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Panoptic Enterprises' FEDERAL CONTRACTS DISPATCH

DATE: April 26, 2002

SUBJECT: Defense Federal Acquisition Regulation Supplement (DFARS); Balance of Payments Program (BOPP)

SOURCE: Federal Register, April 26, 2002, Vol. 67, No. 81, page 20693

AGENCIES: Department of Defense (DOD)

ACTION: Final Rule

SYNOPSIS: DOD is adding as DFARS Subpart 225.75, Balance of Payments Program, the policy in Federal Acquisition Regulation (FAR) Subpart 25.3, Balance of Payments Program, which addresses construction contracts performed outside the United States, because FAR Subpart 25.3 has been proposed for removal though DOD contracts for construction outside the U.S.

EDITOR'S NOTE: For more on the proposed rule to amend FAR Subpart 25.3 to eliminate the application of the BOPP to construction contracts performed outside the U.S., see the September 11, 2000, FEDERAL CONTRACTS DISPATCH "Balance of Payments Program."

For more on the proposed rule to add the FAR BOPP coverage to the DFARS, see the September 11, 2001, FEDERAL CONTRACTS DISPATCH "Balance of Payments Program."

For more on a recent request for comments on a proposal to eliminate the application of the Balance of Payments Program (BOPP) to DOD procurements of supplies to be used overseas, see the April 12, 2002, FEDERAL CONTRACTS DISPATCH "Defense Federal Acquisition Regulation Supplement (DFARS); Balance of Payments Program in Defense Supply Contracts."

EFFECTIVE DATE: April 26, 2002.

FOR FURTHER INFORMATION CONTACT: Amy Williams, OUSD(AT&L)DP(DAR), IMD 3C132, 3062 Defense Pentagon, Washington, DC 20301-3062; 703-602-0328; fax: 703-602-0350. Cite DFARS Case 2000-D020 when referring to this final rule.

SUPPLEMENTAL INFORMATION: On September 11, 2000, a proposed rule was published to eliminate FAR Subpart 25.3 because civilian agencies enter into very few contracts for construction outside the U.S. However, DOD contracts for construction outside the U.S., so it decided to incorporate the FAR BOPP coverage into the DFARS. On September 11, 2001, a proposal was published which would move the FAR Subpart 25.3 BOPP coverage to a new DFARS Subpart 225.75 (which would also incorporate the BOPP coverage in DFARS Subpart 225.3, which would be removed), and DOD asked for comments on the proposed rule and on the advisability of eliminating the application of the BOPP to DOD construction contracts. Seven commenters responded, and minor administrative changes are made to the final rule as a result. With regard to the elimination of the application of the BOPP to DOD construction contracts, DOD states that it "is continuing to study this issue."

The sections in DFARS Subpart 225.75 are equivalent to the current FAR Subpart 25.3 and DFARS Subpart 225.3 sections as follows:

DFARS 225.7503, Contract Clauses, prescribes the use of two new clauses:

In addition, DFARS 252.225-7005, Identification of Expenditures in the United States, requires the contractor to identify on each invoice, voucher, or other request for payment the part of the requested payment that represents estimated expenditures in the United States. DFARS 252.225-7005 had limited the requirement "to payments made pursuant to the requirements either of the United States Products and Services clause, if any, or of any other specific provision of this contract that obligates the Contractor to acquire certain materials, equipment, transportation, or services from U.S. sources." This limitation is removed from DFARS 252.225-7005.

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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