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Panoptic Enterprises' FEDERAL CONTRACTS DISPATCH

DATE: September 15, 2003

SUBJECT: Defense Federal Acquisition Regulation Supplement (DFARS); Government Source Inspection Requirements

SOURCE: Federal Register, September 15, 2003, Vol. 68, No. 178, page 53946

AGENCIES: Department of Defense (DOD)

ACTION: Proposed Rule

SYNOPSIS: DOD is proposing to amend DFARS Subpart 246.4, Government Contract Quality Assurance, to eliminate government source inspection requirements for contracts or delivery orders valued below $250,000 unless certain conditions exist.

DATES: Comments must be submitted on or before November 14, 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: Steven Cohen, 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-D032" when making comments on this proposed rule.

FOR FURTHER INFORMATION CONTACT: Steven Cohen, 703-602-0293.

SUPPLEMENTAL INFORMATION: To permit DOD contract administration offices to devote more resources to high-risk contracts, DOD is publishing a proposed rule that would eliminate government contract quality assurance at source on contracts or delivery orders valued below $250,000 unless certain conditions are met.

The proposed rule would add DFARS 246.402, Government Contract Quality Assurance At Source, which would prohibit quality assurance at source on contracts or delivery orders below $250,000 unless:

     "(1)Mandated by DOD regulation;
     "(2)Required by a memorandum of agreement between the acquiring department or agency and the contract administration agency; or
     "(3)The contracting officer determines that --
     "(i)Contract technical requirements are significant (e.g., the technical requirements include drawings, test procedures, or performance requirements);
     "(ii)Critical product features/characteristics or specific acquisition concerns have been identified; and
     "(iii)The contract is being awarded to --
     "(A)A manufacturer or producer; or
     "(B)A non-manufacturer or non-producer and specific government verifications have been identified as necessary and feasible to perform."

In addition, since FAR 46.404, Government Contract Quality Assurance for Acquisitions At or Below the Simplified Acquisition Threshold, states that the government shall inspect contracts at or below the simplified acquisition threshold at destination "unless a special condition exists," DOD would add DFARS 246.404 to prohibit quality assurance at source on contracts or delivery orders "unless the criteria at [DFARS] 246.402 have been met."

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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