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Panoptic Enterprises' FEDERAL CONTRACTS DISPATCH

DATE: July 22, 2003

SUBJECT: Defense Federal Acquisition Regulation Supplement (DFARS); Multiyear Procurement Authority for Environmental Services for Military Installations

SOURCE: Federal Register, July 22, 2003, Vol. 68, No. 140, page 43332

AGENCIES: Department of Defense (DOD)

ACTION: Interim Rule

SYNOPSIS: DOD is amending DFARS 217.171, Multiyear Contracts for Services, to implement Section 827 of the National Defense Authorization Act for Fiscal Year 2003 (Public Law 107-314), which authorizes DOD to enter into multiyear contracts for environmental remediation services for military installations.

EDITOR'S NOTE: For more on the acquisition-related provisions of Public Law 107-314, see the December 3, 2002, FEDERAL CONTRACTS DISPATCH "Enactment of the National Defense Authorization Act for Fiscal Year 2003."

For more on another interim rule implementing a provision of Public Law 107-314, see today's FEDERAL CONTRACTS DISPATCH "Buy-to-Budget -- Acquisition of End Items."

DATES: This interim rule is effective July 22, 2003. Comments on the interim rule should be submitted on or before September 22, 2003.

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: Euclides Barrera, OUSD(AT&L)DP(DAR), IMD 3C132, 3062 Defense Pentagon, Washington, DC 20301-3062, or by fax to 703-602-0350. Cite "DFARS Case 2003-D004" when making comments on this interim rule.

FOR FURTHER INFORMATION CONTACT: Euclides Barrera, 703-602-0296.

SUPPLEMENTAL INFORMATION: 10 U.S.C. 2306c provides authority for DOD to enter into contracts for periods of not more than five years for certain services, and for items of supply related to those services, even though funds would otherwise be available for obligation only within the fiscal year for which the funds are appropriated. Such contracts are authorized if the head of the agency finds that: (1) there will be a continuing requirement for the services consistent with current plans for the proposed contract period; (2) the furnishing of such services will require a substantial initial investment in plant or equipment, or the incurrence of substantial contingent liabilities for the assembly, training, or transportation of a specialized work force; and (3) the use of such a contract will promote the best interests of the United States by encouraging effective competition and promoting economies in operation. DFARS 217.171(a) implements 10 U.S.C. 2306c.

Section 827 of the National Defense Authorization Act for Fiscal Year 2003 amended 10 U.S.C. 2306c to add environmental remediation services for military installations to the types of services for which multiyear contracting is authorized. This interim rule amends DFARS 217.171(a) to implement Section 827 by adding to the list of services permitted to be acquired under this authority the following as subparagraph (a)(1)(v): "Environmental remediation services for (A) an active military installation; (B) a military installation being closed or realigned under a base closure law as defined in 10 U.S.C. 2667(h)(2); or (C) a site formerly used by DOD."

In addition, this interim rule amends DFARS 217.103, Definitions, to add the following definition for "military installation": "a base, camp, post, station, yard, center, or other activity under the jurisdiction of the Secretary of a military department or, in the case of an activity in a foreign country, under the operational control of the Secretary of a military department or the Secretary of Defense (10 U.S.C. 2801(c)(2))."

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

Copyright 2003 by Panoptic Enterprises. All Rights Reserved.

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