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Panoptic Enterprises' FEDERAL CONTRACTS DISPATCH

DATE: April 1, 2002

SUBJECT: Defense Federal Acquisition Regulation Supplement (DFARS); Competition Requirements for Purchase of Services Under Multiple Award Contracts

SOURCE: Federal Register, April 1, 2002, Vol. 67, No. 62, page 15351

AGENCIES: Department of Defense (DOD)

ACTION: Proposed Rule and Notice of Public Meeting

SYNOPSIS: DOD is proposing to amend DFARS Subpart 208.4, Ordering from Federal Supply Schedules, and DFARS Subpart 216.5, Indefinite-Delivery Contracts, to implement the requirement in Section 803 of the National Defense Authorization Act for Fiscal Year 2002 (Public Law 107-107) which requires DOD to issue policy requiring competition in the purchase of services under multiple award contracts. In addition, DOD is announcing that it will hold one or more public meetings to hear the views of interested parties.

EDITOR'S NOTE: For more on the acquisition-related provisions of the FY 2002 National Defense Authorization Act, see the January 2, 2002, FEDERAL CONTRACTS DISPATCH "Enactment of the National Defense Authorization Act for Fiscal Year 2002."

DATES: Comments on the proposed rule should be submitted no later than May 6, 2002. The first public meeting will be held on April 29, 2002, from 12:00 p.m. to 3:00 p.m.

ADDRESSES: Respondents may submit comments directly on the web site at http://emissary.acq.osd.mil/dar/dfars.nsf/pubcomm. As an alternative, respondents may e-mail comments to: dfars@acq.osd.mil. Also, respondents who cannot submit comments through the web site or by e-mail may submit comments to Defense Acquisition Regulations Council, Attn: Susan Schneider, 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-D017 when making comments on this proposed rule.

The public meeting will be held in Room C-43, Crystal Mall 4, 1941 Jefferson Davis Highway, Arlington, VA 22202.

FOR FURTHER INFORMATION CONTACT: Susan Schneider, 703-602-0326, regarding the proposed rule, and Melissa Rider, 703-695-1098, regarding the public meeting.

SUPPLEMENTAL INFORMATION: Public Law 107-107, Section 803, Competition Requirement for Purchase of Services Pursuant to Multiple Award Contracts, requires that each DOD purchase of services over $100,000 made under a multiple award contract be made on a competitive basis unless a contracting officer waives the requirement under certain specific circumstances. To qualify as being made "on a competitive basis," a "fair notice" must be provided to all contractors offering such services under the multiple award contract. However, a notice may be provided to "fewer than all contractors" if notice is provided to "as many contractors as practicable" and "offers [are] received from at least three qualified contractors..."

The proposed rule would add two similar DFARS sections:

In addition, Director of Defense Procurement Deidre Lee is sponsoring a public meeting to discuss the proposed rule and hear the views of interested parties on what they believe to be the key issues pertaining to use of Federal Supply Schedules, governmentwide acquisition contracts, multiple agency contracts, and multi-agency indefinite-delivery, indefinite-quantity (IDIQ) contracts for the acquisition of services. Possible issues include, but are not limited to procedures for establishing the basic contractual instruments; ordering procedures; ability to maintain a competitive environment; and suitability of current government training on multiple award contracts. Subsequent meetings may be held, depending on the level of interest shown by the general public at the initial meeting. Meeting dates and other pertinent information will be published on the Defense Procurement Web site at http://www.acq.osd.mil/dp.

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

Copyright 2002 by Panoptic Enterprises. All Rights Reserved.

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