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Panoptic Enterprises' FEDERAL CONTRACTS DISPATCH

DATE: June 8, 2004

SUBJECT: Defense Federal Acquisition Regulation Supplement (DFARS); Production Surveillance and Reporting

SOURCE: Federal Register, June 8, 2004, Vol. 69, No. 110, page 31912

AGENCIES: Department of Defense (DOD)

ACTION: Final Rule

SYNOPSIS: DOD is amending DFARS 242.1104, Surveillance Requirements, to eliminate requirements for contract administration offices to perform production surveillance on contractors that have only Criticality Designator C (low-urgency) contracts.

EDITOR'S NOTE: The "criticality designators" assigned to most contracts are described in Federal Acquisition Regulation (FAR) 42.1105, Assignment of Criticality Designator.

For more on the proposed rule, see the August 21, 2003, FEDERAL CONTRACTS DISPATCH "Defense Federal Acquisition Regulation Supplement (DFARS); Production Surveillance and Reporting."

EFFECTIVE DATE: June 8, 2004.

FOR FURTHER INFORMATION CONTACT: Steven Cohen, Defense Acquisition Regulations Council, OUSD(AT&L)DPAP(DAR), IMD 3C132, 3062 Defense Pentagon, Washington, DC 20301-3062; 703-602-0293; fax: 703-602-0350. Cite "DFARS Case 2002-D015" when referring to this final rule.

SUPPLEMENTAL INFORMATION: DFARS 242.1104 requires the contract administration office to conduct a periodic risk assessment of each contractor to determine the degree of production surveillance needed for contracts awarded to that contractor, and to develop a production surveillance plan based on the risk level determined during the risk assessment.

On August 21, 2003, DOD published a proposed rule that would revise DFARS 242.1104 to eliminate requirements for production surveillance on contractors that have only Criticality Designator C (low-urgency) contracts, and for the monitoring of progress on any Criticality Designator C contract, unless production surveillance or contract monitoring is specifically requested by the contracting officer. The proposed rule would revise DFARS 242.1104(a) to specify that the contract administration office "(i) shall perform production surveillance on all contractors that have Criticality Designator A or B contracts; [and] (ii) shall not perform production surveillance on contractors that have only Criticality Designator C contracts, unless specifically requested by the contracting officer..."

One respondent submitted comments, but DOD has decided to adopt the proposed rule as final without changes.

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

Copyright 2004 by Panoptic Enterprises. All Rights Reserved.

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