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Panoptic Enterprises' FEDERAL CONTRACTS DISPATCH

DATE: August 21, 2003

SUBJECT: Defense Federal Acquisition Regulation Supplement (DFARS); Multiyear Contracting Authority Revisions

SOURCE: Federal Register, August 21, 2003, Vol. 68, No. 162, page 50474

AGENCIES: Department of Defense (DOD)

ACTION: Interim Rule

SYNOPSIS: DOD is amending DFARS 217.173, Multiyear Contracts for Weapon Systems and Other Multiyear Acquisitions Specifically Authorized by Law, to implement Section 820 of the National Defense Authorization Act for Fiscal Year 2003 (Public Law 107-314), which restricts the use of multiyear contracts for supplies to only those for complete and usable end items, and restricts the use of advance procurement to only those long-lead items necessary in order to meet a planned delivery schedule for complete major end items.

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."

DATES: This interim rule is effective August 21, 2003. Comments on the interim rule should be submitted on or before October 20, 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 website or by e-mail may submit comments to Defense Acquisition Regulations Council, Attn: Teresa Brooks, 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-D041" when making comments on this interim rule.

FOR FURTHER INFORMATION CONTACT: Teresa Brooks, 703-602-0326.

SUPPLEMENTAL INFORMATION: Section 820, Revisions to Multiyear Contracting Authority, clarifies that funds for multiyear contracts may only be used for the procurement of complete and usable end items, for the procurement of long-lead items necessary to meet a planned delivery schedule for complete major end items, or for economic order quantities of long-lead items when authorized by law.

This interim rule amends DFARS 217.173 to change its name from "Multiyear Contracts for Weapon Systems" to "Multiyear Contracts for Weapon Systems and Other Multiyear Acquisitions Specifically Authorized by Law," and to add to paragraph (b) the following two conditions for multiyear contract awards:

"(5) The contract is for the procurement of a complete and usable end item (10 U.S.C. 2306b(i)(4)(A)).
"(6) Funds appropriated for any fiscal year for advance procurement are obligated only for the procurement of those long-lead items that are necessary in order to meet a planned delivery schedule for complete major end items that are programmed under the contract to be acquired with funds appropriated for a subsequent fiscal year (including an economic order quantity of such long-lead items when authorized by law (10 U.S.C. 2306b(i)(4)(B))."

Also, editorial changes are made to DFARS 217.172, Multiyear Contracts for Supplies, and DFARS 217.174, Multiyear Contracts That Employ Economic Order Quantity Procurement, to add citations to the applicable portions of the U.S. Code and to cross-reference the additions to DFARS 217.173.

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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