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Panoptic Enterprises' FEDERAL CONTRACTS DISPATCH

DATE: April 26, 2002

SUBJECT: Defense Federal Acquisition Regulation Supplement (DFARS); Modification of the Berry Amendment

SOURCE: Federal Register, April 26, 2002, Vol. 67, No. 81, page 20713

AGENCIES: Department of Defense (DOD)

ACTION: Proposed Rule

SYNOPSIS: DOD is proposing to amend DFARS 225.7304, FMS Customer Involvement, to add policy regarding the participation of FMS customers in the contract award process while protecting against unauthorized disclosure of contractor proprietary data.

DATES: Comments on the proposed rule must be submitted no later than June 25, 2002.

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: Amy Williams, OUSD(AT&L)DP(DAR), IMD 3C132, 3062 Defense Pentagon, Washington, DC 20301-3062, or by fax to 703-602-0350. Cite DFARS Case 2002-D005 when making comments on this proposed rule.

FOR FURTHER INFORMATION CONTACT: Ms. Amy Williams, 703-602-0328.

SUPPLEMENTAL INFORMATION: FMS customers have requested more visibility into the preparation and pricing of contracts that DOD awards on their behalf. Therefore, this proposed rule would revise DFARS 225.7304 to provide for greater involvement of FMS customers in the contract award process, while protecting against unauthorized disclosure of contractor proprietary data.

The proposed rule would "encourage" FMS customers to "participate with U.S. government acquisition personnel in discussions with industry to develop technical specifications; establish delivery schedules; identify any special warranty provisions or other requirements unique to the FMS customer; and review prices on varying alternatives, quantities, and options needed to make price-performance tradeoffs" (paragraph (b) of proposed DFARS 225.7304). In addition, "the degree of FMS customer participation in contract negotiations (would be) left to the discretion of the contracting officer" (paragraph (d)). Furthermore, "if an FMS customer requests additional information concerning FMS contract prices, the contracting officer shall, after consultation with the contractor, provide sufficient information to demonstrate the reasonableness of the price and reasonable responses to relevant questions concerning contract price" (paragraph (h)).

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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