENTAL INFORMATION: This interim rule implements Section 8022 of the DOD Appropriations Act for Fiscal Year 2001 (Public Law 106-259), which provides funding for incentive payments to DOD contractors, and subcontractors at any tier, that use Indian organizations and Indian-owned economic enterprises as subcontractors.

DFARS 226.104 revises paragraph (a) from directing contracting officers to use Federal Acquisition Regulation (FAR) 52.226-1, Utilization of Indian Organizations and Indian-Owned Economic Enterprises, to directing contracting officers to use DFARS 252.226-7001. FAR 52.226-1 provides for the contractor to receive an additional 5% of the estimated cost, target cost, or firm-fixed price of any subcontracts awarded to Indian organizations or Indian-owned economic enterprises (the contractor must assert its claim and it has the burden of proving the amount claimed). DFARS 252.226-7001 is similar to FAR 52.226-1 in that it provides the additional 5% to contractors that subcontract to Indian organizations or Indian-owned economic enterprises, and to subcontractors at any tier that further subcontract to Indian organizations or Indian-owned economic enterprises. However, the contractor must request the 5% adjustment on behalf of the subcontractor.

FOR FURTHER INFORMATION CONTACT: Panoptic Enterprises at 703-451-5953 or by e-mail to Panoptic@FedGovContracts.com.

Copyright 2001 by Panoptic Enterprises. All Rights Reserved.

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