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Panoptic Enterprises' FEDERAL CONTRACTS DISPATCH

DATE: September 17, 2004

SUBJECT: Defense Federal Acquisition Regulation Supplement (DFARS); Personal Services Contracts

SOURCE: Federal Register, September 17, 2004, Vol. 69, No. 180, page 55991

AGENCIES: Department of Defense (DOD)

ACTION: Interim Rule

SYNOPSIS: DOD is amending DFARS 237.104, Personal Services Contracts, to implement Sections 721 and 841 of the National Defense Authorization Act for Fiscal Year 2004 (Public Law 108-136). Section 721 provides authority for DOD to enter into personal services contracts for health care at locations outside of DOD medical treatment facilities, and Section 841 adds authority for DOD to enter into personal services contracts to be performed outside the United States or that directly support the mission of a DOD intelligence or counter-intelligence organization or the special operations command.

For more on other acquisition-related provisions of Public Law 108-136, see the November 25, 2003, FEDERAL CONTRACTS DISPATCH "Enactment of the National Defense Authorization Act for Fiscal Year 2004."

DATES: The interim rule is effective September 17, 2004. Comments on the interim rule must be submitted on or before November 16, 2004.

ADDRESSES: Respondents may submit comments directly on the web site at either http://www.regulations.gov OR 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: Teresa Brooks, OUSD(AT&L)DP(DAR), IMD 3C132, 3062 Defense Pentagon, Washington, DC 20301-3062; fax to either 703-602-7887 OR 703-602-0350; or hand-deliver/courier to: Defense Acquisition Regulations Council, Crystal Square 4, Suite 200A, 241 18th Street, Arlington, VA 22202-3402. Cite "DFARS Case 2003-D103" when making comments on this interim rule.

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

SUPPLEMENTAL INFORMATION: This interim rule amends DFARS 237.104 to implement Sections 721 and 841 of Public Law 108-136. Section 721 provides permanent authority for DOD to enter into personal services contracts for health care at locations outside of DoD medical treatment facilities (such as military entrance processing stations). This authority had been in effect but was temporary, and it expired December 31, 2003. Section 841 adds authority for DOD to enter into contracts for personal services that either: (1) are to be provided by individuals outside the United States to support DOD activities and programs outside the United States; (2) directly support the mission of a DOD intelligence or counter-intelligence organization; or (3) directly support the mission of the DoD special operations command. This authority applies if the services to be procured are urgent or unique and would not be practical to obtain by other means.

Section 721 is implemented by this interim rule with the addition of paragraph (b)(ii)(A)(2) to DFARS 237.104, which states that "health care services at locations outside of medical treatment facilities (such as the provision of medical screening examinations at military entrance processing stations)" may be acquired through a personal services contract. In addition, paragraph (b)(ii)(C) is amended to require the "chief of the medical facility who is responsible for the area in which the services will be performed" to approve the use of such contracts.

Section 841 is implemented with the addition of new paragraph (b)(iii), which states that an agency may enter into a personal services contract if head of the contracting activity provides written approval and the services: "are to be provided by individuals outside the United States, regardless of their nationality [a later subparagraph states that such services must be 'necessary and appropriate for supporting DOD activities and programs outside the United States']; directly support the mission of a defense intelligence component or counter-intelligence organization of DOD; or directly support the mission of the special operations command of DOD."

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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