FedGovContracts.com

Panoptic Enterprises' FEDERAL CONTRACTS DISPATCH

DATE: June 8, 2004

SUBJECT: Defense Federal Acquisition Regulation Supplement (DFARS); Reporting Contract Performance Outside the United States

SOURCE: Federal Register, June 8, 2004, Vol. 69, No. 110, page 31939

AGENCIES: Department of Defense (DOD)

ACTION: Proposed Rule

SYNOPSIS: DoD is proposing to amend DFARS Subpart 225.72, Reporting Contract Performance Outside the United States, to clarify requirements for the reporting of contract performance outside the United States.

DATES: Comments on the proposed rule must be submitted on or before August 9, 2004.

ADDRESSES: Submit comments, identified by "DFARS Case 2004-D001," to: (1) http://www.regulations.gov; (2) http://emissary.acq.osd.mil/dar/dfars.nsf/pubcomm; (3) e-mail: dfars@osd.mil; fax: 703-602-0350; (4) mail: Defense Acquisition Regulations Council, Attn: Amy Williams, OUSD (AT&L) DPAP (DAR), IMD 3C132, 3062 Defense Pentagon, Washington, DC 20301-3062; (5) hand-delivery/courier: Defense Acquisition Regulations Council, Crystal Square 4, Suite 200A, 241 18th Street, Arlington, VA 22202-3402.

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

SUPPLEMENTARY INFORMATION: On February 11, 2003, DOD announced plans for conducting a "major transformation" of the DFARS (see the February 11, 2003, FEDERAL CONTRACTS DISPATCH "Defense Federal Acquisition Regulation Supplement (DFARS) Transformation"). The objective of the DFARS transformation is to improve the efficiency and effectiveness of the acquisition process while allowing the acquisition workforce the flexibility to innovate. The transformed DFARS will contain only requirements of law, DOD-wide policies, delegations of FAR authorities, deviations from Federal Acquisition Regulation (FAR) requirements, and policies and procedures that have a significant effect beyond the internal operating procedures of DOD or a significant cost or administrative impact on contractors or offerors. All mandatory and non-mandatory internal DOD procedures, non-mandatory guidance, and supplemental information will be contained in the DFARS companion document, the "Procedures, Guidance, and Information" (PGI) (for more on the PGI, see the February 23, 2004, FEDERAL CONTRACTS DISPATCH "Defense Federal Acquisition Regulation Supplement (DFARS); Procedures, Guidance, and Information").

This proposed rule is a result of the DFARS Transformation initiative. Additional information on the DFARS Transformation initiative is available at http://www.acq.osd.mil/dp/dars/transf.htm.

DFARS Subpart 225.72 implements two distinct reporting requirements: (1) the requirements of 10 U.S.C. 2410g for offerors and contractors to notify DOD of any intention to perform a DoD contract outside the United States and Canada, when the contract exceeds $10 million and could be performed inside the United States or Canada; and (2) DOD policy for contractor reporting of performance outside the United States under contracts exceeding $500,000.

This proposed rule would revise DFARS Subpart 225.72 to clarify the two separate reporting requirements. Likewise, DFARS 252.225-7004, Reporting of Contract Performance Outside the United States, which addressed both reporting requirements, would be split into two clauses: DFARS 252.225-7004, Immediate Reporting of Intended Contract Performance Outside the United States and Canada, which would be included in solicitations and contracts with a value exceeding $10 million; and DFARS 252.225-7XXX, Quarterly Reporting of Contract Performance Outside the United States, which would be included in solicitations and contracts with a value exceeding $500,000.

In addition, the text of DFARS 225.7202, Distribution of Reports, would be relocated to PGI 225.7202, Distribution of Reports, and replaced with a cross-reference to PGI 225.7202.

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.

Return to the Dispatches Library.

Return to the Main Page.